but had you named and analyzed the mutual funds that invested in bonds would have been very helpful. Also, when should one invest in bonds, during the raising interest period or the other?
Re: Good one
by wordforlife on Mar 07, 2011 01:14 PM
Given the weak macroeconomic circumstances, with spiraling prices of gold, oil and food items, the year 2011 has started on a somewhat edgy note for Indian capital markets. The inflationary pressure and liquidity squeeze in the banking system (close to about INR 70,000 crore, source: ICICI Prudential Mutual Fund) has resulted in higher interest rates, for borrowers as well as savers. As a result, the fixed income instruments of short-term nature are presently trading at attractive yields.
Fixed Maturity Plans (FMPs) and Ultra Short Term Funds and earn better post tax returns than savings account deposits which yields only 3.5%.
All of us do invest amount in ULIPS and others; thinking that we will get tax exemption and also good/ normal returns from that. But what happening is out amt is will be invested in market and that will go down. Finally, our amount also will become small. and that too we will get that amount only after 3 years. This amount is again lesser than what we invested. So, moral of this REAL story is "No need to try for tax exemption". Just try to buy some gold every month. Even this can be very small quantity also fine. We can get amount by selling gold at any time. No need to wait until 3 years. And rate of gold will be always growing. These insurance companies will try to show heaven in our hands which is their game. But finally, we will see hell in our hands.
Re: NO NEED
by manish pahuja on Feb 23, 2011 12:34 PM
I totally agree with you! If people just stop and think before shelling out money, they will realize the seller is more benefited by these deals! Only go for a deal where you too get equal returns.
