Good interest rates, up to 5 lakhs you can easily park in Equitas bank at 8.20% for 1 year FD. Create FD under the name of your parents/siblings with no taxable income to avoid tax.
Nowadays best option for short term parking of funds is FDs with good interest rate under the name of parents/siblings with no taxable income.
pkkumarcool
Game & anime Lover
How much return have you got? I am thinking of going for Axis Bluechip mutual fund
shreeux
Movie Buff
Only one Fund?
Nerevarine
Incarnate
What I understood is, when selecting additional mutual funds, see which sectors, your current MF covers, and only go additional for MFs which cover other sectors.
groww makes it quite easy.
For me, Id invest in MFs that deal with Communications, next. But there are many other strategies you can use.
Nerevarine
Incarnate
Thanks dude. Is it wise to create FD in one bank or should I split among multiple banks. AFAIK, RBI guarentees insurance amount of 5 Lakhs for FDs. is it better I look for some other banks too (like you said ujjivan small finance banks earlier) ?
Never make the mistake of investing in "sectoral/theme based MF" as these are for veteran investors only. A typical retail investor should stick to large cap, mid cap, small cap & hybrid MF.
@Desmond
RBI insurance for 5 lakh is per pan in each bank which incl everything under that pan(savings acc & fd). Also, this insurance comes into effect only when RBI declares a bank bankrupt which it hasn't done so far in the entire history of India since independence. What happens is that RBI arrange for failed bank to be rescued/sold to another bank & once that process is over then it becomes just like usual bank with no limits/money at risk. Worst case scenario is your money getting stuck & for that you can take Yes Bank as benchmark as it was the largest scheduled commercial bank to ever fail in India(GTB bank before it in early 90s was a small player & was merged with then Oriental Bank & so was Laxmi Vilas Bank in 2020 which was bought by DBS bank) & money was stuck for around 3 weeks. Another thing to note is that no scheduled commercial bank in India can fail overnight, it always start giving signals months in advance so one just need to take a look at news headlines in financial section of any major English newspaper like ToI every few days & that is more than enough else just ask on forum/reddit.
Ujjivan bank is also fine, it is just that Equitas bank website/app seem more "polished".
Btw if you do plan to keep 4 lakh+ then open acc in Equitas & take their Elite savings acc(initial deposit of 4 lakh+ is required) & you will get a privilege banking acc with a direct customer care number with no need to wait for more than a few seconds before being connected to a bank official(& not the usual outsourced 3rd party call centre agent) any time of the day who will help you with any issue in a far better way than any typical call centre person.
Nerevarine
Incarnate
Thank you, very good info.
Nerevarine
Incarnate
Opening FD account, on my dad's name to avail senior citizen interest rate + no penalty for premature withdrawal.
Can you explain, how does this work ? Will I open an account in Equitas with my dad's name as primary, and then invest in it ?
Can you explain, how does this work ? Will I open an account in Equitas with my dad's name as primary, and then invest in it ?
Nerevarine
Incarnate
These are small finance banks, there are many such banks. Prime reason to keep them is high rate of interest for FDs.
I generally look at these tells:
- Recommendations by Pranjal Kamra when he launches best MFs every year. In the last video he posted, he suggested Mirae Asset NYSE Fang+ ETF, in Nov 2022. But I didn't invest thinking that it's not a MF and it have rose >30% since then.
- Peer comparison of a mutual fund on any portal where I can compare them. In the comparison I look at the:
- Past performance: But don't rely on it too much as just investing it basis past performance is a sure shot way to go wrong
- Trend of performance over 1,3,5 years: This gives general indication on whether the fund is "consistent". This means "Standard Deviation" should be low
- Sharpe ratio: which should be higher, and means the risk adjusted return
- Fund size: Generally too large a fund size, the less flexibility the fund have to generate future returns
- The sectors it invests
- Finally I also compare the fund in terms of portfolio overlap using site like: *www.thefundoo.com/Tools/PortfolioOverlap
Then I also buy gold SGB from time to time. The SGB portfolio have given me 13% returns in last year as market is sideways (which taught me value of hedging).
Yes simply open savings acc/fd under your father's name/pan. Also, premature withdrawal should have some T&C but even for non senior citizens there is no premature withdrawal penalty in equitas bank after 6 months of fd creation. Simply transfer amt in your father's bank acc & then make fd(as I mentioned earlier getting Elite savings acc is recommended with 4 lakh+ intial deposit cheque). Make sure your father file itr though as the interest on the FD will be counted against his pan as per TDS deducted(if FD maturity amt exceed 40k in a year).
en.wikipedia.org/wiki/Small_finance_bank
First decide your investment horizon. For MFs the ideal investment period is 15 years+. Don't make the mistake of treating MFs as quick profit earning method or treating them as substitute of FDs. For a typical investor, 3-4 MFs are enough based on major classification of large cap, mid cap, small cap & hybrid. You can compare the past performance of MFs on any site like moneycontrol in major categories(large,mid,small,hybrid) & can select one which has been a consistent & good performer in last 2-3 years but that is no guarantee of the future but it does give an idea about the abilities of the fund manager managing that MF.
TheSloth
The Slowest One
Parag Parikh Flexi Cap which has MS, Alphabet, Amazon etc international stocks, where govt stopped all the investments for almost a year because they reach some limit of investment funds. Has PP Flexi cap started investing in international stocks or they are still investing in national stocks? IIRC they opened the investment for users but they were not investing in those international stocks.
omega44-xt
Gear up ...
From what I know, they are not making any new purchases of international stocks.