Good Investment options ….

POSTED BY Sharad kumar ON February 17, 2013 3:17 pm COMMENTS (12)

12 replies on this article “Good Investment options ….”

  1. Sharad kumar says:


    What are the good elss schemes to look for which would help me invet.BTW Im new to SIP and I need get good knowledge . I need to ask a question regarding SIP (pardon me if its a bit dumb) . You have advised me to invest arond 2k via SIP. Consider the possibility that I invest for 3 years with 2k /month which makes 24k for a year.It amounts to 72k. is there a possibility or guaratee that the returns is more than 72000 or there is a possibility that returns might be <72k too???

    1. Ramesh says:

      Yes, it can be less than 72k, even less than 50k.
      No, there are no guarantees in equity assets. Anyone giving your guarantee is a ‘fraud’.

      Regarding good knowledge, go through various threads in this forum and elsewhere, and put your mind to learning.

      Good ELSS schemes are Franklin Taxshield, Quantum Taxsaver, HDFC Taxsaver, etc.

  2. sundeep says:

    Hi Mr.Kumar,

    1. Its not a good idea to buy a home in early stages of your career. n i dont think u ll a good house for 30 to 35 lks if in a city. ur emi ll come around 30k for 20 years. Heavy burden

    2. With the current inflation, investing too much in FD’s or Debt instruments(risk free ivestments) is risky as there ll b no change in the buying value of your money.but u should invest 20% in debt.

    3. Try investing in e-gold or gold ETFs than gold coins as it gives security, liquidity and more returns. buy e-silver also.
    elss funds are good provided you invest in it through SIP…(you are investing in businesses).

    4. Considered investing in a CHIT FUND.

    My experience..I have taken car loan for 3lakhs for 5 years.. the emi comes around rs.6700. then I took a chit fund. out of luck i got the chit(kuri) the third time.. so i got the full 3 lakhs..i just have to repay this 3 lakhs in 10 years.

    now im just paying Rs8000 to rs10000 evry four months
    even if you didnot get the chit in the beginings its good investment because u ll get high returns (by discounts). The best part is even if u donot get the chit(kuri) u can always take ur money out (by “calling a discount) when u need to buy a house and still it ll be much cheaper than a loan.
    try investing 5k per month in a reputed chit fund ( Old ones)to get the hang of it.

    5.Read guide to investing by robert kiyosaki

    1. Ramesh says:

      Chit fund is not investing. It is just a form of saving with luck added to it.

      And it is a less-than-zero sum game. Your other points are good, but point 4 is horrible in my opinion.

      And regarding advice from Robert Kiyosaki, it is better if you do not follow his. 😉

      1. sundeep says:

        Dear Ramesh,

        1.Chit funds are not saving with luck,lotteries are .. u r getting your money + profits back even if you are not getting the kuri. when there are more people to invest n when the term is longer you get handsome returns even if u r out of “luck”. There ll be always people in need of money and you get good discounts in monthly payments. there are risk free registerd chit companies in kerala which are there for more than 50 years where i invest.

        2. In Roberts guide to investing he has written about ASSETS and LIABILITIES. Well i just wanted him to know that our own house which we think is an asset is actualy a liability. Also About having a Positive Cashflow in life.. He just asks us to create more Real ASSEts(equity,property,business) so that we can pay for our LIABILITIES(home emi’s) without burden.
        Can u tell a fault in this ADVICE please?

        1. Ramesh says:

          Dear Sundeep,

          1. What is the IRR in chit funds? In my opinion, it is a less-than-zero sum game, with a significant ‘organiser charge’. At best, it is a savings scheme. There are never any ‘risk free’ assets or companies, if you see one, you are just overlooking the ‘risk’.
 check this too.

          As I mentioned, it is at best a savings scheme.

          2. Regarding that guide, you have picked up a very small part of his advice. Basically, this book is not about investment at all, and its main trust on starting up a business and selling it is also not a viable option for most. Yes, the tone and psychology aspects of the book (and his other books) are encouraging, but then that just makes this book a supplement to a lot of other books which are in general better, more balanced about various aspects of investing and the methodologies. I hope I am making sense to you. If someone wants to read about Investing, he/she is better off with something from Graham/Bogle/Fisher/Ellis/Lynch, etc.

  3. Dear Sharad, how much mly amount ‘ll you invest to create a corpus of 6L Rs. in next 2Y to save for that home’s down payment?

    Please provide the figure.



  4. Ashish Garg says:

    Dear Sharad,

    Its good that you are looking at buying a home at this early age.

    1. At this stage you should be able to take more risk and therefore should look at Mutual Funds via SIP route. Check out a mix of schemes (in Large Cap, Mid Cap and small caps which are performing). In case you are looking at Low Risk Tax savings then put more money in PPF account. I suggest you should still look at 40% in ELSS, 40% in PPF, 10% in Insurance through term plans and balance 10% through your EPF for Tax savings.

    2. Why gold coins? Why not Gold ETF which is almost same as physical gold gives you security. Gold coins have making charges + liquidation issues. Gold ETF are much better bet. As for Bank FDs they are anyways the secure investment. Why don’t you look at RD for a longer period than the FDs with banks?

    3. PPF is always a good tax saving option

    4. Investment is markets is always based on your risk appetite. As I said, at this stage you should be considering taking higher risk and therefore better returns. ELSS are market linked but they also gives better returns than usual investment options. Stay invested for a long term and invest through SIP route with as low as Rs.1000 per month.

  5. Dear Sharad, can you define this ‘handsome return thing’?



    1. Sharad kumar says:

      By Handsome retrun I mean one which could provide me a increased return .. I dont want to be specifically quantitative.But it should be an amount which helps me achieve financial goals.If I apply for House loan I mightt be able to cover 80%. I want the rest 20% to be supported by this retrun. Please advice me ..

  6. Dear Sharad, what’s your query?



    1. Sharad kumar says:


      Im Sharadkumar. Aged 24 working in Telecom Company.My CTC is around 7 lpa. Im planning for good investement options which would fetch me handsome returns .My financial goals are listed as below.

      Plan to save around 5-6 lakhs within 2 years.

      To Buy Home in the Budget of 30-35 lakhs.

      My portfolio is like this

      Saving around 3 lakhs

      My salary I contribute around 3k/month for PF and try to get the remaining for savings. I have Life Insurance for around 18600 premium. I dont have any otehr tax saving options.

      1)Please let me know some good tax saving options which would also fetch me handsome returns.My requirement is guaranteed returns with minimum risks.

      2)I also palnning to invest in gold coins and FIXED deposits. Please advise me is this a good suggesstions.

      3)Also Im planning to think of PPF account. Is this a gud options.

      4)I need to know about ELSS options But I find it risky since based on market forces.Do u think investing in market is good or not

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