POSTED BY January 3, 2013 11:34 pm COMMENTS (10)ON
Locking away money in an FD for 10 years is giving an yield of 12.63%, the higher yield is due to the magic of ‘compounding’ in effect every quarter.
On top of that there is no tax deducted on interest earned as NR customer unlike domestic FDs.
With that extra benefit of saving on tax as NR customer, Does such no-risk yeild in FDs not compare favourably to MFs (or anything else) where in addition to risk of losing the capital (may be very unlikely), there is also a chance of returns being less than 12.63%? Is 12.63% not a good enough return (with no other hassles), consistent over/for 10 years that we can subcribe to?
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