is it safe?

POSTED BY Jig ON January 5, 2011 8:20 pm COMMENTS (8)

 I am investing 3000 per month in sahara india considering that on new year diwali i will get some lumsum amout with little interest. i am saving for year and whole money they return with interest on diwali.

Is it ok? is there any other way to achieve same thing in safer way?

Thanks

 

 

8 replies on this article “is it safe?”

  1. jignesh says:

    Thanks all. I will sure pass this info to my Father.

    keep sharing .

    Rgds

  2. jignesh says:

    Dear Manish and Rajendran,
    Thanks for your replies.
    Let me give more focus on this. My Dad is following this system since last few years. But i came to know just few days ago. There is no actually any fund. It is just handed over to a person and at the end of year ( ON DIWALI ) he returned all the money with that interest.
    When i asked my Dad for reason he replied , in such way he can manage spending on Diwali and will not give load on pocket suddenly.

    Further He is not in any slab of tax.

    Manish , can you elaborate on RD? what is that and how and where to invest in that?

    1. Ajay says:

      Jignesh,
      RD stands for recurring deposit.

      As an example
      You choose to deposit 500 Rs on 5th of every month from Jan 2011 to Dec 2011.
      The bank will pay you back the amount deposited with interest on Jan 5 2012.

      The interest is calculated as follows
      For amount deposited on Jan 5 2011 you will get interest for 12 months
      For amount deposited on Feb 5 2011 you will get interest for 11 months
      For amount deposited on Mar 5 2011 you will get interest for 10 months

      and so on

      You can read more here
      http://www.icicibank.com/Personal-Banking/account-deposit/recurring-deposits/index.html
      and
      http://www.corpbank.com/asp/0100text.asp?presentID=73
      and
      http://syndicatebank.in/scripts/CumulativeDeposit.aspx

    2. RD is nothing but recurring deposits with Banks , just FD , they mature on fixed date , but instead of putting a big amount in one go , you keep transferring money in RD per month

      Manish

  3. Rajendran says:

    Jignesh,

    ICICI is giving 9 percent on 390 day deposit. I have no idea why do you want to choose the Sahara India whatever fund for just 6 percent interrst.

    I hope u will not be in 3o% tax braket so even after paying tax on interest still in a FD u will get better returns than from your sahara fund.

    Please think over it.

  4. jignesh says:

    Not exactly sure but around 6%.

    1. Jignesh

      In that case why did you even considered them at all ? That 6% interest would be taxable also .. RD was better i suppose .

      Manish

  5. Jignesh

    What is the return they are providing ? You should compare them with the RD or Debt funds SIP

    Manish

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