POSTED BY Ajit Singh ON May 18, 2013 12:53 pm COMMENTS (10)

10 replies on this article “Ppf,Rd,Fd”

  1. Dear Ajit, from 10000 Rs. or 15000 Rs. mly how can you invest 5% in Real estate? That’s my sole question to you. 🙂 Are you getting me?

    The %age you are referring to are a generic statement & may not be suitable for individual’s need. So take these advices with a pinch of salt. 🙂



  2. Ajit Singh says:

    Dear Ashal,

    Thank you for responding. Thanks bemoneyaware. I got your point that PPF is the best to invest when we talk about debt.
    My question,my thinking of the complete breakup has been generated by reading Business line since very long. They say that as you are young your break up should be
    Debt -20
    Gold- 5 or 10
    Real estate- 5

    And as age increases
    Equity reduces and Debt increases.

    Am i right? and how to invest in real estate/infrastructure i dont know completely as i have started taking action now only as till now i just used to read it


  3. bemoneyaware says:

    Any investment product should be bought with following things in mind:
    Returns and
    Our article Investing:Think about Liquidity,Safety,Returns,Risk,Tax explains it in detail.

    One invests in Debt instruments like PPF, FD, RD as one gets assured returns and they are safe.
    In terms of Liquidity : PPF is a 15 year long investment and you can claim contrbution under 80C and also the returns are tax free.
    FD: are done as lump-sump or one time investment for fixed tenure of your choice. You can break it (with some penalty) if required. Interest on FD is taxed as per your income slab , TDS is deducted if interest for a financial year is more than 10,000.
    In recurring deposits, a monthly deposit (RD Installment) of a pre-fixed amount is made in the RD account and on maturity the depositor gets back the amount deposited, along with interest calculated at the rate applicable at the time of opening of RD account. You choose the tenure and you can stop it if required with penalty
    There is no tax deduction or exemption available on the amount invested. In fact, the interest earned on the amount is fully taxable. It comes under the Income From Other Sources. But Tax is not deducted i.e TDS is not applicable on the Interest earned by Recurring Deposits as per current income tax rules. Our article Overview of Recurring Deposits explains RDs in Detail.

    So depending on what you want in terms of Liquidity, Returns and Taxation decide if you would want to put in PPF,RD,FD.

  4. Dear Ajit, I’m still sticking to my original query. How did you come to those %age for each asset class? How you are going to have real estate kept @ 5% of your portfolio?

    what ‘ll you acheive by splitting those 10K Rs. of PPF into FDs & RDs?

    Please elaborate. I want to understand your thinking process.



  5. Ajit Singh says:

    Dear Ashal,

    Presently my query is that i invest 10000/month in PPf. Other than this i would start my SIP’s in MF and ETF. But presently i want to know that is it wise to deposit complete 10000 in Ppf or should break into RD’s and FD’s?

  6. Anshuk Jain says:

    I would say that you should max out your PPF/EPF/VPF allocation with your debt component and then only think about any other debt instrument..

  7. Dear Ajit, what’s the current size of your portfolio & what’s the current %age of each component mentioned by you?



  8. Ajit Singh says:

    Dear Ashal,

    I have one confusion. I invest for the time been 10000/month only in ppf. Is it better to segregate it into RD n FD? I have started ur 100money action n slowly wud even invest in SIPs (other dan 10000). But is their any thumb rule (% wise) for this debt segregation?.Overall i think according to my age 28 the portfolio should be
    70% debt,
    20% equity
    5% Gold(ETF)
    5% real estate.
    But in 20 % what should be the segregation?
    Kindly help

    1. Ajit Singh says:

      Sorry its 70% equity
      20% debt
      5% ETF
      5% Real Estate

  9. Dear Ajit, what’s the query?



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