Dear Pankaj Batra Sir, I am having around 20 lakhs in my hand as cash right now. I do not want to establish fixed deposit with this amount as already i am under high tax bracket. If i invest in fixed deposit at 9.25% also after tax it will be only 6.44 %. I am looking for a suggestion from your kindself. Can i go for investing all the amount in ICICI fmp going to open on 14th July with lock in period of 3 years. If I get an interest of 9 to 10 % without any risk of loosing capital and with this much of profit after tax i will be happy. Or if you have some other plans for me. Please guide me Sir. I will take the next step after your reply/suggestion/advise only.
3 Answers
If you have that much of cash, I would suggest you go to a good financial adviser (not the free ones) in your city, talk to him in person, understand the different investments and finally make a decision. He is going to charge you around 10-15K for his services (I am not sure if Pankaj provides these services) but the advice will be worth the fees paid. I wouldn't hesitate paying 10K before investing 20Lakhs of hard earned money than to rely on free advises.
In case you are only looking for safe returns and for period less that three years, then you can invest into Fixed maturity plans (FMP). Returns on these are taxable at 20% after indexation benefit or 10% without indexation. FMP are definitely better than Fixed deposits.
Dear Pankaj Batra Sir, Actually i want to keep it invested for 10 years but i am looking for returns around 10 to 15 percent. Do i assume that you have given me a green signal to go with ? Or should i look for debt funds floating rate ? When I invest in FMP should i tell them indexation benefit or without indexation or will it be done automatically. What return can i expect from FMP's at present scenario of inflation. Waiting to hear from you . Thanks
@Adwita Its not easy to suggest something without knowing more. What are your future requirements, risk appetite, expected returns etc. You can get 10-15% returns only if you put a good portion of investment into equities. Diversified equity mutual funds are good way to invest, but these are good for long term (> 5 years) and contains a good amount of risk. It will be better to consult a financial planner who may guide you after understanding your needs.
There is no TDS deducted in FMP gains, so you will have to compute and pay income tax yourself (you may consider indexation or not).
You can expect 9-10% rate of interest as per current situation from FMP.
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