Well that’s the point, I don’t have any goals per se financially. Atleast right now that’s the case.
All I have been doing is simply doing monthly investments across FDs, MFs etc. barring some expenses, my salary + interest income is simply invested y.o.y. For eg last year I did about 37 lacs of principle investment across FD and MF.
I recently started realising that one should have financial goals. So I largely have the following aspects going on right now:
Reduce income tax payments y.o.y. Primarily wanting to restructure FDs. Not very sure though…
invest in a few stocks maybe and hope ki 20 years later they make me rich…I’d just be deploying capital here on hope…hence unsure…don’t want to really wreck my brains on researching much.
would want to get out of corporate in another 10 years. Say by 40. I’m not very sure what I’d be doing then. But this is the only goal I have that I’m reasonably sure about…
Its better to invest in some theme(small case) or best is Index . Can create GTTS on levels for buy and sell.
Investing randomly is foolish and in todays world of disruptions market cycle has really been very small so SIP or investing luck based without any theme that too 10 years is waste of time and resource in my sense.
In stocks ,Exit is equally important than Entry. Don’t get carried away by HODL things , even Warren buffets 90% stocks portfolios gets churn within 3 years. And few stocks he hold for long didn’t even beat S&P 500 returns
Instead of focussing on accumulating more,
one would rather focus on diversifying and capital preservation
to ensure one is financial comfortable, no matter what happens in the future.
Personally, for the finanical situation described in this topic-thread, i do not see a need to speculate with stocks. (if you have a fear of losing out on any growth over the next few decades, maybe have a small but significant percentage in some ETFs/MFs.)
Accept that passive / boring is good. Get used to it.
Hmmm…
In case you haven’t read it already, this should help you get started.
Would agree with you , I also on similar opinion that capital preservation(particularly large sum)>>> than capital earnings. India is still a capital deprived country so cash is King!. There will be so many opportunities where you could deploy your capital and get safe returns than investing all in Equities thinking of multi baggers.
I am not in opinion of deploying large concentrated capital in Equities over very long time( If your churing or theame based or index thats different scenario). Equites( single stock/company) are more though than any other instument in long term
See , Equities have been glorified much but its one of many investment instuments. Explore REITS,Invits, Contra funds, Index ETFs as well.
Things with equity is profit booking as well or rotating which requires some experience as well.
If you really don’t have interest or time to read than Above way is also fine but do remember that markets can fall upto 50% any time so downside have to be noted as well.
With some knowledge and reading All above can be rotatted into ETFS.
But above is fine if no one has time or energy to learn for them MF is fine but they have 1-2% Yearly fess which can be saved in ETFs
I agree on the FD part. I like them simply because there’s certainty and guarantee. I have FD/RD operating at a high rate of 9% and the lowest is at 5.5%. Overall, average would be 7.5% and post taxes would be around 5%.
FD is plain simple vanilla.
But on another note, specifically about my returns from all investments they are in the range of 6-7.5%.
37 lacs is the fresh principal I injected last year largely from salary and FD interest.
Baaki to I’m only thinkin if I can increase my returns. Gold has performed the best for me though that too physical gold.
I bought about 10 lacs ka hold from Tanishq had all the making charges and all but it was around 32k average. Abhi dekho I guess 60k ha
Capital guaranteed only upto 5 lakhs in india , as you have pointed out you can check with multiple bank closures across world especially USA how much hard earned money lost on top of it old people , kids are standing in queues to rake their money out .
Its still the very very intelligent tool created over last century to literally loot people especially hard earned salary money .
Can you show me 1 billionaire / millionaire who puts money in FD ? Never found one till date .
All the rich park money mostly in gold / real estate / debt worst case scenario they buy art but never put in FD . Infact they borrow so much so that all banks they have loan accounts.
Currently FD generating btr returns due to high interest rate but look at any developed country most of them have negative returns. One two cuts from now will end up at 4% which wont cover inflation.
Not quite. This is the problem with people. I was little wrong about FD’s and interest rates itself. It’s true interest rates are cyclical. But the real thing is sometimes or atleast majority of times it’s negative Interest rate. You just can’t see it ,that’s why it doesn’t bother people just like shrinkflation.
If inflation is 8% and FD returns is 7% , you are really not making any gains here. Also FD purpose is specific , say you are gonna use FD for your kid’s college fees, but education fees is skyrocketing grows at 14% , what are you gonna do here? Or if you saved up upgrading PC where inflation rate of PC parts is more than bank FD rates?
I think for now atleast 1-2 years FD is good but for long term index is far better
Again, this is also passive. You are just choosing 1 or 2 stocks doing a regular SIP. which is the same as doing an MF SIP.
By active Investment, I mean that you invest in stock or index or gold, or any instrument when there is a good opportunity to enter and then wait for another good opportunity in the same instrument. you have to check the market actively. (let’s say on a weekly basis).
Your 1st investment is maybe today then you wait for another entry opportunity, it may come next month, next week, or even after 4-6 months later. you just have to be ready with cash.
(THIS IS MORE BORING THAN WHAT YOU ARE CURRENTLY DOING)
Not simple as it sounds. This is a skill you need to Learn.
“Market is not INVEST AND FORGET anymore.” some activity is required.
Capital preservation is important. I am just saying if you have some risk appetite then you can experiment with 1% of your capital.
Fair point. Unfortunately, that’s the only way I can at best operate. Can’t wreck my brains over research plus don’t have time to do so with my current job.
So let’s see…
Plus my current flow of money is either monthly, quarterly or yearly. Whenever it comes I deploy it across different modes.
Would smallcase be any good for me? That’s the only thing I could do at this juncture. Or I’m better off being in Mutual funds only.
So the above which you have quoted applies only to FD. Does the same logic apply not apply to Mutual Fund. Do you guarantee that all Mutual Fund gives you 12 to 14% return with Capital protection so that it beats inflation for ever and ever. No the rules are the same, so apply the same rule for both FD and mutual fund equally.
that too physical gold.