The Investment Thread

skysat2005

Super User
There's a FD or similar offered by LIC Housing Finance as well. I guess they are offering 10.5% or so.
Interest on all FD schemes is taxable as per income tax slabs, however these are tax free bonds but with 10/15/20 years of lock in period.
No bank is offering 10/10%+ interest rates as of now.
 

Big Daddy

Super User
Indexing is hard to beat. For last 23 years, Sensex has returned approximately 16% per year. Here are some other returns.
returns.jpg
 

Prasham

Armchair Traveller :(
I've read a book some time back (sorry can't remember the name) where there was a mention of a broking firm in San Franscisco who had a computer program which did all the deals for their customers. This was way back in 1990s. This isn't anything new.
 

Yogesh Sarkar

Administrator
Yes it isn’t new. However what the article is pointing to is very short term (less than second) volatility, which is being generated by automated trades and these automated trades going wrong due to it.
 

Prasham

Armchair Traveller :(
Yes it isn’t new. However what the article is pointing to is very short term (less than second) volatility, which is being generated by automated trades and these automated trades going wrong due to it.

Oh sorry, I didn't read the article. I actually replied on basis of title of the article :(
 

Big Daddy

Super User
Actually these trading bot do cause short term market falls and as a result, US market closes for a while when something unusual (a bug in the system or a rumor on twitter or worse like Sept. 11) happens. I have been slowly buying gold and it seems it is better to still wait. Funny how things change. Everyone was saying how great gold was now it is down 22% and still more way to go downwards (Gold's worst days are coming - The Term Sheet: Fortune's deals blogTerm Sheet).

BTW if you have read post#593 then I want to add that actual returns for indexing are higher than estimated 15.66% if dividends are reinvested because then you are earning interest on interest.
 

Prasham

Armchair Traveller :(
There's lot of buzz about retirement planning these days & hence I checked few retirement plans but wasn't much inspired. Instead I was toying with idea of systematically buying shares of few companies with good dividend paying record. Along with capital appreciation they are giving decent dividends which I believe is cool.

Some of the companies that I've shortlisted are Axis Bank, Corporation Bank, Colgate Palmolive, Shree Cement, Reliance Infra. All these are consistently giving decent dividends since last many years.

What are the negatives and positives about this idea ?
 
Top