The Investment Thread

[citymonk]

AFAIK its called OD against FD. I am using it since many years now. There's no catch.

How much time is advisable for payback and should be looking for what rate of interest difference.
Off course Intrest difference depends on Quantum of loan taken.

Is exusting FDR and saving on interest not a better preposition , say if time period is more then 2 years.

 

[Prasham]

All my loans are for double (usually 7.5-8.5 years) @ 9-9.75% interest or so. I pay 1% difference on my ODs.

I didn't really understand your question but from whatever I've understood, I've given the above data

 

[citymonk]

All my loans are for double (usually 7.5-8.5 years) @ 9-9.75% interest or so. I pay 1% difference on my ODs.

I didn't really understand your question but from whatever I've understood, I've given the above data

1. If such a long period then is it not better to use the FD amount itself then to pay Interest.
2. Say on loan of 100000 you are getting 9000 per annum from bank , and are paying back 10000 to bank per annum.
1000 rupees you are paying back to bank , is it as simple as that.
3. If loan is paid back in 2 months, then how do they calculate Interest.

 

[Prasham]

1. If such a long period then is it not better to use the FD amount itself then to pay Interest.
2. Say on loan of 100000 you are getting 9000 per annum from bank , and are paying back 10000 to bank per annum.
1000 rupees you are paying back to bank , is it as simple as that.
3. If loan is paid back in 2 months, then how do they calculate Interest.

1. That's how savings are done. We open a FD every month and keep clubbing it in a single accout and use the OD whenever required.
2. A.A.
3. AFAIK it doesn't matter if you return it in a day or a year, the interest rate is fixed. It doesn't change like in the FD Interest rates.

 

[citymonk]

AFAIK it doesn't matter if you return it in a day or a year, the interest rate is fixed. It doesn't change like in the FD Interest rates.

Will that mean on loan returned in a month or so, you will end up paying whole interest of whole year i.e 1000 rupees. Or they calculate on per month/day basis.

 

[Prasham]

Will that mean on loan returned in a month or so, you will end up paying whole interest of whole year i.e 1000 rupees. Or they calculate on per month/day basis.

Say you have an FD of 100000. You withdraw say 20k from it and then deposit it after a month. The applicable interest @ 9% shall be Rs. 150/-. I hope its clear now.

 

[Big Daddy]

2013 may be an year where conventional Indian wisdom of investing in gold and real-estate failed. Everyone knows the gold story but here is real-estate story: Why Indian realtors would like to forget 2013 in a hurry >> Watch Video

 

[citymonk]

2013 may be an year where conventional Indian wisdom of investing in gold and real-estate failed. Everyone knows the gold story but here is real-estate story: Why Indian realtors would like to forget 2013 in a hurry >> Watch Video

Where had you Invested to earn such a good profit this year, as you have announced on other thread.

 

[adsatinder]

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QNet scam accused Ferreira absconding after lookout notice, tries Hong Kong citizenship

 

[Big Daddy]

Where had you Invested to earn such a good profit this year, as you have announced on other thread.

Good question. Let me be clear about the percentage of return because the amount masks the percentage return. My percentage return was 14.04% when S&P 500 return was about 30%, so I did not do well at all. The amount looks big because my portfolio value was large.

Now to your question, where did I invest? I mentioned this in the beginning of year 2013 (on this thread). I invested in gold and short term bonds. My investments in gold gave me losses but it was a strategic investment. I will continue to invest in short term bonds this year. I also invested in international bonds last year. When stocks raise, they are hardly worth buying because bonds and gold falls. I usually go after asset classes that are undervalued. This year, I will also buy real-estate stocks (REITs) because my percentage allocation on REIT is falling with increasing allocations in other asset classes.

My objective is to minimize risk and get consistent returns. As you can see, even a small percentage gives me huge returns. The problem with large portfolio is that a small drop will result in huge losses as well. So, it is the losses that I am trying to avoid.