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Old 15th April 2011, 16:21   #166
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Default re: Income Tax savings, Investments and Insurance

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If you are not looking at the 50K for the next 5 years the it should be SIP in good MF's but if you would be needing the money say within a year or maybe a little after then you should go for Bank FD's.

Even if you dont want to invest in SIP, you can opt for lumpsum investment. It all depends on your needs as I had said earlier.
If you are a tax payer in 20 or 30% bracket and are thinking of risk free investment, then FMPs which mature in just over a year are better than FDs as their returns are higher than FDs and tax is lesser than FDs. But they do not have exact assured returns like FDs.
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Old 15th April 2011, 20:50   #167
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@ ghodlur, Thanks for the advice, i guess i will go in for the lumpsum and seek the returns after 5 years. As i said earlier that i was looking for a 5 year window period.

@ DieselFan, I am not sure of FMP's as to how do they don't have an exact assured return.
Am confused. Can you be more precise on that. Thanks.
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Old 16th April 2011, 21:15   #168
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@ DieselFan, I am not sure of FMP's as to how do they don't have an exact assured return.
Am confused. Can you be more precise on that. Thanks.
FMPs - have definite maturity period like FDs. The return is not guaranteed, mean to say, the rate may vary depending on the surplus generated by the fund. It is similar to MFs, but amounts are invested in the interest bearing instruments, which are nearing maturity date.
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Old 24th April 2011, 09:20   #169
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Default re: Income Tax savings, Investments and Insurance

Gold,Silver prices, Gas prices, Dollar De-valuation, NEW RESERVE CURRENCY.
Yes and again this is all conspiracy theory.


One more interesting perspective on precious metal investment.
I just recently asked my parents to buy 1.5 L worth Silver again.
I bought some gold when it was 8000 INR.



Can some experts comment on how liabilites will be honored
when the medium of exchange was paper ? Because parting
away with precious metal is going to be tough then.

Last edited by prince_pervez : 24th April 2011 at 09:26.
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Old 25th April 2011, 10:32   #170
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Did anyone transfer their PPF account in SBI from Branch 1 to Branch 2 in the same city.

I am in a dilema now. I went to apply for the transfer at Branch 2. SBI bank personnel told me that it is not possible to transfer the PPF account. If at all I am interested, the old PPF account in Branch 1 needs to be closed and a new one at Branch 2 needs to be opened. My account in Branch 1 is 7 years old.

Another option which was suggested by Branch 2 personnel is to make the payments into my PPF SBI Branch 1 account at Branch 2 only, so that I can avoid the travel. Now if I make the payment the way they say, will there be any debit from my account since the payment is being made at non-home branch account [ like it happens with SB deposits ].

Expert advise is highly appreciated.
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Old 25th April 2011, 11:03   #171
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^^ AFAIK the payment to PPF account (or any other Govt.account) can't be made trough the CBS facility. So you will have to make the payment at the branch where your PPF A/C is maintained.
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Old 26th April 2011, 12:51   #172
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I agree with Gansan here. Even am holding an acc. with SBI branch which is 10 miles from my place and in no way they do let me make my dep. in another branch. So the best way i have come up with is Net transfer. No Hassles.
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Old 26th April 2011, 14:57   #173
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So the best way i have come up with is Net transfer. No Hassles.
I am not confident on Net transfer, even though I use citibank and HDFC online banking facilities.

Vauge thought though: Can we do a online transfer from Citibank or HDFC to my SBI PPF account ?

If the above works, I will be the happiest person instead of dredging 15 km from my place.
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Old 26th April 2011, 17:27   #174
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So the best way i have come up with is Net transfer. No Hassles.
+1 to that, Net transfer any time better, no hassles and time savings too.

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Vauge thought though: Can we do a online transfer from Citibank or HDFC to my SBI PPF account ?
Yes , you can do that if you have the SBI PPF branch IFSC code. Its should be like any ordinary NEFT's.
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Old 26th April 2011, 17:34   #175
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Normally a copy of the challan (with bank seal) is what one furnishes to the employer as investment proof for TDS calculation. If you make a NEFT payment, what will you produce? The only other acceptable proof will be a copy of the updated PPF passbook, for which you will have to go to the branch anyway!
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Old 26th April 2011, 18:42   #176
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Normally a copy of the challan (with bank seal) is what one furnishes to the employer as investment proof for TDS calculation. If you make a NEFT payment, what will you produce? The only other acceptable proof will be a copy of the updated PPF passbook, for which you will have to go to the branch anyway!
I think the request no which is generated after the NEFT should be suffcient as a proof for the PPF investment. Although haven't used personally coz in my case its a SBI to SBI transfer and I get a certificate from SBI for the payment done over NEFT for PPF.
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Old 26th April 2011, 18:49   #177
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Default re: Income Tax savings, Investments and Insurance

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Originally Posted by lambuhere1 View Post
Did anyone transfer their PPF account in SBI from Branch 1 to Branch 2 in the same city.

I am in a dilema now. I went to apply for the transfer at Branch 2. SBI bank personnel told me that it is not possible to transfer the PPF account. If at all I am interested, the old PPF account in Branch 1 needs to be closed and a new one at Branch 2 needs to be opened. My account in Branch 1 is 7 years old.

Another option which was suggested by Branch 2 personnel is to make the payments into my PPF SBI Branch 1 account at Branch 2 only, so that I can avoid the travel. Now if I make the payment the way they say, will there be any debit from my account since the payment is being made at non-home branch account [ like it happens with SB deposits ].

Expert advise is highly appreciated.
Yes you can do the second option. Deposit money in Branch 2 to be credited to PPF a/c in Branch 1. There will be no charge afaik because its PPF a/c. In my case the PPF a/c in sec-2 branch, I talked to the branch manager in my area(sec-55 branch) she advised against transferring the PPF a/c instead she suggested me to deposit the amount in cash in local branch and the amount will be credited to my PPF a/c in sec-2. The updated passbook didnt show any deduction of an amount for such transfer.
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Old 26th April 2011, 19:29   #178
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Default re: Income Tax savings, Investments and Insurance

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Originally Posted by lambuhere1 View Post
I am not confident on Net transfer, even though I use citibank and HDFC online banking facilities.

Vauge thought though: Can we do a online transfer from Citibank or HDFC to my SBI PPF account ?

If the above works, I will be the happiest person instead of dredging 15 km from my place.
HDFC has the option of performing an online funds transfer.
Just add yourself (SBI PPF acc.) as a beneficiary and HDFC processes the request in 24 hrs. You will get a notification the next day for the readiness of the transfer. Be careful if you edit in between your adding beneficiaries and 24 hrs for confirming, it will calculate another 24 hrs from that moment itself. Silly HDFC problem. .

It is very safe. Try it once for a paltry sum. Once assured, nothing like it.
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Old 27th April 2011, 11:59   #179
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Yes you can do the second option.
Wonderful. Just wonderful. I will use this choice currently. I owe you on on this buddy.

Quote:
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HDFC has the option of performing an online funds transfer.
I will try the HDFC option with a small sum. If it works out, then it is like no other thing.Only concern would be the proof of submission in PPF in office.

Thanks again
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Old 8th May 2011, 06:54   #180
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I have started a SIP (not the tax saving ones, usual HDFC and Reliance growth etc) since last year and plan to carry on with it till at least 5 years minimum.
Five years may not be sufficient to get great returns. Everything is dependent on where the market is at that point of time. IMHO one should give a time span of 10 years and book some profits when the market makes new highs.

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I assume worst case inflation of 18%. When my advisor says that you will get minimum 20% return no matter what over a period of 5 years, then I start thinking will it still be a positive return if I adjust for inflation too. If post adjustment returns are puny, then I would rather go for gold coins.
I know people will suggest real estate but I wont think beyond a flat an that too for living and not as investment. And no plot buying in Bangalore. Its too messed up.
I would suggest that roughly you divide your investments into the following categories (in that order):

Debt
Equity
Gold
Real Estate

In case your age is around 35 your allocation may be as follows:

Debt - 30% of your savings (FMPs or FDs depending on the tax bracket you are in)
Equity -50% of your savings [MFs or direct equity, though investing in equities directly may be risky]
Gold -5% of your savings [Through Gold ETFs]
Real Estate - 15% of your savings [Plots (better returns) or Flats]

You may be aware that the aforesaid 4 asset classes peak at different times and if you have your money in all the four classes proportionately you need not worry about inflation.

Last edited by Gautam Misra : 8th May 2011 at 06:59.
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