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Old 20th May 2011, 18:26   #241
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Would you recommend any particular Index Fund or mutual funds? Would you recommend splitting the amount or investing as a whole?
Check http://www.valueresearchonline.com/ for 5 star rated funds. Also has a lot of information on investing in mutual funds.
They usually suggest making staggered investments and mutliple mutual funds to spread the risk.
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Old 20th May 2011, 23:20   #242
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When I asked for a locker at an Andhra bank near by, they came up with a "locker deposit", it started off with an additional 50K FD until the new entrant came up with the "no, not the usual FD, we need 1L" (not the usual FD that they usually ask in banks for a locker and they said they will keep the Deposit certificate with themselves). This is completely new to me, We do have lockers at other banks but I have never come across something like this. Instinct says this particular person is playing.

The reason I am uncomfortable with leaving the certificate with any bank is that I faced an issue a few months back, they misplaced the certificate of an FD and It took a lot of time to convince them to search and find it.

Also checked up with a friend of mine about all this since he has a locker at this very branch,from what he can remember he says he has a 10K FD. And as far as he can remember its a regular FD.

If there is no requirement for this supposedly "locker deposit" I will be foreclosing all the existing FDs with them.

Anyone with information on this please help!

Mods: if this is not the appropriate thread (Posted here since its FD after all) please move to one that is! Thanks!
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Old 20th May 2011, 23:40   #243
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This is a common malpractice with banks which, as per RBI, they are not allowed to.

Check this Circular By RBI for the same.

When I opened my locker in an SBI branch, I was first asked for 50k FD, I told them this is not needed as per RBI. The lady was honest & said that while I am correct, they get order from their Managers to push FDs for lockers. She was open for negotiation & since I anyways wanted to open an FD, I opened one but for less than half of the amount demanded.
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Old 21st May 2011, 00:46   #244
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Will meet up with them tomorrow and find out what they have to say. For someone like me its all trust and once folks play tricks I take it as an insult and it hurts. Either I get this person moved or I pull out everything from there. Why does every branch have a moron like this? These smarty pants that can't 'read' a customer and goes for the over kill (50K to 1L was nudging and he went on to say they will keep the certificate, Its not really the money, but how many of us can take a hit at our intelligence or moral/ethical values ?) Wonder if they would ever survive in a private bank!

Will update after a 'talk' with the BM. They usually respond only after you start 'talking' to them.
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Old 21st May 2011, 01:29   #245
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Default re: Income Tax savings, Investments and Insurance

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Wonder if they would ever survive in a private bank!

Will update after a 'talk' with the BM. They usually respond only after you start 'talking' to them.
They'd be promoted in a private bank
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Old 21st May 2011, 03:05   #246
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They'd be promoted in a private bank
You over looked the overkill part! One does that in a Private bank setup a few times, it has to be the door for sure! Like I said, they got to 'read' the person and not get too ambitious.
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Old 22nd February 2012, 13:10   #247
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Default re: Income Tax savings, Investments and Insurance

Waking up an old thread

Kotak is up with a "Second income Plan" Where-in they are assuring 20 year payback of annual premium paid by you along with some maturity bonus on 20th year along with life cover and tax benefit.

They are giving everything written as well.

Kotak Link


As a investment purpose, it definitively looks lucrative to me, Any suggestions ??
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Old 22nd February 2012, 13:42   #248
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Default re: Income Tax savings, Investments and Insurance

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Waking up an old thread

Kotak is up with a "Second income Plan" Where-in they are assuring 20 year payback of annual premium paid by you along with some maturity bonus on 20th year along with life cover and tax benefit.

They are giving everything written as well.

Kotak Link


As a investment purpose, it definitively looks lucrative to me, Any suggestions ??
Insurance & investment are 2 different things - they shouldn't be mixed.
If you want to insure your life, then buy a term life insurance which gives you zero money unless you die - it's far cheaper to insure your life this way - premium is far less than premium paid for ULIP, Endowment or Whole Life insurance. If you want to invest money, invest it in pure investment stuff.
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Old 22nd February 2012, 14:33   #249
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Insurance & investment are 2 different things - they shouldn't be mixed.
If you want to insure your life, then buy a term life insurance which gives you zero money unless you die - it's far cheaper to insure your life this way - premium is far less than premium paid for ULIP, Endowment or Whole Life insurance. If you want to invest money, invest it in pure investment stuff.
I understand the same and already holding a pure life insurance policy as well. Though they are using it as one of the selling point. However, my requirement is very clear that I am looking at this product as an investment instrument.

Cheers
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Old 22nd February 2012, 14:52   #250
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I understand the same and already holding a pure life insurance policy as well. Though they are using it as one of the selling point. However, my requirement is very clear that I am looking at this product as an investment instrument.

Cheers
If they are offering life insurance as part of the product then the cost of the life insurance is built into the product - so I can't understand how it would be better than a pure investment product?

If you could give more details about the product, i am sure some one can suggest a pure investment product which would give better returns. Plus a pure investment product is better regulated by the financial authorities.
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Old 22nd February 2012, 14:59   #251
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Default re: Income Tax savings, Investments and Insurance

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Originally Posted by carboy View Post
Insurance & investment are 2 different things - they shouldn't be mixed.
If you want to insure your life, then buy a term life insurance which gives you zero money unless you die - it's far cheaper to insure your life this way - premium is far less than premium paid for ULIP, Endowment or Whole Life insurance. If you want to invest money, invest it in pure investment stuff.
Well said.

All such GUARANTEED return plans give you a GUARANTEED return of not more than 4-5% compounded annually. Much lower than FD with a huge lock in period of 10-20 years.
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Old 5th March 2012, 20:10   #252
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My dad is about to retire(government employee) and is receiving some 25 lakh rupee. In the current investment scenario, where can it be parked in?

PS: He would be comfortable about not investing in the share market(direct/indirect) because of past experiences.

Bhpians, kindly guide.
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Old 5th March 2012, 20:42   #253
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Default re: Income Tax savings, Investments and Insurance

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Originally Posted by ramzsys View Post
My dad is about to retire(government employee) and is receiving some 25 lakh rupee. In the current investment scenario, where can it be parked in?

PS: He would be comfortable about not investing in the share market(direct/indirect) because of past experiences.

Bhpians, kindly guide.
Invest in bank FDs - currently IDBI bank is offering 9.5% and *no* penalty on premature withdrawal.

Another option is tax free bonds - REC tax free bonds open tomorrow - retail investors can invest upto 1 Lac with an interest of 8.32% ( for 15 yrs ) - note that the interest income is tax free.

Last edited by sdp1975 : 5th March 2012 at 20:46.
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Old 5th March 2012, 20:42   #254
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Default re: Income Tax savings, Investments and Insurance

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Originally Posted by ramzsys View Post
My dad is about to retire(government employee) and is receiving some 25 lakh rupee. In the current investment scenario, where can it be parked in?

PS: He would be comfortable about not investing in the share market(direct/indirect) because of past experiences.
1. Bank Fixed Deposits.
2. Treasury fixed deposits - depending how easy the transactions are in your state.
3. Tax free bonds (NOT infrastructure ones). Till issues open, park in fixed deposits.

AVOID company deposits and unsecured bonds.
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Old 5th March 2012, 23:48   #255
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Default re: Income Tax savings, Investments and Insurance

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Originally Posted by ramzsys View Post
My dad is about to retire(government employee) and is receiving some 25 lakh rupee. In the current investment scenario, where can it be parked in?

PS: He would be comfortable about not investing in the share market(direct/indirect) because of past experiences.

Bhpians, kindly guide.
Some part of the money can be invested in something called "Long Term Floating Rate Debt Fund".

The advantage of this fund over FD is that

1) When interest rates rise, you get higher returns automatically.
2) Excellent liquidity. If you need the money, sell the funds online and you get the money in 1 day.

Disadvantage: When interest rates fall, you get lower returns.

That's why invest around Rs. 5 Lacs in Birla Long Term Floating Rate Fund. The rest in traditional bank FDs. When you need money for any reason, you can pull out some or all the money invested in this fund with the click of a mouse button.
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