[khoj]

Originally Posted by NK@Hyd

Guys,

Is it true that you need to open a savings account in SBI (if you don't have, already) to start a PPF from it?
Heard it somewhere.

All one needs to do is open a PPF account, unless that particular branch of SBI is using this as a means of getting additional account holders.

[TaureanBull]

Originally Posted by NK@Hyd

Guys,

Is it true that you need to open a savings account in SBI (if you don't have, already) to start a PPF from it?
Heard it somewhere.

Like said before - NO. To elaborate further you need the SBI account to link the PPF account and use ECS mandate for deposit. If you dont have the savings account you will have to physically go and deposit in the PPF account. (or withdraw). The savings account will also give you facility for net banking. You would be able to track your PPF account from that online.

[ghodlur]

Anyone brought the IDFC Infrastructure Bonds as yet? Any reviews on the same? Is it worthwhile to buy them now or wait as more such offers are expected in future.

Frankly I am against the 5 year lock in period for the Bond. Also the tax rebate for this year would be a max 20K. Pls find the link below for some insights

High income taxpayers can gain from infrastructure bonds - Columns - livemint.com

[abdriver2000]

Originally Posted by ghodlur

Anyone brought the IDFC Infrastructure Bonds as yet? Any reviews on the same? Is it worthwhile to buy them now or wait as more such offers are expected in future.

Frankly I am against the 5 year lock in period for the Bond. Also the tax rebate for this year would be a max 20K. Pls find the link below for some insights

High income taxpayers can gain from infrastructure bonds - Columns - livemint.com

I am waiting for LIC to come out with their bonds. IDFC is closing soon and we already have L&T in the fray. I think LIC should come out with their bonds soon. Lock in is always 5yrs, but L&T is redeemable at 7yrs instead of 10yrs for IDFC.

[CrackedHead]

IDFC also has a couple of bond series that are redeemable after 5 years.

Speculation is that other infrastructure bonds might offer a better return but if you are sitting on spare cash and not investing in stocks or mutual funds right now then why not buy the IDFC bonds? They are rated "LAAA" which is the highest rating.

[ontheroad]

Iam planning to start a SIP in MFs through my bank savings account. Need some help to clear some doubts.

1) Which is better option in long term. Growth or Div reinvestment?
2) Is there any brokerage charges levied by bank for installments in SIPs or should i deal directly with the fund managers, like Reliance MFs to avoid any brokerage charges , if any?

Thanks in advance

[NetfreakBombay]

Don't think any fund has brokerage now. With bank's site you can buy/redeem mutiple funds.

[kalpeshc]

Growth and Div reinvestment is actually one and the same thing. Basically whatever you earn is again put back into the fund. Which one are you planning to invest in?

I too am thinking of starting another SIP. I already have one in HDFC Top 200

[carboy]

Originally Posted by kalpeshc

Growth and Div reinvestment is actually one and the same thing.

Not true. Tax treatment is different.

[ghodlur]

Originally Posted by ontheroad

Iam planning to start a SIP in MFs through my bank savings account. Need some help to clear some doubts.

1) Which is better option in long term. Growth or Div reinvestment?
2) Is there any brokerage charges levied by bank for installments in SIPs or should i deal directly with the fund managers, like Reliance MFs to avoid any brokerage charges , if any?

Thanks in advance

1) Growth is a better option if you doing SIP for long term and dont have any short term goals. If so then Dividend option is good. But with only those fund who have a good dividenfd paying track record. In all other cases Growth option is the right choice.
2) No charges by bank. You can save the entry load charges if directly approaching the Fund branch office in your city. Otherwise if you go through agent then you will have to pay the entry load.

Check out valueresearchonline.com or moneycontrol.com for good star rated funds.

[Neilguy]

Originally Posted by carboy

Not true. Tax treatment is different.

Could you elaborate a little on how the tax treatment is different?

[carboy]

Originally Posted by Neilguy

Could you elaborate a little on how the tax treatment is different?

Dividend Reinvestment v/s Growth – Let your taxes decide -

[download2live]

Originally Posted by ontheroad

Iam planning to start a SIP in MFs through my bank savings account. Need some help to clear some doubts.

1) Which is better option in long term. Growth or Div reinvestment?
2) Is there any brokerage charges levied by bank for installments in SIPs or should i deal directly with the fund managers, like Reliance MFs to avoid any brokerage charges , if any?

Thanks in advance

For SIP go for the option in which the dividend declared is invested back in fund. Only for Tax saving MF's make sure that you take the dividend out instead of re-investing the same.

The rule now is that the brokers will no longer be paid any commisions by the Fund houses. So whatever the charges are of the brokers, they will collect from you.

[ontheroad]

Originally Posted by ghodlur

1) Growth is a better option if you doing SIP for long term and dont have any short term goals. If so then Dividend option is good. But with only those fund who have a good dividenfd paying track record. In all other cases Growth option is the right choice.
2) No charges by bank. You can save the entry load charges if directly approaching the Fund branch office in your city. Otherwise if you go through agent then you will have to pay the entry load.

Check out valueresearchonline.com or moneycontrol.com for good star rated funds.

Thanks ghodlur. Doesn't bank act as an agent when SIP is debited through the savings account? Entry load have to be paid in each installment?

[Eddy]

Guys, how do we go about investing in Gold without purchasing it physically ? What kind of a demat account, if at all, is needed for transacting in Gold ?