an FD with Over draft limit is good then FMP. since in OD limit your money is not blocked as by FMP.Thus one can use his hard earned money from savings a/c any time when he want, in case of any kind of emergency, also 10% rate are good.
& if you say inflation, then can you please tell us an example how does it effect on an FD(sice an FD is generally made only out of savings) ?
RE:fd is good
by Venkat on Aug 06, 2008 01:00 PM Permalink
If u invest 1 lakh in FD for example, u may be getting Rs.109000 after 1 year. After tax u will be getting only 107800. The value of this amount after 1 yr is less than the value of 1 lakh as of today. You have to earn atleast 15% every year. But the risk is very less. For me real estate is a very good option. The value is getting doubled every year. I made very good profit recently.
RE:fd is good
by Johnson Sebastian on Aug 06, 2008 01:05 PM Permalink
Real estate does not give good returns alsways. We had invested in real estate in 1996. By 1999 it became 60% of investment. In the near future real estate also may not do so good as it had gone so up so fast in the last two years and the interest rates are going up and will not come down in immedeate future.
RE:fd is good
by Venkat on Aug 06, 2008 01:10 PM Permalink
I don't know where u have invested. But if we would have invested between the period 2001-2005 in metro cities, we can make very good profit now. Atleast 3 to 5 times of the invested value.
RE:fd is good
by Johnson Sebastian on Aug 06, 2008 02:16 PM Permalink
What would have happened if you had purchased the shares of SAIL? 25 to 50 time by 2007 end.
RE:fd is good
by Haatim on Aug 06, 2008 01:08 PM Permalink
venkat real estate may not be good right now. Please understand say you buy property for 10 lakhs, you can add registration, Brokerage and maintenance which would make it worth 11 lakhs. If you try to sell it within a year you would be lucky to get 11 lakhs plus it is not liquidity, even if emergency arises you would have to sell it at a discount.After say 5 Years better construction buildings with better facilities would come up thus reducing the price of your property.RENTING could be an option
RE:fd is good
by Venkat on Aug 06, 2008 01:14 PM Permalink
Hi Haatim, Thanks for ur comments. I do accept that if u sell it within a year, u can't make much profit. Also we can't make much profit, if we sell it in emergency. But it's a good option for long term investments. We have to wait for atleast 3 yrs.
RE:fd is good
by Balasubramaniam R on Aug 06, 2008 01:24 PM Permalink
Real estate is no doubt a good option but one needs large amts of money to invest. Its not a choice of a small investor. Further real estate has to be looked after which is another headache.
RE:fd is good
by JIgna Shah on Aug 06, 2008 03:09 PM Permalink
Ongoing ICICI 3 Year FMP @11.50% offer Overdraft facility as well like bank fixed deposit. Nothing is better than FMP.
