Miscellaneous on r/IndiaInvestments Wiki

Where can I park money for a few days, a few months, or a few years?

Mon, 01 Jan 0001 00:00:00 +0000

Where can I park money for a few days, a few months, or a few years?

First of all, it should be clear what you mean when you say “park money”. You intend to keep some money safe somewhere for a requirement that’s going to come up in the near future (somewhere between a few days to 1-3 years down the line).

Bank Savings Account

Let’s start with the absolute basic thing you can do. Nothing. If you want to park money for a few days or a few months, you can keep it in your savings bank account which, as of Jan 2021, would yield anywhere from 2.7% to 3.5% in too big to fail banks like SBI, HDFC, and ICICI. Axis Bank and Kotak Mahindra Bank are offering upto 4%.

What are chit funds? Should I invest?

Mon, 01 Jan 0001 00:00:00 +0000

What are chit funds? Should I invest?

How does a chit fund work: ELI5 version

It is a savings plus credit / loan product. There is an organizer (a.k.a foreman) and there are a specified number of members, who agree to pool/pay/deposit a specified amount of money periodically for a pre-decided fixed duration.

E.g. there can be a chit fund with 20 members (and a separate 21st organizer who conducts the whole show), and they agree to pool Rs 1000 every month for 20 months. So, a fixed number of members, periodic deposit monthly, deposit amount of rs 1000 and fixed total period of 20 months. In the first month, the total amount of deposit would be 20,000.

Is Gold a good investment now? It has gone up ~50% this year

Mon, 01 Jan 0001 00:00:00 +0000

Is Gold a good investment now? It has gone up ~50% this year

Past performance is not indicative of future returns. If you pick assets after they have performed well, you’d most likely miss out on assets that performs well after you have invested in it.

If Gold has gone up 50% this year, right time to invest in it would’ve been 1 year ago.

Instead, question your asset selection process: is your selection criteria good enough for it to have picked Gold as an investment a year ago?