[SmartCat]

Originally Posted by 2000rpm

Guys, Whats the best alternative to FDs which will also give me liquidity? While giving me higher net returns (taxation factored in??). How to invest in these instruments?

If you want high returns, you have to take the NCD/bond route. For eg:



You can invest in these via large traditional brokers like Kotak, ICICI etc or directly via www.goldenpi.com (stratup funding by Zerodha)



However, liquidity and minimum lot size is an issue. Instead, you can just opt for debt mutual fund route and invest in "credit risk" and "corporate bond" categories.

https://www.valueresearchonline.com/...bt-credit-risk
https://www.valueresearchonline.com/.../?tab=snapshot

Look at Yield To Maturity % before picking a fund. This gives you an idea about what kind of returns you can expect. Eg:



To understand the terminology used by debt funds, refer to this thread:
https://www.team-bhp.com/forum/shift...ebt-funds.html (Investing in debt funds)

[sdp1975]

I'm planning to buy an apartment in the next 12 months. I have some cash and I'll be having some salary savings every month and I intend to use these for the down payment. Where do I park my funds ? I want the most appreciation with minimum risks. I don't think puting money in equity would be prudent given the short duration. Should I look at short term bond funds ? I have an account on Zerodha and I can purchases via coin.

[binand]

Originally Posted by sdp1975

I'm planning to buy an apartment in the next 12 months.[...]

Where do I park my funds ? I want the most appreciation with minimum risks.

With these asks, bank FDs are the least risky option.

[ValarMorghulis]

Hi @SmartCat,

How do you view apps like Jiraaf, TradeCred, GripInvest, Upcide, etc. which allow retail investors to invest in other asset classes like:
1. Invoice discounting
2. Asset leasing
3. Corporate debt
4. Revenue based financing
A friend recently introduced me to this and he swore that invoice discounting is pretty safe with fairly good returns (~12-14%) as an alternate to traditional FDs.

What's your view?

[Latheesh]

Originally Posted by ValarMorghulis

Hi @SmartCat,

How do you view apps like Jiraaf, TradeCred, GripInvest, Upcide, etc. which allow retail investors to invest in other asset classes like:

Those fancy names itself sound scary to me. Is time like this safe for trying options like invoice discounting?

[ValarMorghulis]

Originally Posted by Latheesh

Those fancy names itself sound scary to me. Is time like this safe for trying options like invoice discounting?

Well that's precisely what I wanted to confer with SmartCat.
With the traditional avenues drying up the returns, invoice discounting seemed decent especially with the 10-14% returns (there's only so many FDs one can make; more so when the equity market is scaring everyone).

A close friend swore by it, though he did mention that he invests only smaller amounts.
So just wanted to understand a more learned opinion.

[mopy95]

Hiii everyone... Has anyone held FDs with Shriram Transport Finance... They have been offering the highest returns on FD but I am not sure how reliable they are. If someone has any insight, kindly share.

[rrsteer]

I needed some investing advice for the lady who helps us in our household chores.

She is about 50, has an unmarried daughter (working in a school), married son (living separately with his family but still seeks some financial help from parents), unemployed husband.

She is enrolled with PM Jan Aarogya Yojana. She is also enrolling in for Pradhan Mantri Jeevan Jyoti Bima Yojana. She now wants to invest 2k every month. Her main objective is to save something for her children. Her interest is to save in a life insurance scheme. I will be grateful if someone can guide me what would be a good avenue to invest for her? A life insurance + some thing would be great.

[sunilch]

Originally Posted by rrsteer

I needed some investing advice for the lady who helps us in our household chores.

She is about 50, has an unmarried daughter (working in a school), married son (living separately with his family but still seeks some financial help from parents), unemployed husband.

She is enrolled with PM Jan Aarogya Yojana. She is also enrolling in for Pradhan Mantri Jeevan Jyoti Bima Yojana. She now wants to invest 2k every month. Her main objective is to save something for her children. Her interest is to save in a life insurance scheme. I will be grateful if someone can guide me what would be a good avenue to invest for her? A life insurance + some thing would be great.

Won't the Recurring Deposits for monthly investments or if there is some lumpsum amount saved then Monthly Income Scheme (MIS) Account at Post Office be a better choice than an Endowment insurance plan for her?

PO has some other options too for anyone wanting to invest in small amount on regular basis.

There are no hidden or extra costs with PO.

PM-JAY that she already has should be good enough I suppose. More insurance cover via a savings instrument might not be optimal from a return's perspective, given her age.

[vaibhav_a_a]

Originally Posted by mopy95

Hiii everyone... Has anyone held FDs with Shriram Transport Finance... They have been offering the highest returns on FD but I am not sure how reliable they are. If someone has any insight, kindly share.

Yes, since 2019 I've been with them on the fixed income side (FD / NCD) - in fact my first NCD investment was with Shriram. Now FDs and NCDs are matured and got repaid. Still holding some funds there. They are safe - large balance sheet and specialize in commercial vehicle financing.

Credit rating AA+ for bank loans, should move up to AAA at some point of time (am sure the founder's demise has slowed things a bit).

You may want to check your risk appetite before investing but I'd rate them about as safe as Bajaj Fin or M&M Fin for placing a deposit - of course not as safe as a bank deposit. Also, company fixed deposits such as Shriram have a higher penalty for premature withdrawal (2% IIRC) so park only those funds you don't plan to use before the deposit matures.