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Need advice on where to invest 8.75lakh for guaranteed high returns
- Thread starter DaDarkkNight
- Start date
Not from rbl, got to know about rbl signature debit card only recently..
Hdfc also has few demerits.. now u can only use on hdfc billpay portal to get that 1% on cc bill payment, also on hdfc cc bill payment no cashback.
Yes rbl is paid but it gives vouchers as welcome benefit in exchange. Once you get this card issued, after that it is very easy to get its annual fee waived off as for that only 3 lac annual spends is needed, and if you use it exclusively for cc bill payment, it is very easy to hit the 3lac milestone(for annual fee waiver) and the 5lac (to get extra 1% 5k voucher).
That is what I said, hdfc is good only for beginners where there is very less cc bill payment to be made monthly and to get things started at 0 fees
@xywowowvw @sm9811911 @CD. @MangoRush
How am I at loss after taking this loan?? I am not able to get it...
Lets look at it this way and put aside the interest rate for now.
I took 8.75lakh loan principle today.
This entire amount immediately credited to my bank account.
Now, every month I will pay some emi(which has some principle amnt and some interest amount with txes) and this emi amount varies a little.
After one year, when I am done making all the payments to bank and closed the loan.
Final amount I paid to bank is : 8.75lac + 66k
Now do the calculations and tell me how much I need to earn if I invest 8.75lac right away today
How am I at loss after taking this loan?? I am not able to get it...
Lets look at it this way and put aside the interest rate for now.
I took 8.75lakh loan principle today.
This entire amount immediately credited to my bank account.
Now, every month I will pay some emi(which has some principle amnt and some interest amount with txes) and this emi amount varies a little.
After one year, when I am done making all the payments to bank and closed the loan.
Final amount I paid to bank is : 8.75lac + 66k
Now do the calculations and tell me how much I need to earn if I invest 8.75lac right away today
It's 62,559 to be precise ,not 66k
Pankhuri
TF Ace
Not just first time sellers.
assuming you pay this off in 1 year completely
secondly the income generated from this would be taxed accordingly to tax bracket
lets say you invest in a 9 % fd for 1 year
post tax in hand you will have 50k while interest payable is 66l
also i am not sure if the interest and prinicpal repayments here are accounted in deductibles
Lets put aside the income tax thing for now, assuming I invest in tax saver senior citizen fd.
Also definitely I will pay the loan timely.
How were you guys claiming I need to generate returns at 20%, 13% etc... Am I missing something here ?
mamaearth IPO can be a good bet/>
leave 20%
leave that you dont clam deductibles of interest and principal repayment
your net cost is 66k in interest
your actual income after tax would be 51 k
and tax fd have a lock in of 3 yuears if i am not wrong
so your cost of breakeven would be 66k in % terms plus the tax component on your income
also check how much amount can you clain as deductible for interest paid and principal repayment
i guess its 50k for interest and 2l for principal
@the_dark_knight check this calc. It says 12.7% interest. It can be higher depending on terms. So, when you divide 12.7 by 70%(as 30% tax) you get 18.1% which is your break even earning required.
Check yourself.link to website mentioned. Also some other websites available on Google search.
Thanks to @xywowowvw for this idea to use online calculator.
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Now how are you defining this 18% break even earning.
Do you mean for total investment of 8.75lac in one year , I should be earning 18% profit on this amount by the end of yr???
yes very overvalued financials
yes
correct +
You dont have full 8.75L for the year. You will have to pay emi.
So, 78k you will have till 1 yr. Another 78k for 11 months. Another 78k for 10 months. And so on.
So if you plan to invest in fd for example, you can invest only 78k for 1 yr fd. And 78k you can invest only in 11 months fd. And so on. Somehow you have to earn average 18% min on all these fd. Hope it’s clear.
So you are assuming even if I hadn't taken this loan, I would have still invested 77k every month in fd at 9% rate? Or what we generally term it as opportunity loss?
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Even by this calculation I am able to recover all interest loan amount paid, because fd interests would amount to approx 45k by yr method, and combined with 2% cashback on 9lac bill payment it will be eventually 45k + 18k.
Request you to brainstorm and leave nothing, I will die but won't let even a rupee loss
No you understood it wrong
Please don't consider tax reduction of 30% on interest earned as I would be opening in tax saver senior citizen accountt if I go for 9% fd option
You seem on right track, pls consider all points I have mentioned and then redo your calculations please
