The “Way-2-Wealth”- Bennet Paes From early times Indians have embraced the bank as the safest pillow to rest a head on. They just deposited their money under it and dreamt of a mountain . The banks did wake them up, but only to mornings of molehills. Even that was thought good enough to live comfortably. Today the tax-man wakes you up before the bank does, and‘inflation’ too vies for a place to worry about. As a result, even that molehill crumbles like in a tsunami scenario. Time has now come to adopt a more proactiveinvestment approach. In light of the baggage of tax and inflation, there is a need to reassess the value of fixed deposits in one’s portfolio, so as to wake up a little richer. If the appetite for profits will allow a little push at innovation, a part transition to market-linked instruments, like Stocks and Mutual Funds (MF’s) can bebest attempted to maximize returns on investment. In a burgeoning Indian economy, a step above the traditional ‘fixed deposit’ is not likely to be considered misplaced. The banks are buzzing with slogans of “Wealth Management”and a plethora of pillows to put your money under. But let’s stick to our old ‘fixed deposit’ syndrome and throw up a challenge to the screaming Wealth Managers. Here’s how: 1.Deposit Rs.5 lacs (or any affordable capital) say, for 10 years in your bank or in abank that boasts of a Wealth Manager, at the prevailing compounded rate of interest. 2. Take a loan against 50% of the deposit, at a rate of 2% more than the said interest on deposit (if that is the prevailing markup) 3. Invest 25% of loan amount in Stocks, 25% in Commodities and 50% inMutual Funds. 4. Time frame for Investments, Choice of Stocks, Commodities & MF’s upon recommendation of the bank’s Wealth Manager, and your own risk appetite. 5.Insurance – an option, in consultation with Wealth Manager. 6. Amount of Fixed Deposit – solely at your discretion. 7. Investment modes, in consultation with and advice of the Wealth Manager. At worst, this exercise should fetch a cumulative return comprising the capital, the total intereston deposit, plus 2% more on the borrowed amount. At best, look for the sky. That’s the simplest way to create wealth from under one’s own ‘pillow’, and the simplest challenge to your bank and its Wealth Manager. Let them prove their worth – and yours, too. [Non-text portions of this message have been removed] [Non-text portions of this message have been removed] __._,_.___ Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (1) Recent Activity: Visit Your Group Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use • Send us Feedback . __,_._,___
