The TRUTH behind GOLD

Dear Blog Readers,

It has been time that we have connected and the fault lies entirely with me that I have been too infrequent in writing on my BLOG. In fact the only complain that you all, the wonderful readers of my BLOG have with me is that I do not write every week. So here is a sincere apology and I promise to be more regular on my BLOG.

In return I would request you to keep showering your blessings, questions & promise to keep writing to me as you have been doing all along.

Having said that, I would like to inform my readers that I have started a small but effective WhatsApp group by the name of “INVESTMENTZ” wherein we discuss Investment & Personal Finance related matters.

The language, as you would expect is informal & attempt is to initiate a healthy dialogue /discussion within the group wherein group members ask queries and I attempt to answer those queries in a simple but effective manner.

Many of you readers and my friends in the Media have been writing to me with queries on GOLD. I therefore decided to share some of the conversation we had on my Whatsapp Group on GOLD with you.

So here is the transcript on GOLD from our WhatsApp conversation. Again, the setting is very informal as you wud expect on such grp.

WhatsApp (Investmentz) log on GOLD:

Nirav panchmatia: Good Morning. Many of you had called me to enquire on Gold. Well let's discuss Gold Fundamentals today.

On a very basic level, GOLD Prices in India are influenced by 2 very broad factors;

1. The International Price of Gold

2. FX rate ie INR USD rate

Yes. Gold prices in India are majorly influenced by INR USD FX rate. Because India does not mine (produce) any GOLD; 99% of our Gold requirement is IMPORTED.

Now tell me if you want to IMPORT something; say you want to import Apple iPhone from US; you first buy Dollars and with the dollars you will buy iphone; same logic applies to Gold too.

Now did you know that International price of Gold has practically not moved for a 28 year period from 1980 to 2008?

Yes. Gold Price was USD 850 an ounce in 1980 and it was the same in 2008.

But in India Gold price moved drastically over this 28 year period. WHY???

Why did Gold price in India move up drastically even though it did not move an inch internationally over a 28 year period from 1980 to 2008?

WhatsApp (Investmentz) member: Due to depreciating rupee

Nirav panchmatia: Explain further...

WhatsApp (Investmentz) member: The purchasing power of rupee decreased since 1980, which leads to increase in gold prices in India.

Nirav panchmatia: 1 US Dollar is approx 57 today; what was 1 USD in 1980??? Anybody wanna guess??

WhatsApp (Investmentz) member: 15?

WhatsApp (Investmentz) member: 7-8

Nirav panchmatia: Yes. 1 USD was approx 7 to 8 INR in 1980. And it was INR 55 a year back. Now that explains the rise in GOLD prices in India. The TRUTH is that we Indians, all along have been buying DOLLARS & have been fooling ourselves that we are buying Gold.

The graphic below explains the TRUTH behind GOLD in 1 slide:

Particulars	1980	Mid-2008	Early 2012
Gold Price (USD/ounce)	$        850.00	$          812.00	$       1,772.40
% Change	-	-6%	118%
Gold Price (Rs. per tola)	Rs. 1,330.00	Rs. 12,500.00	Rs. 31,200.00
% Change	-	840%	150%
USD / INR Fx rate	Rs.         7.89	Rs.         43.50	Rs.         53.36
% Change	-	452%	23%

Nirav panchmatia: And YOU thought that you were buying GOLD all along??? How many Media reports highlight this TRUTH about GOLD???

WhatsApp (Investmentz) member: On the same line...investment expert says to invest certain amount of portion of portfolio in Gold...and given the link of gold price and fx...our portfolio wud hav exposure to currency risk even though a investor is unwilling to tak ths kind of risk...right?..

Nirav panchmatia: Gold is not an investment in the first place. It is a HEDGE against PESSIMISM. If things go bad, if economies go bad, if markets crash, GOLD shall come to your rescue.

WhatsApp (Investmentz) member: Very true

WhatsApp (Investmentz) member: Hmm....true...if economies go bad...currency wud depreciate which would increase price of gold further..and easy liquidity of gold act as a saviour..

Nirav panchmatia: When you are optimist about the future you buy EQUITY or STOCKS and Real Estate and when you are pessimist you buy GOLD. Now Time and situation is not constant hence we Financial Planners suggest that 10 to 15% of your portfolio should be in GOLD.

WhatsApp (Investmentz) member: GOLD ETF or physical gold? Which one is better if economy is not doing well?

Nirav panchmatia: That is the true reason for GOLD in ur portfolio and not as a stand- alone investment. Our ancestors preferred GOLD because it was easy to store, did not lose value, did not get oxidised , easily transferable and because they did not have better alternative like stocks and Mutual Funds.

Nirav panchmatia: I personally prefer Gold Mutual Funds or Gold ETFs because it cannot be stolen, the mutual fund co. guarantees 99.99 purity gold, and there are no making charges and it is only in GOLD Mutual Fund that you can invest monthly via SIP that too as little as Rs. 500 per month.

Does your local jeweller offer all these facilities???

WhatsApp (Investmentz) member: No global or local jewllers would offer such a facility...

Nirav panchmatia: By the way, Jewellery is not an Investment. Do you know why???

Investment, by defn is when you place your money today with the intention of getting back a bigger amt tom; so on the day of investment itself you have decided to sell it;

Can you DARE to ask your wife to give her jewellery back to you so that you can sell it???

Nirav panchmatia: Any takers?????????

WhatsApp (Investmentz) member: Sir. Is it advisable to invest in e gold in Nat Spot exchange rather than goldbees ?? considering the heavy amc charges (almost upto 1.5%)of goldbees as compared to e gold

Nirav panchmatia: Maam. Prefer investing in Gold Mutual Funds. It is better than Gold Bees or E Gold because Gold MF is the only avenue where you can invest periodically say monthly or even weekly and an amount of your choice with minimal expense ratio.

Also, since v do not know whether gold will go up or down from here, it is better to invest via SIP mode in it

WhatsApp (Investmentz) member: I have concerned about Indian currency.....continuously its depreciating against dollar...is this going to be regular scenario?...

Nirav panchmatia: Nobody knows for sure. Trust me, it is much much more difficult to predict currency movement than Sensex.

And every coin has 2 sides. A weak rs is bad for importer and good for exporter and vice versa...also, FIIs and NRIs will find it more attractive to invest in India if rupee depreciates.

WhatsApp (Investmentz) member: But i guess weak currency or depreciating currency is not good sign for econony

Benefits you are talking about are correct...Plus n minus points r thr

Nirav panchmatia: Economists are confused about that too. It is not a very easy conclusion to draw. Many leading economists believe that a weak currency is actually good for the economy. The author of Breakoutnation and Head of Morgan Stanley Mr. Ruchir Sharma believes so.

WhatsApp (Investmentz) member: Could you provide link to the article of head of MS...i want to read the points tht he puts forward to support his opinion

Nirav panchmatia: Read his book BREAKOUT NATIONS

WhatsApp (Investmentz) member: One more question on Gold. I guess Gold Mutual Funds are funds that are invested in equities of  companies which are involved in mining etc of gold or other precious metal.. while funds like goldbees invest in gold....am I correct?...

Nirav panchmatia: No. Gold mutual funds buy physical gold. Those funds that invest in gold mining companies are of the nature of Fund of Funds and are actually similar to Equity Sectoral Funds as they invest predominantly in Equity of Gold Mining companies. So strictly speaking, they cannot be called gold MFs.

Nirav panchmatia: When you buy gold MF you get exact exposure to gold as if you are actually buying physical gold

WhatsApp (Investmentz) member: Okay...that answers my query Nirav. Thanks.

WhatsApp (Investmentz) member: Can you pl name one such gold mutual fund to cite an example

Nirav panchmatia: HDFC Gold Fund, SBI Gold Fund, Reliance Gold Fund; there are 7 to 10 such funds. They do not differ in performance much as they are all supposed to track the exact price of 99% purity Gold in India. What might differ is their Expense ratio. So choose a Gold Mutual Fund that has the lowest expense ratio & min. tracking error.

Also, Crude prices and gold price increase results in rupee depreciation to a large extent as these are India’s 2 biggest imports. This is 100% true. So govt is right in levying import duty on gold. Indians, pls stop buying more gold. V Indians r collectively getting poorer compared to other nations as v keep buying more gold and consuming more fuel.

Dear Readers, hope you liked & benefitted from the above conversation.

As always, shall eagerly await your comments/criticisms/opinions. As that is what keeps me going.

SOUND INVESTING…

 QUOTE of the DAY:

EQUITY (Stocks) is the new gold…

CRISIL report confirms my view on Tax saving Mutual Funds (ELSS)

Great!!! I now have the backing of India’s leading credit rating agency CRISIL confirming my view that Tax Saving Mutual Funds, also known as ELSS, are an Investors best bet as far as Tax Saving Investments are concerned. The investors favourite, PPF & NSC, have been beaten black & blue by good ELSS funds over a 10 year period, as per a recent report published by CRISIL.

So all those articles that I have written on Tax Saving Mutual Funds or ELSS have not gone in vain.

Here is the list of my previous articles on Tax Saving Mutual Funds; in fact, my latest article titled “Invest and therefore save tax and not vice versa” was published by me a few weeks back on this BLOG and sums up and provides links to my previous articles on Sec 80C and tax saving investment options…

Some of my articles on ELSS or Tax Saving Mutual Funds:

No.	Article Heading	Link to the article
1	Invest and therefore save tax and not vice versa	http://niravpanchmatia.blogspot.in/2012/03/invest-and-therefore-save-tax-and-not.html
2	Death and Taxes	http://niravpanchmatia.blogspot.in/2010/09/death-taxes.html
3	4 Strong Reasons to Invest in Tax Saving Mutual Funds	http://niravpanchmatia.blogspot.in/2011/03/3-strong-reasons-to-invest-in-tax.html
4	Tax Saving Mutual Funds: Grab them with both hands	http://niravpanchmatia.blogspot.in/2010/09/tax-saving-mutual-funds-or-elss.html

CRISIL, India's leading credit rating agency, carried a detailed analysis of various tax saving options available based on past 10 years performance & it confirms that ELSS or Tax Saving Mutual Funds are better that most other tax saving avenues like PPF or NSC

over a 3 year and more important a 10 year investment horizon....

Here are the links to CRISIL’s report in India’s leading business dailies:

Business Daily	Article Link	Article Heading
The Economic Times	http://economictimes.indiatimes.com/personal-finance/savings-centre/savings-news/elss-better-investment-option-than-ppf-nsc-crisil/articleshow/12430151.cms	ELSS better investment option than PPF, NSC: Crisil
Business Standard	http://business-standard.com/india/news/elss-better-investment-option-than-ppf-nsc-crisil/161624/on
The Financial Express	http://www.financialexpress.com/news/elss-better-than-ppf-nsc-crisil/929093/2	ELSS better than PPF, NSC: Crisil
Indian Express	http://www.indianexpress.com/news/elss-trumps-ppf-on-returns/916999/0	ELSS trumps PPF on returns
Moneycontrol.com	http://www.moneycontrol.com/news/mf-news/elss-better-investment-option-than-ppf-nsc-crisil_686054.html	ELSS better investment option than PPF, NSC: Crisil

Snippets from some of the above articles worth reading and pondering on:

Indian Express put it very nicely:

A penny saved is a penny earned. In the long run, those who follow this simple yet very powerful principle would probably be more financially sound than those who don’t. And those who go one step further by not just “saving” but “investing” in appropriate asset classes and products would likely benefit all the more.

Equity Linked Savings Schemes (commonly known as ELSS schemes or Tax Saving Mutual Funds) offered by mutual funds combine these two principles to create a product that not only help investors to save tax but also has the potential to help build wealth in the long run. However, ELSS funds differ from most of the other tax saving investment instruments in terms of their risk-return characteristics and for that reason, many investors tend to prefer traditional tax saving investments over ELSS funds.

Like most equity funds, ELSS funds also tend to be volatile in the short term but have the potential to help investor generate wealth in the long run. Their wealth generation potential along with the compulsory minimum investment period of at least three years makes it a great investment option for investors looking to benefit from tax deductions under Section 80C.

As per a study carried out by Fidelity Worldwide on Indian Tax Saving Mutual Funds, Rs. 1 lakh invested in ELSS funds on an average would have grown to Rs. 3,23,036 in a five-year time-frame whereas the same amount invested in PPF or NSC would have grown to just Rs 1,49,120 and Rs 1,50,317 respectively. It was also interesting to learn that more than three times out of five, ELSS funds outperformed PPF by over 10 per cent on an annualised basis.

Economic Times quoted CRISIL and said:

The PPF accounts fetched 8.12 percent over the last 10 years and in the similar period, the NSC gave an interest of 9.10 percent. The average inflation over the past 10 years stood at 6.05 percent. 

As per CRISIL analysis, Tax Saving Mutual Funds or ELSS gave 26 percent and 22 percent annualised returns over three and 10 years respectively vis-a-vis 8 to 9 percent offered by traditional tax saving investment products such as public provident fund (PPF) and national savings certificates (NSC).

ELSS is not only an attractive option to save tax, but also helps create wealth over the long run. ELSS as a category has outperformed the Nifty 500 across three and 10 years. With average inflation around 7 percent over the past three years, top ranked ELSS gave an inflation adjusted return of 14 percent, which is significantly higher than returns offered by other tax saving products.

Crisil, however, cautioned that the ELSS investment requires some amount of market risk and had to cherry pick those schemes which have performed consistently well. 

Since investments in ELSS are subject to market risks, investors must take into consideration their age and risk-taking abilities. The investment horizon should be more than five years for higher inflation-adjusted returns. 

Further, investors must choose funds that have performed well both in good and bad times.

Business Standard says:

Though the traditional debt products like PPF & NSC are considered to be relatively safer bet as they are not affected by volatility, they are unable to generate higher inflation-adjusted returns in the long run.

The PPF accounts fetched 8.12% over the last 10 years and in the similar period, the NSC gave an interest of 9.10%. However, the average inflation over the past 10 years stood at 6.05%. So post-inflation returns of PPF & NSC are not at all attractive which is not the case with ELSS.

To sum up:

So, based on the CRISIL Report and what various leading business dailies in the country have quoted, if one has to put it in a tabular format:

ELSS Returns v/s PPF & NSC post inflation

Tax Saving Investment option u/s 80C	10 year Annualised returns as per CRISIL report	Average Inflation rate assumed	Post Inflation rate per annum
Top ranked Tax saving Mutual Funds or ELSS*	22% per annum	7.0% per annum	14% to 15% per annum
PPF	8.12% per annum	7.0% per annum	1.12% per annum
Employees Provident Fund (EPF)	8.25% per annum*	7.0% per annum	1.25% per annum
NSC	9.12% per annum	7.0% per annum	2.12% per annum

*going forward; Source: Crisil Report

A few words of caution here:

1.     As of today, there are more than 35 ELSS or Tax Saving Mutual Funds in existence today. If you have to invest Rs. 1 lac under section 80C in ELSS funds, you should invest in 1 or 2 ELSS funds.

Which ELSS funds will you chose? My advise is that an Investor should either himself do a thorough research while choosing a good ELSS fund or take help of a Financial Planner or a  Mutual Fund Expert / Advisor (not the typical commn agent; hope you know the difference by now).

2.     Even though Tax Saving Mutual Funds require you to stay invested for 3 years, for the sake of safety, keep a 5 years investment horizon

3.     Go for dividend payout option rather than a growth option for your ELSS funds…

4.     Keep visiting this BLOG for further inputs…

HAPPY TAX INVESTING!

Subbu liquid fund ke bare main nahin jaanta hai

You must have seen or read about this wonderful advertisement appearing since december on TV as well as print media...

“SUBBU SAB JAANTA HAIN”....

It is an advertisement by Kotak Mahindra Bank intending to attract money in it's savings bank account on which it recently increased the interest rates from 4% per annum to 6% per annum. And their pitch is that do not see it a mere 2% increase but look at it as 50% increase over & above what you were getting on your savings bank account earlier...(a 50% increase from earlier 4% per annum to now 6% per annum)

I want you to see this advertisement first before we proceed with this article...

http://www.moneycontrol.com/news-topic/kotak-50/video-kotak-mahindra-bank---subbu-sab-jaanta-hai---laughmp4_U2cSYfnZyDE.html

I don’t know about you but I kind of like this guy SUBBU….

What a wonderful way to explain the concept….

Only caveat is that SUBBU needs to take some financial literacy lessons from Financial Planners like me so that he becomes wiser… let me explain…

Now advertising on TV and other print media is not cheap....

A one minute clip on TV and half page advertisement in leading biz dailies like The Economic Times and Business Standard by Kotak Bank to advertise the simplest of all products, the Savings Bank Account seems a bit tricky…

Somewhere, the top management at that bank believes that 6%pa is an attractive rate of return good enough to lure the depositors to park their idle cash with them rather then your existing bank, which in all probabilities is still giving you a mere 4% per annum on your Savings Bank account ....

Now, if Kotak and some other banks believe that offering a 5 or a 6 % on it's savings bank a/c is good enough to attract depositors money, so much so that it worth spending lacs on TV & Print media…then there might be some truth behind it…and why not, if I am getting 2% extra, I will go there…after all, as SUBBU says, look at it as 50% more…

Now, let us visit the BASICS first…

What is a “Savings bank a/c” and why do we keep money there...

Well, you and I keep that portion of our money in the saving bank a/c that we have as a surplus, that we have not spent but which we think we might need in a foreseeable future...but we are not sure when we might need that money…

So we keep our idle money in a savings bank account pending further use... Why do we not invest this money...

Because we might need it any time...therefore it's better to keep it idle in a savings bank account then to invest it somewhere where it might become difficult to withdraw it when the need arises...

So , as far as our savings bank money is considered, we give preference to LIQUIDITY over RETURNS...

And by the grace of God, the returns on Savings bank account have also become attractive now... Alas, one good news that 2011 had to throw us...

The Reserve Bank of India (RBI) announced a deregulation of the savings bank deposit interest rate in its second quarter monetary policy review some time back. This means banks are now free to determine the interest rates on their savings accounts. Before the deregulation, banks were supposed to give a flat 4% per annum on savings accounts.

I expect savings accounts interest rates to go up in short term due to competition among banks to acquire these low-cost deposits. The interest rates are expected to be higher for deposits of more than Rs 1 lakh. But this will hold true as long as the interest rates in the economy are high…Once RBI starts reducing the interest rates, this golden period might also come to an end…

So since last few months of 2011, you would have come across advertisement by some banks highlighting the increased savings bank account interest that they would have begun offering to their customers compared to  the 4% per annum that other banks are offering...

After the recent deregulation of savings bank account interest rates by RBI, at least three banks have hiked their interest rates till date.

Yes Bank was the first one to raise the interest rates on savings account with all balances to 6%, and this was followed by Indusind and Kotak bank announcing interest rates hikes on their savings accounts too. Others might follow too…

To start with, these are the three/four banks that have announced a hike in their interest rates.

S.No.	Name	Under Rs. 1 lakh	Over Rs. 1 lakh
1	Yes Bank*	6.0%	6.0%
2	Indusind Bank	5.5%	6.0%
3	Kotak Mahindra Bank	5.5%	6.0%
4	Karnataka Bank	5.0%	5.0%

Source: Internet; data as on Oct 31^st, 2011

Now why are these banks offering more to it's savings bank customers and also spending lacs of rupees advertising the same... Is it not a loose- lose situation for them...

First increasing their cost of fund by offering 50% more and then heavy spending on advertisement,

And the answer is No... Because money that we keep in our savings bank account is the cheapest source of funds for any bank... Even at 6% it is by far one of the cheapest ...

So they are not doing a favour to you and me by offering 2 % more but they are actually getting a very cheap source of money from us...But there is nothing wrong on their part either....this is how a bank is run..

And SUBBU s right when he says that do not look at it as 2% extra but look at it as 50% more...(6% is 50% more than 4% that was earlier being offered by all banks to its savings bank customers)

But there is one thing that SUBBU is either not aware of or that he is hiding from us...

(in fact, since I have developed a liking for Subbu, I would like to believe that SUBBU is plain ignorant but he is honest)

Ever thought where do banks park their surplus funds... banks, as per banking regulations are not allowed to lend all their money to us… So if banks are not allowed to lend all their money and as a rule if banks are supposed to have LIQUIDITY at all times, where do banks PARK (as against INVEST) their surplus or idle funds....

·         Because like you and me, LIQUIDITY is of primary importance for a bank too...

·         And a Bank does not have access to a savings bank type product like you and me...

·         So a  bank would like to PARK it's money in a product where it can withdraw money at will at very short notice and yet earn more than the 5 or 6 odd percentage that it is offering to it's savings bank customers...

Among the 2 to 3 options available to a bank to park it's short term money,Liquid funds offered by Mutual Funds is one…

Now, just think for 2 minutes....

A bank needs to fulfil 3 criteria before it can park it's short term money:

1.      The investment avenue should b safe, very safe, as a bank cannot afford to take risks with its short term money

2.      The liquidity should be good ie; a bank can withdraw money at a day or 2 days notice

3.      The bank should earn returns good enough to compensate for the interest rate it is offering its customers on its savings bank or Equivalent products...how will it make money otherwise…

So, if banks are using Liquid funds to park their money, rest assured it fulfils all of the above mentioned criteria of SAFETY, LIQUIDITY and attractive RETURNs as far as short term funds are concerned...

Now, can YOU & I invest in LIQUID funds, banks favourite products for parking it's short term money....

The answer is YES....

Do we get the similar returns as to what a bank earns from liquid funds?

The answer is YES...

Then why are we, the lay people,  not using LIQUID FUNDs as a safe, sound instrument to PARK (and not INVEST) our short term funds and leaving it idle in a savings bank account for months together earning a meagre 6% per annum, 5% per annum or in most cases 4% per annum? (and mind you this was 3.50% pa earlier)…

The only answer that comes to my mind is sheer IGNORANCE...

Either you have not heard about this wonderful savings product or you have heard about it but not considered the proposition seriously...

I do not blame you for the same… Since time immemorial we have been using a SAVINGS BANK A/C as the only and only place to keep our idle, temporary , short term money… so what if it was earning 3.5% per annum earlier and is now earning 4 to 6% per annum…

At least our money is safe and you might need the money any time…

After all, we are not supposed to invest all our surpluses…we need to have spare cash with us for emergencies or unforeseen events…

But if banks (where we so comfortably park our excess cash) think LIQUID Funds are safe and liquid and remunerative enough then it would be sheer ignorance on our part not to consider this wonderful instrument that offers avenues for parking our short-term, temporary funds…

Just imagine, an instrument where you can park your money for short term (for a time period as short as a couple of days), that offers liquidity so that we can withdraw money at will (at 2 working days notice ) and yet it earns an annualized return in the range of 7 to 8% per annum...practically risk-free…(remember, banks will not park their money where they are not safe)

Yes, well chosen liquid plus funds are currently offering anywhere between 7 .50% to 8.00% per annum, risk-free &

 YES again, you can withdraw this money on 2 working days notice…&

YES again, your money is as safe as it was in a bank account provided you choose your fund carefully or take professional advice…&

YES again, you can withdraw your money, that you had parked in Liquid Funds,

 either at one go or in multiple instalments, as you please…

What a wonderful proposition indeed…

Why keep even small amount of money idle in a savings bank account earning a 4%, 5% or in a few rare cases 6 % per annum return when today, we are getting upward of 8% per annum annualised returns on LIQUID FUNDS offered by Mutual Funds...virtually risk-free

Now SUBBU will agree and if he is honest enough, which I believe he is, he will admit that if a “Liquid fund” is offering 7.50% per annum to 8 % per annum currently, and at the same time not compromising either on the SAFETY of your funds or on LIQUIDITY, it is a very very attractive avenue for parking our idle funds that we might need anytime…

After all, a good LIQUID Fund is offering a COOL 25% more than the best savings bank rate being offered by any major bank in India (7.50% of liquid fund is 25% more than 6%, the highest  interest rate being offered by any bank on savings a/c) and a cooler 100% more than what most banks are currently offering (8.00% of liquid fund is 100% more than 4%, the  interest rate being offered by most banks on savings a/c)

Now have a look at the graphic below...

 Last 1 year actual returns from some Liquid+ Funds

No.	1 year return (% pa)*	Expense Ratio (%)	Returns post expenses  (% pa)
1	9.62%	0.37%	9.25%
2	9.40%	0.25%	9.15%
3	9.34%	0.35%	8.99%
4	9.14%	0.35%	8.79%
5	9.29%	0.63%	8.66%

Now, the above table shows post expenses actual returns realised from some of the Liquid Plus Funds over the past year….

As you can see, the actual returns earned by some liquid plus fund over the past year are well above 8.50% per annum…but the reason I am saying that one can expect 7.50% to 8.0% pa going forward is because RBI is expected to decrease the interest rates going forward…but even in that scenario, it is a very attractive proposition…

And mind you, it's the likes of kotak, Indusind & Yes bank that are offering 5 to 6% per annum on savings account and that too now when the interest rates are at their peak...these banks are bound to decrease the interest rates on savings bank a couple of months later when RBI starts decreasing them…

Also, Most of the banks have not yet increased the interest that they are offering on Savings bank account...they continue to offer4% per annum on Savings bank accounts…

So SUBBU, an 8% per annum on Liquid Funds, where your very bank is parking our money, is a COOL 100% more than 4% being offered by most banks & a cool 33.33% more than what your bank is offering us on our money…

Why don’t you consider shifting your money from your bank a/c to Liquid Funds…

I shall await your reply SUBBU…and shall also look forward to your next pitch…

What did you say, you do not have access to a Financial Planners services…

Oh dear, do not worry, I am always there for you SUBBU… call me any time in case of any query that you might have regarding Savings & Investments or for that matter any financial product…

No, do not worry; my Advisory Fees are very nominal, they will be very light on your pocket…

No SUBBU, I will not tell anyone that you take advice from me before giving it to others…

…after all, I am your fan too…

Have a nice day SUBBU….

                     

Thought for the day

Don’t SAVE what is left after spending,

SPEND what is left after saving…