Need advice on where to invest 8.75lakh for guaranteed high returns

[RAMESH BABU N]

NEVER TAKE A LOAN

1. TO Invest in the stock market
2. TO Buy assets you don't need
3. FROM anyone other than your family
or employer

Being a Banker with 40 yrs of experience, I have only the above 3 points to make.

 

[Tosh]

No offence but I feel OP has convinced himself that it is a sane decision that he has made. There is no tax, no opportunity cost and a safe guaranteed return generating instrument available out there without any sort of lock-in that can give him enough return so he can come on top after paying all the EMIs.

I actually feel so good that there are people here who are investing thier time and efforts to make him realise how difficult it is to generate wealth from this.

A piece of advice from me would be to take such loans only when you have an 'asset' you can purchase with it. The yield need not necessarily be more than your interest rate in short term if it's providing some sort of security in the long run. if arbitrage was this easy many of us would be millionaires by now.

Better foreclose the loan if you don't require the amount and chalk up the expense in lessons learnt account. I would have suggested derivatives but unless you have some understanding of that segment it is better to stay away no matter how lucrative the returns are.

Also do not put your money in a place where there is captial risk if you want to sleep peacefully for next 1 year. Anyways I will let the experts continue just wanted to share my two cents after going through this thread

 

[Deathsnatcher]

NEVER TAKE A LOAN

1. TO Invest in the stock market
2. TO Buy assets you don't need
3. FROM anyone other than your family
or employer

Being a Banker with 40 yrs of experience, I have only the above 3 points to make.

And being a newbie i can tell you all your points are valid and accurate
But regarding point 3 - You wont take a loan if your family have money .

 

[sxchzy]

now if OP doesnt want to foreclose the loan look for safer assets yielding 15-18% irr and learn how they work and what losses could occue out of that
and if it fits in yourrisk appetite invest otherwise foreclose it

 

[RAMESH BABU N]

My suggestion to OP is
CLOSE THAT LOAN.

You are already in 30% tax bracket. Not worth any FD.

AVOID hair-splitting of how much you pay or how much you earn and the effort Vs net yield.

Experiment with your spare/saved money. Never with a loan.

 

[rajat30]

bhai crypto me daal de

images shared are only for humour. please study the offer documents carefully before investing

 

[neo.puneet]

images shared are only for humour. please study the offer documents carefully before investing

naam me hi maal hai babu bhaiya

 

[RAMESH BABU N]

images shared are only for humour. please study the offer documents carefully before investing

On a lighter note....

Then, the OP will pay not only the interest... But, the principal too.... With only virtual assets in his name and Nirmala Sitaraman busy in looking for Crypto investors with a magnifying glass.

 

[the_dark_knight]

On a lighter note, what is meant by OP ? And how much about OP is known to you guys...

 

[the_dark_knight]

NEVER TAKE A LOAN

1. TO Invest in the stock market
2. TO Buy assets you don't need
3. FROM anyone other than your family
or employer

Being a Banker with 40 yrs of experience, I have only the above 3 points to make.

Agreed point 1 & 2
But not point 3

 

[sxchzy]

On a lighter note, what is meant by OP ? And how much about OP is known to you guys...

op is original poster

 

[the_dark_knight]

When one person boards a running train without ticket, others see an opportunity and follow him.
This is what has happened here with this thread taking a different turn.
I have my personal reasons for taking this loan, and there is a reason this loan is termed personal. I need not justify my reasons here.
Till the time I don't need to liquidate for the time being, (but will need it for sure, otherwise no one is a fool to take a loan of 8.75lac), I am exploring investing opportunities meanwhile.
And I have enough capital to experiment things from my savings as well.
Now you might argue, if you don't need it immediately why you took it, you might take it later? Let me tell you this loan was offered at a low interest rate and 0 processing fee and limited time festive offer. I am okay if I have to take a marginal minute loss here since i timed this loan a little earlier.

Even midway in the thread, I requested to drop this foreclose discussion, why are the same people adamant about proving I am making a loss?
Lets end this foreclosure discussion once and for all.

 

[RAMESH BABU N]

When one person boards a running train without ticket, others see an opportunity and follow him.
This is what has happened here with this thread taking a different turn.
I have my personal reasons for taking this loan, and there is a reason this loan is termed personal. I need not justify my reasons here.
Till the time I don't need to liquidate for the time being, (but will need it for sure, otherwise no one is a fool to take a loan of 8.75lac), I am exploring investing opportunities meanwhile.
And I have enough capital to experiment things from my savings as well.
Now you might argue, if you don't need it immediately why you took it, you might take it later? Let me tell you this loan was offered at a low interest rate and 0 processing fee and limited time festive offer. I am okay if I have to take a marginal minute loss here since i timed this loan a little earlier.

Even midway in the thread, I requested to drop this foreclose discussion, why are the same people adamant about proving I am making a loss?
Lets end this foreclosure discussion once and for all.

If that is final, the only option is to look out for BETTER FD rates from new SFBs - small finance banks. Like Equitas or AU or Fincare or Bandhan....
SFBs give slightly better rate than PSU banks or leading private banks.

 

[the_dark_knight]

If that is final, the only option is to look out for BETTER FD rates from new SFBs - small finance banks. Like Equitas or AU or Fincare or Bandhan....
SFBs give slightly better rate than PSU banks or leading private banks.

Yes sir I am aware of this, alread written in my first post...
Some ppl took this thread in a complete new direction and now anyone new joining seems OP doesn't have any idea of what he is doing

 

[the_dark_knight]

finally someone who can make him understand

41k is not a significant amount for me.
Also, I knew about this opportunity loss and tax implications before getting this loan, no nothing surprising to me here..
I have paid tax on my fd interest last year too so well aware abt this fact.
Btw, at what interest you calculated this 41k opportunity cost? Bcoz as per mine calculations, it all evens out at the end (check my prev post), plus ofc the added benefit of having a lumpsum money at my disposal

Just wasn't aware abt the other investing instruments that can generate high returns short term in a year or so...
Hence this thread is for this sole purpose.
Not to take advice on whether I did the right thing to take this loan or not.

 

[the_dark_knight]

dm me for refferal if you decide to invest in it
i have invested 25 lakhs so far so good

okay sure, i will decide on investing little later

 

[the_dark_knight]

Agreed point 1 & 2
But not point 3

Agreed on point 4 - never take a loan from employer.

 

[RAMESH BABU N]

Agreed point 1 & 2
But not point 3

You have not understood point 3 correctly.

Agreed on point 4 - never take a loan from employer.

You have mis-understood it. Again missing the same point.

In simple terms, it means that
You CAN TAKE from your family and
You CAN TAKE from your employer.

Because, both give you a loan on "welfare terms". You get benefits on these terms.

All others give you a loan on "commercial terms" on which you don't. On the other hand, you pay much more, than what you get.

 

[Lobogris]

41k is not a significant amount for me.
Also, I knew about this opportunity loss and tax implications before getting this loan, no nothing surprising to me here..
I have paid tax on my fd interest last year too so well aware abt this fact.
Btw, at what interest you calculated this 41k opportunity cost? Bcoz as per mine calculations, it all evens out at the end (check my prev post), plus ofc the added benefit of having a lumpsum money at my disposal.

If 41k is not a significant amount, then why worry about making 10 or 20k more or less and ponder over so many investment options? Simply put it in an FD and be done with it, Do what you like, there will be a loss on it. Do you really think a large bank, whose business is making money on loans, having decades of experience and access to thousands of top experts in the field, doesn’t know how to structure a loan and that you can beat it? Look at it this simple way: Your rate of interest is 11% ( likely even more as you are almost certainly trying to show it in the best light possible). So let’s assume you are paying 11% on reducing balance. Now, the best recurring deposit you can make will pay around 7 to 7.5%. That difference between the rates as well as processing fee is your loss.
Recurring deposit is exactly same as a reducing balance loan. On one you start paying interest on full amount for 1st month and then it goes down. Let’s assume 1 lakh for 10 months. You pay interest to bank on full 1 lakh for 1st month, then on 90k and finally on just 10k for the last month. In a recurring deposit, you get interest on just 10k for the 1st month, then 20k for 2nd and finally on full 1 lakh for the final 10th month. Simply the reverse but exactly the same financially. So just check that out. You are paying 11% (likely 13 or 14) and can only get 7% for your deposit. That’s your loss. No way to argue here. You can’t make a FD as you can’t keep that money for a full year. You need to pay back each month. Believe me, I have done it myself.

 

[thanix]

When one person boards a running train without ticket, others see an opportunity and follow him.
This is what has happened here with this thread taking a different turn.
I have my personal reasons for taking this loan, and there is a reason this loan is termed personal. I need not justify my reasons here.
Till the time I don't need to liquidate for the time being, (but will need it for sure, otherwise no one is a fool to take a loan of 8.75lac), I am exploring investing opportunities meanwhile.
And I have enough capital to experiment things from my savings as well.
Now you might argue, if you don't need it immediately why you took it, you might take it later? Let me tell you this loan was offered at a low interest rate and 0 processing fee and limited time festive offer. I am okay if I have to take a marginal minute loss here since i timed this loan a little earlier.

Even midway in the thread, I requested to drop this foreclose discussion, why are the same people adamant about proving I am making a loss?
Lets end this foreclosure discussion once and for all.

One more suggestion - Please see whether you can deal in real estate on a under construction property and during completion and registration whether you can sell it to some one else making a profits (Pay only down payment now and remaining on completion). Many builders facilitate it in hot markets like Bangalore or Hyderabad. But this carries very high risk and consider only if you are thinking taking those type of risks.