Where would you invest if you had extra money
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Is anyone aware of NRO FIXED DEPOSITS in India ??? What are the limitation & rules ?
I am trying to figure out how it is & how will it work. But as usual I am starting from the scratch as I am myself not that much aware of this financial terms.
I have seen banks giving more than 9% interest rate annually for more than 1 year Fixed deposits under this schemes.
http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_rates.htm" target="_blank">http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_rates.htm</a>
Here is the link to Indian ICICI bank NRI interest rate webpage. It surely has to have some limitations or some kind of tricky scheme for NRI's. If someone has some information can you please participate & share that with us.
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i..........rock........!!!!!
Quote:
Originally posted by irock
Is anyone aware of NRO FIXED DEPOSITS in India ??? What are the limitation & rules ?
I am trying to figure out how it is & how will it work. But as usual I am starting from the scratch as I am myself not that much aware of this financial terms.
I have seen banks giving more than 9% interest rate annually for more than 1 year Fixed deposits under this schemes.
http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_rates.htm" target="_blank">http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_rates.htm</a>
Here is the link to Indian ICICI bank NRI interest rate webpage. It surely has to have some limitations or some kind of tricky scheme for NRI's. If someone has some information can you please participate & share that with us.
Limitations? --
1. Only funded with INR. If you are depositing from overseas, you need to convert your $ to INR in your NRE account and then transfer that amount to NRO.
2. Once converted and invested, the principal amount in your NRO CANNOT be repatriated back to your overseas account (officially), though the interest can be.
3. TDS 33.99% on interest earned.
4. The interest income needs to be declared on your overseas income tax return, may be taxable.
The more flexible (non taxable in India) options are the NRE and FCNR accounts, but the interest rate in very low...
It may be a good option if you are planning to retire in India in future and do not intend to declare it in your Canadian IT returns..
....There is an option that you can fund your overseas expenses like childrens education or you own living expenses from this account, upto max of USD 1 Million per year, but I am not sure if that is only for Interest earned or for the principle as well....
Good luck.
I am not an accountant or an investment expert, so please pardon my errors if any in understanding the above.
Hiren
Quote:These rates are for NRO accounts.
Originally posted by irock
http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_rates.htm" target="_blank">http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_rates.htm</a>
Here is the link to Indian ICICI bank NRI interest rate webpage. It surely has to have some limitations or some kind of tricky scheme for NRI's. If someone has some information can you please participate & share that with us.
Probably not much use to you.
These rates are following the interest rates trend in India, I assume.
9% is not unusual given that inflation is running amuck there.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: carl sagan's universe
Posted on: 26-08-08 22:25:15
Howdy PratickM,
What's your take on 2nd mortgages? I have found that this gives me consistent returns, more than 7% annualized over even a 6 month period.
Quote:You mean take out an equity-only mortgage on your home?
Originally posted by investpro
Howdy PratickM,
What's your take on 2nd mortgages? I have found that this gives me consistent returns, more than 7% annualized over even a 6 month period.
And do what with the money?
Unless you mean take that money, invest it and take the tax credit.
Please clarify.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
I do believe the money could be invested in various funds from high risk to lower risk. Making anything less than 7% is not enough since it will be better putting it in mortgage saving yourself 5% with no tax whatsoever. The only problem is you can not use the money for some thing else unless get it back out as line of credit which then carries higher interest than actual mortgage.
Investing in any other currency is way too risky considering inflation.
Quote:That depends on your marginal tax rate.
Originally posted by bc2on
I do believe the money could be invested in various funds from high risk to lower risk. Making anything less than 7% is not enough since it will be better putting it in mortgage saving yourself 5% with no tax whatsoever.
7% may not be enough if you are in the high tax brackets.
Regardless, I think 7% (or more) is a very aggressive expectation for a 3 year investment.
There are periods of time in the stock market when 7% or more is possible (such as the high-tech bubble between 1998 - 2001, or the financial and resources rally in the TSX until last year).
But all indications are that we are in a bearish market right now, or plateaued at best.
How can anyone be sure that the Canadian or US stock markets are going to return 7% within 3 years?
Indications are quite to the contrary.
You will have to take a significantly high risk to achieve 7%, such as small caps, emerging markets, etc. and have to do a lot of research to pick winners in those areas.
I can see you burning midnight oil doing that research.
If you go with mutual funds, you will lose anywhere from 2% to 3% in fees.
You could do ETFs in those sectors, but then you are in for a roller-coaster ride.
3 years time frame is not enough for such type of investing.
Quote:eh?
Investing in any other currency is way too risky considering inflation.
Canadian currency is one of the strongest right now.
Why would you bet on any other currency in the short term?
If you don't hedge your foreign investments against currency fluctuations in the short term, you could lose most or all of your returns.
For longer term, hedging may not be worth it, esp. if you believe the USD will once again become a strong currency.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
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