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FD VS BF
- 1. Balanced Fund vs FD
- 2. 3 YEARS BANK FD RATEs Bank Rate Bank type RBL BANK 8.5% Indian Private Sector Bharat Bank 8.5% Public Sector Bank Kotak Mahindra Bank 7.5% Indian Private Sector State Bank of India 7% Public Sector Bank RBI Has given License to all These banks HNI Father Son 1 Son 2
- 3. BANK FD HAVE ANY RISK? If NO.... Than ● Why every bank have different interest rate? ● How much RBI give guarantee against FD? ● Whom bank will land our FD Money? ● How much bank earn on your FD Money?
- 4. Let's Understand Practically IF I Do 15Lacs Bank FD @ 8% Interest Rate Bank Have your 15 Lacs 35% KEEP with RBI Amount: 5Lacs REPO CRR SLR Etc.. 65% Money Can us for Earn Higher Returns Amount: 10Lacs Retail Loans Corporate Loans 5% 16-18% Total Bank Earn On my Capital 13% Approx To Earn higher interest Banks give Loans To less credit worth companies
- 5. Returns Distribution of Bank FD Total Returns 13% Bank give to FD Holder 8% Bank will Earn 5% FD Holder 8% Tax 2.5% Return after TAX 5.5% Bank Margin Govt TAX Your Returns
- 6. Balanced Fund Invest......... IF I invest 15Lacs in Balanced Funds Balanced Fund 15 Lacs 35% Invest in DEBT Instrument Amount: 5Lacs 65% Invest in Good Qualities Equity Amount: 10Lacs Total Returns In Balanced Fund 13% Approx
- 7. Returns Distribution in Balanced Fund Total Returns 13% Bank will Earn 0% Tax 0% Return after TAX 13% Bank Margin Govt TAX Your Returns
- 8. Income from Bank FD FD Amount Interest Rate Yearly Interest Income Monthly Interest Income Tax @ 10 On Int. Income Tax @ 20 On Int. Income Tax @ 30 On Int. Income 15 Lacs 8% 120000 10000 12000 24000 36000 Income from Balanced Fund Investment In BF SWP @ Yearly Will Get Monthly Will Get Tax @ 10 Tax @ 20 Tax @ 30 15 Lacs 8% 120000 10000 0 0 0 Also You will get Capital DOUBLE (30 Lacs+) if Stay Invested for 10Yrs plus. +
- 9. 15,00,000/- INVESTED FOR 10 YEARS *10% TDS is applicable on interest amount more than 10000/- per year. **Longterm capital gain: if the holding period of mutual fund exceeds 1 years, than it is categorized as long term asset and there will be no tax at the time of redemption of mutual fund units. LTCG is tax-free for equity mutual funds u/s10(38)
- 10. AVERAGE END VALUE AFTER 10 YEARS IN BALANCED FUND (AFTER 8% ANNUAL WITHDRAWAL FROM 01 JAN 2001 TO 31 DEC 2015) SOURECE; INTERNAL. * AVERAGE RETURN OF 4 BALANCED FUND SCHEMES @ avg. XIRR of 20.2%. (no of Obs;21) 63,90,483/-*