SHALL I INVEST IN TATA MOTORS FD???
68A Regular Visitor to my blog, Mr.Akhil Sharma wrote : Hello Sir,
How are you doing?....i again want to congratulate you for the terrific job you are doing.Coming to the point i wanted to know about Company FDs.I just saw an advertisement of "Tata Motors Fixed Deposit Scheme".It says earn 12.83% per annum on a 3 years deposit.i have just joined my first job and my salary is around 2,10,000.
I along with my mother wanted to invest in a fixed deposit of Rs.50,000.Is this the right option.what will be the Net return after tax.i mean what will i get after 3 years if i invest Rs.50,000 now.Or should i go for some Bank FD rather than Company FD.
You can check this link if you want.http://www.tatamotors.com/fixed-deposit-scheme.htm
I want to invest in the cumulative deposit plan!thanks and regards Akhil Sharma.
P.S:Thanks for your kind words on my blog Confessions of a delhite!
SRIKANTH SHANKAR MATRUBAI replied :
Hi Akhil sharma, It is with great pleasure that I recd that the news that you have got your first job. Congrats!!! I will answer your query later. First of all, I would like you to Insure yourself adequately. For this, you should consider taking Term Insurance as this is the Cheapest form of Insurance available. Only later on, you should think of Investments. Regarding FDs, as you are young, you are better off investing in Diversified Mutual Funds, which I have already discussed with you earlier. Sure, if you are planning to keep aside the amount for a particular reason, with a fixed time horizon, then go ahead. For your investment amount of 50000, you should be getting about 62940 after taxes (I have considered you to be in the highest Tax Bracket). If you are in the lower Tax Bracket, you should be getting somewhere around 66400 or so. With the falling interest rates, the Tata Motors Fixed Deposit Scheme is quite Attractive. Though the Company is going through tough times presently, 3 years is a good enough time for the company to sail through and moreover your investment is secured.
So, go ahead and invest but before that, PLEASE NOTE, THAT THE COMPANY OFFERS HALF(1/2) PERCENT EXTRA FOR SHAREHOLDERS. YOU CAN BUY A SMALL LOT OF TATA MOTORS SHARE AND AVAIL A HIGHER RATE ON THE FIXED DEPOSIT!!!!!.
Best of luck,
Srikanth shankar Matrubai
Visit http://goodfundsadvisor.blogspot.com for Mutual funds visit http://equityadvise.blogspot.com for Stocks and Shares
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Comments
Dear tokka,
Some of the regional and co-operative banks are offering fixed deposits at somewhat similar rates of interest. But the security of money with them is always questionable, especially in the current economic circumstances. If we have to trust any company, the Tata Group is undoubtedly among the favorites. Moreover, successful vehciles like Tata Indica, Tata Safari, Tata Ace etc and anticipatory success of Tata Nano makes the funds more more secure
The major issue of course: Is Tata Motors going to be solvent? Going by how this stupid government is thinking of bailout a Satyam, I think it's a given that even Tata Motors is going to be bailed out. In Satyam they aren't even letting the shareholders go bust - usually bailouts protect debt holders, but here they're protecting those that took the risk!Given this mentality it's likely Tata Motors won't be allowed to go bust, but if things get ugly money could be stuck for a while. The financials don't look very good, but that's true of everything. Comes down to trust. So if you like Ratan Tata - and most importantly, if he likes you - this might just be the "alpha" you're looking for.
tokka says:
9 months ago
govt doesn't gaurantee this FDs...niether do any financial institution?
what if tata motors goes bankrupt? give the amt of debt it has and how fast the liquidity crisis can bring company down in few months....