Free(ze) Money

Hi Again, I hope all of us are doing great, I have been working on this blog since last few weeks as I have to think about various factor I took time and tried to give my best. when ever we think about any investment we will have atleast one or fewer hurdles. Even the one which we are going to explore now have few hidden hindernce.

The idea which we are going to explore here wouldn't be apt for who are youngsters now,but Good news is we can use this idea for our Future generation. Looks quite interesting right. Let us start exploring the idea. Assumptions and Requirements for this option to make money. --> Initial investment of lumpsome money.( apart from our emergency fund) --> Bank and post office account with internet banking facility. --> Ample of patience to let the money grow. I would like to share the name of the scheme "PPF- Public Provident Fund" which yield 7.1% return and this return value is variable parameter based on many factors. Now lets come back to base which is first point in Assumptions, I have assumed the lumpsome as value as two Lakhs for now and based on our capacity we can adjust the lumpsome value. In-order to save this lumpsome money we can opt for saving money in Aribitarge Mutual funds which in-turn provided 7+% returns recent years.

Note: for the profits we earn through this Arbitarge funds we can claim 1.25L of tax benefits as LTCG. That is one important point that I considred this plan apart from other savings schemes, I hope there are better return providing schemes but as a defensive/slow/ low risk taking invsestor I opted for this option. Once we achieved our target of 2 Lakhs,there is an option to open a Flexi FD's in most of the reputed banks in India and this Flexi FD's should be on the Senior citizen name to enjoy extra cushion benefits including door step banking, no need to rush to the bank location at any given time and there are many other advantages too which we have to explore based on our needs and options provided by bank, the reason behind this option is avail the flexiblity of this option. we can use the funds in flexi FD's using debit card as long as we hold the funds in account we will be credited interest based on our pay out method (monthly, quaterly, half yearly or yearly). Please go through the comparison provided here and for better clarity please reach out to your bank in which we are planning to have account with Flexi FD. https://www.wintwealth.com/fixed-deposit/flexi-fd/.

Once all these are done, we are all set to sit tight without any action. as I opted for Monthly interest payout from Flexi FD. I will get 1,300 as monthly interest payout, which will be re-directed to PPF account for 15 years. if follow the same pattern at the end of 15 years we will get 4,20,000 as maturity value provided we left our initial investment amount in Flexi amount untouched and automated all the process, if everything goes per our plan 2L of intial investment and maturity of 4.20L we will have 6.2L in hand. when we have our next genration as teenager. repeat the process again and this time when we complete the return will bigger than the last time. as we will get 4K as a monthly interest so YOY 48K will go to our PPF.

Reason behind schemes: --> LTCG benefits of Aribitarge upto 1.25 L. --> Flexible options of FD scheme for senior citizens. --> PPF is "EEE" category. --> up to 50K exemption for Seinor citizens in a given financial year. so if we repeat this for third time for sure we might endup paying tax of 10% for return which we get more than 50K from Flexi fD. I would like to understand why banks providing higer return rate for Flexi FD's and still learning on it.so we can generte money easily if we have good and enough patience. as our generation grows money grow with them. I forsee Inflation as the biggest hinderence here. Let us assume we have 2L now in hand and got 6 L after 15 years what will be the. I am still exploring for better options to grow our money.If we got any please share your toughts in comment.Lets do it to-gether. Once I find better options will comeback here with my findings. Cheers till then.