Rajneesh's Logbook

I had made my first equity investment in the NFO of Fidelity, way back in 2005. I was looking into the financial products available for small investors and was thinking of exploring equity markets. Fidelity had then introduced its maiden equity fund in India, named Fidelity Equity Fund. I had heard about Fidelity, did some research on its background and based on that decided to make a small investment in this fund. Luckily, some Investment Agent had called me for selling some other fund at that time (probably one of ABN Amro funds). Instead of investing in his recommendations, I asked him to invest in Fidelity Equity Fund. I remember he tried to discourage me from doing so (he was linked to ABN Amro Bank) but I persisted. So, thats how I made my first equity investment! Years passed on and I am still invested in the fund. Only change is that it is now known as L&T Equity Fund (sadly, Fidelity withdrew from Indian mutual funds in 2012 or 2013). It has been a topsy-turvy ride in ...

Bank FDs Very low risk and low liquidity. Low returns, but assured. Depending on the tenure and bank, could be around 6-9% Since returns are fully taxable, the post-tax returns will be still lower. Good for very low risk investors and those in the nil or low tax brackets. As interest rate scenario seems to be peaking, one could consider investing in 3-5 year FDs. FMPs Low risk and low Liquidity. No assured returns but depending on tenure and the MF, could be around 6-9%. (Ability to deliver the indicative returns). MFs attract much lower taxation and hence give better post-tax returns vis-à-vis Bank FDs. Good for low risk investors, but in high tax brackets. Good for investing the debt portion of one’s portfolio. Floating Rate Funds Low risk and high liquidity. Market linked. Today could be around 5-7%. Lower taxation of MFs make...