Smart ways to compound your debt investment returns
If selected properly, fixed income investments can be more predictable compounders of wealth
Money managers and financial advisors, when pitching financial products to you, love to cite Einstein on compounding being the eighth wonder of the world. Then, they do their best to convince you that if you want to benefit from compounding, you should be maxing out your equity investments. But if you give it a bit of thought, debt investments often turn out to be more predictable compounders of wealth for Indian investors, than equities.
Steadier compounding
In equities, your returns come in fits and starts. You may make a 30 per cent return one year, lose 15 per cent of it in the second year and gain back 10 per cent in the third year. But such zig-zag returns from stock prices don’t really make for steady compounding of your money.
There are certain anomalies in the capital gains taxation which the finance minister needs to correct in the budget. Let us discuss the anomalies and my suggestions
short term investment options that can deliver higher returns than fixed deposit jagran.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jagran.com Daily Mail and Mail on Sunday newspapers.