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Thread: Is commodity best way to investment?

  1. #1

    How can NRI invest in mutual funds?

    An NRI can invest in mutual fund schemes in India through the money lying in the credit of NRE/NRO account or may be through banking channels which are approved by the authority.

    All you"ll need to do to invest in mutual fund is by submitting a duly completed application form along with cheques or DD to investor service center.

    To invest on mutual funds, it is compulsory to have an NRE bank account. General permission has been granted by the Reserve Bank of India to offer mutual fund, subject to few conditions.

    These conditions are:

    The investment amount has to be received by inward remittance through normal banking channels or through debit to an NRE Bank account of the investor.
    The net amount of the interest or dividend and proceeds of units should be remitted through normal banking channels or be credited to NRE bank account of the investor as mentioned by him / her with a condition of payment of applicable tax.

    Tax liability for income received from NRI mutual fund:

    Section 10 (35) of Income tax Act, 1961 defines that income received from mutual fund investment under section 10 (23D) is exempt from income tax. Therefore all dividends are tax free on NRI mutual fund held by the investor. However any tax that is applicable will be deducted at source.

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    Re: How can NRI invest in mutual funds?

    NRIs / Persons of Indian Origin are entitled to invest in Mutual Fund schemes in India under a general permission from the Reserve Bank of India.NRI Investors can invest in schemes either through money lying to the credit of their NRO / NRE / FCNR Account or through approved Banking Channels.

    NRI Investors can seek repatriation of the redemption proceeds on their investment where the investment is made through approved banking channels or by debit to their NRE / FCNR Account. Income earned on NRI investments by way of dividend is freely repatriable irrespective of the source of investment.


    The tax treatment for NRI investors with respect to Mutual Fund investments is the same that is applicable for Resident Investors except that applicable tax would be deducted at source for NRIs.


    With effect from 1st June, 2006 Securities Transaction Tax will be deducted @ 0.25%.

    TDS rate for Short Term NRI investor's under Equity Scheme(s) = 15% (A)
    Surcharge = A x 10% = 1.5% (B)
    Education Cess = A + B x 3% = 0.495% (C)
    TDS to be deducted = A + B + C = 16.99%

    TDS rate for Short Term NRI investor's under Non - Equity Scheme(s) = 30% (A)
    Surcharge = A x 10% = 3% (B)
    Education Cess = A + B x 3% = 0.99% (C)
    TDS to be deducted = A + B + C = 33.99%

    TDS rate for Long Term NRI investor's under Equity Scheme(s) = NIL

    TDS rate for Long Term NRI investor's under Non-Equity Scheme(s) = 20% with indexation benefit. (A)
    Surcharge = A x 10% = 2% (B)
    Education Cess = A + B x 3% = 0.66% (C)
    TDS to be deducted = A + B + C = 22.66%

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    Federal funds

    What is federal funds rate ?

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    The interest rate at which banks lend to each other. It is usual for banks to borrow or lend money to other banks. The rate at which the lending transaction takes place depends on the interest rate fixed by the Central bank.

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    Post New Investment Tips

    Hi there , I am new and I would like to share about the investment tools here, as my point of view there are three investment option whcih are good and beneficial

    1 Currency Forex
    2 Real Estate
    3 Stock Trading

    Forex needs good skills and is very risky but on the other hand, and it's also know as a very good profit generator. Real estate is less risky but needs time and area development factor, It's a really good in commercial department. Stock trading is just least risky, just hold a stock and sell. Its cycling is great and very fast.So one must choose the most affordable option for him.

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    Is commodity best way to investment?

    I had someone share this story about the crooks of investments a few years back, before I lost my money. commodities a risky business. how try to deal in commodities trading with the help of a trusted broker. Provide me firms for a wide range of compelling reasons trading finance etc

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    yes, I am agree with kis. Commodity is a risky business but goal can be achieved after having a good knowledge and a having a good broker. it is risky because commodities are traded in futures contracts and they are highly leveraged. A commodity trader normally only has to put up 5 to 20 percent of the contract in futures margin value to control the commodity investment..

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    Hi dineshjagruti,

    Federal funds rate is the interest rate at which an institution lends money to other institution overnight. It is the interest at which a bank gives loan to other bank. I hope this would help you.

    bbyes

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    Equity Market still interesting?


    A common man think that it is really worth to invest a small part of income in cash market. Cash/Equity Market is not cup of tea due to attractiveness of other market.

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    Commodities are related to food, energy or metals, are an important part of everyday life. Similarly, commodities can be an important way for investors to diversify beyond traditional stocks and bonds, or to profit from a conviction about price movements. It used to be that most people did not invest in commodities because doing so required significant amounts of time, money and expertise. Today, there are a number of different routes to the commodity markets, and some of these routes make it easy for even the average investor to participate. This article should help you determine which tools will suit you best for investing in commodities.
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    Last edited by mark.1; 07-11-2014 at 02:00 PM.

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