Recurring Deposit

Recurring deposit or methodical investment program is a tool of forcefully wealth creator. It s available in two forms, One with fixed rate of return interest and other one with variable return. Recurring deposit with fixed return is available with small savings at post offices and with banksrecurring deposit with variable return is available with mutual fund. Variable return rd means, Say one buy gold every month by a fixed amount for a period and sell the total accrued gold in gms in the coming years date. The price difference between purchasing and vending is the gain or profit. In this, Any time one can stop paying, Any time one can start withdrawal of, Stopped account previous deposits possible. A quick comparison between as under fixed variablereturn fixed variableperiod fixed flexiblepre mature possible with reduced rate any time at nav after one yearpartial withdrawal not possible possibleadd on facility not possible possibletaxable total interest dividend or gain, Not taxable as tax applied to investment gains lawif one is going selection pertaining, For variable to pooled fund scheme is very important. Few suggestions are here underin the event that you genuinely are having surplus fund for say 10 years, Age within 40 and having high risk taking capacity than go for any equity scheme. If you are having surplus for say 5, 7 years, Age within 45 and having moderate risk taking capacity than go for any balance scheme. If you are having surplus for say 5 years, Would like to use on an emergency and having no risk taking capacity than go for any mip scheme.