Skip to main content

Reliance My Gold Plan is better than Your Jewelers Schemes

 

Are you enamoured by the attractive offers, especially the gold savings plans offered by jewelers this Akshaya Tritiya? 'Pay 11 instalments and get the 12th instalment free', 'no wastage charges', 'enjoy loyalty club benefits' and so on are some of the 'offers' that these schemes lure you with.

Let us take one such scheme offered by a popular jeweler in the country: you pay 11 instalments for the gold scheme and the jeweler contributes towards the 12th instalment. That means if you save Rs 3,000 a month in a gold scheme with a jeweler for 11 months – paying Rs 33,000 over the tenure, you get to buy gold worth Rs 36,000 at the end of the tenure. If you think that's a big deal, then read on.

No Averaging

In schemes such as the one above, you are not allotted gold for every instalment that you make with the jeweler. That means the gold you are eligible to buy would be at the prevailing market price at the end of the term.

Let us suppose gold is Rs 2,895 a gram when you pay your first instalment. At the end of your 11th instalment, its price goes up to Rs 3000. That means you get to buy the jewellery at Rs 3,000 a gram and not at lower rates that may have prevailed earlier. In other words, you have no option to average your price of gold, although you pay an instalment every month.

It also follows that the Rs 3000 that the jeweler is contributing as the 12th instalment may actually fetch you a lesser gold equivalent. For instance, Rs 3000 paid by the jeweler would bring you just 1 gram, instead of 1.03 grams (at the beginning of the period in our illustration). Of course, you can argue that prices may come down. But then, would you be able to time your instalments knowing that prices are coming down?

You are Lending Money

On the face of it, you might seem to get a discount of 8.3% (Rs 3000 on Rs 36,000) in the above illustration. But is that really the case? By paying 11 instalments without any allotment of gold, you are effectively lending money to the jeweler. If a jeweler were to borrow outside, it would be anywhere between 10-18% for a loan, depending on the credit worthiness of the company. Hence, your money is a 'low-cost' credit line for him.

High Default Risk

Even assuming that the Rs 3000 you get is a form of interest for the money you lend for the tenure of the scheme, is your money in safe hands? Well, none of the jewelers' schemes guarantee you gold and there is no separate body/trust safeguarding your money. And to add to it, since you do not have any units allotted (in the above illustration), there is always a possibility that you do not get gold if your jeweler decides to bid you goodbye.

In fact recently, a change in the deposit-taking rules under the Companies Law has large jewellery makers in a fix as the money that they take from you on the schemes may come under the Company Law radar, in which case, many of them may withdraw their schemes. You can click here to read more on this news.

Not a Pure Deal

As you may be aware, jewellery schemes allow you to buy only jewels which are of lower purity, often 22 karat or lower. This reduces the resale value of such gold as well.

Besides, you seldom get to buy jewellery for the value you have saved. In the above example, you may have Rs 36,000 at the end of the tenure but you may wish to buy jewels that are valued at Rs 50,000. Effectively, you not only offer a cheap loan to the jeweler but also enhance his business!

No Wastage…Really?

Do read the fine print or the '*' that comes in the advertisements when it says no wastage. This is seldom the case. Often times, the wastage on designer jewellery is quite high that even if there is a small waiver on wastage, you seldom stand to gain much.

The Way Out – RMGP

If you are keen on buying physical gold, then Reliance My Gold Plan helps you overcome all the above limitations.

rmgp_benefits

 

Besides this, you have a host of other features that make RMGP superior to jewellery schemes.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now