What if we told you that when the interest rates went up, your 1 lakh FD became less valuable by almost Rs. 1000?
Sanjiv SinghalFounder & Chief Operating Officer of Scripbox, Sanjiv has worked at the intersection of finance & technology for over 25 years - having held leadership positions at Citibank, ABN AMRO Bank & Kotak Mahindra. Sanjiv set up Scripbox along with his friends Ashok, Atul & Ravi with the aim of simplifying personal finance for everyone. You can also follow Sanjiv on twitter @sanjivsinghal.
Q: My debt funds seem to have crashed. I understand some RBI policy could have impacted. But please explain it. Scripbox: Debt funds are fixed income instruments like Bank FDs. However, the difference is that while on an FD you earn regular and predefined interest every quarter, in debt funds your return comes from an increase in the value of the fund over time.
Yes, you read that right! A crore of rupees and that too by ‘saving.’ Everyone will tell you that you can’t save a crore – you must make it by doing some sort of business. Or, as several commenters, on our twitter stream and blog believe – by wrongful means. The disbelief is not unreasonable. After all, only a mere 0.3% or one third of one percent of Indians – can lay claim to having more than 60 lakhs in total assets (and not in financial assets but a mix of real estate, gold and financial assets).