How would I invest my money?

This has been a frequently asked question in this forum. Hence I thought it best that I put down something for other members to contribute. Firstly Lets assume that you are given onetime donation of Rs 10mn by your Rich Uncle. How would you invest and get a good return whilst preserving the capital and enjoying the use of money.

This is my strategy

A) Invest Rs 2mn Government TBills rate 6% p.a
B) Invest Rs 5mn in a 1 year fixed deposit in licenced commercial bank. NDB or Commercial Bank. Rate 9% p.a
C) Invest Rs 2mn in registered finance company. Rate 13% p.a
D) Invest Rs 1 mn in the stock market.
E) I will ask my bank to grant me a permanent overdraft facility for Rs 4mn by retaining my deposit of Rs 5mn as a security. Interest rate of the loan is usually 2% more than the fixed deposit rate ie. 11%
F) With this arrangement I will have Rs 5mn to be invested in the stock market.
G) I will pick two type of stocks, trading stock and medium term stocks. It will be based on 80:20 basis with more exposure to good stocks. If necessary I will go for a 50% margin trading facility and increase my portfolio unto Rs 10mn.
H) I will ask my finance company to grant me a leasing facility and retain my 2mn deposit as a security. I will go and buy a car that is petrol, fuel efficient and which has a second hand value. This will be for my personal use. I would even consider hiring whenever someone offers me a good rate.
I) I will go to a government bank and get a property loans. Interest rate are very low therefore I will take a 10 year loan. Anything more than 10 year is not financially attractive. Loan would be for Rs 10mn. They would finance only 80% and woul ask me to secure the balance 20%. I will offer my treasury bills as a security. Now I have a Rs 10mn
J) I will go and buy a house in Colombo suburbs a two story small house for Rs 10mn. You could have a look at the Hit Ad property section, plenty available.
K) I will get occupy the 1st floor of the house and rent the ground floor of the house. I would rent this to foreigners who are coming for holidays. Since there is a acute shortage of Colombo hotel rooms, I would be able to fletch a good rate and repay part of my housing loan from the money I am receiving from the rent. I will target to rent the ground floor for Rs 50,000 per month. This will give me Rs 600,000 per annum and it will be equal to almost 8% return on my investment. Cost of my loan is only 10% p.a therefore my incremental cost would be very little.
L) Now I am settled in life... I've got a car, I've got a house, I've got investments.. Now I need to find a Rich Boy friend!!!!

Summary - Assets & liabilities
Car - Rs 2mn
House - Rs 10mn
Stock portfolio - Rs 10mn
Treasury Bills - 2mn
Fixed Deposits - 5mn
Deposits with Finance Company - 2mn
Total liabilities -19mn

This is my personal strategy. This is only a hypothetical scenario.

I like the way its ended . I mean (L) last part of the sentence. Happy Ending. +

All good. But rich boy friend never would love you. Sure he'd love your wealth. So try to find a loving & caring one. Defiantly he will make your life as like heaven. This is my personal idea. And wish you good luck sister!

Quibit wrote:
L) Now I am settled in life... I've got a. I've got a house, I've got investment.. Now I need to find a Rich Boy friend!!!!

Looking for a boyfriend eh?




Nice post by the way!

L) Now I am settled in life... I've got a. I've got a house, I've got investment.. Now I need to find a Rich Boy friend!!!!

And Im sure, you will have more applications from now on . Good luck again!

Man!!When did this forum become a MATRIMORNIAL forum??

first i need to find a rich uncle who is willing to offer me 10MN

For those who are interested
I'm kinda rich

Quibit wrote:This has been a frequently asked question in this forum. Hence I thought it best that I put down something for other members to contribute. Firstly Lets assume that you are given onetime donation of Rs 10mn by your Rich Uncle. How would you invest and get a good return whilst preserving the capital and enjoying the use of money.

This is my strategy

A) Invest Rs 2mn Government TBills rate 6% p.a
B) Invest Rs 5mn in a 1 year fixed deposit in licenced commercial bank. NDB or Commercial Bank. Rate 9% p.a
C) Invest Rs 2mn in registered finance company. Rate 13% p.a
D) Invest Rs 1 mn in the stock market.
E) I will ask my bank to grant me a permanent overdraft facility for Rs 4mn by retaining my deposit of Rs 5mn as a security. Interest rate of the loan is usually 2% more than the fixed deposit rate ie. 11%
F) With this arrangement I will have Rs 5mn to be invested in the stock market.
G) I will pick two type of stocks, trading stock and medium term stocks. It will be based on 80:20 basis with more exposure to good stocks. If necessary I will go for a 50% margin trading facility and increase my portfolio unto Rs 10mn.
H) I will ask my finance company to grant me a leasing facility and retain my 2mn deposit as a security. I will go and buy a car that is petrol, fuel efficient and which has a second hand value. This will be for my personal use. I would even consider hiring whenever someone offers me a good rate.
I) I will go to a government bank and get a property loans. Interest rate are very low therefore I will take a 10 year loan. Anything more than 10 year is not financially attractive. Loan would be for Rs 10mn. They would finance only 80% and woul ask me to secure the balance 20%. I will offer my treasury bills as a security. Now I have a Rs 8mn.
J) I will go and buy a house in Colombo suburbs a two story small house for Rs 8 mn. You could have a look at the Hit Ad property section, plenty available.
K) I will get occupy the 1st floor of the house and rent the ground floor of the house. I would rent this to foreigners who are coming for holidays. Since there is a acute shortage of Colombo hotel rooms, I would be able to fletch a good rate and repay part of my housing loan from the money I am receiving from the rent. I will target to rent the ground floor for Rs 50,000 per month. This will give me Rs 600,000 per annum and it will be equal to almost 8% return on my investment. Cost of my loan is only 10% p.a therefore my incremental cost would be very little.
L) Now I am settled in life... I've got a car, I've got a house, I've got investments.. Now I need to find a Rich Boy friend!!!!

Summary - Assets & liabilities
Car - Rs 2mn
House - Rs 8 mn
Stock portfolio - Rs 10mn
Treasury Bills - 2mn
Fixed Deposits - 5mn
Deposits with Finance Company - 2mn
Total liabilities -19mn

This is my personal strategy. This is only a hypothetical scenario.

Dear Quibit,

Is this your strategy ?

(Correct me, if I am wrong pl.)

Just don't get caught to a guy who wants everything ready made just like you!

swan03 is right. he might only love your wealth! just like some girls try on me

Intrinsic wrote:

Dear Quibit,
Is this your strategy ?
(Correct me, if I am wrong pl.)
[/quote]

Thanks for the calculation
Car loan should be only for Rs 2mn and since i am pledging my deposit the interest rate should be only 2% more than the deposit rate. You could say maximum 15% p.a. Margin trading is currently offered by MBSL at 16% p.a.

Housing loan is for Rs 10mn. I amended my original post. Also I should be able to hire my car and get a decent monthly rental. Each airport pickup or a drop is Rs 2,500. This I could do during free time whilst using the car for my personal activities.

Also rich boy friend will look after my other expenses!!!!

Quibit wrote:

Intrinsic wrote:

Dear Quibit,
Is this your strategy ?
(Correct me, if I am wrong pl.)

Thanks for the calculation
Car loan should be only for Rs 2mn and since i am pledging my deposit the interest rate should be only 2% more than the deposit rate. You could say maximum 15% p.a. Margin trading is currently offered by MBSL at 16% p.a.

Housing loan is for Rs 10mn. I amended my original post. Also I should be able to hire my car and get a decent monthly rental. Each airport pickup or a drop is Rs 2,500. This I could do during free time whilst using the car for my personal activities.

Also rich boy friend will look after my other expenses!!!!
[/quote]

dream on!
are you gonna do the hire yourself or have a driver and pay him?
if you are gonna do it yourself, then you'll be the first (i think) cab driver!
and do you think your rich boyfriend will wait for you till you finish your hire?

I am looking for a beautiful girl.....
Sorry HPWR !

Quibit, can you lend your uncle to me who is willing to donate 10 Mn

Dreamer wrote:Man!!When did this forum become a MATRIMORNIAL forum??

Exact what i thought ...... LOlzz..... Any one willing to accept my application...............................Bt Sorry for tht grl

But
K) I will get occupy the 1st floor of the house and rent the ground floor of the house. I would rent this to foreigners who are coming for holidays. Since there is a acute shortage of Colombo hotel rooms, I would be able to fletch a good rate and repay part of my housing loan from the money I am receiving from the rent. I will target to rent the ground floor for Rs 50,000 per month. This will give me Rs 600,000 per annum and it will be equal to almost 8% return on my investment. Cost of my loan is only 10% p.a therefore my incremental cost would be very little.>


I would highlight this part ... I dnt knw how u calculate 8mn house in colombo and Rs. 50,000 rent income... as i knw in colombo if you want rent house for 50,000 per month. it should be above minimum 12mn... even-tough it is very hard to find... further more your trying to occupy with foreign family ......... This makes me LOLZZZ.... with my knwledge its very hard target buddy ....

But ur entire life is rotate with Interest... which i dnt like.... but any way different approach .....

Cheerz

Gaja wrote:Quibit, can you lend your uncle to me who is willing to donate 10 Mn

Hope Aunty would agree to lend the uncle as Gaja pointed out since the full authority is with her on uncle's matters.

Gaja wrote:Quibit, can you lend your uncle to me who is willing to donate 10 Mn

Hey Gaja,

I am sure you would have looked at the tax benefit of my strategy. I would be able to get a tax direction from the Inland Revenue exempting me from income tax coz I can set off my interest income against loan interest. Capital gains on shares are tax free and if I sell my house it will be tax free coz it's my first real estate transcation. My house rental income and car rental income is undeclared!!

Btw
I will be renting my car only to the foreigners who would be coming to stay at ground floor of my house. I might event go to airport and pick them up and also derop them when they leave. Also my house will have two seperate entrance. So I could continue to moderate the forum without getting disturbed.

Hi Quibit, I will send my application to you soon for an interview.

Quibit wrote:

Gaja wrote:Quibit, can you lend your uncle to me who is willing to donate 10 Mn

Hey Gaja,

I am sure you would have looked at the tax benefit of my strategy. I would be able to get a tax direction from the Inland Revenue exempting me from income tax coz I can set off my interest income against loan interest. Capital gains on shares are tax free and if I sell my house it will be tax free coz it's my first real estate transcation. My house rental income and car rental income is undeclared!!

Btw
I will be renting my car only to the foreigners who would be coming to stay at ground floor of my house. I might event go to airport and pick them up and also derop them when they leave. Also my house will have two seperate entrance. So I could continue to moderate the forum without getting disturbed.

No better you tell your financial institutions to deduct 8%, W.H.T on Interest Income, then most of the incomes are exempted or subject to tax on INCOME TAX FILE, NO DIRECTION AND NO REFUNDS from I.R.D from 01.04.2011, since you are going to keep the rental income undeclared, also not whether its 1st real estate transaction or not its exempted from income tax since its capital gain ( but if you do it regularly it will take the nature or revenue transaction then will bring all kind of taxes )

Also note that since Gift Taxes abolished in Sri Lanka, with out fear you can gift your uncle to me

Better you form this as a company and list it after sometimes you can list in the CSE, and don't forget to type a note in the previous day night of open for subscription and send it in the morning. - i think by this you can get huge tax free profit, since disposal of private equities held for more than 2 years also exempted from IT

I seriously learned alot on taxation here!
Just can't seem to find that uncle, you know...

milanka wrote:

Gaja wrote:Quibit, can you lend your uncle to me who is willing to donate 10 Mn

Hope Aunty would agree to lend the uncle as Gaja pointed out since the full authority is with her on uncle's matters.

LOL!

I would say you should go with the trend.

Take your 10mn + Your potential rich boyfriend's money + Your richest friend's money and put everything into one CDS A/C. And the get a margin facility for that. So you should have about 60 to 70 million buying power now.

Now take a forgotten share and slowly slowly collect it for 1 week. Dont let the price to go up when you buy. Just dump your stake if price try to be funny. Now since you have collected the particular share enough, Wait for a green day and buy the whole order book with a 50% up buy order.
Hold it on for few days. And then you know what to do. Dump your stake into poor retailers.

Now you must have made more than enough money to even dump your rich boyfriend.

chamith wrote:I would say you should go with the trend.

Take your 10mn + Your potential rich boyfriend's money + Your richest friend's money and put everything into one CDS A/C. And the get a margin facility for that. So you should have about 60 to 70 million buying power now.

Now take a forgotten share and slowly slowly collect it for 1 week. Dont let the price to go up when you buy. Just dump your stake if price try to be funny. Now since you have collected the particular share enough, Wait for a green day and buy the whole order book with a 50% up buy order.
Hold it on for few days. And then you know what to do. Dump your stake into poor retailers.

Now you must have made more than enough money to even dump your rich boyfriend.

I think you have forgotten something else.
You have to get two brokers to spread the news and misinform the new investors and more gullible fellows!

hybrid_OS wrote:

chamith wrote:I would say you should go with the trend.

Take your 10mn + Your potential rich boyfriend's money + Your richest friend's money and put everything into one CDS A/C. And the get a margin facility for that. So you should have about 60 to 70 million buying power now.

Now take a forgotten share and slowly slowly collect it for 1 week. Dont let the price to go up when you buy. Just dump your stake if price try to be funny. Now since you have collected the particular share enough, Wait for a green day and buy the whole order book with a 50% up buy order.
Hold it on for few days. And then you know what to do. Dump your stake into poor retailers.

Now you must have made more than enough money to even dump your rich boyfriend.

I think you have forgotten something else.
You have to get two brokers to spread the news and misinform the new investors and more gullible fellows!

hybrid, one you told the broker that you have 100 million, no need to worry they them-self will tell retailers that there is a big investor with billions come to the market, and you know what will follow