Today I came across one gold investment plan from one of the famous jewellery shop called Tanishq. Let us look at it’s features and analyze whether it is worth to invest for or not.Features of this gold plan are like this-
Minimum Monthly Contribution-Rs.500 and above that in multiples of Rs.500.Currently they have two plans. One is of 12 months plan and another is for 18 months plan. This how the features are showcasing on their site.
THE 11+1 PLAN
Under this scheme, you need to invest a fixed amount every month with Tanishq for 11 months. The 12th month installment is paid by Tanishq, hence you can buy for more than what you pay.
|No of months||11|
|Total Paid||11 X 3000 = 33000|
|Time period||after 12 months|
|Advantage||Bonus – 100% of monthly instalment|
THE 18 MONTHS PLAN
In the 18 months plan, you have to invest for 18 months – but the amount here can be flexible – meaning, you can choose how much you want to invest each month. For example – you can start with enrolling for 2,000/-, increase it to 5,000/- the next month and even reduce it to Rs.500 the month after that. The flexibility and time period of this scheme make it truly unique!
|Scheme Type||18 month|
|No of months||18|
|Total Paid||18 X 3000 = 54000|
|Time period||after 18 months|
|Advantage||Flexible deposits every month.|
Now let us look at investment perspective whether this plan is really a good one to invest? We will consider both 12 month plans and 18 months plan for calculation. For return calculation we need to calculate IRR (Internal Rate of Return-For detailed description about IRR visit my previous post “How to calculate returns on your investments?“). After calculating IRR returns on both the above examples it is around 1.44% IRR. It looks attractive to invest. But the catch of the scheme is you are unable to buy pure gold or can’t get cash back, you have to purchase only jewellery items where again your money value will loose in the way of making charges and wastage. Hence this is good plan if you want to accumulate gold jewelerry for your personal use. But bad if you think that you are investing in gold. So this plan is not good for the persons who are looking for pure gold investment rather than jewellary purchasing.