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.
| Scheme Type | 11+1 |
| You Pay | 3000 |
| No of months | 11 |
| Total Paid | 11 X 3000 = 33000 |
| Bonus | 3000 |
| Total Amount | 36000 |
| 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 |
| You Pay | 3000 |
| No of months | 18 |
| Total Paid | 18 X 3000 = 54000 |
| Bonus | 3900 |
| Total Amount | 57900 |
| 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.
I had a very disappointing experience with the Tanishq Gold Harvest Scheme.
The process of redeeming the scheme was time-consuming. I expected a seamless experience but instead faced delays and complications. It has very hard to believe that such a big brand had gold coins if 5 grams unavailable as per our requirements. Cashback option not available for a genuine case and unavailability is tackled by forcing you to buy products of their choice. Overall, I regret enrolling in the Tanishq Gold Harvest Scheme and would not recommend it to others. I am surprised such big name like TATA resort to such means to fool their customers.
Dear Buta,
Thanks for sharing your bad experience. It will really help to others.
true i also face cheating by refunding amount
Kindly don’t choose Tanishq golden harvest scheme. The entire Tanishq is fraudulent. They having swarnanidhi scheme, like every jewellery shop scheme. But, they never told this scheme. I was paid last 10 month 1,50,000( In valasaravakkam – Chennai branch).Using swarnanidhi scheme today I can purchase 47 grams. But, because of the fraudulent they said only 38 grams. Totally disappointed bcoz of this shop
Dear Saranya,
Thanks for airing your experience.
I also applied for Tanshiq Gold Harvest .After maturing the amount of 4000/- per month. I asked to refund my amount.Thus calculating the profit they promised to credit 43000/-.but I was credit with only 40000.and last moment I got message that only by shopping I can use my profit 3000/-.My point is why Tanshiq lied us earlier to credit whole 43000/.
Dear Kshitij,
If they promised you in writing, then think of legal action.
This info is either inaccurate or obsolete. Recently have paid 15000 for 10 M and after 12 months got 164000 against my 150000 paid @7‰
What they gave me is 2500 discount on making charge of 27000. Pl note other than a simple 7% interest you wont get much on this. Instead ofvwasting payments yet another institute make RDcand go to your choice at 12 months than locked to unreasonable terms of TanishQ. Last point, on average you pay 1100 per gram making charge.. So buying gold at 125 % on top GST.
Before closing, all glitters are not gold
Dear Srini,
This post is written based on that day’s information. Now coming back to return of 7%, is it a great deal? Think and decide 🙂
if i paid after the due date is there any charges ?
if i have paid after the due date what will happen ….
Dear Siri,
Please check with Tanishq regarding further details.
Hello sir,i am shekhar and i am from kolkata.i work on behalf of i.t.c(third party payrole).salary is around 14000/- per month.i want few investment plan for short term.can you suggest few?
Shekhar-What do you mean by short term?
ON PPF BALANCE BANKS DO NOT GIVE ANY LOAN. PL. GUIDE WHICH COMPANY OR PPF AUTHORITY WILL PROVIDE LOAN ON BALANCE AMOUNT OF RS. 35 LAC, FOR ONE YEAR TIME FRAME.
Rohit-Before proceeding for loan, first understand whether you are eligible for PPF or not. To know more about loan and withdrawal read my post “PPF-Loan and Withdrawal“
HI, would like to know more about this
Sathya-Let me know your doubts.