- Wealth PMS (50L+)
Capitalmind speaks of a new way to allocate a lumpsum cash amount and recover interest from it, every month and pay 80% less tax compared to a Fixed Deposit!’
All you have to do is to withdraw from a “growth” liquid fund every month; take out only what is generated as interest – that is, whatever is extra above your invested amount.
This cash flow is substantially better than using a fixed deposit – and that is only because our tax laws give you the ability to reduce your tax outflow by classifying this as a capital gain.
The video explains how to do this and how the tax is much much lower than an equivalent fixed deposit, as much as 80% lower in terms of tax outflow!
And then, you can use the money to finance anything – even a trading portfolio! A Rs. 500,000 investment can generate about Rs. 2,500 per month (at 6% interest, you can get more now though). This money is your “stop loss” amount on any trade you do – and if you hit it, you don’t lose any money. You can buy a stock for Rs. 25,000 and keep a 10% stop loss. Net of the interest taken out, you don’t lose anything. If you make money, just add that to the 2,500 you have earned and it’s next month’s stop loss, and next month you’ll make another Rs. 2,500 to increase your ability to trade easily. Over time you will have built a good amount of trading capital as well!
For the spreadsheet, click here to download and view.
Comments & Suggestions are welcome!
If you have any questions regarding the topics discussed in the video, please use the comments section on Youtube to post your query.
Thanks & Have a great day!