Where to Invest surplus Cash with safe and gaurented returns ?

POSTED BY Mukesh Agarwal ON January 15, 2011 3:44 pm COMMENTS (8)

Hi Manish And All Members

I am 25 years old and my father is 59 yrs old and we have some surplus cash arround 10 Lakhs, and we don’t have any use of this amount for near future say 7-10 years. And we had given this amount to my very very close relative from last 4 years @ 12% intrest p.a & earns a monthly intrest of Rs 10,000 and investing Rs 5000 to an Postal R.D Scheme @7.5% p.a, Rs 4000 in PPF & Rs 1000 in HDFC TOP200 (as SIP for long term).

My question is that-

1) Is there any other option to get good returns than what stated above with safe and gaureented returns  ? or,

2 ) Invest/Buy some amount of silver and hold if for 5-7 years ?

3) And what was the Average return in 5-7 years if i invest/buy silver ?

Please share your valuable suggestion .

Thanks in Advance


8 replies on this article “Where to Invest surplus Cash with safe and gaurented returns ?”

  1. Mukesh Agarwal says:

    @ Ramesh

    Thanks Sir for your reply. But sir what you said (“First principle: Do not invest in things which you do not understand.”) that i am doing. I ask question only to understand it sir , till now i didnt invest because i don’t understand about much in Silver. So it you sir who can help me to give suggestion me in this sector. I will be gratefull to you.


    1. Ramesh says:

      I do not understand investing in commodities including silver/gold. So I do not invest/speculate in that. so I cannot help.
      But “i know that i do not know”.

  2. Ramesh says:

    First principle: Do not invest in things which you do not understand.

    Second: Minimize transaction costs.

  3. Mukesh Agarwal says:

    @ Ramesh

    Sir I visit that link many times before you suggest but can’t understand it properly. If you dont mind then can you explain me in brife. Which is better ?
    1) Buy & Hold silver for 4-5 years OR 2) Trade in silver (Buying/Selling Frequently)


  4. Mukesh Agarwal says:

    @ Manish

    Thanks For Your Reply. As you said that there is Liquidity risk, but till now we don’t face it as when we need sum fund we get it second day after demanding him, so there is no risk of it till now. One more question want to ask is-
    Should i Buy Silver and hold it for long time OR Its better to do trading in MCX with silver as we are now intrested to invest in silver around 2-3 lakhs. So please suggest me.

  5. jignesh says:


    How about the platinum if one really wants to invest in Metal?


  6. Mukesh

    1) If you can really get 12% from that person without much risk of capital , then it can be a good idea to continue this option . But note that this is unsecured loan you have given and there is liquidity risk (if you need money urgently , and the person cant return at the same time).

    2) This looks interesting to me . Silver has given fabulous return over last many years and has beaten gold by good margin , even in 2010 , silver gave 66% compared to 20% in gold !


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