Should I invest in FD in India (9% interest rate)# Stock
g*t
1 楼
[guvest] The below answer looks fine to me. Same logic can not
explain CHINA CD rate and Exchange rate.
There are several missing logic pieces or model parameters.
Charles J Stevens Jr answer:
Interest rates paid on any item have a direct relationship to the underlying
risk of that investment. If one is paying 1.92% and one is paying 9%, I can
see a pretty clear indication of which has the higher risk. Unless you have
an enormous amount of money to use to counter the risk inherent in the
Rupee/ US Dollar exchange rate you pointed out, I think you all ready have
your answer.
If you are interested in India as an INVESTMENT, check the availability of
either mutual funds or Exchange Traded Funds (ETF's) that invest in India.
As an example, the iShares India ETF has traded between $22.88 and $32.05
this year. Bottom to top, that's more than a 9% increase. From its closing
price today at $30.30, you'd need a $3.00 price increase plus commissions/
fees to make your 9%. And, it's diversified and you can quantify your risk.
I use that as an example, NOT a recommendation!
The philosopher Will Rogers also made a contribution here indirectly. He
said "I'm more concerned about the return of my principal then the return on
my principal". Which is your major concern?
explain CHINA CD rate and Exchange rate.
There are several missing logic pieces or model parameters.
Charles J Stevens Jr answer:
Interest rates paid on any item have a direct relationship to the underlying
risk of that investment. If one is paying 1.92% and one is paying 9%, I can
see a pretty clear indication of which has the higher risk. Unless you have
an enormous amount of money to use to counter the risk inherent in the
Rupee/ US Dollar exchange rate you pointed out, I think you all ready have
your answer.
If you are interested in India as an INVESTMENT, check the availability of
either mutual funds or Exchange Traded Funds (ETF's) that invest in India.
As an example, the iShares India ETF has traded between $22.88 and $32.05
this year. Bottom to top, that's more than a 9% increase. From its closing
price today at $30.30, you'd need a $3.00 price increase plus commissions/
fees to make your 9%. And, it's diversified and you can quantify your risk.
I use that as an example, NOT a recommendation!
The philosopher Will Rogers also made a contribution here indirectly. He
said "I'm more concerned about the return of my principal then the return on
my principal". Which is your major concern?
