Tanishq Golden Harvest Savings Scheme Reviews

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. But if you invest the same amount in any one year RD, you may fetch around 8.25% (ICICI Bank). Then what is the use of investing with Tanishq and getting returns of around 1.44%? People may say you can buy gold. Yes that is the good idea that you will get well designed gold jewelleries from well known brand. But the catch of the scheme is you are unable to buy pure gold, only jewellery items where again your money value will loose in the way of making charges. Hence if you are in view of investment and planning to choose this plan then it is not worth. But if you are really going for purchasing gold jewellery after one year then you may go with this plan, in that case it is not called gold investment. Mind it and proceed.