Dynamic Equity funds are largely equity oriented funds which invest in a mix of debt and equity. They increase or decrease their allocation to equities and debt depending on their view of the stock markets. Typically, when stock markets fall they increase equity in the portfolio and when they are… Continue reading
Debt funds, as a category, include liquid, ultra short-term, short-term, income accrual, dynamic bond, and gilt funds. It also includes all debt-oriented funds as MIPs and other hybrid non-equity funds. International funds and gold funds also follow the same taxation as debt funds. For these funds, short-term is a holding… Continue reading
Taxation rules on equity and equity-oriented funds are fairly simple. A holding period of more than 12 months qualifies as long-term holding; less than that is short term. Equity-oriented funds have no tax on long-term capital gains; i.e., if you sell your fund after 12 months from the date you… Continue reading
Capital gain is simply the profit on your investment when you sell your mutual fund units. It is the difference between the market value of your mutual fund units at the time of sale and the cost of such units. The gains come in from the appreciation in your fund’s… Continue reading
In India, bank fixed deposit rate is hovering around 7.5%-9% per annum. Senior citizen will get 0.5% extra. So,100 rupees will become at max 110 rupees in fixed deposit. Now consider inflation. Officially inflation rate is hovering around 7%-8% in India. But calculate your household expense per month. You will… Continue reading
Mathematical accuracy and performance in real time are different ballgames altogether. The maths and the returns might look perfect on paper but the discrepancies soon show as some investment performances fail to meet your expectations. Hence, the corpus created is inadequate for the fulfilment of the goal. Saving and investing… Continue reading
Tax savings fixed deposits have a minimum lock in period of five years. Withdrawal before the expiry of the lock in period will attract tax treatment on the principal. Tax rebate for such a scheme is extended only for the principal and not for the interest unless it is reinvested…. Continue reading
Sukanya Samriddhi Scheme (SSS) is an investment option for you only if you have a girl child of ten years or below. The age limit is 11 years only for 2015. The return for the FY2015-2016 is 9.2%. In ELSS good returns can be earned due to exposure to equities… Continue reading
NSC is a scheme launched by the Government of India. It is a fixed income earning instrument and the interest rates are almost at par with other Government tax savings instruments. NSC is compounded half yearly and the interest rates are declared annually. The current rate of interest is 8.5%… Continue reading
NPS is more of a retirement solution than an investment solution. It invests partially in equities but the lock in period is till the retirement age of 60. This may be restrictive for young investors who are aiming for higher returns in a relatively medium period time. If you are… Continue reading