If we take a step back and take a look at our portfolios, in all probability we’ll find that our investments are concentrated in Indian mutual funds and stocks.
The markets have reacted to macroeconomic factors which are out of the reach of both the government and central banks, which makes it even tougher to control such situations
Mutual funds can provide you products that can meet your financial goals with relatively lesser risk.
The amount of capital gains tax to be paid on mutual funds depends on the type of investment (equity / debt) and the duration of time for which the investment is held
You need to know that there is no such thing as a "perfect mutual fund portfolio". There can be numerous reasonably good portfolios, and there's no one-size-fits-all.
As compared to other havens available under Section 80C of the Income Tax Act, ELSS has the shortest lock-in period
In case of mutual funds, a differential rate of taxation is applied across fund categories.
Longer maturity bonds or bond funds may be volatile for some more time.
SWP makes you financially self-dependent. This feature helps you live with dignity without compromising on your needs.
It is expected, though not desirable, that credit-related incidents may happen
You can build a portfolio of mutual fund schemes based on your risk profile.
The expense ratio of a direct plan is usually around 0.5-1% lower than the regular plan of the same mutual fund.
If your rationale for choosing a balanced fund is the marginal tax efficiency over a focused allocation, where the debt component gets taxed as debt fund, it is not a decisive criterion and the tax efficiency is not huge
The imposition of 10 percent tax on LTCG earned on mutual funds could be a trigger for ULIPs
International funds are those mutual fund schemes which invest in foreign markets
Here are a few factors involved to locate a fund which will fulfill your savings requirement in a holistic manner.
ELSS are diversified equity mutual funds that invest a major chunk of your money in equity and equity-related securities.
Don't worry if your SIP in equity mutual funds over the past 8-12 months is showing negative returns. This could be the best thing that ever happened to your portfolio
Which of these categories are an option they should explore further and which one of them is good to give a miss?
When the instrument matures after a month or two, or when the fund gets fresh subscriptions, that quantum is invested at the then prevailing yield levels.
With the reclassification of mutual funds, there will be a change not only in basis of arriving at performance ratings by rating agencies, but also in the method of analysis to be adopted by the investors while reviewing the performance of the schemes for making investment decisions.
One should always plan their tax related investments in advance and invest through SIP route in ELSS to get the benefit of rupee cost averaging.
The main distinction between capital gains tax and DDT is that DDT is paid by the fund house and not by investors, whereas capital gains tax is paid by the investor
If there is an open-ended bond fund that is passively managed with maturity roll-down, investors may opt for it to gradually reduce interest rate risk
Your parents have done their best to secure your future and well-being at every step of the way. It is time you take responsibility for their future & wellbeing too.