There is Low Volatility ETF and a FoF (that invests in the ETF) And there is a UTI momentum index fund now. I have a favourable view on both the indices. An investor asked: Which is better? Low Volatility ETF or Momentum Index fund? Should we invest in both? Easy question. Difficult answer. This post is likely to leave you disappointed if you are looking for an … [Read more...] about Low Volatility ETF or Momentum Index Fund: Which one to choose?
How many funds do you have in your portfolio? 2, 4, 10, 20 or even more? Is that a problem? What is the problem with too many funds in the portfolio? With fine MF software at disposal, analysing or dissecting a portfolio with too many funds is not that complicated. But a bigger problem is decision-making. A portfolio with many funds is difficult to manage. It makes … [Read more...] about How to Reduce the number of funds in the portfolio?
If you rush to make tax-saving investments in the months of February and March, it is appropriate that you also try to reduce tax liability on your capital gains through tax loss harvesting. After all, both serve the same purpose. Reduce your tax outgo. In this post, we look at the concept of tax loss harvesting, where you use (or intentionally book) capital losses to set … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?
SEBI has modified investment norms for debt mutual funds for investing in bonds that are quasi-equity in nature. Such bonds can be made to absorb losses before equity or may be convertible to equity in case of a specified event. Additional Tier 1 and Tier 2 bonds (AT1 and AT2) are such bonds. The rules come into force on April 1, 2021. What are AT1 and AT2 bonds? These … [Read more...] about New SEBI Rule about Perpetual Bonds: How it affects Debt MF Investors?
Sensex is above 50K. Nifty is almost 15K. In isolation, these numbers may mean nothing. However, the current levels are almost double the 52-week lows formed during the last year. A massive wealth creation over the past year. It does not happen very often that you double your money in just one year, that too by investing in bellwether indices such as Nifty and … [Read more...] about Sensex at 50,000: How to invest?
LIC has launched a new life insurance plan, LIC Bima Jyoti (Plan 860). LIC Bima Jyoti is a non-linked, non-participating, limited premium payment life insurance plan. Let us review this plan and see if you should invest. LIC Bima Jyoti (Plan 860): Salient Features Non-linked: It is not a ULIP. It is a traditional life insurance plan.Non-Participating: This means that you … [Read more...] about LIC Bima Jyoti (Plan 860): Review
The Budget 2021 changed the way Unit Linked Insurance Plans (ULIPs) will be taxed. This reduces the difference between the taxation of mutual funds and ULIPs. Let's find about how ULIP taxation has changed. What is the new rule about ULIP taxation? If you buy a ULIP on or after February 1, 2021 and the aggregate annual premium of such ULIP (ULIPs) exceeds Rs 2.5 lacs … [Read more...] about How ULIPs will be taxed? (After Budget 2021)
In Budget 2021, the Government has introduced a tax on interest on employee contribution to EPF over Rs 2.5 lacs in a financial year. The Government rationale is that many HNIs are taking benefit of tax-free interest by contributing heavily to the employee provident fund (EPF) account. Read this Economic Times article for more details. The Government feels it is not right … [Read more...] about Tax on EPF: Will the Interest on Taxable Interest be taxed?
The Finance Minister presented the Union Budget 2021 today. Here are the key highlights. #1 Income Tax Slabs remain unchanged No changes have been made to the income tax slabs. No additional tax benefits have been announced either. #2 Interest on EPF becomes taxable in certain cases Current Regulation: Interest on your contribution to EPF account is exempt from … [Read more...] about Budget 2021: Highlights: Changes to EPF, ULIP taxation
A simple way is to invest in risk-free assets (Government bonds, PPF, EPF, bank fixed deposits). You will never see losses. However, by shunning risk completely, you might have to compromise a bit on the long-term returns. And if you consider risky assets (gold or equities) for higher returns, you must prepare yourself for portfolio losses too. At the same time, avoiding … [Read more...] about How to reduce losses in your Portfolio?