In Budget 2021, the Government had introduced a tax on interest on employee contribution to EPF over Rs 2.5 lacs in a financial year. The Government rationale was that many HNIs were 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 EPF Tax: How will your EPF contribution above Rs 2.5 lacs be taxed?
Is Nifty Next 50 index a large cap or a midcap index? Going by SEBI classification where top 100 stocks by market capitalization are considered large cap stocks, Nifty Next 50 is a large cap index. However, I believe its performance shares greater similarity with the midcap index (Nifty Midcap 150) than with the large cap index (Nifty 50). Nifty Next 50: Large cap or Mid … [Read more...] about Nifty Next 50 index: Large cap or Midcap fund?
Always good to receive positive feedback from regular readers. Such feedback makes all the writing effort worthwhile. One such reader, Kshitij, wrote an encouraging email from Ludhiana along with an interesting query,” If you can throw some light on NIFTY 50 NV20 index. Surprisingly, its beaten most of the other Large Cap Benchmarks in last 3 yrs. Thought it might be an … [Read more...] about Nifty 50 Value 20 (NV20) Index: Review: Should you invest?
An investor recently enquired about Aditya Birla Sun Life (ABSLI) Wealth Infinia plan. His bank RM has been pushing this plan aggressively. ABSLI Wealth Infinia plan is a Unit-Linked Insurance plan (ULIP). While I am not very fond of ULIP products, I will share the product review below. I am biased against mixing insurance and investments and do not like purchase … [Read more...] about Review: ABSLI Wealth Infinia ULIP: Should you invest?
HDFC Mutual Fund has launched HDFC Nifty 50 Equal Weight Index Fund. The fund is currently under NFO stage and will soon be available for ongoing subscriptions. Should you invest in HDFC Nifty 50 Equal Weight Index fund? The HDFC fund is a passive fund tracking Nifty 50 Equal Weight Index (Nifty 50 EW). There are a few in the Nifty 50 equal weight index funds in the … [Read more...] about HDFC Nifty 50 Equal Weight Index Fund: Review: Should you invest?
How do you build a portfolio for retirement and other long-term goals? It is a multi-step process. Decide the Asset Allocation for your long-term portfolio.Decide the sub-allocation within the asset class and choose specific investmentsReview and rebalance regularly #1 The first step is deciding Asset Allocation The right asset allocation for you will depend both on … [Read more...] about How to build a Long Term Portfolio?
You just received your annual bonus. You also run a home loan. You have 2 options. Use the bonus (or any lump sum) amount to repay the loan. OR Invest the amount and potentially earn better returns than the home loan interest rate. What should you do with your bonus money? Like everything in personal finance, there is no black and white answer to this … [Read more...] about Got surplus? Would you Prepay or Invest? What does the data tell us?
You are regularly pitched an insurance product by your relationship manager or a sales agent. And nothing confuses you more. You are clueless about how to evaluate the product. There are fancy tables and illustrations. There are emotional “what-ifs.” The keywords like “bonuses” and “loyalty additions” give the impression that the insurance company is doing you a favour. … [Read more...] about Being sold an insurance product? How to figure out what’s being sold?
You are NOT comfortable with the low interest rates on your bank fixed deposits. Rightly so since you would not have seen such low FD interest rates ever in your life. Low interest rates hurt even more when you rely on interest income to fund your monthly expenses. You are desperately looking for solutions to enhance your income without taking too much risk. You come … [Read more...] about What are Covered Bonds? Should you invest?
Annuity plans are the only investment products from insurance companies that I do not dislike. Annuity products can serve a purpose in your portfolio that no other investment product (mutual funds, stocks, bank fixed deposits) can serve. And what is that purpose that no other product can serve? Ensure/Guarantee an income stream for life. LIC has launched a new … [Read more...] about LIC Saral Pension Plan (862): A New Immediate Annuity Plan from LIC: Review