Budget 2018 introduced Dividend Distribution tax on dividend from equity mutual funds. In one of my earlier posts, I had highlighted how mutual fund houses are misguiding investors and convincing investors to invest in dividend plans of mutual fund schemes. Dividend schemes never made for a good choice in case of equity funds. In this post, we will look at the reasons. … [Read more...] about Do not invest in Dividend Schemes from Equity Mutual Funds
Budget 2018 proposed long-term capital gains tax on equity investments. The very next day, the insurance companies were out with advertising campaigns highlighting the tax advantage of ULIPs over mutual funds. Well, mutual funds and ULIPs compete for investor money. And it is not unfair on the part of insurance companies to highlight any demonstrable advantage that they may … [Read more...] about With tax on LTCG on sale on equity mutual funds, do ULIPs make for a better investment choice?
Long-Term Capital Gains on sale on equity mutual funds and listed shares was proposed in Budget 2018. I have discussed the proposal in an earlier post. In this post, let’s look at the actual impact (in numbers) because of the introduction of tax on long-term capital gains. LTCG on sale of equity shares/equity mutual funds From FY2019, the long-term capital gains (holding … [Read more...] about Impact of Tax on Long Term Capital Gains on Returns: Explained with Examples
In October 2017, SEBI announced multiple mutual fund categories and announced that each fund house could have just one fund in each category of fund scheme. An important announcement: www.PersonalFinancePlan.in has been chosen as one of the Top 25 blogs for mutual fund blogs by FeedSpot, a RSS reader Though such rankings shall always be taken with a pinch of salt, it is … [Read more...] about Categorization of Mutual Fund Schemes by SEBI
In an earlier post, I had shown how to purchase mutual funds units and create SIPs on MF Utility online portal. Once you have set up a SIP on MF Utility, it is possible that you may want to cancel the SIP for any reason. How do you do that? How to stop SIP on MF Utility website? Frankly, under MF Utility, the procedure for cancellation of SIP is quite confusing and is not … [Read more...] about How to stop SIP on MF Utility website?
Quite a few readers have approached me to ask the best way to invest in direct plans of mutual funds schemes. I also wrote a post on direct plan platforms that are presently available (do not claim it to be a holistic list). Many want to know the best direct plan platform. Frankly, I do not know the answer myself. Read: List of Online Direct Plan Platforms in India Since most … [Read more...] about The Paranoia surrounding Online Mutual Fund Direct Plan Platforms
Now, you need to link your Aadhaar Card to your Mutual fund investments. Surely, there are multiple ways of doing this. You can submit physical forms along with your Aadhaar proof at Registrar & Transfer Agent offices (CAMS, Karvy etc). You can also submit forms at AMC offices or websites. The good part about updating linking Aadhaar on RTA websites is that you can update … [Read more...] about How to Link Aadhaar Number to Mutual Funds Online in 5 minutes?
There are two broad categories of mutual funds viz. Open ended mutual funds and Closed Ended Mutual Funds. What are Open-ended and Closed Ended Mutual Funds? In case of an open-ended mutual fund, you can enter and exit fund scheme whenever you want i.e. you can buy units from the fund house and sell the units back to the fund house whenever you want. All the popular mutual … [Read more...] about Avoid Fixed Maturity Plans (FMPs) in your Mutual Fund Portfolio
Last week, I came across an advertised from SBI Mutual Fund in ET Wealth where the AMC extolled the virtues of Systematic Withdrawal Plan (SWP) from an equity mutual fund. Through an illustration, SBI AMC tried to demonstrate how a SWP from an equity fund is a better choice than fixed deposit for regular income. One of the excerpts in the ad was “Traditional Saving … [Read more...] about How SBI Mutual Fund is misleading Investors through its Advertisements?
With mutual funds, you can take exposure to equity markets (both domestic and foreign), debt investments, gold and now even real estate and at the same time have your money managed by professional managers. You do not need big upfront amount to start investments. You can start small with even as low as Rs 500 per month. You do not need any special investment expertise. You can … [Read more...] about Why I prefer Mutual Funds over other investments?