Whenever I deride an insurance and investment combo plan, I get many queries about how to invest for your kids’ education. When you are planning for kids’ education, your biggest concerns are: Where to invest i.e. choosing the right product to accumulate funds for their education If something happens to you, your planned savings for the kid’s education must not … [Read more...] about How (not) to invest for Children’s education?
Long Term Capital gains on sale on debt mutual fund units are taxed at 20% after indexation. That is primarily the reason why many investors choose to invest money in debt mutual funds if the investment horizon is more than 3 years. I am talking about money that you don’t want to invest in volatile assets such as equity. While this is mostly correct, this may not always hold … [Read more...] about How a low growth in CII can affect your post-tax returns and investment choices?
SEBI mandated rationalization and categorization of mutual fund schemes in October 2017. With this rule, all the existing mutual fund schemes had to fit in one of the categories specified by SEBI. There was an additional rule of only one fund per category per AMC. This resulted in many existing MF schemes getting merged in a new scheme. From an investor’s perspective, this is … [Read more...] about How to calculate capital gains and returns? (After MF scheme mergers due to SEBI Categorization)
SEBI had initiated categorization and rationalization of mutual fund schemes vide its circular dated October 6, 2017. SEBI specified a few fund categories and mandated each fund house could have just one fund in each category. The aim was to reduce the number of funds and make life easier for investors by reducing confusion around scheme names. For more on SEBI categorization … [Read more...] about Different Types of Debt Mutual Funds (SEBI Categorization Rules)
There is a BIG difference between financial planning for retirement (accumulation phase) and financial planning during retirement (decumulation phase). Let’s look at what I mean. In this post, I will limit the discussion to investments. Financial Planning for Retirement (Accumulation Phase) During this phase, you are trying to accumulating funds for retirement. Quite … [Read more...] about Financial Planning For Retirement vs. Financial Planning During Retirement
The process of setting up SIPs at MF Utility just got simpler. MFU has introduced an online PayEezz registration feature “ePayEezz”. Not only can this feature do away with the need for physical forms but also reduce the registration time from a few weeks to a couple of days. What is PayEezz? PayEezz is one-time ECS/NACH mandate form that you give to MF Utility. With this … [Read more...] about MF Utility: How to set up PayEezz mandate online (ePayEezz feature)
We have already seen how to link your Aadhaar number to your Mutual fund investments. If you have not linked Aadhaar number to MF investments yet, you can go through this post and update your Aadhaar number in your MF investments within a few minutes. Read: How to link Aadhaar number to your MF investments? However, there is one problem. The linking does not happen … [Read more...] about How to check your Mutual Fund-Aadhaar Card linking status?
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 After tax on LTCG, are ULIPs better than Equity Mutual Funds?
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