In an earlier post, I looked at how you can select a liquid fund. In this post, let’s look at how you can extend the same argument to selecting debt mutual funds for your portfolio. The pointers used in liquid funds can be extended to any debt fund. However, since we are looking at a much wider choice, there are a few additional aspects that must be considered. In the case of … [Read more...] about How to select a Debt Mutual Fund for your portfolio?
Over the past few years, we have seen debt mutual funds being promoted as a replacement for fixed deposits. I do not deny that there are a few clear benefits and debt mutual funds may provide better tax-efficient returns as compared to bank FDs. However, the return of principal is more important than return on principal. And the events of the past few years (ILFS default … [Read more...] about How to select a Liquid Fund?
In an earlier post, I discussed how NRIs can invest in mutual funds and the challenges they face while investing in India. In this post, let’s look at mutual fund taxation for NRIs (non-residents). NRI Mutual Fund Taxation: How is it different from residents? There are a few minor differences. #1 Long-Term Capital Gains Tax on Debt Funds For … [Read more...] about NRI Mutual Fund Taxation: How NRI Mutual Fund Investments are taxed?
One big advantage that ULIPs have over equity mutual funds is that the maturity proceeds from ULIPs are exempt from tax. On the other hand, the long-term capital gains on the sale of equity mutual funds are taxed at 10%. LTCG on sale of debt mutual funds is taxed at 20% after indexation. In an earlier post, I highlighted why I still prefer mutual funds over ULIPs. I don’t deny … [Read more...] about If you are old, avoid ULIPs
In one of my earlier posts, I discussed how you can avoid distribution costs by investing in direct plans of mutual fund schemes. I also established the quantum of long-term savings you stood to make by investing in direct plans of MF schemes. To find out more about direct plans, read my article in Business Standard about direct plans of mutual funds here. In this post, I will … [Read more...] about Why NAV of Direct Plans is higher than Regular Plans of MF schemes
As a non-resident, you may want to take exposure to Indian equity markets. Picking up stocks on their own is not everybody’s cup of team. Such non-resident investors may take exposure to equity markets through equity mutual funds. In this post, I will discuss answer basic queries that an NRI investor may have about mutual fund investments in India. I will also discuss the … [Read more...] about How can NRIs invest in mutual funds in India?
Mutual Fund Direct plans have been around for over 5 years now. Under direct plans of mutual fund schemes, you invest directly with the mutual fund house. There is no intermediary or distributor involved. Hence, you save on intermediary costs. This reflects in better returns as compared to regular plans of MF schemes. Under regular (or distributor) plans, you invest through a … [Read more...] about Performance Comparison: Direct plans vs. Regular plans of Mutual Funds
The awareness about direct mutual funds (or direct plans of mutual fund schemes) is increasing. And why not? You stand to earn higher returns for no additional risk. It is foolish to invest in regular plans if you are a do-it-yourself investor. You are compromising on returns for no hint of advice. Even for those who need assistance, it may be a good choice to work with a … [Read more...] about Best Mutual Fund Direct Plan Platforms in India (How to invest in Direct Mutual Funds online?)
Every few months, we see Non-convertible debenture (NCD) issues from various companies. As on date (September 7, 2019), the NCD issues from Tata Housing, Aadhar Housing Finance and IndiaBulls Commercial Credit are live. Should you invest in such NCDs? Well, in this post, I will not review any particular issue of NCD. I will focus the benefits and risks involved in investing … [Read more...] about Should you invest in Non-Convertible Debentures (NCDs)?
Introduction on tax on the long-term capital gain (LTCG) on the sale of equity funds/shares is a clear pain point for the equity investors. If you rebalance your portfolio at regular intervals (which you should) or have been planning to switch your regular plan investments to direct plan, you will have to incur some cost now. Earlier (before the introduction of the tax on … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?