Do you believe in working with an asset allocation approach in your portfolio? Do you rebalance your portfolio at regular intervals? Is there a merit in dividing our portfolio in assets with low correlation? In this post, let us construct a multi-asset portfolio combining domestic equity, international equity, and gold and see if delivers superior performance compared … [Read more...] about Adding Gold and International Equity to the Portfolio: Does it enhance Portfolio Performance?
Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act? (Latest Rules)
The Finance Minister presented the Union Budget 2020 on February 1, 2020. Here are the key hNew Taxighlights of the Union Budget from personal tax perspective. There have been quite a few changes this time around. Therefore, I have divided the post into 5 broad sections. Change in Income Tax SlabsChange in Mutual Fund Taxation (includes dividend taxation and … [Read more...] about Budget 2020: New Tax Slabs, Tax on Dividend, Employer Contribution to NPS/EPF And Some Mess for NRIs
You invest Rs 10,000 on January 1 every year for 20 years. In the first case, you earn a constant 6% p.a. for the first 10 years and 12% for the last 10 years. In the second case, you earn a constant 12% p.a. for the first 10 years and 6% p.a. for the last 10 years. Will you end up with the same corpus in both the cases? After all, Compounded Annual Growth Rate (CAGR) is the … [Read more...] about How do you calculate your Mutual Fund Returns: CAGR, IRR or XIRR?
If you are an NRI, you may be able to get a loan at a very low rate of interest in your country of residence? If you have such an option, you may feel tempted to take a low cost loan and invest in India. For instance, let’s say you can borrow at 3% p.a. abroad and invest in India in NRE fixed deposits at 7.5% p.a. Looks a very good deal, isn’t it? Alternatively, if you … [Read more...] about NRI Corner: Plan to take a loan abroad to invest or replace a loan in India?
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 residents, LTCG (holding period … [Read more...] about NRI Mutual Fund Taxation: How NRI Mutual Fund Investments are taxed?
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?
There are not many things I dislike more than policy flip-flops. You cannot make a decision if the Government, bureaucracy or the regulator is trigger happy. Something similar has happened to policy on NRIs holding PPF accounts. Add to that, incompetence and non-customer-centric outlook of many bankers, the misery of an honest taxpayer and investor can only compound. In its … [Read more...] about NRIs need not close their PPF account, atleast for now
With each passing day, Aadhaar card is occupying greater and greater space in our lives. We have been asked to link Aadhar card to our mobile phones, bank accounts, PAN card, investments, and insurance. You need to link Aadhaar card to get various basic services such as availing LPG subsidy, service pension or filing income tax returns etc. You might have to take a bit of pain … [Read more...] about Aadhaar card not mandatory for NRIs
This is not a good news for NRI (non-residents) who have invested in PPF accounts. As per a recent Government notification, PPF accounts have to be closed when the account holder becomes an NRI (non-resident Indian). As I understand, the definition of NRI (person outside India) as per FEMA will be considered (and not as per Income Tax Act). So, if you are going abroad for … [Read more...] about NRIs have to close their PPF Accounts