Which is the best way of investing in gold? Physical gold, Jewellery, gold ETFs, mutual funds, or Sovereign gold bonds? Let us leave out physical gold and jewellery in this post and focus on financial investments in gold. In this post, let us compare the various features of gold bonds and gold ETFs (and gold mutual funds) and assess which is a better choice. #1 … [Read more...] about Gold ETFs Vs Sovereign Gold Bonds
Exchanged Traded Funds (ETFs) and index funds are low-cost ways to build a diversified equity portfolio. Both are passive investments. Both try to replicate (and not beat) the performance of a benchmark index. For instance, both Nifty 50 ETF and Nifty 50 index fund will try to replicate the performance of an index fund. This is achieved by holding the constituents in the … [Read more...] about ETFs vs. Index Funds: Which is better?
The Reserve Bank of India has released the calendar for the Sovereign Gold Bond Scheme, 2021-2022 for the first 6 months of FY2022. The Bonds will be available for subscription in 6 monthly tranches from May 2021 to September 2021. For the tranche that is now open for subscription (May 17- May 21, 2021), the subscription price is Rs 4,777 per gram. For an online … [Read more...] about Sovereign Gold Bonds 2021-2022: Should you invest?
Covid-19 infections are on the rebound. Despite the precautions, the cases are on the rise across the country. While it is paramount that you take precautions and avoid getting infected, given the pace of spread, you must also prepare for the financial burden if you or one of your family members gets infected and requires medical treatment. One of the ways to avoid a … [Read more...] about Corona Kavach and Corona Rakshak Health Insurance Plans: Should you buy?
There is Low Volatility ETF and a FoF (that invests in the ETF) And there is a UTI momentum index fund now. I have a favourable view on both the indices. An investor asked: Which is better? Low Volatility ETF or Momentum Index fund? Should we invest in both? Easy question. Difficult answer. This post is likely to leave you disappointed if you are looking for an … [Read more...] about Low Volatility ETF or Momentum Index Fund: Which one to choose?
LIC has launched a new life insurance plan, LIC Bima Jyoti (Plan 860). LIC Bima Jyoti is a non-linked, non-participating, limited premium payment life insurance plan. Let us review this plan and see if you should invest. LIC Bima Jyoti (Plan 860): Salient Features Non-linked: It is not a ULIP. It is a traditional life insurance plan.Non-Participating: This means that you … [Read more...] about LIC Bima Jyoti (Plan 860): Review
The Budget 2021 changed the way Unit Linked Insurance Plans (ULIPs) will be taxed. This reduces the difference between the taxation of mutual funds and ULIPs. Let's find about how ULIP taxation has changed. What is the new rule about ULIP taxation? If you buy a ULIP on or after February 1, 2021 and the aggregate annual premium of such ULIP (ULIPs) exceeds Rs 2.5 lacs … [Read more...] about How ULIPs will be taxed? (After Budget 2021)
In Budget 2021, the Government has introduced a tax on interest on employee contribution to EPF over Rs 2.5 lacs in a financial year. The Government rationale is that many HNIs are 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 Tax on EPF: Will the Interest on Taxable Interest be taxed?
A simple way is to invest in risk-free assets (Government bonds, PPF, EPF, bank fixed deposits). You will never see losses. However, by shunning risk completely, you might have to compromise a bit on the long-term returns. And if you consider risky assets (gold or equities) for higher returns, you must prepare yourself for portfolio losses too. At the same time, avoiding … [Read more...] about How to reduce losses in your Portfolio?
If you are not fond of actively managed funds, an investment in a Nifty 50 index fund provides you exposure to a diversified equity portfolio. However, Nifty 50 consists of stocks from different sectors (banking, pharma, energy, commodities, IT, consumer goods, automobiles etc). Here is the sectoral breakup of Nifty 50 (as on December 31,2020). Can we better the … [Read more...] about Nifty 50 vs. Portfolio of Banking + Pharma + IT stocks: Which is better?