Mutual Funds | Insurance | Investment |

As the financial year-end nears, a lot of people look to save paying taxes and invest in various financial products investment in which gives tax rebates. The most used section for claiming deductions is the 80C section under which an exemption of Rs. 1,50,000 is allowed. For a person in the highest tax bracket (30%) this contributes to directly saving more than Rs. 45,000 in taxes which otherwise would have to be paid. Section 80C permits investment in a wide range of investment products like Tax Saver FD, PPF, Insurance Policies, House Loan EMIs (Principal portion) and Mutual Funds (ELSS). All the options are popular. In this short post, we would like to throw some light on ELSS funds. Equity Linked Savings Scheme or ELSS is a type of mutual fund by investing in which the investor gets the benefit of 80C. Investors can invest any amount in ELSS funds but exemption only up to Rs. 1.5 lakhs can be taken. ELSS funds come with a lock-in period of 3 years which is the lowest lock-in

A lot of investors are unsure of the tax treatment of their mutual fund investments. Many times we advisors get calls from the investors enquiring about their tax liability even in cases when the investor hasn't made any redemption during the financial year. There is a lot of confusion regarding the topic and by this post, we would try to throw light on the taxability of mutual funds in India. Equity Funds An equity fund as discussed in our previous posts is one in which at least 65% of the corpus of the fund is invested in equity and equity-related instruments. Since investing in equities is risky so to compensate for the risk, the favorable tax treatment is given to equity funds. The gains on equity funds are clubbed under short term and long term capital gains (STCG & LTCG). If the amount is withdrawn before 1 year from the date of investment then it is classified as STCG and the profit portion is taxed at 15%. Any redemption above 365 days is considered as LTCG an

Mutual Funds are undoubtedly the simplest of the products when it comes to investing in financial products. Also true is the fact that the majority of the people have little knowledge about the characteristics of mutual funds. The onus of this error lies not on the investors but the advisors. Advisors are more focused on the closure of the sale, missing the point that the sale isn't closed just by picking the cheque but also by explaining the client of the characteristics of the fund and telling the client as to how does the fund mingle with the investor's risk-return profile. In this post, we shall talk about the types of mutual funds: Equity Funds Equity or stocks or shares represent ownership in a company. In an equity fund, the money is invested in shares of different companies and the fund manager buys and sells shares regularly to generate a return. Equity funds are of different types, based on the kind of shares a particular fund buys (large-cap, mid-cap, etc.) r

In the first series of articles that we will publish on PaiseVaise we will try to clear the basic doubts of our readers when it comes to investing in various financial products. The first product that we cover is "Mutual Funds". Mutual Funds are nothing but investment vehicles where a group of investors come together, pool in their money and give the same to a mutual fund company (called an Asset Management Company or AMC) whose fund managers manage the money on the behalf of the group of investors for a nominal fee. The aim of the AMC is to generate the best possible return that is in line with investors' risk-return profile which in turn (ideally) should match with the specific fund's investment style. While the types of mutual funds and the expected returns portion will be covered in a separate thread, here, today we will be touching on the ways to put your money in mutual funds. Systematic Investment Plan (SIP) Often you would come across friends, coll

The budget for the year 2020-21 was tabled in the parliament on 1st Feb 2020. Markets expected relief measures in the form of tax cuts, big bailouts, LTCG write off to just name a few items. But, the budget speech, though the longest in history didn't have any of the much-expected relief measures. The stock markets which are ready to fall at slightest of the news nosedived, falling almost 1,000 points, a figure that you don't see quite often. Lakhs of crores of rupees got wiped off on the day of Feb 1, 2020. That day, investment advisors (like FinRise) got almost 3x-4x the number of calls we receive on a normal day. The content of the conversation on any other day is to enquire about the general market mood or to invest/redeem/switch money from one or more financial products. But on that specific day, we attended to agitated investors who were facing a portfolio level loss of ~2% in a single day (for an aggressive investor). Investment advisors had to talk to this set of a