Nippon India Nifty 50 Value 20 Index Fund is an open-ended passive fund that will track the Nifty 50 Value 20 Index. The NFO period of this fund is from Feb 4th to Feb 12th 2021. This article looks at the risk and reward of the underlying index and answers if it makes sense to…
Continue reading →Finance Bill 2020 has proposed that contribution above 2.5 lakhs by employees into recognised provided funds will be taxed. If an excess contribution is made in one financial year, will it be taxed only in that year or in subsequent financial years until maturity or withdrawal? While a precise answer to this is not available…
Continue reading →Use this free calculator to find out the taxable EPF interest on employee contributions over 2.5 lakhs. This exact calculation is a follow up on this simple illustration: How employee contributions over 2.5 lakhs get taxed like an FD. If you wish to avoid this tax, you can consider alternatives discussed in this article: With PF…
Continue reading →Here is a list of stocks with momentum and low volatility for Feb 2021 from the Nifty 100. This month as many as 54 stocks qualify after filtering Nifty 100 with (1) positive 1-year return, (2) positive six-month return, (3) price > 200-day moving average, (4) 50% of daily positive returns, (5) lowest volatility. What…
Continue reading →From 1st April 2021 onwards, the interest on any contribution above Rs. 2.5 lakh by an employee to a recognised provident fund is taxable as per the provisions of the Finance bill 2021. Here is a simple illustration of how the tax works: How employee contributions over 2.5 lakhs get taxed like an FD. Many have…
Continue reading →We had earlier reported that the Finance Bill 2021 has proposed that employee contributions over 2.5 lakh will be taxed as per slab. Here is a simple illustration of this works. Update 1: Find out taxable EPF Interest with this calculator <= This is the exact calculation Update 2: The Central Board of Direct Taxes has…
Continue reading →Budget 2021 has only one offering for senior citizens. If some conditions are met, those aged 75 and above need not file income tax returns. They have to pay the necessary tax but need not file returns. The conditions for exemption from filing ITR from 1st April 2021 are: The senior citizen should be a…
Continue reading →Finance Bill 2021 has extended the provisions of the five lakh deposit insurance. Earlier it applies to only banks that went bust (liquidation). From 1st April 2021, the insurance will also apply to banks placed under temporary restrictions by the RBI. Investors can redeem up to Rs. five lakh from banks under stress. This may…
Continue reading →From 1st April 2021 onwards, the interest on any contribution above Rs. 2.5 lakh by an employee to a recognised provident fund is taxable as per the provisions of the Finance bill 2021 announced today. Update: Find out taxable EPF Interest with this calculator That is, if the total employee PF contribution (mandatory + voluntary) contribution is…
Continue reading →Finance Bill 2021-22 has proposed to tax gains from ULIP with a premium of more than Rs. 2.5 lakh per year to remove the disparity relative to mutual funds. This means from Feb 1st 2021 if you buy a new ULIP with a premium of more than Rs. 2.5 lakhs the maturity proceeds will be…
Continue reading →In the seventh edition of personal finance audits by readers, we meet 30-year old Rohit whose early struggles led him, to start investing early in a goal-based manner. As regular readers may be aware, we publish a personal financial audit each December – this is the 2020 edition: How my retirement portfolio performed in 2020. This…
Continue reading →In this article, Venkat describes how an incident in a “Xerox shop” changed his outlook on financial independence and financial literacy. Venkat, 32, changed his perspective towards personal finance when he came across the idea of FIRE – financial independence and early retirement. He then invested more than ten hours as a hobby and went on…
Continue reading →There are currently 32 index funds with at least one-year history as on Jan 28th 2021. If we compare their one-year trailing returns with the respective benchmark (total return indices), six index funds are outperforming! That is, their one-year return is higher than than the one-year index return! Why does this happen? Although the stocks…
Continue reading →The AUM (asset under management) of mutual funds reported in most online portals is the total value. AUM of the regular plan (commissions removed before NAV declaration) plus AUM of the direct plan (no commissions). In this article, we list the most popular direct plan mutual funds – that is the ones with the largest…
Continue reading →IDFC Bank Credit Card is a new offering from IDFC Bank. Just like the pricing of its Savings Account, i.e. 7% for all balances less than INR 1 Crore, it appears IDFC Bank is planning to disrupt the unsecured lending space in India as well – through its business model for credit cards what you…
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