With RBI 7.75% bonds no longer available and yields from tax-free bonds destroyed by increasing demand, investors looking for a “reasonable” mix of low volatility, credit quality, tax efficiency and liquidity can consider arbitrage mutual funds for long-term goals. How can return can we expect from arbitrage funds? An analysis of all the funds in…
Continue reading →The Government recently announced the Direct Tax Vivad se Vishwas Scheme (DTVSV) 2020 to reduce litigation related to direct tax matters and provide an opportunity to willing taxpayers to settle their outstanding tax disputes under very favourable terms without payment of any interest or penalty (in cases of disputed tax demand). Let’s have a closer…
Continue reading →The RBI has announced the cessation of its 7.75 per cent Savings (Taxable) Bonds, 2018 with effect from the end of business day, May 28th 2020. Where should one invest now?
Continue reading →A comparison between tax-free bonds that are available in the secondary market and RBI 7.75% bonds that can be obtained in the primary market. Which is better and how demand for tax-free bonds have quickly made them less attractive.
Continue reading →These are the key features of the Pradhan Mantri Vaya Vandana Yojana (Modified- 2020) Scheme that launches today, May 26th 2020.
Continue reading →Falling interest rates and “risky” mutual funds have spooked senior citizens and their self-appointed advisors – their children. As always, wrong questions like “should I invest in “7.75% RBI bonds?”, “Should I buy PM Vaya Vandana Yojana?” are doing the rounds. A look at how senior citizens should invest in 2020.
Continue reading →Covid-19 health insurance claims are rapidly increasing in the country. With no standardised hospital pricing and reports of huge hospital bills, insurers are finding it difficult to pay out claims in full. This could mean difficulties in claim processing and future increase in the already-high premiums. What should policyholders do?
Continue reading →Considering how the NPS equity schemes have underperformed Nifty 50 and Nifty 100 total return indices, it is high time PFRDA mandates these “low cost” fund to passively track an index instead of classifying them as “active funds” that can invest in the Nifty, Nifty 100 universe.
Continue reading →With the repo rate at its lowest, fixed-income investment rates which were already heading south over the last few years are likely to stay there and move down further in future. Equity returns have been consistently heading lower and lower too. This can destroy all financial plans especially retirement which does not come with a…
Continue reading →The NPS has a portfolio management fee of 0.01%. There is an additional custodian fee of 0.0032% and various transaction fee applicable on the investment amount (much like an airline charging extra for the seat, leg space and food). Nonetheless, a fee of 0.01320% is not only enticing but also leads one to assume we…
Continue reading →Hindu Undivided Family (HUF) is a distinct legal entity and consists of individuals who have lineally descended from a common ancestor, including their wives and children. Let us see how a HUF is formed and what are its various tax benefits.
Continue reading →If you sit and think about investment ideas without bothering to check how effective it has been in the past, many extreme strategies like buying only when the market is “low” or buying more often equals better averaging appear “intuitively” correct. When we try to validate them interesting results on SIP and lump sum investing…
Continue reading →After the Feb-March 2020 market crash, 80% of active large cap mutual funds have outperformed Nifty 50 and Nifty 100 total return indices. This is likely due to the two-year imbalance among Index stocks that was destroyed due to the crash. A performance report on active large cap funds. Have they returned? Will they do…
Continue reading →If we look at the fall in Nifty from its early Feb 2020 levels it certainly feels like a crash. After all, we witnessed the biggest intraday fall that sent the 10-year Nifty SIP Return to 2.3%; 14-year SIP Return to 5% and we also saw the biggest intraday gain after 10Y and then a…
Continue reading →One of the biggest mistakes investors make is to neve visualise their portfolio as “big” in future. They assume their portfolio value will always be comparable to what they invest each month. This results in many misconceptions like, “I can rebalance my portfolio just by changing the amount I invest”, and “I can time the…
Continue reading →