The day after Budget 2018 proposed LTCG tax on equity and equity oriented mutual funds, life insurers saw an opportunity to push ULIPS as the “go to” instrument now. Abandoning mutual funds in favour of ULIPS only to avoid the LTCG tax is like undergoing chemotherapy to shave a head (Robin Williams*). In this post, I…
Continue reading →It was announced in Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10%. Here is an illustration of how much long-term capital gains tax you need to pay on a long-term systematic investment in equity or equity mutual funds. This is part one where the LTCG tax after each year of investment…
Continue reading →Here are eight lesser-known, but important budget 2018 proposals. I have now updated the three budget articles posted yesterday. Please do have a look: UPDATE: Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1 Long-Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) Budget 2018-2019: Long-Term Capital Gains from Equity to…
Continue reading →As published it was announced in Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10%. Here are some examples of how this works. Example 1: I purchase 10,000 units of an equity oriented fund (or stock, see definition of fund in the above post) at Rs. 10 NAV per unit on 4th Aug…
Continue reading →Budget 2018 has a slew of benefits for senior citizens. Here is a list. Also see: Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10% – Implications New: Long Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) UPDATE: Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1 1:…
Continue reading →The Economic Survey 2017-2018 was published yesterday with a clear warning that the stock market valuations are too high and unless earnings increase, a correction should be expected. The survey also argued that the bond market seems to have forgotten about the growth in the national small savings fund. Amidst the euphoria about increased GDP growth…
Continue reading →All of us dream. Some of our dreams are serious enough to become goals and like it or not, many dreams are financial. That is they require money to implement. Here are three key factors that decide how well we can achieve our financial goals. Although each individual is different, there are some similarities. This…
Continue reading →Each time the markets move up for a few sessions, it makes many investors uncomfortable. Is it a bubble? Is it euphoria? They wonder and if the movement results in an all-time time, the worry machines are turning in full swing. In this post, I discuss some reasons for this investor behaviour and how one…
Continue reading →We discuss how to create a retirement income plan with 27-year old Amar as a case study. We shall consider asset allocation for each year of investment before and after investment and how Amar can derive an inflation-protected income and be financially free after retirement. This is step 11 of Re-assemble, a series on the basics…
Continue reading →Claim settlement ratios (CSR) published by IRDA do not represent the probability of claim acceptance. Most private insurers have a claim settlement ratio comparable to that of LIC. Therefore the CSR will not help you choose a term life insurance policy. At best, CSRs would help you reject a few insurers. Here are some insights…
Continue reading →How much return can I expect from the stock market? What is long-term in the stock market? What is the risk associated with the stock market? Regular readers may be aware that I have discussed these questions with returns and risk spreads from time to time. In my most comprehensive analysis, Sensex return charts for…
Continue reading →I discuss simple ways in which a mutual fund portfolio associated with a long-term goal can be reviewed. This is a grey area in personal finance and there is no optimal way to do this. Each individual must necessarily develop their own style of review. So multiple solutions are the norm here. This post is…
Continue reading →This is part one of an investment planning case study in which we consider how to create an investment plan step by step using real data obtained from readers belonging to different age groups. This is step 10 of Re-assemble, a series on the basics of money management aimed at beginners and young earners. So far…
Continue reading →Download a free spreadsheet Mutual Fund Portfolio Growth Visualizer With Index Benchmarking. This will allow you to compare the growth of your mutual fund portfolio with a variety of BSE and NSE benchmark indices. This was to compare my retirement equity portfolio with Sensex and Nifty Next 50. Now it is your turn! Along with the sheet,…
Continue reading →When the personal financial audit 2017 was published, I had discussed how my equity retirement portfolio has grown with time and also mentioned that a tool with which you can do the same is on the works. It is now nearly complete. In this post, I use the tool and compare my equity mutual fund portfolio (retirement)…
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