Fee-only Advisor Journey: Melvin Joseph’s determined struggle to the top

Melvin Joseph one of India’s first SEBI registered Investment advisor with no direct or indirect ties with product commissions shares his journey: from struggling to find clients to becoming one of the most enterprising, successful, yet ethical and affordable fee-only financial planners in India and dare I say, the world.

While I was trying to build a list of fee-only financial planners in 2013, it is by sheer chance that I encountered Melvin Joseph’s post on Facebook. Somone had asked him about mutual funds and Melvin had replied that he has never sold mutual funds in his life. Then he immediately became part of the list which is now hugely popular, thanks to Google, Quora and FB group Asan Ideas for Wealth with 1000-2000 views per month. read more

Should I expect lower returns from equity in future?

The re-introduction of equity LTCG tax offers not only a chance to clean up our portfolios, but also recognise an important fact: returns from equity may gradually decrease in the next decade or so. No, I am not talking about tax eating away our returns. There are two reasons for this, – one positive and one not so much. We will consider the positive reason in this post.

Yes, the equity LTCG tax (assuming it stays at 10% for a few years) will reduce returns by at least 1% as shown in this study: Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1. So I will now expect 9% from equity (instead of 10%). As explained below, this also means fixed income returns will come down, to about 6-7% after LTCG tax. With that, let us get tax out of the way and consider some history. read more

What if I cannot invest enough for my financial goals?!

A financial goal planner is as much a curse as it is a blessing! A goal planner is the simplest way to recognise the impact of inflation for long-term goals and the need to combat it with a combination of (a) with a portfolio that produces a return above inflation (after taxes!) and (b) by investing enough. ‘But what if I cannot invest enough for my financial goals?’ is a common problem. In this post, I revisit this issue triggered by a recent thread in Facebook Group, Asan Ideas for Wealth. read more

How tax (DDT) affects mutual fund dividends and lowers return (examples)

We are aware that debt mutual funds are subject to a dividend distribution tax (DDT). From April 1st 2018, equity mutual funds will also be subject to DDT. Here some examples as to how DDT affects mutual fund dividends and lowers returns.  This post is in response to Ankit Jain’s comment in Equity Mutual Fund Dividends are taxed 12.942% (not 10%): Here is how to avoid this.

What is dividend distribution tax and how does it work? read more

Clean up your mutual fund portfolio before March 31st 2018!

Every dark cloud has a silver lining. The Equity LTCG tax and the dividend distribution tax on equity mutual funds from April 1st, 2018 is the perfect stimulus to clean up our mutual fund portfolios. Here is how to do it.

1: Update your portfolio. Have all your mutual fund holdings in one place. Not applicable to those who slow down the Value Research server every day from 8:10 – 10:30 pm checking for the day’s gains and losses and wonderful insights from those. read more