There are very few things life that I am absolutely sure of: (1) nature is subject to a set of physical laws -elegant or otherwise, (2) all Gods are one and the same and (3) each species has a stronger sex and in the case of homo sapiens, it is the female (like most other species)….
Continue reading →I see more and more people wanting to approach financial planners. Quite frankly I don’t see this as a good sign. Simply because choosing a financial planner is harder than doing it yourself. In this post, I would like to discuss a simple way to figure out the intentions of the financial planner you had…
Continue reading →Let us take a look at the investment options available for short-term goals. Since the time the article was written, equity LTCG above Rs. one lakh is taxable and dividends from equity mutual funds are taxable at 10% + cess at source (DDT). So kindly keep this in mind when you read the relevant sections….
Continue reading →The dividend distribution tax associated with debt mutual funds (dividend payout and dividend reinvestment options) has been hiked again in this budget. Last year, the government changed the way in which the DDT was calculated. (read more here). The DDT hike by a huge extent: from 22.073% to 28.325%. This year, they have increased the…
Continue reading →So the Sukanya Samriddhi Account is now EEE. Investments, interest and maturity are tax-free like PFF. Here is why it means nothing and why I will never invest in it if I have a daughter (I don’t). 1) You can withdraw only 50% at the age of 18. My imaginary daughters education is more important to…
Continue reading →If you are in Facebook Group Asan Ideas for Wealth (AIFW), chances are you would have encountered the acronym MDBSC* many times. Newcomers wonder what it stands for and wonder why there is a *. At a time when every news channel, financial services portal and blogger with an eye on Google Adsense earnings…
Continue reading →Suppose I have 70 lakhs with me and would like to generate an inflation-protected income for as long as possible, how and where should I invest? The following is based on the Inflation-protected Income Simulator, and a thread at facebook group, Asan Ideas for Wealth (some inputs have been modified) A more detailed how to generate inflation-protected income…
Continue reading →Thanks to the ‘bull run’, ELSS mutual funds are projected as a ‘good’ last minute tax savings instrument. If you are thinking about tax deductions only now, do not use ELSS mutual funds. Last minute tax-savers are not interested in preaching: how you should integrate tax planning with goal planning, plan for it at the start…
Continue reading →Do you even need a financial planner? Money management, especially inflation proofing long-term goals, is not rocket science. Then again, even rocket science is not rocket science! The inclination to act, coupled with commonsense is all that is required. So the answer is, a financial planner is not necessary. Of course, financial planners and ‘independent’ financial advisors…
Continue reading →A long time ago in a galaxy far, far away (that is how the Star Wars movies open), the idea of getting a government job was held in high esteem. Thanks to the boom in the services industry, that is no longer the case among our youth. However, one remanent from that bygone era continues…
Continue reading →Use this tool to compare the risk-adjusted year-on-year performance of two mutual funds over the last 8 years. This is an alternative to the previously published, fund A vs. fund B mutual fund analyzer, in which the comparison could be made for investment durations ranging from 1-8 years. This year-on-year analyzer allows you to compare funds…
Continue reading →“Invest according to your risk appetite” is a refrain often seen in personal finance articles. This is as useless as it is meaningless. The single most important ailment among investors is their inability to recognise appropriate benchmarks and objectives inflation as the primary benchmark for long-term goals capital preservation as the primary objective for short-term goals tax-efficiency…
Continue reading →Here are few tough questions directly or indirectly to personal finance, that I have encountered. I do not propose answers but only wish to point out certain neglected aspects that must be considered before a decision is made. Let us start with a familiar question: Should I rent or buy? The answer is simple only…
Continue reading →If you have used a retirement calculator, you will know exactly what the title refers to! If you have not used a retirement calculator before, you are missing out on a wonderful opportunity to get all stressed up! Freefincal has its origins in retirement calculators. I have a wide range of sheets, the most popular of…
Continue reading →Answers to a frequently asked questions on investment returns. 1. What return does the moneycontrol portfolio manager calculate? It calculates the absolute return. That is the percentage difference = (value-investment)/investment. This does not represent how your money has compounded. Ignore it. Use Value Research portfolio manager to get XIRR returns (a measure of compounding when there…
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