What are tax-free bonds and how they work

What are tax-free bonds and how they work

Indian investors seem to be spoilt for choice when it comes to investing. From investment schemes offering monthly, quarterly, half-yearly as well as annual returns, to schemes offering taxable as well as non-taxable returns, the list is endless. Choosing the right investment avenue, therefore, may not be as easy as it appears. One of the hugely-popular investment options, especially among high net worth investors, is tax-free bond. Let’s see what these bonds are and how they work. What are they: A bond is a fixed income instrument carrying a coupon…

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Heard on the Street! After 30K, analysts are projecting a target of 45K by 2020

Heard on the Street! After 30K, analysts are projecting a target of 45K by 2020

One of the major factors, driving optimism in the market, is the recovery in earnings growth along with the implementation of government reforms in Asia’s third largest economy which is growing at 7 percent rate, faster than most developed and EM economies.   When Sensex hit 20,000 back in 2007, the Street was anticipating a number of 30K on the index in a hurry, but nobody was aware of the global financial crisis that would hit equity market the very next year, which would take the index towards 10K in 2008,…

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ESOP holders go for equities, avoid realty & IT stocks

ESOP holders go for equities, avoid realty & IT stocks

ET Intelligence Group: For top Indian information technology professionals sitting on a bulging pile of employee stock options (ESOPs), a diversified portfolio of equities is fast emerging as the preferred investment tool over the traditional themes of real estate and information technology (IT) stocks. Assets under management (AUM) of boutique portfolio management services (PMS) firms such as Trustline Holdings and Right Horizons, which primarily manage money of top IT executives,  have surged by 30-40% in the past two years. On average, such PMS firms reported over Rs 100 crore of…

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Should you invest in current tranche of sovereign gold bonds?

Should you invest in current tranche of sovereign gold bonds?

Investment advisors say the bonds offer a good portfolio diversification option. They also offer the twin benefit of capital appreciation and regular returns, besides not having the risk of handling like physical gold. The 7th tranche of Sovereign Gold Bonds (SGBs) which is now open for subscription provides a good option for portfolio diversification coupled with an element of stability, say investment advisors. “We would advise investors to invest in SGBs, especially those who don’t have any exposure to gold as it will help in hedging their portfolio,” says Aasif…

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Fact sheet: Key tool for investors

Fact sheet: Key tool for investors

Understanding information in this document correctly can make you proficient mutual fund investor By Anil Rego If you have questions about a mutual fund scheme that you own or plan to purchase, one source that you can turn to for reliable information is its fact sheet. This document contains a wealth of information and insights. Reputed fund houses provide more information in this document than is legally mandated. By reading it carefully, an investor can glean useful insights about a fund’s past performance, the level of risk it carries, and so…

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I am 25 years old and want to invest in mutual funds. Please suggest options for longterm

I am 25 years old and want to invest in mutual funds. Please suggest options for longterm

I am 47 and want to start investing in mutual fund SIPs to build a retirement corpus. I can invest 10,000 per month. Please suggest how and where to invest this sum. Start by investing 4,000 in HDFC Balanced, 4,000 in Franklin India Prima Plus and 2,000 in debt fund Birla Sun Life Dynamic Bond. Please increase your SIP by 10-20 per cent every year as you have just about 13 years to build your corpus. (Answered by C.R Chandrasekar, CEO and Co-Founder, FundIndia.com) I am 25 and earn Rs…

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Rediff Q: Will this Budget be a gamechanger?

Rediff Q: Will this Budget be a gamechanger?

Harsh Roongta, Mahesh Padmanabhan, Anil Rego answer the most sought after questions on Budget Day. Rediff Q: What are your Budget expectations/wishlist? Harsh Roongta, Investment Advisor, harshroongta.com  • Fiscal deficit in control for the next year as per FRBM. • Aggressive tax compliance assumptions will be taken. • Aggressive growth assumptions for agri and manufacturing will be assumed. • DBS and electronic payments for all government payments. • Expansion of subsidy programmes for low income households, but at lower outlay through better targeting due to DBS. • Tax on cash…

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Tax Breaks beyond Sec 80C – Know them

Tax Breaks beyond Sec 80C – Know them

While most of us are aware and familiar with the tax deductions under Sec 80C, it is important that we do not miss out on the other available deductions. Here’s list of deductions you can avail. Medical Insurance Premium. Sec 80D: We sure cannot miss out on this one. When someone in the family, meets with an accident, or succumbs to an illness, the medical expenses can completely wipe out the savings of the family. Paying adequate medical insurance premium for a policy is a financial discipline,that not just safeguards…

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Varishtha Pension Bima Yojana (VPBY) 2017 with 8% guaranteed Pension: Things to know

Varishtha Pension Bima Yojana (VPBY) 2017 with 8% guaranteed Pension: Things to know

The Varishtha Pension Bima Yojana (VPBY) 2017, a scheme unannounced by the Prime Minster  Narendra Modi on new year eve was approved by the cabinet on Tuesday. Post demonetisation banks are slashing interest rate on fixed deposits. Therefore, to guard the interest of the senior citizens (above 60 years of age) in case of falling interest rates, PM Modi announced this scheme with a guaranteed interest of 8 per cent for 10 years The scheme will be launched by Life Insurance Corporation of India on April 1st as per sources….

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Budget 2017: 10 money moves you should make before Budget

Budget 2017: 10 money moves you should make before Budget

Personal finance advisors say sticking to a long-term plan based on goals would be the best way to deal with the uncertainty surrounding the Budget.  The run-up to the budget is filled with expectations and speculations on what is likely to be announced by the Finance Minister on D-day. There are news of possible Income tax changes, changes in saving schemes, possible tweaking of the retirement savings landscape and changes in tax treatment of capital market related investments. But only few in the inner circles of the government know the…

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