ELSS Saves Tax And Makes You Rich

ELSS Saves Tax And Makes You Rich

Heard this great saying by former US President Richard Nixon? “Make sure you pay your taxes; otherwise you can get in a lot of trouble.” Sampath a young 28 year old man, works in an IT firm in Bengaluru. He had never heard of Richard Nixon, but he knew he had to pay taxes. Sampath earned Rs 12 Lakhs a year. This salary meant he paid a lot in taxes, as he never bothered to do tax planning. He grumbled, he cursed, but he paid his taxes.  All this changed…

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Mutual Funds Better Than FD?

Mutual Funds Better Than FD?

Mahesh is 31 years and works as a lecturer in a top private college. He is well paid and earns Rs 13 Lakhs a year. Mahesh has always invested in FDs and the reason is simple. FDs are safe and offer decent interest. Mahesh stays far away from mutual funds as he believes they invest in stocks making them extremely risky. Is Mahesh Right? Do mutual funds only invest in stocks? When you say mutual fund, the first thing that come to mind is the Equity Mutual Fund. Mutual funds…

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Loan Against Mutual Funds

Loan Against Mutual  Funds

There are times in life when you just have to take loans- for a medical emergency, a marriage or a much-needed holiday. You would most likely avail a personal loan which charges high interest and struggle with EMI repayments. This is exactly what happened to Shankar, a 28 year old man, who took a personal loan to go on a holiday. Shankar a young man had dreams. He lived in the southern part of India, in a town in Kerala. He was a teacher at a nearby school with a…

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Are you picking the right Equity Mutual Fund? Here’s why it’s not easy.

Are you picking the right Equity Mutual Fund? Here’s why it’s not easy.

It may be simple to pick a good equity mutual fund today. Online Forums, advise from colleagues and friends and a peek at their portfolio; information on popular mutual fund websites are all cues which investors pick up to decide on their choice of equity mutual fund. Here’s the big question. What are investors doing to track it? How are they answering the questions on “Have I picked the right one?” or “Should I change my portfolio?” Honestly, there is no single answer or Clark’s table to answer this best….

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Consider these 5 factors while making lump-sum investments in mutual funds

Consider these 5 factors while making lump-sum investments in mutual funds

The most important principle in lump-sum investing, especially in equity funds, is to maintain your calm and equanimity. Most of us are aware of the merits of systematic investment plans (SIPs). As compared to lump-sum investing, SIP is simpler and more elegant over a longer period of time. But there are occasions when lump-sum investing becomes essential. For example, you may have received a large bonus from your company or you may have sold off a piece of land or property. These are situations that may necessitate lump-sum investing. The…

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7 triggers to suggest you should exit a mutual fund

7 triggers to suggest you should exit a mutual fund

Here are some signs that tell you to exit a mutual fund investment. In equity markets, there is a popular adage that, “Almost anybody can enter a good stock at the right time, but only the smart investors can exit at the right time.” As much as a mutual fund is a long term investment, there are some unique situations when there is a strong case for you to sell and exit your mutual fund holdings. Here are seven such instances for you to exit your mutual fund holding. The…

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Mutual Fund Fundas for the First timers

Mutual Fund Fundas for the First timers

The continuously evolving mutual fund industry in India is all set to grow. Several fund management companies and MF houses are constantly investing in investor education, yet the market penetration of mutual funds in India is at a dismal low when compared to countries like the US. However, we have figures that indicate that we have a slow yet steady growth. The growth percentage currently stands at a 7.45% (May 2017 as compared to December 2016 Assets under Management) * and the mutual fund industry in India is yet to…

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How to benefit from investments in tax saving mutual funds

How to benefit from investments in tax saving mutual funds

Apart from creating wealth over the long term, there is also an important tax benefit that you get when you invest in an ELSS. Equity-linked savings schemes (ELSS) are simple diversified equity mutual fund schemes. The only difference is that, since they offer a tax break for the investor, they entail a lock-in period of three years. Typically, ELSS funds have tended to outperform the index over the longer term horizon for a few basic reasons. The lock-in period enforces buy-and-hold discipline in the investor. When it comes to equity and…

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How ‘Tax –free’ is the Freelancer?

How ‘Tax –free’ is the Freelancer?

While the salaried hurry and submit papers on proof of investments for tax benefits before the deadline, freelancers have a different story to tell. The salaried have the employers communicate all the rules and roll out facilities that enable them file their taxes with ease. Freelancers do all the legwork when it comes to filing their taxes but enjoy comparatively higher benefits and advantages. In truth, Freelancers have the best of both the worlds.   Here’s how they claim the tax – saving deductions available to salaried individuals and the…

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Net Returns is all that matters – Asset Classes and Tax Implications.

Net Returns is all that matters – Asset Classes and Tax Implications.

As an investor it is imperative that you understand the different asset classes and its varied tax implications. It is true that every financial advisor you approach would talk about diversifying your investment portfolio and allocating your assets to a variety of asset classes depending on your risk profile and your short and long term financial goals. That’s enough of jargon talk. We’ll cut the finance babble and get to the point. First things first. Do you know how much you are taxed on your investments? Taxes make a big…

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