New Pension scheme rules: How to invest wisely now!

New Pension scheme rules: How to invest wisely now!

From April 1, subscribers will be able to change investment option & asset allocation twice a year, instead of once. Use greater flexibility offered by pension schemes judiciously, experts tell Sanjay Kumar Singh. Until now, subscribers in the National Pension Scheme, NPS, could change their investment option (active or auto choice) and asset allocation (the percentage allocation of your investments to different asset classes such as equities, corporate bonds, government securities and alternative investments) once in a financial year. According to a recent circular from the Pension Fund Regulatory and…

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Invested in equities: Retail investors have to be patient

Invested in equities: Retail investors have to be patient

Every fund manager and financial planner has a single piece of advice for retail investors : Stay invested in equities for the long term. And, whether it is retirement corpus, children’s education or any other long-term goal, the same advice is given out. How long is long-term? When returns over five years or eight years are bad, investment planners are quick to say the tenure should be longer. At the very outset, let’s set the record straight. Equity investments are fruitful over the very long 20-year term. According to data…

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Why costly funds can deliver more

Why costly funds can deliver more

A study of funds with a higher expense ratio reveals that some of these funds’ returns over a three and five-year period are among the best. The expense ratio charged by mutual funds is once again under the spotlight. The market regulator, SEBI, is considering lowering the ceiling for the total expense ratio (TER) from the current 2.5% for equity funds. The TER for many schemes is as high as 300 basis points or 3% of the assets under management (AUM). One way to avoid paying such a high cost…

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Seventh Pay Commission: How Employees Can Invest Rs 1 Lakh Crore Bonanza

Seventh Pay Commission: How Employees Can Invest Rs 1 Lakh Crore Bonanza

Investment recommendations for the beneficiaries of Seventh Pay Commission announcement In a big bonanza for 1 crore government employees and pensioners, the Union Cabinet today approved the Seventh Pay Commission’s recommendations. Effective January 1, government staff salaries will go up 23.5 per cent. The Seventh Pay Commission’s recommendations also influence wages of employees of state-owned firms, local bodies and 29 states. Including pensioners, analysts say that 3 crore people will be directly impacted by the Pay Commission’s recommendations. So if you are among the beneficiaries, have you decided where you…

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