ELSS tax benefits are available for both Indian residents and NRIs

This article was first published on livemint. Are there any tax-saving advantages in NRI mutual funds? Equity-linked saving schemes (ELSS) allow tax saving under Section 80C of the Indian Income Tax Act. An investment of up to ₹1.50 lakh in ELSS can be claimed as a deduction from taxable income in India. These tax-saving benefits are …

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Kaun Banega Crorepati with SIP

Can you become a Crorepati by investing in mutual funds? Can a small investing technique like the SIP help you earn crores? The answer to these questions is YES. Why ask ‘Kaun Banega Crorepati with SIP’, when everyone can become one by just practicing patience. Let’s look at some examples of how small investments have …

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Best Mutual Fund Schemes for a New Investor

Investing in mutual funds is considered one of the best way to enter the financial markets and to gain the needed exposure. Mutual funds today are the only category of investment products that a retail consumer can use to effectively beat inflation while growing his wealth. People always talk about best mutual funds. But what’s …

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How to calculate returns on FDs?

Fixed Deposits or FDs are one of the most popular savings instruments in India. Investment in FD can be done for a few weeks to few years at a fixed interest rate. In this article, we will look at the two types of FDs, viz, interest payment and reinvestment. The article highlights the difference between …

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What is Annualized Return in Mutual Funds? How is it calculated?

‘Return’ is the yield that an investment generates over a period of time. It is the percentage increase or decrease in the value of the investment in that period. Returns on mutual funds are expressed in 2 different ways, viz, absolute and annualized. The most popular one being the annualized return or CAGR (Compounded Annual …

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What are Hybrid Funds? Best Hybrid Funds for 2018

Earlier known as Balanced Funds, Hybrid funds invest both in equity and debt instruments. Some hybrid funds also invest in other assets like gold and real estate. Hybrid or Balanced mutual funds have been very popular among Indian investors. They are suitable for investors seeking good returns at moderate risk. Hybrid funds can be used both …

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What is Grandfathering in mutual funds LTCG Tax?

The finance ministry, in its budget announcement on Feb 1st, re-introduced the tax on Long-Term Capital Gains (LTCG) at 10% without indexation benefits. This is applicable for gains above Rs 1,00,000. This new law is applicable from 1st April 2018. So does that mean all the gains made up till now should be taxed? No. …

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What are Focused Funds? Should I invest?

  A focused fund is an equity mutual fund investing in a limited number of stocks. As per SEBI guidelines, a focused fund can invest in a maximum of 30 stocks. Other equity mutual funds typically hold 50-100 stocks. Some focused mutual funds also state their objective to focus on the large-cap or mid-cap stocks. …

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What are Value Funds? Best Value Funds in 2018 – 2019

SEBI defines Value funds as “An open-ended equity scheme following a value investment strategy.” Value funds follow the principle of value investing. They invest in shares of companies which are trading at a considerable discount to its intrinsic valuation. There can be a number of reasons for these companies to be undervalued in the market. …

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The 15-15-15 rule of mutual funds: Joys of Compounding

“Compound interest is the 8th wonder of the world. He who understands it earns it and he who doesn’t pays it.” – Albert Einstein Power of Compounding Albert Einstein rightly said that compound interest is the 8th wonder of the world. Compounding is a very powerful concept. This is because the interest of your invested …

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