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  • NPS Withdrawal made Tax Free, Should You Invest Now?

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    Click to Enlarge One of the biggest pain points that investors find in the National Pension Scheme (NPS) is the taxation part. Of the 60 per cent corpus that could be withdrawn lump sum at age 60, about 40 per cent is tax free and 20 per cent is taxable under the present rules. Now, in a recent development, the government has exempted even the 20 per cent from tax taking the tax exemption limit from 40 per cent to 60 per cent. This means that the money invested in the scheme (up to a limit) is exempt from tax, [...]
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  • Are Debt Mutual Funds Risk Free?

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    Click to Enlarge Many investors have a general perception that while equity and equity mutual funds are volatile, debt mutual funds are risk free. They also see debt funds as an alternative to fixed deposits which can yield higher returns than the latter. The primary reason behind this misconception is that investors fail to understand how a debt fund works. Debt funds are risky for sure and unlike equity, the former is much more difficult for the retail investors to understand. Not just investors, even mutual fund agents may not correctly understand all the risks related to debt funds. Let [...]
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  • The Common Investor Dilemma – should I exit NOW as the markets turn?

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    Click to Enlarge Rising crude oil prices, weak rupee, political uncertainty ahead of state and central elections, etc., all have spoilt the stock market party. But is there anything new in this? Markets have gone down earlier because of such macro-economic and geo-political factors. Yet, panic, anxiety, confusion – any emotion related to fear is common amongst investors. They always face the common dilemma of whether to sell or not. This indecisiveness amongst investors stems from the fact that they have not addressed the most fundamental question before investing - the ‘WHY’ question. The ‘WHY’ defines the purpose behind anything [...]
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  • Why timing the Stock Markets is a futile game?

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    Click to Enlarge The stock markets are hitting new highs and investors must be facing the common dilemma - whether to book profits and then re-enter the markets on correction. When that correction would happen, no one knows. Predicting It would be more difficult than winning Blackjack in a casino. Although markets are cyclical and they reflect sentiment based on potential political events, macro-economic indicators, corporate earnings performance, it does not mean an investor can accurately predict the entry and exit of the markets. Not to forget the fact that markets tend to overreact many times, mostly during the corrections. [...]
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  • The fundamental truth that evades most Equity Investors

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    Click to Enlarge Stock tickers flashing at the bottom of news channels, red and blue colour codes on the trading bolt, fast gainers & losers, 52-week highs & lows, etc., are all things which a retail investor associates equity stock markets with. They are usually more focussed on the daily price movements. They would also not hesitate to park money in a stock based on tips from friends, brokers and associates. They would invest money in a particular stock just because it gave handsome dividends in a particular year. Amongst all these, they forget the most basic fact about equities. [...]
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  • Should you consider to buy tax free ULIPs over Mutual Funds?

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    Click to Enlarge With equity mutual funds coming under the ambit of taxation in the recent Budget 2018-19, insurance companies have made a strong case for selling ULIPs to investors. While a 10 per cent tax has been imposed on long term capital gains of equity mutual funds, ULIPs continue to remain tax free. Insurance agents have been dwelling on this tax disparity as part of their sales pitch. If this has got you thinking or confused whether to buy ULIPs or mutual funds, read on further to find out which one is a better product. Taxation alone is not [...]
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  • A decade after the 2008 stock market crash – Lessons to Remember

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    It is going to be 10 years on 21 January 2018, a decade, since the 2008 stock market crash. The BSE Sensex had registered a fall of 1408 points, the second largest single-day fall in the history of the Indian stock markets. History in hindsight always offers valuable lessons. While investors can never fully anticipate and prepare in advance for future crashes, such events do teach a thing or two about managing risks. Here are a few lessons which investors can always bear in mind to face mayhem and bloodbath on Dalal Street: Diversify your portfolio An investment portfolio concentrated […]

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  • Why making Resolutions for the New Year is pointless and a waste of time?

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    As the year 2017 draws to an end and you look forward to a new year, making new resolutions must be weighing on your mind. Everyone likes new beginnings and people look for special occasions to make a new start. They are naturally motivated, just like a child is excited to have neat handwriting in a new notebook at the beginning of an academic term. Observe the parks or the gyms in your vicinity on January 1 of every year. You will see they would be comparatively more crowded than the previous month. This is the result of the new […]

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  • Why you should avoid the herd mentality in making financial decisions?

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    In this information age, the human mind gets more attracted to an event or news which is popular amongst the crowd. Have you wondered how rumours are created? When a large number of people keep on forwarding news on social media without even checking the veracity of it. For instance, the news of the legendary actor Dilip Kumar passing away has been doing the rounds on Wats App very frequently. People mindlessly copy the actions of others and share the news even though it could be a hoax. Similarly, it is a popular trend these days to send children to […]

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  • How Asset Allocation plays a strategic role in Successful Investing

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    Imagine you are in a restaurant ordering a full thali. You have a diverse menu containing chapattis, 2-3 types of veggies, daal, rice, salad, pickle, 2 variety of sweets, etc. Note that each item would be served in the relevant proportion. For instance, the pickle or the sweet do not occupy a major portion of the meal like the grains & pulses and will be served just in the right measure. Eating more of pickle or the sweet could be harmful to your health. Asset allocation is similar to the menu of a full thali. It involves diversification and distribution […]

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