Investment Planning Tips

When somebody says, 'Tax Returns', our brain switch just turns 'off' because who will do all that paper-work?! Plus, it's so complicated to understand. But think about it, we are already paying so many taxes. Taxes on food, taxes on clothes, taxes on travel, taxes on movies! So, Ladies and Gentlemen, it is time to turn that switch back 'on' because by doing our tax planning, we can save a lot of money, and that in turn will get us more money. Options such as Equity Linked Savings Schemes (ELSS), NPS, and PPF are highly helpful in saving your taxes and money. In fact, tax saving mutual fun ds such as ELSS tax saving options have become very popular simply because they not only save you money but also help you grow your capital. Now, what is Income Tax? Suppose you are earning 'x' amount of money. Out of that, you have to give away some to the government so that it can use it for public services. Now, we can't control how and where our go...

Online currency trading in India is still in its infancy but is slowly gathering momentum over the past two to three years. Many investors have begun to understand the true value of currency trading in not only diversifying a portfolio, but also reducing or balancing risk. Online currency trading is a great and wide platform for investors to trade in prominent global currencies. Different traders have their own preferences of stock market blocks. Some people like putting their money in equities, some in commodities, and some in mutual funds. It is now that they start thinking about diversifying their portfolio while reducing risks and put their money into currency trading.             Currency trading is nothing but buying and selling or foreign exchange or currencies. You will be surprised to know that the daily turnover of global currency trading is more than $5 Trillion. This clearly defines the potential currency tra...

Investing in capital bonds and government bonds is  considered highly safe and secure, especially for those investors with a moderate or conservative risk profile. In case you are trying to save on capital gains tax then capital bonds investment is  a good option for you to pursue, which is also picking up good momentum in India. It is a good way for Indian investors to save on their long-term capital gain taxes on the sale of any of their assets. All they need to do is to invest the money in 54EC government bonds, which are also called capit al bonds. Investment in government bonds or capital bonds such as 54EC can be made in short-term and long-term bonds. There are two types of long-term capital bonds, one is issued by Rural Electrification Corporation Limited (REC) and the other by the National Highways Authority of India (NHAI) under Section 54EC. You are subject to long-term capital gain when you sell an asset at a profit after you held it for more than a year. ...

There is a direct proportionality between risk and return. Lower risk entails lower returns, while higher-risk high entails higher returns. Investing in equity-linked instruments against fixed-income instruments is crucial for achieving higher returns. Let’s now look at a few high-return investment options: Direct equity As the name suggests, this option allows you to invest directly in the stock markets through buying stocks of companies listed and traded on a prominent stock exchanges such as BSE or NSE in the secondary market. Here, you will need to decide the shares to buy . You will require opening a Demat account with a stock brokering house. This the account will be used for crediting and debiting your share purchases and sales. You can invest in stocks of companies from diversified sectors Initial public offering (IPO) IPO is one of the most popular routes to buying a company’s share from the primary market at a highly competitive price. A survey conducted by...

You would have likely read thousands of articles on how  investment in stocks  helps you in maximizing your money in the long run. The big question you must ask yourself here is whether you know the stocks to buy, especially if you are an inexperienced first-time investor in the stock markets. This is where mutual funds investment has made it easier, especially for first-time investors with no knowledge of the stock markets. What’s made them popular is the fact that you can  start SIP online  without much effort. All you need is a Demat and a trading account along with a bank account and you can buy/sell mutual fund units with ease. Let’s now look at how a mutual fund SIP compounds over time. When your returns start earning returns in turn, it is called compounding. It is very simple to visualize in case of fixed income securities such as FDs where the interest that you are getting is fixed. The investment is fixed. Let’s say you have a recurring de...

One of the first dilemmas you face as a start-up investor is where should you place your money. However, with so many options barging the market, it could become difficult to choose the option that perfectly fits your bill. Mutual funds often come to your rescue in such situations. They offer you the best of both worlds where you stay well-invested in the markets without having to track your investments on a regu lar basis. Online investment in mutual funds investment plans has become a basic norm of the day. Today, more investors are always on the look-out for how to start SIP investment to grow their savings. That said, how do you pick the perfect mutual funds scheme? There is no correct way to answer this question. However, you can often draw out criteria based on your needs and investment objective. There are certain checks you should maintain as an investor before investing your hard-earned money in mutual funds. Entry, exit, overhead loads, expense ratio, turnover ratio...