2020 is ending but the most important financial lesson shouldn’t The pandemic could be a once in a century event but the impact is here to stay. This pandemic has brought to the forefront the need to have savings and investments to fall back upon for extended periods.
Do you pay higher tax in MF growth or dividend plan? Post Budget 2020, dividends are now taxable when you receive them. For those in the highest tax bracket, this means you will have to pay tax of anywhere between 35% to 42% on the dividend income you receive from mutual fund schemes.
The recent GDP data is alarming many experts. Should this change the way you invest? April-June Quarter GDP data indicates we may be in for a rough ride. But was this truly unexpected? More importantly, will this impact how you invest going forward?
How should you invest a lump sum if you are an NRI investor? There are some factors you as an investor need to keep in mind when making the decision to invest a lump sum amount.
Why are liquid fund growth rates trending lower this year and what should you do? We have observed that liquid fund growth rates in the past few months have been trending lower than the usual 6%-7% which was seen a year ago. This is making many investors wonder what they should do.
Why a portfolio or a plan is better than merely selecting an equity fund to invest in? If you want to invest in equity effectively, you need a portfolio of funds rather than just a single fund. But don’t overdo it. For most long term objectives a portfolio of 4-8 equity funds across sub-asset classes can suffice.
Does the stamp duty on mutual fund investments affect you significantly? If you hold your units for a year, the impact is about 0.005%, or in other words negligible.
Moody’s downgrades India and takes rating action for 11 Indian banks - What does this really mean for you? A rating downgrade for a country tends to affect its ability to attract investments. However, it is not the only parameter. The sovereign rating downgrade of India by Moody’s was not the only rating downgrade. And no this is not as disastrous as it looks.
Three things not to do when linking your equity mutual funds to your long-term goals The point of this article though is to make sure, that irrespective what you think your definition of “long-term” is, you don’t do the following when linking your goals to equity mutual funds.
If you need to use your emergency fund because of a job loss, how should you go about it? Here’s an approach you can consider to make sure that you use this fund optimally, in the unlikely event you are forced into unemployment temporarily.
Want to change funds? Start a SIP in the replacement fund first. There are three good reasons why moving from one fund to another en masse is not a great idea.
Is it a good time to invest? With the scenario worsening, there is one question on top of every mutual fund investor’s mind – Is it a good time to invest?
