Are there any best SIPs?
SIPs are a medium to invest in mutual funds. Hence, there's nothing like 'best SIPs'; you need to select best or winning mutual fund schemes to invest so that SIPs work best for your objective of wealth creation to achieve long-term financial goals.
So, selecting an appropriate mutual fund scheme for your SIPs is very crucial.
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed.
Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status. Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free.
What are your options when a PPF account matures?
1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened.
2) The subscriber can retain his/her PPF account after maturity without making any further deposits for any period without limit.
3) The balance in the account will continue to earn interest till it is closed.
4) The subscriber can make one withdrawal of any amount in each financial year.
5) If the subscriber wants to make further contributions after the PPF account matures, it can be extended in blocks of five years.
6) There is no limit on the number of times you can extend the PPF account.
7) But if the PPF account holder wants to continue with the contribution-mode after maturity, he/she has to submit Form H within one year from the date of maturity of the account.
8) If the subscriber fails to submit Form H but continues to make deposits in the account, the fresh deposits into PPF account will not earn any interest.
9) Also, in this case, the fresh deposits in the PPF account will not be eligible for deduction under Section 80C of the Income Tax Act.
10) In case the person has opted to extend his account by a block of five years, during each block period he/she can make one withdrawal not exceeding 60% of the balance at the commencement of each block. This amount can be withdrawn either in one installment (one year) or in more than one installment in different years, not exceeding one withdrawal in a year.
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
Now, investors generally give an ECS mandate for the monthly SIP investment amount to be directly transferred from their bank accounts. Generally, this is a perpetual mandate. Stopping the SIP requires an instruction to be registered. Earlier, stopping was automatic but continuing involved a fresh pile of cheques to be written. In my experience with investors, I have felt that this change of defaults has had a huge impact.
The kind of returns that one can get with SIPs are truly mind-boggling. Here are a few very long-term examples. I took up four funds that have been around for decades and calculated what would have happened if I had done a modest SIP for the last 20 years
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
It makes sense to add spouse as co-owner as it helps in enhanced loan eligibility and provides tax benefits to both co-borrowers on interest and principal repayment. Also, succession of a jointly owned property is smoother compared to the lengthy process involved in case of single ownership.
Here are four benefits of owning a house jointly.
Lowers stamp duty
One of the significant additional expenses that a buyer has to bear while buying a house is stamp duty and registration fee for registration of property papers in the buyer's name.
However, "you may prefer to have your wife's name as the first owner as it can help you save a lot of money towards paying the stamp duty
In many states, stamp duty fees for registration of property is higher for male buyers and lower for women. For instance, in New Delhi, a woman has to pay 4% stamp duty compared with 6% for a man; if the property is bought jointly in the name of a man and a woman, buyers have to pay a stamp duty of 5%.
Similarly, in Haryana, a man is required to pay 8% stamp duty in urban areas and 6% in rural areas, while a woman has to pay 6% in urban areas and 4% in rural areas.
Increases loan eligibility
Most property purchases are financed through home loans. When giving out a loan, lending institutions first determine the eligibility, which primarily depends on the income of the borrower. Typically, loan eligibility is around five times the annual salary of the borrower. However, "If the borrower draws insufficient income, has a low credit score or a low repayment record, a co-borrower's involvement is a blessing for the loan applicant and the lender is assured of timely repayment. Financial lenders require all co-owners of a property to be co-applicants of the home loan. However, all co-applicants may not necessarily be co-owners
In case of joint applicants, incomes of all the borrowers are taken into consideration to determine the loan eligibility and can enhance the loan amount. For instance, if your yearly income is about ₹10 lakh, you may get a loan of up to ₹50 lakh. If your spouse also earns ₹10 lakh a year, both of you can jointly borrow up to ₹1 crore. Besides, "having women as a co-applicant could also get you concessional interest rate at several financial institutions. It could either be your mother, sister, wife or daughter, but they need to be the first home buyers
Gives tax benefits to both
Repayment of home loan can give tax benefits to both joint owners of a house.
Payment of stamp duty and registration fee qualifies for deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961. Principal repayment in a year can be claimed up to the overall limit of ₹1.5 lakh allowed under Section 80C of the Act. The interest paid on the home loan is allowed for deduction under Section 24(b) of the Act up to ₹2 lakh a year, in case the home loan is acquired for a self-occupied house.
Joint borrowers who are also joint owners of the property can each claim deduction separately up to the above mentioned limits, as per their ownership share. However, jointly they cannot claim more than the actual amount of home loan repaid.
It is always beneficial when both partners contribute an equal proportion while buying a property. This will help them in getting equal taxation and capital gains benefits
There are other tax benefits as well. In case you plan to rent out the property, rental income can be shared by both the owners and may attract tax at a lower rate. For instance, if both the owners earn ₹8 lakh per annum and the property they jointly own with equal shares is rented out at ₹4 lakh per annum, ₹2 lakh each will be added to their incomes. In other words, their total individual income would be ₹10 lakh each, which comes below the slab of 30%. In the same example, if the property was owned by only one of them, the total income of that individual would have become ₹12 lakh, pushing the person in the 30% tax bracket.
Eases succession
In case the property is jointly owned by both the spouses—as a joint owner or a joint tenant with equal shares in the property—it may ease up succession issues. At the legal level, "doing so (joint ownership) also ensures that the spouse has no problems when it comes to claiming his or her rights of the property in the case of the demise of the other spouse
"In case one of the spouses dies, there will not be much stress and work involved to get the mutation done in the name of the surviving owner. It is easy and saves you charges involved for mutation
While there are many advantages of buying a home jointly with spouse, remember that problems could arise if your relationship sours.
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
We know how investing is different from just saving. If we put our saved money somewhere where it will grow, then that's investing. However, there are a number of possibilities available when we want to invest, and it isn't possible to make sensible choices without having a way to classify things.
However, let's not jump into classifying investments right away. Before we do that, we need to classify our need for making an investment. Investments can be made for a huge variety of needs. You could be saving for emergency medical funds which are usually required at a moment's notice. Or you could be saving for your retirement which is a few decades away, or anything in between.
We have created a useful framework for thinking about these investment needs. We divide investment needs into four levels. Each level is more fundamental than the ones that come after it. You should satisfy the need at each level before going on to the next one.
Those who know a bit about psychology may recognise this system as being based on the 'Hierarchy of Needs', a concept proposed by psychologist Abraham Maslow. Maslow's hierarchy dealt with basic human needs like food, shelter, etc. Basically, human beings deal with their higher needs after the simpler ones are satisfied.
So here's Value Research's Hierarchy of Investing Needs:
LEVEL 1: Basic contingency funds
This is the money that you may need to handle a personal emergency. It should be available instantly, partly as physical cash and partly as funds that can be immediately be withdrawn from a bank. Online banking and ATMs make it relatively simple to get this organised.
LEVEL 2: Term insurance
Calculate a realistic amount which allows your dependents to finance at least short and medium-term life goals if you were to drop dead or be struck with a debilitating injury or disease. You should have an adequate term insurance before you think of any savings.
LEVEL 3: Savings for foreseeable short-term goals
This is the money needed for expenses that you plan to make within the next two to three years. Almost all of this should be in minimal risk, deposit-type savings avenues.
LEVEL 4: Savings for long-term foreseeable goals
Same as level 3, except the planned expenses are more than three to five years away. This level should be invested in equity and equity backed investments like equity mutual funds.
One could think of many levels beyond this and really, the details matter much less than the concept. Depending on one's circum-stances, any of the levels may have to be modified. For example, you may have enough income-producing assets to make insurance relatively less important.
However, this doesn't decide how much to invest in each need. This system aims at preventing you from going to higher level unless the lower one is fulfilled. If you haven't put emergency cash in a savings account, then don't buy term insurance. If you don't have term insurance yet, then don't start putting away money for your daughter's college education, and so on.
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
What is it?
Like in other exchanges, you can buy and sell these contracts, which are priced at the wholesale market rate (ex-Surat) rather than at the retail price of polished diamonds. You can hold them in electronic mode or choose to take physical delivery. The contract units begin with 1 cent (100 cents make 1 carat). The shape, carat, colour, clarity, cut and other specifications will be mentioned as part of the contract. The standard contract has colour of 'H' level with VS2 clarity.
There are limits on the maximum order that can be placed per individual. You can even start with a small amount and invest via systematic investment plan (SIP) to own a 1-carat diamond. SIP route lets you buy smaller quantities.
What works…
For many who don't have access to a trusted jeweller, this is an exchange-based platform to buy diamonds, which means the price discovery undergoes a process.
The diamonds are certified by International Institute of Diamond Grading and Research which is a De Beers Group company and hence, there is verification of the value of the diamond you take delivery for. You can also decide to sell the diamond back to the exchange.
...What doesn't
Unlike the gold market, diamonds so far don't have a standardised market against which you can check pricing. Discounts and negotiated prices can exist elsewhere too. Diamonds are available in various configurations whereas this exchange has only a specified configuration for each of the three underlying contracts of 30 cents, 50 cents and 1 carat diamonds. For example, if you want to buy a contract for a 1-carat diamond with a clarity that is, say, at a level lower or higher than VS2, you may not be able to. If your interest is primarily in buying diamonds for jewellery, once you receive the stones from these contracts, you will still have to go to a jeweller to make what you want. If you are buying them as an investment, one must first understand whether the commodity is rare enough to warrant a stable price rise through the years.
This platform can work well for those who are already well versed with diamond specifications and pricing or maybe use it for hedging. One should also to do a background check on the exchange, which is new, although being a Sebi-registered entity is an advantage. While supply of the diamonds is limited, it is not a standardised and systematic market for which price trends can be extrapolated meaningfully; a lot depends on individual diamonds and their demand.
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
What is CTC?
CTC is nothing but the cost that the company incurs to employ you and keep you employed. It includes your pay and anything else that the company may incur to keep you in employment. Here is Avni`s CTC or Cost to Company.
Particulars-Rs (per annum)
Basic 480,000
Dearness Allowance 48,000
Entertainment Allowance 12,000
House Rent Allowa`nce 96,000
Conveyance Allowance 12,000
Overtime Allowance 12,000
Medical reimbursement 15,000
Gross salary 675,000
Company`s contribution to provident fund 57,600
Annual CTC 732,600
Monthly CTC 61050
Avni`s salary package is quite transparent. However, each company has its own method of calculating CTC. Companies may offer an attractive CTC pay structure but the take home may be substantially lower. Here are some components that are commonly used in the CTC:
1. IT companies often add training costs in the CTC. These costs are incurred by the company for training the employees. So, naturally these do not come in the form of take home.
2. Banks include interest subsidies in CTC. That is, if you are a bank employee, you are entitled to a discounted rate on loans.
3. Performance bonuses are also included in the CTC. These are variable components and you will be paid out a percentage of the bonus depending on your performance.
4. Companies may include the cost of group medical or life insurance. Some companies may add food subsidies, that is, you may be getting a subsidy on your lunch in the office canteen.
5. Some companies include gratuity in the CTC. Gratuity is a sort of bonus that is paid out when you resign or retire from your company. The catch: You are entitled to gratuity only after completing 5 years in the company. Some companies who include gratuity as part of CTC pay you the propornate amount as ex-gratia, in case you leave the company before completing five year as required.
SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
Fixed income investors have endured muted returns for some time. The one-year fixed deposit at SBI currently fetches 6.65%, while the five-year deposit earns 6.75%. Even bond funds have fetched insipid returns, clocking around 6%. But recent NCD issues suggest good times. On May 22, Dewan Housing Finance (DHFL) launched its ₹12,000-crore NCD issue, offering a coupon rate of up to 9.1%. It received subscriptions worth ₹10,000 crore the very first day, getting fully subscribed soon after.
Last week, JM Financial Credit Solutions' ₹750 crore issue — offering up to 9.75% coupon rate — got oversubscribed the first day. The rates NCDs are offering are at least 200-250 bps higher than bank fixed deposits of equivalent tenure. For investors in the lower tax brackets, these returns are very attractive. At 9% coupon rate, the post-tax return for an investor in the 10%, 20% and 30% tax brackets works out to 8.1%, 7.2% and 6.3% respectively. Most debentures offer 0.25% higher returns for senior citizens. Investors can opt for monthly, annual or cumulative payout based on their needs.
While the rates are attractive, investors should choose the tenure with care. Most NCDs offer tenures ranging from one to 10 years. Longer tenures typically offer higher rates of interest. With interest rates headed upwards, it is likely that upcoming NCD issues will offer even higher rates than those available now. So locking in a large sum of money at current yields for a long tenure may not make sense. If you opt for a lower tenure instrument instead, it may fetch a lower coupon but you could invest in a higher yield NCD when the current instrument matures.
Alternately, you could opt not to jump in now and wait for higher yield NCDs to hit the market.
RBI is likely to hike interest rates in the near future. Investors should wait and watch before jumping in. Another option would be to deploy part of the surplus money at current rates. You can invest the remaining money as and when more attractive NCD offers come through.
There is no clarity on the interest rate situation. Rates may remain stagnant for some time. In this scenario, it would make sense to lock-in at current rates with part of investible surplus. Either way, it is a better idea to spread your money across two-three companies rather than risking the entire capital with a single issuer.
DON'T IGNORE CREDIT PROFILE
With NCDs, the high yield often comes with an added element of risk — of the company not being able to repay its obligations. Hence ascertain the credit rating assigned to the issue. Typically, companies rated lower than AA carry a high degree of credit risk, even though they offer a much higher coupon rate. Find out if the issuer has a healthy track record of repayment." Avoid opting for unsecured debentures that offer higher coupon; a secured NCD issue is a safer bet as it allows investors a claim on identified company assets in the event of non-payment of dues. AAA and equivalent rated instruments are safer bets. If at all one has a risk appetite, a small portion of the portfolio may be deployed in lower rated instruments to boost yield. He feels investors should opt for credit risk funds instead. These allow one to capture higher yields, yet the exposure is spread across companies and the onus of evaluating the credit profile of businesses lies with the fund manager.
Even though NCDs are offered in demat mode and can be traded in the secondary market, liquidity is often poor. This may not allow investors to exit at the desired price and time, an issue not faced by credit risk funds.
ALTERNATIVES
Investors could also look beyond NCDs. Several company fixed deposits are on offer at attractive coupon rates. Kerala Transport Development Finance Corporation is offering 8.5% on its 36-month fixed deposits under both regular and cumulative payout option. Shriram Transport Finance – Shriram Unnati fixed deposit fetches 8.15% over a four-year tenure under yearly and cumulative payout option.
An investor can also park money in small finance banks. Fincare offers a coupon rate of 9% for two to three year tenures.
ESAF Small Finance Bank offers 8.75% on its 365-727 day fixed deposit while Ujjivan Small Finance Bank offers 8% for similar tenure. But like NCDs, check the credit profile of the issuer here too.
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
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