Is it the Right Time to go for International Funds?

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Is it the Right Time to go for International Funds?

SEBI vide their circular dated 05/11/2020 had permitted the Mutual Funds to make overseas investments subject to a maximum of US $ 600 million per Mutual Fund, within the overall industry limit of US $ 7 billion.  The regulator’s move was an opportunity for the investors interested to start investing in segments across the world having reasonable or low valuations. International Funds are basically mutual funds which invest in companies located outside the investor’s country of residence. By investing in a global fund, investors get the chance to be a part of a much more extensive and diverse portfolio with the help …

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Gifting/Transferring Assets to your Relatives to Save Tax? Know all about Clubbing Provisions

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Gifting/Transferring Assets to your Relatives to Save Tax? Know all about Clubbing Provisions

It’s really not uncommon for us to see people diverting their income or assets to their spouse or relative in the hope of reducing taxation. But guess what? Tax laws already have measures in place to prevent people from avoiding taxation through such means. In fact, people unaware of such provisions are laying the groundwork for tax blunders that would put them in a position to pay huge taxes in the future. The clubbing provisions in the Income Tax Act deal with cases where a person can also be taxed for the income earned by somebody else. What is Clubbing …

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How are gifted shares & ETFs taxed?

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How are gifted shares & ETFs taxed?

With the advent of new technology like e-DIS, online off-market transfer of securities has become seamless, paving the way for gifting shares and ETFs effortlessly. Brokers have leveraged this extensively by providing the facility of gifting shares and ETFs on their platforms. They have become the new go-to for birthdays, anniversaries, weddings and more– no end to gifts, is there? Shares and ETFs also make the best gifts. After all, they have the potential to grow and even become the next big thing in the future. Often, a person oblivious to financial markets–upon receiving something as peculiar as shares or …

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মার্জিন ট্রেড ফান্ডিং

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Margin Trade Funding Facility

আজ আমরা এমটিএফ  নিয়ে কথা বলবো। প্রথমেই জানা যাক এমটিএফ-এর অর্থ কী? এমটিএফ অর্থাৎ মার্জিন ট্রেড ফান্ডিং। এমটিএফ – এটি এমন একটি সুবিধা যা আপনার ব্রোকারের কাছ থেকে আপনি পেতে পারেন। এই সুবিধার মাধ্যমে আপনি যে পরিমাণ শেয়ার কিনতে চান, এবং তার জন্য আপনাকে মোট যে মূল্য দিতে হয় সেই মোট মূল্যের একটা পার্সেন্টেজ(%) দিয়ে আপনি শেয়ারগুলোর মালিক হতে পারেন। একটা উদাহরণ দিয়ে বোঝানোর চেষ্টা করা যাক। ধরা যাক – আপনি কোনো কোম্পানির  ১০০ টা শেয়ার কিনতে চান। যার প্রত্যেক শেয়ারের বাজার  দাম ২৫০০ টাকা, এবং মার্জিন ২০%। তাহলে ১০০ টা শেয়ার কিনতে মোট দাম পড়বে ২৫০০০০ টাকা। কিন্তু মার্জিন ট্রেডিং-এর সুবিধা থাকার …

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How Do FII Investments affect the Indian Equity Markets?

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How Do FII Investments affect the Indian Equity Markets?

Institutional investors for any country can be both External Investors (Foreign Investors) and Internal Investors (Domestic Investors). When the Indian Government opened its doors for foreign money into the Indian Stock market, they were named Foreign Institutional Investors (FII), commonly known as FIIs. To further reduce time and rationalise the process, the Indian Government introduced new Foreign Portfolio Investor (FPI) regulations in 2014, which were then implemented by the Securities Exchange Board of India (SEBI). FII can be referred to as a single foreign investor or a group of foreign investors. FPI invests in securities/stocks in other countries. In India, they can …

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How do Interest Rates affect Bond Prices and Bond Yields?

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How do Interest Rates affect Bond Prices and Bond Yields?

In a surprise move, the RBI has hiked the Repo Rate (the rate at which commercial banks borrow money by selling their securities to the RBI to maintain Liquidity) by 40 bps to 4.40% on 04/05/2022. Along with the hike in Repo Rate, RBI has also increased the Cash Reserve Ratio (CRR – The % of a bank’s total deposit maintained with the Central Bank) by 50 bps to 4.50%. The hikes in Repo Rate and CRR will drain around 87,000/- crore of liquidity from the banking system. The RBI controls inflation (Inflation = When too much money chasing too few goods) by increasing …

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The Basic Things You Need to Know about Bonds

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The Basic Things You Need to Know about Bonds

It’s highly unlikely that you haven’t heard the term ‘bond’ if you are an active investor. Bonds are investment vehicles that come under the fixed income asset class universe. The Indian bond market is much bigger than the ubiquitous equity markets. In today’s blog, we’ll discuss the basics of bonds, types and how you can invest in them. What is a Bond? Bonds are similar to loans. You pay the borrower a fixed sum of money, and they promise to pay you back. That’s at the crux of bonds. Bonds are issued by the Government or corporates when they are in need …

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Why link your Investments with Goals – here are the reasons!

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Why link your Investments with Goals - here are the reasons!

Mr. Saha, an Electrical Engineer, has worked in a Navaratna graded PSU for 20 years now. His level of income is sufficient to lead a respectable life in society. His children are brilliant and the elder one is already set on her path to archaeology. The younger one is now in senior school and aiming for going ahead with information technology. He has set in mind a few options for higher studies. Mrs. Saha took a break from her job 10 years ago, attributed to the transferrable job of her husband. Now the family is back in the city again …

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3 things you must know about the Repo Rate

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3 things you must know about the Repo Rate

Earlier this week, RBI conducted an off-cycle MPC (Monetary Policy Committee) meet and announced a 40 basis points (0.4%) repo rate hike on Wednesday to calm inflationary pressures. The hike is the first since August 2018, and the new Repo Rate now stands at 4.4%. Also, this was an unscheduled meeting of the MPC, the first of its kind held to increase rates. The committee usually meets six times in a financial year, i.e., every two months. The monetary policy determines the quantity of money available in the Indian economy and the mediums through which the money is supplied. The …

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5 things you should know about Public Provident Fund

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5 things you should know about Public Provident Fund

In the last blog, we talked about the basic features of PPF, its return profile and how you can open a PPF account. PPF has been an attractive investment option for long because of its safety aspect and tax treatment. It serves as an ideal investment avenue for risk-averse investors planning long-term goals that are at least 15 years away. The scheme can also serve as a safer diversification tool into the debt asset class for your overall portfolio. Essentially, it fits differently for each individual, depending upon their goals and portfolios. Today we’ll touch upon the five aspects of this …

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