mutual fund myths

Top 7 myths around mutual fund investing debunked

In today’s complex financial markets, Mutual funds remain one of the most trusted investment options for those looking to create wealth. However, like any area of investment, mutual funds have their share of misunderstandings or myths among investors. These tend to build an unrealistic image of mutual funds in the eyes of investors. As more investors in India are considering mutual funds as a good investment alternative, it is important for experts to debunk some of these myths to help create a positive investment environment.

Here, we present some common myths around mutual funds that investors should not believe in and why. (more…)

Your mobile wallet can soon turn into a debit card- MoneyBite Newsletter 10 Apr

MoneyBite

Short bites to keep you informed of matters that impact your wallet and wealth

This week RBI kept its benchmark rates unchanged in its first policy meeting, which means your loan interest rates and the deposit rates remain pretty much the same. This move was expected and is required to support the growth of the economy through this phase. 

Top Bite this Week

Your mobile wallet can turn into a debit card soon

(more…)

Sip with insurance

Insurance cover with mutual fund investments. Should you opt for it?

Only a person living under the rock may not have heard about mutual funds today. We have grown up hearing about mutual funds especially that they are ‘subject to market risk’. Mutual funds have been a popular investment product for a very long time. It is an easy investment product that allows the investors to gain potentially higher returns at relatively lower costs. There are many types of mutual funds in the market for the investor to choose from like equity mutual funds, debt mutual funds or hybrid mutual funds. 

Apart from this, the investors now are getting the option of adding an insurance cover to their investment.

We discuss the details of such insurance cover that comes with a  mutual fund investment. The pros and cons of the same as well as its need.  (more…)

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Stocks Vs Equity Mutual funds

Where should you invest? Stocks or Equity Mutual Funds?

When we talk about investment in the stock market, the majority of investors relate it to equity alone. But there are many options for the investor to invest in stock markets. Among the most favored or rather popular ones for quite some time have been mutual funds. Mutual funds are further of many variants like equity mutual funds, debt mutual funds, and hybrid mutual funds. But for an average investor, it is often difficult to decide which is a better investment among stocks and mutual funds. While making an investment, investors have to look at many options and select the one based on their needs, investment goals, budget, returns, expenses or risks associated with the investment, etc. 

Given below are the meaning and differences between stocks and equity mutual funds that will help the investors make better investment decisions. (more…)

Are we looking at another Lehman rerun with the Archegos capital sell-off? – Money Bites Newsletter 02 Apr

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

What’s up, everyone?

We enter a new financial year this week. And the Govt decided to give us a shocker by cutting interest rates of small savings schemes like PPF, NSC, Sukanya Samruddhi Yojana, etc but thankfully withdrew the order. The earlier rates stand good.

Top bite this week

Are we looking at another Lehman rerun with the Archegos Capital debacle?

(more…)

How to save taxes without making additional investments under Sec 80C?

Making tax savings investments is a ritual that every taxpayer has to go through before the end of every financial year. There are many tax-saving schemes and options available for taxpayers in the Income Tax Act which helps them save a chunk of tax as well as make significant investments in the process. 

The most common and widely used tax-saving provision available in the Act is Section 80C. There are many options that the taxpayers can invest in under section 80C and claim the benefit of a deduction up to Rs. 1,50,000 from their gross total income. Some of the options available under section 80C are an investment in PPF, LIC, tax saving mutual funds, fixed deposits, Sukanya Samriddhi Yojana, NPS, repayment of home loans, etc.

Other tax saving options

Apart from Section 80C, the Act provides many more tax-saving options for the taxpayers to reduce their tax liabilities. Some of such tax saving options that you could consider for saving taxes before investing additional money under Sec 80C are (more…)

No interest on interest for loans during moratorium- Money Bites Newsletter 26 Mar

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

 

Top Bite this week

No interest on interest for loans during the moratorium period

Image source: Livelaw. in

What’s going on here?
The Supreme Court gave its ruling on the petition for an extension of the moratorium period and waiver of interest during the moratorium period.

What does the ruling say?
If you remember the RBI allowed a moratorium on all loans between March -Aug last year. Though the moratorium was meant to allow time and relief to the borrowers, they were charged extra interest (interest on interest) during the moratorium.

In Oct 2020, the Union Government announced they would absorb the compound interest cost on all loans (like home, auto, education, personal loans including MSME loans) below Rs 2cr.

This facility was allowed even to those borrowers who hadn’t availed moratorium. (🤔Remember getting some amount credited to your loan and credit card account?) But some sections who were not satisfied with this approached the apex court for a complete waiver of interest and an extension of the moratorium.

The SC gave a ruling this week which said

  • The compound interest benefit should be allowed for all loans irrespective of the amount.
  • Complete waiver of interest would hurt the banks who have to pay interest to their depositors.
  • No further extension of the moratorium period and those who don’t pay EMIs beyond this period can be classified as Non Performing Assets.

How does this ruling affect you and me?

If you have loans over Rs 2cr expect some relief soon. However, this time it isn’t clear if the govt will bear the burden or pass it over to the banks and NBFCs to make the payment.

Also, if you haven’t paid your loan EMIs beyond Aug 2020, your account may be classified as a Non-performing asset which can cause a big dent in your credit score.

You Ask – We Answer

How much premium would I have to pay for a term insurance policy? – Premchand Pandey

In the last issue of our newsletter, we spoke about why the term insurance policies are going higher from April onwards.

Term insurance policies are meant to insure your life for a fixed period of time. So the premiums you pay depends on many factors like your age when you buy the policy, gender, medical conditions, habits (smoker/non-smoker), profession (a riskier profession like working in an oil rig, the military will have higher premiums), etc.

There are insurance premium calculators available on many websites that you can use to check the premium before you buy a policy for yourself.

💡 Do you have questions on personal finance & investing? Go ahead and ask away in the comments below. Get featured in our upcoming issues.

Financial Tip of the Week

Diversification- You wouldn’t put all eggs in a basket. Then why invest in a single asset category? Investing your savings in different asset categories (cash, mutual funds, debt, stocks, gold, etc)  can help you balance risk and returns.

  • Investing in the international markets can also be a way of diversification. Read📖 our blog which contains all the details on international investing.

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Until next week,

Best,

Team Finity

Looking to invest in International companies? Learn all about it

A smart investment strategy requires choosing a good mix of various asset classes, which can match up to individual financial goals. Equally important are an investor’s risk profile and the time horizon for which he/she wants to stay invested. Any financial advisor would recommend investors ensure diversification through asset allocation. This is because investment in a wide range of asset classes ensures portfolio diversification and also offers a healthy risk-reward balance.

Every Indian investor must design his/her portfolio by considering these factors and also look at international investment to broaden the investment horizon. So why does international investment matter? 

Let’s find out! Here is everything that an investor needs to know about international investing. (more…)

टर्म इंश्योरेंस पॉलिसी प्रीमियम अप्रैल के बाद से अधिक हो सकता है।

इस अप्रैल से टर्म इंश्योरेंस पॉलिसी पर प्रीमियम राशि 10-20% अधिक हो रही है।

 

 

 

 

 

 

 

 

 

 

प्रीमियम की कीमतें अधिक क्यों हो रही हैं? अब क्या बदला है?

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