5 things to teach your kids about money

5 things to teach your kids about money

Children, these days, are much smarter and more informed than their parents at their age. They seem to be much in touch with what’s going around them. Then why leave out money management? The biggest gift that any parent can give their child is to teach them how to handle money and sadly enough this isn’t a part of the curriculum at most schools.

On this Father’s day, we bring you 5 simple actionable tips on how and what to teach your kids about money. 

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The new Income Tax e-filing portal- What’s changed & what’s improved?

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What’s going on here?

It’s that time of the year again – the tax filing season. This year the tax filing deadline has been pushed two months away till 30 Sep due to the pandemic. To make your tax filing experience better, the govt has launched a new website called e-filing 2.0 with a host of improvements and enhanced features.

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indexation benefit on mutual funds

All that you should be aware of Indexation benefit

As per the tax structure of our country, an investor gets the benefit of indexation on the long term gains from debt mutual funds 

Given below are the details of indexation on mutual funds in India.

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KYC- Know your customer

What is KYC? Why is it important?

Financial markets today face a larger threat of suspicious activities that have a significant negative impact. As financial crimes continue to deeply impact financial markets across the globe, there is a growing need to implement stricter procedures while collecting information on customers. 

As a move towards protecting institutions against financial threats, the Reserve Bank of India made it mandatory for all financial institutions to ensure complete verification of details of all customers transacting with them. Thus, to complete the verification, all individuals are required to follow the KYC procedure of the financial institution that they deal with.

Here, we will demystify KYC for new investors and explain why it is important for all those engaging in any form of financial activity.

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Debt mutual funds

Best Debt Funds

Mutual funds are fast becoming one of the most preferred investment options for new and also seasoned investors. Investors look for diversification and the regular returns from mutual funds. One of the preferred mutual fund types is debt mutual funds. These primarily invest in fixed-income securities such as bonds, treasury bills, Government Securities, money market instruments, etc. 

Debt funds can further be categorised depending upon factors like investment horizon, instruments selected maturity, etc. Here, we will explore the different debt mutual fund options available for investment in India.

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Tax deductions under sec 80DD

Tax deduction under Section 80DD (Deduction for medical expenses of the differently-abled)

The lack of required medical infrastructure and the increased medical expenses are a reality in India. This has been furthermore pronounced in the current pandemic. The cost of treatment for various illnesses is too high that it creates a huge burden on those who suffer from them or their caregivers. 

Understanding this plight and easing the financial stress it creates especially on the differently abled person, the Income Tax Act has introduced section 80DD that provides a deduction for the expenses incurred in the care of such persons.

Given below are the details of section 80DD of the Income Tax Act.

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Close-ended funds

What are Close-ended funds? How do they work?

Mutual funds provide an easier and safer investment mode in the stock market to millions of investors. It is a better mode of investment on account of reduced costs as compared to investing in individual stocks as well as higher returns than the market. Mutual funds are classified based on various categories. Mutual funds classified based on structure are classified into three categories namely, open ended funds, closed ended funds and interval funds.

Read on to know more details regarding close ended funds.

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commodity mutual funds

Commodity Mutual Funds

Modern day trade and commerce practices have shaped our lives in multiple ways. Commodities have been enabling trade practices since times unknown. Although a large population doesn’t directly take part in commodity trade, almost everyone is at least an indirect participant in it. 

Commodity focused stock funds or commodity mutual funds provide investors an opportunity to participate in the commodities trading and help them achieve certain financial goals. Today, many smart investors aim to achieve diversification in their investment portfolios by investing across various asset classes, however, commodities are often ignored because of lack of knowledge on commodities trading.

Here, we will explain some basics of commodity focused stock funds and share information around these that all new investors must know.

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ETF vs Fund of Funds

ETF vs FOF: What are the differences?

There are multiple investment options available to investors in today’s market. Investors can select from these options based on their risk return analysis or their investment strategy. Among the many types of investment available, ETFs and FOFs are gaining a huge market over the years. This makes it important for the investors to get basic information or know about the basic differences between them.

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low risk funds

Best low-risk mutual funds

Mutual fund investments come in many formats, from short duration to long-term and even low-risk to high-risk options. Depending on individual preference and investment goals, one can opt for a mutual fund investment to generate appropriate returns. Here, we will explain the concept of low risk mutual funds and different types available within this category. 

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