Month: April 2019 Articles

What is ELSS and what does it do?

ELSS refers to Equity Linked Savings Scheme, a close-ended investment instruments with a lock-in period of 3 years. It is essentially a mutual fund instrument that is based on the performance in the equity markets offered by Mutual Funds Companies in India. An ELSS mutual fund invests at least 80% of its total assets in equity and equity-related instruments. ELSS can be invested using both SIP (Systematic Investment Plan) and lump-sum investment options. A reason why Seema actively recommends it to all the employees in her company when they run helter-skelter to…

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Income Tax Slabs and Rates for 2018-2019

  Decoding Income Tax Slabs Rahul recently got a great promotion with a sizeable raise. In his 4 years of being on the job, he didn’t have to worry about taxable income. He would diligently submit his investment documents in January, each year. Now, his C.A. informed him that his new salary might be taxable. Rahul knows he can rely on his C.A., but he is curious about how income-tax is computed. Let us help him understand financial terms he should be aware of. Income Tax: As an Indian citizen,…

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Ulip vs ELSS – Difference between ULIP and ELSS

In this article we will explore the difference between ULIP and ELSS. Understanding the difference between the two will help you decide which is better ULIP or ELSS. 1. Feature: The key difference between ULIP and ELSS is the nature of the product. Unit Linked Insurance Plans also known as ULIPs are sold by insurance companies. ULIPs give the benefit of investment coupled with insurance coverage. Part of the premium paid goes into different funds for investment purposes as the investor chooses and a part of the premium is used…

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ELSS vs FD – Difference between ELSS and FD

ELSS vs FD – Difference between ELSS and FD ELSS FD Type of mutual fund where money goes into equity market Type of deposit where a specific amount is put into an account for a fixed tenure Varied returns Guaranteed returns Prone to risks Little or no risks Minimum lock-in period of 3 years Five-year lock-in period for tax-saving MFs; flexi lock-in period for other FDs Dividend earned is not taxable Interest earned is taxable Loan cannot be availed Loan can be taken against regular FD, but not against tax-saver…

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Best Tax Saving Investment Options

Tax saving investments are crucial to one’s financial planning, because they not only help an investor to save tax but also meet different financial goals. The Income Tax 1961 offers several tax savings investments for the investor so that he saves on taxes and at the same time make investments for the future. These tax saving investments are also referred to as tax free investments because the amount invested in these can be claimed as a deduction, this reducing total tax liability of an investor. We look at some of…

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How to become a financially independent woman

Traditionally finances have been considered a man’s domain. Though women have managed family finances and also been responsible for savings, they have depended on a male figure father, husband or brother to take financial decisions. But times have changed. More and more women are coming into the workforce and taking charge of their lives and careers. With the high cost of living, it is important that the lady of the house is also an earning member. Financial independence is required to boost one’s morale and also ensure that the woman…

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What is Fintech

Fintech is a term all of us hear a lot nowadays. What is Fintech, you may ask. Fintech stands for Financial Technology. Fintech thus refers to technologies used in the financial services sector by financial institutions for their back-end operations. In a more specific sense Fintech refers to technological innovations that are coming in to disrupt traditional financial services and this includes the whole gamut of services from banking which includes mobile payments, money transfers, loans and also other products like mutual fund and insurance. So in essence Fintech is…

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Mutual Fund Redemption Process

Mutual fund redemption refers to selling your mutual fund units. The process of mutual fund redemption is quick and simple, making mutual funds a very liquid investment. This is another reason why mutual fund investments are lucrative. You can redeem mutual fund when you are not happy with the performance of a fund or when you need some money. In this article we will take a look at how to redeem mutual funds. The mutual fund redemption process can be online or offline. How to redeem mutual fund will depend…

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Election 2019’s Effect on Stock Markets

With the date of 17th Lok Sabha being announced, there is one question that is on every investor’s mind – what will be the election effect on the stock market? Election and stock market is related because elections decide which government will be in power over the next 5 years. To understand the election effect on the stock market we need to understand that in general the markets and the investors like stability and react positively to it. Historically it has been seen that election effect on the stock market…

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Private REITs – What is a Private Real Estate Investment Trust

Private real estate investment trust is one of the many different types of REIT. A REIT is a type of mutual fund for real estate investment where investors pool their money to invest in property and get dividends in return. REITs come up with an initial public offer (IPO) that is open to investors after which they are listed on an exchange, where they are freely bought and sold. So what is private REIT? A private REIT is one that is not traded on any exchange, and is generally open…

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