How Indians invest their money?

Most of us would be investing our money in Fixed Deposits, Real Estate, Mutual Funds etc.

But have you ever wondered where do Indians cumulatively invest their money and in what proportions? Do you know how much worth of Gold we Indians own?

Read on to know the answer to aforementioned questions and some other interesting facts.

Total individual wealth in India or the money owned by all individuals in India (i.e. not considering the government and institutional money) is divided primarily into 2 segments – Continue reading “How Indians invest their money?”

What is indexation on investments and how can it help you on saving taxes this financial year?

Indexation is one of the most important principal to know if you are an investor in real estate, mutual funds, direct equity i.e. in almost all investment instrument of relevance. Indexation is one of the key factors (for saving taxes), effective use of which can reduce your tax burden significantly.

Following is a technical understanding of Indexation:

Indexation is a technique used to adjust the purchase price of Continue reading “What is indexation on investments and how can it help you on saving taxes this financial year?”

Can a value of mutual fund decrease even after a rise in it’s NAV?

Originally asked and answered on Quora, following is the link

Now an investor has invested Rs. 400 in Reliance liquid fund-Treasury plan when the NAV was 4023.9108(units allocated=0.099). The very next day NAV increased to some 4024 and now it is 4026.7599 but the value of his fund reduced to 398.65. So, he was wondering that even though the NAV increased why did he lose value?

This is a very interesting situation and a basic fallacy in how the mutual fund system works in India. Continue reading “Can a value of mutual fund decrease even after a rise in it’s NAV?”

PayTm planning to launch a money market mutual fund, will it help a consumer?

PayTm is planning to launch a Money Market mutual fund, as reported in news today.

For a long time it was being speculated that PayTm will foray in the mutual fund space as a distributor i.e. they will allow PayTm account holders to invest in any mutual fund schemes and earn commission from the Asset Management Companies (AMC) i.e. the ones who operate this mutual funds – ICICI, Reliance, HDFC etc. However, this move by PayTm is unprecedented and definitely a shocker Continue reading “PayTm planning to launch a money market mutual fund, will it help a consumer?”

Mutual Fund Sahi Hai! – What to look for in Mutual Funds before investing?

Yesterday after a long time I was watching TV and the occasion was nothing short of a festival as Indian Cricket Team was playing against Pakistan in Champions Trophy 2017.

Though the match turned out to be quite painful, I was pleasantly surprised by seeing the number of ads which are being run online by AMFI (Association of Mutual Funds of India) to educate common man (retail investor) about investing in Mutual Funds.It’s a great marketing strategy to occupy short ad spots and increase the frequency with which the ad appears, and this is what they seem to be doing, Continue reading “Mutual Fund Sahi Hai! – What to look for in Mutual Funds before investing?”

SEBI allows investors to invest in Mutual Funds via Mobile Wallets, is this a right move?

Mutual Fund is one of the highest regulated industry in India, even more so than some of the developed nations, this makes it easier for an investor to trust and invest their money in mutual funds (as the probability of wrong doing is incredibly low), however at the same time this curbs the overall industry to spread it’s wings, educate more people about mutual funds and get them to invest. Continue reading “SEBI allows investors to invest in Mutual Funds via Mobile Wallets, is this a right move?”

What are the top mutual fund companies and scheme in India?

On the background of good governance, possibility of strong economic growth and stagnancy in real estate, Mutual Funds are becoming a preferred mode of investment for both HNIs (High Networth Individuals) and Retail Investors.

Infact, the kind of growth which is being seen in Mutual Fund Industry right now is unprecedented and the overall asset base has already cross Rs. 19 Lakh Crore in FY 2017 and is expected to cross Rs. 20 Lakh Crore by the end of this Financial Year (as reported in following TOI Article). Continue reading “What are the top mutual fund companies and scheme in India?”

How does taxation on Mutual Fund investments work?

However, complicated it might sound, tax levied on Mutual Fund investment is very straight-forward and simple. Best thing about taxation on Mutual Funds is that there is no TDS (Unlike Fixed Deposit), and a investor needs to declare it’s taxes on it’s own after adjusting for all capital gains (or loses). Continue reading “How does taxation on Mutual Fund investments work?”