IntroductionBuilding a well-diversified investment portfolio is crucial for long-term financial success. One common question that investors often ask is how many funds they should include in their portfolio. While there is no one-size-fits-all answer, this article aims to explore the factors to consider when determining the ideal number of funds for an investment portfolio. Understanding DiversificationDiversification is a risk management strategy that involves spreading investments across different asset classes, sectors, and geographical regions. The primary goal is to reduce exp ..read more

In a surprising move, the Reserve Bank of India (RBI) has recently announced the withdrawal of Rs.2000 banknotes from circulation. This has left many people wondering about the appropriate course of action, if they possess these currency notes. So here's a short and quick guide on what you should do if you currently hold Rs.2000 banknotes, to ensure a smooth transition and minimal inconvenience. 1. The banknotes of Rs.2000 denomination continue to be legal tender. So you can still use them for day-to-day transactions. 2. RBI has stipulated September 30, 2023 as the deadline, by which dat ..read more

Interest on Bank Fixed Deposits is taxable as per one's income tax slab rate. Vis-a-vis this, till Mar 31, 2023 the long term capital gains (holding period more than 3 years) on Debt Mutual Funds was taxed @20% with indexation benefit. [Note: Like Banks FDs, the short term capital gains (holding period upto 3 years) on Debt MFs was taxable as per one's income tax slab rate.] Therefore, there was massive tax advantage when a person in the higher tax brackets invested in Debt MFs as compared to the Bank FDs, and held it for more than 3 years. Sadly, w.e.f. April 1, 2023, this huge tax bene ..read more

The Department of Economic Affairs, Ministry of Finance has announced the revised interest rates on the Post Office Small Savings Schemes for the first quarter of the Financial Year 2023-24. Thankfully, there is a sharp increase in the rates of most the schemes. The only disappointment is the PPF — a very popular investment among Indians — where the rate remains unchanged. This will definitely bring smiles to the investors in Small Savings Schemes, They have been suffering a steep increase in their monthly household budgets on account of inflation; besides the massive jump in the home loan E ..read more

This guest post is contributed by choiceindia.com Stocks may be the most acceptable option for you if you're an NRI looking for the best investment opportunities in India. After the United States and Japan, India has the third-largest investor base worldwide. For NRIs who wish to engage in Indian stock markets under the Portfolio Investment Scheme (PIS), which is governed by the RBI, the Foreign Exchange Management Act (FEMA) has set forth several regulations. Being a Person of Indian Origin (PIO) or an Indian citizen residing outside India qualifies you as an NRI. There should be a minimu ..read more

Frankly speaking, except for a few, there is absolutely NO NEED for the AMCs (Asset Management Companies) to come out with so many New Fund Offers (NFOs). Why? Because they already have similar funds among their existing schemes. So, there is nothing really "new" in these New Fund Offers. You can invest in the existing "proven" funds and earn practically speaking the same kind of returns as in these 'new funds'. Then, why this mad rush on the part of AMCs to launch NFOs every other day? More importantly, why this mad rush on the part of investors to invest in these NFOs?The probl ..read more

Many people are attracted towards NPS (National Pension System) primarily for one reason... EXTRA TAX SAVINGS. Firstly, you can invest an 'additional' amount — over and above the Rs.1.50 lakhs limit u/s 80C — in the NPS and claim extra tax deduction of up to a sum of Rs.50,000 per year; giving you a total deduction of Rs.2 lakhs. Secondly, your employer can contribute up to 10% of your salary (Basic + DA) in the NPS. This contribution from the employer is NOT INCLUDED in your taxable income for the year. This, double tax savings bonanza, is quite tempting indeed. More importantly, this ta ..read more

Image courtesy:Gerd Altmann from Pixabay Recently, there has been a sharp surge in the 'new' equity investors. However, still more than 90% of the Indians don't invest in the stock market. Reason? FEAR OF LOSS. I invest in equity. Does it mean that I am okay with losing money? No, definitely not! On the contrary, like everyone else, I too HATE losing money... but with a difference. I hate losing money in low-return and tax-inefficient investments like Fixed Deposits.I hate losing money in sub-standard products such as Insurance Policies and Annuities.I hate losing money in dubious ..read more

Image courtesy: Free-Photos from Pixabay Frankly speaking, except for a few, there is absolutely NO NEED for the AMCs (Asset Management Companies) to come out with so many New Fund Offers (NFOs). Why? Because they already have similar funds among their existing schemes. So, there is nothing really "new" in these New Fund Offers. You can invest in the existing "proven" funds and earn practically speaking the same kind of returns as in these 'new funds'. Then, why this mad rush on the part of AMCs to launch NFOs every other day? More importantly, why this mad rush on the part of in ..read more

Every other day the Sensex and Nifty are creating new highs. Undoubtedly, there is extreme euphoria in the stock markets. However, the underlying economy is still not out of the woods. So, as stock prices rise, the valuations get more and more stretched. Given this scenario, the common investor is asking the most logical question... should I sell, wait or buy more? To arrive at the right answer, let me first tackle the valuation aspect and then present before you a different perspective about the markets. STEEP VALUATIONS Actually, this valuation business is becoming confusing day by day ..read more