Understanding basics of setting your financial goals…

The process of financial planning begins with identifying and articulating your financial goals. What exactly is a financial goal is hard to define. This is a question that will plague you when you sit down to plan your financial future. There are a few basic steps you need to follow while setting your financial goals so that the process of setting goals can actually be a lot more fruitful for you. Here are the 5 points to keep in mind… Continue reading

Now Mutual Funds cannot restrict redemptions at will…

The recent circular from SEBI on May 31st has put several conditions for restriction of redemptions by mutual funds. Currently, mutual funds can decide to freeze redemptions on any scheme if the Board of the AMC and the Board of the Trustees agree to it. We recently saw the case J P Morgan Mutual Fund. It two debt funds had and exposure of nearly Rs.193 crore to the bonds of Amtek Auto. When Amtek got into financial trouble, the bonds were downgraded by CRISIL. This led to a crash in the price of these bonds. With these bonds becoming illiquid, there was no way the fund could have handled redemptions. As a result they had to freeze redemptions, till the issue had got sorted out. Continue reading

Should you choose an ELSS scheme or a ULIP scheme?

Many investors who want to save on tax tend to get confused between an ELSS scheme and a ULIP scheme. The only thing common between the two is that both are tax saving instruments and both offer tax exemptions under Section 80C of the Income Tax Act. Other than that there some key differences between a ULIP and an ELSS plan. Here are some of the key differences that investors need to know to take a rational decision. Continue reading

Why BREXIT may actually be good news for Indian markets…

For any market participant who had seen the Sensex carnage on the day of the BREXIT vote, it would be hard to believe that BREXIT could actually be beneficial for India. While short term negative repercussions cannot be ruled out as an outcome of BREXIT, India will stand to benefit in the longer term. Here are 5 reasons why India will benefit from BREXIT… Continue reading

BREXIT and India

The impact will be more about sentiments than fundamentals…

The RBI and the Finance minister have been categorical that the Indian economy is well prepared to handle the aftermath of the BREXIT vote. Over the longer term, the impact of BREXIT may not be too acute, but in the short term the sentimental impact will surely be strong; and that cannot be wished away. There are 3 such implications… Continue reading

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