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Here I will try to give a perspective opinion of mine on this topic . As you all know we have been going through an unprecedented situation of the century due to COVID19.Till couple of months back nobody have ever thought the world will stand still for so many days where the entire world will go back to decades economic wise and has to restart. Now coming to Franklin , funds which got closed 1.  Franklin Ultra Short Bond Fund – 0.62 years 2.  Franklin Low Duration – 1.46 years 3.  Franklin Income Opportunities – 2.55 years 4.  Franklin Short Term Income – 2.75 years 5.  Franklin Credit Risk Fund – 3.08 years 6.  Franklin Dynamic Accrual Fund – 4.28 years What is the implication of this ? 1.  Your money is locked now until AMC will make the payments. 2.  You can not Purchase,redeem , SWP and STP any longer What is DEBT scheme ? Debt scheme are the schemes where MF/NPS/PMS/ take investor money and buy ...

Why Mutual Fund portfolio now require restructure …. It is just because of below 3 reasons 1.     Introduction of LTCG 2.     Categorization of Mutual Fund by SEBI 3.     Introduction of TRI (Total Return Index) Introduction of LTCG : That means frequent buy and sell of funds will put you in the trap of taxation and on a long run basis your return will reduce. Because each time you redeem you will pay tax and while reinvesting you need to pay upfront expense (applicable in both regular and in direct). Also we need to stop running behind those funds which are giving best return in recent times by churning your portfolio again and again may become fatal. So now your responsibility becomes more to choose right fund and stick to it for a lengthy duration. Categorization of Mutual Fund by SEBI : After new guideline from SEBI , a large cap should only consist of large cap (no mid and small cap) Similarly s...

Corporate fixed deposits and bonds are mandatorily required to get rated by a credit rating agency before going for a public issue. Credit rating signifies how risky or safe it is for you to invest in that financial instrument. CRISIL, CARE and ICRA are examples of some well known credit rating agencies. Following are some symbols that CRISIL gives to corporate bonds:-

Before investing in balanced fund we need to know what balanced fund is. Balanced fund invests in both debt and equity (stocks). What is debt? In lay man words debt are fixed income instruments like bank FD, Government security bond etc. Who should invest in Balanced Fund? See there is no exact answer for this. However if you are risk averse and have fear for equity fund but still want to take a flavor of equity return in long run (more than 5 year) then probably this is a fund for you. I would say this is the best way to outsource your asset allocation….By investing in balanced fund you are asking mutual fund to do asset allocation between equity and debt .. Who decides how much of the fund should be in debt and how much on equity? The respective fund manager decides this. Example: HDFC Balanced Fund invests 71 % in equity and 26 % in debt. How Taxation works on this? As per regulation it was defined that the fund which invest 65 % or mo...

ELSS is Equity Linked Saving Scheme mutual funds which come under 80C for tax savings. ELSS funds offer triple benefits of tax savings, capital appreciation and tax free returns to the investor. Few things you must know: • It is diversified and comes under 80C for tax savings.     • The return and dividends for ELSS are tax free like in PPF. • This has luck in period of 3 years unlike in PPF for 15 years. • In the PPF, the investor must make at least one contribution in a year or pay a penalty. However, there is no such compulsion in ELSS funds. • The returns are entirely dependent on market .However Some of the funds have grown 2 times in 3 years and 3 times in 5 years. How you can maximize return from ELSS? • Make it GROWTH option instead DIVIDEND option and choose best performing funds. • Can make it DIRECT plan in order to save commission and other expense but your agent may not like this  J • Start through SIP for cost averaging. Let...

Last weekend I thought of doing a FD and was checking with various corporate FD and Bank FDs What I found DHFL corporate FD for 40 months is giving 10.10% interest. But I had a mixed  experience with FDs because last time when I did FD with HDFC ltd , though I did with high interest rate of 10.50%, I got minimal return because of taxation. This time I did not want to repeat the same mistake. So I was checking what are other avenues where post tax return for me would be better than these high interest rate FDs. I found debt funds are better than bank FDs in long run for post-tax return. Now question arises how?  J Before understanding we need to understand  Cost Inflation Index(CII) What is CII? It is used for calculating long term capital gain from income tax act section 48 CBDT has notified the Cost Inflation Index (CII) for Financial Year 2014-15. Complete Notification is Given Below. SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT...