PCS CAPITAL

 Just random thoughts before buying a house but these are very important...do read and think seriously. Don't jump to buy a house because your friends or relatives  are buying.  These points are from experts and people who experienced the pain of buying house without proper planning Now that people have postponed their foreign trips, they all want to buy a house…. Let us see if you can afford a house: – can you afford to pay at least 40% of the cost of the house as a down payment? – can you afford to pay the EMI on just ONE salary while running your household ? – will you REALLY save any rent that you are currently paying? – what happens if you buy the house, and at the same time your wife gets pregnant and is advised bed rest? – what happens if one of you quit a job voluntarily and one of you lose your job involuntarily? – remember if you take a 25 year loan, how quickly will you really repay? – how prepared are you for a loss of job coupled with a fall in property price...

  Investing in any financial asset has some Do’s and Don’t’s   . Below are the few points one need to underline before investing in Mutual funds   Do’s   -Focus on Wealth creation -Asset allocation -Systematic Investment Plan -Opt for professional help   FOCUS ON WEALTH CREATION   When investing in mutual funds focus on long term wealth creation. Most mutual funds are not the appropriate vehicles to make short-term trades.   ASSET ALLOCATION   Part of having a plan is determining your asset allocation. Asset allocation defines what portion of the invested capital should be allocated to each asset class (i.e. debt, equity, gold, real estate, etc.). Asset allocation would depend on your goals, existing investments, and the current market conditions. All investments should be aligned to your desired asset allocation.   SYSTEMATIC INVESTMENT PLANS   Investing isn’t a one-time activity. Financial markets work in cycl...

 Exchange rate is the price of foreign currency in terms of domestic currency (rupee) i.e amount of domestic currency needed to buy one unit of foreign currency. Let us understand what is currency appreciation and depreciation  Rupee prices keep fluctuating all the time . Sometimes we need more rupees to buy one unit of foreign currency and some times we need fewer rupees to buy one unit of foreign currency. This change in rupee price is known as rupee appreciation or depreciation Rupee appreciation is when value of rupee increases (becomes expensive) . Rupee depreciation is when rupee value decreases (becomes less expensive) and more rupees can buy one unit of foreign currency . This is known as weakening of rupee as now INR worth is less than foreign currency. What causes currency to appreciate or depreciate ? Like any commodity whose price is determined by its demand and supply , currency price is also determined by demand and supply of that currency in the International ma...

 Finance Bill 2021-22 has proposed to tax gains from ULIP with a premium of more than Rs. 2.5 lakh per year to remove the disparity relative to mutual funds. This means from April 1st 2021 if you buy a new  ULIP with a premium of more than Rs. 2.5 lakhs the maturity proceeds will be taxed identically to mutual funds. Death benefits continue to remain tax-free regardless less of the premium amount. Lets hope no more mis selling happens