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  Tax saving investment plans are instrumental in effectively achieving your financial goals. Investment schemes available in the market provide tax exemptions and tax deductions. Learn how you can reduce your tax burden by investing in the tax saving schemes at the right time. Choose from various tax saving mutual funds to claim tax exemptions and/or tax deduction under section 80c or section 80ccc. NPS u/s 80CCD :  The National Pension Scheme is a contribution based retirement scheme regulated by PFRDA, which is backed by Govt. of India. It helps you build a retirement corpus in a systematic manner during your working life. Tax Benefit :   NPS comes with the dual advantage of additional tax benefit up to Rs. 50,000 u/s 80CCD(1B) over and above the limit u/s 80C of Rs. 1,50,000 and assuring a regular income in the future. Section 80D - Deduction upto Rs. 55,000 per financial year. (Rs. 25,000 for Self, Spouse & Dependent Children + Rs. 30,000 for Parents who are s...

Some very important financial tips that everyone should know ….These tips are from experienced wealth creators whom i met in my Investment journey .  Worth following to get discipline in daily finance and Investments.  1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It's important to monitor cash flow. Though, the house will be your asset, your liability will be much more. 2. Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings. 3. Avoid buying a car unless you use it everyday. . 4. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds. 5. Try having a simple wedding. 6. Atleast 20% of your wealth should be liquid so you can utilize it wh...

 The equity segment of the stock exchange allows trading in shares, debentures, warrants, mutual funds and exchange traded funds (ETFs).  lets us know what are these  An Equity Share represents the form of fractional ownership in a business venture. Equity shareholders collectively own the company. They bear the risk and enjoy the rewards of ownership.   Debentures are instruments for raising debt. Debentures in India are typically secured by tangible assets. There are fully convertible, non‐convertible and partly convertible debentures. Fully convertible debentures will be converted into ordinary shares of the same company underspecified terms and conditions. Partly convertible debentures(PCDs) will be partly converted into ordinary shares of the same company under specified terms and conditions. Thus, it has features of both debenture as well as equity. Non‐Convertible Debentures (NCDs) are pure debt instruments without a feature of conversion. The NCDs are ...

 Recently , we are seeing huge demand in IPO from retail investors , unfortunately many are not getting any allotment . Why this happens ? let us  know how exactly IPO shares are allotted .  What is the IPO or Initial Public offer :    IPO is the selling of securities to the public in the primary market.  A primary market deals with new securities being issued for the first time .  After listing on the stock exchange, the company becomes a publicly-traded company and the shares of the firm can be traded freely in the open market. Procedure for allotment of shares in IPO  If any company goes in public all bids for the shares  in online , from online first they eliminate all invalid bids which were incorrectly submitted from number of total bids , then we will know number of final bids. There are two cases amongst which the situation of a company may fall in, that are: 1  If the total number of bids made by the applicants is less tha...

  Invest in Mutual funds to achieve your children education goals .  This is a sample video which explains the cost of child education after few years . For more details on investments do reach us on pcswealthadvisers@gmail.com

Everyone are worried about taxes in Debt mutual fund and sale of land .   Indexation is an efficient way of preventing draining of your returns on investments in the form of taxes. Indexation is applicable to long-term investments, which include debt fund and other asset classes. Indexation helps you in adjusting the purchase price of the investments. In this way, you will be able to lower your tax liability. One need to understand Inflation and capital gains before understanding Indexation Inflation is increase in the price of  product or service . It means  you will be able to buy fewer things year after year as compared to what you can buy today with the same amount of money .  Capital gains is the increase of value of investment in over a period of time . Suppose if you have purchased debt mutual fund for a NAV 10/- and after a year you sell same fund at a NAV 11/- the difference between  purchase NAV and selling NAV is your capital gain.  In other word...

 Time to file ITR , if you are in equity or any other asset investments , you need to know about Long and Short term capital gains and how they are taxed  Any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain. This gain or profit is comes under the category ‘income’, and hence you will need to pay tax for that amount in the year in which the transfer of the capital asset takes place. This is called capital gains tax, which can be short-term or long-term . Short term capital asset : Any asset hold for less than 36 months (other than listed equity) is a short term capital asset . Long term capital asset : An asset that is held for more than 36 months is a long-term capital asset How taxes are calculated  Tax Type Condition Tax applicable Long-term capital gains tax Except on sale of equity shares/ units of equity oriented fund 20% Long-term capital gains tax ...

 What is disinvestment ?  Disinvestment means sale or liquidation of assets by the government . The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources. In some cases, disinvestment may be done to privatize  assets. However, not all disinvestment is privatization .  Benefits of disinvestment  1. Helpful in the long term growth of the country 2. Allows govt to reduce the debt 3. It allows larger share of PSU ownership i nthe open market , which in turn allows for the development      of a strong capital market in India. 4. Reducing fiscal burden on ex -chequer 5. Improving public finances 6. Encouraging private ownership All disinvestments are not privatization  Whenever Govt desires it may sell whole enterprise or majority stake it to private enterprise . In such case we call it as privatization where ...

  In march 20 we saw biggest  intraday fall , more or less and we saw big up in april and we saw lot of speculation  and many queries like why mkts are up when nothing is moving in economy , and experts were saying this is not the true rally and we will see more downside and today mkts are down by 1% and everyone are claiming that i told you and it fell.  To be honest stock mkts are  governed by some people  and they don’t think logically , they hope everything  is alright and lockdown more or less is over and we are back on track,  also think on investing on potential future gains.. but whatever the reasons are as.. long term investor in equity  don’t need to know the reasons why markets are falling, why markets  are moving up We don’t need the reasons and we dont need to sit and worry about what all analysts and experts in media says about false rally and true rally. All these experts analysis is complete garbage to your portfolio and ...

I often get questions from youngsters on savings and investments , they are more confused and at the same time more excited on investments after receiving their first salary .  Below are few tips  1.  Take Term plan and Health Insurance for you and  your immediate dependents  (very important to take   though  your employer is providing ) 2. Buy something for yourself and family (after all it is your money and it should be spent) , but make sure it wont be recurring expenses 3. From your first salary invest 25% in liquid fund or any F.D (this would be your emergency parking) .     You can reduce this emergency allocation after one year or so and Increase again if you have used these funds in an emergency . 4. Do not get in to EMI's  in early stage of your career and say no to credit cards  5. Allocate some money for your short term goals like buying a bike or going for a holiday with friends or       fam...

Am not against banking services or anything , I have high regards on our banks and I firmly believe they are the pillars of any economy .  If banks are strong economy grow strong .  I have  a big problem with Bank Relationship managers who try to sell wrong products  to their customers to achieve their targets and revenues .  They generally have huge targets and they are trained to provide misinformation and do wrong product selling to their customers (be wary) One can easily understand , when you you step in bank and ask for a PPF , they try to sell you a ULIP (sadly by saying all disadvantages of PPF)  If you ask about FD they can sell you Tier 1 bond (they compare with FD) . This has happened with yesbank customers and still happening with many .  If you want to buy a sukanya samridhi scheme ( beautiful product from Govt of India) they sell you child insurance plan .  "Never ask a barber if you need a haircut " same way "Never ask a banker wher...

  ELSS  ELSS schemes function in accordance with ELSS guidelines issued by CBDT under Section 80C of the Income-tax Act, 1961 to provide tax savings on investments in equities. The amount you invest in ELSS is deducted from your taxable income. This way, you lower the amount of income tax you need to pay. Benefit of  ELSS  ELSS is a type of mutual fund investment that qualifies for tax deductions u/s 80 c of IT Act ,1961 open-ended fund which has a 3 year lock-in period  With the growth potential of Indian equity markets from a long term perspective, investments in ELSS to save taxes could just turn your wealth creation dream into reality.   lets see other alternative tax saving instruments There are several financial instruments in savings and investments that qualify for tax deduction under Section 80C of the Income-tax Act, 1961. These include provident fund, PPF, premiums towards life insurance policies, NSC, ULIPs, bank FDs with 5-year lock-in, h...

Importance of Contingency Funds An unexpected event, like an illness or a business loss could affect the financial security of your family. Such an event would make it difficult to meet your monthly expenses and/or your financial obligations. More importantly, you might break into investments meant for other goals in your life, thereby derailing your financial plan altogether. A financial contingency plan helps you cope with such unexpected events, by keeping aside funds for this purpose. People face some challenges in planning for contingencies Be prepared for alternative   :  While doing financial planning, investors tend to get emotionally attached to their plans. Consequently, they tend to ignore coming up with an alternative plan for emergencies. It is essential that investors look beyond ‘Plan A’ and keep a ‘Plan B’ (or, a contingency plan) in place, for emergencies. I dont need it (mindset) : Planning for contingencies generally takes a backseat in an investor...

Impact of Inflation on investments Inflation is a villain to your investments , it is a hidden bug which eats our returns . Before investing we need to understand what is inflation and its impact  In simple terms inflation reduces purchase power of money . Its a    general trend of price rise in a country. there can be a multiple factors responsible to rise in inflation .  Inflation can be caused by Deficit financing , over supply of money  and other many factors How Inflation impacts you and me  ? With rising prices , as a common man we remain always at the receiving end at the time of high inflation .  let us understand in simple way  If you buy a pen worth Rs 10/- last year and same pen costs 11/- today and you lost 1/- to inflation , in same way if your Bank F.D is giving you 6% p.a returns and inflation is 7% then your real returns are minus 1  , however if you have put this money in equity and if it gives 9% then your real returns are 2...

 ULIP and Mutual fund People often get confused in selecting ULIP or MF because they think both are same . lets understand the difference between these two ULIPS is an insurance product which gives life cover and also invests in stocks , bonds and other money market instruments . Mutual funds is a pure investment tool without any life cover . its sole purpose of investment is to generate returns Liquidity  ULIP has a lock in period , MF dont have any lock in (except one is looking for tax saving option) . Mutual fund offers better liquidity (unless you invested in tax saving fund which has 3 years lockin)  and can be withdrawn anytime subject to some charges , whereas ULIP has different rules . For the withdrawal of investments from ULIPS you need to be invested for 5 years , even if you wish to discontinue your investments in ULIP say i nthe third year of investment , your invested money will be available to you only after 5 years from date of buying ( this is the drawb...