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 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

  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...