Sunday, January 24, 2016

Bank FD vs Liquid Fund Taxation


FIXED DEPOSIT
Amount Invested Rs. 100 Lakh
Tenure : 3 years
Interest Rate : 7.5%
Maturity Amount : 124.35 Lakh
Tax Rate : 34.61%  {30% + surcharge 12% + 3% cess}
Tax Liability : 8.43 Lakh

Net Amount : 115.93 Lakh


LIQUID FUND / FMP / DEBT FUND
Amount Invested Rs. 100 Lakh
Tenure : 3 years
Return Rate : 7.5%
Maturity Amount : 124.35 Lakh
Indexed Cost : 122.50  (Assuming Inflation 7%)
Capital Gain : 1.86 Lakh
Tax Rate : 23.07%  {20% + surcharge 12% + 3% cess}
Tax Liability : 0.42 Lakh

Net Amount : 123.94 Lakh

You can save a whopping Rs.8 Lakhs by simply taking wise deciscion.


Note: This calculation are done to simplify the understanding of the tax calculations. you might consult your C.A for exact calculation and Tax rates applicable in that particular year.

Indexation Benefit of DEBT Fund vs Bank FD

Following table shows amazing Tax Benefit you can take in DEBT Mutuals, FMP vis a vis investing in Bank FD.


Friday, January 1, 2016

Top performing Mutual Funds of year 2015

Below is the list of Top performing Mutual Funds of various category.

Large Cap Mutual Funds
1. SBI Bluechip Fund
2. Kotak 50
3. IDBI India Top 100 Equity Fund
4. Franklin Bluechip Fund
5. Reliance Focused Large cap fund

Midcap Mutual Funds
1. SBI Small and Midcap Fund
2. Birla SL MNC Fund
3. Motilal Focused Midcap 30
4. SBI Midcap Fund
5. Reliance Small Cap Fund

Diversified Equity Mutual Funds
1. Motilal Focused Multicap 35
2. UTI MNC Fund
3. SBI Magnum Multicap Fund
4. Reliance Growth Fund
5. Kotak Equity Savings Fund

ELSS Tax Savings Mutual Funds
1. Tata Long Term Equity Fund
2. Axis Long Term Equity Fund
3. Birla SL Tax Relief96
4. IDFC Tax Advantage
5. SBI Magnum Taxgain

Balanced Funds
1. Reliance RSF Balanced Fund
2. ICICI Pru Balanced Advantage Fund
3. SBI Magnum Balanced Fund
4. Tata balanced Fund
5. Franklin India Balanced Fund

Friday, December 18, 2015

Property vs Mutual Funds excellent analyis

This is nice piece of work of point to point comparision of properties across various location and various time frames vs performance of various Mutual Funds for the same time horizon.

This transcript is really an eye opener.

www.wealthforumezine.net/InvestorsMeetTranscript110415I.pdf

Tuesday, March 3, 2015

Dividend declared by various Mutual Funds

Dividend declared by various Mutual Funds in last few days.

HDFC Top 200 - Rs. 5 per unit.
Reliance Growth Fund - Rs. 6.5 per unit
Axis Equity Fund -  Rs. 1 per unit

Thursday, January 15, 2015

Tax 0n Debt Mutual Funds


Taxes on Debt Mutual Funds currently is

1. If holding period is less then 36 months then Marginal rate applicable to the investor.

2. If holding period is more then 36 months then the Tax is 20% after Indexation as LONG TERM CAPITAL Gains apply.

3. Dividend Distribution Tax on Debt fund is now 28.32%






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