Wednesday, September 14, 2016

Home Loan EMI Refund Concept.

Many home buyers are buying property or there first Dream House via Home Loan and pay EMI every Month.

Is there a way to get all this EMI back ?

If you avail of Home Loan of 10 Lakhs for 20 years with Interest rate : 9.5% then

Monthly EMI       :Rs.          9321.31
Principal Amount : Rs. 10,00,000.00
Interest Payable   : Rs. 12,37,144.00
Total Amount       : Rs. 22,37,115.00

Now to get back your Interest Just start an SIP of 0.10% of your Home Loan aside till tenure of your Home Loan.
For Ten Lakhs do an SIP in Diversified Equity Fund of Rs.1000. for 20 years.

SIP Amount : Rs1,000
Principal Amount : Rs. 1000 * 240 months =Rs 2,40,000

Returns @15% = Rs. 14,97,239
Returns @18% = Rs. 23,43,487

So if you invest in Good Diversified Equity Funds and get 18% return you will Get Back all your Principal amount + Interest + some Gains.

Think about it. It does Work.

Friday, April 1, 2016

Top Performing Mutual Fundsfor period ending 31/03/2016

Following is the list of few Top performing Funds over last financial year ending 31/03/2016

1. SBI BlueChip Fund
2. Kotak Select Focus Fund
3. Franklin Bluechip Fund

1. SBI Small and Midcap Fund
2. DSP-BR Microcap Fund
3. Mirae Emerging BlueChip Fund
4. Reliance Small Cap Fund

1. PPFA Long term Value Fund
2. Kotak Equity Savings Fund
3. SBI Magnum Multicap Fund
4. Franklin Prima Fund

TAX Saving ELSS Funds
1. DSP-BR Tax saver Fund
2. Franklin India Tax Shield
3. Birla SL Tax Plan 96
4. Axis Long Term Equity Fund

1. ICICI Pru Balanced Advantage Fund
2. SBI Balanced Fund
3. Franklin India Balanced Fund
4. Reliance RSF Balanced Fund

Monday, February 29, 2016

Budget 2016 Tax slab remains same

Few Things to note in this budget.

Tax slabs remain the same. They’re still at

  • Less than 2.5 lakh: no tax
  • 2.5L to 5L: 10%
  • 5L to 10L: 20%
  • >10L: 30%
If your income is less than 5L, you got a rebate of Rs. 2000 thats now increased to Rs.5000 (you had to pay that much less). 
Dividends received from listed companies was not taxed in the hands of the shareholders (Individuals/ HUF/ Resident of India). The company paid dividend distribution taxes before dividend was paid out. 
 Effective 1 April, 2016 any dividend income (from equities or bonds) received by an individual or a HUF in excess of Rs. 10 lakhs shall be taxed at a rate of 10%. This is only limited if the dividend income is greater than 10 lakhs in a year. However first Ten lakh of dividend is still tax free.
It also applies to mutual fund dividend payouts and private company dividends. 
This shall be applicable from the 1 April, 2016 which means that the dividends declared before 31 March, 2016 would not be taxable.
The big blow to everybody is the Service tax being raised from 14.5% to 15% on all services. It sounds so small but it pinched you an all the services.

Sunday, January 24, 2016

Bank FD vs Liquid Fund Taxation

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

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.