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HDFC Pension Fund

In the previous six months, HDFC Pension Fund has returned 21.35 per cent in Scheme E Tier-1 and 21.23 per cent in Scheme E Tier-2. In the previous year, HDFC Pension Fund provided a 63.08 per cent return in Scheme E Tier-1 and a 62.85 per cent return in Scheme E Tier-2. This fund’s 5-year CAGR in Tier-1 and Tier-2 schemes was 15.36 per cent and 15.41 per cent, respectively, over the last five years.

UTI Retirement Solution Fund

The UTI Retirement Solution Fund has returned 21.97 per cent in Scheme E Tier-1 and 23.07 per cent in Scheme E Tier-2. In Scheme E Tier-1, the UTI Retirement Solution Fund under the NPS Scheme generated 64.28 per cent, whereas under Scheme E Tier-2, the UTI scheme provided 65.90 per cent. This fund’s 5-year CAGR in Tier-1 and Tier-2 schemes were 14.04 per cent and 14.35 per cent, respectively, over the last five years.

LIC Pension Fund

According to the performance chart of individual NPS schemes as of May 31, 2021, the LIC Pension Fund has produced a 23.03 per cent return in Scheme E Tier-1, whereas the NPS scheme has given a solid 22.82 per cent return in Scheme E Tier-2. According to the performance table of individual NPS schemes as of May 31, 2021, LIC Pension Fund has provided a 65.16 per cent return in Scheme E Tier-1, and a solid 65.59 per cent return in Scheme E Tier-2 in the previous year. This fund’s 5-year CAGR in Tier-1 and Tier-2 schemes were 12.78 per cent and 12.76 per cent, respectively, over the last five years.

Kotak Pension Fund

In the previous six months, Kotak Pension Fund has delivered 20.79 per cent in Scheme E Tier-1 and 20.50 per cent in Scheme E Tier-2. In the previous fiscal year, Kotak Pension Fund produced 60.98 per cent in Scheme E Tier-1 and 60.11 per cent in Scheme E Tier-2. The fund has achieved an annualised return of 13.96 per cent in Tier-1 and 13.82 per cent in Tier-2 schemes during the previous five years.

ICICI Pension Fund

The ICICI Pension Fund provided a solid 21.44 per cent in Scheme E Tier-1, whereas the NPS Scheme delivered 21.34 per cent in Scheme E Tier-2 in the last 6 months till May 2021. In the year leading up to May 2021, the ICICI Pension Fund returned 65.08 per cent in Scheme E Tier-1, while the NPS Scheme returned 65.02 per cent in Scheme E Tier-2. The fund has produced an annualised return of 13.90 per cent in Tier-1 and 13.99 per cent in Tier-2 scheme during the previous five years.

NPS Scheme E Tier-1 Returns

Below are the latest returns of NPS Scheme E Tier-1 as on 18.06.2021:

NPS Scheme E Tier-2 Return

Here are the latest returns of NPS Scheme E Tier-11 as on 18.06.2021:

BNP Paribas Arbitrage Fund

This is a hybrid fund launched by BNP Paribas Mutual Fund. The fund’s expense ratio is 0.31 per cent, which is comparable to the expense ratios charged by most other Arbitrage funds. The fund currently has a -0.04 per cent stock allocation, a 24 per cent debt allocation, and a 76.4 per cent cash allocation. BNP Paribas Arbitrage Fund Direct has a 1-year growth rate of 4.29 per cent. It has returned an average of 6.30 per cent each year since its inception. The financial, metals, healthcare, energy, and technology sectors make up the majority of the fund’s equity holdings. BNP Paribas Overnight Fund – Direct Plan’s top five holdings include UPL Ltd., Tata Steel Ltd., Bharti Airtel Ltd., and Tata Power Co. Ltd.. The fund presently has Rs 757 crore as assets under management (AUM) and a NAV of Rs 13.14 as of June 18, 2021. One can start SIP by Rs 300 and this low-risk fund has an exit load of 0.25% if withdrawn within 1 year.

Nippon India Arbitrage Fund

The fund presently has Rs 11,792 crore in assets under management (AUM) and a NAV of 22.09 as of June 18, 2021. The expense ratio of the fund is 0.34 per cent. The fund now has a 4.8 per cent equity allocation, a 22.9 per cent debt allocation, and a 72.3 per cent cash allocation. The 1-year returns for the Nippon India Arbitrage Fund Direct-Growth are 4.25 per cent. It has had an average yearly return of 7.32 per cent since its inception. The financial, metals, services, healthcare, and energy sectors make up the bulk of the fund’s equity holdings. Reliance Liquidity Fund – Direct Plan, Reserve Bank of India, GOI, Tata Steel Ltd., and Reliance Liquidity Fund – Treasury Plan – Direct Plan are the fund’s top five holdings. One can start SIP by Rs 100 and this low-risk fund has an exit load of 0.25% if withdrawn within 1 year.

Edelweiss Arbitrage Fund

As of June 18, 2021, the fund has Rs 5,503 crore in assets under management (AUM) and a NAV of 15.94. The fund’s expense ratio is 0.34 per cent. The fund presently has an equity allocation of -0.4 per cent, a debt allocation of 32.2 per cent, and a cash allocation of 68.2 per cent. The 1-year returns for Edelweiss Arbitrage Fund Direct-Growth are 4.27 per cent. It has returned an average of 6.91 per cent per year since its inception. The financial, metals, services, energy, and healthcare sectors make up the majority of the fund’s equity holdings. Reserve Bank of India, Adani Ports and Special Economic Zone Ltd., Bharti Airtel Ltd., Vedanta Ltd., and Reliance Industries Ltd. are the fund’s top five holdings. SIP can be started in this fund with Rs 500 and an exit load will be charged 0.1% if redeemed within 1 year.

Best Arbitrage Mutual Fund Returns

Should you invest?

In the near term, arbitrage mutual funds may be quite turbulent. You can minimize this by investing for at least a year to ensure high returns. Because the returns would be categorised as Long Term Capital Gains, which are tax-free up to a ceiling of Rs. 1 lakh, you will receive higher tax-efficient returns than bank fixed deposits. Arbitrage Funds are not subject to the risks as traditional equity investments have. This is due to the fact that they purchase and sell stocks simultaneously. As a result, there is no possibility of stock price fluctuation impacting returns. As we always analyze the past returns for our readers for their better understanding and determination, Arbitrage Mutual Funds have generated an average 3-year SIP returns of 4.6% and 5-year SIP returns of 5.09%, according to Value Research.

If we compare these returns, then it is much higher than the returns of bank fixed deposits as of now. Finally, we suggest that these funds are appropriate for investors who want to gain exposure to the equity market but are concerned about the risk involved. When there is constant volatility in the market, arbitrage funds are a secure choice for risk-averse investors. Arbitrage funds are a good option if you want to generate moderate returns from an investment that has a reasonable mix of debt and equity in a turbulent market.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

The timeframe for filing income tax returns for the fiscal year 2021 has been extended by the Central Board of Direct Taxes (CBDT). According to the circular, the deadline for reporting Tax Deducted at Source (TDS) for the fourth quarter of the financial year 2020-21 has been revised until June 30. According to the Finance Act of 2021, non-filers of the Income Tax Return (ITR) would be subject to a higher Tax Deducted At Source (TDS) rate starting from next month.

Consequently, from July 1, if a taxpayer has not submitted TDS in the previous two years and the total TDS deducted each year surpasses Rs 50,000, the tax department would impose a higher penalty while submitting the ITR. A new section 206AB was implemented in the recent budget to impose a higher rate of TDS in circumstances where an income tax return was not submitted for the preceding two years and the TDS subtracted in each of those two years surpassed Rs 50,000.

You May Have To Pay Rs 10,000 As Penalty To The Income Tax Department In July, Here’s Why

TDS will be higher than double the rate indicated in the relevant section of the Income Tax Act, or double the rates in effect, or at a rate of 5%. Furthermore, if tax is to be withheld on income earned from salary under section 192, lottery under section 194B, winning horse race under the section 194BB, income earned from PF under the section 192A, trust income under section 194LBC and cash withdrawals under the section 194N, the regulations of section 206AB would not apply.

Know All About New TDS Rules Applicable From July 2021

Furthermore, a higher TDS rate does not apply to NRIs or individuals who do not have a permanent establishment in India. Meanwhile, the Finance Act of 2021 proposed major changes to TDS requirements, including acquisitions of goods and higher TDS rates for ITR non-filers. New TDS rules for purchases of goods, as well as increased TDS rates for non-filers of ITRs, will take effect on July 1, 2021. The tax deduction at source on the payment of a predefined amount or sum for the acquisition of goods is regulated under Section 194Q, which was recently introduced.

From July 1 You May Have To Pay Higher TDS On Your Bank Or Post Office Deposits, Here’s Why

Except in the event of a transaction specified under sub-section (1H) of Section 206C, the guidelines of Section 194P do not apply to a transaction on which tax is deductible under any provision of this Act and tax is collectable under the provisions of Section 206C. Taxpayers must also keep in mind that the timeframe for linking Aadhaar to PAN has been extended to June 30. PAN Card of the responsible taxpayers would be invalid if it is not linked within the stated deadline. Not only this, but they will also face penalties under the ITA for failing to quote the PAN, and double TDS of 20%.