Category: Personal Finance

Top Diversified Mutual Funds That Can Be Invested Into By Any Investor In 2021

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Investment

oi-Roshni Agarwal

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Diversified mutual funds as the name suggest enables an investor to diversify his or her financial portfolio and can be invested by all retail investor class with a slight risk appetite as the basket of assets makes the fund a less riskier category. This we are making a comparison strictly to other equity funds which are thematic or sectorial in nature and cannot be opted in by every investor category being high on risk.

Top Diversified Mutual Funds That Can Be Invested Into By Any Investor In 2021

Top Diversified Mutual Funds That Can Be Invested Into By Any Investor In 2021

What is a diversified mutual fund?

These mutual fund invests across sector, market capitalization, geographies and even across asset classes and thus developments in one area help prevent a major impact on the entire fund.

1. Parag Parikh Flexi Cap Fund-Growth:

This flexi cap fund from PPFAS Mutual fund category has an asset size of Rs.10,276 crore. NAV is 43.31 as of July 2, 2021. The benchmark of the fund is Nifty 500 TRI and the fund over the 1-year period has given a return of 57.94 percent. SIP as well as the lump sum investment can be started at minimum Rs. 1000.
Value Research online has accorded a 5-star rating to the fund. Top holdings of the fund are Bajaj Holdings, ITC, Microsoft Corporation, Facebook, Persistent Systems.

2. Mahindra Manulife Multicap Badhat Yojana-Regular Plan-Growth:

This is a 4-star Crisil rated multi cap fund. Asset under management of the fund is Rs. 532 crore. NAV of the fund as on July 2 is 18.069. Top holdings of the fund comprise ICICI Bank, SBI, Infosys, RIL, Sun Pharma, Atul, Dalmia Bharat and Birla Soft among others.

Benchmark for the fund is S&P BSE 500 TRI. Expense ratio of the fund is 0.77 percent. SIP in the fund can be started for Rs. 500. With a monthly SIP of Rs. 10,000, the investment is now valued at Rs. 5.91 lakh, providing an annualized yield of 35.07%.
Top holdings of the fund include ICICI Bank, Infosys, SBI, RIL, Sun Pharma, Larsen and Toubro, Atul Ltd.

3. SBI Large and Midcap fund:

Erstwhile, SBI Magnum Multiplier fund is a large and mid cap fund from the house of SBI Mutual fund. The AUM of the fund is equivalent to Rs. 4083 crore. Risk-o-meter defines the fund to be moderately high on risk.

NAV of the fund as on July 2 is 333.89. SIP in the scheme can be started for as low as Rs. 500.

Value Research Rating has given the fund a 3-star rating.

Top holdings of the fund include HDFC Bank, Page Industries, ICICI Bank, SBI, Relaxo Footwear etc.

In 3 years time, the SIP of Rs. 10000 per month is now valued at Rs. 5.41 lakh, providing gains of Rs.1.81 lakh, i.e.an annualized yield of 28.43%.

Note mutual funds investment are subject to risk. Investors need to do their own research to select the suitable investment considering their risk profile, investment goal and investment horiozon. The story is here only for informational purpose. Greynium Information and its employees shall not be liable for any loss incurred for any investment decision taken considering the above listicle.

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7 Best Recurring Deposits With Interest Rates Up To 8%

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North East Small Finance Bank Recurring Deposit

Recurring deposits are available from North East Small Finance Bank, with periods ranging from three months to ten years. For the general public, interest rates on RD vary from 4.25 per cent to 7.50 per cent, while rates for the elderly range from 4.75 per cent to 8.00 per cent. These rates are in effect from 1st September 2020.

Tenure Regular FD Rates Senior Citizen FD Rates
3 Months 4.25 4.75
6 Months 4.5 5
9 Months 5.5 6
1 Year 5.5 6
2 Year 7.5 8
3 Year 7 7.5
4 Year 7 7.5
5 Years 6.5 7
More than 5 years up to 10 years 6.5 7
Source: North East Small Finance Bank

Utkarsh Small Finance Bank Recurring Deposit

Utkarsh Small Finance Bank Recurring Deposit

Utkarsh Small Finance Bank provides recurring deposits with a tenure ranging from 6 months to 10 years. Currently, this bank is providing the highest interest rates among the small finance banks. For the general public interest rates on RD ranges from 6.50% to 7.00%, whereas for senior citizens the interest rates range from 7.00% t0 7.50%. These rates are in force from July 1, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
Up to 6 months 6.50% 7.00%
9 months 6.50% 7.00%
12 months 6.75% 7.25%
15 months 6.75% 7.25%
18 months 6.75% 7.25%
21 months 6.75% 7.25%
Above 21 Months to less than 24 Months 6.75% 7.25%
24 Months to 36 months 7.00% 7.50%
Above 3 Years up to 5 Years 6.75% 7.25%
Above 5 years up to 10 years 6.75% 7.25%
Source: Utkarsh Small Finance Bank

Jana Small Finance Bank Recurring Deposit

Jana Small Finance Bank Recurring Deposit

Jana Small Finance Bank offers recurring deposits with terms ranging from one month to one hundred and twenty months. Interest rates on RD range from 4.00 per cent to 6.75 per cent for the general public, whereas rates for elderly persons range from 4.50 per cent to 7.25 per cent. These rates are in effect from June 10, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
> 1 Month – 6 Months 4.00% 4.50%
> 6 Months – 12 Months 5.50% 6.00%
> 12 Months – 36 Months 6.50% 7.00%
> 36 Months – 60 Months 6.75% 7.25%
> 60 Months – 120 Months 6.00% 6.50%
Source: Jana Small Finance Bank

Fincare Small Finance Bank Recurring Deposit

Fincare Small Finance Bank Recurring Deposit

Fincare Small Finance Bank provides recurring deposits with periods ranging from seven days to eighty-four months. The interest rate on RD varies from 3.00 per cent and 6.50 per cent. With effect from 17 May 2021, these rates are in force.

Tenure Interest Rates In %
7 days to 45 days 3.00%
46 days to 90 days 3.25%
91 days to 180 days 3.50%
181 days to 364 days 5.00%
12 months to 15 months 5.60%
15 months 1 day to 18 months 5.60%
18 months 1 day to 21 months 6.00%
21 months 1 day to 24 months 6.00%
24 months 1 day to 30 months 6.25%
30 months 1 day to 36 months 6.25%
36 months 1 day to 42 months 6.50%
42 months to 48 months 6.25%
48 months 1 day to 59 months 6.25%
59 months 1 day to 66 months 6.00%
66 months 1 day to 84 months 5.50%
Source: Fincare Small Finance Bank

Suryoday Small Finance Bank Recurring Deposit

Suryoday Small Finance Bank Recurring Deposit

Suryoday Small Finance Bank offers recurring deposits that last anywhere from six months to ten years. For both the general public and elderly individuals, the interest rate on RD ranges between 4.75 per cent and 6.75 per cent. These rates are in force from June 21, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
6 months 4.75% 4.75%
9 months 5.25% 5.25%
12 months 6.50% 6.75%
15 months 6.50% 6.75%
18 months 6.50% 6.75%
21 months 6.50% 6.50%
24 months 6.50% 6.50%
27 months 6.25% 6.50%
30 months 6.25% 6.50%
33 months 6.25% 6.50%
36 months 6.25% 6.50%
Above 3 Years to less than 5 Years 6.75% 6.75%
5 Years 6.25% 6.50%
Above 5 Years to 10 Years 6.00% 6.00%
Source: Suryoday Small Finance Bank

Equitas Small Finance Bank Recurring Deposit

Equitas Small Finance Bank Recurring Deposit

Equitas Small Finance Bank provides recurring deposits with periods ranging from 12 to 120 months. For the general public, interest rates on RD vary from 6.35 per cent to 6.50 per cent, while rates for senior citizens range from 6.85 per cent to 7 per cent. These rates are in force from June 1, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
12 Months 6.35% 6.85%
15 Months 6.35% 6.85%
18 Months 6.35% 6.85%
21 Months 6.25% 6.75%
24 Months 6.25% 6.75%
30 Months 6.35% 6.85%
36 Months 6.35% 6.85%
48 Months 6.25% 6.75%
60 Months 6.25% 6.75%
90 Months 6.50% 7.00%
120 Months 6.50% 7.00%
Source: Equitas Small Finance Bank

Ujjivan Small Finance Bank Recurring Deposit

Ujjivan Small Finance Bank Recurring Deposit

Ujjivan Finance Bank offers recurring deposits with terms ranging from six to one hundred and twenty months. Interest rates on RD range from 5.20 per cent to 6.75 per cent for the general public, and from 5.7 per cent to 7.25 per cent for elderly persons. These rates are in force from 5 March 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
6 months to 9 months 5.20% 5.70%
12months to 24 months 6.50% 7.00%
27 months to 36 months 6.75% 7.25%
39 months to 60 months 6.75% 7.25%
63 months to 120 months 5.80% 6.30%
Source: Ujjivan Small Finance Bank



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Tax Query: Will mutual funds issue Form 16A for TDS on dividend?

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I have invested around ₹4 lakh in some mutual funds, all regular plans with dividend options. They have deducted tax on the dividend amounts paid during this financial year 2020-2021. My question is whether the funds will issue Form 16A and whether the details of taxes deducted and remitted to the Government will be reflected in Form 26A of the Tax Department. Can I claim refund of the tax so deducted on filing my return of income?

J R RavindranathYes, the mutual fund company is required to issue Form 16A in respect of tax withheld on dividends. Further, the taxes deducted will be reflected in your Form 26AS. While you can offset the taxes deducted at source against your tax liability, you are required to offer the gross dividend income earned during the FY to tax under the head “Income from other sources”. Effective April 1, 2020, the dividend income is taxable in the hands of investors at the applicable slab rates. Further, tax would be deducted at 10 per cent as laid down in Section 194K of the Income-tax Act, 1961. The said rate of 10 per cent has been reduced to 7.5 per cent for all the dividend payments made from May 14, 2020 till March 31, 2021 due to Covid-19. Should your tax liability be lower than the TDS, refund can be claimed while filing your India tax return for the FY 2020-21.

The writer is Partner, Deloitte India

Send your queries to taxtalk@thehindu.co.in

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Planning for son’s education, own retirement

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Nishant is 36 and works with an IT company in Pune. He has a 5-year-old son. Until now, he has focussed his energies on repaying the home loan, which he repaid completely 2 months back. Thus, he does not have many investments. In addition to this house, he has Rs ₹ 5 lakh in fixed deposits and ₹13 lakh in employees’ provident fund.

His net take-home monthly salary is ₹80,000. He can invest about ₹35,000 per month. Besides, his monthly contribution to EPF account, including employer contribution, is ₹11,500.

He wants to invest for his son’s higher education, for which he thinks he will need about ₹20 lakh (present cost) after 12 years. Besides, he wants to save for this retirement. He has not bought any insurance plan yet.

Buying insurance

Insurance is the first pillar of financial planning. In his case, getting insurance portfolio right is even more critical since he is the sole earning member in the family. There are three broad types of insurance plans that every earning member must buy: Life, Health and Accidental Disability Insurance.

While there are many ways to calculate life insurance cover requirement, a simple thumb rule is to buy a cover for 10-15 times the annual income. With his level of income, he can go for a life cover of ₹ 1.25-1.5 crore.

A term insurance plan is the best way to purchase a life insurance. This will cost him about ₹18,000-20,000 per annum. He can choose to pay annual premium in monthly installments too.

He has a health cover of ₹3 lakh from his employer. The coverage is clearly not sufficient for a family of three. He must buy a family floater health insurance plan of ₹10 lakh. That will cost him about ₹15,000 per annum.

He can buy accidental disability cover as a rider with a term plan or as a standalone plan. A rider with the term plan is cheaper because the scope of coverage is limited to total and permanent disability.

A standalone plan is more expensive, but it covers both partial and total permanent disability, temporary disability, and accidental death.

These insurance plans (life, health and accidental cover) will cost about ₹5,000 per month or Rs 60,000 per annum.

He has a fixed deposit of ₹5 lakh that can be considered towards medical and emergency fund.

Son’s education

For son’s education, he needs ₹20 lakh (present cost) in 12 years. At the inflation rate of 6 per cent per annum, the target nominal corpus will be ₹40 lakh in 12 years.

Assuming a return of 10 per cent on the portfolio over 12 years, he needs to invest ₹15,000 per month.

He can put this money into a hybrid fund or a multicap fund by way of SIP. He must gradually shift this money to debt as he moves closer to the goal.

For his retirement, he mentions that only 2/3rd of his current expenses will continue into retirement.

His current expense is ₹45,000 per month but that includes conveyance and school and tuition fee for his son.

His expected expenses during retirement will be ~ ₹30,000 per month (cost). Assuming a post retirement life of 30 years, inflation of 6 per cent per annum and that he can earn inflation matching returns during retirement, he needs to accumulate ₹4.3 crore in 24 years.

His current EPF corpus will grow to ₹80 lakh in 24 years . At assumed pre-retirement return of 10 per cent per annum, he needs to invest ₹32,000 per month.

He is already putting ₹11,500 per month by way of EPF. After accounting for regular expenses, insurance payments and investment for son’s education, he can invest an additional ₹15,000 per month (35,000 – 5,000 – 15,000).

His retirement portfolio is already debt heavy. He can split this amount between a largecap fund and a midcap fund, with heavier allocation to the former. He is investing less than he should. He must invest more when his cashflows permit. This should not be a problem since his best earning years are ahead of him.

He must understand all the goal calculations above are based on heavy assumptions about inflation and expected returns.

He must keep revisiting these assumptions and portfolio growth and make adjustments accordingly.

The writer is a SEBI-registered investment advisor and founder of personal financeplan.in

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How to claim from multiple health plans

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Since the outbreak of pandemic last year, many individuals have considered purchasing a health policy for self as well as for family. While having one health policy with sufficient cover based on individual or family needs is adequate, many end up having multiple health policies. Usually, as policyholder you will have a group cover from your employer and an individual health cover (as the group cover offered may not be sufficient) or in some cases, it can be two separate policies from different insurers. At the time of claim, if you are among those individuals with two or more health policies, here is how you should go about the claim.

One by one

Almost all insurers have wide hospitals under their network to make cashless facility hassle free for the policyholders. Barring a few scenarios, including certain treatment or diseases not covered by the policy and treatment taken in a non-network hospital, your health policy should be able to meet the hospitalisation expenses for you (cashless). But irrespective of the number of policies, you can make one claim at a time only, be it cashless or reimbursement. This is because insurers require policyholders to submit the original bills while filing a claim.

Suppose you have two health policies and you want to have cashless under both, then you must indicate to the hospital or the TPA about this. Many insurance experts suggest that it is better to exhaust the sum insured of one policy before claiming from another. Priya Deshmukh Gilbile, Chief Operating Officer, ManipalCigna Health Insurance, says “In case of a cashless claim, with the same TPA, the co-ordination for two or more policies become easier. Even if the TPAs are different for the policies held by policyholder, cashless can be done. The approval letter from the first insurer has to be submitted to the second insurer for the remaining claim amount”

However, there could be practical difficulties when it comes to cashless claims from multiple insurers. According to Indraneel Chetterjee, Co-Founder, RenewBuy “While cashless facility from multiple policies is doable by TPA/insurer, there could be a little struggle in terms of co-ordination between the TPA, insurer and the hospital due to incremental operational work.”

Hence you can also plan your claim (medical expenses) part cashless and part reimbursement. Suppose you have two policies of ₹5 lakh each and your expenses work out to ₹6 lakh. In this scenario, up to ₹5 lakh, the hospital/TPA will co-ordinate with the insurer. For the balance amount of ₹1 lakh, you as policyholder need to submit the bills given by the hospital along with discharge summary (which will mention the claim covered) to the other insurer for reimbursement. It could help you have a smooth claim procedure and avoid unnecessary delay at the time of discharge or while starting a treatment.

Keep in mind

While having multiple health policies has its advantages, there are a few points to keep in mind, when making a claim, in order to reap the maximum benefits.

One, you should go for the policy which has minimum or no co-payment (where policyholder agrees to pay a certain percentage of medical expenses and the balance paid by the insurer) or sub-limits (refers to the limits for a certain medical treatments or diseases in a policy) clauses. This is so that the difference between medical bills and claim amount (settled by insurer) is low. If you have to choose between a group cover and an individual health cover, then go for group health insurance first. This is because, the benefits of no-claim bonus remains intact.

Two, it is important to disclose to each insurer about the multiple policies you hold, if specifically asked in the proposal form at the time of purchase of health policy. The non-disclosure of the other policies may affect at the time of claim as it is a breach of (insurance) contract and insurer have the right to reject or not settle your claim. However, not many insurers ask for this disclosure these days.

Lastly, while there is no cap on the number of health policies that you can buy, the premium amount you shell out for every renewal could be high for all the policies. Amit Chhabra, Head Health Insurance, Policybazaar.com says “For policyholders it is better to have a base policy and then have top-up plans from the same insurer, as it will work out to be affordable and for easier claim, instead of having separate policies from different insurer. ”

Exhaust sum insured of one policy before claiming from another

Divide claim into cashless, reimbursement

Have base policy and top-up plan from the same insurer

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Where to park your equity profits

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Of late, a chorus of market voices have piped up to say that global stock prices are in bubble territory. The RBI recently described the Indian stock market as a bubble. Bubble or no bubble, there can be no disputing that after the breathless rally of the last five years, Indian stock valuations are very expensive. If you’re sitting on hefty equity gains or high equity allocations, this makes it prudent to book some profits on your equity portfolio. But a practical problem that stops many folks from booking equity profits is not knowing where to invest those gains.

We suggest dividing your gains into three buckets and recommend suitable investment products for each bucket.

Capital protection bucket

If the stock market rally has made a significant difference to your overall wealth, you may want to convert some of those paper gains into real money, to meet your short-term or long-term financial goals. In this case, you should primarily look for safety of your capital in re-investing your equity gains.

Market-based bond investments today carry both credit and duration risk (the risk of default because of Covid and the risk of capital loss from rising rates). Indian government-backed sovereign instruments offer protection from both.

If you are looking to set aside equity gains towards long-term goals such as retirement that are at least seven years away, GOI’s Floating Rate Savings Bonds sold by RBI on tap via leading banks, offer the rare combination of good returns with capital safety. The bonds’ floating interest is pegged at a 35-basis point premium to the prevailing rate on the National Savings Certificates. For the April-June quarter, this interest was 7.15 per cent.

The floating rate makes this a good bet in a rising inflation/rate scenario. The only disadvantage of the bonds is that it offers no compounding and only pays out interest. The bonds also carry a 7- year lock-in and are not tradeable. A second sovereign-backed option is the five-year National Savings Certificate (NSC) from India Post. While rates are reset quarterly, you get to lock into a specific rate for five years. NSC currently offers lower rates of 6.8 per cent than the GOI savings bonds. But it allows accumulation of interest and has a shorter lock-in of 5 years.

For goals that are 5-7 years away, passive debt ETFs that invest in government securities are good options. IDFC Gilt 2027 Index Fund, IDFC Index 2028 Index Fund and Nippon ETF 5-year Gilt ETF are such funds that can get you to a fairly predictable return by those target dates.

If you need the money within the next 3-5 years, you can consider gilt mutual funds with a short maturity (there aren’t too many of them but Axis Gilt is one) or PSU & Banking funds with short maturity (Axis, UTI and IDFC have less than 2-year average maturity). These may not be as safe as sovereign instruments, but do offer liquidity with a fair degree of capital protection.

Diversification bucket

Some folks may book profits in their equity holdings not because they need the money to meet any goals, but simply to de-risk their portfolios. If you work to a pre-decided asset allocation pattern (as all investors should) and have seen your equity allocations overshoot your comfort level, you should invest your equity gains in long-term options that help you diversify from equity risks.

Two options to consider are Sovereign Gold Bonds and REITs. Gold is one asset class that has lagged during the concerted rally in stocks, bonds and commodities recently. It also tends to deliver gains when stock prices tank. Sovereign gold bonds, bought either from primary issuances by RBI or in the secondary market, therefore present a good option to park some of your equity gains. Gold ETFs can be an alternative.

Real estate too has delivered rather muted performance in India in the last few years and therefore makes for a good diversifier. REITs or Real Estate Investment Trusts are a good proxy for commercial real estate investments, through a regulated, divisible and liquid vehicle. Listed REITs such as Embassy Office Parks and Mindspace own a portfolio of office complexes from which they earn rents from high-quality clients.

Liquidity bucket

You may have every intention of getting back into equity markets when a big correction materialises and valuations cool down. Such corrections and also the reversals from them, can be swift and sharp. Re-deploying your money into equities after such corrections would be impossible if you lock all your equity gains into instruments such as GoI bonds, NSC or even SGBs.

To keep powder dry for such a re-entry, apart from Gilt and PSU/Banking debt funds mentioned above, Liquid Bees or other Liquid ETFs (ETF which invest only in safe money market instruments) are a good option. These funds carry a constant NAV while declaring their returns as daily dividends, which are credited as fresh units in your demat account.

Fixed deposits with leading banks, which can be instantly liquidated online, are just as good for this purpose. These aren’t high-return or tax-efficient options but keep your money safe for quick re-deployment.

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4 Best High-Rated Debt Mutual Funds Better Than PPF

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HDFC Credit Risk Debt Fund Direct Growth

HDFC Credit Risk Debt Fund Direct-Growth is a mutual fund scheme issued by HDFC Mutual Fund. The fund’s expense ratio is 1.05 per cent, which is higher than the expense ratio charged by most other Credit Risk funds. The 1-year returns for HDFC Credit Risk Debt Fund Direct-Growth are 10.85 per cent. The fund presently has Rs 7,631 crore funds under management or asset under management (AUM) and a NAV of Rs 19.71 as of July 2, 2021. Tata Motors Ltd., Punjab National Bank, IndInfravit Trust, Bharti Hexacom Ltd., and Pipeline Infrastructure (India) Pvt. Ltd. are among the fund’s top holdings. One can start SIP in this fund with a minimum amount of Rs 500. If you redeem units worth more than 15% of your contribution within 12 months, you’ll be charged 1%, and if you redeem after 12 months but within 18 months, you’ll be charged 0.50 per cent as an exit load.

ICICI Prudential Credit Risk Fund Direct Plan Growth

ICICI Prudential Credit Risk Fund Direct Plan Growth

The recent one-year growth returns for the ICICI Prudential Credit Risk Fund Direct Plan were 9.35 per cent. According to Value Research, it has provided an average yearly return of 9.48 per cent since its inception. The fund presently has Rs 7,443 crore as an asset under management (AUM) and a NAV of Rs 25.92 as of July 2, 2021. The fund’s expense ratio is 0.89 per cent, which is identical to the expense ratio charged by other Credit Risk funds. GOI, Adarsh Advisory Services Pvt. Ltd., Prestige Estates Projects Ltd., Indusind Bank Ltd., and Aditya Birla Fashion and Retail Ltd. are among the fund’s top holdings. Minimum SIP can be started with a minimum amount of Rs 500. If more than 10% of units are redeemed or transferred within one year, an exit load of 1% is levied.

SBI Magnum Medium Duration Fund Direct Growth

SBI Magnum Medium Duration Fund Direct Growth

This Medium Duration Fund is launched by SBI Mutual Fund. SBI Magnum Medium Duration Fund Direct has a one-year growth rate of 7.12%. According to Value Research, it has provided an average yearly return of 9.99 per cent since its debut. The fund has a 0.68 per cent cost ratio, which is quite higher than other Medium Duration funds in the category. Reserve Bank of India, State Bank of India, Mahindra Rural Housing Finance Ltd., Tata Realty and Infrastructure Ltd., and Indian Bank are among the fund’s top holdings. The fund presently has Rs 9,122 crore as an asset under management (AUM) and a NAV of Rs 42.25 as of July 2, 2021. An exit load of 1.50 per cent will be imposed on units worth more than 8% of the investment if they are redeemed within 12 months. With a minimum investment of Rs 500, one can commence a monthly SIP.

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

ICICI Prudential All Seasons Bond Fund Direct Plan-Growth is a Dynamic Bond mutual fund scheme launched by ICICI Prudential Mutual Fund. ICICI Prudential All Seasons Bond Fund Direct Plan-Growth is a medium-sized bond fund with Rs 5,793 crores as assets under management (AUM) and the current NAV is Rs 29.77 as of July 2, 2021. The growth returns of the ICICI Prudential All Seasons Bond Fund Direct Plan during the last year have been 7.10 per cent. According to Value Research, it has generated an average yearly return of 10.72 per cent since its inception. Uttar Pradesh State, GOI, Embassy Office Parks REIT, National Bank For Agriculture & Rural Development, and Godrej Industries Ltd. are among the fund’s top 5 holdings. If redeemed within one month of deposit, there is a 0.25 per cent exit load charged by the fund.

Best Debt Mutual Funds

Best Debt Mutual Funds

Here’re the top-performing debt mutual funds rated 5 star by Value Research.

Debt Funds 1 Year Returns 3 Year Returns 5 Year Returns Rating by Value Research
HDFC Credit Risk Debt Fund Direct Growth 10.85% 9.60% 9.01% 5 star
ICICI Prudential Credit Risk Fund Direct Plan Growth 9.35% 9.51% 9.22% 5 star
SBI Magnum Medium Duration Fund Direct Growth 7.12% 10.17% 9.81% 5 star
ICICI Prudential All Seasons Bond Fund Direct Plan Growth 7.10% 10.10% 9.66% 5 star
Source: Value Research

Should you invest?

Should you invest?

If we look at the historical returns of debt mutual funds, they have given pretty decent returns and have outperformed not only PPF but also other debt instruments like tax-saving fixed deposits. Undoubtedly, debt mutual funds are preferred as the secure investment bet when compared to equity mutual funds. But the returns are market-linked and thus known as a volatile instrument that investors must need to consider. As a result, interest rate risk and credit risk is the key consideration when investing in top-performing debt mutual funds. Conservative investors who do not want to risk their investment by investing in equity funds can choose the debt mutual funds mentioned above as a substitute for PPF, only to gain higher returns. For risk-averse investors, both debt mutual funds and PPF are excellent.

PPF strives to provide secure returns, in the form of interest income and annually compounding of the principal amount, whilst debt mutual funds can optimise your investment returns amid the current low-interest-rate regime. Diversifying your portfolio with debt mutual funds may be a good option if you want to achieve better market-linked returns in a short period of time, whereas PPF can be a solid pick for a long-term investment objective.

Disclaimer

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



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Income Tax Return: Taxpayers Can Now File A Quarter-Wise Breakup of Dividend Income

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Taxes

oi-Vipul Das

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Many modifications to filing regulations for income tax return have been implemented for the existing assessment year. However, one adjustment is the way dividend income is reported. After April 1, 2020, investors will be required to pay tax on dividend income generated. If the total amount of dividends issued to resident shareholders in a financial year surpasses Rs.5,000, domestic firms are required to deduct tax at source (TDS) at a rate of 10%. As a consequence, the current regime has declared a company’s dividends are taxable for the investors.

ITR Filing: Taxpayers Can Now File A Quarter-Wise Breakup of Dividend Income

Dividend income up to Rs 10 lakh annually was not taxable in the hands of taxpayers before the financial year FY21 since businesses were mandated to pay dividend distribution tax (DDT) in dividend payments. Dividend income was formerly reported under the category ‘Exempted Income,’ but as it is a taxable income from FY21, it will now be reported under the heading ‘Income from other sources,’ as per section 56(2)(i), according to the tax department. According to tax experts, taxpayers can now give a quarter-by-quarter breakdown of dividend income received in a financial year for the purpose of calculating interest income for delinquency in settlement of the advance tax due.

For the periods 1st April 2020 to 15th June 2020, 16th June 2020 to 15th September 2020, 16th September 2020 to 15th December 2020, 16th December 2020 to 15th March 2021, and 16th March 2021 to 31st March 2021, the breakdown can be provided. For calculating the interest due for failure to pay an advance tax due, which is levied under section 234C, these quarterly dividend breakups could be a relief. If the company deducted tax when issuing dividends, you can claim TDS credit on your income tax return.

However, the income tax department has also mandated the taxpayers to pay advance tax in the quarter in which they have received the dividend income. If your ITR has pre-filled data, it is a smart idea to double-check the details before finalizing your income tax return. However, taxpayers should not also forget that they must commence filing their income tax returns (ITR) for the fiscal year 2020-21 as early as July 1. (FY21).



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The New Giant in Crypto Investments, BFSI News, ET BFSI

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To launch Europe‘s largest and award winning cryptocurrency trading platform in India, Coinsbit India, had announced India’s biggest ever airdrop on 9th April 2021. The airdrop has been a massive success with 665,550 KYC verified users receiving CIN worth $200 each in the first round. The campaign is still live with the second and third round starting on 20th June and 10th July respectively. Coinsbit India to launch INR Trading Pairs Soon.

Along with the airdrop, Coinsbit India has also launched its own 5-level referral program along with staking opportunities. Staking cryptocurrency is one of the most appreciated ways to invest in the new age. It is a less resource-intensive alternative to mining which involves holding funds in a wallet to support the security and operations of a blockchain network. So basically, staking is the act of locking cryptocurrencies to receive rewards. Coinsbit India Staking lets you earn rewards in a very simple way – all you have to do is hold and ‘stake’ coins on the exchange to enjoy 3% monthly rewards.

In order to avoid token price crash upon CIN token listing, a vesting schedule will be implemented and there will be a gradual monthly release in the CIN tokens earned from airdrop and referrals. This will help in preserving the token value and prevent price drop. Benefits from holding CIN tokens will start as soon as the airdrop ends on 31st July. Users will have an opportunity to buy CIN tokens and start earning on staking pools at a 3% monthly rate. Holders can avail a 25% discount on trading fees by paying in CIN. Along with interest incentive and discount purchases, in future, users will also be able access the Coinsbit Vault, Marketplace and Blockchain Games, apart from other benefits.

Staking is an excellent way to earn rewards when the market is volatile or showing ‘bear-ish’ sentiment or just to earn extra rewards and do more with cryptocurrencies. Crypto coins staking has several advantages that have helped it gain popularity. Apart from being a passive income for users, it doesn’t require much specialized skills. A small investment by purchasing cryptocurrency is enough to get you started, hence making the threshold for entering quite low.

What’s next for Coinsbit India?

According to Chainalysis, investments in crypto grew from about $200 million to nearly $40 billion in India alone, in just one year. With the constantly growing crypto market in India, Coinsbit India has massive plans for expansions. They will soon go live with crypto trading while engaging more blockchain developers for both building CIN Smart Chain Ecosystem and to develop NFT, DEXs and DeFi apps. CEO of Coinsbit India, Ravneet Kaur, talked about revolutionizing the Indian cryptocurrency and blockchain space. She said, “We believe that there can be a new economy based on decentralization and trust. If anything, these uncertain times have taught us, it is that we need to be prepared to confront them. To avoid what is happening in Lebanon right now, Africa and Latin American Economies. we need to explore alternative methods of investment. Cryptocurrency can be a hedge against such interferences where people have no control and their currency suddenly devalues. Recently, El Salvador legalized bitcoin to attract investments and crypto talent while boosting their economy. India needs to keep up with the constantly changing times and needs cryptocurrency to revitalize its economy.”

Akshit Khanna, CMO Coinsbit India, gave Business Wire India a little sneak peek into what’s next. “Cryptocurrency is still a relatively new concept for the masses which has shown great potential. We want to help educate people and build an informed crypto community in India. Very soon, we will be running campaigns to specifically explain buying and the storage process of cryptos and much more at Coinsbit Academy.



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RBI: Unclaimed Amount In Term Deposits Shall Attract Interest Rate Even After Maturity

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oi-Vipul Das

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Among the range of debt instruments or risk-free investments, fixed deposits are considered the best to bet. Fixed Deposits are the secure investments in which a specific amount of money is deposited for a fixed period of time. Fixed Deposits come in a variety of maturities. It might last anywhere from seven days to ten years. As a result, fixed deposits can be a safe investment for short, medium, and long-term needs. Till the end of the maturity period, the accumulated corpus can not be withdrawn. However, do you know that if a Term Deposit matures with no proceeds, the amount left unclaimed with the bank would earn the same rate of interest as a savings account? Let’s know-how.

RBI: Unclaimed Amount In Term Deposits Shall Attract Interest After Maturity

The Reserve Bank of India (RBI) said on Friday that depositors can now receive interest if their Term Deposit (TD) matures and the amount left unclaimed. The RBI recently claimed in a circular that “On a review…it has been decided that if a term deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower.”

Deposits in all commercial banks, small finance banks, local banks, and cooperative banks are subject to the new rules. When a subscriber does not make any transactions in the account for ten years or longer, the deposit is classified as unclaimed by the RBI. Unclaimed bank deposits comprise deposits in current and savings accounts, fixed deposits, and other bank deposits such as recurring deposits, annuity, cumulative, reinvestment deposits and so on. Every month, unclaimed deposits are transferred to the Reserve Bank of India’s Depositor Education and Awareness (DEA) Fund. A body established by the RBI allocates the funds transferred to the fund by various banks in government securities and thus pays interest on deposits by the income generated under the fund.

Story first published: Saturday, July 3, 2021, 12:41 [IST]



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