Category: Personal Finance

3 rules to remember as you battle a cash crunch

Personal Finance

[ad_1]

Read More/Less


A recent survey by BusinessLine Portfolio (https://tinyurl.com/blsurvey21) revealed that, with Covid decimating personal savings, people resorted to all possible means to bridge the financial shortfall — taking loans, surrendering insurance policies, dipping into PF money or breaking investment in stocks, mutual funds and deposits. Of course, doing whatever it takes to tide over a crisis makes sense; but there can be a method to this, so that the long-term impact on your finances is minimal.

Here are three principles you can follow on a rainy day.

#1 Use only your satellite portfolio

A striking fact noticed is the lack of delineation between goal-based savings and other savings. For instance, many invest in mutual fund SIPs without any particular time frame or goal in mind. When they have any requirement — be it an emergency, a lifestyle need or a home loan down payment — they sell out or at least book partial profits.

Similarly, many don’t use options such as PPF for long-term savings. They either invest very little (₹500 a year is the minimum investment for PPF) or ignore it totally and instead sign up for traditional insurance plans with high premium outgo, to exhaust the 80C limit. Yes, selling mutual fund investments or surrendering insurance policies can help you tide over a short-term crisis; But, what next? The withdrawal to meet a short-term crunch could compromise the amount needed for more important needs such your child’s higher education, which may be coming up soon.

Similarly, mixing up insurance with investment by signing up for traditional plans, and also surrendering it midway, deceives you in three ways. It robs you of the funds you could have invested in risk-free, tax-exempt instruments such as the PPF for long-term goals. Secondly, it leaves you with lower or no life insurance cover. Three, it raises the premium outgo if you want to opt for a new policy now, as your higher age as well as possibilities of other new risks may influence the underwriting. Hence, it is always essential to have a core portfolio of savings in equities and fixed income (in a proportion commensurate with your risk appetite) for important lifetime goals, such as retirement, child’s higher education or a home buy — and not touch it for any other need.

To meet intermediary needs for emergencies or to make up for pay cuts or temporary job loss, you can set up a satellite portfolio. This must comprise easy-to-access instruments such as fixed, flexi, recurring deposits and other bonds as well as overnight and liquid mutual funds. A portion of your mutual fund and direct stock investments, outside of your goal-based savings, can be earmarked for satellite needs too. Life insurance should be separated from all this.

#2 Leave the PF alone

An extension of the first rule is to not touch your PF corpus just to tide over temporary cash flow troubles. Data available publicly shows that from April 1, 2020, until May 12, 2021, about 72 lakh Employee Provident Fund (EPF) subscribers have availed the special Covid advance announced last year, withdrawing a total of ₹18,500 crore.

Yes, the withdrawal process is easy and entirely doable online in a matter of a few minutes if your UAN is linked with your Aadhaar, bank account details and mobile number; And, the claims are settled in three days. But this should not tempt you.

For many of us, EPF is not the only savings that we may have. Hence, touching your retirement kitty is a strict no-no. For one, there are very few options for long-term savings that provide tax benefits, are risk-free and also give assured returns.The Covid advance from the EPF is non-refundable, implying that your kitty is dented to the extent you withdraw.

Similarly, don’t dip into your PPF account too even though it allows partial withdrawal — you are allowed to pull out certain sums after expiry of five years from the end of the year in which the account was opened, without end-use restrictions.

#3 Say ‘No’ to loans

Our survey showed that about 11.5 per cent of the 408 respondents resorted to borrowings to meet their expenses since the Covid outbreak, be it to pay for hospitalisation or to make up for a job loss or a pay cut. However, when there are pay cuts and one-time payments such as bonuses/incentives have become hard to come by, the last thing you should do is take on more liabilities. Interest rates for personal loans run well into the teens for many banks. And one more EMI when you may already be having a home/car/education loan, will crunch your monthly disposable income. This will end up curtailing your savings for the future as you may ultimately skip RDs or SIPs to feed the EMI.

About 19 per cent of the survey respondents used credit cards to meet heightened expenses due to the crisis. Some have even signed up for new cards and/or increased limits, thanks to its handiness. However, remember that your credit score could be impacted if you sign up for multiple cards and also use the limits to the maximum. This will have a bearing on your eligibility for future loans as well as the interest rate at which you can borrow. More immediately, an inability to repay credit card dues on time always carries the risk of snowballing interest payments and, worse, landing you in a debt trap. .

Rather than borrow against FDs at a rate higher than the return you get, pre-close the FD. Don’t resort to loans against securities as will get only 50-60 per cent of the value as loan and will also have to make up for the shortfall if there is a sharp fall in value.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

Recovered from Covid? It may be difficult to get insurance cover now

Personal Finance

[ad_1]

Read More/Less


As India grapples with the second wave of Covid-19, many have understood the importance of insurance, both life and health, and are actively signing up for new policies in recent times. However, if you are among those who were unfortunately infected with Covid , and have subsequently recovered, you may find it difficult to sign up for a new policy, particularly a term life policy. This is because insurers are cautious and have tightened underwriting norms, as the after-effects of Covid remain to be seen.

Cooling-off period

In life insurance, while policyholders who had not been infected with Covid and are otherwise found to meet all conditions for coverage are accepted in the usual manner, those who had recovered from the same are evaluated based on factors such as nature of infection, treatment offered and current status.Accordingly, insurers make room for a recovery period. Life insurers including SBI Life and Kotak Life, for instance, have a cooling-off period of 30 to 90 days post which the policy is issued.

According to Sunil Sharma, Appointed Actuary and Chief Risk Officer (CRO), Kotak Mahindra Life, “If the life to be assured has a Covid history, the insurance cover can usually be considered three months post complete recovery, subject to underwriting. Additionally, specific medical tests may be requested on a case-by-case basis based on the information provided, to evaluate the risk”.

At present, post the said recovery period, policyholders are accepted without any need for restrictive clause or increase in premium. Sajja Praveen Chowdary, Head, Term Insurance, policybazaar.com, says, “There is no differential premium as of now between an individual who has recovered from Covid and a healthy person.”

Further, according to industry sources, in the future, if it is proven that there is a lasting health impact due to Covid, then the underwriter may charge additional premium for those who have recovered. This is similar to differential premium charged for a smoker and a non-smoker.

Additional scrutiny

In life insurance, post recovery from Covid infection, policyholders may be asked to submit a Covid negative report in addition to other medical records. Similarly, policyholders may be subject to additional scrutiny if one of the family members tested positive and later recovered or passed away (if they had been living under the same roof).

Also, given that life insurance is a long-term contract with policyholders, there could be a stringent on-boarding process of new policyholders irrespective of whether he/she contracted Covid. For one, almost all the life insurers including LIC and SBI Life have introduced Covid questionnaires where the prospective policyholders have to provide details such as whether they have travelled abroad in the past six months to one year, whether they plan to travel abroad, date of discharge in case of a Covid-19 diagnosis and whether full recovery has been achieved. This questionnaire is to be submitted along with the proposal form while buying the policy.

Delay in health policies too

In health insurance, while there is no cooling-off period or postponement of policy issuance to new policyholders in many cases, the health/general insurers are cautious when on-boarding customers, particularly those who had recovered from Covid. A few insurers including ICICI Lombard, Max Bupa and Manipal Cigna do have a cooling-off period (in the range of 15-90 days) when on-boarding a customer.

Priya Deshmukh Gilbile, Chief Operating Officer, Manipal Cigna Health, says “While the vaccine is a preventive measure, members who have had a Covid infection may have a possibility of future complications. From that perspective, a person who has been Covid-positive but who is getting vaccinated will still undergo the cooling-off period, and it does not have a bearing on premiums.”

Those who have recovered from Covid, in addition to providing details regarding current health condition, may be required to submit medical records, details of treatment undertaken, the severity of infections and past medical conditions and corresponding records, to the insurer. Some insurers require additional medical tests but it differs on a case-to-case basis. “A medical check-up requirement for those recovered from Covid will depend on the extent of the hospital treatment or the level of damage to the lungs and other vital organs,” says Gurdeep Singh Batra, Head – Retail Underwriting, Bajaj Allianz General Insurance.

Many insurers require that if an individual with pre-existing condition such as diabetes, asthma or hypertension has recovered from Covid, he/she may have to undergo further medical tests in addition to submitting a Covid-negative report. However, this is not a universal requirement.

Do note that health policies generally come with an initial waiting period of 30 days..

If you have any pre-existing conditions, there is a waiting period of 2-4 years and there are disease-specific waiting periods as well that vary with insurers. Even if you consider Covid-specific insurance policies like Corona Kavach or Corona Rakshak, there is a waiting period of 15 days.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

Axis Bank Revises Interest Rates On FD, Check Current Rates Here

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Axis Bank, the leading private sector lender, has revised its fixed deposit (FD) interest rates, which are in effect from May 21, 2021. Axis Bank offers fixed-rate deposits with periods ranging from seven to ten years. Axis Bank currently provides 2.50 percent interest on FDs maturing between 7 and 29 days, 3 percent interest on FDs maturing between 30 days and less than 3 months, and 3.5 percent interest on FDs maturing between 3 months and less than 6 months, after the most recent adjustment. Axis Bank proposes a 4.40 percent interest rate on FDs with maturities ranging from six months to eleven months and 25 days to less than one year. Long-term deposits maturing in two to five years will provide you a 5.40 percent interest at Axis Bank. Whereas 5.75 percent interest is offered on deposits for a maturity period of 5 to 10 years.

Axis Bank Revises Interest Rates On FD, Check Current Rates Here

Axis Bank FD Rates (Below Rs 2 Cr)

Following the most recent adjustment, Axis Bank will now provide interest rates to the general public spanning from 2.5 percent to 5.75 percent. Non-senior citizens will get the best rate of 5.75 percent on FDs with a maturity period of 5 to 10 years from the bank. For deposits maturing in 7 days to 10 years, senior citizens will now get interest rates ranging from 2.5 percent to 6.50 percent. Check the revised rates of Axis Bank on fixed deposit below:

Tenure Regular FD Rates In % Senior Citizen FD Rates in %
7 days to 14 days 2.50 2.50
15 days to 29 day 2.50 2.50
30 days to 45 days 3.00 3.00
46 days to 60 days 3.00 3.00
61 days to less than 3 months 3.00 3.00
3 months to less than 4 months 3.50 3.50
4 months to less than 5 months 3.50 3.50
5 months to less than 6 months 3.50 3.50
6 months to less than 7 months 4.40 4.65
7 months to less than 8 months 4.40 4.65
8 months to less than 9 months 4.40 4.65
9 months to less than 10 months 4.40 4.65
10 months to less than 11 months 4.40 4.65
11 months to less than 11 months 25 days 4.40 4.65
11 months 25 days to less than 1 year 4.40 4.65
1 year to less than 1 year 5 days 5.10 5.75
1 year 5 days to less than 1 year 11 days 5.15 5.80
1 year 11 days to less than 1 year 25 days 5.10 5.75
1 year 25 days to less than 13 months 5.10 5.75
13 months to less than 14 months 5.10 5.75
14 months to less than 15 months 5.10 5.75
15 months to less than 16 months 5.10 5.75
16 months to less than 17 months 5.10 5.75
17 months to less than 18 months 5.10 5.75
18 Months to less than 2 years 5.25 5.90
2 years to less than 30 months 5.40 6.05
30 months to less than 3 years 5.40 5.90
3 years to less than 5 years 5.40 5.90
5 years to 10 years 5.75 6.50
Source: Axis Bank, W.e.f. 21.05.2021



[ad_2]

CLICK HERE TO APPLY

Leave a comment

SBI Vs Axis Vs HDFC Vs ICICI Vs BOB: Latest Senior Citizens FD Rates Compared

Personal Finance

[ad_1]

Read More/Less


SBI Fixed Deposit For Senior Citizens

The interest rate on the SBI’s ‘Wecare Deposit’ special FD scheme for senior citizens is 80 basis points (bps) higher than the interest rate offered to the general public. A senior citizen will be eligible to earn a 6.20 percent interest rate on his or her deposit under the special FD scheme. The senior citizen FD rates offered by SBI for a deposit amount of less than Rs 2 Cr are listed below for periods spanning from 7 days to 10 years.

Tenure Senior Citizen FD Rates
7 days to 45 days 3.40%
46 days to 179 days 4.40%
180 days to 210 days 4.90%
211 days to less than 1 year 4.90%
1 year to less than 2 year 5.50%
2 years to less than 3 years 5.60%
3 years to less than 5 years 5.80%
5 years and up to 10 years 6.20%
Source: SBI, W.e.f. 08.01.2021

Axis Bank FD Rates For Senior Citizens

Axis Bank FD Rates For Senior Citizens

On certain maturities, Axis Bank gives senior citizens a higher rate. For deposits maturing in 7 days to 10 years, senior citizens can get interest rates ranging from 2.5 percent to 6.50 percent. Below are the revised interest rates of Axis Bank for senior citizens for a deposit amount of less than Rs 2 Cr.

Tenure Senior Citizen FD Rates in %
7 days to 14 days 2.50
15 days to 29 day 2.50
30 days to 45 days 3.00
46 days to 60 days 3.00
61 days to less than 3 months 3.00
3 months to less than 4 months 3.50
4 months to less than 5 months 3.50
5 months to less than 6 months 3.50
6 months to less than 7 months 4.65
7 months to less than 8 months 4.65
8 months to less than 9 months 4.65
9 months to less than 10 months 4.65
10 months to less than 11 months 4.65
11 months to less than 11 months 25 days 4.65
11 months 25 days to less than 1 year 4.65
1 year to less than 1 year 5 days 5.75
1 year 5 days to less than 1 year 11 days 5.80
1 year 11 days to less than 1 year 25 days 5.75
1 year 25 days to less than 13 months 5.75
13 months to less than 14 months 5.75
14 months to less than 15 months 5.75
15 months to less than 16 months 5.75
16 months to less than 17 months 5.75
17 months to less than 18 months 5.75
18 Months to less than 2 years 5.90
2 years to less than 30 months 6.05
30 months to less than 3 years 5.90
3 years to less than 5 years 5.90
5 years to 10 years 6.50
Source: Axis Bank, W.e.f. 21.05.2021

HDFC Bank Fixed Deposit For Senior Citizens

HDFC Bank Fixed Deposit For Senior Citizens

The HDFC Bank Senior Citizen Care FD has a 75 basis point higher interest rate for senior citizens. Under the special FD scheme, an interest rate of 6.25 percent is provided on a fixed deposit made by a senior citizen. HDFC’s senior citizen FD rates for deposits less than Rs 2 crore are mentioned below, for terms ranging from 7 days to 10 years.

Tenure Senior Citizen FD Rates
7 – 14 days 3.00%
15 – 29 days 3.00%
30 – 45 days 3.50%
46 – 60 days 3.50%
61 – 90 days 3.50%
91 days – 6 months 4.00%
6 months 1 days – 9 months 4.90%
9 months 1 day less than 1 Year 4.90%
1 Year 5.40%
1 year 1 day – 2 years 5.40%
2 years 1 day – 3 years 5.65%
3 year 1 day- 5 years 5.80%
5 years 1 day – 10 years 6.25%
Source: HDFC Bank, W.e.f. 13th Nov, 2020

ICICI Bank Fixed Deposit For Senior Citizens

ICICI Bank Fixed Deposit For Senior Citizens

The ICICI Bank Golden Years FD scheme offers senior citizens a 6.30 percent annual interest rate. Senior citizens can earn an additional 0.30 percent interest rate on fixed deposits. It only applies to single fixed deposits worth less than Rs 2 crore. The ICICI Bank’s senior citizen FD rates for deposits of less than Rs 2 crore are framed below, with terms varying from 7 days to 10 years.

Tenure Senior Citizen FD Rates
7 days to 14 days 3.00%
15 days to 29 days 3.00%
30 days to 45 days 3.50%
46 days to 60 days 3.50%
61 days to 90 days 3.50%
91 days to 120 days 4.00%
121 days to 184 days 4.00%
185 days to 210 days 4.90%
211 days to 270 days 4.90%
271 days to 289 days 4.90%
290 days to less than 1 year 4.90%
1 year to 389 days 5.40%
390 days to less than 18 months 5.40%
18 months days to 2 years 5.50%
2 years 1 day to 3 years 5.65%
3 years 1 day to 5 years 5.85%
5 years 1 day to 10 years 6.30%
5 Years (80C FD) 5.85%
Source: ICICI Bank, W.e.f. October 21, 2020

Bank of Baroda Fixed Deposit For Senior Citizens

Bank of Baroda Fixed Deposit For Senior Citizens

At Bank of Baroda, senior citizens can get a 100 basis point benefit on these deposits. A senior citizen who holds a fixed deposit under the special FD scheme for more than 5 years and up to 10 years will get a 6.25 percent interest rate. The senior citizen FD rates offered by Bank of Baroda for deposits of less than Rs 2 crore are mentioned below.

Tenure Senior Citizen FD Rates
7 days to 14 days 3.30%
15 days to 45 days 3.30%
46 days to 90 days 4.20%
91 days to 180 days 4.20%
181 days to 270 days 4.80%
271 days & above and less than 1 year 4.90%
1 year 5.40%
Above 1 year to 400 days 5.50%
Above 400 days and up to 2 Years 5.50%
Above 2 Years and up to 3 Years 5.60%
Above 3 Years and up to 5 Years 5.75%
Above 5 Years and up to 10 Years 6.25%
Source: BOB, W.e.f. 16/11/2020



[ad_2]

CLICK HERE TO APPLY

Leave a comment

5 Best 3-5 Year Fixed Deposits For Senior Citizens

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Senior Citizen Fixed Deposits (FDs) are term deposit schemes which fetch additional interest rates available to individuals over the age of 60 from leading banks. Apart from the additional rate of interest, which can go up to 0.50 percent higher than the general public, these fixed deposit accounts provide other advantages to senior citizens also such as loan against fixed deposits, tax benefits and so on. Senior citizens can choose from a variety of interest payout options, with interest being credited to the depositor’s savings account on a monthly, quarterly, half-yearly, or yearly basis. So if you are a senior citizen and want to invest for a medium term let’s say about 3 years to 5 years, here we have compiled top 5 banks which are currently promising best interest rates available in the market.

3 Year Fixed Deposits For Senior Citizens

3 Year Fixed Deposits For Senior Citizens

For a three-year term, here are the top five bank fixed deposit interest rates for a deposit amount of less than Rs 2 Cr.

Banks Interest Rates in % W.e.f.
Suryoday Small Finance Bank 7.50% 15.02.2021
Ujjivan Small Finance Bank 7.25% 05.03.2021
Equitas Small Finance Bank 7.15% 25.01.2021
DCB Bank 7.00% 15.05.2021
IndusInd Bank 7.00% 26.04.2021
Source: Bank Websites

5 Best 1-2 Year Fixed Deposits For Senior Citizens

5 Year Fixed Deposits For Senior Citizens

5 Year Fixed Deposits For Senior Citizens

Here are the top five bank fixed deposit interest rates for a deposit of less than Rs 2 crore for a 5-year period.

Banks Interest Rates in % W.e.f.
Suryoday Small Finance Bank 7.75% 15.02.2021
Yes Bank 7.50% 10.05.2021
Ujjivan Small Finance Bank 7.25% 05.03.2021
RBL Bank 7.10% 07.05.2021
DCB Bank 7.00% 15.05.2021
Source: Bank Websites

How To Get Higher Returns From Fixed Deposits Without Making Premature Withdrawal?

How interest earned from fixed deposits is taxed for senior citizens?

How interest earned from fixed deposits is taxed for senior citizens?

Under section 80C, any investor who invests in tax saver FDs for a 5-year lock-in period can claim a deduction on the deposit amount up to Rs 1.5 lakh. Investments in Post Office Time Deposits of 5 years are also eligible for a deduction under section 80 (C) of the Income Tax Act of 1961. TDS is deducted from the interest earned on these deposits based on the investor’s tax slab. Individuals must pay TDS if their gross interest received in a financial year crosses Rs 40,000. Section 80TTB allows senior citizens to claim a deduction of up to Rs 50,000 on interest received on fixed deposits. TDS can be avoided by filling out Form 15G (or Form 15H for senior citizens) and submitting it to the relevant bank or post office.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

6 Benefits That The New Income Tax E-filing Portal Would Offer

Personal Finance

[ad_1]

Read More/Less


Taxes

oi-Roshni Agarwal

|

As per a notification, Indian tax system from June 7, 2021 is set to see a new tax efiling portal. And as it is expected to be an advanced version of the previous tax e-filing portal, it shall be aimed at being tax-friendly and even reduce the turn around time for various of the tax functionalities.

6 Benefits That The New Income Tax E-filing Portal Would Offer

6 Benefits That The New Income Tax E-filing Portal Would Offer

So, below are listed some of the advantages of the new tax e-filing portal that will come up on June 7, 2021:

1. The system shall well be integrated with the tax refund processing such that issuance is made easily and without too much of hassle gets involved.

2. For smooth follow up, taxpayers will be able to easily access all the communication from the authorities, pending actions and other such details over one dashboard.

3. Free ITR preparation software both offline and online that could even be of help to those who do not have tax knowledge and further there shall be pre-filled information on various of the field to lessen taxpayer work.

4. A new call centre for customer or taxpayer query shall be immediately made available with chatbot, FAQs, videos etc.

5. Moreover most of the major desktop functions shall also be made available over the mobile app that will be later update for complete access on a mobile network.

6. Also, a new tax payment system over the new portal shall be available for enabling several payment options such as net banking, UPI,RTGS and other modes.

GoodReturns.in



[ad_2]

CLICK HERE TO APPLY

Leave a comment

5 Best Savings Accounts With Interest Rates Up To 7.15%

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

A savings account is a standard bank account that lets you make deposits, keep it secure, and withdraw it while earning interest. A tiny handful of withdrawals, cheque book facility, linked debit card facilities, restricted transfer options, and so on are all key factors of a savings account. Savings accounts typically pay compound interest rates which are lower than that of fixed deposits. Despite the fact that these accounts usually pay a low interest rate, their safety makes them an excellent choice for preserving capital for potential needs. If you want to open a savings account in the current turbulent time then here are the 5 banks that are currently fetching best interest rates and most of them are also higher than the interest rates of fixed deposits of leading banks.

Top 5 Private Banks With Higher Interest Rates On Savings Accounts

Top 5 Private Banks With Higher Interest Rates On Savings Accounts

Here are the top 5 private sector banks which are currently higher interest rates on savings accounts. The interest rates are subject to the minimum and maximum deposit amount.

Banks Interest Rates W.e.f.
Bandhan Bank 3.00% to 7.15% 07.09.2020
RBL Bank 4.50% to 6.25% May 7, 2021
IndusInd Bank 4.00% to 6.00% April 26, 2021
Yes Bank 4.00% to 5.50% 08.12.2020
DCB Bank 3.25% to 5.50% 17.06.2020
Source: Bank Websites

Top 5 Public Sector Banks With Higher Interest Rates On Savings Accounts

Top 5 Public Sector Banks With Higher Interest Rates On Savings Accounts

Below we’ve curated a list of the top 5 public sector banks that are currently offering the best savings account rates.

Banks Interest Rates W.e.f.
Punjab National Bank 3.00% to 3.50% March 1, 2021
IDBI Bank 3.00% to 3.40% May 1, 2021
Canara Bank 2.90% to 3.20% 28.09.2020
Bank of Baroda 2.75% to 3.20% 12.02.2021
Punjab & Sind Bank 3.10% 12 November, 2020
Source: Bank Websites

Top 5 Small Finance Banks With Higher Interest Rates On Savings Accounts

Top 5 Small Finance Banks With Higher Interest Rates On Savings Accounts

Below we’ve compiled a list of the top 5 small finance banks with the highest savings account rates right now.

Banks Interest Rates W.e.f.
Ujjivan Small Finance Bank 4.00% to 7.00% 6th March, 2021
AU Small Finance Bank 3.50% to 7.00% May 17, 2021
Equitas Small Finance Bank 3.50% to 7.00% April 1, 2021
Fincare Small Finance Bank 3.00% to 7.00% April 1, 2021
Jana Small Finance Bank 3.00% to 6.75% 06.05.2021
Source: Bank Websites

How interest earned from a savings account is taxed?

How interest earned from a savings account is taxed?

Your savings account interest falls under the category of income from other sources, and then your net income is taxed as per the applicable tax bracket. Individuals and HUFs are eligible for the deduction under section 80TTA, but companies and firms are not. Interest earned on all savings accounts kept in post offices, banks, or co-operative banks is eligible for a maximum deduction of Rs 10,000. Interest received in excess of Rs 10,000 from any of these streams is taxable. Those who are 60 years old or older can seek a maximum deduction of Rs 50,000 on interest income under section 80TTB.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Best Mutual Fund SIPs To Plan Retirement In India In 2021

Personal Finance

[ad_1]

Read More/Less


Best Mutual Funds from Different MF Categories That Can Serve Your Long Term Retirement Goal

Mutual fund AUM NAV as on May 21, 2021 SIP investment return 1 year 3 year 5 years
HDFC Retirement Savings Fund Rs. 1433 crore 24.23 66.00% 42.00% 52.00%
ICICI Prudential Balanced Advantage Rs. 30900 crore 45.5 14.87% 25.00% 35.00%
SBI small cap Rs. 7919 crore 86.8 42.00% 61.00% 77.00%
Parag Parikh Flexi Cap Fund Rs. 9179 crore 40.9 27.39% 51.13% 72.30%

1. HDFC Retirement Savings Fund:

1. HDFC Retirement Savings Fund:

Through a SIP of Rs. 10000 per month, you can start investing into the scheme to earn a consistent return. During the last 1-year, a lump sum investment of Rs. 10000 is now valued at Rs 17971, giving an exceptional yield of 80%. And over a still longer time frame, the mutual fund gave an annualized return in the range of 12-19 percent (This is in case of lump sum investment into the mutual fund category).

Interestingly and typically, these retirement funds are for those investors who are undisciplined when it comes to investing and can’t hold on to their investors. These MFs come with a lock in of either 5 years or until retirement.

2. ICICI Prudential Balanced Advantage:

2. ICICI Prudential Balanced Advantage:

If you have typically a longer term then this mutual fund shall be a good choice. This is a CRISIL 2 star rated scheme and has over a 1-year period generated a higher return than its benchmark of 41 percent. The fund’s holdings are into some of the bluechip names, ICICI Bank, RIL, Infosys, HDFC twins, Bharti Airtel, Motherson Sumi among others.

3. SBI Small Cap Fund:

3. SBI Small Cap Fund:

This is a risky bet and is suitable for those investors who have a longer bet as well as a high risk tolerance. Being a highly aggressive fund, the fund managed to reap a high return of over 1 percent in the last 1-year as equity markets saw their best performance. The holdings of the fund include JK Cement, Elgi Equipment, Carborundum, Sheela Foam among others. The fund is categorized within the moderately high risk category.

4. Parag Parikh Flexi Cap Fund:

4. Parag Parikh Flexi Cap Fund:

After the evolution of these flexi cap schemes, this mutual fund category has gained huge investor acceptance. Know about the category of mutual fund. Now coming back to the prospects of this fund meeting your retirement goal, this fund over the last one year has underperformed its benchmark with return of 68 percent.

The fund is invested into international equity say for instance in Alphabet Inc-Class C shares, Microsoft corp, Facebook, Amazon.com and other than that its holding include ITC, Bajaj Holdings & Investments.

Conclusion

Conclusion

Note here we have listed mutual funds considering that your retirement goal is some 10 or even 15-20 years away. But notably, you would then require a substantially higher amount in comparison to what is current expense.

Also as and when you near your financial goal it is best to get off those investments and park the money into short term debt funds to protect your investments.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Best Mutual Fund SIPs To Plan Retirement In India In 2021

Personal Finance

[ad_1]

Read More/Less


Best Mutual Funds from Different MF Categories That Can Serve Your Long Term Retirement Goal

Mutual fund AUM NAV as on May 21, 2021 SIP investment return 1 year 3 year 5 years
HDFC Retirement Savings Fund Rs. 1433 crore 24.23 66 % 42% 52%
ICICI Prudential Balanced Advantage Rs. 30900 crore 45.5 14.87% 25% 35%
SBI small cap Rs. 7919 crore 86.8 42% 61% 77%
Parag Parikh Flexi Cap Fund
Rs. 9179 crore 40.9 27.39% 51.13% 72.3%

1. HDFC Retirement Savings Fund:

1. HDFC Retirement Savings Fund:

Through a SIP of Rs. 10000 per month, you can start investing into the scheme to earn a consistent return. During the last 1-year, a lump sum investment of Rs. 10000 is now valued at Rs 17971, giving an exceptional yield of 80%. And over a still longer time frame, the mutual fund gave an annualized return in the range of 12-19 percent (This is in case of lump sum investment into the mutual fund category).

Interestingly and typically, these retirement funds are for those investors who are undisciplined when it comes to investing and can’t hold on to their investors. These MFs come with a lock in of either 5 years or until retirement.

2. ICICI Prudential Balanced Advantage:

2. ICICI Prudential Balanced Advantage:

If you have typically a longer term then this mutual fund shall be a good choice. This is a CRISIL 2 star rated scheme and has over a 1-year period generated a higher return than its benchmark of 41 percent. The fund’s holdings are into some of the bluechip names, ICICI Bank, RIL, Infosys, HDFC twins, Bharti Airtel, Motherson Sumi among others.

3. SBI Small Cap Fund:

3. SBI Small Cap Fund:

This is a risky bet and is suitable for those investors who have a longer bet as well as a high risk tolerance. Being a highly aggressive fund, the fund managed to reap a high return of over 1 percent in the last 1-year as equity markets saw their best performance. The holdings of the fund include JK Cement, Elgi Equipment, Carborundum, Sheela Foam among others. The fund is categorized within the moderately high risk category.

4. Parag Parikh Flexi Cap Fund:

4. Parag Parikh Flexi Cap Fund:

After the evolution of these flexi cap schemes, this mutual fund category has gained huge investor acceptance. Know about the category of mutual fund. Now coming back to the prospects of this fund meeting your retirement goal, this fund over the last one year has underperformed its benchmark with return of 68 percent.

The fund is invested into international equity say for instance in Alphabet Inc-Class C shares, Microsoft corp, Facebook, Amazon.com and other than that its holding include ITC, Bajaj Holdings & Investments.

Conclusion

Conclusion

Note here we have listed mutual funds considering that your retirement goal is some 10 or even 15-20 years away. But notably, you would then require a substantially higher amount in comparison to what is current expense.

Also as and when you near your financial goal it is best to get off those investments and park the money into short term debt funds to protect your investments.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

4 Best Mutual Funds To Plan Retirement In India In 2021

Personal Finance

[ad_1]

Read More/Less


Best Mutual Funds from Different MF Categories That Can Serve Your Long Term Retirement Goal

Mutual fund AUM NAV as on May 21, 2021 SIP investment return 1 year 3 year 5 years
HDFC Retirement Savings Fund Rs. 1433 crore 24.23 66 % 42% 52%
ICICI Prudential Balanced Advantage Rs. 30900 crore 45.5 14.87% 25% 35%
SBI small cap Rs. 7919 crore 86.8 42% 61% 77%
Parag Parikh Flexi Cap Fund
Rs. 9179 crore 40.9 27.39% 51.13% 72.3%

1. HDFC Retirement Savings Fund:

1. HDFC Retirement Savings Fund:

Through a SIP of Rs. 10000 per month, you can start investing into the scheme to earn a consistent return. During the last 1-year, a lump sum investment of Rs. 10000 is now valued at Rs 17971, giving an exceptional yield of 80%. And over a still longer time frame, the mutual fund gave an annualized return in the range of 12-19 percent (This is in case of lump sum investment into the mutual fund category).

Interestingly and typically, these retirement funds are for those investors who are undisciplined when it comes to investing and can’t hold on to their investors. These MFs come with a lock in of either 5 years or until retirement.

2. ICICI Prudential Balanced Advantage:

2. ICICI Prudential Balanced Advantage:

If you have typically a longer term then this mutual fund shall be a good choice. This is a CRISIL 2 star rated scheme and has over a 1-year period generated a higher return than its benchmark of 41 percent. The fund’s holdings are into some of the bluechip names, ICICI Bank, RIL, Infosys, HDFC twins, Bharti Airtel, Motherson Sumi among others.

3. SBI Small Cap Fund:

3. SBI Small Cap Fund:

This is a risky bet and is suitable for those investors who have a longer bet as well as a high risk tolerance. Being a highly aggressive fund, the fund managed to reap a high return of over 1 percent in the last 1-year as equity markets saw their best performance. The holdings of the fund include JK Cement, Elgi Equipment, Carborundum, Sheela Foam among others. The fund is categorized within the moderately high risk category.

4. Parag Parikh Flexi Cap Fund:

4. Parag Parikh Flexi Cap Fund:

After the evolution of these flexi cap schemes, this mutual fund category has gained huge investor acceptance. Know about the category of mutual fund. Now coming back to the prospects of this fund meeting your retirement goal, this fund over the last one year has underperformed its benchmark with return of 68 percent.

The fund is invested into international equity say for instance in Alphabet Inc-Class C shares, Microsoft corp, Facebook, Amazon.com and other than that its holding include ITC, Bajaj Holdings & Investments.

Conclusion

Conclusion

Note here we have listed mutual funds considering that your retirement goal is some 10 or even 15-20 years away. But notably, you would then require a substantially higher amount in comparison to what is current expense.

Also as and when you near your financial goal it is best to get off those investments and park the money into short term debt funds to protect your investments.



[ad_2]

CLICK HERE TO APPLY

Leave a comment
1 … 263 264 265 266 267 … 387