Category: Personal Finance

Questions To Answer To Decide On Cryptocurrency/ Bitcoin Investment

1. Can you accept wide swings in the cryptocurrency that sometime occur by a minute?

2. Do you understand the technology running the cryptos or bitcoin and other altcoins?

3. Will you be willing to invest in an asset that operates on Decentralised finance with no central regulatory or authority overseeing it?

Positives of the cryptocurrency/bitcoin as pointed out by experts

Also one you discuss an asset you can also point to its positives as seen by experts:

As only recently the inclination for the asset category has spiked only to exponential gains in their prices, there have come up some views by experts that can also be highlighted here:

1. Cryptos have the potential to come out as primary currency form and thus could radically change the banking landscape.

2. Because of its limited supply it has also been accorded the tag similar to gold of being a ‘store of value’ and even having the functionality to serve as a inflation hedge and some even call it as a digital gold.

Points to decide on your cryptocurrency or bitcoin purchase decision:

1. No one holistic view on cryptos in terms of their prospects:

Even as some experts see cryptos to be performing good over the long term, nobody can with certainty assert about their future prospects. Some of the leading names in India and across say for instance Kamath of Zerodha he said he doesn’t invest in them because he does not understands them.

Likewise, Charlie Munger, VP-Berrkshire Hathaway called ‘bitcoin or crypto investment ” disgusting and contrary to the interest of civilization.

And so for a retired or near retirement person considering that his other retirement savings are well in sync with the retirement needs one should be better off refraining from them as cryptos being a highly risky investment.

2. Higher volatility to which these instruments are exposed to shouldn’t go well in the retirement age:

Say when you are depended on meeting your retirement age’s various expenses such as fixed and other medical expenses through earnings from your deposits say you have made in MIS scheme or fixed deposits, how can you expose your investment to such a volatility, so better not get into them.

Say only on May 19, the crypto bitcoin crashed by a huge 30 percent in a day and recovered most of the losses to again hit levels of over $40000 per coin the next day.

So, if a suitable retirement savings plan is already in place for you, do not get yourself into a trouble by investing in these new cryptocurrenies.

But nonetheless, if your risk appetite and wealth allows to test such a novel investment too and have the capacity to absorb the huge risk, go the SIP-way and avoid lump sum investments in cryptocurrencies or bitcoin. As it is some of the cryptos are highly priced say for instance bitcoin which in rupee terms is priced at Rs. 30.51 lakhs.

Options Other Than Cryptocurrencies/ bitcoin for making good returns

Options which retirees can consider if they still have ample free cash or want to tap higher returns

1. Index funds:

Index funds in India which largely mimic the performance of a particular index are less risky and can even help you earn inflation beating high returns. Probably a SIP in index fund can be a best idea.

2. Dividend stocks:

These stocks which earn you dividend consistently help you supplement your passive income stream and thus can provide you a diversification from your regular conventional savings plan.

GoodReturns.in

Who should invest in Banking Mutual Funds?

Due to the fact that sectoral baking funds are sector funds, they have a higher concentration risk than any other form of mutual fund. As a result, sectoral banking funds are appropriate for investors who are willing to take on more risk in exchange for the chance to outperform the market while the banking sector is performing well. To mitigate the associated risks to a greater degree, a long-term investment horizon is needed. Investing in these funds allows you to gain exposure to a portfolio of the best-performing banking stocks. Due to a lack of diversification, if the sector faces difficulties, so will the investments. Since the banking and finance sector is regarded as one of the country’s backbones, it will contribute to the country’s growth, especially if the government supports the sector.

SBI Banking & Financial Services Fund

The fund has a 5 Star rating from Value Research Online. The fund’s expense ratio is 0.91 percent, which is lower than the expense ratios charged by most other Sectoral-Banking funds. The fund’s top 5 holdings are in HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, Kotak Mahindra Bank Ltd. The NAV of the fund is Rs 24.39. The AUM of SBI Banking & Financial Services Fund is Rs 2,401 Crores. The minimum SIP amount is Rs 500 for the fund. The funds first year return is 87.39%, while 5 year return is 19.95%. If a person has invested Rs 500 in SIP one year back, the return as of now would be Rs 81,325 which is 87.4%.

Invesco India Financial Services Fund

Invesco India Financial Services Fund Direct-Growth had 36841 Crores in assets under management (AUM), making it a medium-sized fund in its group. The fund’s expense ratio is 1.18 percent, which is comparable to the expense ratios charged by most other Sectoral-Banking funds. The 1-year returns on Invesco India Financial Services Fund Direct-Growth are 80.05 percent. It has produced an average annual return of 15.16 percent since its inception. Every five years, the fund has doubled the capital invested in it.

If a person has invested Rs 10,000 of monthly SIP for 5 years – The returns would have been Rs 8.84 lakh. If the same amount was invested in bank FD, your returns would be Rs 7.16 lakh (7.18%). The fund has a 4 Star rating from Value Research Online.

Sundaram Fin Services Opp Reg

Sundaram Financial Services Opportunities Fund Direct-Growth returns were 84.51 percent in the previous year. It has returned an average of 13.92 percent per year since its inception. Every five years, the fund has doubled the capital invested in it. HDFC Bank Ltd., ICICI Bank Ltd., Housing Development Finance Corpn. Ltd., Axis Bank Ltd., and State Bank of India are the fund’s top five holdings. The AUM is low at Rs 333 Crore and NAV stands at Rs 54.3. The minimum SIP for the fund is Rs 100. The expense ratio for the fund is high at 2.64%.

Tata Banking & Fin Services

The last one-year returns on the Tata Banking and Financial Services Fund Direct-Growth are 75.22 percent. It has produced an average annual return of 20.06 percent since its inception. Every five years, the fund has doubled the capital invested in it. The fund’s top 5 holdings are in HDFC Bank Ltd., ICICI Bank Ltd., Housing Development Finance Corpn. Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd.. The fund has an expense ratio of 1.03%, which is less than what most other Sectoral-Banking funds charge. The NAV of the fund is Rs 25.94 and AUM stands at Rs 683 crores. The minim amount for SIP is Rs 500. The fund has 4 Star rating from Valueresearch Online.

Aditya Birla Sun Life Banking & Financial Services Fund

Aditya Birla Sun Life Banking & Financial Services Fund Direct-Growth returns have been 95.97 percent over the last year. It has produced an average annual return of 19.23% since its inception. Every two years, the fund has doubled the capital invested in it. The fund’s top 5 holdings are in ICICI Bank Ltd., HDFC Bank Ltd., State Bank of India, Axis Bank Ltd., Bajaj Finance Ltd..

The fund’s expense ratio is 1.19 percent, which is comparable to the expense ratios charged by most other Sectoral-Banking funds.

Conclusion

Investing in sector funds is a good idea. They will raise an investor’s portfolio returns if they are paced correctly. Before investing in these, it’s a good idea to learn about the business, how they fit into the portfolio, and how much sector exposure is appropriate.

Sector funds are a high-risk investment. Since sector funds are focused on a single industry and have a smaller number of stocks, they are more risky than a diversified equity mutual fund. Due to the high risk, financial advisors recommend that investors allocate no more than 5-10% of their portfolio to sectoral funds.

5 Best Banking Funds SIP To Invest In India 2021

5 Best Banking Funds SIP To Invest In India 2021

Procedure to make TDS payment online

To make a TDS payment online, follow these steps:

• Visit http://www.tin-nsdl.com and under the ‘Services’ section click on ‘e-payment Pay Taxes Online’
• Now under the TDS/TCS section click on the ‘CHALLAN NO./ITNS 281’ option.
• You will now be redirected to a new page where you must fill in the necessary details.
• If you deduct TDS while making a payment to a company, click ‘Company Deductees’ under ‘Tax Applicable.’ Otherwise, choose ‘Non-Compay Deductees.’
• Now you will be asked to enter TAN and select the Assessment Year for which you are going to make the payment.
• Now select your state and enter the PIN Code of your area.
• Now select type of payment from (200) TDS/TCS Payable by Taxpayer or (400) TDS/TCS Regular Assessment.
• Now select the nature of payment and mode of payment from the given options.
• Enter Tax Deduction Account Number (if any) and click on ‘Submit’.
• The TAN will be validated after the form is submitted. The taxpayer’s full name will be displayed on the screen after successful authentication.
• You will be redirected to your bank’s net banking page once the entered details are confirmed by you.
• Then, using the user ID and password, sign in to your net banking account to complete the payment procedure.
• A counterfoil challan will be generated and displayed on the screen after an effective payment. The Corporate Identity Number (CIN) and payment details, as well as the name of the bank from which the payment was issued, will be recorded on this challan.

Due date to make TDS payment for AY 2020-21

TDS payments under Sections 194-IA, 194-IB, and 194M of the Income-tax Act, 1961, and also the submission of challan-cum-statement for tax deducted, which were due on April 30, 2021, can now be filled and submitted on or before May 31, 2021.

Interest for failure to deduct tax at source/delay in payment of TDS

According to section 201, any individual who is required to deduct tax at source fails to deduct it or fails to pay the whole or any part of the tax to the credit of the government shall be responsible for paying simple interest as follows:

From the date on which such tax was deductible until the date on which such tax was deducted, interest of one percent per month or part of a month shall be charged on the amount of such tax.

From the date on which such tax was withheld to the date on which such tax was actually remitted to the credit of the Government, interest at 1.5 percent a month or part of a month shall be imposed on the amount of such tax.

In simple terms, interest will be charged at 1% for each month or part of a month for which deduction is delayed, and 1.5 percent for each month or part of a month for which remittance after deduction is delayed.

Late filing fees under section 234E

According to section 234E, if an individual fails to submit the TDS/TCS return on or before the due date, he is responsible to pay a fee of Rs. 200 for each day during which the default lasts. The amount of late fees must not be higher than the amount of TDS. Late filing fees, as stated above, are required in order to file a TDS/TCS return. In other terms, the late filing fees must be paid before the TDS return is filed. It should be remembered that Rs. 200 a day is a late filing fee, and not a penalty.

Penalty under section 271H

If a person fails to file the declaration of tax deducted/collected at source, also known as a TDS/TCS return, on or before the deadlines, the assessing officer may cause the individual to pay a penalty under section 271H. A minimum penalty of Rs. 10,000 can be imposed, with a maximum penalty of Rs. 100,000. The penalty imposed by section 271H will be in relation to the late filing penalty imposed by section 234E. However, apart from late TDS/TCS return filing, section 271H also includes incorrect TDS/TCS return filing. If the deductor/collector files an incorrect TDS/TCS return, a penalty under section 271H can be imposed. In simple terms, if the deductor/collector files an incorrect TDS/TCS return, a minimum penalty of Rs. 10,000 and a maximum penalty of Rs. 1,00,000 will be imposed.

Steps to track the status of TDS payment

By following the steps listed below you can track the status of your TDS payment online:

• Visit www.tdscpc.gov.in/app/tapn/tdstcscredit.html and enter the captcha code
• Click on ‘Proceed’ and then enter the details of your PAN and TAN.
• After that, select the financial year, quarter, and return type.
• By clicking on ‘Go’ you can track the status of your TDS payment.

Steps to track the status of TDS payment through e-filing portal

• Visit www.incometaxindiaefiling.gov.in/home and click on ‘Login Here’ if you are a registered user. If you are not a registered user you can register yourself by clicking on ‘New To e-Filing? Register Here’.
• Now go to the ‘My Account’ section and click on ‘View Form 26AS’.
• Now select the financial and download the file in PDF format. To open the file which is password-protected you will be asked to enter your date of birth.

In a tweet LPG gas provider, Indian Oil Corporation in its annual results announced for FY 2020-21, highlighted the company’s customer centric initiative and that included:

1. Indane Extra Tej (LPG i.e. more efficient)
2. India’s highest octane XP 100 and XP 95 Premium petrol for high performance vehicles
3. Chhotu 5kg LPG cylinder
4. LPG booking facility via missed call
5. Combo cylinder and Niche composite cylinder

#IndianOilAnnualResults pic.twitter.com/A7T2zecKVP

— Indian Oil Corp Ltd (@IndianOilcl) May 19, 2021

So while the second service is for vehicle owners, the rest of the services are all households who have an Indane connection.

1. Indane Extra Tez:

Under this service customers shall be offered a premium quality of LPG or liquefied petroleum gas. This not only shall reduce the cooking time but also make healthier food which shall come as a savior in this hour of the pandemic.

2. Chhotu 5kg LPG cylinder:

This chhotu LPG cylinder being offered by IOC can be bought by households that don’t have much LPG usage. Further it can be procured from your LPG agency or the petrol pump dealer.

3. Booking Indane LPG or cooking gas cylinder via missed call:

Amid the pandemic, IOC has started a gas booking service by just giving a missed call from the mobile number registered with the agency. The move will also help those Indane customers who are not comfortable using IVRS facility. The number for the same that IOC has designated is 8454955555.

4. Combo cylinder:

In hours like this when you may get deliveries of LPG cylinders, you can prepare yourself by opting for combo cylinder that come as 14.2 kg LPG cylinder and another 5kg cylinder.

Now that as you use LPG cylinders, there is always of risk of some accident on account of it and for the same you also are covered. Read on to know more about it.

GoodReturns.in