Category: Personal Finance

Roaring crypto cacophony drowns out rest of Wall Street, BFSI News, ET BFSI

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By Brandon Kochkodin

Wild stock swings, spikes in Treasury yields, startling economic readings? Interesting, sure. But if you really want to get people’s attention right now, you need to tell them a story about crypto.

And there have been a lot of those. Even for a market that’s famous for its wild volatility and gimmicks, the past week’s cryptocurrency news set new records for jaw-droppers.

It began with Elon Musk’s highly anticipated appearance as host on “Saturday Night Live.” Dogecoin owners watched hoping that the “Dogefather” would further propel the digital currency that had soared this year from less than a penny to 74 cents before he took the stage.

What they got instead was a skit in which he laughed after calling the coin a “hustle.” Since then, the Shiba Inu-branded coin created as a joke has lost almost half of its value.

Dogecoin wasn’t the only canine-themed coin to take a tumble.

Shiba Inu coin — yes, a meta joke about the joke that is Dogecoin — soared earlier in the week as it was added to exchanges like OKEx and Binance. It and other Dogecoin imitators’ popularity reached such heights that transaction fees on the Ethereum network hit an all-time high, according to CoinDesk.

The rally faded quickly. The cryptocurrency plunged Wednesday after the Wall Street Journal reported that Ethereum creator Vitalik Buterin donated more than $1 billion of the coin to a charity that is fighting the spread of Covid-19 in India.Then that night, Musk struck again. He announced that Tesla Inc. would no longer accept Bitcoin as a form of payment for its cars. In a tweet, Musk said that the carmaker was “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

While his tweet left Bitcoin holders wondering what spurred the change — the facts of the coin’s energy profile hadn’t changed since Tesla announced in March that it would accept it as payment — the market reacted swiftly. Bitcoin plunged from nearly $57,000 before his flip-flop to $46,000 within two hours.

Thursday brought some good news for crypto die-hards. Point72, the hedge fund run by billionaire New York Mets owner Steve Cohen, was set to make a sizable move into the market. Bitcoin gained 2.5% following the news.

The rally didn’t last long.

Tether, the crypto stablecoin that says it’s backed one-for-one by fiat currencies, released a reserves breakdown for the first time that showed a large portion in unspecified commercial paper. The company has faced questions over both its reserves and whether it was used to manipulate cryptocurrency prices. In February, Tether settled a legal dispute with the New York Attorney General’s Office and paid a fine of $18.5 million.

After that, reports surfaced that Colonial Pipeline Co. paid nearly $5 million in untraceable cryptocurrency to the hackers that infiltrated the company’s network and forced the shutdown of its infrastructure, setting off widespread gasoline shortages up the U.S. eastern seaboard.

At about the same time, Bloomberg reported that Binance Holdings Ltd., the world’s biggest cryptocurrency exchange, was under investigation by the Justice Department and Internal Revenue Service in relation to possible money-laundering and tax offenses.

News of the investigation sent Bitcoin and Ethereum, the two largest cryptocurrencies, down by more than 7% each as fears were stoked about the Biden administration taking a tougher approach toward an industry that has largely operated outside of the gaze of regulators.

Then at 4:00 p.m. New York time, Coinbase Global, Inc., the biggest U.S. crypto exchange, reported first-quarter earnings. Its revenues fell just short of consensus estimates and the company projected flat user growth. Coinbase also plans to offer Dogecoin trading on its platform. The exchange’s shares fell as much as 6.5% in after-hours trading before recovering.

Friday in Asia is already bringing further drama, beginning with more comments from Musk. The billionaire in a tweet said he “strongly” believes in crypto but that “it can’t drive a massive increase in fossil fuel use, especially coal.”

Not long after, he followed up with another post saying that he’s working with Dogecoin “devs to improve system transaction efficiency,” describing the effort as “potentially promising.”



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Bitcoin falls below $50,000 as Musk calls energy use ‘insane’, BFSI News, ET BFSI

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By Yakob Peterseil and Dana Hull

Tesla Inc.’s Chief Executive Officer Elon Musk doubled down on his attack on Bitcoin’s energy demands, calling recent consumption trends “insane.”

Musk posted a chart on Twitter from the University of Cambridge showing Bitcoin’s electricity consumption has skyrocketed this year. It’s the second day he’s criticized crypto mining for using fossil fuels and comes after an announcement that Tesla would suspend car purchases using Bitcoin.

The turnaround by one of crypto’s loudest believers took investors by surprise and sent prices tumbling across the board. Bitcoin plunged 10% in early U.S. trading to below $50,000. Exchange operator Coinbase Global Inc. sank 2% in the premarket and other tokens including Ether and Dogecoin slumped.

“Bitcoin is also a manifestation of the value of the internet, and hence it stands to reason that social media and the cult of celebrity has, and will continue to have, an effect on driving demand,” said Stephen Kelso, head of markets at ITI Capital.

Mining the token consumes 66 times more electricity than it did back in late 2015, according to a recent Citigroup Inc. report.

Musk signaled on Wednesday that Tesla might accept other cryptocurrencies if they are less energy intensive, and said the company won’t sell any of its Bitcoin.

It’s unclear what prompted the decision and Musk and Zachary Kirkhorn, Tesla’s chief financial officer, didn’t immediately respond to an email inquiry for comment. Kirkhorn in March added the tongue-in-cheek title “Master of Coin,” according to a regulatory filing.Still, Musk’s tweets raise questions about Bitcoin’s attractiveness as an investment at a time when institutional firms are increasingly vocal about climate change and environmental issues.

“Surely he would have done his diligence prior to accepting Bitcoin?” said Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use. “Very odd and confusing to see this quick reversal.”

Musk’s decision in February to buy $1.5 billion in Bitcoin and plan to accept it as a form of payment has been a major catalyst in the crypto bull market. In the eyes of analysts, it helped add legitimacy to the token and usher in new investors.

Musk’s crypto tweets have often been in jest, and his attention toward Dogecoin brought the joke token into the mainstream. He’s quipped about being the “Dogefather” in the past, and tweeted on Tuesday, “Do you want Tesla to accept Doge?”



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Asirvad Microfinance plans to rope in partner; may go public in due course

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Manappuram Finance took over the Chennai-based company in February 2015 and at present has a 94.78% stake.

Asirvad Microfinance is considering options of bringing in a financial partner and going public in due course, a top official of the company said. However, its is not in a hurry given the current environment and is adequately capitalised at present to meet its growth, VP Nandakumar, chairman of Asirvad Microfinance, told FE.

Manappuram Finance took over the Chennai-based company in February 2015 and at present has a 94.78% stake.

“Manappuram Finance is very well capitalised today and we don’t have requirement for growth capital. But, our capital allocation policy formulated by the board stipulates that the incremental capital allocation for unsecured lending should not exceed 10% of the total allocation. This decision has been taken from a risk management perspective. It is in this context that we have considered raising fresh equity capital in Asirvad by bringing in a financial or strategic partner and listing on the stock exchange in due course,” Nandakumar said.

“The fact is that the microfinance business has very high growth potential and therefore a larger appetite for growth capital. Asirvad’s AUM has multiplied manifold since our acquisition in 2015,” he added. The microfinance company’s current capital adequacy is over 25% and its net worth exceeds Rs 1,000 crore.

Assets under management (AUM) grew 17 times in five years to touch Rs 5,500 crore by the end of FY20. In February 2015,when Manappuram had acquired the company, the AUM was around Rs 300 crore.

In FY21, the pandemic-induced slowdown impacted growth and there was a marginal erosion in AUM to Rs 5,357 crore as of Q3FY21.

“Our collection efficiencies improved significantly over the past few months, going above 100% of billings, as past dues are also getting collected. It had reached 99% in December 2020. However, with India now in the midst of a difficult second wave of the pandemic, we may have to wait before we can make an accurate assessment of where we stand,” Nandakumar said.

Regarding expansion, he said in line with risk management policy, the company has capped portfolio concentration at the state level to below 10% and at 1% for the district-level exposure. “Currently, Asirvad has more than 1,047 branches in 24 states. We are now present in most locations with business potential. We continue to add locations as and when warranted. Our focus is on achieving profitable, diversified and sustainable growth,” Nandakumar said.

The company reported a net profit of Rs 17.7 crore for the third quarter of FY21 as against a net profit of Rs 71.21 crore in the year-ago period.

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Power Grid InvIT IPO To List On Bourses On May 17: Here’s What To Expect From Its Listing

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Investment

oi-Roshni Agarwal

|

The first InvIT (Infrastructure Investment Trust) IPO by a state owned entity, Power Grid, will see the listing of its shares on the bourses on May 17. The IPO offer of Power Grid InvIT ran between April 29 and May 3, 2021 included a fresh issue of shares worth Rs 4,993.48 crore and an offer for sale (OFS) to the tune of Rs 2,741.50 crore by selling shareholders. It was sold in the price band of Rs 99-100 per unit. The issue received robust response owing to government backing.

First State-Owned InvIT To List On May 17: Here's What To Expect

Power Grid InvIT IPO To List On Bourses On May 17: Here’s What To Expect From Its Listing

On the last day of subscription, the Power Grid InvIT issue was subscribed 4.83 times. The Rs. 7735 crore IPO received bids to the tune of 205 crore units as against 42 crore units that were on offer. The portion reserved for the institutional investors was subscribed 4.63 times and other investors 5.07 times.

The Powergrid infrastructure Investment Trust is newly set up and as such it does not have any established operating history which makes it difficult to analyse the future growth prospects, told an analyst to a leading business daily.

What to expect from Power Grid InvIT IPO Listing?

Even though the Indian stock market in the days to come will more or less mirror the trend in the global stock market which fears rollback of stimulus by the US amid high inflation, Abhay Doshi, founder of UnlistedArena.com that deals in IPO and unlisted shares told a leading business daily that “the instrument being suitable for long term investors may not see considerable gains/losses on listing”. “However, the sponsor has a ‘Maharatna’ status from GoI. Also, PGIT has stable credit ratings from leading agencies”, he added.

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One Share Of Each Of These Bluechip Companies Every Investor Should Hold In His DP

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Investment

oi-Roshni Agarwal

|

List of Bluechip Stock every Indian Investor should hold is:

1. Adani Enterprises Rs. 1285
2. AB Capital Rs. 119
3. Axis Bank Rs. 691
4. Biocon Rs. 385
5. Glenmark Pharma Rs. 623
6. HDFC Bank Rs. 1399
7. ICICI Bank Rs. 594
8. Info Edge Rs. 4354
9. Kotak Mahindra Bank Rs. 1718
10. Larsen & Toubro Rs. 1385
11. Reliance Industries Rs. 1913
12. State Bank of India. Rs. 368
13. Tata Motors Rs. 326

One Share Of Each Of These Bluechip Companies Every Investor Should Hold

One Share Of Each Of These Bluechip Companies Every Investor Should Hold In His DP

The above stock list is suggested on the basis of the underlying value of assets being created by their subsidiaries which are likely to enter the capital market in the near future via the IPO Route.

Subsidiaries of the above listed bluechip companies that are expected to come up with the IPO are specified below:

1. Adani Wilmar
2. Aditya Birla AMC, Aditya Birla Life.
3. Axis AMC other subsis,
4. Biocon Biologics,
5. Glenmark Life Sciences
6. HDB Finance, HDFC Securities,
7. ICICI AMC
8. Policy Bazaar, Zomato
9. Kotak AMC, Kotak Securities,
10. L&T Defence Division & Other Subsis,
11. Various subsidiaries of Reliance Group including Reliance Retail
12. SBI General Insurance, SBI Capital Markets, YONO & others.
13. Tata Techno

Total investments in these 13 stocks estimates to be Rs. 15,160 based on the closing market price of May 12, 2021 (Wednesday). By investing Rs 15,160 your chances of getting allotment in the IPO’s of above mentioned list increases via shareholders quota.

This is recommended so on the basis of reserved category of subscriptions available to all continuously holding investors at the time of New IPO for their subsidiary companies as per the SEBI Listing Norms and Guidelines.The parent company has sole discretionary power to announce any shareholder quota for the existing shareholders of the parent company. Earlier companies to announce reserved portion for existing shareholders were HDFC Group for HDFC AMC IPO in 2018 and SBI in case of SBI Life Insurance Company Limited in the year 2017 and for SBI Cards and Payments Services Limited in the year 2020

So do try to buy and keep holding of at least 1 share of above mentioned shares in your demat account.

GoodReturns.in



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Akshaya Tritiya 2021: 3 Quick Ways To Buy Gold Via Payment Wallets

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Buying gold over Paytm

– Paytm offers gold buying via its Paytm Gold platform which is a simple, safe and transparent way to invest in 24K gold.

– Paytm’s 99.99% 24K pure gold is being offered from MMTC-PAMP i.e. accredited by the London Bullion Market Association (LBMA)

– Gold on Paytm can be bought for as less as Rs. 1 and maximum for Rs. 1,99,000. In grams selling of gold starts from 0.0005 gm.

– As per the FAQs on gold buying over Paytm, the live price at which you choose to buy gold will be valid for 7 minutes from the time when you click on the option to buy.

– For the payment mode, the wallet company accepts the following modes which include Paytm wallet, debit card, net banking, ATM card or any other payment mode as Paytm may make available on their platform

– After your buy order is accepted by MMTC-PAMP, you will receive and invoice and the said quantity will show in your Paytm Gold account under Locker balance.

– Storage: Customers can buy and store gold over the Paytm platform for a 5-year period from the purchase date. Storage charges shall be 0.04% per annum of your gold holding. Note if you continue to hold your gold with the payments company even after the custody period of 5 years, additional charges, as applicable at that point in time will apply.

– Redemption of gold from paytm:

When you redeem your gold positions, you need to give your bank account details including IFSC code and money will be credited within 72 hours into your account.

– Selling price on any given day is less than the buying price which as per the FAQs is the standard bullion industry and trade practice. This is also because some of the costs are involved including taxes, bank charges etc.

– For the delivery of gold to your address you should be holding gold of at least the value of coin you want to get delivered. Gold coin in denomination of 1,2, 5 or 10 gm are being delivered against your gold holdings in Paytm.

– Also redemption of Paytm gold can be done as jewellery as the payments company has tied up with various jeweler entities such as PC Jewellers, among others.

Buying Gold on PhonePe:

Buying Gold on PhonePe:

How to buy gold on PhonePe?

-For buying gold on PhonePe, go to the ‘My Money’ link on the menu bar below on the app.

– Now go to investment section, under which you will find ‘Gold’

-To start with your Gold Savings over PhonePe that is trusted by 60 lakh plus customers, you need to select one of the 2 providers i.e. MMTC-PAMP or Safegold. Both of them are offering 24Karat 99.99 percent pure gold.

-The real time price of gold being displayed for a gm for your gold purchase will remain valid for 5 minutes. And includes GST, custom duty etc. Also, the rates differ by the two providers owing to the difference in gold in terms of fineness.

– You can start your investment in gold at PhonePe for as less as Rs. 1 or 0.001 grams. For selling you need to have minimum gold of Rs.5. Also, you cannot buy and sell your gold holdings on the same day.

– For the payment mode, the wallets company is accepting BHIM UPI, debit card and credit card.

– Investor can invest in gold up to Rs. 2 lakh at any point. And beyond that you would need to fulfill KYC requirements.

– Digital PhonePe gold can be redeemed as coins or pendant starting from 1 gram. For the same, you will be charged both making and delivery charges.

Is buying digital gold an expensive and risky route?

Google Pay/GPay:

Google Pay/GPay:

How to buy Gold over G-Pay?

1. Open Google Pay

2. Under the Finance section, you will find the tab saying ‘Gold’ click there.

3. Then tap on the buy option. Here the live buying price for your purchase shall remain valid for 5 minutes.

4. Enter the amount of gold you want to buy or specify the amount (INR) for which you wish to buy gold.

5. Next tap on the check mark

6. Choose your preferred payment mode

7. Tap proceed to pay. Note after the transaction is completed successfully, the gold purchase should reflect in your locker within a few minutes.

Importantly, your Gold locker is linked to your SIM and phone number. In case you happen to change your phone number, G-Pay would verify your identity to enable you to access your account.

Features of gold purchased on GPay

• On G-Pay you can digitally buy and sell gold via MMTC-PAMP.

• MMTC-PAMP offers 24K 99.99% pure gold that is stored in a Gold Accumulation Plan (GAP)

• Herein MMTC-PAMP acts as a custodian and maintains your gold in the physical form as long as you own it.

• Your gold purchases via MMTC-PAMP are fully insured that ensures the security of your gold.

• There is no overall limit on the total value of gold you can buy over GPay. Nonetheless, the daily gold purchase limit is capped at maximum Rs. 50,000.

• Minimum purchase amount is Rs. 1. But GAP accounts that hold gold over Rs. 49,999 need to comply with KYC norms for making additional purchase.

• Note the buying price on GPay flashes in per milligram and includes tax or GST as applicable

GoodReturns.in



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Elon Musk | Bitcoin: What crypto insiders think about Elon Musk’s bitcoin U-turn, BFSI News, ET BFSI

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Cyptocurrency enthusiasts got a nasty shock Wednesday when Elon Musk, founder of Tesla Inc. and the second-richest person on the planet, announced on Twitter that his automaker wouldn’t accept payment in Bitcoin any more due to environmental concerns.

After all, this is the same man who just a few months earlier said Tesla bought into Bitcoin, to the tune of $1.5 billion. He tweeted “True” in response to a thread citing research that mining the token might actually spur the uptake of renewable energy, from Ark Investment Management LLC. Bitcoin mining is known to be energy-intensive, with the industry prizing cheap and plentiful power supplies.

Bitcoin slid as much as 15 per cent to nearly $46,000 before recovering. It was down 6.4 per cent at $51,039 as of 2:45 p.m. in Hong Kong.

Here’s what some people in the crypto industry have to say about the development:

New Highs Await?
“This may be the selloff that sets Bitcoin up for new all-time highs,” said David Grider of Fundstrat Global Advisors LLC. “We think the news is overblown and wouldn’t be surprised if Tesla is signaling plans to make crypto ‘greener.’” In a note Wednesday, Grider said Bitcoin has been consolidating for months as its market dominance has waned, but he’s still bullish, with a target of $100,000.

Seeking an Explanation
“The most logical answer is that he’s feeling pressure” from people who think “that one can’t be green and own crypto,” said investor Michael Terpin, calling that position “uninformed.”

“First, there’s virtually no energy expending in SENDING Bitcoin; and the mining of new coins to keep the network secure is still a far lower amount of energy (and 70 per cent of it from renewable sources) than the amount of energy expended to mine the world’s gold or power the global banking systems.”

Watching Other Cryptocurrencies
It wasn’t lost on some pundits that Musk might have his sights set on boosting a rival coin with a greener, perhaps even fluffier, profile. One of the most-liked replies on Twitter to Musk’s original statement was from Billy Markus, the co-creator of Dogecoin — the Shiba Inu-themed cryptocurrency that started as a joke in 2013. That token has become a favorite of Musk’s, and a darling among the retail set of investors and enthusiasts.

“If only there was a merge-mined cryptocurrency that had a much smaller carbon footprint than Bitcoin, and also had a dog on it,” Markus said.

Doesn’t Add Up
“Broadly it’s a bit surprising given Tesla bought Bitcoin for their treasury in January and the argument is the same whether you’re using Bitcoin as a store of value or for transactional purposes,” said Vijay Ayyar, head of Asia-Pacific at Luno Pte., in an email. “So it doesn’t add up. Usually in such cases there are unknown motives at play.”

It Can’t Be
For some, the reaction bordered on disbelief.

“Tell me your account got hacked without telling me your account got hacked,” said Yassine Elmandjra, crypto analyst at Ark, in a reply to Musk’s tweet.

Chance to Buy
“In retrospect, it was a great buying opportunity,” quipped longtime crypto enthusiast and co-founder of Gemini Trust Co. LLC, Cameron Winklevoss, on Twitter.



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Friction over newer compliances rising between auditors, regulators, firms, BFSI News, ET BFSI

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After banks and auditors opposed the introduction of joint audit norms, it’s the turn of the Securities and Exchange Board of India‘s recent rules on due diligence by alternative investment funds that are causing consternation.

The market regulator’s recent rules require alternative investment funds to conduct in-depth due diligence of their portfolio companies. According to the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2021, which came into effect on May 5, the regulator has mandated that fund managers conduct this due diligence to make sure their house is in order.

The regulations mainly impact the private equity and venture capital funds that are registered under the Alternative Investment Funds Categories 1 & 2 and hedge funds registered under the AIF Category 3 in India.

The fund managers and trustees will have to ensure that detailed policies and procedures are in place for investments and that provisions over confidentiality, conflict of interest, Prevention of Money Laundering Act (PMLA) and addressing investor complaints are complied with.

The PPM (private placement memorandum) will be required to check on the detailed policy and procedures as well as the compliance with the code of conduct prescribed under the newly added fourth schedule. The format for reporting requirements to Sebi and trustees could also undergo a change. The new regulations would likely require funds to share the report or the procedures with the auditors.

The due diligence will have to be undertaken at the fund level as well as the investment level.

Fund managers will also have to realign investments to comply with the new regulations, as Sebi has put a threshold on the money a fund can invest in a company or another investment vehicle.

The RBI regulations

On April 27, the RBI released new guidelines for statutory auditors of financial entities to enhance the independence of auditors and tackle concentration issues. The guidelines require mandatory rotation of auditors after three years with a six-year cooling-off period, and appointment of joint auditors in entities having asset size of Rs 15,000 crore and above.

The regulations ran into opposition from bankers and auditors who wanted it to be deferred citing less time to appoint auditors and crunch. The new guidelines have come in at the end of April. We have to evaluate how we can sort of look at appointing new auditors so quickly.

Because the RBI guidelines say that existing auditors cannot continue (auditing) if they have done three years. I think in the case of most companies (non-bank lenders), the auditors would have already done more than three years, probably done four years… So, I hope that RBI defers this applicability by year or so because the year has already started, and a lot of them would have to start looking around for new audit firms,” Keki Mistry, MD and Vice Chairman Keki Mistry had told ETCFO.

“Many challenges here if implemented from FY22. Some bank auditors have already finished three years — they will only have weeks to make a new selection. The pool available to choose from will be limited for FY22 and many potential suitors would be conflicted under the new one-year cooling-off period having done such non-audit services in FY21,” Grant Thornton Bharat CEO Vishesh Chandiok had said.

Audit trail software

Earlier this year, the Ministry of Corporate Affairs had to defer by a year amendments to the companies accounts rules requiring firms to use accounting software that include features that can record the audit trail of each transaction.

Companies and auditors had cited little time left for the fiscal to end for them to shift to another software.

The second amendment to the Companies Accounts Rules, 2014, made the previous changes effective from April 1, 2022, according to the notification. The ministry had made the changes, to be effective from the start of the current fiscal, with the objective of curbing backdated entries by firms in the books of accounts.

“…for the financial year commencing on or after the 1st day of April 2021, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled,” the amendment made on March 25 had said.



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PM-KISAN 8th Instalment: PM Modi To Release Financial Benefit On 14th May

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Planning

oi-Sneha Kulkarni

|

Prime Minister Shri Narendra Modi will release the eighth instalment of financial benefits under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme via video conference on May 14th at 11 a.m. More than Rs. 19,000 crores will be transferred to more than 9.5 crore farmer families as a result of this. During the event, the Prime Minister will interact with farmer-beneficiaries.

The Pradhan Mantri Kisan Samman Nidhi is a Central Sector Scheme that will provide income support to all landholding farmers’ families in the country to help them meet their financial needs for agricultural and allied inputs, as well as domestic needs.
On December 25, 2020, the scheme’s seventh instalment was released.

PM-KISAN 8th Instalment: PM Modi To Release Financial Benefit On 14th May

The PM-KISAN scheme provides eligible beneficiary farmer families with a yearly financial benefit of 6000 rupees, payable in three equal four-monthly instalments of 2,000 rupees each. The funds are transferred directly to the beneficiaries’ bank accounts.

Union minister Piyush Goyal announced the PM Kisan Samman Nidhi Yojana during the 2019 interim Union Budget. After going into effect in December 2019, the scheme has cost the government 75,000 crores per year.

The funds are transferred directly to the beneficiaries bank accounts. So far, over Rs. 1.15 lakh crores in Samman Rashi has been transferred to farmer families under this scheme.

The financial benefit under the scheme will be credited directly to beneficiaries’ bank accounts. Beneficiaries must provide their bank account details as well as their Aadhaar numbers in order for the financial benefit under the scheme to be credited directly to their bank accounts. If bank account information is not provided, no benefit can be given.

PM-Kisan Helpline No. 155261 / 011-24300606, 011-23381092



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Akshaya Tritiya 2021: Best Ways To Invest In Gold Online 2021

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Digital Gold

Digital gold is kept in vaults and stored online. You can buy gold digitally based on its weight or by specifying the amount of money you want to spend. The government-owned MMTC is issuing the Digital Gold in collaboration with PAMP of Switzerland, a global leader in bullion branding. PhonePe, Paytm, SafeGold, Google Pay, MobiKwik, and other mobile e-wallets, as well as online banking apps and websites, offer digital gold. You should take a close look at digital gold as an asset class. It’s not just about the allure of gold; it’s also about the security and protection that Digital Gold provides with minimal effort. These transactions can be used to sell digital gold and obtain liquid cash. Alternatively, you can get your money back by buying the gold you bought in physical form. Digital gold investment is treated similarly to physical gold ownership for all tax purposes. The amount of tax you must pay is determined by the holding period.

Gold ETFs

Gold ETFs

An exchange-traded fund (ETF) that tracks the domestic physical gold price is known as a gold-backed ETF. Gold-backed ETFs are financial instruments that are made up of paper or dematerialized units backed by physical gold. One gramme of physical gold is typically backed by one gold-backed ETF unit. These funds claim to be backed by gold that is 99.5 percent pure, there is less concern about gold purity than in other contexts. Prices for gold-backed ETFs can be found on the NSE website, and they can be purchased or sold through a broker when trading takes place on the Stock Exchange. It’s worth noting that, unlike jewellery, gold-backed ETF units can be purchased and sold at the same price across the country.

Gold Mutual Funds

Gold Mutual Funds

Gold Mutual Funds are investment vehicles that invest primarily in gold ETFs and related assets. Although Gold Mutual Funds do not invest directly in physical gold, they do so indirectly through Gold ETFs. It’s just as simple to invest in gold funds as it is in mutual funds. One reason is that, unlike gold ETFs, gold funds do not require a demat account to invest. Plus, with a Systematic Investment Plan, you can divide the total investment amount into monthly instalments (SIP). You can take advantage of rupee cost averaging this way. You can structure your gold fund investments by investing in SIPs. To begin investing, you do not need a large sum of money. You can begin investing with as little as Rs 100 per month. As your income rises, you may want to consider increasing your investment.

Sovereign Gold Bonds

Sovereign Gold Bonds

SGBs are issued by the Indian government at various times. Investors can subscribe to SGBs at any time after the issue is announced. On allotment, investors can invest in gold bond certificates in denominations of 1 gram. They receive the value of gold at the time of redemption based on the simple average closing price for the previous three business days. During the term of the bond, the investors receive a fixed predetermined rate of interest. Whenever an SGB issue is launched, investors can apply directly or through bank branches, post offices, SCHIL, or authorized stock exchanges. The bonds are limited to 500 grams and can only be purchased by Indian residents or entities.

Comparison of Gold Investments

Comparison of Gold Investments

Comparison of Gold Investments

Gold Investment Minimum Investment (approximate price) Key Charges (Approx)
Physical Gold Rs 6,000 for a minimum 1 gm of gold
  • Design/Making Charges -10%
  • Bank Storage charges -3% to 4%
  • GST – 3% of purchase price
Digital Gold Rs 5,000 for a minimum 1 gm of gold
  • GST -3% of purchase price
  • Spread will be around 6%
Gold ETF Rs 5,000
  • Total costs of 0.5% to 1% annually
Gold Mutual Funds Starting at Rs 100
  • Total costs of 0.6% to 1.20% annually
Sovereign Gold Bonds Rs 5,000

Conclusion

Conclusion

Physical gold and digital gold investments are not recommended due to the various risks involved as well as the significantly high buy-sell spreads. If you plan to invest for a period of 5 years or longer, Sovereign Gold Bonds are the best option. Finally, these bonds are tax-free when redeemed at maturity, which is after eight years. If you only want to invest in gold for a short period of time, say less than three years, you can use Gold Mutual Funds or Gold ETFs, which have a lot of liquidity and availability.



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