Category: Personal Finance

Amount Of Gold You Can Hold Without Coming On Tax Radar

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How much gold can you hold?

There is no limit! Yes, that is right. There is no limit on the amount of gold jewellery or ornaments you can own as long as you can justify where they came from. According to tax experts, if you can justify the origins of your gold investment, you won’t have to worry. Even if the assessee’s premises are scanned, gold below this cap will not be confiscated.

  • A married woman can hold gold up to 500 grams of gold.
  • An unmarried woman can have up to 250 grams of gold.
  • A man can have up to 100 grams of gold.
Individuals Gold
Married woman 500 grams
Unmarried woman 250 grams
Man 100 grams

There is no limit to the amount of jewellery you will own if you purchased it with already-taxed money or got it as an inheritance.

Section 132

Section 132

The Income Tax Act of 1961, Section 132, gives the Indian tax authorities the power to seize any unidentified jewellery, bullion, or valuable articles discovered during a search.

In a press release dated December 1, 2016, the Central Board of Direct Taxes (CBDT) stated that there is no cap on keeping gold jewellery if the source of investment or inheritance can be clarified.

The taxman, on the other hand, has the right to check or challenge the source of gold kept at a residence or in a bank locker.

Income tax officers are not permitted to seize any gold jewellery within the limits specified in the circular, regardless of the person raided’s socioeconomic status or level of living.

It is worth noting that the circular only applies to gold ornaments and jewellery and, by implication, does not apply to gold coins, gold bars, or diamond or other jewellery.

What proof is valid?

What proof is valid?

The invoice you get from your jeweller when you buy gold is the best evidence of your investment. If the gold was inherited or given to you, you must request a copy of the “Will” or some other family settlement agreement, gift deed, or receipt in the name of the individual who gave it to you.

If no such record is available, the officer may consider your family’s social standing, customs, and traditions in order to determine whether or not your argument is true.

So, if you bought the jewellery with your tax money, there is no need to be concerned if you can prove the source of funds used to purchase it

It is highly recommended that you keep all transaction invoices. If the jewellery you purchased was traded for something else, it’s a good idea to keep all of the invoices for labour costs, as well as the initial purchase invoice.

The jewellery does not have to be purchased with cheques or credit/debit cards; it can also be purchased with cash. However, income tax laws prohibit any cash purchase of more than Rs. 2 lakhs.



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You May Not Get Tax Deduction Benefit Even If You Invest In ELSS By March 31, 2021: Here’s Why?

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Personal Finance

oi-Roshni Agarwal

|

Other than facilitating wealth generation, ELSS or equity linked savings saving are popular among individuals for their tax deduction benefit extended as part of Section 80C. But now even if you make the investment under the avenue by March 31, 2021, you may or may not get 80C tax advantage. Here’s detailed the reason in lieu of it:

Unit Allotment Rule In Mutual funds

Now the whole issue lies behind this new ‘unit allotment rule’ in mutual funds that came into force from February 1, 2021.

You May Not Get Tax Deduction Even If You Invest In ELSS By March 31, 2021

As per this new unit allotment rule, MFs have been directed to issue units only after they receive subscription money from investors in their respective Scheme collection account. And for this reason investors have been allotted units of the mutual fund at different dates and at different NAV depending on the bank from which they are making the payment towards mutual fund subscription.

Now to get the tax deduction benefit for your investment in ELSS against the FY 2020-21, you need to ensure that your bank transfers the money to the chosen mutual fund by at max March 31, 2021, this is any payment post this date to the mutual fund shall imply this investment to be a tax saving investment for the next fiscal year 2021-22.

As an example: Say for the Parag Parikh Tax saver fund payment made via these 4 banks namely Axis Bank, HDFC Bank, ICICI Bank and SBI reaches the mutual funds’ collection account in real time. So investor has the flexibility to invest in the scheme near to the cut off time of 3 pm as on March 31, 2021, if the need be. For payment made before 3 pm from any other bank other than these specified banks, payment to the collection account shall be remitted in T+1 day. And in case the payment is made after 3 pm, it shall reach the mutual fund on T+2 day i.e. the second working day.

If the payment is effected via UPI assuming that you make the payment before 3 pm, money shall reach the fund house on the next working day i.e. T+1. This is irrespective of the account from which the payment is made.

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Top 10 Public Sector Banks Providing Higher Interest Rates On Savings Accounts

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Investment

oi-Vipul Das

|

A savings account is a deposit account that generates interest that is deposited at a bank or other financial institution. Despite the fact that these accounts usually carry a low interest rate, their stability and dependability make them an excellent choice for holding capital for emergency needs. Unlike bank fixed deposits, which can incur a huge penalty if you withdraw your funds early, your access to funds in a savings account will remain incredibly liquid. Interest rates on savings bank accounts are typically lower than those with fixed deposits. Savings accounts at public sector banks pay significantly lower interest rates than those provided by many private and small finance banks. It’s crucial to consider how much interest banks offer for keeping the capital in a savings account before opening one no matter which bank it is.

Top 10 Public Sector Banks Providing Higher Interest Rates On Savings Accounts

Tax benefits on savings accounts

The primary goal of opening a savings account is to safeguard our capital. A savings account requires you to put aside a portion of your regular salary to cover it from unexpected circumstances. The interest earned on deposits is the most important reason why people open a savings account. Interest is calculated in subject to the amount of money deposited in the account. This interest rate fluctuates in a timely manner. Interest earned from a savings account is taxable under the category of “Income from other sources.” Furthermore, Section 80TTA allows a deduction of up to Rs 10,000 on interest earned, which means that interest received in excess of Rs 10,000 is subject to taxation. To know how to save tax on savings accounts, click here.

Minimum and maximum deposit limit

The minimum balance threshold in public sector banks’ savings accounts ranges from Rs 250 for rural accounts with cheque books and Rs 100 for accounts without cheque books at Union Bank of India. With a minimum deposit cap of Rs 500, Union Bank of India is followed by IDBI Bank, Punjab National Bank, and so on. Since public sector banks are supported by the government of India and are more active in approaching out along with lower and middle class customers with their offerings, this is maintained much lower than the criteria of leading private banks and small finance banks of India. The minimum balance limit for Axis Bank and HDFC Bank is Rs 2,500 to Rs 10,000. The minimum balance threshold for ICICI Bank is Rs 1,000 to Rs 10,000, while it is Rs 5000 for Bandhan Bank. The minimum quarterly average balance of the savings account is Rs. 5,000 for DCB Bank branches in Tier 1 cities and Rs. 2500 for DCB Bank branches in Tier 2.

Savings Accounts Interest Rates

IDBI Bank and Punjab National Bank currently provide interest rates on savings accounts of up to 3.5 percent, followed by Bank of Baroda and Canara Bank with interest rates of up to 3.2 percent among the top list of public sector banks. As opposed to what leading private banks provide, these interest rates are attractive. HDFC Bank, Axis Bank, and ICICI Bank, for example, deliver 3 to 3.5 percent rate only. Large public sector banks, on the other hand, offer even lower interest rates on savings accounts. The State Bank of India (SBI), for example provides only 2.7% interest rate on its savings account. In comparison to public sector banks, small finance banks give higher interest rates to their savings account holders. Jana Small Finance Bank, for example, provides interest rates of up to 7.5 percent, while Equitas Small Finance Bank offers interest rates of up to 7.25 percent which are much higher than the interest rates provided on fixed deposits of leading public and private sector banks. Hence, below we have compiled the top 10 public sector banks which are currently providing the highest rates on savings accounts.

Banks ROI in % per annum Minimum balance limit
IDBI Bank 3 to 3.5 Rs 500 to Rs 5000
Punjab National Bank 3 to 3.5 Rs 500 to Rs 2000
Canara Bank 2.9 to 3.2 Rs 500 to Rs 1000
Bank of Baroda 2.75 to 3.2 Rs 500 to Rs 2000
Punjab & Sind Bank 3.1 Rs 500 to Rs 1000
Indian Overseas Bank 3.05 Rs 500 to Rs 1000
Union Bank of India 3 Rs 250 to Rs 1000
Central Bank of India 2.75 to 2.9 Rs 500 to Rs 2000
Bank of India 2.9 Rs 500 to Rs 1000
Indian Bank 2.9 Rs 500 to Rs 2500



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5 Consequences That You May Face If You Do Not File ITR For FY20 By March 31,2021

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Taxes

oi-Roshni Agarwal

|

For the financial year 2019-20 for which the assessment year remains as 2020-21, the government in view of the pandemic extended the due date to file ITR to January 10, 2021 for non-audit cases and February 15, 2021 for audit cases. And now if you missed the due date for some or the other reason, you have time until March 31 to file your return of income (belated) by paying some penalty amount and interest.

Consequences That You May Face If You Do Not File ITR For FY20 By March 31,2021

5 Consequences That You May Face If You Do Not File ITR For FY20 By March 31,2021

And now if you do not adhere to this timeline also for filing your ITR for financial year 2019-20, you will have to confront serious consequences:

1. You will not be able to file return post March 31, 2021 for Fy 2019-20:

This is because such return of income not filed until March 31, 2021 shall be deemed as time barred return and the income tax does not has any provision that allows filing of time barred returns.

2. May receive income tax notice if you fall in the taxable slab:

The department of income tax may send such a taxpayer a notice if he or she does not files the return for the said assessment year but has taxable income. And for the due taxes, the penalty to the tune of 50-200% of the due taxes is payable together with interest at the rate of 1 percent per month for the period of delay.

3. If the motive of non-filing ITR is seen to be tax evasion, the consequence shall still be severe:

Prosecution under section 276CC of the Income tax Act can be initiated against such defaulting taxpayers who may be subjected to harsh imprisonment of not less than 3 months and extendable up to 2 years together with fine implications.

Further in a case the tax evasion amounts to over Rs. 25 lakh then in such a case imprisonment term could be in the range of 6 months to 7 years together with a fine. Nonetheless in the evaded amount is up to Rs. 10000 then no such prosecution can be undertaken.

4. Condonation of such delay in filing return due to some genuine reason:

As per section 119(2)(b) of the Income Tax Act 1961 the authoritation body has the right to accept any application or request for any exemption, deduction or such other relief even after the expiry of the period given under the IT Act. And when the reason for not filing the ITR is genuine then by providing relevant supporting documents, the taxpayer can apply for condonation relief.

5. Other than the above some additional implications become applicable if return is not filed by the due date:

Late filing fee of Rs. 10000 will apply, but where the income is Rs. 500000, the penalty amount will be limited to Rs. 1000.

As the return filing is done beyond the due date, the taxpayer will also lose on some of the deductions and/or the provision of set off or carry forward of losses (besides house property loss)

Interest under section 234A of the Income tax Act would apply at the rate of 1 percent per month or part of the month for the tax amount that remains to be paid.

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5 Best 3-Year FDs For Non-Senior Citizens With Good Returns Up To 6.75%

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Investment

oi-Vipul Das

|

A fixed deposit is a financial tool issued by banks or non-banking financial companies (NBFCs) that offers investors a higher rate of interest than a standard savings account. The interest rate on fixed deposits provided by banks and non-banking financial institutions is determined by factors such as the deposit amount, tenure, and type of depositor i.e. a senior citizen or a regular one. Fixed deposit rates for non-senior citizens vary from 5.25 percent to 6.5 percent for a period of three-years and are offered by India’s leading public and private sector banks as of now. Senior citizens over the age of 60 can also open a fixed deposit account for a tenure of 3-years. The rate of interest on senior citizens’ FD schemes is 0.25 percent to 0.75 percent higher than a regular fixed deposit. Jana Small Finance Bank currently offers the highest FD rate of 7.5 percent for a three-year term. On the other hand, public and private sector banks’ 3-year FD rates for senior citizens range from 5.75 percent to 7% respectively. Hence, here we have compiled the 5 best public and private sector banks that are currently providing the highest returns on 3-year FDs for non-senior citizens.

5 Best 3-Year FDs For Non-Senior Citizens With Good Returns Up To 6.75%

Tax benefits on fixed deposits

Fixed Deposits are regarded as among the most satisfied and safe investment options after post office small savings schemes, and recurring deposits. To get a tax benefit, though, you must invest in a fixed deposit scheme for at least 5 years, which is the standard lock-in duration. This 5-year deposit is also termed as ‘Tax-saving FDs (fixed deposits) which allows an investor to claim a tax deduction of a maximum of Rs. 1.50 Lakh. Individuals, senior citizens, non-resident Indians, and members of HUF (Hindu Undivided Family) can all benefit from the tax deduction for fixed deposits under section 80C. Premature or partial withdrawals from tax saver fixed deposits are not permitted due to the 5-year lock-in duration. Aside from these shortcomings, a loan facility is also not applicable against these tax-saving fixed deposits. The interest you receive on fixed deposits is effectively added to your overall annual income. The resulting amount is then considered to evaluate which tax bracket you fall into. The term TDS refers to tax deducted at source. If the returns exceed certain threshold limits, any organization or entity making the payment is entitled under the Income Tax Act to subtract tax at source. The bank, on the other hand, only deducts TDS if your fixed deposit returns surpass Rs 40,000 (Rs 50,000 for senior citizens) per year. If your fixed deposit returns surpass Rs 40,000 or Rs 50,000 and you furnish the bank with your PAN, the bank will subtract 10% TDS. If you do not submit your PAN to the bank, the bank will subtract 20% of your fixed deposit income as TDS. When the overall income is less than the required taxable amount, no TDS is deducted. If you submit Form 15G or 15H to receive interest income without TDS, the bank will not subtract TDS. To prevent the headache of additional TDS deduction and resulting refund from the Income Tax Department, Form 15G (for non-senior citizens) and 15H (for senior citizens) should probably be submitted at the beginning of each fiscal year.

Deposit insurance cover on fixed deposit

The Reserve Bank of India (RBI) raised the bank deposit insurance cover from Rs 1 lakh to Rs 5 lakh last year. Deposit insurance is a form of insurance against defaults on bank deposits if a bank goes bankrupt and is unable to repay its investors. The RBI’s Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary, provides deposit insurance benefit. Except for corporates, the deposit insurance scheme includes all banks operating in India, including the private sector, cooperative, and small finance banks. The DICGC insures bank deposits including those maintained in a depositor’s savings account, current account, recurring deposit, bank fixed deposit, and so on. The Rs 5 lakh limit covers both the principal invested and the interest received.

5 Best 3-Year Fixed Deposits For Non-Senior Citizens

Private Sector Banks ROI in %
DCB Bank 6.75
RBL Bank 6.6
Yes Bank 6.5
IndusInd Bank 6.5
Bandhan Bank 5.75
Public Sector Banks ROI in %
Union Bank 5.5
Canara Bank 5.4
Bank of India 5.3
Punjab & Sind Bank 5.25
State Bank of India 5.1
Source: Bank website



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Benchmark indices rebound after 2 days of consecutive losses; Financials outperform, BFSI News, ET BFSI

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The market opened on a positive note following the positive global markets on Friday. US GDP data and a decline in the unemployment claims boosted market sentiments. After falling for two consecutive days, Sensex and Nifty moved higher on Friday with Sensex ending above 49,000 while Nifty 50 zoomed to cross 14,500 today.

The Nifty Bank Index ended higher at 33,318 adding 0.94%. Amongst the top gainers were- HDFC Bank at Rs 1491 adding 1.91% followed by PNB at Rs 36 (1.41%), ICICI Bank at Rs 578 (1.22%), IDFC First Bank at Rs 57 (0.87%), SBI at Rs 357 (0.56%). Axis Bank at Rs 698 (0.52%). while all major indices ended on a positive note, Induslnd Bank and Bandhan bank ended red.

Nifty Financial Services ended higher at 15,717 adding over 1.57%. Amongst the biggest gainers were Bajaj Finserv at Rs 9,467 adding over 4.53% followed by Chola Invest. at Rs 554 (3.19%) HDFC at Rs 2,532 (2.51%), Bajaj Finance at Rs 5,183 (1.19%), Indiabulls Hsg at Rs 197 (1.20%).

Other key takeaways

SEBI’s new rules on startups, delisting, ESG and more
The SEBI has approved a raft of measures including more transparent and efficient delisting of shares, reporting of sustainability issues by companies and provisions to make it easier for startups to go public.

In its board meeting on March 25, the market regulator also mandated public disclosure of analyst calls, quick reporting of earnings, and expanded the requirement of setting up a Risk Management Committee to the top 1,000 listed companies by market capitalisation from the existing to 500 listed entities

Suryoday Small Finance Bank debuts at 4% discount to issue price
Suryoday Small Finance Bank share price started off the first day of trading at a 4.2 percent discount at Rs 292 on March 26 on the National Stock Exchange, amid weak market conditions and muted subscription to IPO.

The Rs 582.34 crore public issue was subscribed 2.37 times during March 17-19, the lowest subscription amongst IPOs closed in 2021. The stock opened at Rs 293 on the BSE, down by 3.93 percent compared to issue price of Rs 305.

Market on Thursday
It was the second successive day of losses for the Indian market on March 25 amid unsupportive global cues and selling across sectors on the F&O expiry day. At close, the Sensex was down 1.51%, at 48,440.12 and the Nifty was down 1.54%, at 14,324.90. Nifty PSU Bank, FMCG, auto, infra, IT and energy indices declined 2-3 percent. Broader markets mirrored the benchmarks, as BSE midcap and smallcap indices fell 1.8-2.2%.

Stocks rebound in late-day rally on Wall Street
US stocks rose in a late-day rally on Thursday as investors bought stocks likely to do well in the recovery and picked up beaten-down Apple and Tesla shares in anticipation that the US economy grows at its fastest pace in decades this year.

The Dow Jones Industrial Average rose 199.42 points, or 0.62%, to 32,619.48. The S&P 500 gained 20.38 points, or 0.52%, to 3,909.52 and the Nasdaq Composite added 15.79 points, or 0.12%, to 12,977.68.



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Check The New Penalty Rule For Not Linking PAN With Aadhaar Before March 31

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Planning

oi-Vipul Das

|

The deadline to link your Aadhaar and your PAN (permanent account number) is March 31. Your PAN will become void if you do not comply. The government has placed an amendment in the Finance Bill, 2021, approved by the Lok Sabha on Tuesday, under which individuals will be responsible for paying a late fee of up to Rs1,000 if their PAN is not linked to their Aadhaar number. A new Section 234H of the Finance Bill (Lok Sabha) has been introduced to charge a fee for failure to specify the Aadhaar number in ITR. If an individual fails to link his or her PAN and Aadhaar by March 31, he will be charged a fee of Rs 1,000. This charge is in addition to the other repercussions that a person will face if their PAN becomes inactive due to not being linked with Aadhaar. The government has previously granted several extensions to enable citizens to link their Aadhaar and PAN numbers, so now is the best time to do so before the March 31 deadline. Section 139AA of the Income Tax Act allows anyone who is eligible for Aadhaar to include their Aadhaar number in their income tax return and application for PAN allotment. Apart from that, anyone who has been issued a PAN as of July 1, 2017 and is entitled to seek an Aadhaar number must link his PAN to the Aadhaar number.

Check The New Penalty Rule For Not Linking PAN With Aadhaar Before March 31

If an individual does not comply, his or her PAN card will become invalid after March 31, 2021. A permanent account number (PAN) will become unserviceable under Income Tax Rule 114AAA if an individual who has been issued a PAN as of the 1st day of July, 2017 and is needed to intimate his Aadhaar number under section 139AA(2) fails to do so on or before the 31st day of March, 2021, the PAN of such individual will become inoperative immediately after the said date for the purpose of taxation. If an individual fails to provide a PAN or provides an inoperative PAN, he or she may be required to pay a higher TDS (tax deducted at source), may be unable to file a tax return, and may face the repercussions of not filing the tax return under various provisions of the Income Tax Act. As a consequence, if a person fails to file his or her ITR by the due date, he or she can file a late ITR on or before March 31, 2021 by paying late fees or penalties. The Income Tax Authority, under section 119(2)(b) of the Income Tax Act 1961, has the discretion to approve any submission or application for any allowance, deduction, refund, or other benefit even after the time stated in the IT Act has expired.

How To Link PAN With Aadhaar Card Online?

Thus, if a taxpayer struggles to file his ITR for AY 2020-21 by March 31, 2021, for any legitimate reason, he or she can notify the Income Tax Authority for a delay after documenting adequate and fair reason. However, it should be remembered that this is a statutory right delegated to the tax department, and exemption can be granted on a particular circumstance level. There are also certain additional repercussions for not filing ITR by the due date, which may be imposed on the taxpayer if he or she files ITR after seeking permission under section 119 of the IT Act, only if the Income Tax Authority exempts the taxpayer under section 119 of the IT Act. Late filing fees of Rs 10,000, for example, if the taxpayer’s gross income is less than Rs 5 lakh, late penalties are reduced to Rs 1,000, and additional interest is levied at 1% a month or part of a month for any tax that remains outstanding under Section 234A of the IT Act. Hence, if you haven’t filed your ITR for FY20 and have not linked your PAN with Aadhaar yet, you should do so immediately before the stated deadline.



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List Of Banks Providing The Cheapest Rates On Gold Loans

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Things to know before applying for a gold loan

  • When you apply for a gold loan, you must carry your gold ornaments with you in order to pledge it as a security against your loan.
  • When applying for a gold loan, you will need Aadhaar or PAN as proof of identity, utility bills as a proof of address, income proof and passport size photographs.
  • Banks have different minimum and maximum loan amounts. Similarly, gold loan terms range from three to 36 months depending on the bank.
  • Most of the banks charge up to 1.5 percent of the loan amount for processing fees plus GST, which you must pay before the loan is allocated. In addition to processing fees, banks charge valuation fees.
  • Your first option should be a public sector bank because interest rates are cheaper than that of private sector banks and non-banking financial companies (NBFCs).
  • The purity of the gold is examined by the lenders. The market price of your gold ornaments is then determined based on the gold rate on the day of the loan approval. You will get up to 90% of the value of the gold vowed. When you pledge gold ornaments, the lender only considers the gold portions when measuring the value; other metals, stones, and gems are not included. Foreclosure is authorized by banks. When an account is closed within three months, banks charge a nominal closure fee of up to 2% plus GST as foreclosure charges.
  • If you don’t pay back the loan on or before the deadline, the bank will deliver you an alert and charge you a late payment fee as a penalty. Over and above the applicable rate of interest, most banks impose penalty fees of up to 2% a year. If you do not pay back the loan despite repeated reminders, the bank can acquire and sell your pledged gold to reclaim the unpaid balance. Your credit history will suffer as a result of this.

How to claim tax benefits on gold loan?

How to claim tax benefits on gold loan?

  • Under the guidelines of the Income Tax Act of 1961, you can receive tax benefits on loans such as a home loan. For a gold loan, though, this is not the truth. The tax incentives you will get from this loan choice are determined by how you use the loan amount. You will get tax benefits on your gold loan in a variety of ways, such as:
  • If you need to cover major maintenance costs or make upgrades to meet shifting standards of your home, the necessary funds could be important. To cover these costs, you can take out a loan on your gold assets and thereby benefit from tax relief on gold loans. You can claim a tax benefit on a loan for home renovation under Section 80C of the Income Tax Act of 1961. This exemption is limited to Rs. 1.5 lakh a year and relates to the principal amount.
  • If the property you purchase or establish is self-occupied, you can assert a tax deduction of up to Rs. 2 lakh in a financial year under Section 24 of the Income Tax Act, 1961. If the residential property is rented, you can deduct the whole amount of interest accrued in the fiscal year from your tax liability.
  • You can also use a gold loan to get tax advantages on assets other than property investment. That being said, when you sell those securities within the fiscal year, the stated advantage falls in. You must add the interest charged on such a loan as part of the worth of acquisition to qualify for this advantage. You can reduce the capital gains tax that you have to pay by doing so.

Factors that impact gold loan interest rates

Factors that impact gold loan interest rates

To select the best Gold Loan interest rates for you, you must first understand the factors that influence gold loan rates.

Loan amount: As you might be aware, the loan amount is determined by the total gold value pledged by you. The gold loan amount is usually between 65 and 90 percent of the total gold value. The higher the loan amount, the higher the interest rate on a gold loan. Many lenders set interest rates based on the value of gold pledged by you the bank.

Purity of the gold: The maximum gold loan amount is determined by the quantity and nature of the gold articles. A bank-appointed valuer inspects the gold articles for consistency and quantity. Most banks will not recognise gold ornaments that are less than 18 karats.

Monthly income: Your repayment potential is calculated by your monthly income. If you don’t have any financial debt in the form of credit card or loan EMIs, a higher monthly salary may improve your repayment potential. Low gold loan interest rates can be obtained with a higher monthly income. Because of your high repayment potential, lenders will feel secure that you will be eligible to reimburse the loan on deadline. Most banks do not require borrowers to have proof of income. Banks, on the other hand, choose to loan to borrowers who have a steady income stream.

Credit score: One of the most significant variables that affects your interest rates is your credit rating. A high credit score means that an individual has a positive repayment history and is creditworthy. Credit score determines an applicant’s eligibility for unsecured loans, while credit score influences interest rates on gold loans. As a result, borrowers with strong credit scores of 700 or higher will get better interest rates than borrowers with poor credit ratings. Aside from that, keep in mind that when determining gold loan interest rates, lenders owe a spread, mark-up, and margin on the RLLR and MCLR.

Gold Loan Interest Rates

Gold Loan Interest Rates

We’ve curated here a compilation of gold loan interest rates presently being provided by some major banks for Rs 5 lakh gold loans taken for a three-year period to help you make knowledgeable choices.

Sr No. Banks ROI in % p.a.
1 Punjab & Sind Bank 7
2 Bank of India 7.35
3 State Bank of India 7.5
4 Canara Bank 7.65
5 Karnataka Bank 8.42
6 Indian Bank 8.5
7 UCO Bank 8.5
8 Federal Bank 8.5
9 Punjab National Bank 8.75
10 Union Bank 8.85
11 Jammu & Kashmir Bank 8.85
12 Bank of Baroda 9
13 Central Bank 9.05
14 Indian Overseas Bank 9.25
15 HDFC Bank 9.5
16 Dhanlaxmi Bank 9.7
17 Karur Vysya Bank 10.1
18 ICICI Bank 11
19 South Indian Bank 11.95
20 Axis Bank 12.5
Source: Bank Websites



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2 Buy Calls By HDFC Securities For Gains In The Near Term

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Investment

oi-Roshni Agarwal

|

Stock indices after plunging sharply for the last two days have regained their momentum on Friday, 1st day of April series and are trading higher with gains of more than 1.5 percent on the Nifty.

Next lower levels to be watched out on the Nifty are at around 14350-14300 in the next few session before showing another round of small upmove from the lows. Any pullback rally could find resistance around 14675-14750.

2 Buy Calls By HDFC Securities For Gains In The Near Term

Now given the market mood, here are 2 buy calls by HDFC Securities for gains in the near term:

1. Buy Sequent Scientific Ltd – Target price: Rs. 272

As per the weekly timeframe chart, the downward correction in the stock price of Sequent Scientific of the last 5 weeks seems to have completed. On Tuesday-Wednesday, the scrip saw sharp gains and settled higher. After a downtrend this pattern is suggestive of an attempt of upside breakout.

The weekly 10 period EMA is consistently providing support for the stock price and the latest upside movement has occurred from near this support around Rs. 225 levels. The momentum oscillator shows positive indication. Buying can be done in the stock of Sequent at a CMP of Rs. 248.05 and added more on dips down to Rs. 238 with a target of Rs. 272 in the next 3-4 weeks. Place a stop loss of Rs. 232.

2. Buy Balrampur Chini Mills – Target price:

Over the last few weeks, the prices of sugar stocks are seeing an uptrend. The losses of the previous week have been recouped as the stock is up by over 7%. Upmove from here could result in an upside breakout of the hurdle of Rs. 226 and that could pave way for more upside in the short term. Weekly 14 period RSI has turned higher from near 60 levels that indicates possibility of an upside momentum. With gains in the stock price, volume in the counter has also started to expand.

Buying in the stock can be initiated at levels of Rs. 218, add more on dips down to Rs. 210 and wait for the upside target of Rs. 240 in the next 3-4 weeks. Place a stop loss of Rs. 203.

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How Often Should You Check And Review Your Mutual Fund?

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How To Evaluate Mutual Fund Performance?

Rebalancing your portfolio of mutual funds helps you maintain your risk level so you need to have a proper asset mix in your portfolio.

Non Performers

The portfolio review helps you to identify investments in your portfolio that are not successful. You can see which investment does not work to re-equalize your portfolio and add investments to meet your requirements.

Benchmark Index

The performance of reciprocal funds compared to the benchmark index is simple and can be done directly by referring to the fund fact sheet. Investors should always strive to invest in funds with a positive alpha and their relative performance against this benchmark index is denoted as alpha.

Peer Funds

The performance of the scheme must also be compared to peer funds in the same category. Although the performance of the benchmark indicators may have shrunk due to exceptional movements within a stock group, the performance against the peer group can be a better index of the performance of the fund.

Expected Returns

It is recommended that the investment has to be consistent with its risk profile in the asset allocation of the mutual fund portfolio. Although you may have planned for an optimal portfolio of mutual funds in order to achieve your financial objectives in good time, the following results may not be as expected.

Things To Consider When Rebalancing Your Mutual Funds Portfolio

Things To Consider When Rebalancing Your Mutual Funds Portfolio

Revision of goals

Our financial objectives continue to change. Different factors lead an investor to change or add new factors to the existing list. For example, an investor wants to revisit his investments once in a while with the standard of living, inflation, and new financial dependents.

Broad diversification

It is necessary to expand your portfolio of mutual funds across sectors. Excessive diversification can result in inefficiency.

Long-term investments

Long-term investment needs to be patient. In their own way, every investment idea is unique.

Oversee short-term inconsistencies

In general, mutual funds are risky because markets can become volatile at all times. If the macroeconomic market trends affect an investor’s portfolio, due attention is required.

Underperforming funds

It is recommended that simple investors create a separate watch list of funds that underperform their benchmark or comparable peers. Look for improvement in performance over the next 2-3 quarters based on this list. A consistent underperformance over three to four quarters may indicate that the investment should be shifted to a better option.

Long Term Vs Short Term Mutual Funds

Long Term Vs Short Term Mutual Funds

There is no standard scenario as to how often your mutual fund investments should be reviewed or verified. However, yes, you must make it consistent on the basis of your portfolio and goals.

You should examine it once a year for your long-term objectives if you have invested in equity funds. You can review it more often when you get close to the goal. During the evaluation, check the performance of the fund, the AMC or a fund manager, peer performance, and how well the fund performs in different phases of the market.

You should review it more frequently when it comes to your short-term goals. You need to have a check of portfolio credit quality, country rate movements and funds performance e.g., if you have a short-term goal 2 years away and invested in a debt fund.

Conclusion

Conclusion

When it comes to mutual fund portfolio performance, there’s a distinction between looking at it and reviewing it. It is entirely up to you how many times you want to review your portfolio; what matters are the parameters under which you will assess your portfolio. Investors should review their portfolios at least once every six months or once per year.

The temptation to make unwarranted impulsive decisions may be enticed by frequent review and monitoring of mutual fund returns. Allowing a drop in NAVs to tempt you to stop SIPs or redeem units from a fund is a bad idea.

It’s important to resist the urge to look at the fund’s performance every time the market drops or rises dramatically. For an actively-managed equity scheme, patience is required, as the fund must produce returns in the portfolio over a period of 18 to 24 months.

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