Investment Lesson

I am not a cook, but watching people cook, especially in a contest, is surprisingly captivating. Have you ever wondered that in a multitude of these Masterchef type contests, there would be a set of amateur chefs who would be given the same type of "wonderful" ingredients, but each would make a significantly different dish out of them, which would then lead to either win or lose in their pursuit of being the best Masterchef.

For some, any talk of financial independence for women may conjure up thoughts of feminism. However, a closer look at the unique issues and circumstances that women typically face provides a compelling financial and economic logic for womenʼs financial independence. That is why it is so important for all people, especially women, to know why they need to be financially independent and how they can achieve financial independence.

The Reserve Bank of India's monetary policy committee today (April 08, 2022) voted unanimously to keep the repo rate and reverse repo rate unchanged at 4.00% & 3.35%, respectively. The policy stance remained accommodative, but the RBI added the guidance that it will focus on withdrawal of accommodation to keep inflation within target, which can be considered a signal of normalization. The monetary policy statement or the press release contained no mention of the calibrated or gradual withdrawal of accommodation which has punctuated the RBI policy since the ebbing of the pandemic.

The Monetary Policy Committee (MPC) conducted an off-cycle meeting between 2nd and 4th May 2022 to reassess the evolving inflation-growth dynamics post the April MPC meeting & took the following actions:

Income Tax laws in India provide several tax benefits and incentives to the taxpayers. Tax deduction under Section 80C of the Income Tax Act, 1961 is one of the most commonly used tax benefits. The section provides a deduction of up to Rs. 1.50 lakh to the taxpayers from their taxable income for making certain eligible payments and investment options.

Mutual funds have been steadily emerging as preferred investment options for retail investors and have become one of the attractive avenues to invest money. Such preferences arise from the convenience of investing in mutual funds and a wide range of mutual fund schemes investors may choose from. While investing in mutual funds is the primary step towards wealth creation, reaping the benefits of wealth created over time is equally crucial.

When investing in mutual funds, investors can invest under different options, such as growth option, payout of income distribution-cum-capital withdrawal option, income distribution-cum-capital withdrawal reinvestment option, etc. Each of these different options carries its respective pros and cons. This article aims to discuss each of these three options briefly to help the investors decide on choosing amongst these three options:

It is often said that investing is an art. One often thinks that the job of prudent financial planning is over by making regular savings. However, it is easier said than done since it is not only about saving but also saving and investing money in the right pockets. Markets today provide a wide range of investment options to investors across different asset classes. Still, one tends to go overweight in a single asset class, thereby creating a skewed investment portfolio.

Mutual funds are investment products that create a portfolio of securities from the money invested by different investors. The investors can invest in mutual funds by submitting the application form physically at any official Points of Acceptance, through the website/ mobile app of the mutual fund house, or digital options provided by Registrar & Transfer Agents or any other online aggregator’s platform.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) voted unanimously to hike the repo rate by 50 bps to 4.90%. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65% from 4.15% and the marginal standing facility (MSF) rate to 5.15% from 4.65%. The MPC maintained its “withdrawal of accommodation” stance while dropping the phrase “staying accommodative”, signaling a shift towards “neutrality”. The Governor reiterated that further monetary measures will be needed suggesting further rate actions to move towards a positive real rate in near term.