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The Hon’ble Finance Minister presented the Union Budget 2020 on 1st February 2020, which has proposed specific changes to the present income tax rates, which will be applicable for the financial year 2020-21 and subsequently, Finance Act 2020 has also been enacted. However, the new tax rates carry certain caveats before the taxpayers can adopt the reduced rates. As such, both the existing & new tax rate structures will continue to co-exist. 

<p dir="ltr"><span id="docs-internal-guid-9a859db7-7fff-214b-eea0-4ebc228a88fa">Don&rsquo;t let this be a singular moment in time. I think it&rsquo;s a lesson of a lifetime. You get to read about such situations only in books or get anecdotal references when someone talks about tough times. Having lived through this lockdown many of you will have a chance to build lives which use this experience as foundational base. Post this experience, like every moment in time we will get two paths going forward.

Mutual funds are steadily emerging as one of the most preferred investment products amongst the retail investors for the benefits they bring on the table, including professional fund management at lower costs, diversification, preferential taxation rates for equity funds, etc. However, it is crucial to stay committed to the investment philosophy at all times. 

<p dir="ltr"><span id="docs-internal-guid-89bd439b-7fff-a711-d50c-46b48a940124">The post-retirement phase of life is generally seen as &lsquo;the second innings&rsquo; wherein one intends to fulfil their dreams and aspirations, which could not be fulfilled earlier due to commitments. Post-retirement, it is natural that people have reduced income. So, it is paramount to plan well for retirement so that the pending dreams do not face financial constraints.&nbsp;</span></p>

A Systematic Withdrawal Plan (SWP) is an investor-friendly measure that allows the investors in mutual funds to withdraw funds periodically. As such, one may enjoy the benefits of wealth accumulated in the past through periodical redemptions. Thus, SWP aims to achieve precisely the opposite of what Systematic Investment Plans (SIP) offer.

When it comes to saving from different financial goals, one can choose from a wide range of investment options. Such options may include traditional investment products like Unit Linked Insurance Plan (ULIPs), endowment insurance policies, etc. With the evolution of the financial markets, mutual funds have emerged as an investment option for wealth accumulation and wealth creation. 

<p>Large cap mutual funds invest a minimum of 80% of their net assets in&nbsp;large-cap companies, generally referred to as&nbsp;blue-chip companies. Whereas,&nbsp;mid-cap companies&nbsp;must invest at least 65% of their net assets in mid-cap stocks.</p>

<p dir="ltr"><span>As the name suggests, an&nbsp;</span>overnight fund scheme&nbsp;is a fund that invests in overnight securities having a maturity of one day.&nbsp;Overnight mutual fund schemes&nbsp;are the fifth most popular category amongst the debt funds, after liquid funds, corporate bond fund, short-duration fund, and low duration fund. As of 31st March 2020, overnight funds schemes occupy around 8% share across the overall AUM (Assets Under Management) of open-ended debt schemes with AUM of Rs. 0.80 lakh crores.

In the purview of the COVID-19 pandemic outbreak, the world is currently facing several economic disruptions. However, the current lockdown situation brings the following seven positives with itself to help one set the financial management plans upright. 

<p dir="ltr"><span>It is said, &ldquo;</span>one should not keep all his eggs in one basket.&rdquo; While the equity markets have continued to stay volatile, the investors have started to focus on diversification across different asset classes. To further support the benefits of investing across various asset classes, CRISIL 10-year Gilt Index generated 14.55% returns during the year 2019-20, as against negative returns of 24.85% generated by Nifty 50 Total Return Index.&nbsp; Source: NSE India &amp; Crisil.com</p>