One of the mysteries for an income taxpayer is how income tax department comes to know about high-value transactions? The answer is very simple, through Annual Information Return or AIR. Besides Annual Information Return, the information is also collected through TDS (Tax Deducted at Source), TCS (Tax Collected at Source) and various other sources. As the reader's on my blog keep posting this query to me so i thought of sharing a separate post on Annual Information Return or AIR. Though it is a no-brainer that it is mandatory to quote PAN for certain high-value transactions. One of the ... Read More
Debt Mutual Funds – 7 Hidden Risks
Till few years back i was quite bullish on Debt Mutual Funds. The Great Crash of Debt Mutual Funds in July 2013 shattered my faith in Debt Mutual Funds. The most impacted funds were Liquid Mutual Funds that are considered to be safest among all. Liquid funds invest in money market instruments. The lower maturity period makes them best investment option for short term. I regained my faith in Debt Mutual Funds and invested in Long Term Debt Mutual Funds. The last one year is also not good, especially for long-term/gilt debt mutual funds. We will discuss this later in detail. The 1 month return ... Read More
Harsh Reality of Negative Mutual Fund Returns
Negative Mutual Fund Returns is today's harsh reality. In past, i always cautioned my readers that it's a myth that Mutual Fund Returns cannot be negative. A market meltdown does not spare even the best managed mutual funds. I was quite disheartened to see some of the best names delivering negative returns on a y-o-y basis. The three months and six months Mutual Fund Returns are negative for almost all the mutual fund schemes. When i wrote a post, Why you should not invest in SIP? i received some sharp reactions in my mailbox. Mutual Funds are projected as safest bet to invest in equity market ... Read More
7 Steps to Select Right Mutual Fund
Selecting Right Mutual Fund is like selecting Right Life Partner. Any wrong decision can wipe out your personal wealth. What makes it more difficult is volatility in performance of mutual fund. Some people select Mutual Fund only on the basis on their rankings. In my post on Misleading Mutual Fund Ranking i highlighted disadvantages of same. I would like to ask my readers, if mutual fund rankings are 100% correct then all portals or financial advisers should suggest same set of mutual funds to their clients or readers. You will find large variation in the rankings of Mutual Funds. Second ... Read More
Misleading Mutual Fund Ranking
Mutual Fund Ranking is a big business. Many reputed Personal Finance Advisers and international rating agencies release Mutual Fund Ranking Periodically. Why it's a Business because these ratings can make or break the fortune of any Mutual Fund Scheme. Mutual Fund Ranking is predominantly decided based on past performance of 1 Year, 3 Year or 5 Year. There is no rocket science in this. I can also publish my own version of Mutual Fund Rating for my readers. As per SEBI guidelines it is always mentioned for equity linked products that "Past performance is not an indicator of future outcomes". ... Read More