Prajna Capital |
- What are the risks involved in investment of gold?
- How to save on tax for Retired Individuals?
- What are the factors that can influence gold prices?
| What are the risks involved in investment of gold? Posted: 07 May 2013 04:50 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
What are the risks involved in investment of gold?
1. It is not an essential commodity. You cannot eat gold. If prices go beyond a point, people will just not consume it. It is not air or water.
This is not great, but will force lenders / investors to discount the cashflow and arrive at a new price. If the company does well, dividends will increase, forcing the value to go up. Sadly in case of gold, I have to hope that there is a GREATER FOOL THEORY and I will be able to find him, so that I can sell. This is not easy.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
| How to save on tax for Retired Individuals? Posted: 07 May 2013 02:48 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Action Plan
Once you retire, your cash inflow dries up as you lose your primary source of income. So, you have to invariably rely on your pension and return from investments. In this backdrop, tax planning assumes great significance for the retired. Estimate your total income. If you are above 60, any income up to Rs 2.4 lakh is tax-exempt. For those above 80, a new tax slab has been introduced from this year—very senior citizen—under which income up to Rs 5 lakh is exempted from tax. If your total income is within the exempted limit and you are still paying tax deducted at source (TDS) on your investment (fresh and existing), furnish the respective declaration forms to the concerned sources for non-deduction of tax. Returns on investments, such as fixed deposits and bonds, among others, attract TDS. Suppose, your total income (interest) from FDs exceeds Rs 10,000 (at branch level) in a year, a TDS of 10.3 per cent would be applicable. To avoid paying this TDS, you need to submit Form 15G (if your age is less than 60) at the beginning of every financial year. If you are older than 60, you need to submit Form 15H. Where to invest? If you have just retired, don't rush to invest the retirement corpus (provident fund, gratuity or other accumulated benefits). You can invest the amount any time during the financial year in tax-saving instruments. Figure out the deficit between your expected income and expenses. Choose instruments which not only give you regular income to overcome this deficit, but are also tax-efficient. Till the time you plan your portfolio, park your money in liquid funds. Stagger non-tax-saving investments across maturities. If you have already retired and your total expected income is more than the tax-exempt limit, invest in tax-savings instruments (see Tax Savers for the Golden Years). Apart from reducing the tax outgo, you should also look at safety, interest rate, frequency of return and the duration of investment. Tax Savers For The Golden Years
A major part of your portfolio should comprise instruments which provide fixed and regular source of income. The Senior Citizens Savings Scheme (SCSS) is easily the best option here. It not only provides tax exemption under Section 80C, but also gives a high rate of return (9 per cent per annum). While the Monthly Income Scheme (MIS) provides regular monthly income, it doesn't come with tax exemption. On the other hand, a five-year Post Office Term Deposit provides tax exemption, but gives much lower returns (7.5 per cent p.a.). Corporate fixed deposit is another option which promises high returns, but carries higher risk. An ideal portfolio has a mix of equity instruments in it as well. Equity-linked savings schemes (ELSS) are a good option as they provide both exposure in equity and income in form of dividend, if you choose the dividend payout option. Also, an ELSS has a lock-in period of just three years and can be continued further. Dividend and returns from it are tax-free. Insurance. In most cases, a retired person may not need a life insurance cover as most of his financial liabilities would have been met. But, if you still intend to take one if you have dependents, go for a term cover. Avoid a long-term commitment through a unit-linked insurance plan (Ulip) or an endowment plan. Additional deduction. After investing in the abovementioned 80C instruments, which have an overall tax exemption limit of Rs 1 lakh, if you are still left with taxable income, you may consider long-term infrastructure bonds (LTIB), which provide deduction of up to Rs 20,000 under Sec 80CCF. LTIB have a lock-in of five and 10 years and return about 8 per cent p.a., which can be withdrawn every year. But the interest earned is taxable.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
| What are the factors that can influence gold prices? Posted: 06 May 2013 05:27 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Gold prices can be influenced by factors like investor demand, jewellery offtake, Geo Political Concerns, US Dollar movement against other currencies, Indian rupee movement against the US Dollar, Central banks diversifying into bullion or sale by central Bank & Gold Mine Production.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
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