rediffGURU Vivek Lala answers your income tax and personal finance queries.
'They can transition from short to long-duration funds when the yield curve normalises.'
The Uttar Pradesh government, under Yogi Adityanath, is preparing a comprehensive plan to identify and act against infiltrators to strengthen internal security and ensure government schemes reach eligible beneficiaries.
Those who cannot bear significant downturns (as much as 40 per cent) or have a short horizon should exit entirely.
Ask rediffGURU and PF, MF and insurance expert Purshotam Lal your mutual fund, insurance and personal finance-related questions.
Fund managers of large-cap and equity-linked saving schemes (ELSS) have demonstrated a marked improvement in their performance over the past year, according to the latest SPIVA (S&P Indices Versus Active) report released by S&P Dow Jones Indices. In the one-year period ending June 2023, 17 per cent of active large-cap schemes outperformed the S&P BSE 100, compared to just 9 per cent at the end of June 2022. In the case of ELSS, there was a sharp improvement in performance, with 66 per cent of active schemes delivering better returns than the benchmark S&P BSE 200.
After a gap of more than three years, the central government has agreed to resume the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) works in West Bengal with immediate effect, but subject to mandatory adherence to stringent conditions. These include a prohibition on any work valued at more than 20 lakh, compulsory 100 per cent electronic know-your-customer (eKYC) verification of all workers, and mandatory pre-estimation field visits for all works before they are undertaken.
Several mutual funds (MFs) have recently approached the Reserve Bank of India (RBI) as they renew efforts to increase their overseas investment limit. In June 2022, the capital markets regulator Securities and Exchange Board of India (Sebi) permitted MFs to invest in foreign stocks within the aggregate mandated limit of $7 billion after a correction in stocks. One of the proposals shared with the RBI is to link MFs' foreign investment limit to the country's foreign exchange reserves.
The Ramanujan Fellowship is designed for brilliant Indian or Indian-origin scientists and engineers from outside India to undertake scientific research positions in India, as well as for those scientists and engineers who wish to return to India from abroad.
This comes a day after President Droupadi Murmu gave her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, which replaces the MGNREGA and has a provision for 125 days of wage employment for rural workers.
rediffGURU Vipul Bhavsar answers readers' personal income tax queries.
Find out which kind of mutual fund scheme you should invest in by taking into account your financial goals and investment time horizon.
Actively managed debt funds with the flexibility to go long on duration made a strong comeback on the returns chart in 2023, thanks to softening bond yields. The average one-year returns of floater, long-duration, gilt, and dynamic bond funds, which ranged between 2.3 per cent and 4.5 per cent at the end of 2022, now stand at over 7.2 per cent, with some schemes delivering over 8.5 per cent, according to data from Value Research. Debt fund returns are inversely related to yields of underlying investments, meaning a decline in yields is positive for funds.
'The watershed moment was June 22, 2024, when the divisional in-charge of Gadchiroli, Giridhar Tumreti, who was their senior-most commander, along with his wife, came forward to surrender before the then deputy chief minister and home minister Devendra Fadnavis.'
A bill to repeal the MGNREGA and introduce a new rural employment law, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin), has been circulated among Lok Sabha members.
Deutsche Asset Management (India) on Tuesday launched open-ended overseas fund of fund scheme - DWS Global Thematic Offshore Fund.
A buoyant equity market, coupled with an improved performance of mutual funds (MFs) on the returns chart, has heightened retail investors' appetite for equities. In the past few months, equity MF schemes have seen a surge in fresh investments through both lump sum (one-time investments) and systematic investment plan (SIP) routes. During the August-September 2023 period, equity MF schemes recorded net lump sum investments of Rs 35,270 crore, compared to just Rs 5,550 crore in the previous three months, according to data from the Association of Mutual Funds in India (Amfi).
'For most investors, I recommend a low double-digit allocation (10 to 12 per cent) to gold and silver combined.'
With stock markets getting into a buoyant mode, mutual funds are stepping up their draft filings with the regulator Sebi for new equity schemes.
The improving outlook for the power sector has caught the interest of dividend yield funds. In the first four months of the current financial year (2023-24, or FY24), five of the six largest dividend yield funds have shown a notable increase in their exposure to stocks within the power sector. Some have even introduced new stocks to their portfolios.
The Covid winter seems to be finally ending for debt-oriented mutual fund (MF) schemes as interest rates peak, especially for those that invest in shorter-maturity papers. In the past two months, shorter-horizon debt schemes - ultra-short, low-duration, and money-market - have together raked in net inflows of Rs 48,000 crore, the highest for two months since April-May 2021. These schemes invest in shorter-maturity papers ranging from three months to a year.
The reduction in the number of loan accounts and the outstanding amount during the last financial year is a cause of concern and stress for microfinance institutions (MFI), Secretary, Department of Financial Services, M Nagaraju said on Thursday, highlighting "inefficiency" in MFIs that leads to higher rates of interest.
The Assam government has introduced a bill to ban polygamy, proposing imprisonment for offenders while excluding Scheduled Tribes and Sixth Schedule areas from its purview.
'Investors don't have to worry about underperformance in passive funds, which earn market-equivalent returns.'
After United States President Donald Trump again raised the issue of alleged US funding of $21 million for voter turnout in India and 'kickbacks', the Bharatiya Janata Party has alleged that the money was used to sustain 'deep state assets' in India and demanded a probe into the matter.
'Equities may not outperform every year, but if they do so seven times out of 10, it's an asset class worth relying on.'
Investments in mutual funds gained traction in April, with the industry seeing an inflow of nearly Rs 1.86 lakh crore as investors parked their cash in fixed income schemes, seen as safe havens.
'In the last one year, we have added more than Rs 1.7 trillion, and we are on track.'
In a double-dose bid to boost growth and employment prospects, the Union Cabinet on Tuesday approved a Rs 2.07 trillion outlay for a research development and innovation (RDI) Scheme to fund private sector innovations, and an employment-linked incentive (ELI) to create over 35 million new jobs over the next two years.
The Supreme Court judges' filings revealed a generally conservative financial ethos, emphasising stability and long-term savings.
'Earnings growth will be the main driver of India's market in 2026, with profits expected to rise 9% to 10% in H2 FY26 and accelerate to 12% to 15% in FY27.'
Bihar Chief Minister Nitish Kumar announced free power up to 125 units for all domestic consumers in the state, effective from August 1. The move, benefiting 1.67 crore households, comes ahead of the upcoming assembly polls and amid promises from opposition leaders.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
Investors are yet to warm up to the concept of sustainable investing with sustainable or ESG (environmental, social, and governance) funds in India witnessing outflows of Rs 315 crore in 2021-22. This comes following a staggering inflow of Rs 4,884 crore in FY 2020-21. Prior to that, sustainable funds saw an infusion of over Rs 2,000 crore, according to data compiled by Morningstar India.
Investors who decide to enter medium to long-duration funds should be cognisant of the risk.
'Investors need to understand that these schemes may not do well in the market that is in a bull run, but quality stocks would protect the downside.'
'They are positioned as defensive products and can potentially give marginally higher returns than liquid funds.'
Nikunj Saraf, Vice President Choice Wealth, answers your mutual fund queries.
The Securities and Exchange Board of India, or Sebi, on Thursday said investors will not be allowed to exit close-ended mutual fund schemes before they mature and asked fund houses to list them on stock exchanges.
