The levy of retrospective tax on the UK's Cairn Energy Plc is a tale of bizarre twists and turns that saw its attached shares being sold in May 2018 amid the passing of the baton from a full-time finance minister to interim one and the talks at the highest level to resolve the dispute, to claims that levy of back taxes was a result of an investigation into Panama Papers leak. The government late last month refunded about Rs 7,900 crore it had collected from selling residual shares of the British firm in its erstwhile India unit, seizing dividend and withholding tax refunds, to settle an eight-year-old dispute that had tarred the country's reputation as an investment destination. But, this did not come about easily. For seven years, the establishment vehemently justified in courts and outside seeking of Rs 10,247 crore in back taxes plus interest and penalty from a firm that gave India its biggest onshore oil discovery.
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A non-compliance with FATCA entails 30 per cent withholding tax on certain US source payments.
Financial planning expert Vicky Mehta offers some valuable tips on mutual funds.
Will 2022 be a year of contrasting narratives -- one filled with caution and the other with continued optimism?
MF investors may not be able to support markets fall if selling intensifies
The performance is affected as bets on small- and mid-cap shares went wrong.
They used to be an avenue of mutual gains for investors in both good and bad times for years, but incurred heavy losses in 2008, when mutual funds became poorer by about Rs 1,50,000 core (Rs 1,500 billion) or about one-third of their total size.
The Indian mutual funds, hit hard by redemption pressure, have something to cheer with the government allowing navratnas and mini-ratnas to invest 30 per cent of their surplus funds in equity market through public sector mutual funds.
Indian market offers more than 3,000 mutual funds with all kind of names imaginable. This has both pros and cons. The good part is that you have mutual funds which can specifically suit your needs and risk profile. The bad part is that you have to be able to select the right one. Here's how,
Investors must factor in the risks borne by them, if they wish to aptly evaluate the profitability of their investments.
Move seen as countering fund houses' plan to sell life covers.
'People are doing a lot of trading.' 'Short-term euphoria can be seen.' 'Retail participation is best through MFs and PMS.'
The Securities and Exchange Board of India, in September 2012, had allowed fund houses to accept up to Rs 20,000 in cash per investor, per mutual fund in a financial year.
With interest rates showing signs of going up, long-term floating rate debt mutual funds are catching the fancy of risk-averse investors as it promises better return than even bank fixed deposits, analysts said in New Delhi.
'In the overall global portfolio, India's weighting has come down in the past seven months.'
You must buy stocks and mutual funds only with a long-term horizon if you want to make decent returns.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Investors redeem units worth Rs 2,000 crore in October.
In the last few years, unit-linked insurance plans (Ulips) have quietly become one of the largest players in the Indian stock market. With a total investment estimated at Rs 1.5 lakh crore to Rs 2 lakh crore, they are almost close to the investment made by equity mutual funds.
As an investment class, equity funds posted average returns of 93.50 per cent in 2003, much better than the 72.89 per cent recorded by the Sensex.
The Sensex comprises 30 large-cap stocks. So a rise in this index does not imply that all listed stocks have risen. The portfolio of the mutual fund may be totally different from the Sensex basket. It will declare its NAV purely on the basis of the performance of its own stock portfolio on that day.
V Ramesh, CEO, Prabhudas Lilladher Financial Services, believes that investors with a long-term investment horizon in mutual funds should not panic as they can still make profits irrespective of the stock market volatility.
A point to remember is that the entry load is waived, only if I go through the fund's official website. Purchases through any other website will attract the entire entry load.
This will allow investors the freedom of choice based on the services they get from a distributor.
'Investors need to find out how the FMP's assets are distributed and ensure the investments are in high-quality names.'
India's 32 mutual fund houses saw an erosion of over Rs 32,200 crore (Rs 322 billion) in their total asset under management last month, with a weak stock market robbing off some shine from their over Rs 5 trillion portfolio.
Investors' fascination for an 'out-of-the-ordinary' or 'fancy' investment avenue is baffling. There is an inexplicable urge in investors to add an unusual investment avenue to their portfolios. For example, a conventional diversified equity fund with an impressive long-term track record routinely gets the thumbs down. The reason being -- it's seen as a boring investment (whatever that means).
On Tuesday, Reserve Bank raised the overseas investment limit by mutual funds to $5 billion from $4 billion earlier. Sources said as even $4-billion limit is not exhausted, there was no rationale in keeping the cap on individual mutual funds.
The proposal was open for public comments till September 12, 2007. The mutual fund industry is divided over the proposal as one section feels that it will hit the distribution business hard, while others think it will promote online transactions.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
In a chat with Getahead readers on June 22, Dhruva Raj Chatterji research manager at iFAST Fundsupermart.com, AMFI registered mutual fund distributor, answered queries about contra and value mutual funds. For those who missed the chat here is the transcript.
Continued outflows amid moderation of domestic investments are a concern
Reliance Mutual Fund topped the AUM chart with its AUM in excess of Rs 660 billion, while ICICI Prudential Mutual Fund came second with an AUM of Rs 487 billion.
Managing 5-6 investments is easy. But when the number of investments increases significantly, the problem starts creeping in.
Loan taken for higher education from any other organisation or person will not qualify for claiming deduciton u/s 80E, says tax expert Vikas Gandhi.
