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Secure Your Investments with "Gilt Mutual Funds" Understanding Gilt Mutual Funds Gilt mutual funds, or government securities funds, invest exclusively in bonds issued by the central and state governments, providing a high-quality, credit risk-free portfolio with varied maturity periods. Mechanism of Gilt Funds When governments need funds, the Reserve Bank of India (RBI) arranges auctions to issue government securities (G-secs) with fixed tenures. Gilt funds participate in these auctions and trade G-secs in secondary markets based on their strategy and market outlook. Risk Factors in Gilt Funds While gilt funds eliminate credit risk due to government backing, they are exposed to interest rate risk. Rising interest rates can cause long-tenure government securities to fall in price, leading to potential losses. Ideal Investors for Gilt Funds Aggressive investors expecting a decline in interest rates over the next 9-12 months can benefit from capital appreciation. Conservative investors with a long-term horizon (seven years or more) may find gilt funds suitable for steady growth and compounding returns. Taxation of Gilt Funds Gilt funds are classified as debt funds for taxation purposes. For investors in the growth plan, taxes are levied only at the time of redemption. Before April 1, 2023, long-term capital gains from these funds were taxed at 20% with indexation benefits, while short-term gains were taxed at the applicable income tax slab rate. However, post April 1, 2023, all capital gains from gilt funds, irrespective of the holding period, are taxed at the investor’s income tax slab rate. This change impacts the net returns, especially for those in higher tax brackets. Invest in gilt mutual funds for a secure, potentially rewarding addition to your fixed-income portfolio. #GiltFunds #SecureInvesting #FixedIncome #InvestmentStrategy

In my last post I talked about Taxation on Debt products. But there are some debt funds that I haven’t talked about yet. So what are they? Let’s find out! The first in the list is Domestic Fund of Funds. This is basically a fund that invests in other mutual funds instead of directly in stocks or bonds. It’s a great way to diversify without selecting multiple funds yourself. 🎯 Next comes International Funds. These mutual funds invest in global markets, either directly or as funds of funds, giving you access to international opportunities. 🌍 And the 3rd type of Debt Funds is Commodity Mutual Funds As the name suggests, these funds invest in commodities like gold or oil, offering you a way to benefit from commodity price movements without owning physical assets. 💰 Now comes the big question- How are these taxed? Long-term holdings (more than 24 months): Your gains will be taxed at 12.5% without indexation. Short-term holdings (up to 24 months): Your gains will be taxed at your personal income tax slab rate. Simple enough? I hope so! If you still have any confusion about taxation on Equity or Debt products, please feel free to ask me. I’ll be more than happy to help! Learnt something new today? 🤩 Do share your thoughts & questions below! 👇 -------------------------------- In this series, I’m covering 30 Things you MUST know before investing in Mutual Funds. Check the link in comments to see more posts from the series. 👇 Pennywise™ India #MutualFunds #bePennywisewithAkshat

Money & Capital Market   In the Indian context, the money market and capital market are two distinct segments of the financial system. The money market deals with short-term debt instruments, usually with a maturity of up to one year. It includes instruments like Treasury Bills, commercial paper, Certificate of Deposit and call money.   1. Treasury Bills (T-Bills): Short-term government securities with maturities ranging from 91 days to one year.   2. Commercial Paper (CP): Unsecured money market instrument issued by corporations to raise short-term funds.   3. Certificate of Deposit (CD): Time deposit issued by banks with a specific maturity date, commonly ranging from 7 days to one year.   4. Call Money: Borrowing or lending of funds for one day.     On the other hand, the capital market focuses on long-term securities, where funds are raised for more extended periods, often beyond one year. The capital market consists of primary and secondary markets. The primary market involves the issuance of new securities, while the secondary market involves the buying and selling of existing securities, such as stocks and bonds.   1. Equity Shares: Represent ownership in a company and offer a share in its profits.   2. Debentures: Long-term debt instruments issued by corporations to raise funds, typically with a fixed interest rate.   3. Government Securities (G-Secs): Long-term bonds issued by the government to finance its fiscal activities.   In summary, the money market deals with short-term financing, while the capital market deals with long-term investment opportunities in India's financial landscape.   #JAIIB #banker  

***Fixed income instruments and types*** A fixed income instrument is a type of investment that pays regular, fixed interest payments until its maturity date, at which point the principal amount is also repaid to the investor. It's like lending money to an entity (like a government or a company) in exchange for steady income over time. *Example:- A government bond is a common fixed income instrument. If you buy a 10-year government bond for ₹1,000 with an annual interest rate of 5%, the government will pay you ₹50 every year for 10 years. At the end of the 10 years, you'll also get back your ₹1,000. There are several types of fixed income instruments, including: 1. Government Bonds:- These are issued by governments and are considered low-risk investments. Examples: U.S. Treasury bonds and Indian government bonds. 2. Corporate Bonds:- Issued by companies to raise capital. They typically offer higher interest rates than government bonds but come with higher risk. 3. Municipal Bonds:- Issued by state or local governments to fund public projects. They often have tax advantages. 4. Certificates of Deposit (CDs):- Offered by banks, CDs pay a fixed interest rate over a specified term. They are generally low-risk. 5. Treasury Bills (T-Bills):- Short-term government securities that mature in one year or less. They are sold at a discount and pay the face value at maturity. 6. Treasury Notes (T-Notes):- Medium-term government securities that mature in 2 to 10 years and pay interest every six months. 7. Savings Bonds:- Non-marketable securities issued by the government, often considered safe and good for small investors. 8. Agency Bonds:- Issued by government-affiliated organizations, like Fannie Mae in the U.S., and usually have higher yields than Treasuries. 9. Commercial Paper:- Short-term unsecured debt issued by corporations to finance short-term liabilities. 10. Preferred Stock:- Although technically equity, preferred stock pays fixed dividends and has characteristics similar to fixed income instruments. #Fixedincome #commercialpaper #fixedincomeinstruments #certificateofdeposit #bonds #typesofbonds #Governmentbonds #careerinfixedincome #earlycareer #investmentbanking #learningcapitalmarkets #easylearning

Explain the money market securities. mention the key securities that you have studied explain treasury bills in detail with their ongoing interest rates _Introduction The money market is a place of large institutions and the Government so manage their short term cash needs. _Meaning of Money Market Money market refers to the market where money and highly liquid marketable securities are bought and sold having a maturity period of one or less than one year. The money market constitutes a very important segment of the Indian financial system. _The highly liquid marketable securities are also called as money market instruments. Instruments of money market 1.Treasury bills 2.Government securities 3.Commercial paper 4.Certificates of deposit 5.Repurchase agreements etc. _Features of money Market. 1.High liquidity means an asset can be quickly converted to cash at or near market price 2.The important features in the money market are Fixed income securities yield guaranteed returns on investments. 3.These financial instruments are considered one of the most secure investment avenues available in the market. let us understand that an important instrument is #Treasury bills (T -Bills). _The Treasury Bill is a money market instrument issued by the Government of India. The bill is issued as a promissory note of repayment in the future. The purpose of a treasury note is to secure funds to meet the short-term fund requirements of the government. _It's a short term instrument less than one year. _It's a secure investment to invest in term maturity. _Minimum investment in T Bills is Rs.25,000/-. The government issued T Bills is in three formats with a specific interest rate. Interest rate on Treasury bills • 91 days = 6.71% • 182 days= 6.82% • 364 days= 6.84%.

When the government launched the Bharat Bond ETF in December 2019, it was hailed as a revolutionary step towards democratising the bond market By offering retail investors a predictable and secure investment option. Budget 2024, however, has left these same investors reeling. Backstory In the Union budget for 2023, the government removed the benefit of indexation and 20% tax rate for debt mutual funds held for 3 years or longer. Which means no indexation on any further issues of Bharat Bond ETF However, it ‘grandfathered’ or protected the investments made in Bharat Bond ETFs and other debt funds before April 2023. Tax hike The recent budget 2024 removed the benefit of indexation for investments made before 1 April 2023. The complete removal of indexation benefits (an adjustment to inflate cost price resulting in lower taxes) on debt funds has drastically increased the tax burden on investors, slashing the expected post-tax returns Read my story - https://lnkd.in/d3GcPjKf Neil Borate LiveMint

❓How to earn 𝗙𝗜𝗫𝗘𝗗 12 - 15% returns 𝗣𝗘𝗔𝗖𝗙𝗨𝗟𝗟𝗬 😇 Recently, I had the pleasure of speaking at Franklin Templeton India's Distributor Meet, where we had over 60 seasoned participants gathered to discuss one crucial topic — "𝗙𝗶𝘅𝗲𝗱 𝗜𝗻𝗰𝗼𝗺𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴" It's time to shake off the the myth that bonds and debt mutual funds are dull or low-yielding investments! If you're serious about making the most out of fixed income investments, Here are the key points you should know 👇🏻 🔹 𝑻𝒉𝒆 𝑷𝒐𝒘𝒆𝒓 𝒐𝒇 𝒕𝒉𝒆 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑹𝒂𝒕𝒆 𝑪𝒚𝒄𝒍𝒆 📉 Interest rates are a game changer for fixed income. When rates fall, bond prices surge. This means capital gains for investors who time the cycle right Even a small 0.5% drop can boost bond prices by 5%! This is key to transforming that expected 7-8% return into a 15-17% growth opportunity 🔹 𝑳𝒐𝒏𝒈𝒆𝒓 𝑴𝒂𝒕𝒖𝒓𝒊𝒕𝒚 𝑩𝒐𝒏𝒅𝒔 = 𝑮𝒓𝒆𝒂𝒕𝒆𝒓 𝑼𝒑𝒔𝒊𝒅𝒆 ⏳ Bonds with longer maturities (10-15 years) are highly sensitive to interest rate changes. When rates are cut, these longer bonds will outperform, offering significant capital appreciation potential 🔹 𝑮𝒍𝒐𝒃𝒂𝒍 𝑻𝒓𝒆𝒏𝒅𝒔 𝑷𝒍𝒂𝒚 𝒂 𝑹𝒐𝒍𝒆 🌍 With global inflation cooling and central banks beginning to ease interest rates, we’re on the cusp of a similar trend in India Repo rate cuts are expected, and when that happens, long-duration debt funds will see major price gains. This creates an excellent opportunity over the next 12-18 months 🔹 𝑫𝒊𝒗𝒆𝒓𝒔𝒊𝒇𝒚 𝒇𝒐𝒓 𝒕𝒉𝒆 𝑾𝒊𝒏 🎯 By creating multiple buckets with bonds across different maturities (5, 10, 15 years), investors can hedge risk and optimize returns during this evolving interest rate scenario Diversification is the key to smoother returns 🔹 𝑻𝒂𝒙 𝑩𝒆𝒏𝒆𝒇𝒊𝒕𝒔 𝒀𝒐𝒖 𝑺𝒉𝒐𝒖𝒍𝒅𝒏’𝒕 𝑶𝒗𝒆𝒓𝒍𝒐𝒐𝒌 💸 Listed bonds offer a lower 10% long-term capital gains tax, which makes them a standout choice over debt mutual funds for tax-conscious clients This is a pivotal time for fixed income investments Educating & making our clients aware on how they can use these strategies to earn equity-like returns with lower risk can help them navigate the interest rate cycle effectively What kind of Fixed Instruments you like to invest in ? Share your thoughts in the comments section 👇🏻 Follow Dhananjay Banthia, PhD for more such insightful posts #franklintempleton #fixedincome #debtfunds #distributormeet #financialeducation

Mutual Fund series SEBI (Securities and Exchange Board of India) categorizes mutual funds into several types based on their investment objectives, asset allocation, and risk profiles. Some common types include: 1. Equity Funds: These invest primarily in stocks or equities, aiming for long-term capital appreciation. 2. Debt Funds: These invest in fixed-income securities like government bonds, corporate bonds, and debentures, offering stable returns with lower risk. 3. Hybrid Funds: Also known as balanced funds, they invest in a mix of equities and debt instruments to balance risk and return. 4. Money Market Funds: These invest in short-term debt instruments like Treasury Bills, Commercial Papers, and Certificate of Deposits, providing liquidity and stability. 5. Index Funds: These replicate the performance of a specific market index like the Nifty or Sensex, aiming to match the returns of the index. 6. Sector Funds: These focus on specific sectors like IT, healthcare, or banking, offering investors exposure to particular industries. 7. ELSS (Equity Linked Savings Schemes): These are tax-saving mutual funds that invest primarily in equities and offer tax benefits under Section 80C of the Income Tax Act. These are just a few examples, and there are many other types of mutual funds available in India catering to different investor preferences and goals. Simplified Explanations of different types of mutual funds: 1. **Stock Funds**: These invest in stocks, aiming for long-term growth. They can be riskier but offer higher potential returns. 2. **Bond Funds**: These invest in bonds, offering steady income with lower risk compared to stocks. 3. **Balanced Funds**: They invest in a mix of stocks and bonds to balance risk and return. 4. **Money Market Funds**: They invest in short-term, low-risk securities like Treasury Bills and offer stable returns. 5. **Index Funds**: These mirror a specific market index, making them low-cost and suitable for long-term investors. 6. **Sector Funds**: These focus on specific industries like technology or healthcare, offering targeted exposure. 7. **Tax-Saving Funds (ELSS)**: These invest in equities and offer tax benefits under Indian tax laws. These descriptions provide a basic understanding of the main types of mutual funds available. #amc#mutualfund#mutualfundsahihai#investing#mutualfundseries

Friday,26 July, 2024 Here are today's PESTLE updates impacting your areas of work execution Economic times √ TechM Q1 Profit Up 23% to Rs 851cr, Revenue Down √ Bank Stocks Fall for a 3rd Day on Q1 Slip √ FY25 Gold Bond Float Target Cut by 38% √ MSME Credit to Ride Budget Push, Offset Unsecured Stress √ Nestle India Q1 Net Rises 7% to Rs 747 cr √ Foxconn iPadding Up to Assemble in India ==================== Mint √ Why India needs to think again whether it should host Olympics √ Supreme Court upholds states’ power to levy tax on minerals √ Coming law could tag you a digital news broadcaster √ Indian borrowers turn to yen debt as falling costs tempt √ Four suitors circle EuroSchool owner Carlyle, EQT, Partners, CPPIB eye Lighthouse for $700-900 mn =================== Financial times √ Bill Ackman slashes fundraising target for US fund IPO by as much as 90% √ ECB poised to close lender owned by longtime adviser to Prince Andrew √ Revolut secures UK banking licence after three-year battle √ Russia and China fly joint air patrols near US for first time √ UK chancellor set to disclose £20bn public funding shortfall √ Reeves to pave way for UK Budget tax rises √ US economy grew at 2.8% rate in second quarter √ Younger Chinese fume at call to raise retirement age √ Israeli military seizes plot in ancient West Bank ruin ==================== Business standard √ L&T likely to outperform guidance after strong Q1 FY25 performance √ Texmaco Rail and Engineering buys Jindal Rail Infra for Rs 615 crore √ Adani Energy posts Rs 823 cr net loss in Q1 amid Dahanu divestment decision √ Ashok Leyland Q1 FY25 results: Net profit declines 6% to Rs 509 crore √ Tech Mahindra Q1 results: Net profit up 23% on cost action; still a miss √ Canara Bank's Q1 net rises 10.5% to Rs 3,905 cr; NII expands 5.7% √ Ujjivan SFB Q1 FY25 results: Net profit declines 7% to Rs 301 crore √Mankind Pharma acquires Bharat Serums and Vaccines for Rs 13,600 crore √ Budget 2024: PMS firms rethink strategy after increase in STCG tax ================================================ Friday,26 July, 2024 USD/INR- Open- 83.7200 prev.close- 83.7200  ⬆️0.0000% GBP/INR - open- 107.6572 prev. close - 107.8581 ⬇️0.1529% EURO/INR- open- 90.9023 Prev.close- 90.8340 ⬆️0.0721% JPY/INR - open- 0.5438 prev close- 0.5445 ⬆️0.0184% BSE- open- 80,158.50 prev close- 80,039.80 ⬆️0.85% Gold - open- 67990.00 prev close- 67462.00 ⬆️0.43% Silver- open- 81662.00 prev. close- 81331.00 ⬇️0.12%

Confused about Capital Gains Tax (CGT) in India? This video is your one-stop guide! We'll break down CGT for ALL your investments, from stocks and mutual funds to real estate and unlisted shares. Here's what you'll learn: The Basics of CGT: Understand how CGT works in India and how it applies to different types of investments. Short-Term vs. Long-Term Capital Gains: Discover the difference between STCG and LTCG, and how the holding period affects your tax rate. Tax Rates Explained: Demystify the various tax rates for different asset classes and understand the latest changes. Get in Touch: PA Wealth Explore our expertise in: Stocks PMS | AIF | Mutual Funds | Startup Investments #stockmarket #nifty #sharemarket #stocks #igp #nse #trading #bse #investing #indianstockmarket #stockmarketindia #business #india #moneymindset #investors #mutualfunds #invest #stockmarketnews #investing #investment #money #trading #invest #investor #business #stockmarket #financialfreedom #wealth #realestate #success #trader #entrepreneurship #wallstreet #btc #passiveincome #investments #capitalgains #capitalgainstax