Everything whatever we do first time look difficult and tedious and same is with mutual fund investment.
When I started investment in mutual fund I don’t know how to invest directly with AMC. So initially I started investment with distributor and after sometime I started direct investment.
This post is intended to people who has not done any mutual fund investment and want to invest directly through AMC.
New government presented the budget for the financial year 2014-15. There is some benefit has been given to individual tax payers. Basic exemption limit has been increased by Rs 50000, Investment limit under section 80 C has been revised from Rs 1 lac to Rs 1.5 lac, home loan interest tax benefit for self occupied house also increased from 1.5 lac to 2 lac.
In this post we will try to see how much tax benefit individual tax payer will be getting from these changes.
Exemption limit
Basic Exemption limit raised from Rs. 2 lacs to Rs. 2.50 lacs for general category of individuals and from Rs. 2.5 lacs to 3 lacs for senior citizen. So in total Rs 50000 has been added to exempted limit.
Currently Indian market is in bull phase and the new investors are happy by seeing the growth of their investments. They are hoping that the bull phase will continue forever.
The idea of this post originated from the discussion about the actions people has taken during the 2008 market crash on Facebook Group “Asan Ideas for Wealth”.
In 2008 market crash almost all fund’s NAV dropped significantly. People who are sitting on huge profits suddenly found that now they are sitting on losses. After seeing the market crashed some people stopped investment, some people redeemed their funds and some people continued with further investment.
Now a days one video has gone viral where one person at the age of 75 year sells toys for making living. He travels daily 150 KM to and from Delhi to sell the toys. He was the manager at one big American company before retirement. You can see it here.
After seeing the video I was wondering how many people after seeing this video will take charge of their own financial life and plan for retirement and start investing for the same.
ULIP is unit link insurance plan, which provide insurance as well as capital appreciation of the premium paid. ULIP provides the combination of two products in the premium of one. So what are the problems with ULIPS?
1. Un-sufficient Insurance
Before purchasing insurance plan we should know how much cover we required. ULIP provides very less life cover with high premium. For most of the ULIPs premium paid is tax exempted under section 80(c) subject to premium is not more than 10% of sum assured hence most of ULIPs life cover is 10 times of premium paid. Suppose I want 20L life cover then I have to purchase a ULIP with the premium of 2L. Is this cover is justified with this premium?
