Case study

Business Standard analyses one family's finances and suggests a way forward

Business Standard

Do debt mutual funds offer fixed returns, like bank fixed deposits (FDs)? What is the advantage of debt funds over FDs?Investors can look to create long-term wealth with mutual funds (MFs). Within the debt fund category, fixed maturity plans offer tax-efficient returns. In general, debt funds offer the benefits of professional management, long-term returns, better tax efficiency and liquidity.Some years back, I had made a lump sum investment in an MF, but did not do the KYC (Know Your Customer) requirement. Now, I have MF investments for which I have done the KYC, according to the current rules. Is this enough to redeem my older investment or will I have to do KYC for that particular fund?The KYC requirements are to be fulfilled for investment purposes. In the case of redemption, you simply need to fill the redemption form and submit to the nearest asset management company or CAMS office. The redemption form is very easy to fill and all you need to put is your name, folio number and th

Readers' Corner: Mutual Funds

Realty check: Budget - Rs 1-2 crore

Business Standard brings you a snapshot of average current rates and unit sizes in localities that offer property in the price range of Rs 1 crore and Rs 2 crore

monsoon rains

Sectors like FMCG, two-wheelers and textiles will benefit

Monsoon to drive rural consumption

Top-up health plan better than restoration option

It helps policyholders address their need to mitigate risks of increasing medical expenses at affordable rates

Income Tax

Why you must file I-T returns on time

Even if you don't come in the filing bracket, it is the only way to claim refunds, get visa to some countries

Most corporate tax breaks may be phased out in FY18

HC or tribunal verdicts aren't the final word in disputes, but you can use them to persuade the assessing officer

Tough to use tax rulings to your advantage

Didn’t quote PAN with high-value transactions? Read this

Remember, the onus is on you to prove that income has been declared and tax has been paid

Didn't quote PAN with high-value transactions? Read this

For new, risk-averse equity investors

Investors willing to accept underperformance from diversified equity funds in bull markets may invest in dynamic asset allocation funds for their lower volatility

If companies with foreign exposure are beaten down, investors could engage in bargain hunting

Is currency fluctuation an opportunity?

Time to get defensive

With the Sensex again nearing 28,000 points, it would make sense to avoid high-risk stocksRetail investors in stock markets can take solace from Brexit. Before the event, S&P Sensex's one-year returns stood at -4.8 per cent. Since Brexit, the Sensex has surged five per cent. Though the returns, on an annualised basis, are still in the red (-2.46 per cent), losses for investors have come down substantially.The rally has been broad-based. Except for telecommunication and information technology (IT) indices, all sectoral indices are up. Among these, S&P BSE Metal Index, S&P BSE Realty and S&P BSE Basic Materials have been the best performers and were up 15.20 per cent, 12.53 per cent and 12.18 per cent returns, respectively.With the Sensex fast approaching 28,000, a level reached almost a year back, retail investors would be wondering if it is a good time to buy into this rally, be aggressive or wait. Experts, however, have a word of caution. "Yields have collapsed globall

Is it time to get defensive on your equity portfolio?

Click on graphic

Plan air travel intelligently

Travelling to your hometown during the festivals? Well, airlines have already started charging higher prices. In fact, if you are to travel between Mumbai and Delhi on July 30, the ticket prices are much cheaper at Rs 3,205-3,364, as compared to travelling two days before Diwali (October 30) on October 28 at Rs 5,105-6,509, almost 50 per cent more. Tickets for Christmas and New Year, almost five months away, seem to be the time when airlines really squeeze customers. With Mumbai to Goa ticket prices between Rs 3,944 and Rs 4,843 on December 20, compared with prices on July 30 at Rs 1,499-Rs 1,868, airlines are making hay when the sun shines.For customers who have time at hand, trains could be a much-better option. Air-conditioned 2-tier train ticket prices from Delhi to Kolkata for July 30 and October 28 stand at only Rs 2,310. Even first class air-conditioned tickets, available at present, would cost only Rs 3,965, about 20 per cent cheaper than flight costs. For those who can think a

If my father pays my child's school fees, can he claim tax exemption for it?Under Section 80C of the Income Tax Act, an individual can claim deduction against payment of tuition fees to any university, college, school or other educational institution in India for the purpose of full-time education of his two children. Since the Act prescribes that the payment is to be made by an individual for his/her children only, the payment of school fees of grandchildren will not be allowed as a deduction in the hands of your father.I transferred my house to my married daughter. She sold it and bought another flat with that money. Will she be taxed on inheriting the flat or selling it?There is no inheritance tax levy or gift tax in India. Further, gifts from close relatives are also not taxable in the hands of recipients and accordingly there is no income tax liability on your daughter when you transferred the flat in her name. However, when your daughter sold the flat, any gain arising on the sam

Taxation: Kuldip Kumar

Koramangala is one of the sub-markets within the secondary business district of Bengaluru, and one of the key office, retail and residential precincts of the city. It is almost six km from the central business district and well-connected with established schools, colleges, hospitals, malls and other entertainment options. As such, it is one of the most sought-after locations for residential properties. With the presence of a cosmopolitan population, established high streets featuring all major brands, pubs, cafes and fine dining, this location has everything at an accessible distance.After being established as a key residential location, along with the presence of many popular colleges, Koramangala witnessed office space development. It now has close to two million sq ft of Grade A office space, which has a vacancy of less than one per cent. Shortage of leasable space in this sub-market has pushed the rents up by almost five to seven per cent quarter-on-quarter and about 10-15 per cent

Strong residential, rental demand driving growth

Once the terms are agreed upon, any breach would render a claimnon-payableNavsarjan Industrial Co-operative Bank had taken a banker's indemnity policy. While renewing, the coverage was increased to Rs 50 lakh, including transit insurance of Rs 20 lakh.The bank had entered into a contract with Prasad & Co. for providing security services. The contract cast an obligation on the security agency to provide guards when the bank's employees went for cash collection. The usual practice was to send two clerks along with a security guard to collect the cash, and put it in a trunk which was locked and transported in a private vehicle.On September 13, 2005, two clerks and a guard went in a hired auto to withdraw Rs 20 lakh from State Bank of India. While returning, two unknown persons came on a bike and opened fire with a revolver. After injuring the guard, the assailants threatened the clerks and decamped with the locked trunk containing cash.The guard was rushed to a hospital. A First Infor

Breach of policy condition renders a claim non-payable

Make money from your blog, video

While good content is a primary requirement, allowing visitors to interact on your platform will help you gather a larger following and attract advertisers

Know the exclusions, make full disclosures and go to a consumer court in case of a dispute

Reduce chances of claim denial

Retirees must ensure corpus lasts 25 years

Make money last for 25 years at least

With the regular cash flow from salary stopping, life spans rising, and healthcare and other expenses going up, retirees face a big challenge in making their retirement corpus last for the next 25 years or more. On the occasion of Global Parents' Day (July 24), we offer a few tips to elderly citizens who have retired recently on how they should manage their finances to achieve this goal. Retirees get a considerable sum from their Employees' Provident Fund, gratuity, etc at retirement. Many of them gift a considerable portion of it to their children. "By giving away the money early, retirees run the risk that the balance may not be enough to last for their lifetime, given the impact of inflation. Money should be passed on only through a will," says Anil Rego, chief executive officer, Right Horizons. Many retirees invest excessively in fixed-income instruments. Says Ankur Kapur, founder, Ankur Kapur Advisory: "Provided you are comfortable assuming some risk, you should have some allocati

With 3G speeds good enough, do we need 4G?

Higher speed on 4G means consuming more data. But, a few tweaks can help you bring down the data usage

Ways to use 4G data while paying 3G rates

'Buyers beware' remains the mantra for PMS investors

Govt to borrow Rs 3.5 L cr in first half of FY17

Portfolio management services offer an exclusive and customised product to the well-heeled but the latter need to be on guard while investing in these

Page 10 - Investment