M. Pattabiraman's Blog, page 291

Should I expect lower returns from equity in future?

The re-introduction of equity LTCG tax offers not only a chance to clean up our portfolios, but also recognise an important fact: returns from equity may gradually decrease in the next decade or so....

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What if I cannot invest enough for my financial goals?!

A financial goal planner is as much a curse as it is a blessing! A goal planner is the simplest way to recognise the impact of inflation for long-term goals and the need to combat it with a...

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How tax (DDT) affects mutual fund dividends and lowers return (examples)

We are aware that debt mutual funds are subject to a dividend distribution tax (DDT). From April 1st 2018, equity mutual funds will also be subject to DDT. Here some examples as to how DDT affects...

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Clean up your mutual fund portfolio before March 31st 2018!

Every dark cloud has a silver lining. The Equity LTCG tax and the dividend distribution tax on equity mutual funds from April 1st, 2018 is the perfect stimulus to clean up our mutual fund portfolios....

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All “You can be Rich Too” Calculators are now available on Google Play!

You can be rich too with goal-based investing is a book written by PV Subramanyam (subramoney.com) and myself. The book comes with nine online calculators. We are pleased to announce that these...

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Worried about 2% single day fall in indices? Be ready for more or leave!

On Feb 2nd the day after the budget, the Sensex fell by about 2%. If you this is a “big fall” or if you are worried, you only have two choices: get used to it and be ready for more or...

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Equity Mutual Fund Dividends are taxed 12.942% (not 10%): Here is how to avoid this

Budget 2018 has proposed that equity-oriented mutual funds be subject to a 10% dividend distribution tax (DDT) to ensure parity with the 10% LTCG tax on growth equity mutual funds.  If you include...

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Why Equity LTCG Tax is not double taxation!

I am surprised at how many people assume that the 10% Equity LTCG tax introduced in Budget 2018 also applies to mutual funds. That is, they think that the Equity LTCG tax is a form of double taxation...

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Should I book profits each year to lower Equity LTCG Tax?

Readers may recall that I have been covering equity LTCG tax in a series of posts. First, the implications, followed by simple examples on how to calculate LTCG tax after accounting for the...

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Do not buy ULIPs because equity mutual fund LTCG will be taxed!

The day after Budget 2018 proposed LTCG tax on equity and equity oriented mutual funds, life insurers saw an opportunity to push ULIPS as the “go to” instrument now. Abandoning mutual...

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