M. Pattabiraman's Blog, page 44

Do Sovereign Gold Bond Investments Make Sense Anymore?

After the fall in gold prices due to the customs duty cut announced in the 2024 budget, sovereign gold bond investors are shocked, and many have written to us to ask if these investments make sense anymore. There is a lot of speculation as to why the customs duty was cut – “this was done...

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My Stock Portfolio Analysis: July 2024

This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. Update: We recently added a new tool to the freefincal investor circle...

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How are different gold investments taxed after Budget 2024?

Investors seem confused about how gold investments will be taxed after Budget 2024. This is natural since there is still some ambiguity about the holding periods of listed assets like gold ETFs and sovereign gold bonds.  Here is a quick summary. Physical Gold: slab rate (2Y) The tax will be at the applicable...

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How will Bal Adv Funds and Dynamic Asset Allocation Funds be taxed after Budget 2024?

This article discusses how Balanced Advantage Funds and Dynamic Asset Allocation Funds will be taxed after the 2024 Budget. Dynamic Asset Allocation or Balanced Advantage Fund can invest in equity/ debt that is managed (0% to 100% in equity & equity related instruments; and dynamically 0% to 100% in Debt instruments). So they could be...

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Can I retire at 47 with Rs. 5.7 Crores?

A reader says,  “I am 47 and have a wife and 15-year-old daughter. I have my own house, and I am paying one lakh emi. The balance loan is 1.4 cr.  I have been considering resigning from my current job and, depending solely on my corpus, investing primarily in FD, mutual funds, and some stocks.”...

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How will multi-asset funds be taxed after the 2024 Budget?

This article discusses how multi-asset funds will be taxed after the 2024 Budget. A multi-asset fund should invest in at least three asset classes with a minimum allocation of at least 10% in each asset class. So they could be taxed like equity funds, debt funds or other funds depending on whether they hold 65%...

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Budget 2024: Additional Questions on capital gains taxation

In this article, we address some more questions readers have asked in response to Budget 2024: FAQ on capital gains taxation. Q1: “I understand that if I sold an equity mutual fund with LTCG between 1st April 2024 & 22nd July 2024 without any grandfathered unit, I could book Rs 1 lac profit without tax burden....

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25-Year-Old Software Engineer’s Investment Journey: From Stocks to Mutual Funds and Beyond

In this edition of the reader story, A 25-year-old shares his investment journey. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at the bottom of this article. You can also access the full reader story archive. Opinions published...

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Budget 2024: Should I change my return expectations after the change in capital gains tax?

Over the last few days, many readers have asked us if the ey should change their return expectations due to the change in capital gains tax announced in budget 2024. The most significant negative changes are: The long-term capital gains for equity investments have increased from 10% to 12.5%. The increase in tax-free limit to...

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Absolute returns have to be nearly three times higher than inflation for 12.5% tax to be beneficial!

Budget 2024 has done away with indexation from all capital gains taxation. Two places where this will hurt the most are real estate sales and debt fund investments made before 1st April 2023. The older the investment, the more the impact. We had determined earlier the return necessary from real estate sales that would benefit...

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