Tuesday, 15 March 2022
Friday, 4 March 2022
what are multicap and flexicap funds.
Hence in Nov 2020, SEBI introduced Flexi Cap Funds which are similar to Multi Cap Funds but follow a flexible investment mandate. The key difference between multicap and flexicap fund is the flexibility the latter has in changing allocation between large caps, mid caps and small caps while ensuring 65% of its assets are allocated to equity and equity related instruments. For instance, if the fund manager feels a need to reduce exposure to small caps during economic uncertainty, he/she can reduce the allocation to zero and increase the allocation to large caps/mid caps. But a multi cap fund can’t manage its portfolio in such a dynamic manner.
Investors who find comfort in remaining invested across market capitalizations irrespective of the market cycles with a fixed allocation in small cap, mid cap and large cap companies, can choose Multi cap funds. Those who prefer a flexible investment strategy that can increase/decrease exposure across market caps depending on the market outlook can opt for Flexi cap funds.
Thursday, 3 March 2022
Tuesday, 1 March 2022
Sunday, 27 February 2022
What should a nominee do after the death of an investor?
What should a nominee do after the death of an investor? How is investment money taxed?
After the demise of an investor, the family members can benefit from the investments, once the accumulated amount is transferred to the nominee(s) or to the legal heir(s).
People make investments or take insurance covers to ensure a better future or to maintain the same standard of living after retirement or to ensure that the dreams of financially dependent family members don’t get ruined in case of unfortunate demise of the earning member of the family.
While there are many financial instruments available in the market, some are intended to transfer the risks (like insurances), some are to earn a risk-free returns (like Bonds, FDs and other small saving instruments) and some are for generating higher long-term returns (like equities, equity-oriented Mutual Fund (MF), etc).
However, after the demise of the investor, the family members can benefit from the investments, once the accumulated amount is transferred to the person(s) nominated by the investor (the nominee(s)) or to the legal heir(s). The process of such transfer is called transmission.
During the time lag between the date of death of an investor, till the death intimation is given or the death claim is made, different rules are applicable on different instruments regarding the rate of return or survival benefits payable during the period.
Equities, Equity-oriented MF Schemes
As no fixed interest rate or bonus rate is applicable on capital instruments like equities and MF Schemes, only the number of shares / units of MF schemes are transmitted to the nominee(s) / legal heir(s). Once the units are transmitted, the beneficiaries may redeem the investments as per their convenience. The gain or loss on investments will depend on the market price of the shares / NAV of the units on the day of redemption.
Taxation
To determine if the capital gain on redemption of equity shares / MF units is of long-term or short-term in nature, the date of investment will be taken into consideration is the original date on which the investment was made by the deceased investor and not the date of transmission of the shares / units to the nominee(s) / legal heir(s).
For fixed-income instruments, the same tax rules (as applicable on specific instruments) will be applicable on the interest earned by the nominee(s) / legal heir(s) once the instruments are transmitted.
Thursday, 24 February 2022
Stay calm stay invested for long term..
This is not first time like Situation, In History Many Global Events Happened. Our Focus Should be on our Long Term Goals.
*Keep calm nd Stay Invested*
Friday, 11 February 2022
what is an Index Fund?
What Is an Index Fund?
Index Funds are passive mutual funds that mimic popular market indices. The Fund Manager doesn’t play an active role in selecting industries and stocks to build the fund’s portfolio but simply invests in all the stocks that make up the index to be followed. The weightage of the stocks in the fund closely matches the weightage of each of the stock in the index. This is passive investment i.e the fund manager simply copies the Index while building the fund’s portfolio and tries to maintain the portfolio in sync with its index at all times.
If the weight of a stock within the index changes, the fund manager must buy or sell units of the stock to have its weight in the portfolio aligned to that of the index. While passive management is easier to follow, the fund doesn’t always produce the same returns as that of the index due to tracking error.
Tracking error occurs because it is always not easy to hold the securities of the index in the same proportion and transaction costs are incurred by the fund in doing so. Despite tracking error, index funds are ideal for those who don’t want to take the risk of investing in mutual funds or individual stocks but would like to gain from exposure to the broader market.
KEY TAKEAWAYS
- An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index.
- Index funds have lower expenses and fees than actively managed funds.
- Index funds follow a passive investment strategy.
- Index funds seek to match the risk and return of the market based on the theory that in the long term, the market will outperform any single investment.
#wealthbricks
7 more way to save tax
https://www.timesnownews.com/business-economy/personal-finance/utilised-section-80c-exemption-limit-already-7-more-ways-to-save-tax-article-89434560
Wednesday, 2 February 2022
Sunday, 30 January 2022
Wealth Bricks
Financial Advisor Consultant at Wealth bricks and Advisor Prudent corporate, Fundzbazar.
With broad experience of 15yrs in financial advisory and associated with prudent corporate Fundzbazar to provide platform service, we can assist you with streamlining and recommendations.
Now you can use a common platform to invest and track all your investments across any AMC and RTA including Kfintech and CAMS.
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Channel Partner with Prudent, Prudent FundzBazar (FB) is managing above 35000cr AUM with customer friendly online investment platform initiated by Prudent Corporate Advisory Services Ltd. (Prudent) which offers quick and easy services through web portal and mobile application to invest online in various financial instruments. Currently Prudent FundzBazar (FB) is offering services related to investment in Mutual funds, NPS, Insurance (including health and general Insurance),Bonds, Loan against securities(LAS) & Fixed Deposits.
Prudent Corporate Advisory Services Ltd. (Prudent) started in 2000 as a mutual fund distributor, has expanded multi-fold in all aspects of wealth management in just 15 years. Currently it has its presence across 105 branches in 19 states.
We can further connect via zoom call to discuss and evaluate your existing portfolio which may be held across any platform or distributor. We will help you to get it consolidated.
Feel free to contact us with the contact information mentioned below.
Mohammed Akbar Gani
Chief Financial Advisor at Wealth Bricks
AMFI registered, NISM Certified
9769373403
Email us: wealthbricks@prudentconnect.com
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