Posts

BALANCED ADVANTAGE FUNDS

Image
  Balanced advantage funds are a type of hybrid funds that invest in both, equities and debt instruments. There is no fixed threshold for exposure to a particular asset class. These funds can also modify their asset allocation as per the market conditions. When equity market is trading at an all-time high, fund managers may increase the exposure to equities, while reducing it in falling stock markets.  Unlike other funds, Balanced Advantage funds not only offer a mix of growth and fixed income instruments but can also switch between the asset classes dynamically.  How do they work? Balanced advantage funds have a unique rebalance strategy where they can reduce or increase the asset allocation towards equities or debt. Additionally, if the fund manager anticipates rise in valuations and key indices, they might increase their equity exposure. But when they anticipate a market crash, fund managers might sell off the stocks and switch to debt instruments, protecting you from ...

Have you linked your Aadhaar number with PAN card?

Image
  Do you pay taxes? If yes, it is crucial to understand the effects of not linking your Aadhaar number to your PAN card because the Central Board of Direct Taxes has set up repercussions for PAN being inactive in accordance with the recently substituted guideline. Read on…. 1. As per the notification substituting rule 114AAA of the Income-tax Rules, 1962 (the Rules) vide notification no. 15 of 2023 dated March 28, 2023, it is very clear that a person who has neglected to disclose their Aadhaar number may suffer the following repercussions as a result of their PAN being inoperative: A refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made; Interest shall not be payable on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA and ending with the date on which it becomes operative; Where tax deductions are applicable, such tax shall be deducted at a higher rate, in accordance with Section 206AA’s pro...

UNDERSTANDING MUTUAL FUNDS

Image
What are Mutual Funds? In a mutual fund, money from many different investors is pooled and invested in short-term debt instruments like equities and bonds. The portfolio of a mutual fund is all of its investments put together. Shareholders are those who own mutual funds and have purchased shares, which entitle them to a percentage of the fund's assets and earnings. Why to buy Mutual Funds? Mutual funds are one of the best investment instruments to invest into because of the following features which they offer: -  Professional Management : A group of professional fund managers take care of the fund performance based on detailed research. Diversified portfolio : "Don't put all your eggs in one basket," is a classic adage. The mutual fund investment follows the same general principle. Investing in mutual funds across a variety of industries and businesses lowers the chance of losing money even if one business fails. Affordability : For first investments and subsequent pu...