Sanjay Matai, The Wealth Architects

The Most Authentic Guide on Personal Finance and Investments


Words of Wisdom : "A budget tells us what we can't afford, but it doesn't keep us from buying it." ~ William Feather

New PPF Rules For Easier Account Operation

Public Provident Fund (PPF) is a well-established and one of the most-preferred investment options.

Multiple benefits under the scheme — tax-free interest income, tax deduction on deposit, risk-free sovereign guarantee, no attachment by any Court or Govt. Agency, etc. — are, of course, all well known.

With its recent notification dated Feb 13, 2018, the Ministry of Finance has expanded this scope of benefits.

Why 'Return Of Premium' Term Insurance Is A Disastrous Idea?

You are well aware of how your vehicle insurance works. If, during the year, your vehicle suffers any damage, the insurance company pays for the repairs. But, if nothing happens, you get nothing in return for the premium paid (except for the mental satisfaction that your vehicle was protected).

A normal Term Insurance Policy works on exactly the same lines. In case of any unfortunate eventuality, your nominee(s) receive the Sum Assured from the insurance company. But, if you survive the policy tenure, you get nothing in return for the premiums paid (except for the mental satisfaction that your family was protected).

Despite 10% LTCG Tax, Mutual Funds Are Better Than ULIPs

You would surely be aware that Long Term Capital Gains (LTCG) on your equity investments (whether direct or through mutual funds) are now taxable. With effect from April 1, 2018, LTCG of more than Rs.1 lakh will be taxed @10%.

However, long term capital gains on Unit Linked Insurance Plans (ULIPs) continue to remain exempt from any such tax.

Hence, it would be natural for equity investors to prefer ULIPs over Mutual Funds (MFs).

Beware! This could turn out to be a bad choice.

LIC's 8% Guaranteed Pension Gift For Your Senior Citizen Parents (PMVVY Updated)

[This blog post is an update on the PMVVY Scheme announced last year]

The budget 2017-18 had promised an assured-income pension plan for the senior citizens.

PMVVY — Pradhan Mantri Vaya Vandana Yojana — is the fulfillment of that promise.

As usual, LIC is the agency that would manage this scheme.

Listed below are the salient features of PMVVY...
... and the all important question - Is it a worthwhile investment vis-a-vis the other options?

FAQs On The New 'Long Term Capital Gains Tax' On Equity

If you are an investor in the Indian stock markets — whether directly through equity shares, or indirectly through equity mutual funds / ULIPs — you would have surely heard the bad news.

The Govt., in its recent Union Budget 2018-19 announced on Feb 1, 2018, decided to do away with the tax-free status enjoyed by equity investments, when the holding period exceeds one year. Gains for less than a year of investment (classified as short term capital gains) are taxed at 15%; and the same will continue.

Union Budget 2018: Impact On Personal Finance And Investments

Yesterday, the Finance Minister Shri Arun Jaitley presented the Union Budget for the Financial Year 2018-19.

The salient aspects of the Finance Bill 2018, in relation to your personal finances and investments, are enumerated below.

Insure Your Equity Investment From Stock Market Corrections

In recent months, stock markets have seen a sudden and sharp upsurge. All the indices are trading at life-time highs.

Unfortunately, the economic growth has been rather sluggish. Consequently, the corporate profits have been poor.

As such, the market valuations have become quite expensive.

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