blog

Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | November 18
Take Financial Vaccination for your Children - FinChikitsak Recommends Edu-Vac & Mari-Vac

All new-borns are given a number of vaccines to protect them against a number of diseases. We at FinChikitsak, also suggest that you consider taking financial vaccines to ensure your child has a comfortable future and you leave no stones unturned for his / her education, marriage or any other requirements. Since the time I had gone to school, that was back in 1960s, the cost of education has risen at an unforeseeable rate. The co....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Tax Saving | October 29
Top Tax Saving Mutual Funds

A tax saving mutual fund (Equity Linked Savings Scheme) is one of our most preferred source of tax saving instrument. An ELSS is a mutual fund that invests in equity markets. The features of ELSS are the following – ·        Investment upto Rs 1,50,000  under Section 80C that directly saves Rs 45,000 in taxes ·        Average returns of ~ 15% over a lo....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | October 29
Top 10 SIP Mutual Funds

A number of our clients are young people who are in their initial phases of their careers. These young investors often question what a good investment strategy is for them. Given the risk profile of individual clients, we suggest an aggressive strategy to build capital by way of Systematic Investment Plan (SIP).  They are having regular income and we suggest them to initiate a SIP investment and the money is invested in a preselected....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | October 29
Top Equity Mutual Funds

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Personal Finance | October 26
Utter Vigilance with your bank and relationship manager

This news headline “Bank relationship manager siphons off Rs 1.5 crore from elderly couple’s account” recently drew my attention to share my personal experience where-in our “Relationship Manager” (RM) tried to dupe our family and the lessons we learnt from this episode.  My Mother-in-law is in the 80s and she stays close to our place. She has a savings account with a private sector bank and owing to the substantial savings she a....

Read More
avatar-finchikitsak.jpgSara Bailey
Personal Finance | September 23
A Parent’s Guide to Financial Planning

Whether you`re just starting a family, adding to it, or thinking about the future, it`s never too soon to set financial goals because they keep you focused on the end goals, help you measure and manage your progress, keep you on track and help identify adjustments to make.Many financial planners will tell you that when you`re setting your goals and creating your plan, you should save for a rainy day or emergency, retirement and college expense....

Read More
Simran_Shanwal_file-2.jpegSimran Shanwal
Mutual Fund | June 03
Understanding Equity Mutual Fund Categories

All of us are interested to know which are the top performing Mutual Funds and which ones should you invest it. We are continuously approached for Mutual Fund advice where clients ask us which are good and optimum to invest given their risk profile. This includes Debt Mutual Funds as well as Equity Mutual Funds.We have studied various types of equity funds & balanced funds also called Hybrid Equity fund as shown below -All equity- Tabl....

Read More
Simran_Shanwal_file-2.jpegSimran Shanwal
Mutual Fund | May 27
Equity Linked Savings Scheme (ELSS) vs Provident Fund (PF)

Dear Readers,In this article we compare the investments in Provident Fund (rather Voluntary Provident Fund) and that made in Equity Linked Savings Scheme (ELSS).Most of the salaried class invest in Provident Fund (PF) that falls under Section 80C for tax saving purposes. A few clients also prefer investing in Voluntary Provident Fund (VPF) and Public Provident Fund (PPF) to meet the 80C requirements. We have done a comparative study of ELSS vs....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | May 08
Dividend or Growth option in Equity Mutual Funds – Which One is Better?

Dear Investors, In the budget of 2018, there were two major changes implemented by the Finance Minister, Arun Jaitley, that impacts the stock markets and especially your Mutual Fund Investments. These are –              1) Levying a Dividend Distribution Tax of 10% on dividends distributed by Equity Mutual Funds            2) Long term capital gains tax exceeding Rs 1 Lak....

Read More
Simran_Shanwal_file-2.jpegSimran Shanwal
Insurance | April 15
Annuity - Is it a good retirement investment?

Dear Readers, Recently we received a few questions on annuities and many expressed an intent to invest in Annuities. We are writing this article to give a brief introduction about annuities and why they may not be the best option for you as a retiree.Annuities – A brief introduction:A typical annuity scheme requires the investor to make an investment into a scheme which will then provide a fixed monthly income after retirement until t....

Read More
Simran_Shanwal_file-2.jpegSimran Shanwal
Mutual Fund | April 15
Debt Fund vs Annuity - Which is better?

Dear Readers,. Hopefully our earlier article would have given you a good idea on what annuity is and how does it impact your retirement income.An annuity is preferred by retirees because it provides a sense of security that they will continue to receive money each month for the rest of their life. One may choose to receive fixed payouts at intervals (monthly, quarterly, half-yearly or annually) that suits them best. However, as we....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | February 24
Achieving steady income after retirement - Case for a Systemic Withdrawal Plan (SWP)

Mr. Jain, a 60-year old hard working man retired this year after an illustrious career. He currently has Rs 1 Cr. as his retirement corpus. He also had other sources of income such as rents from properties and based on this he came under the 30% tax bracket. His current financial objectives currently are -               1) Receive a steady income post retirement for his family     ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | February 04
How does the Budget impact your Mutual Fund Investments?

Dear Investor,We would like to provide you my analysis of the budget and how it impacts your investments.Tax ImplicationThis budget has majorly impacted equity funds with minimal impact to debt funds.The Budget has affected the mutual fund investors adversely. Long Term Capital Gains (LTCG) tax @ 10% has been introduced to equity investments if your total capital gain for the year crosses Rs 1 Lakh. If your gain is below Rs 1 Lakh, LTCG shall ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Insurance | January 30
Rising Costs of Health Insurance - What should you do?

Health Insurance is an essential policy that we recommend all our clients to get coverage for. Health issues often come up with increasing regularity and for professionals an insurance policy ensures that you get cashless treatment or reduces the total amount of expenses you may incur, in case you fall ill. We were approached by our friend with the problem of very high insurance premium for his existing health insurance policy. It needs ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Tax Saving | January 13
How should you manage your Tax Saving Investments?

The financial year is coming to an end. Many of you would have been asked to submit the proofs of investment for claiming 80C benefit of Rs 1.5 Lakh. Under Section 80C of Income Tax rules, an individual can claim a deduction of Rs 1.5 Lakhs from his / her taxable salary. For a person falling in the 30% tax bracket, this amounts to a tax benefit of Rs 50,000. For those employed with corporations, Provident Fund would be one of ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Insurance | November 05
Should You Buy an Annuity plan?

Dear Readers,I have to make a confession. The trigger for the posts come from questions/ posts sent to us by our valued readers. This particular post was written by us after we received a query from a reader regarding the advertisement given below:                                                        &nb....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | October 14
Should I opt for Dividend Option in case of Debt Funds?

I was reviewing the mutual fund portfolio of my client Arun. It was not surprising to see his  investments were only in debt funds (given his risk profile). What was surprising was that his returns were as low as 6% (compounded return over a 3 year period) when most of debt funds in the declining interest regime had given returns of around 9-10%.I delved into the details of his funds and noted that he had opted for the dividend option in ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | September 27
Primer on Arbitrage Funds

Dear Friends,One of our readers recently asked us a question regarding Arbitrage funds. This article shall give you a better understanding on how Arbitrage funds work and their expected returns.We are aware that equity shares are traded in cash and that the settlement happens in T+2 days (by settlement, we mean that the actual delivery of shares to your account occurs in 2 business days following the transaction along with payment). This ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | September 10
Liquid fund or Sweep In Deposit - What is difference and what is better?

Dear Friends,I would like to inform you today of the advantages and disadvantages between a Liquid Fund and a Bank Sweep-in Fixed Deposit.My friend Sharad and I were discussing Liquid Funds and I was explaining its benefits. After patiently listening, he remarked that Liquid Funds look good but he prefers the higher returns from his bank`s Sweep-In account.For those who do not know what a Sweep-In account is, here is  a small explana....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Personal Finance | August 19
Reduce your tax liability by forming an HUF

Dear Friends,While conversing with many of my clients, I realized that many are not aware of a perfectly legitimate way of realizing significant tax savings and this prompted me to write this article. In this article, we shall introduce the concept of HUF and explain the process of creating an HUF along with the benefits.What is HUF: HUF stands for Hindu Undivided Family. A HUF is automatically formed when a Hindu wedding takes place, alt....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Insurance | August 05
LIC Jeevan Labh Policy – with “Labh” only to LIC!

Dear Friends,I would like to thank you for providing an overwhelming response to my last article on Fixed Deposits vs Mutual Funds. Many clients, friends and well-wishers reached out to me and informed me about the mistakes they have been doing by investing in Fixed Deposits.Recently one of my clients reached out to me and mentioned that he had been approached by an agent to purchase an LIC Jeevan Labh policy and wanted my views....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | June 17
Types of Mutual Funds present in the Market

Dear Friends,I am writing this article after a brief hiatus. The reason for this is that I was travelling to Europe last month. During my trip I met many of my fellow travellers from India we ended up discussing retirement plans and investment opportunities. I observed that the bank fixed deposit is the preferred investment choice for most of us. I think a major reason for this is that most Relationship Managers push us towards opening a FD wi....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Insurance | May 03
The Curious Case of the Tata AIA Gold Income Scheme – Neither Insurance Nor Savings

Dear Friends, I would first of all like to thank all my readers for giving your time and reading our thoughts through this blog. In the last few blogs, we have presented our views on tax saving investments. A few readers have asked us on why insurance policies were not recommended. While that is a very valid question, my recommendation for all investors is to purchase a term insurance plan, that too online. The costs for term insurance pl....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Personal Finance | April 02
An Overview of the National Pension Scheme (NPS)

Income after Retirement – This is (and should be) one of the key focus areas for anyone who is currently reviewing ones’ financial planning for the future. Unlike other countries, where social security benefits provide a comfortable security net after retirement, senior citizens in India have very limited government security benefits following retirement. Importantly, with increasing costs of living, higher medical expenses and maintainin....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Personal Finance | March 26
The decay in bank services

The decay in bank services This week while reading the newspaper, I observed a remark by Mr. Aditya Puri, Chairman of HDFC Bank. According to him customers have to pay for the services they receive. He further added that you cannot go to the Taj & demand the price of Mahesh Lunch Home (those of who are not from Mumbai may not be aware that Mahesh Lunch home is a popular eating joint with good service & very affordable prices). Alt....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Mutual Fund | February 25
Fixed Deposit vs. Debt Mutual Funds

Recently we have been receiving several queries from investors about which funds are the best to invest in. We share our thoughts on this in this newsletter.Firstly, there are a wide variety of funds available in the market to address the investor’s needs based on their time horizon for returns. Liquid funds typically cater to short-term investment periods and can be as short as a few days to a few weeks. Short term funds are better ....

Read More
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet Gupta
Tax Saving | January 23
Comparison of investment options under Section 80C

Dear Investor,The season for investments for tax saving has started & some of our clients have asked for what is the best investment. In this newsletter, we discuss the appropriate investment options available to us. When considering investing, an investor should keep E-E-E framework in mind. The letter E refers to “Exempt from Tax” while if the letter is T, it refers to “Taxable”. The first letter in the framework is the&nb....

Read More
OUR EXPERT BLOGGERS
avatar-finchikitsak.jpgSara BaileyFounder - thewidow.net
Kamal_Jeet_Gupta_papa_pic.JPGKamal Jeet GuptaFounder
Simran_Shanwal_file-2.jpegSimran ShanwalAnalyst