Author: Shalini Bhardwaj

Equity mutual funds are popular among investors for their potential to generate long-term wealth. Two commonly discussed types in this category are Flexi Cap Funds and Focused Funds. While both offer avenues for capital growth, they differ significantly in strategy, portfolio composition, and risk factors. If you’re planning to invest, understanding these funds’ characteristics can help you decide which one is better for your financial goals. Similarities Between Flexi Cap Funds and Focused Funds Equity-Driven Investments Both Flexi Cap Funds and Focused Funds are mandated to invest at least 65% of their assets in equities or equity-related instruments. This ensures…

In recent years, more people have shifted from traditional savings methods like fixed deposits (FDs) to smarter investment options like mutual funds. Mutual funds offer a balanced approach to earning higher returns while minimizing risks compared to the stock market. Here’s a simple guide on how to invest in mutual funds and make the most of your money. Why Choose Mutual Funds Over Other Investments? Mutual funds allow you to pool your money with other investors and have it managed by professionals. This reduces the risk for individual investors and increases the chances of higher returns. Whether you’re planning for…

Paying income tax is a responsibility of every taxpayer earning above a certain limit. While most people are aware of income tax filing, many remain confused about terms like advance tax and self-assessment tax. These are critical components of tax payment under Indian laws and must be understood clearly to avoid penalties and ensure smooth compliance. Here’s a detailed look at these two taxes, their differences, and how to calculate them. What is Advance Tax? Advance tax is a tax payment made during the financial year on the income you earn within that year. Instead of paying your entire tax…

Small cap funds are mutual funds that primarily invest in stocks of smaller companies with high growth potential. These companies are ranked beyond the top 250 firms in terms of market capitalization, making them a high-risk, high-reward investment choice. While these funds can deliver significant returns during bullish markets, they are also prone to steep declines during market corrections. Why Small Cap Funds Have Declined Recently The Indian stock market witnessed a sharp downturn in October 2024, and small cap funds were hit the hardest, with an average drop of 7%. Compared to large cap and mid cap funds, which…

If you’ve just started earning, tax planning might seem daunting. However, it’s important to start early to save more and avoid last-minute hassles. Employers often ask for an investment declaration at the beginning of the financial year, so it’s wise to be prepared. Here are some smart ways to save on income tax and invest wisely. Why Start Early? The earlier you begin investing, the more you benefit from compounding and tax-saving opportunities. Young earners have time on their side, allowing their investments to grow significantly over the years. Planning your finances from the start ensures a stress-free tax season…

Building the right portfolio is key to achieving financial goals while managing market risks. A balanced investment approach ensures stability during market fluctuations and maximizes returns. The challenge lies in deciding the right mix of equity and debt based on your goals and risk tolerance. Here are five practical tips to help you build a strong and balanced portfolio. 1. Understand Equity vs Debt: What’s Right for You? When deciding between equity and debt, it’s important to understand their roles: How to Decide? Assess your financial goals and risk appetite. For instance: 2. Get Your Asset Allocation Right Asset allocation…

Retirement planning is a crucial aspect of financial management, ensuring a secure and comfortable future post-retirement. In India, various retirement benefits are available, including pension plans, provident funds, gratuity, and more. Understanding the tax implications of these benefits is essential to maximize your retirement corpus and minimize tax liabilities. This comprehensive guide delves into how retirement benefits are taxed in India, covering different types of retirement income, their tax treatment, and strategies to optimize tax efficiency. Types of Retirement Benefits in India Retirement benefits in India can be broadly categorized into: Each of these benefits has distinct tax implications, which…

Investing in mutual funds has become a popular way to create wealth over the long term. Unlike directly investing in the stock market, which requires time, effort, and a good understanding of market trends, mutual funds offer a professionally managed option for wealth creation. But with so many fund categories available—Flexi Cap, Multi Cap, and Solution-Oriented Funds like Retirement and Children’s Funds—choosing the right one can be confusing. This guide simplifies these options, comparing their benefits, risks, and suitability for different financial goals. What Are Flexi Cap and Multi Cap Funds? Flexi Cap Funds: Multi Cap Funds: What Are Solution-Oriented…

Market ups and downs are a normal part of investing, but when the markets fall, it’s easy to feel anxious. However, a downturn doesn’t only bring challenges—it also creates opportunities for investors to rethink their strategies and strengthen their portfolios. Here are five simple tips to help you stay on track and even find profit during uncertain times. 1. Stay Calm and Avoid Emotional Decisions When markets dip, it’s natural to feel nervous, but making decisions based on fear can lead to mistakes. Instead of focusing on short-term losses, think about your long-term goals. Remember, the stock market is a…

Taxpayers who failed to disclose foreign income or assets in their original Income Tax Returns (ITR) for the assessment year 2024-25 can still make corrections by filing a revised return. The last date to submit the revised ITR is December 31, 2024. Failing to do so could result in a penalty of up to ₹10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The Income Tax Department issued an advisory on November 18, urging taxpayers to ensure compliance with disclosure requirements. The department highlighted that revising the ITR provides an opportunity to…