I am a DIY investor and have been investing for the last few years. I understand asset allocation, so I divided my portfolio between equity and debt in a 60:40 ratio. Because of good equity markets, my asset allocation is skewed towards equity, with a 75:25 allocation. Now my doubt is if asset allocation has […]
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Whenever a particular sector performs well, inflows into sectoral or thematic mutual funds surge dramatically, indicating investors chase returns. However, these sectors can underperform for extended periods, making timing crucial; for most investors, diversified mutual funds are a better option. The following charts show the sporadic returns from sectoral indices and highlight how some sectors […]
In Budget 2024, the first budget in a decade presented by a coalition government, Finance Minister Nirmala Sitharaman announced several proposals that change the existing tax treatment for almost all asset classes. Top among them is the taxation on equity shares and mutual funds. Sitharaman also proposed a few tweaks to the new tax regime […]
I recently read a Mint article discussing why people fall for unregulated schemes carrying great risk. The story cites the quote – “There is nothing as disturbing to one’s well-being and judgement as to see a friend get rich. Unless it is to see a non-friend get richer,” from the book ‘Manias, Panics and Crashes’ […]
I have capital gains on the sale of equity shares and mutual funds I bought in 2020. Which ITR form should I choose, and where should I report these gains in the ITR? For listed domestic shares and mutual funds, if the holding period exceeds 12 months, the gains are considered long-term. Since the shares […]
Remember that story of the chessboard and rice? A wise man presented a chessboard to a king, asking for one grain of rice on the first square, two grains on the second, four on the third, and so on, doubling the grains on each subsequent square. The king, thinking it was a modest request, agreed. […]