#UnionBudget2018

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Interim Union Budget 2019-20 | Interim Budget 2019

Highlights of Interim Union Budget 2019-20: Overview of the economy, Major Expenditure Items, Poor and Backward Classes, Support for Farmers, Infrastructure, Micro, Small and Medium Enterprises (MSMEs) and Traders, Tax Proposals, Vision for the Next Decade.

[personalfn-blog]

5 Things SEBI Needs To Do Right Away For Mutual Fund Investors

The Securities and Exchange Board of India (SEBI) has safeguarded investors’ interest by making mutual fund houses more accountable.  Guidelines governing the industry are strict, clear, and one of the best in the global context.

But there is still more to do.

Although instances of mis-selling have been curbed, they haven’t stopped completely. Every time the capital market regulator comes out with stricter regulations, mutual fund houses and their channel partners find a way to achieve their objectives, perhaps, compromising the investors’ interest.

What should SEBI’s next action plan be?

1. Tighten the noose around close-ended schemes

Soon after the capital market regulator issued strict guidelines for open-ended mutual fund schemes for equity and debt both, fund houses floated more close-ended schemes.

New Fund Offers (NFOs) in the form of close-ended schemes not only help mutual fund houses grow their Assets Under Management (AUM), but also help escape the stringent rules applicable to open-ended schemes.

This is a major lacuna in the regulatory framework, and in the investors’ interest, the regulator must fix it with appropriate guidelines.

PersonalFN has highlighted the drawbacks of close-ended schemes on numerous occasions. Recently, it published a couple of articles to create awareness among investors:

5 Reasons To Avoid Close-ended Mutual Funds

Close-ended NFO Factories: Should You Invest?

The capital market regulator should take strict action against the irresponsible behaviour of mutual fund houses and their channel partners.

When the equity indices hit new highs, it’s relatively easy to convince, new investors. Mutual fund houses have mastered the art of playing with investors’ psyche to grow their AUM. They launch close-ended schemes, at a time, when valuations are stretched and committing more money to equity is risky.

As a result, most of the close-ended schemes underperform compared to their open-ended counterparts. In the name of offering stability to the scheme’s operations, “close-ended” nature of the schemes makes them less accountable and lethargic.

2. Do away with the dividend reinvestment option

Dividend reinvestment option, in our view, is a fool’s choice!

Those who do not want regular income should select growth option and those prefer to have occasional pay-outs, should choose dividend pay-out option.

Let’s first understand how these options work. Under growth options, the gains are accumulated and automatically retained and reinvested. In dividend option, at the discretion of the fund house, the gains are distributed among investors.

But under dividend reinvestment options, when the dividend is announced and paid, the proceeds are utilised to buy the units of the same fund at ex-dividend Net Asset Value (NAV).

(Image source: freeimages.com)

What’s the loss?

Dividends are tax-free in the hands of investors. But the mutual fund houses have to pay the dividend distribution tax before paying any dividend. Therefore, dividends aren’t totally tax-free.

Even as far as equity-oriented mutual fund schemes are concerned, the dividend option has become less attractive. As you may know, the Union Budget 2018 introduced dividend distribution tax @ 10% on equity-oriented mutual fund schemes.

Do you still think, dividend reinvestment option should stay?

Hopefully, the capital market regulator would also think on the similar lines.

PersonalFN has always encouraged investors to select their options carefully. Read some of the pertinent articles by clicking on the links below:

Should You Opt For Dividend Option Offered By Equity Funds Now  

Choose between dividend and growth option wisely

4 Myths About Dividends Declared By Mutual Funds Debunked

3. Discontinue monthly dividend options in balanced funds

As interest rates fell substantially over last three years, and sharply post-demonetisation; mutual funds started to attract conservative investors to balanced funds backed by a skewed narrative.

Since conservative investors have a strong preference for dividend-pay-outs, a few mutual fund houses launched monthly divided options.

(Image source: freeimages.com)

Recently, before the new financial year, many of mutual fund schemes paid dividends before dividend distribution tax on equity-oriented mutual funds being applicable. They were able to do so with huge gains made over last three-four years.

But such options are always misleading.

Under challenging market conditions, how many of these fund houses will be able to sustain the quantum of dividends they have distributed every month till now?

And let’s not forget, even if you as investors earn dividends and make losses on your capital, due to fall in the NAV post dividend distribution, the net effect is not positive.

4. End ‘copy-and-paste’ of liquid and liquid plus schemes

Observe carefully, many fund houses have similar liquid funds and liquid plus schemes (also known as ultra-short term schemes) in their product bouquet. It is challending to figure out the difference in their mandate and portfolio preferences.

But in this regard we are hopeful that the regulator will prudently regulate, as it did for scheme mergers of similar equity-oriented funds from the same mutual fund house.

5. Need to cap expense ratio of arbitrage funds

Arbitrage funds are classified as equity-oriented schemes for taxation purpose, but their return profile is comparable to that of liquid and liquid plus schemes (also known as ultra-short term schemes).

But their expense ratio is often near 1% –––rather high. Large commissions are paid to distributors to sell these funds.

(Image source: freeimages.com)

Until now, they were marketed as the tax-efficient alternatives to short-term debt schemes.

But soon after the government imposed dividend distribution tax and the long-term capital gains tax on equity-oriented schemes, they have lost their appeal.

PersonalFN has written some enlightening articles on arbitrage funds—comparing them with other available alternatives and explaining pros and cons of investing in them. Read:

Arbitrage Funds vs. Liquid Funds vs. Savings Bank A/C: How to Park Your Short-Term Funds

Arbitrage Funds: Do they work too hard for too little?  

The capital market regulator is playing a critical role in creating a fostering environment for all stakeholders: mutual fund houses, distributors, and investors.

Nonetheless, it is essential things that are beneficial for investors’ are done. If investors are happy, educated about invested, money will continue flow into mutual funds. Keeping this in mind, the regulator’s action on all the above mentioned issues would be crucial.

PersonalFN has always placed investors’ interest first!

We advise clients backed by thorough independent research, recognising their: risk profile, investment objectives, financial goals, and the investment time horizon before goals befall, among many other facets.  

PersonalFN believes, mutual fund investing is a serious business. At PersonalFN, our research team tests every mutual fund scheme through extensive scrutiny by a set exhaustive research process, consisting of both quantitative and qualitative parameters.

If you are looking at superlative research backed unbiased guidance to build a solid mutual fund portfolio, PersonalFN’ mutual fund research services are for you.

We recommend that you subscribe for our popular premium research service — FundSelect NOW!

FundSelectwill offer you honest and unbiased recommendations on which equity and debt mutual funds to Buy, Hold and Sell.

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Happy Investing!

The ideas in this article are inspired by Mr Pankaaj Maalde, and first appeared on ET and his blog.

This post on " 5 Things SEBI Needs To Do Right Away For Mutual Fund Investors " appeared first on "PersonalFN"

[infigic]

Union Budget 2017 – 2018 And What It Means for The IT Industry and Startups

The Union Budget is India’s most awaited, and often the most debated, policy announcement.

Industry leaders and economics experts lay threadbare the provisions and their likely impact, live on television channels. Stock-markets respond immediately and everyone tries to figure out what the budgetary proposals would translate to. Later, as the dust settles, some finer points emerge and new revelations pop up, often with a better understanding.

For a closer understanding of the budget, one must look at the vision government shares, in addition to the financials. Let’s take a look at 5 statements that we think are key to Union Budget 2018.

The top 5 policy statements in the Union Budget and what they mean for industry

The early lines pretty much sum the vision of the Union Budget 2018: “focus on strengthening agriculture and rural economy (and) infrastructure creation.”

“Online loan sanctioning facility for MSMEs will be revamped”

The government “will take additional measures to strengthen the environment for their (Venture Capital Funds (VCFs) and Angel Investors) growth and successful operation of alternative investment funds in India”.

“To invest in research, training, and skilling in robotics, artificial intelligence, digital manufacturing, big data analysis, quantum communication and internet of things, Department of Science & Technology will launch a Mission on Cyber-Physical Systems to support the establishment of centers of excellence.”

Implications: The government is betting big time on agri-based businesses and is willing to extend sizeable support by way of policy, taxation and infrastructural improvements.

Implications: The government is looking forward to building a better ease-of-doing-business environment for the MSMEs by easier, faster advances.

Implications: The key role VCFs and Angel Investors play in nurturing startups is being formally acknowledged. The government will attempt facilitating their initiatives.

Implications: The fine details for the Centres of Excellence (CoE) are still awaited but, with the right momentum, this could be a game-changer. Read More... Union Budget 2017 – 2018 And What It Means for The IT Industry and Startups

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Show this when someone asks u the time .🤣 . . . . Follow @trollslamber . . . . . #unionbudget #unionbudget2018 #arunjaitley #unionbudgetindia #indianunionbudget #budgetindia #politicalmemes #indianpolitics #trollslamber

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Narendra Modi latest Full speech - Union Budget 2018

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Union Budget 2018-19

Financial Summary of Budgetary Estimates Mutual Fund Advisor MR.K.P.PRABHAGHARAN, KKP CAPITAL, 9894333189 Mutual Fund Advisor

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N Chandrababu Naidu's TDP quits NDA over special category status, TDP moves no confidence motion on Business Standard. N Chandrababu Naidu's TDP quits BJP-led NDA after 2 of it's minsiters quits Modi government on denial of special category status to Andhra Pradesh. Know what is no confidence motion means and why TDP exits NDA over special category status.

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[personalfn-blog]

Why Is Gold Gaining All The Attention These Days? Know Here...

The calendar year 2018 started with a bang for equity investors. The effervescence of optimism overflowed across the global equity markets. Indian markets too participated in the global rally and the key indices touched their life-time high in January.

Those who missed the bus felt dismayed and fearing the permanent loss of opportunity, invested in equity when the markets rallied at steep valuations.

But soon after the budget was announced, the tide turned against equity.

Long term capital gain tax on equity, PNB scam, fear of political instability in India, geo-political tensions at the global landscape, possibility of escalation of tariff wars made guest appearances. These factors pricked the balloon of equity.

But as they say, one man’s loss is another man’s gain. Gold shot into the limelight .

Until recently it was said that, since the Federal Reserve (Fed) in the U.S. is hiking interest rates consistently, gold is likely to lose its lustre.

Now from nowhere the fears of tariff wars resurfaced. Tensions between China and the U.S. over the latter slamming additional duties on steel and aluminum imports from the former intensified over the last couple of months.

Gold is already up close to 5% in India and is expected to exhibit sheen in 2018.

The World Gold Council (WGC) is of the view that the precious yellow metal has many reasons to gain. It is of the view that while central banks are like to tighten policy rates, the increase will be gradual owing to subdued inflation across developed economies.

“In the Indian context, the demand will bounce as rural income is set to grow. The government’s vision to double farmers’ income by 2022 will lead to a sharper increase in rural gold demand. We do not believe that India’s annual gold demand will be limited to 650-750 tonnes. It will bounce back to 850-950 tonnes in another 18 months”, expressed Mr Somasundaram PR, Managing Director (India) of WGC.

For 2018, as the Union Budget 2018 has confirmed various positive initiatives for gold including the development of a comprehensive policy and the creation of a gold exchange, the WGC is optimistic that the demand for 2018 will stabilise at 700-800 tonnes.  

In addition, the following factors to name a few are likely to draw the attention of smart investors, as they will perceive it to be a safe haven, a storehouse of value…

Geopolitical tensions

Economic uncertainty in many parts of the world

Longer Brexit transition

Upside risk to retail inflation

Possibly slippage in the path to fiscal consolidation for India

So, those who sold their gold to invest in equity are probably ruing that decision now.

The precious yellow metal as an asset class is an effective portfolio diversifier and a hedge. The long-term secular uptrend gold exhibited is something that invites attention and highlights the importance of owning gold in one’s portfolio with a longer investment horizon in sight. Opting for a personalised financial plan is important as it helps you make an ideal asset allocation based on your financial goals and the risk appetite.

Therefore, allocating at least 10% of your entire portfolio to gold and holding it with a long-term investment horizon will be a prudent strategy. You may buy gold Exchange Traded Funds (ETFs) or subscribe to Sovereign Gold Bonds. These are smart ways of taking exposure to gold.

Editor’s Note:

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Happy Investing!

Author: PersonalFN Content & Research Team

This post on " Why Is Gold Gaining All The Attention These Days? Know Here...   " appeared first on "PersonalFN"

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Title - Decoding the Budget 2018 for women See More @ http://www.allaboutwomen.in/decoding-budget-2018-women/ #Budget2018, #UnionBudget2018

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Tag a cigarette lover who will be affected by the union budget 2018 😸 . . Follow @trollslamber . . . . . #unionbudget #unionbudget2018 #arunjaitley #unionbudgetindia #indianunionbudget #budgetindia #politicalmemes #indianpolitics #cigarettelover #trollslamber

[wionews]

Budget 2018 focused on all sectors, will accelerate economic growth: PM Modi

Prime Minister Narendra Modi on Thursday hailed the Budget 2018 presented by Arun Jaitley in Rajya Sabha, saying it will accelerate the economic growth as it is focused on all the sectors.

The prime minister said the Budget will strengthen the 'New India' vision because it is farmer friendly, common citizen friendly, business environment friendly and development friendly.

From food processing to fiber optics, roads to shipping, youth to senior citizen, rural India to Ayushmaan Bharat, Digital India to Start Up India, this budget strengthens hopes and aspirations of crores of Indians: PM Modi #UnionBudget2018

— ANI (@ANI) February 1, 2018

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He further congratulated the finance minister for the decision regarding the Minimum Support Price (MSP), adding it will help the farmers tremendously.

I congratulate the Finance Minister for the decision regarding Minimum Support Price. I am sure it will help the farmers tremendously: PM Modi #UnionBudget2018

— ANI (@ANI) February 1, 2018

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PM Modi was further hopeful that farmers, Dalits and tribal communities will gain from the budget and will create new opportunities for rural India.

Humne ease of living ki bhaavna ka vistaar ujjwala yojna mein bhi dekha hai. Ye yojna desh ke ghareeb mahilaon ko na sirf dhuyen se mukti dila rahi hai balki unke sashakrikaran ka bhi bada maadhyam bani hai: PM Modi #UnionBudget2018

— ANI (@ANI) February 1, 2018

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The Budget 2018 is a testimony to Prime Minister Narendra Modi’s commitment towards agricultural growth and farmers’ welfare.

Jaitley announced a series of amendments to the schemes implemented to uplift the agriculture sector and rural populace.   

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[tamilnewstamil]

தனிநபர் வருமான வரி விலக்கு உச்ச வரம்பில் மாற்றம் இல்லை: ரூ.2.5 லட்சமாக தொடரும் தனிநபர் வருமான வரி விலக்கு உச்சவரம்பு தொடர்பாக பட்ஜெட்டில் எந்த மாற்றமும் செய்யப்படவில்லை. உச்சவரம்பு ரூ.2.5 லட்சம் என்ற நிலை நீடிக்கிறது. #Budget2018 #UnionBudget2018 புதுடெல்லி: 2018-2019-ம் நிதி ஆண்டுக்கான மத்திய பட்ஜெட் பாராளுமன்றத்தில் இன்று தாக்கல் செய்யப்பட்டது. மத்திய நிதி மந்திரி அருண் ஜெட்லி தாக்கல் செய்த இந்த பட்ஜெட்டில் உள்ள அம்சங்கள் வருமாறு:- தொழில் தொடங்குவதை எளிமையாக்க 372 வணிக சீர்திருத்தங்கள் மேற்கொள்ளப்படும். பொதுத்துறை நிறுவன பங்கு விற்பனை மூலம் ரூ.80 ஆயிரம் கோடி திரட்ட இலக்கு நிர்ணயிக்கப்பட்டுள்ளது. வருமானக் கணக்கு தாக்கல் செய்வோர் எண்ணிக்கை தொடர்ந்து அதிகரிக்கிறது. வரி ஏய்ப்போரின் எண்ணிக்கை கணிசமாக குறைந்திருக்கிறது. கருப்புப் பண தடுப்பு நடவடிக்கைகள் மூலம் வருமான வரி வசூல் உயர்ந்துள்ளது. ஜன. 15, 2018 வரையிலான காலத்தில் நேரடி வரி வளர்ச்சி விகிதம் 18.7%ஆக உள்ளது. தனிநபர் வருமானவரி வருவாய் 12.6% அதிகரித்துள்ளது. 5 ஆண்டுகளுக்கு ஒருமுறை விலைவாசி ஏற்றத்திற்கு ஏற்ப எம்.பி.க்களின் ஊதியம் மாற்றியமைக்கப்படும். ஆண்டுக்கு ரூ.250 கோடிக்கு மேல் வருவாய் உள்ள கார்ப்பரேட் நிறுவனங்களுக்கு வரி குறைக்கப்படும். வேளாண் உற்பத்தி நிறுவனங்களுக்கு 5 ஆண்டுகளுக்கு 100 சதவீத வரிவிலக்கு அளிக்கப்படும். தனிநபர் வருமான வரி உச்சவரம்பில் மாற்றமில்லை. வருமான வரி விலக்கு உச்சவரம்பு ரூ.2.50 லட்சமாக தொடரும். வரி செலுத்துவோரின் எண்ணிக்கை அதிகரித்தபோதிலும், எதிர்பார்த்த அளவுக்கு வரி வசூல் ஆகவில்லை என்பதால் உச்சவரம்பில் மாற்றம் செய்யப்படவில்லை. மாத சம்பளதாரர்களுக்கு வருமான வரியில் நிரந்தர கழிவு வசதி மீண்டும் கொண்டுவரப்படும். இவ்வாற�� பட்ஜெட்டில் தெரிவிக்கப்பட்டுள்ளது. பாராளுமன்றத் தேர்தலுக்கு முந்தைய கடைசி முழுமையான பட்ஜெட்  என்பதால் வருமான வரி விலக்கு உச்சவரம்பு உயர்த்தப்படும் என்று எதிர்பார்க்கப்பட்டது. ஆனால், எந்த மாற்றமும் செய்யப்படாதது, வரி ��ெலுத்துவோருக்கு ஏமாற்றத்தை அளித்துள்ளது. #Budget2018 #UnionBudget2018 #tamilnews Source: Maalaimalar

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Supreme Court on Aadhaar linking deadline, Aadhaar mandatory for bank accounts, phone and subsidies on Business Standard. Know why Aadhaar is mandatory for bank accounts, mobile phones, pan and subsidies. For more details visit www.uidai.gov.in and find latest news on aadhaar linking and aadhaar benefits schemes.