Blog about Financial Education, Advisory & Planning
Markets are trading with a negative bias as index hit fresh 52-week lows ~15,300 NIFTY levels. Higher interest rates & inflation globally have led to fears of stagflation. RBI increased repo rate by 50 bps on 6th June while FED increased rates by 75 bps on 15th June, the highest hike since 1994, to control …
RBI raised repo rate by 50 bps to 4.90% in the June RBI Policy. Thus repo rate has been increased by 90 bps in the last one month. MPC vote was unanimous and has decided to keep stance withdrawal from accommodative. MSF Rate & Bank rate has been increased to 5.15% from 4.65%. Inflation is …
Markets corrected sharply over the last fortnight as higher interest rates & inflation globally have led to fears of stagflation. Stagflation refers to an economy that has inflation, a slow or stagnant economic growth rate, and a relatively high unemployment rate. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment. …
In an off-cycle meeting, the RBI raised the policy rate by 40 bps to 4.40%. Consequently, the SDF rate was increased to 4.15% and MSF rate to 4.65%. Yesterday’s surprise move is perhaps instigated by a couple of factors. Firstly, the 50 bps FED rate hike which came yesterday night. Secondly, the upcoming April inflation …
The Union Budget 2020-21 was presented on 1st February 2020 amidst a very challenging economic environment. Although it was not acknowledged explicitly, the budget appears to have realized the fiscal limits. Not surprisingly then, it did not excite the market, where expectations were running very high. There were evidently a lot of expectations from the …
Last month, the Finance Minister announced a spate of bank mergers. This consolidation will bring down the total number of public sector banks (PSBs) in the country to 12 from 27 in 2017. The question on everyone’s mind is how this will affect customers & what action customers need to take for a smooth transition. …
Income Tax Department strives to make it as easy and convenient for citizens to comply with advance tax payments. So, one has the option of paying it in 4 installments over the financial year. However, if you default, there are some consequences in the form of interest penalty. While salary is subject to tax withholding …
Pay advance tax on personal income- save interest Read More »
Bond investors have been hit hard over the past one-and-a-half year. For those in fixed deposits, the interest rates have been low and bonds/debt fund investors have been hit by tepid returns on account of rising bond yields. Currently the preferred strategy remains corporate credit, with exposure to both accrual and credit opportunity strategies. The 10-year …
A debt mutual fund holds debt instruments, and these instruments pay a particular coupon (interest). An accrual strategy is holding a bond, earning the interest due, collect the principal at maturity and reinvest it in fresh bonds. Liquid funds, ultra-short term funds, short-term debt funds, income funds and credit opportunity funds primarily follow an accrual …
Debt Mutual Fund: Duration Funds vs Accrual Funds Read More »
Owning your own house is every man’s dream. It is a necessity & nothing beats it if you can also save some taxes in the process. Buyers can claim income tax deduction on both the principal repayment & the interest payment under different sections of the IT Act. Tax Deduction on home loan Interest: (Section …