Showing posts with the label Tax

ETF vs Mutual Funds

ETF vs Mutual Funds Nowadays, Mutual Funds are the favorite one among most of the people. Bank Interest rates are ticking down and the India Inflation rate also around 3 - 4 %. Many of us, keen to invest in mutual funds with a simple knowledge or as plain (Not known). Last week, one of the reader requested an answer in  , Is it the time to invest in mutual funds and how the mutual funds differ from ETF (Exchange Traded Fund). I had posted my answer on reply. So, that's why i am looking here to share the related information in my blog about ETF and mutual funds. Generally, Mutual funds categorized as Two:   Debt Funds Equity Funds Debt funds are good, if you are looking like as a Bank FD (Fixed Deposit) or RD (Recurring). It gives a solid returns more than the Bank deposits. Indexation Benefit also available on LTCG (Long term Capital Gains), if you hold more than 3 years. Similarly, Equity funds have a LTCG benefit, if you hold on your investment more than one year

Adjusted Returns on Investment

Adjusted Returns on Investment   If someone asking you,  What is your monthly pay check or Salary ? Then, we are hesitated to tell or show the exact numbers on salary, even after our deduction from salary :) . We are thinking about that we are protecting our income numbers ! That's not a matter, either showing the pay slip or not. But, on our Investment info, we have to be careful about the returns on numbers we earned it. We just enjoying to show this much returns i had on my investments or I had a profit of XXXXX from my investments. But, do you know what is your real returns received on your hand ? Returns on Investment can by type of: Inflation Adjusted Tax Adjusted Risk Adjusted From the previous article, we have seen that about the difference between Real Rate and Nominal Rate of Return. It clearly indicates that we must aware about the Inflation, it hurts our retirement planning and Goal based investments. For Example,  If our Return is 10 % from the investment amo