Today Update

What are SIPs and how it helps in wealth creation? As we have already discussed in my previous blog about SIP Investments, I am sharing below post as reminder. Over the past twenty years or so, mutual fund  systematic investment plans  have gained tremendous popularity and have one of the most favored investment choices for retail investors in India. There are a number of advantages in the SIP mode of investing:- The biggest advantage SIP is enabling disciplined investing from your regular monthly savings. You do not have to wait to accumulate a large savings corpus to start investing in mutual funds. You can start with a SIP of just Rs 1,000. Investing small amounts systematically over long periods of time can create substantial wealth for investors through the  power of compounding . We will discuss power of compounding in more details later in this post. The second major advantage of SIP is the  convenience ....

REIT (Real Estate Investment Trust) is just like mutual funds that collects money from investors and invest in real estate properties both commercial and residential to generate fixed income through rents. Simply put, with REITs, investor can invest in real estate without owning it physically. REIT can earn rent on monthly, quarterly, half yearly or yearly basis. In India, REITs pay dividend on half yearly basis. REITs can invest in properties that are completed or 80 percent completed. REIT is relatively new in India but well known in developed markets such as US. In 2014, SEBI came out with regulations on REITs, which was last amended in April 2018. Recently, SEBI has reduced minimum investment amount in REITs from Rs.2 lakh to Rs.50,000 to attract retail investors. REITs are liquid as investors can buy or sell units of REITs on stock exchange platforms such as NSE and BSE. Structure of REIT Like an AMC, REITs too require sponsors to establish the trust. Other key stake...

If you are averse to taking risk (a conservative investor) and want to earn assured returns from a tax-saving instrument, these are your options: Public Provident Fund The  Public Provident Fund  or PPF is a scheme is framed under the Public Provident Fund Act, 1968 and is a government-backed long-term saving scheme. It is one of the safest investment instruments---the money invested in a PPF account remains safely yours for life! For this reason, PPF is one of the most popular investment avenues in India today, not only for tax planning but even for retirement planning. PPF enjoys a favourable tax status, i.e. Exempt-Exempt-Exempt (E-E-E). This means, contributions are eligible for tax deduction under Section 80C, the interest earned is tax-free, and maturity proceeds are exempt from tax. However, money invested in PPF is subject to a lock-in period of 15 years. During this tenure, you earn a decent tax-free rate of return (currently 8.0% p.a. compounded annually) ...