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Dhaval Kapadia

Articles By Dhaval Kapadia

82 Articles

Is it good time to invest in gold ETFs now as prices are rising?

From an asset-allocation standpoint, it is advisable to have some allocation to gold for diversification benefits at any point in time.

Your Queries – Mutual Funds: Equities deliver higher inflation-adjusted returns over the long run

Equities are more volatile than most asset classes, and returns are not assured as is the case with bank FDs, with even a possibility of loss of capital invested.

Investing in mutual funds? Here’s how you can diversify your portfolio

Investing through a bank would be under the regular plan route, as your application form would have the bank's ARN number (Amfi Registration Number) implying the bank is the distributor for the particular transaction.

Gold ETFs do not have any lock-in period.

Your Queries: Franklin Templeton debt fund crisis does not impact its equity funds

In the last week of April 2020, Franklin Templeton Mutual Fund announced its decision to wind up six of its fixed-income schemes.

The Franklin Templeton debt fund crisis does not impact its equity funds, which would continue to function as before.

Mutual Funds: Invested in credit risk funds? Shift to safer banking and PSU funds

You should evaluate the current portfolio of the fund to understand the extent of holdings in various rating buckets, such as AAA, AA, A rated, etc., and cash holdings.

The sharp markdowns have resulted in heavy redemptions by investors over the past year, with a few funds witnessing signi-ficant erosion in their AUM (>40%).

Tax savings not needed? Then switch to non-ELSS funds or NPS

Tax savings not needed? Then switch to non-ELSS funds or NPS

Investment in ELSS funds qualify for tax deductions under the old tax regime, of up to Rs 1.5 lakh under Section 80C, in a given financial year. 30th june 2020 is the deadline for these money related tasks, complete these financial task before June 30, itr, pan-aadhaar linking, tax saving

Mutual Fund withdrawal: How can I withdraw money from SIP during COVID-19?

SIP enables an investor to average out the cost of his investments via disciplined purchases, particularly when the market is down.

Mutual Fund SIP, covid 19,cash crunch, how to withdraw money from SIP, mutual fund, equity MF, SIP returns

Remain invested in equities via SIP if you have a long-term horizon

Equity markets in India and across the globe have corrected sharply on concerns over global growth amid the coronavirus outbreak.

Provident Fund Query: Contributing 100% of Basic Salary to VPF; Is it eligible for Section 80C deduction?

VPF is the voluntary contribution by employees towards their provident fund account over and above the 12% contribution towards EPF.

VPF account offers the same interest as the EPF (8.5% for FY20) which is revised annually.

Mutual Funds: You can opt for lower equity scheme in NPS as per risk profile

Gold plays an important role as a diversifier in a portfolio due to its less than perfect correlation with other asset classes.

Your Queries: NRIs can’t adjust TDS on capital gains against basic exemption limit

You may avoid double taxation on your income by claiming tax relief if India has signed the Double Taxation Avoidance Treaty (DTAA) with the country of your residence.

Long-term gains are subject to a TDS of 10% for equity-oriented investments, and of 20% post indexation for other than equity-oriented investments.

Mutual funds: Exiting equity now may lead to missing out on any recovery subsequently

As of February 29, 2020; equities outperformed gold over the trailing 10-, 15- and 20-years, delivering annualised 10.39%, 13.89% and 12.0% respectively compared with 8.16%, 12.59% and 11.49% respectively delivered by gold.

Equities have outperformed other asset classes over long holding periods, despite experiencing similar corrections in the past.

Mutual Funds: Stay invested in equity if you have a long investment horizon

Regulations define specific structures / entities within mutual fund companies to safeguard investor monies from issues such as fraud, etc.

SIPs are a mode of investment facilitating regular investments, enabling an investor to average the cost of his investments.

Your Queries: Continue SIP when markets are falling to benefit from lower price

More units are bought when the market price of shares is low and lesser units are bought when the price is high.

Hence, you should continue your SIP as reducing the SIP amount would deprive your portfolio of buying units at lower prices.

Your Queries: Mutual Funds -Balanced funds, hybrid funds can switch between equity & debt

Gold ETFs investors can exit only by selling to secondary market participants on the stock exchange.

Your Queries, Mutual Funds, Balanced funds, hybrid funds, Gold ETFs investors, stock exchange, Sovereign Gold Bonds

Your Queries: Equities tend to deliver positive inflation adjusted returns in long run

Investment gains (in absolute terms) depend on the principal corpus invested and the returns delivered by the fund. Returns are a function of the performance of the asset class invested in.

At a fund level too, the performance has been subdued with the median SIP return for the large-cap category being 4.09%, while that for the mid and small-cap categories being 2.81% and -1.67% respectively.

Units are redeemed on FIFO basis for capital gains

Units are redeemed on a First-In-First-Out (FIFO) basis, i.e. the earliest units purchased would be considered for computing the capital gains (selling price less cost price) and classifying gains as short term / long term.

Cholamandalam Finance, CIFCL, masala bonds, CDC Group Plc, CDC Group plc, UK Government, MSME sector

Your Queries: NAV of gold ETF based on gold prices, number of units in ETF

The NAV of gold ETFs as disclosed by mutual funds in based on the prices of the underlying assets and the number of units in the ETF. However, since the gold ETF trades on the exchange throughout the day, its price is depende

Bharat Bond ETF more tax-efficient than bank FDs

Investors taking the F-o-F route (exit load of 0.1% for 30 days) would be able to redeem directly with the mutual fund, with minimum redemption amounts as low as Rs 500.

Your queries: Equity MF proceeds credited on T+3 days basis

An SIP is a mode of investment enabling an investor to average out the cost of his investments across his investment horizon.

A few mutual funds offer half-yearly as well as annual SIP option to investors.

Your Queries: Mix of equity, debt assets must to optimise portfolio performance

An asset allocation-based approach is one of the key determinants of a portfolio’s performance

Do mutual funds deduct tax on dividend income or capital gains? Your queries answered

Most science fiction is not predictive. Yet it can still be a guide to the future

Mutual Fund,Net inflow, equity fund, Mutual Fund inflow, SIP 

Want to invest or withdraw? This may help you

For portfolio construction, asset allocation-based approach should be followed.

SWP, SIP, Foreign Asset, Indian investor, SEBI, Global Equity Mutual Funds, LTCG, debt funds 

Capital gains tax rate depends on holding period

For holding periods of more than one year in equity mutual funds, long-term capital gains tax at 10% (excluding cess) is applicable on gains exceeding Rs. 1 lakh in a financial year.

Hold debt funds for three years to get indexation benefit

Continue your SIP as reducing it would deprive your portfolio of buying units at lower prices.

Gains from sale of gold ETFs or gold mutual funds are taxed similarly as that of physical gold

Short-term capital gains on units held for up to three years are added to investor’s income and taxed according to the applicable slab rate.

sip, mutual funds, SIP purchase instalment, NAV

Mutual Fund Investment: Why you should invest in direct plan of mutual fund

Since there is no intermediary involved, the AMC does not have to pay any commission or trailing fees. A regular plan is bought through an intermediary who helps the investor understand the investment strategy of the fund, fi

Investment, direct plan, mutual fund, expense ratio, mutual fund plan, LTCG, AMC
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