Dhaval Kapadia

Articles By Dhaval Kapadia

68 Articles

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 News

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. News

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 News

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

Money News

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.

Money News

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. News

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

Money News

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  News

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  News

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.

Income Tax News

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.

Markets News

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 News

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 News

Build retirement kitty by taking assets allocation approach in MFs or invest in NPS

You can withdraw unless invested in a fund with a lock-in (ELSS, retirement/child plans). However, each investment amount may be subject to exit load if under the exit load period.

Money News

For good returns, equity investment should be held for these many years

A longer horizon allows a fund manager to stick to stocks wherein he has high degree of conviction, which may need time to play out depending on the stage of the economic cycle.

Sriram City Union Finance, NCD, NBFC, MSME, MSME financiang, industry news

Short duration accrual fixed income fund can give higher yields than FD

If a fund has been performing poorly on a consistent basis, you may switch to a better performing one.

highest bank fd rate, senior citizen fixed deposit, fixed deposit, mutual funds, smart investment, how to invest money, SIP investment News

Each SIP installment is fresh purchase; check exit load when redeeming

If one is investing Rs 1,000 through monthly SIP in a fund that charges an exit load of 1% for holding period less than one year and now wants to withdraw towards end of two years, then investments made in the first 12 months

SIP,  SIP installment, KYC, Aadhaar number, education loan, loan, personal loan, savings News

Investing in debt funds? Go for high credit quality portfolios

Equity funds are inherently more risky than debt funds, as is evident from the volatility that they have historically subjected investors to.

investing debt funds, maturity bond funds, RBI Monetary Policy Committee, Interest rate, maturity bonds, monthly News

Choose fixed maturity plans investing in high grade credit paper

The realised return (yield) can be computed by plotting the cash flows against respective dates in an excel spreadsheet; and using the XIRR formula.

income tax, income, investment News

To get pension, buy annuity from an insurance company

Is there any way where I can invest in mutual funds now for 30 years and get pension later? – Shekhar Kumar No, for a regular pension, you would have to purchase an annuity from any of the insurance companies. Do I have to

pension schemes, pension schemes private, mutual fund, yearly insurance, insurance company noida, insurance company delhi, insurance News

SIPs are best-suited for investments in volatile markets

SIPs are best for investments in volatile markets. Hold your investments for at least seven years to eliminate risk of capital erosion. Longer the investment horizon, higher the probability of making money.

SIPs are best-suited for investments in volatile markets News

Here’s what you need to do in a volatile market

Funds within each category have a similar investment mandate which determine their risk and return characteristics. Small/ mid cap funds are suited for a horizon of at least 7-10 years, whereas large cap funds are suited for

Money News

From liquid funds to equities: Use systematic transfer plan to move funds

In an STP, your money earns higher returns in the liquid fund relative to your bank account, and is then invested into the fund based on the STP schedule.

Money News

By reducing SIP, you can’t buy units at lower prices, says Dhaval Kapadia

The main benefit of SIP is rupee cost averaging, an investment technique applied to regular fixed instalments. As the amount is fixed and regular, more units are bought when the market price of shares is low and lesser units

By reducing SIP, you can’t buy units at lower prices News

Returns posted by fund houses are subject to audit

Equity index funds invest in stocks by typically replicating a benchmark equity index such as the S&P BSE Sensex, Nifty, etc.

Money News

Probability of negative returns reduces long holding period, says Dhaval Kapadia

The probability of negative returns is the highest for a one year holding period and over a seven year holding period the probability of a negative return from Indian equities (Sensex) is negligible.

Money News

Do not reduce/stop SIP due to market volatility: Dhaval Kapadia

Mutual fund units can be transferred only after the demise of the unit holder.

market volatility, SIP, SIP amount, Mutual fund, stock markets, tax free bonds, stock exchanges News
Income Tax Calculator, Budget 2019, How to Calculate Income Tax


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