Dhaval Kapadia

Articles By Dhaval Kapadia

97 Articles

Your Queries – Mutual Funds: For liquid funds, check expense ratio, yield & credit quality of portfolio

For an investment horizon of three months or more, consider ultra short term funds as well, which with a slightly higher portfolio maturity / duration (3-6 months), offer higher yields.

For an invest-ment horizon of three months or more, consider ultra short term funds as well, which with a slightly higher portfolio maturity / duration (3-6 months), offer higher yields.

Your Queries: Mutual Funds – Is it safe to invest in international equity funds?

You can invest in international equity funds via Indian MF firms

Few of these funds also follow a passive investment strategy, wherein they track a particular global index.

Should I opt for a child plan or invest in a large cap fund for my daughters higher education? – Your Queries

Go for pure-play equity & debt funds to build corpus for kid’s education


Your Queries – Mutual Funds: Stick to your strategic asset allocation despite market volatility

Investors should ideally stick to their strategic asset-allocation which in turn depends on their risk appetite (ability and willingness to take risk) and not try and time the markets.

mutual funds

Your Queries – Mutual Funds: Is it advisable to redeem money as returns are going down?

Stick to strategic asset allocation basis risk appetite, time horizon

Since the lows of March 2020, equities have rallied sharply on the back of fiscal and monetary support, and optimism over global economic recovery amid vaccine roll-outs to mitigate the COVID-19 pandemic

Your Queries (Mutual Funds): Shift your corpus from regular to direct plans in a staggered manner

Switching from regular to direct plans is currently treated as a redemption, and hence the proceeds would be subject to tax.

mutual funds

Your Queries (Mutual Funds): Global funds offer a hedge against currency depreciation

International funds provide an opportunity to diversify your portfolio across geographies giving exposure to varied economic growth drivers.

Thus the investor loses out on any subsequent gains that he would have made on the dividends received till the end of his investment horizon.

Your Queries – Mutual Funds: Go for mix of debt and equity based on risk appetite, investment horizon

Since the lows of March 2020, equities have rallied sharply with benchmark indices almost doubling till date (as of January 12, 2021). The sharp rally has resulted in seemingly stretched valuations, which has toned down futur

The significantly low interest rates too present a probability of subdued future returns in case of fixed-income funds, if interest rates move up.

Your Mutual Funds queries: With markets at new highs, invest via SIP or STP. Keep risk appetite in mind

Higher the investment horizon and risk appetite, higher can be the allocation to equities, which have the potential to deliver positive real returns (more than inflation) over the long term.

In September 2020, SEBI released a circular mandating multi-cap funds to invest a minimum of 25% each in large, mid and small cap stocks.

Growth option of MF does not pay out dividends, hence NAV is higher

After the demise of the primary owner, all units are transferred to the nominee at the NAV prevailing on the day of the death of the primary owner.

Gold ETFs like other securities are traded in the secondary market and investors can buy and sell ETF units in the secondary market at any point in time.

Your Queries: Mutual funds ideal for investors as fund managers do the homework

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

Mutual fund investors do not require a demat account and do not have to shell out any other costs other than the expense ratio.

Your Queries—Mutual Funds: Switching from regular to direct plan is considered as redemption

Investors may also opt for the offline route by filling up the switch form and depositing it either at an AMC branch, or branches of registrar & transfer agents (R&Ts).

Want to invest in G-secs? Invest in gilt funds of mutual funds

To gain from a favourable tax treatment, investments in debt mutual funds should be at least over three year holding periods.

For holding periods of over three years, the ‘long-term gains’ are taxed at 20.8% (including cess) post indexation of costs.

Your Queries: Mutual Funds| Compare your debt fund schemes with category peers before switching

The RBI measures announced along with abundant liquidity in the banking system have resulted in yields falling substantially, particularly at the shorter end of the yield curve.

However, for new investors coming in the yields are relatively lower than those prevalent earlier.

Your Queries: Mutual Funds| Equities outperform fixed income in long run; go for SIP to create wealth

If a fund has been delivering below-average performance consistently, you may switch to a more consistent one.

It is advisable to invest via SIP which enables investors to average the cost of his investments.

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.
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