Personal Finance Print

Your Queries – Loans: Top-up home loan: Use the money on that property only to get tax benefit

A top-up home loan is eligible for tax benefits under Section 80C and Section 24 if it has been utilised for acquisition/ construction of residential property or renovation of the said property.
You can split the EMI and take income tax exemption under Section 80C and Section 24, individually.

Mutual funds: Common platform for MF transactions soon

Initially, the Sebi proposed platform will do all types of non-financial transactions. Later, it may allow purchase, switch and sale of MF units

Experts say a consumer-facing website should be easy to navigate and ensure ease of investing.

Mind Over Medal: Shining the spotlight on mental health issues among athletes

Athletes push their limits every day to become better, but it comes at an immense cost. American gymnast Simone Biles pulling out of the team final at the Olympics, following Naomi Osaka’s withdrawa

In the past, a number of athletes have increasingly opened up about their oft-hidden mental struggles.

Life Insurance: Data analytics for customised solutions

Insurers will have to become digitally adept and offer customised solutions that are relevant to millennials’ specific life stages and savings-cum-protection asks

Insurance often faces the argument that there is relatively less scope of personalisation as compared with other goods.

Your Money: Eight steps to walk the financial independence path

The greater the gap between earnings and spending, the faster the net worth grows

To be sure, list down all your assets like bank accounts, investments, house and property, valuables, and your liabilities. The difference between what you owe from what you own is your net worth.

Your Queries: Loans – If PMAY subsidy loss less than gain on rate cut, go for balance transfer

There is no established timeline for the release of the PMAY subsidy. You will have to wait it out. Check if the floating interest rate applicable to you (sanction letter) is linked to the repo rate.

For a second sale, where the buyer is availing a home loan, the bank asks for property valuation certificate by their approved valuer.

Financial Planning: Women also need to plan for their retirement

Old age has specific implications for women as they often outlive men, devote less time in the workforce and participate in less-paid jobs

Your Money: Fixed income investors need to look at liquid funds now

The market witnessed a broad-based selling, seen across the maturity curve. Even the 10-year benchmark government bond, which was tightly held around 6% by the RBI, broke out of its shell.

Your Queries: Mutual Fund

10-15% of equity allocation should be in mid- and small-cap segment

Over longer horizons, equities tend to outperform most asset classes.

Your Money – Mortgage Loan: Default risk and pre-payment speed

The most uncertain part of a mortgage loan is the rate of pre-payment

The most uncertain part of a mortgage loan is the rate of prepayment.

Mutual funds: Swing pricing to restore trust in debt funds

Swing pricing will help reduce the first-mover advantage during high redemptions in debt schemes and materially reduce risk of run on the fund, says Sebi

As a result, existing investors are saddled with low quality paper difficult to sell as the secondary bond market in the country is not as liquid as the equity market and can absorb only a limited amount of paper on any given day.

Your Money – InvITs: A long-term investment avenue

The product feature to provide regular income could come in handy for investors planning their retirement portfolio

InVITs, mutual funds

Inflation impact on bond yields biggest risk to equity valuations: Rahul Singh, chief investment officer, equities, Tata Asset Management

Rahul Singh, chief investment officer, equities, Tata Asset Management, says certain pockets of small caps are looking overheated and arbitrage funds are a tax efficient way to earn fixed income yield

Tata Capital, mutual fund

Fewer new EPF registrations in May

This is owing in part to the pandemic, but a plateauing of the EPFO subscription base has been evident in recent months after the government's efforts at formalisation of the work force caused a jump

Similarly, only 5,72,634 new subscribers joined the scheme in May, down 22.8% from 7,41,270 in April, EPFO’s latest payroll data showed.

Your Queries (Loans): Top-up home loan has to be used for the property it is taken for

The subsidy approval sometimes takes long and in case the subsidy has not yet come in, you will not be able to avail of the same from HDFC.

Part of the subsidy will have to be refunded, as this is a case of foreclosure. You will be eligible for lower interest rate only from 2018 till now.

Your Money: Credit cards, BNPL or EMI cards — What’s best for you?

Credit cards offer up to 50 days of interest-free periods, EMI options on eligible spends, joining gifts, promotional offers, cashback, reward points, etc.

Equity market: Should excess cash holdings worry shareholders?

Investors need not worry as cash is conserved by companies for potential growth opportunities in the near future

Your Queries (Income Tax): Report mutual fund dividends as ‘income from other sources’ in ITR

Income from dividends is classified as income from ‘Other Sources’, accordingly, for AY 2021-22, the same may be reported in ‘Schedule OS’, under head ‘gross income chargeable to tax at norm

Further, there is no prescribed formal procedure for appointment of the karta in an HUF.

General Insurance: InsurTech firms can help build microinsurance products for all

While the need for permanent insurance cover (e.g. whole life insurance and health insurance) will always remain, people will continue to need special-purpose insurance in life.

Bank deposits insurance: Two ways to optimise coverage under DICGC

Spread your deposits across banks or open multiple accounts under different capacities in the same bank with up to Rs 5 lakh in each account to get maximum DICGC protection

Your Money: Where can you invest your emergency funds?

Invest emergency funds in a systematic manner to earn some returns without compromising on liquidity and without taking any undue high risk

Invest it in a systematic manner to earn some returns without compromising on liquidity and without taking any undue high risk.

Health Insurance: Insure against vector-borne diseases

A disease specific cover like vector-borne policy can be helpful if you don’t have a comprehensive cover with an adequate sum insured

Some insurers offer coverage for day care treatment, coverage of medical costs incurred up to 30 days during pre and post hospitalisation period and even automatic recharge of sum insured if it is exhausted due to multiple claims.

FDI limit in NPS fund managers hiked to 74%

The Pension Fund Regulatory and Development Authority (PFRDA) Act links the FDI ceiling in the sector to the same in the insurance sector.

The higher foreign investment limit in pension fund managers (PFMs) follows a Parliament nod in March to hike FDI limit in insurance business to 74% from 49%.
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