Blog - VSRK Capital | Trusted Mutual Fund Distributor & Financial Advisory Services

January 31, 2020

Tax Planning: Best Tax Saving Options For Salaried Employees in 2020

As this financial year is close to its end, one thing that comes to every individual’s mind is the phrase ‘Tax Liability’. On the other hand, given a choice, most of us wouldn’t even want to pay tax on the income we earn. But we should. As citizens of India, it is our rightful duty to pay taxes as we are also consumers of the country’s public infrastructure and facilities, and income tax is an important source of revenue for the government. So, it is our responsibility to contribute towards building and maintaining the public infrastructure. Paying income tax and filing income tax returns on time ensure that.

However, this amount of tax levy payable often consumes a large chunk of our disposable income but if we are smart enough we could save huge amounts of the same. Since, such amount of taxes paid are often high it is sensible to plan it before-hand.

According to the Income Tax Act, 1962 you can make certain investments and expenses which are in turn deducted from your taxable income.

Following is the list of ways how you can actually save tax by spending smartly:

Making an investment under Sec 80C (Limited to Rs 1.5 lakh) to reduce your taxable income
Buy Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical insurance premium under Section 80D
Invest in various funds such as the ELSS funds, National Pension System (NPS), 5-Year Bank Fixed Deposit, Public Provident Fund (PPF) and National Savings Certificate
Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE

What are the Investment Options under Sec 80C?

Section 80C of the Income Tax Act, 1962 is one of the most sought after sections as it grants deduction of various expenses. It provides many tax-saving options available mainly to individuals and HUFs in India. However, this deduction is limited up to Rs. 1.5 Lakh.

This section includes deductions payments made in regards to:

Life Insurance
Sukanya Samriddhi Yojana
Home Loan Principal Repayment
Investments made toward long-term government-approved infrastructure bonds.
Investments made under a government-approved equity savings scheme.
Payment of tuition fees
Contribution towards gratuity and EPF

Other Tax Savings options beyond Sec 80C

You might be surprised to know that alongside deductions in the amazing section of 80C, there are various other deductions which you can claim under Section 80 to save on income tax.

Following is the list of a few such:

Expenditure on Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical insurance premium
Deduction up to Rs 50,000 on home loan interest under Section 80EE
Payment of home loan and related interest.

5 Best Investment Options for a Salaried Person

There are various tax saving options for salaried persons available in the market, eligible for deduction in tax liability. Some of them are mentioned as follows-
Investment in fixed deposit and recurring deposits
Fixed Deposit and recurring deposits are one of the most sought after tax saving options, considered as the safest by its investors. In fixed deposit a lump-sum amount of money is kept aside for a specific period of years on which the investor earns an pre-stated amount of interest. Whereas, recurring deposit refers to the investment option where the user invest a small amount of money like INR 500 per month and owns returns in the form of interest on the maturity of the policy. One can save taxes under Section 80C by investing in tax-saving FDs. However, interest earned is taxable as per tax slab of the depositor. These tax-saving FDs come with a lock-in period of 5 years.

Investment in Mutual Funds

Mutual funds investment have started gaining much popularity due to its characteristics such as high liquidity, diversification of risk and management a professional. Mutual fund is a financial instrument where different investors pool their money for set objective. search fund is managed by a profession portfolio manager or an asset managing magic company (AMC). They offer multiple types of mutual fund options to invest in and each has their own objectives. Due to its various benefits and eligibility for tax deduction some advisors also call them as the best tax saving option. You can either make a lump sum investment or you can start an systematic investment plan (SIP). you can start your SIP with just INR 500 and for making lump sum investment you need to invest at least INR 5000.

Investment in Public Provident fund

Public Provident fund (PPF) is one of the tax saving options which is there in every tax advisor’s tax saving tips. PPFs are another type of safe investment options with almost zero risk because of the sovereign guarantee from the government. Here, the investor has the option to open an account and invest money for a set period of 15 years. The Finance Ministry reviews the interest rate every financial quarter basis the government bond yields. Maximum limit to invest in PPF is Rs 1.5 lakh in a financial year while the minimum amount is Rs 500. Unlike recurring deposits here you are not required to invest on an recurring basis. The investors can put in money whenever he finds suitable. The amount of the deposit can also vary time to time.

Investment in National Pension Scheme (NPS)

The national pension scheme is also being called the best saving plan available in the market as this amount is absolutely tax free. It is also one of the safest investment options because it is backed directly by the central government of India. Although, it is available for all the people but however it is mandatory for all government employees. one can start investing in NPS withy just INR 6000 annually or INR 500 monthly. The affordability and eligibility of tax deduction has made NPS one of the highly sought-after investment options.

Investment in Unit linked Insurance Plan

ULIP is an insurance plan which provides cover for its policyholders along with options to make qualified investments. It provides dual benefits to it’s Investors, wealth and insurance. Such plans are a hybrid of insurance and market linked investments. One part of the premium is invested towards ensuring your life while the other parts are invested and stocks add other financial instruments. Such plans have a locking period of 5 years. These investment plans are also eligible for tax deduction under section 80 C and are considered good for tax saving options for salaried persons.

December 8, 2019May 30, 2025

5 Reasons you need a Financial Advisor

Health is wealth. Good health is not just the absence of any illness, but complete physical and mental wellness of an individual. In this blog, we’ll discuss why you need a Financial Advisor

In today’s world, stress affects both physical and mental health, and one contributor to stress is the state aof n individual’s finances.

We all have financial goals we want to reach, and savings just don’t cut it. It’s important to invest. While we invest, how do we know we’re doing the right thing for our goals?

Here’s where your financial doctor, or advisor, comes into the picture. Just like you need a doctor for your physical or mental health, you need one for your finances, too.

So, how can your financial doctor help you?

1. Understand your financial health –Your financial advisor will work with you to assess your current financial health – your assets, liabilities, income, and expenses. He/she will also consider any expected future obligations (insurance, taxes, other long-term expenses) and sources of income (pension, gifts, etc.) to get a complete picture of where you stand.
2. Assess your goals –Once your advisor maps out where you stand, he/she will understand your investment goals, time frame, and risk appetite. An understanding of risk appetite will allow your advisor to determine your asset allocation. He/she will also assess your retirement needs at this stage. Invest now
3. Build the financial plan –The next stage is where your advisor charts out a comprehensive financial plan for your goals. This plan will include details such as where to invest, how much to invest, and for how long to invest. He/she has the expertise to understand how all these products will work in tandem for you to achieve your goals. The plan will also look at your retirement plan, your projected withdrawal rates during retirement, and have the best- and worst-case scenarios for your expected lifespan. If you’re already investing for your goals, your advisor will review your current habits and suggest a course of action. If you’re investing without goals in mind, your advisor will help you allocate your existing investments for your goals. Read why goal-based investing is important here. Once your plan is ready, it’s on you to implement it.
4. Help you understand where you’re investing –When building your financial plan, it is important to understand the products you’re investing in. The pros and cons, how it fits in your portfolio, what it can do for you – your advisor will help you with this.
5. Regular reviews and adjustments –It’s a good idea to revisit your investments regularly to check if you’re on track, review what you’re doing, and see if you need to adjust your plan to incorporate new goals or modify/remove existing ones. Depending on your needs, your advisor will suggest changes to take you closer to your goals.

Financial advisors are the doctors you need for your financial health. With their expertise, you can get the best out of your investments.

December 8, 2019November 27, 2024

7 bonus ideas you need in your life!

It’s the end of another financial year, and many of you will be receiving your annual performance bonus. Exciting time, isn’t it? I bet you’ve got fantastic plans of how to splurge it. I’ve got them too, with a little boring, but necessary checklist I thought I should share.

I hope that maybe it helps you too. Without further ado, here’s 7 bonus ideas you need in your life.

Pay off debt:Credit card bills, student loans, vehicle or home loans, you could have any of these. It might be a good idea to pay these bills and also set aside some money for any future loans you may be considering. This will minimise the principal amount you owe and you can save on hefty interest payments.
Add to your retirement fund:Your retirement may be a long way off, but no one tells you it’s one of the first goals you should start saving for. Why? Look at cost of living today. If you spend 30,000 a month today as living expenses, 20 years down the line assuming inflation is at 6%, you’ll be spending 1.72 lakhs a month. Start putting aside a little by little with a Systematic Investment Plan in mutual funds to build wealth for your retirement. You can also invest in NPS and PPF for relative safety. Use a retirement calculator to figure out how much your SIP amount should be.
Build an emergency fund:Life is unpredictable. So, isn’t it a smart move to be prepared? You may lose your job, or your company isn’t doing well and can’t pay salaries, or for some reason, there is little or no income. It’s ideal to have at least 6 months of expenses saved in an emergency fund. Do not touch this unless it truly is an emergency. Consider a liquid fund for this. Frivolous purchases are not emergencies and can be planned.
Invest for longer term, big ticket goals: You’ve got a lumpsum in hand, why blow it all up now? You may want to purchase a car in the future, make the down payment on a house, fund your child’s higher education, or even start a business. Whatever your goal may be, no matter how far, start setting aside funds today for it. You can even start a SIPin mutual funds. Time and compounding will work for you.
Get insurance: Ever considered who will take care of your family should anything happen to you? Get a term plan to secure your family financially in case you die. The earlier you get it, the lesser the premiums cost. Don’t delay this until next year.
Buy health cover for your family: Health is wealth, and when your bonus can help you secure your family’s health, why not? There could be a time when your employer’s health cover may not be enough to cover all expenses. Consider purchasing a family floater health plan.

Invest in yourself: An investment in yourself is the best investment. Take a course, learn a skill, join the gym, read! Meet people, socialise, and don’t forget to have fun. You’ve earned it.

December 4, 2019November 27, 2024

Breaking Down Debt Mutual Funds

Debt mutual funds are those that invest in fixed income instruments – such as corporate and government bonds, overnight securities, corporate debt securities, money market instruments etc. These funds are ideal for investors who are averse to risk and seek to generate regular income.

Debt funds are a good tool to use if you want steady income with low volatility and higher than bank returns. They also come with greater tax-efficiency than these products. We’ll address the advantages of debt funds and compare them with similar products in another article.

Let’s look at how SEBI has categorized debt funds.

Overnight Funds

These funds invest in overnight securities having a maturity of 1 day. They are the least risky of all debt fund categories, and this low risk comes with low returns. How these funds work is that at the beginning of each day, the AUM is invested in overnight securities, and since they mature the next day, the fund manager can buy fresh overnight bonds the next day using the principal and return earned. NAV of this fund will increase little by little over time. The advantage of this is that changes in the RBI rate, credit rating of the borrower do not affect your investment.

Liquid Funds

Liquid funds invest in debt and money market securities such as treasury bills, government securities, call money with a maturity of up to 91 days. These are a good tool to use to park surpluses and to build an emergency fund. These can also be used to transfer that surplus to an equity fund using a Systematic Transfer Plan (STP). What’s interesting to note is that some liquid funds even come with an instant redemption facility.

Money Market Funds

Money market funds invest in money market instruments such as commercial papers, certificates of deposit, treasury bills, repo agreements of the highest quality with a maturity of up to 1 year. These are suitable for investors with low risk appetite and an investment horizon of at least a year.

Corporate Bond Funds

Corporate Bond Funds invest in debt instruments issued by companies. These instruments comprise of the highest rated bonds, debentures, commercial papers and structured obligations. Minimum investment in corporate bonds by these funds is 80% of the AUM. They are suitable for investors with an investment tenure of 3-5 years.

Credit Risk Funds

Credit-risk funds are debt funds that invest at least 65% of total assets in papers rated less than AA (not of the highest quality). As these funds take on more risk than most other debt funds, they come with the ability to generate higher returns too. It is suitable for investors who can assume high risk and have an investment horizon of at least 3 years.

Banking and PSU Funds

Banking and PSU debt funds invest at least 80% of their corpus in debt instruments of banks, Public Sector Undertakings and Public Financial Institutions. They come with low risk and are suitable for investors who have an investment horizon of 1-2 years.

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Duration funds

Duration funds invest in debt and money market instruments that have different maturities. Based on the maturity of instruments, they are classified into ultra-short (3-6 months), low duration (6-12 months), short duration (1-3 years), medium duration (3-4 years), medium to long duration (4-7 years), long duration (7+ years). The longer the tenure of the fund, the higher its ability to take risk. Investors in these funds should invest if the maturities are in line with their investment horizon as the fund will take this time to give an investor his principal and the interest owed to him (Macaulay duration) for investing in the fund.

Dynamic Bond Funds

Dynamic bond funds invest in instruments with varying durations. These are actively managed funds and are suitable for investors who find it difficult to judge interest rate movement and have an investment horizon of 3+ years. This is because these funds hold securities with reducing portfolio maturity when interest rates rise and increasing portfolio maturity when interest rates fall.

Gilt Funds

Gilt funds invest at least 80% of their total assets in Government securities (G-secs). These are issued by central and state governments across various tenures, both long and short. They usually have no default risk as these are government backed. They do come with higher interest rate risk for instruments with higher maturities. These funds are suitable for investors with an investment horizon of 3+ years and benefit the most in a falling interest rate environment.

Gilt Fund with 10-year constant duration

Gilt funds as discussed earlier invest in government securities. In the case of funds with a 10-year constant duration, assets held in the fund have a Macaulay duration of 10 years and are suitable for investors with this investment horizon in mind.

Floater Funds

Floater funds invest a minimum of 65% of assets in floating rate instruments and the rest in fixed income securities. Floating rate instruments are those that don’t have a fixed interest. If interest rates rise, the interest from these funds also rise immediately. These funds invest in securities that have medium to long-term maturities.

Fixed Maturity Plans (FMPs)

FMPs are passively managed close-ended funds, where investments are held to maturity. These can be considered as an alternative to FDs as they have the potential to deliver FD beating returns. Another advantage they have over FDs are that they come with better tax-efficiency. We will discuss tax-efficieny of mutual funds in another article.

November 4, 2019

5 Things To Know Before Hiring Financial Advisor

Who is a financial advisor?

A financial advisor is an investment professional who is an expert when it comes to managing your saving and other investment related problems. They help you to draw up investment plans, choose the best investment alternative amongst the pool of choices available and enable you to fulfill your wealth related objectives.

Why to consult financial advisor?

Ever tried flying an aircraft on your own? Some of you might have yes as an answer which has been supported by years of intense training and experience of flying a plane. Managing your wealth could be just the same as flying an airplane.

If you know how to fly it you’d be in the clouds but if you don’t your life could be at high risk so it is advisable to let the pilot handle the yoke. Similarly, if you lack the necessary skill & knowledge of managing investments you should consider a financial planner.

There are a lot of changes in the ever changing market; a majority of individuals are unable to understand the dynamicity which usually causes a major loss to the investors. Therefore, a financial planner is one that you should consider before investing your hard earned money.

Following are the list of factors that you should consider before appointing a financial advisor.

Decide whether you need a financial advisor

Considering a financial advisor is always a good thing to go for, but the advice usually carries a brokerage or commission. This decision normally depends upon the investor’s knowledge, education and other related factors. If you have a strong knowledge of the fields of finance and generally keep yourself updated you might skip the option of hiring a financial advisor. Otherwise it is highly recommend considering a financial advisor.

Find a Reputable Advisor

Before consulting a financial advisor, you must check his reputation, feedback & reviews of the past and current clients. There are a lot of financial advisory firms available in the markets which have good repute and a loyal customer base which makes your investment safer.

Past performance of the financial advisor

Before investing your hard earned money you should be aware of the past tracking records of the financial advisor. A lot of people are shy about asking for proof that whether their financial planner actually has a successful track record managing accounts.

The Education Level & Certifications of the financial planner

The government has various certification & education bodies which skeptically check the competence of the financial planner. Such certifications are an assurance that the individual which you are referring to is a genuine expert in the fields of investment and has a better command over understanding the dynamics of the market.

Know when to consult a new advisor

There could be a lot of possible situations where you might want to shift to a new financial planner in place of the current one. A good advisor is one which understands your investment needs, has multiple conversations with you, discussing your long term goals and assessing your plan. If you feel that your advisor is not able to serve to your expectations, give good suggestions or is unable to help you achieve your investment objectives you should consider a new business planner.

Who is VSRK?

VSRK is one of the financial advisory firms in Delhi, giving advisory on mutual funds, life insurance, general insurance, pre-IPO, PMF, IVF and other structured financial products.

Why should you choose us?

Here at VSRK we advise about your financial needs at different level of your age, be it for your child’s education, pension plans, medical insurance plans or making huge investments for profitable businesses. That’s what makes us one of the best financial business planners in Delhi.

Our awards

VSRK has been a member of UTI Mutual Fund Chairman Club since 2008.
VSRK has been awarded as wealth management firms in Delhi by Pan India in Distribution of UTI Mutual Fund products in IFA Category for the year 2009-2010.

VSRK has also been awarded IFA Category WEALTH FORUM Advisor Award – 2010 for Highest Growth in AUM Equity + Hybrid), North Zone – Delhi Region for financial business planner in Delhi.

September 26, 2019

Why are the Corporate Giants Opting Out of the New Tax Cut-Off Scheme of Modi 2.0?

Story till Now

To stir up the economy, the Union Finance Minister, Nirmala Sitharaman has announced heavy tax cut off wherein the effective tax rate of around 35% has been reduced to mere 25%. On top of that, the tax rate for new domestic firms and new manufacturing units that set up in India, starting in October and commence production before the end of March, 2023 will be taxed at an effective rate of just 17%.

This announcement of the Central Government has been received with great enthusiasm by the market as the Sensex hiked up by 1900 on Friday and 1300 points on Monday. This decision, although would cause a revenue loss of around Rs. 1.5 lakh crore to the Union government, is being considered a much needed support by the government to support the falling economy.

Will the benefits of tax reduction be transferred to Consumer?

This move has been praised by all the business related community and has attracted investors. The tax-reduction, normally, results in lower costs and thereby higher demand for goods or services and ultimately resulting in the treatment of ailing demand. However, for now, it is rational to assume that the Businesses will not be transferring the benefits to the customers. The benefits from such tax reductions might be used to recover the losses that the organizations have faced because of the stagnant demand.

Recently, nearly every sector was affected by the poor demands and caused huge losses to the Indian market, resulting in loss of jobs and huge unemployment. So, we assume that the benefits would be definitely but not immediately transferred to the ultimate consumers, i.e. once the companies are have made good all the losses incurred by them in the past few months.

How is the corporate industry reacting for the same?

As stated above, this has provided benefits to the organizations by reduced tax slab and even higher market evaluation for most of the Companies. Although, now the corporate have the option of opting lower tax regime but the condition of foregoing other exemptions has made an economic dilemma in the minds of corporate. Therefore, we are seeing two kinds of actions by the corporate.

Some corporate are opting in the new tax rates and availing the benefits that new policies provide. However, on the other, few corporate such as Godrej and Dabur are opting out of the new scheme.

Why are some corporates opting out of the new scheme?

These actions by the giants follow their decisions to claim exemptions provided in the various sections of Income Tax Act, 1961 which would lapse if these corporate giants opt for the new scheme. As far as we can say, the companies who have a lot of exemptions to claim might skip the new schemes as of now and once these exemption benefits have been satisfied, they would opt in the new schemes.

We would like to conclude that companies which are willing to reap the benefits from various exemption-related provisions of the Income Tax Act tax cut off are opting out of the new schemes, rest are highly satisfied by the ‘new gift’ of the Finance Minister.

September 24, 2019

Why the Indian Market Rose up By 1900 Points?

On Friday, the Indian government launched an all out attack on the drooping Indian economy to counter the economic slowdown. Surprisingly, it was welcomed by the investors at a great level where the Sensex rose by over 1900 points and Nifty closed at 11,254.

The main attraction of the announcement made by the Finance Minister was the tremendous decrease in the tax slab of corporate tax rate. In order to boost up the businesses, there was a significant cut in the corporate tax rates, the effective tax rate (inclusive of surcharges) for domestic corporate, have been reduced from 34.94% to 25.17%.

Also, the tax rate for new domestic firms and new manufacturing units that set up in India, starting in October and commence production before the end of March, 2023 will be taxed at an effective rate of just 17%.

The above decision of the government is being called as the most visible factor leading to the drastic change in the market, where Sensex and Nifty observed their biggest one-day rise since 2009.

What does this offer to the economy?

The decision clearly offers an incentive to the Indian markets to invest more in the corporate. As, most of advisors are suggesting, the present tax cut has made the country more competitive on a global level as far as corporate taxes were ever concerned.

It must be noted that whenever such cuts are made there is obviously a loss of revenue for the state. However, such a loss is generally recovered if such an incentive is actually able to stir up the market. There are many benefits, this might bring such as more investment, employment, etc.

Would it be actually helpful?

Whether or not this change of corporate actually stimulates the current economic slowdown, would be seen in time, but we would like to state what the experts are advise. On one hand, people are saying that this reduction is just a concession rather an actual help. As the real problem is the reduction in demand. Others say that the structural reforms such as GST has caused a loss in the demand of goods and employment. So, it is possible that such a reduction might actually help the current situation.

August 19, 2019

How Differently-Abled Can Plan For A Financially Secure Future Without Prior Education

Why planning finances is crucial for specially abled-01

The country has already celebrated its 73rd Independence Day. However, many still ignore the very existence of differently-abled people, their requirements and their plight, including the importance of financial Independence for specially abled people. Few years back, our Prime Minister spoke about the importance of ‘financial independence’ and ‘financial inclusion’ for a side-lined majority of individuals with special disabilities, so that the benefits can reach to them too. According to Census 2011, India has 2.68 crore differently-abled people who lack the ability to perform any activity in the main stream. That is why planning finances is crucial for specially abled; it is required for their special needs and secured future.

Why is it important to plan in advance?
By prioritising finances and future savings, a person with disability is independent and has a low disposable income left as a huge chunk is often directed towards regular expenses such as treatments, regular checkups and other expenditures on medical care and supervision. All these factors hint towards the need of implementation of a sound and appropriate financial plan in order to safeguard the future not only of one’s own self but also of the family. These schemes are only depending upon one’s investment and risk appetite.

How and where to invest?
A plethora of investment options are available in the market, but the lack of knowledge and drive have kept such a huge mars behind the dark clouds. While saving should be a goal, it is also important to remember to set the investment according to earning potential.

Following are a few places differently abled people can invest in:

Public Provident Fund and FDs
It is often advised to invest in PPF and FDs in order to suit long-term saving needs. But it also requires completing the maturity to withdraw from the scheme. You can withdraw the total amount by paying a penalty. Anyone can invest in the PPF scheme with upto Rs 1.5 Lakh. Also, it helps in income tax redemption where they can get effective return.

PM Atal Pension Yojana
This pension scheme is primarily designed for the unorganized sector working class. The age eligiblity for a person joining the scheme is minimum 18 years and maximum 40 years. After its maturity, joinees will get Rs 5000 monthly by investing just Rs 210 per month.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)
This program has been introduced keeping senior citizens in mind. The pension plan is for senior citizens of 60 years and above. The investment limit of the plan is Rs 15 lakhs and senior citizens will get assured 8% return for 10 years. The modes of pension payment will be monthly, quarterly, half-yearly and yearly. The minimum pension amount will be Rs 1,000 per month, Rs 3,000 per quarter, Rs 6,000 per half year and Rs 12,000 per year. The maximum pension amount will be 10x the minimum amount. The last date to apply for the plan is 31st March, 2019.

Small Cap Funds
A part of mutual funds, small cap funds are the funds in companies with a market capitalisation ranging less than Rs 500 crore. The cap in small cap, stands for a company’s capitalisation. Small cap funds are the ones in which the risk factor is really high, but so is the return. Small Cap Funds give aggressive returns. Fund managers are likely to haver exposure to stocks of small companies in range of 65%-90%. Small cap funds also charge an annual fee, known as ‘Exposure Ratio’, to manage your money.

Multicap Funds
These funds are diversified mutual funds which have the option of investing in stocks across market capitalisation. The Multicap Funds portfolio includes all sorts of funds, which are, large cap, mid cap and small cap funds. multicap funds involve comparatively less risk as compared to mid-cap or small cap Funds. This is because these funds involve mixed risk factors, wherein Large Cap has low risk, Mid Cap has medium risk and Small Cap has the highest risk. However, whereas Large Cap has high stability, Mid and Small Cap have high returns. The investments are done in different proportions to fulfil investment objectives.

Along with debt and above-mentioned government and private schemes, equity and mutual funds are also recommended as they help to deal with inflation while at the same time giving good alphas (returns). All such financial plans are highly accessible by simply consulting an investment professional who would understand the requirements and help to draft a plan which is most suitable as per one’s needs.

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July 9, 2019

Union Budget and its Effect on MSMEs and Investment Sector

On 5^th July 2019, the Union Finance Minister Nirmala Sitharaman announced the financial budget for the Assessment year 2020-21. It had many pragmatic amendments affecting the general investment practices of a regular investor and the MSMEs.

The budget has announced many changes, in the MSME sector, such as proposing ease in angel tax for start-ups, removing the requirement of scrutiny of angel tax from IT department for start-up, enabling e-verification mechanism for establishing investor identity and source of funds for start-ups, 2% interest subvention for GST-registered MSME on fresh or incremental loans, ‘stand up India’ scheme to continue till 2025, new television channel for start-ups and pension benefit extended to retail traders. All these changes are sought to have a positive impact on the MSME sector and flourish the growth of start-ups. Also, the start-ups are being given a whole set of tax benefits.

The investment sector has also met some changes such as simplification and formalisation of existing KYC norms for FPIS to make it more investor-friendly, long-term bonds for market to allow FIIS & FPIS investment in debt securities issued by NBFCs, credit guarantee enhancement corporation to be set up long-term bonds with specific focus on infra sector and propose social stock exchange under SEBI for listing social enterprises & voluntary organizations.

All these changes along with those in other sectors have led to huge swings on Budget day. An examination of trading data shows that the Sensex has swung an average of 3.1 percent in past 21 budget day sessions. The India VIX index ended at 13.53, down 1.2 percent on Thursday. The index has cooled off sharply from May’s high of 28.7.

‘We will ask SEBI to mull a rise in MPS for listed companies from 25% to 35%,’ said Finance Minister Nirmala Sitharaman, during the budget speech. While this move will ensure more public investment in equity markets it will also force corporates to go on a public offering spree.

This can be seen by the downfall of the market value of TCS by Rs. 30,400 crores after the union budget. The IT giant has a public float of 28% with Tata Sons holding the rest. If the proposal is implemented, Tata Sons would need to sell share worth Rs. 57,000 crore.

All these are implemented in order to increase the contribution of start-ups and MSMEs in the country’s economy as well as include the general public’s participation in the investments in corporate giants. The union government has also sought to spur growth with a reduction in corporate tax and sops to the housing sector, start-ups, and electric vehicles. This budget is the first since the BJP led by Prime Minister Narendra Modi returned for a second term in power and is aimed at boosting infrastructure and foreign investment. The budget is said to be presented with a 10-year vision in mind. ‘The budget is for a New India and has a roadmap to transform the agriculture sector of the country, this budget is one of hope’, says Narendra Modi.

July 1, 2019

Why in Investment in Latest Performing Mutual Funds a Progressive Choice?

Modern Case Scenario

In this modern world of Investing, people like Warren Buffet and Geraldine Weiss, who are considered as legendary investors, have always advised not to depend on any single source of income and have continuously warned the world about the catastrophic results which over-dependence on any one source of earning can cause. In the past, we have seen scenarios such as the case of Jet airways where a huge group of people were retrenched and lost their jobs. Situations such as these have a major impact on the lives of those affected and their mere existence is often threatened due to lack of finance to support their needs and their families, coercing them to be indebted or forcing them to sell their precious possessions. This is why advisors usually recommend their clients to create a second source of income i.e. investment.

Investing in Mutual Funds

When we think about investment, the rate of return on investment is the first thing that strikes our brain and the risk factor, along with ROI, is one of the most important elements in making any investment decision. Now, the real question arises as to where should this money be invested into, many of the secured securities such as fixed deposit, bonds usually have a low rate of return accompanied with lesser risk and the securities with a higher rate of return such as shares of a company have a much higher risk component, thereby demonstrating the positive relationship between the risk factors and the gain. Here finding the right balance between the element of risk and adequate rate of return is very essential.

For people who wish to play on the safer side usually invest in debt securities and bonds, whereas people with higher risk appetite usually invest in equities. However, for investors who want to have a comparatively higher return than debt but want moderate risk, are often advised to invest in the latest performing mutual funds. The level of risk in a mutual fund depends on what it invests in. Mutual funds are said to be riskier than bonds but earn more returns on the investment.

So, till here we know that mutual fund is one of the best ways to get good returns on our investments by taking moderate risks. But, knowing how to invest in the best performing mutual funds could be a real hassle for common businessmen and investors.

We, at VSRK wealth creator, are committed to solve all your queries regarding investment and help you to decide the best Investment and course of action for your Wealth Management.

How we can help?

VSRK Wealth Creator is one of the best-known names amongst the leading financial consultants in Delhi. When you opt for our professional services, your investments in mutual funds are operated by our dedicated team of portfolio managers working devotedly along with our with specialized investment research team, to enhance your income on amount invested by allocating the funds into an enormous pool of securities in order to decrease the overall risk to

the minimum level possible and thereby providing you with high returns as well as comparatively low risks.

Being a financial consultant in Delhi, for the past decades, enables our experts to prudently examine various companies, their performances & growth, and after exhaustive analysis of all the necessary factors and elements select the best alternative, amongst the available investment option which is aptly suited to achieve the objective of wealth maximization.

Why Mutual Fund?

We believe in the golden investment adages such as “do not put all your eggs in one basket” and “never test the depth of river with both legs”. Investments in the leading performing mutual funds enable the users to be benefited from the diversification of the amount of investment into various alternatives. Such benefits of diversification were traditionally, available to High Net -worth Individuals (HNIs) who had large amounts to be invested, however investing in the best performing mutual funds provides the investors with such benefits of diversification, and also gives you an opportunity to invest with fewer funds as compared to other avenues in the capital market.

While on one hand wealth is being created, on another hand provides us with an option to en- cash our investment immediately. This helps us to maintain high cash liquidity, which is generally missing in most of the securities such as bonds and fixed deposits and might be of great help in emergencies. Along with all these benefits, the investors can choose from a large list of options to invest in, whether it is in a blue chip company, bond or any other security.

So, it can be concluded that best performing mutual funds are a great source for wealth creation, which provides the investors with comparatively high returns, moderate risks, high liquidity and a diversified option of securities to invest in.