Markets have a habit of surprising investors. The surprise tends to vary in intensity and impact. How markets react to surprises, determines the extent. When the intensity is strong, the impact is likely to be high. Markets always tend to be unprepared for surprises. This is ironic considering that markets…
54 EC Bonds are popularly known for the tax benefits they provide under Section 54 EC of the Income Tax Act. These bonds are typically issued by the Power Finance Corp (PFC), Rural Electrification Company (REC), and the National Highways Authority of India (NHAI).
Investment styles in mutual funds are unique. The valuation paradigms of each fund manager drive them. Every fund manager’s approach to risk will be clearly visible in his portfolio. Investment choices speak louder than words. To appreciate a fund manager’s risk construct, all we need to do is to closely…
Government-backed entities such as, NHAI, REC, PFC, etc. issue tax-free bonds to raise capital. The capital is meant for long-term projects and these bonds have tenors of 10, 15 or 20 years. The interest earned from these bonds is exempt from taxation. Capital gains from the sale of bonds are taxable.
It’s that time of the year when the festive mood creeps into market trade. Every investor is optimistic and every fund manager worth his salt doles a positive prognosis about markets. No matter where markets are, how valuations look, and where the economy is heading, market players turn politically correct…
GST’s travails went through another interesting week of twists and turns. The acceptance of a new, modern tax system by its stakeholders is innate to its success. If people reject a system, and choose to operate outside it, as has been the habit, it would not meet its objectives. The…
The policy: The RBI reviews data understands risks and prepares the economy for anticipated changes. On the surface, it may appear that the reserve bank didn’t do much in its October policy. However, leaving things unchanged reflects careful consideration. Inflation and growth will decide interest rate movements. Inflation is…