Product Updates

NFO Alert ! The largest 10 companies in one fund - India’s first ever Nifty Top 10 Equal Weight Index Fund

automailback@gmail.com (Rajesh Kathpalia) — Sat, 17 Aug 2024 12:06:00 -0700

16^th August 2024

30^th August 2024

The cheapest way to own India's top 10 companies in equal weight.

Out of the Nifty 50 Index, Top 10 stocks by size* constitute the Nifty Top 10 Equal Weight Index

• The entry & exit of stocks are accounted semi-annually & portfolio is rebalanced quarterly.
*Based on 6-month average free float market cap. Non-member eligible stock shall be included if its free-float market capitalization is at least 1.5 times the free-float market capitalization of the smallest index constituent. Hence, the top 10 stocks in Nifty 50 may not necessarily be part of Nifty Top 10 Equal weight Index

Source – NSE, Internal. Data as on July 31st, 2024.
Detailed methodology can be found at https://www.niftyindices.com/Methodology/Method_NIFTY_Equity_Indices.pdf

Did You Know :

The bottom 490 stocks of Nifty 500 have outperformed the top 10 stocks on average in last 4 years.

Now – Should you go with relatively undervalued this time?

Are You Fond of Stock SIPs ?

Did You Know?

A Stock SIP to own India's Top 10 Largest Companies would cost you around Rs. 21,500/- per month.

But, you can own the same basket of Top 10 LARGEST Companies of India* in the DSP Nifty Top 10 Equal Weight Index Fund with a SIP of just Rs. 1,000/- per month,

Benefits of Investing via MF vs. Stock SIP:

1. Rebalancing:

- Mutual Fund: Rebalancing happens at the fund level on Quarterly Basis and index is reconstituted on semi annual basis to ensure entry and exit of stocks based on their market cap making their investment journey smooth and hassle free.

- Direct Stock SIP: Rebalancing your direct stocks portfolio individually attracts Capital Gains Tax.

2. Dividends:

- Mutual Fund: Dividends are reinvested at the fund level, ensuring uninterrupted compounding.

- Direct Stock SIP: Dividends from individual stocks are taxable at the marginal rate for shareholders.

3. Reasons to buy

- Weight of top 10 stocks as % of total market capitalization at all time low

• Better valuation vs other broader indices

• Underperformance in last 3 years vs other broader indices/ active funds

Source: Internal, Data as of July 31st 2024

For index disclaimers, visit https://www.dspim.com/mandatory-disclosures

DSP Nifty Top 10 Equal Weight Index Fund
(An open ended scheme replicating/tracking Nifty Top 10 Equal Weight Index)

Product Suitability

This product is suitable for investors who are seeking*

• Long-term capital growth
• Investment in equity and equity related securities covered by Nifty Top 10 Equal Weight Index, subject to tracking error.

Scheme Riskometer

BENCHMARK [Nifty Top 10 Equal Weight TRI] RISKOMETER

The product labelling assigned during the New Fund Offer ('NFO') is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Good News For FD Investors ! HDFC Ltd FD & Shriram Transport Finance FD Rates again HIKED !!!

automailback@gmail.com (Rajesh Kathpalia) — Thu, 18 Aug 2022 06:55:00 -0700

Update on Yield Movement- Daily Debt Spreads / Debt Watch

automailback@gmail.com (Rajesh Kathpalia) — Thu, 4 Aug 2022 21:13:00 -0700

Time And Patience – Two Key Virtues To Become Successful In Investing

automailback@gmail.com (Rajesh Kathpalia) — Thu, 4 Aug 2022 21:09:00 -0700

Meeting of the Monetary Policy Committee :

automailback@gmail.com (Rajesh Kathpalia) — Tue, 2 Aug 2022 22:20:00 -0700

Meeting of the Monetary Policy Committee :

The three-day Monetary Policy Committee (MPC) meeting is scheduled to start on August 3 with the RBI governor Shaktikanta Das and other MPC members present. On August 5, the MPC's decision on the bimonthly monetary policy for FY23 will be made public.

Safe Investment Option - HDFC Deposits & Bajaj Finance FD - Interest Rate upto 7.75% p.a *Tcapply

automailback@gmail.com (Rajesh Kathpalia) — Tue, 2 Aug 2022 21:56:00 -0700

RBI Meeting Schedule of Monetary Policy - 2022-23

automailback@gmail.com (Rajesh Kathpalia) — Wed, 22 Jun 2022 02:00:00 -0700

Good News For FD Investors! Bajaj Finance & HDFC Ltd FD Rates again HIKED !!!

automailback@gmail.com (Rajesh Kathpalia) — Wed, 15 Jun 2022 00:41:00 -0700

Would like to participate in the Digital Transformation of India ? Invest in Digital India Fund

automailback@gmail.com (Rajesh Kathpalia) — Thu, 2 Jun 2022 02:25:00 -0700

Take Care of your Health through Wellness Health Prime

automailback@gmail.com (Rajesh Kathpalia) — Sat, 30 Apr 2022 03:33:00 -0700

MF's Buying / Selling in Mar 2022

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 21:10:00 -0700

How Much Tax Do You Need To Pay Tax on Sales of Capital Asset

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 21:07:00 -0700

How Mr. Aashish Somaiyaa of WhiteOak Capital Asset Management invests his money

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 03:26:00 -0700

How Much Tax do you pay on Equity Investments

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 03:19:00 -0700

How Mr. Saurabh Mukherjea of Marcellus invests his money

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 03:14:00 -0700

Loans to be costlier as banks hike rates

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 03:03:00 -0700

10 Thinks to know about PPF

automailback@gmail.com (Rajesh Kathpalia) — Wed, 20 Apr 2022 02:56:00 -0700

Use iLocker Handbook . Make yourself emergency Ready....!

automailback@gmail.com (Rajesh Kathpalia) — Thu, 24 Mar 2022 03:36:00 -0700

Smart Tax moves to optimise tax before March 31

automailback@gmail.com (Rajesh Kathpalia) — Mon, 21 Mar 2022 21:45:00 -0700

As we are nearing end of Financial year, note these points to save Capital gains tax

(Long term capital gains/loss = For holding period more than 1 year

Short term capital gains/loss = For holding period less than 1 year)

- 1 lakh profit in a Financial year is exempt as Long term capital gains. So book profits in shares & mutual funds together upto 1 lakh, and reinvest

- If profits are more than 1 lakh, check if you can book loss in any of the holdings to set off. You can buy back the next day

- Short term capital gains are taxed at 15%, book losses and buy back next day to set off any profits.

- Both Long and short term losses can be carried forward for 8 years. So booking losses can help save future taxes. ( Make sure you file IT returns on time)

- LTC losses can be set off against LTCG only. STC losses can be set off against ST and LT capital gains

- Futures & Options profit /loss will be taxed along with normal tax slab.

BENEFITS OF FORMING A HUF

automailback@gmail.com (Rajesh Kathpalia) — Mon, 21 Mar 2022 21:16:00 -0700

Hindu Undivided Family (HUF) is not defined under the Income Tax Act but is covered under the Hindu Law. By definition, it consists of all individuals who are lineally descended from a common ancestor and also comprises of unmarried daughters. HUF is not formed by a contract but by the status of a family i.e., it is created automatically in any Hindu Family. Having a common ancestor is a pre-requisite to form a HUF.

REQUIREMENTS TO FORM A HINDU UNDIVIDED FAMILY (HUF)

Minimum two members are required to form a HUF, constituting a joint family. Owning an estate or a property is not mandatory to form a HUF. The Hindu Law though does not govern Buddhists, Jains, and Sikhs; it can be treated as a HUF for taxation purpose.

BENEFITS OF FORMING A HUF

One of the major benefits of Hindu Undivided Family is that it is considered as a separate legal entity. This entitles HUF to obtain a separate PAN card and bank accounts in the name of the HUF. Once a HUF is formed, typically the oldest member of the family becomes the “Karta” and is provided with an additional exemption. In addition, the tax slabs are lower when compared to that of regular corporates. Until January 2016, women were not eligible to be the Karta of a HUF. However, the Delhi High Court, in a landmark case, gave the decision in favor of a woman being the Karta of HUF. The decision is yet to be implemented in the Income Tax Act.

HOW IS HUF TAXED?

• HUF is eligible for deductions under section 80 and other relevant exemptions

• Allowed to take insurance policies for its members

• Can also pay salary to its members should they contribute to HUF functioning

• Investment is allowed from HUF income and returns from such investments are taxable.

INCOME OF HUF

Any income that is derived from the below may be regarded as income of HUF:

• Profit from business including profession

• Income from house property

• Capital gains

• Other sources

Given that the HUF is a separate legal entity; it is not entitled to any salary income. Also, any income that is derived from investments made by the HUF is assessed and taxed separately.

WHO SHOULD OPT FOR HUF?

HUF arrangement suits those taxpayers who have income from ancestral property and expects to inherit these assets (both real and financial). A taxpayer will be able to divert the inheritance to the HUF account and thus preventing personal tax liability from increasing. In addition, HUF is also beneficial to taxpayers with higher savings rate.

LEGAL FORMALITIES INVOLVED WHILE FORMING A HUF:

• Form corpus – A capital asset can be used to form the HUF. It can be any ancestral property, assets received as a gift from relatives or through a will.

• Register a deed – A deed is required on stamp paper declaring the formation of the HUF. It should include information of the Karta and the co-parceners. In addition, sources of funds in the corpus are also mentioned. Once the declaration deed is made, the Karta can apply for a permanent account number (PAN) for the HUF as a separate legal entity.

• Opening bank account – Once the PAN is allocated, open a bank account in the name of the HUF.

We hope that you have got a detailed insight on Hindu Undivided Family and its working. Should you wish to know more about HUF or any taxation related matter with HUF, feel free to and we shall be glad to assist.

Here are the top 10 Financial Services Stocks held by mutual funds. Do you own any ?

automailback@gmail.com (Rajesh Kathpalia) — Fri, 11 Mar 2022 04:47:00 -0800

Re-opening of Scheme...Parag Parikh Flexi Cap Fund. w.e.f 15 Mar 2022

automailback@gmail.com (Rajesh Kathpalia) — Thu, 10 Mar 2022 06:06:00 -0800

India Beats UK: Becomes 6th Biggest Stock Market With $3.16 tn M-Cap

automailback@gmail.com (Rajesh Kathpalia) — Thu, 10 Mar 2022 05:54:00 -0800

*India Beats UK: Becomes 6th Biggest Stock Market With $3.16 tn M-Cap*

*World’s biggest stock markets by Market Cap:*

1. US: $46.01 tn

2. China: $11.31 tn

3. Japan: $5.78 tn

4. Hong Kong: $5.5 tn

5. Saudi Arabia: $3.25 tn

6. India: $3.16 tn

7. UK: $3.11 tn

*(Bloomberg)*

Triple Tax Benefits with National Pension System ...

automailback@gmail.com (Rajesh Kathpalia) — Tue, 8 Mar 2022 23:22:00 -0800

Rajesh Kathpalia || Mobile : +91 9891645052,9560550026 || Email id - kathpalia.rajesh@gmail.com

How your income from equity shares and mutual funds will be taxed this year

automailback@gmail.com (Rajesh Kathpalia) — Tue, 22 Feb 2022 04:52:00 -0800