Description
The most widely used method is known as the internal rate of return or IRR method.
Manmeet Thapar
Vishrutha Marar
Arti Gada
Deepavali Vankalu
Rammani Gupta
Siddhesh Parab
Sachin
Pramod Yadav
WHY YOU DON’T SHARE FINANCIAL DECISIONS !!!!
To achieve financial goals
The meshing together of the
investments of the husband and wife
not only strengthens the household's
financial fibre but gives them a
comprehensive view of the real
situation
The taxman has set limits to this joining
of the finances of the two spouses. He
has no problems if one spouse gives
money to the other. After all, it's their
money and spouses are in the list of
specified relatives whom you can gift
any sum without attracting a gift tax
4 Tax-efficient Strategies for Couples
? If you want to buy a house in your wife's
name but don't want the rent to be taxed as
your income, loan her the money instead. In
exchange, she can give you her jewellery.
? There is no tax on income from the PPF or on
long-term capital gains from shares and
equity mutual funds. Investing in these
options will put no additional tax liability.
? It's better to gift gold jewellery instead of cash
to your wife because gold does not generate
any income.
? If a wife saves a little out of the money given
to her for household expenses, that money is
her own. If it is invested, the gains will not be
clubbed with the income of the husband.
Reasons (ELSS)
? Potential to give the highest returns
? No tax on the gains,
? Easy to understand
? Even easier to buy
? Lock-in period is the shortest for any
Section 80C option.
If yes then?
LUMPSUM OR SIPs
How do you choose a fund to invest in?
Future of ELSS
? The most widely used method is
known as the internal rate of return
or IRR method.
? IRR is useful not only for SIP returns
but also for estimating returns from
money back insurance policies and
bond yields.
? Calculations have to be worked out
using financial calculators or a
spreadsheet.
? Two such websites are
engineeringtoolbox.com and
datadynamica.com.
Large & mid cap Fund (Regular growth Fund)
? This portfolio has been able to generate decent returns without taking
undue risk.
? Even the equity portion is invested in stable stocks.
? More than 80% of equity corpus is anchored in giant & large cap
stocks & balance 20% is invested in mid & small caps stocks.
?
1. No instrument that invest in equities can
guarantee returns.
2. SEBI does not allow even MF to guarantee returns.
3. There is no min returns guaranteed by the policies.
4. Insurance com do not explain how they manage to
deliver guaranteed returns without incurring
losses.
5. The highest NAV is not the same during the policy
tenure.
? NAV-represents a fund's per share market value .
This is the price at which investors buy shares from
the fund company.
E.g. For example, if a fund has assets of $50 million and
liabilities of $10 million, it would have a NAV of
$40 million.
? Banks are offering odd-tenure fixed
deposits to match their assets & liabilities.
? It has higher demand for one-year loans,
then it will offer a 390-day deposit.
Similarly, the 700-day deposits are meant
to match the asset and liability for two-
year loans.”
? Simply put, banks are ensuring they have
money to give loans by extending the
tenure of matching FDs. As the FDs
mature a little later, it gives them more
breathing space to get the money back
from the borrowers and return it to the
depositors.
? Deposits are mainly up to one year. But if
it crosses this period, we get slightly more
time to match assets and liabilities
Bank Name Tenure FD Rates (%)
Axis Bank 12-14 months 8.25
Hdfc Bank 1yr 16days-2yr 16days 7.75/8.25
ICICI Bank 390/590/790/990 days 8/8.5/8.5/8.5
Kotak Mahindra Bank 390/700 days 8.25/8.6
State Bank Of India 555/1000 days 8.5/8.5
IDBI Bank 500/1100 days 8.5/8.75
Punjab National Bank 555/1000 days 8.25/8.50
Union Bank Of India 500/700 days 8.10/8.60
Standard Chartered Bank 121/179/261 days 7.75
? If a customer makes a pre-mature
withdrawal, he earns a lower interest
which applies to the tenure shorter than
that of the specific scheme.
? This acts as an automatic penalty, though
there is no pre-mature withdrawal
charge.
? E.g. HDFC Bank is one. The bank has
said it will charge a 1% penalty on
premature withdrawals for all fixed
deposits.
? ICICI Bank already charges a 0.5-1%
lower interest rate to end an FD. The
penal interest is 0.5% for a one-year
deposit and 1% for deposits below `5
crore but with a higher tenure.
? The penalty of 1% lower interest when
people renew existing FDs or open a new
deposit will now be waived off
? Tax Benefits Section :-
• u/s 80 ccc
• u/s 10 (10 D)
• u/s 10 (10 A)
?
?
?
? Mr.ABC pays a regular
premium towards a ULIP
plan Rs.2,00,000 pa with a
Cover of Rs.20,00,000 for
20 Year term.
? Is He eligilble for Tax
benefit u/s 80 c (Premium
Payment)and 10 (10
D)(Maturity Value )
Premium paid is 10 % of Sum Assured
offered.
Hence Both Tax Benefit he can Claim.
? If Mr.Shah Pays Rs.1,00,000 one
time premium towards a Ulip
Plan with a Sum Assured of
Rs.1,10,000 for a term of 15 years.
? Is He eligilble for Tax benefit u/s
80 c (Premium Payment)and 10
(10 D)(Maturity Value )
?
?
?
? The reverse mortgage scheme was
started in the year 2007 by the
Indian government.
? Reverse mortgage scheme is the
exact opposite of a home loan.
? In this the bank starts giving the
owner of the property a monthly
payment as a loan against his
property.
? Only 75% of the value of his
property can be borrowed by the
owner.
? The money received is a loan
and so its is tax free.
? Only senior citizens are
eligible to avail this facility
and they should be living in
the house they mortgage.
? With every payment the
bank’s ownership of the
house increases.
? After the death of the owner
,their heirs have to repay the
loan taken against their
property.
? People buy diamonds with the conception that they
are scarce but in reality they are abundant.
? Diamonds are priced on 5 C’s –
Carat, Colour, clarity, cut ,cost.
? Diamonds unlike gold lack standardized
benchmark pricing and are sold at “asking rate.”
? Diamonds are yet to grow into strong investment
option like gold.
? The clearest diamond is the rarest and hence the
costliest.
? Diamonds come with the disclaimer that the
colour and form may change from the raw
form in which they are graded.
? Many renowned jewelers don’t buy–back
diamonds which are not bought buy them
due to quality and monetary reasons.
? Jewelers buy back diamonds by giving 85%
of the prevailing rate minus the making
charges whereas small jewelers promise to
give 75%.
? Stunningly crafted fake diamonds are also
difficult to detect in lab test.
? Think twice before investing in diamond
given the uncertainty and buy back options.
31
doc_296512175.pptx
The most widely used method is known as the internal rate of return or IRR method.
Manmeet Thapar
Vishrutha Marar
Arti Gada
Deepavali Vankalu
Rammani Gupta
Siddhesh Parab
Sachin
Pramod Yadav
WHY YOU DON’T SHARE FINANCIAL DECISIONS !!!!
To achieve financial goals
The meshing together of the
investments of the husband and wife
not only strengthens the household's
financial fibre but gives them a
comprehensive view of the real
situation
The taxman has set limits to this joining
of the finances of the two spouses. He
has no problems if one spouse gives
money to the other. After all, it's their
money and spouses are in the list of
specified relatives whom you can gift
any sum without attracting a gift tax
4 Tax-efficient Strategies for Couples
? If you want to buy a house in your wife's
name but don't want the rent to be taxed as
your income, loan her the money instead. In
exchange, she can give you her jewellery.
? There is no tax on income from the PPF or on
long-term capital gains from shares and
equity mutual funds. Investing in these
options will put no additional tax liability.
? It's better to gift gold jewellery instead of cash
to your wife because gold does not generate
any income.
? If a wife saves a little out of the money given
to her for household expenses, that money is
her own. If it is invested, the gains will not be
clubbed with the income of the husband.
Reasons (ELSS)
? Potential to give the highest returns
? No tax on the gains,
? Easy to understand
? Even easier to buy
? Lock-in period is the shortest for any
Section 80C option.
If yes then?
LUMPSUM OR SIPs
How do you choose a fund to invest in?
Future of ELSS
? The most widely used method is
known as the internal rate of return
or IRR method.
? IRR is useful not only for SIP returns
but also for estimating returns from
money back insurance policies and
bond yields.
? Calculations have to be worked out
using financial calculators or a
spreadsheet.
? Two such websites are
engineeringtoolbox.com and
datadynamica.com.
Large & mid cap Fund (Regular growth Fund)
? This portfolio has been able to generate decent returns without taking
undue risk.
? Even the equity portion is invested in stable stocks.
? More than 80% of equity corpus is anchored in giant & large cap
stocks & balance 20% is invested in mid & small caps stocks.
?
1. No instrument that invest in equities can
guarantee returns.
2. SEBI does not allow even MF to guarantee returns.
3. There is no min returns guaranteed by the policies.
4. Insurance com do not explain how they manage to
deliver guaranteed returns without incurring
losses.
5. The highest NAV is not the same during the policy
tenure.
? NAV-represents a fund's per share market value .
This is the price at which investors buy shares from
the fund company.
E.g. For example, if a fund has assets of $50 million and
liabilities of $10 million, it would have a NAV of
$40 million.
? Banks are offering odd-tenure fixed
deposits to match their assets & liabilities.
? It has higher demand for one-year loans,
then it will offer a 390-day deposit.
Similarly, the 700-day deposits are meant
to match the asset and liability for two-
year loans.”
? Simply put, banks are ensuring they have
money to give loans by extending the
tenure of matching FDs. As the FDs
mature a little later, it gives them more
breathing space to get the money back
from the borrowers and return it to the
depositors.
? Deposits are mainly up to one year. But if
it crosses this period, we get slightly more
time to match assets and liabilities
Bank Name Tenure FD Rates (%)
Axis Bank 12-14 months 8.25
Hdfc Bank 1yr 16days-2yr 16days 7.75/8.25
ICICI Bank 390/590/790/990 days 8/8.5/8.5/8.5
Kotak Mahindra Bank 390/700 days 8.25/8.6
State Bank Of India 555/1000 days 8.5/8.5
IDBI Bank 500/1100 days 8.5/8.75
Punjab National Bank 555/1000 days 8.25/8.50
Union Bank Of India 500/700 days 8.10/8.60
Standard Chartered Bank 121/179/261 days 7.75
? If a customer makes a pre-mature
withdrawal, he earns a lower interest
which applies to the tenure shorter than
that of the specific scheme.
? This acts as an automatic penalty, though
there is no pre-mature withdrawal
charge.
? E.g. HDFC Bank is one. The bank has
said it will charge a 1% penalty on
premature withdrawals for all fixed
deposits.
? ICICI Bank already charges a 0.5-1%
lower interest rate to end an FD. The
penal interest is 0.5% for a one-year
deposit and 1% for deposits below `5
crore but with a higher tenure.
? The penalty of 1% lower interest when
people renew existing FDs or open a new
deposit will now be waived off
? Tax Benefits Section :-
• u/s 80 ccc
• u/s 10 (10 D)
• u/s 10 (10 A)
?
?
?
? Mr.ABC pays a regular
premium towards a ULIP
plan Rs.2,00,000 pa with a
Cover of Rs.20,00,000 for
20 Year term.
? Is He eligilble for Tax
benefit u/s 80 c (Premium
Payment)and 10 (10
D)(Maturity Value )
Premium paid is 10 % of Sum Assured
offered.
Hence Both Tax Benefit he can Claim.
? If Mr.Shah Pays Rs.1,00,000 one
time premium towards a Ulip
Plan with a Sum Assured of
Rs.1,10,000 for a term of 15 years.
? Is He eligilble for Tax benefit u/s
80 c (Premium Payment)and 10
(10 D)(Maturity Value )
?
?
?
? The reverse mortgage scheme was
started in the year 2007 by the
Indian government.
? Reverse mortgage scheme is the
exact opposite of a home loan.
? In this the bank starts giving the
owner of the property a monthly
payment as a loan against his
property.
? Only 75% of the value of his
property can be borrowed by the
owner.
? The money received is a loan
and so its is tax free.
? Only senior citizens are
eligible to avail this facility
and they should be living in
the house they mortgage.
? With every payment the
bank’s ownership of the
house increases.
? After the death of the owner
,their heirs have to repay the
loan taken against their
property.
? People buy diamonds with the conception that they
are scarce but in reality they are abundant.
? Diamonds are priced on 5 C’s –
Carat, Colour, clarity, cut ,cost.
? Diamonds unlike gold lack standardized
benchmark pricing and are sold at “asking rate.”
? Diamonds are yet to grow into strong investment
option like gold.
? The clearest diamond is the rarest and hence the
costliest.
? Diamonds come with the disclaimer that the
colour and form may change from the raw
form in which they are graded.
? Many renowned jewelers don’t buy–back
diamonds which are not bought buy them
due to quality and monetary reasons.
? Jewelers buy back diamonds by giving 85%
of the prevailing rate minus the making
charges whereas small jewelers promise to
give 75%.
? Stunningly crafted fake diamonds are also
difficult to detect in lab test.
? Think twice before investing in diamond
given the uncertainty and buy back options.
31
doc_296512175.pptx