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As a first-time investor, you may want to check at multi-asset funds that include a wide range of asset classes (equity, gold, and fixed income) in an effort to decrease risk and volatility. The mix of negative and less-correlated assets minimizes portfolio risk and helps to fight volatility, according to financial advisors, because these funds are less volatile than pure equities funds. Fund managers believe a multi-asset approach would be more effective in the next climate, despite the fact that investors have enjoyed excellent returns from stocks over the previous decade as liquidity conditions tighten internationally. It's common for people to invest in asset types that have provided the strongest returns in previous years. A year of Value Research data shows a 14.64 percent return for multi asset funds. Rather of relying just on the stock market, the fund manager uses a variety of asset classes to diversify and evaluate the portfolio on a regular basis.

Without an investing portfolio in place, individuals can be unprepared for several major milestones in their life. A portfolio with a varied mix of investments not only serves to secure the invested capital but also allows positioning it to generate optimal returns. Individuals might increase their future income by building an investing portfolio centred on income securities. Dividend-paying equities, as an example, can provide a steady stream of income over time. Stock dividends aren't always guaranteed, but there are some companies that consistently pay them out. Fixed-income products, such as bonds, can also provide a steady stream of income by paying out interest on a regular basis. How to create a well-rounded investment portfolio To reap the rewards of being exposed to the risk of the financial markets, investors must carefully manage their wealth. If one sector of the financial market does not perform well, diversification across several asset classes helps to protect an investor's capital. Low, moderate, and high-risk investors all have different levels of risk aversion. You have a poor risk tolerance if you need your money in a few years and can't handle the market's ups and downs. As an alternative, if your financial situation doesn't change in the next 15 to 20 years, you could afford to sit out a market downturn. Advantages of Diversed Portfolio- Diversification helps to minimise the effects of market volatility: The overall impact of market volatility diminishes when investors diversify their portfolios. Investing in a variety of solutions can help you reap the benefits: By diversifying their investments, investors can take advantage of the distinct advantages of various instruments while also reducing their exposure to risk. Investing in fixed deposits, for example, offers a steady return with lesser risk, whereas investing in equities mutual funds has the potential to provide a bigger return with an identical level of risk. Achieves investment goals while protecting money: Diversification helps investors achieve their investment goals while protecting their capital. Contributes to risk management: At the heart of a diverse portfolio are investment options that are sensitive to changing economic conditions. Investors will receive weighted average returns on their underlying securities and will not be completely exposed to the asset's volatility. Provides investors with peace of mind: When the complete corpus is distributed throughout a range of asset classes and categories, an investor need not be concerned about the portfolio's performance. Long-term financial goals may only be achieved by weighing the risks and rewards of various investments. There is no 'one-size-fits-all' method to investing, even while there are many options. Rebalancing and monitoring your financial decisions on a regular basis can ensure that you are investing in the proper mix of assets. Remember that your financial goals, risk tolerance, and investment horizon should all be taken into consideration when making investments.

Everything from reserving a cab to making a large payment may now be done in a matter of seconds. Although there are many advantages to using online services and apps, there is also a major disadvantage: fraudsters can occasionally steal your identity and use it to conduct fraudulent activities. Oftentimes, a person who has their identity stolen online is unaware of it and only learns of it when they are harassed by creditors or when they check their credit online. Checking your credit score and reports on a regular basis is incredibly significant because these reports not only give an overview of current loans and payments, but also of those made in the past. What is a credit score, exactly? An individual's creditworthiness can be quantified by a three-digit number between 300 and 900, which is derived from their credit history. A person's capacity to pay back a loan or credit card bill in the future is what is meant by the term "creditworthiness". A credit score of 750 and above is considered great because it demonstrates that you have consistently payed your loans and cleared outstanding credit card debts. Factors that affect your credit score include how much money you owe and how much of it you use. It is possible to check one's credit score on the official CIBIL (Credit Information Bureau (India) Limited) website. This service is also offered by Tata Capital and HDFC Bank at no charge. Your Credit Score can be checked in a few simple steps- As a new customer, here's how you may check your credit score Start by logging into one of the aforementioned portals and providing information such as your first and last name, date of birth, gender, email address, PAN number, mobile number, and postal address (with zip code and state) as well as your PIN code. Ensure that all of your information is correct to your knowledge before moving on to the next step. Submit the form. Check your credit score on the internet. As an existing client, you can use the following procedure to see your credit score: A registered mobile phone number can be used to check one's credit score on any of the websites referred to above. Check your credit score online by entering the OTP in the space provided. Verify that all your information is correct. Submit the form. Get your credit score online.

When it comes to risk-averse fixed-tenure investments, most of us rarely look beyond fixed deposits. Many people are unaware that fixed maturity plans (FMPs) can assist produce comparable returns while also providing tax benefits. Defintion of FMPs: FMPs are a sort of debt mutual fund with a set maturity, which can range from one month to five years. Investors can only invest in these funds during the NFO (New Fund Offering) period and then withdraw their money at the conclusion of the term. Aside from the fact that these funds can be bought and sold on stock markets, their liquidity is usually relatively low. Once the NFO of an FMP is over, you can no longer buy further units. In What Asset Classes do FMPs Invest? Investments in fixed-term debt instruments, such as corporate bonds, bank FDs, CPs (Commercial Papers), or CDs (Certificate of Deposits) are made by FMPs. For example, if an FMP has a 3-year maturity, it may invest in CPs with a 3-year maturity. Once the money is placed in a Fixed Maturity Plan, fund managers are only required to make minimal adjustments to the portfolio. This is not the case with bank FDs, where you receive the precise return stated on your FD certificate. At the time of the NFO, the fund house only mentions hypothetical returns. However, the returns can be larger or lower when the investment reaches its maturity point. In most circumstances, the discrepancy between the expected and actual returns of FMPs is negligible. How FMPs are taxed? The interest you earn on bank FDs is taxed according to your individual tax bracket. As a result, someone whose FD income is subject to a 30% tax rate must pay 30% of that income in taxes. In this way, FDs are safe investments, but not tax-efficient ones. FMPs are taxed in the same way as other debt funds because they are a type of debt fund. Investments held for longer than 36 months are taxed at a 20% rate. However, there is an indexation advantage present here. Indexation allows you to adjust the purchasing price of FMP units in accordance with the period's inflation. This reduces your taxable returns from FMPs. As a result, FMPs with maturities of three years or more are currently quite popular. However, if you choose an FMP with a maturity of less than 36 months, the returns will be added to your taxable income and taxed according to your tax bracket, just like bank FDs. Investing in FMPs has a number of Advantages: High Tax Savings After Three Years – According to the previous discussion, FMPs are an extremely tax-efficient investment option because of the indexation benefit. However, indexation is only available for investments held for a minimum of three years before being eligible for inclusion in the index. Low Expense Ratio- According to the previous discussion, FMPs are an extremely tax-efficient investment option because of the indexation benefit. However, indexation is only available for long-term investments. Risk Reduction- It is true that FMPs aren't completely risk-free, but the risk level is far lower than that of an equity mutual fund. Because the same instrument is held until maturity, interest rate volatility is also minimally impacted by market conditions. Investing in Fixed Maturity Plans: Who Should Do It? FMPs have a long history of delivering higher returns than bank FDs. Keep in mind that FMPs don't have the same level of security as FDs in terms of their returns. However,  FMPs remain a fantastic alternative for anyone wishing to park their extra income for a fixed term ranging from one month to five years while earning better yields than FDs. Even long-term risk-averse investors who are uneasy with the fluctuations and volatility of equity funds can consider investing in one of the top FMPs. Before you invest, keep in mind that FMPs are closed-ended schemes, and you will most likely be unable to redeem your investment before maturity.

Investing for the long term can be done with multiple trading accounts, but how many of you have this option? Even while it is perfectly legal to have multiple Demat and trading accounts with the same Depository Participant (DP) or brokerage firm, many new investors are ignorant of this fact. As a result, if you have an existing Demat or trading account with a stockbroker, you cannot open a new one with them. You'll have to contact other brokerage firms if you'd like to open another Demat or trading account. Choosing a brokerage firm is a personal decision based on your specific needs. If you have a good grasp of both fundamental and technical analysis, you can use the bot-assisted service to help you evaluate companies. Professional brokers can provide extensive investment advice if you're seeking for assistance in determining which stocks to invest in, hold, and sell, as well as their investment horizons. The cost of a service varies depending on the type and scope of work you require. Many investors and traders maintain a number of brokerage accounts, each for a different set of trading and investment activities. Offers, especially discounted ones, can be tempting, but it's debatable whether or not they're worth the bother. Advantages- Assessment of several investment accounts and access to a wide range of services. A variety of brokerage accounts serve as a means of segmenting the holdings of the portfolio. Different accounts benefit from different dealers. Multiple brokerage accounts can be linked to a single Demat account. Drawbacks- Keeping up with multiple accounts can be time-consuming. Multiple account security necessitates the use of unique passwords. Forgetting any of them necessitates a lengthy and exhausting search to find them again. The more accounts you have, the more fees you pay, and the more money you spend on upkeep. If you can't keep track of several accounts, they're more likely to be frozen or inactive. To bring them back, you'll have to pay more. Tax Calculation It is your responsibility to pay taxes on the money you make or lose from your stock investments in the year you receive it, not the year you withdraw it. Paying taxes on gains and losses from stock sales through a brokerage account can be convenient . Profits from long and short term capital gains, as well as speculative and non-speculative business revenue. As well as the fact that they are either classifying market-derived revenue as "Business income" or something else entirely. You must have a total revenue for the year in order to file your taxes. Trade-by-trade turnover is the most compatible method because every broker has a different format. Ensure that all of the data retrieved from the broker terminal is formatted in the same way. Additionally, you'll have to manually compute each script's turnover because you'll be using data from numerous brokers. If you're working with various brokers, this is the only issue you may encounter. You have a choice between a single brokerage account and many brokerage accounts, depending on how you want to use and manage your stocks. When it comes to choosing between a single or many brokerage accounts, both have their perks and downsides to consider. based on the type and scope of services you require.

Non-Resident Indians (NRIs) maintain bank accounts designated as Non-Resident Ordinary (NRO). It is a savings account used by an NRI to handle revenue produced in India, which may include rental income, dividend income, and salary. An NRI may deposit funds in both foreign and Indian currencies and may withdraw funds from this account in Indian currency. NRO fixed deposits should be used to invest the savings account's excess funds. NRO deposit interest is higher than that paid on a regular bank account. Banks from other countries that pay the highest interest rates on short-term, two- to three-year NRO deposits are listed below. RBL Bank- Interest rates on RBL Bank's 2-3 year FDs are 6.3% each year. This bank has the best interest rates among private institutions.In two years, a capital of Rs 1 lakh invested grows to Rs 1.13 lakh. Bandhan Bank and Yes Bank- Provide 6.25 percent annual return on 2-3 year term deposits. In two years, a capital of Rs 1 lakh invested grows to Rs 1.13 lakh. The minimum investment required by Bandhan Bank and Yes Bank is Rs 1,000 and Rs 10,000, respectively. IndusInd Bank- offers a 6% annual interest rate on two- to three-year fixed-rate deposits. In two years, a Rs 1 lakh investment grows to Rs 1.12 lakh. DCB Bank- A two- to three-year FD at DCB Bank pays 5.95 percent interest per year. It takes two years for Rs. 1 lakh to rise to Rs. 1.12 lakh. IDFC First Bank- offers a 5.75 percent annual interest rate on two- or three-year FDs. It takes two years for Rs. 1 lakh to rise to Rs. 1.12 lakh. To attract new customers, smaller private banks are providing higher interest rates. Up to Rs 5 lakh can be invested in fixed deposits through DICGC, a subsidiary of the Reserve Bank of India (RBI). According to the different websites, the data on FDs is current as of January 18, 2022. Information on NRO deposits up to Rs 2 crore for a term of two or three years is based on rates offered by all private banks listed on the Bombay Stock Exchange (BSE). No consideration is given to banks for whom there is no verifiable data. Quarterly compounding is presumed for all FDs.

In the event that a person engages in high-value cash transactions, the Income Tax Department is likely to issue a notice. These include banks, mutual fund firms, brokerages, and real estate registries. If the transaction's value exceeds a certain level, the income tax department must be notified. Few examples of transactions that may or may not have resulted in a notification from the IT Department: Depositing in Bank Account A bank account's cash deposit limit is INR 10 lakh. The income tax authorities may issue a tax notice to someone who deposits more than INR 10 lakh in a single financial year in a savings account. Cash deposits and withdrawals over INR 10 lakh in a financial year must be reported to the tax authorities. In current accounts, the limit is INR 50 lakh. Depositing in Bank FD There should be no more than 10 lakh rupees in cash deposits in a bank FD. A bank depositor is advised not to deposit more than INR 10 lakh in a bank FD account while making a cash deposit. After a directive from the CBDT, banks are now required to declare whether or not a customer's total deposits in one or more fixed deposits are more than the statutory maximum. Buying or Selling Land To the tax authorities, the property registrar must disclose any investment or sale of immovable property above INR 30 lakh. Your Form No. 26AS should be used to record the sale or purchase of a property. To put it another way, if you're buying or selling property for more over INR 30 lakhs, you're in the IT department's sights. The buyer's tax return may be examined to see if he/she has disclosed the income. Credit Cards Bills Payment If you spend more than INR 1 lakh in cash to settle a credit card bill, the CBDT requires that you record it. Payments(any mode) of more than 10 lakh rupees in a year for credit card bills must also be made public to the tax authorities. Credit card purchases are subject to sales tax, which is the most important consideration. Because your credit card information is connected to your PAN Card, the government can readily monitor your online credit card activities, so you should make sure you don't go over your spending limit. When submitting an ITR, be sure to disclose any significant transactions. If you use credit cards for any high-value transactions, be sure to include them on Form 26AS when you file your ITR. Purchase and Sale of Foreign Currencies As long as an individual receives more than INR 10 lakh for the sale of foreign currency in a financial year, they must notify the income tax department of their receipt of such funds and any credit in such currency by debit or credit card as well as traveler's cheque, drafts or other instruments. Transactions of Stocks, Mutual Funds, and Bonds If you're planning to invest in a mutual fund, stock, bond, or debenture, you must keep your total cash investment under INR 10 lakh. Annual Information Return (AIR) statements of financial transactions have been produced by the I-T department in order to track high-value transactions of taxpayers In a given financial year, tax officials will collect information on unusually high-value transactions. The AIR section of your Form 26AS should be checked if any high-value transaction has been listed. The high-value financial transactions are summarised in PART -E of Form 26AS.

Those who inherit from someone who dies without a will need to seek a certificate from the authorities to verify that they are the rightful heirs of that person. For the legal heirs of a deceased individual, these certificates will assist them in transferring the deceased person's assets to their names. This includes money in a bank account, fixed deposits, and mutual funds. Where can you go to get a certificate of legal heirship or certificate of surviving member? Those who are legally heirs can seek for one of these documents. An application for a surviving member certificate must be made to the district magistrate's office, where the legal heir certificate can be acquired. Survivor certificates can also be applied for online in several states. For example, in Delhi, you may apply through https://edistrict.delhigovt.nic.in. Keep in mind that after submitting an online application, you will need to visit the district magistrate's office to verify and submit your paperwork. What are the necessary documents? It doesn't matter if you're applying for a legal heir certification or a certificate for a deceased family member. A legal heir must provide the following papers in addition to a completed application form (available at the district magistrate's office/court): All legal heirs must provide a copy of their identification and address documents, such as their PAN card or Aadhaar card. The deceased's original death certificate, issued by a local authority. Copy of deceased person's ID and proof of address. An affidavit of undertaking by the applicant and all the surviving family members is necessary in the event of a legal heir certificate. The applicant, i.e. the person filing for the certificate on behalf of all the legal heirs, must self-attest the copies of identification and proof of address.

The government has simplified and broadened the use of e-Rupi by loosening some standards. Until the whole amount of a pre-paid digital voucher is redeemed, the RBI increased the ceiling on pre-paid digital vouchers from Rs 10,000 to Rs 1 lakh. The central and state governments hope to broaden the scope of their benefit distribution by making this change. e-Rupi can be supplied to those who don't have a bank account. https://www.myrupaya.in/post/what-is-e-rupi-and-how-can-it-be-used-by-you Each voucher was limited to Rs 10,000 and may only be used once; e-RUPI uses the Unified Payment Interface (UPI) technology. COVID-19 vaccinations are the primary application of e-RUPI vouchers at the moment. Other use cases are being actively considered by various state and central government departments and ministries.