The information contained herein (the “Information”) may not be reproduced or disseminated in whole or in part without prior written permission from the Company. The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared based on publicly available information, internally developed data and other sources believed to be reliable. The directors, employees, affiliates or representatives (“Entities & their affiliates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy, reliability and is not responsible for any errors or omissions or for the results obtained from the use of such information. Readers are advised to rely on their own analysis, interpretations & investigations. Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements including those relating to general business plans and strategy, future financial condition and growth prospects, and future developments in industries and competitive and regulatory environments. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, they do involve several assumptions, risks, and uncertainties. Readers are also advised to seek independent professional advice to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this document shall not be liable in any way for direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of the lost profits arising from the information contained in this material. Readers alone shall be fully responsible for any decision taken based on this document.
Copyright © 2021 Fintso
The best time to start investing is today You are different and so are your needs Why your returns are not the same as the market’s return? Understanding Taxation in Mutual Fund Investments
Like it or not, market volatility is an inevitable part of investing. When losses appear to be looming after touching the highs, it is understandable that investor’s make emotional decisions to cut losses.

In mid-March 2020, many investors were tempted to flee for the exit when the Nifty 50 Index fell by 38.4% from its peak. However, investors who remained invested saw the index rebound 13.6% in the following three days. Thereby, as an advisor, you can create a huge impact on your investors’ portfolio by correcting their behavioural mistakes.

Your first defence against these mistakes is to craft a diversified portfolio across different asset classes that matches your investors’ investment horizon and risk tolerance. During times of market volatility, while the risky investments - equities (domestic/global) may fall, the overall portfolio performance may not be so badly impacted.

A diversified portfolio is built of complementary assets that don’t usually perform the same way. This in turn smooths out the returns in volatile times and helps mitigate risk in the portfolio.

Consider an example of a multi-asset portfolio with allocation to equity, international equity, fixed income, and gold.



As seen from the above graphs, a multi-asset portfolio would have been far more resilient through volatile times compared to a pure equity portfolio.

Actionable Insights through Volatile times
Market volatility isn’t always bad news. Though it may be tempting to concentrate on losses caused by price fluctuations, there may be opportunities for gains.

1. Practically speaking, if an investor’s personal situation really hasn’t changed, then staying the course and riding through these periods of volatility is the logical course

2. Rupee cost averaging, the practice of doing a small top-up in your overall portfolio during volatile times

3. Selling some of your loss-making investments, a practice called taxloss harvesting may prove beneficial. This strategy can help you offset the taxes on your investment gains

  • The easing of lockdowns and low base of last year facilitated higher economic growth across sectors
  • While the economy is on the path to recovery, demand is yet to pick-up in a meaningful way
  • Also, the underlying threat from new variants and rising price levels could act as deterrent to the economic growth
  • Given the uncertainty around economic growth, we expect the RBI to continue with the accommodative monetary stance





If you are planning to take a home loan or have an existing home loan, you would be paying interest to a bank or housing finance company. As one repays the home loan through monthly EMIs, the accumulated interest cost over the tenure of the home loan can be astronomical.

For example, a home loan of ₹50,00,000 for a period of 20-years at 7.0% interest has an EMI of ₹38,765 and would make one pay a total of ₹93,03,587 (₹ 50,00,000 principal & ₹43,03,587 interest cost).

However, there’s a simple trick that can help make this home loan interest-free. For a home loan of 15-20 years, by starting a SIP of 0.10-0.25% of your total home loan amount outstanding, you can recover your total interest cost.

The SIP amount would vary depending on the home loan interest rate, tenure, and market returns.

Illustration: For a Home loan of ₹50,00,000

Assumptions: Returns from investment: 12.0%



Net Amount: Market Value of SIP less Total Investment through SIP less Total Interest Cost

A positive net amount in the above table indicates that one can recover the entire interest cost and the capital invested through SIP with a disciplined investment approach.

Note: For higher interest rates and lower tenure, the percentage of total outstanding required for SIP would be higher.

MODEL PORTFOLIOS



The information contained herein (the “Information”) may not be reproduced or disseminated in whole or in part without prior written permission from the Company. The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared based on publicly available information, internally developed data and other sources believed to be reliable. The directors, employees, affiliates or representatives (“Entities & their affiliates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy, reliability and is not responsible for any errors or omissions or for the results obtained from the use of such information. Readers are advised to rely on their own analysis, interpretations & investigations. Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements including those relating to general business plans and strategy, future financial condition and growth prospects, and future developments in industries and competitive and regulatory environments. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, they do involve several assumptions, risks, and uncertainties. Readers are also advised to seek independent professional advice to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this document shall not be liable in any way for direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of the lost profits arising from the information contained in this material. Readers alone shall be fully responsible for any decision taken based on this document.
Copyright © 2021 Fintso