GOODBYE FY '21-'22
The financial year came to a close and we have seen huge positive movements in the Sensex including all time highs through most of the third quarter and to the start of the fourth quarter. Suffice to say that most of us will be susceptible to capital gains tax if we have sold shares or mutual funds to book profits at any time this year.
ARTICLE 1
Do not hesitate to pay tax on Capital Gains
When the year has been kind to all of us, Capital Gains tax should be welcomed, as it signifies that we are making forward strides. Protecting, Nurturing And Enriching our portfolios to feed our dreams and goals. If you are making money, do not hesitate to pay tax on it. And if you are making losses, do not forget to file it with IT department in time as it can be set off over the next 8 years!
ARTICLE 2
Taxation on ESOPs
Another point of significance over the past 5 years has been the fact that more and more employers are welcoming employees with ESOPs. It brings in a sense of ownership sharing in the success of the company, whilst also being used as a strong retaining tool for talent. Remember there are twin taxes while dealing with ESOPs. One, at the time of allotment and another at the time of sale which we had discussed in our article earlier. Moreover, the tax liabilities differ for the listed and unlisted firms. Employees should therefore do the necessary due diligence to understand where they stand with respect to this investment.
ARTICLE 3
Understanding India's $400 billion export juggernaut
The Indian economy seems to have grown its exports from $291 Billion in 20-21 to $400 Billion. A jump of 41%. Again, while this signals a strong growth singularly, but if seen over the past 10 years it is a mere 3% per year.
The problem however is that 2020–2021 was a pandemic year. The global economy came to a standstill. Export programs were scrapped/delayed and most countries (including India) simply couldn’t ship goods abroad like they used to. So the $291 billion figure is an anomaly. In a good year without a pandemic, India would have exported a lot more than this figure. So, the 41% jump must be taken with a pinch of salt. Also the question of $400 billion export vs $600 billion of imports. Definitely a drain on our forex resources!
ARTICLE 4
Diversifying our investments abroad - Why is it required?
During the 2nd wave of the pandemic, the Indian economy was recovering fast, while Europe and US were battling a COVID-19 surge. And this year, the Indian economy would have faced a lock-down if the 3rd wave had hit us while the US did better. Diversifying overseas helps reduce country risk as some developed markets have a low correlation with Indian stocks.
ARTICLE 5
Investing abroad? What are the risks?
However not all countries are suitable for a geographical portfolio diversification. As Wall Street and Dalal Street tally the market damage triggered by Russia’s invasion of Ukraine, we find The Western Asset Core Plus Bond Fund, with $37 billion of U.S. mutual fund assets, declined more than 8% this year and about 3% since the conflict began. These investments in Russian securities were to diversify into emerging markets. Plan backfired!
ARTICLE 6
How to select the right Annuity Product
To end the year on a happy note, we also wanted to bring to your desk a note that we had prepared on annuities. Since most investors do take up an annuity plan to secure themselves or family during their retirement period, it seems well worth it to put down a checklist of the things you want answered by the provider. Are you asking the right questions before selecting your annuity plan? Are you even selecting the right annuity plan for yourself or for the family when you are not there? Is it in line with your other investments? Some of the common questions on annuities have been answered in this article so that you can take more informed decisions before buying the plan that you need.
GOODBYE FY '21-'22
The financial year came to a close and we have seen huge positive movements in the Sensex including all time highs through most of the third quarter and to the start of the fourth quarter. Suffice to say that most of us will be susceptible to capital gains tax if we have sold shares or mutual funds to book profits at any time this year.
ARTICLE 1
Do not hesitate to pay tax on Capital Gains
When the year has been kind to all of us, Capital Gains tax should be welcomed, as it signifies that we are making forward strides. Protecting, Nurturing And Enriching our portfolios to feed our dreams and goals. If you are making money, do not hesitate to pay tax on it. And if you are making losses, do not forget to file it with IT department in time as it can be set off over the next 8 years!
ARTICLE 2
Taxation on ESOPs
Another point of significance over the past 5 years has been the fact that more and more employers are welcoming employees with ESOPs. It brings in a sense of ownership sharing in the success of the company, whilst also being used as a strong retaining tool for talent. Remember there are twin taxes while dealing with ESOPs. One, at the time of allotment and another at the time of sale which we had discussed in our article earlier. Moreover, the tax liabilities differ for the listed and unlisted firms. Employees should therefore do the necessary due diligence to understand where they stand with respect to this investment.
ARTICLE 3
Understanding India's $400 billion export juggernaut
The Indian economy seems to have grown its exports from $291 Billion in 20-21 to $400 Billion. A jump of 41%. Again, while this signals a strong growth singularly, but if seen over the past 10 years it is a mere 3% per year.
The problem however is that 2020–2021 was a pandemic year. The global economy came to a standstill. Export programs were scrapped/delayed and most countries (including India) simply couldn’t ship goods abroad like they used to. So the $291 billion figure is an anomaly. In a good year without a pandemic, India would have exported a lot more than this figure. So, the 41% jump must be taken with a pinch of salt. Also the question of $400 billion export vs $600 billion of imports. Definitely a drain on our forex resources!
ARTICLE 4
Diversifying our investments abroad - Why is it required?
During the 2nd wave of the pandemic, the Indian economy was recovering fast, while Europe and US were battling a COVID-19 surge. And this year, the Indian economy would have faced a lock-down if the 3rd wave had hit us while the US did better. Diversifying overseas helps reduce country risk as some developed markets have a low correlation with Indian stocks.
ARTICLE 5
Investing abroad? What are the risks?
However not all countries are suitable for a geographical portfolio diversification. As Wall Street and Dalal Street tally the market damage triggered by Russia’s invasion of Ukraine, we find The Western Asset Core Plus Bond Fund, with $37 billion of U.S. mutual fund assets, declined more than 8% this year and about 3% since the conflict began. These investments in Russian securities were to diversify into emerging markets. Plan backfired!
ARTICLE 6
How to select the right Annuity Product
To end the year on a happy note, we also wanted to bring to your desk a note that we had prepared on annuities. Since most investors do take up an annuity plan to secure themselves or family during their retirement period, it seems well worth it to put down a checklist of the things you want answered by the provider. Are you asking the right questions before selecting your annuity plan? Are you even selecting the right annuity plan for yourself or for the family when you are not there? Is it in line with your other investments? Some of the common questions on annuities have been answered in this article so that you can take more informed decisions before buying the plan that you need.
