#MoneyArth

Index funds are not the only form of passive investing, but they are the most common form. An index fund defines the stocks (or bonds) it owns by owning the same stocks as those that are included in known and measured indexes. Index Funds today are a source of investment for investors looking at a long term, less risky form of investment. The success of index funds depends on their low volatility and therefore the choice of the index. What is an Index Fund? Many investors are aware of the benefits of diversifying their portfolio across assets. Index funds often catch their eyes in this search as they refer to funds that invest in a broader market index – like the Sensex or the Nifty. All the stocks in these indices will find some representation in their investment portfolio. This theoretically ensures a performance identical to that of the index, which is being tracked. Low expense ratio is its main USP. Index funds are not actively managed funds, thus incurs low exp...

ETF vs Mutual Funds What Are Exchange Traded Funds? Exchange Traded Funds, or ETFs, are one of the several options available to investors in our investment universe. They are structured like a fund and help invest across several asset classes. In the Indian context, equity ETFs are in prime focus, though they can potentially provide access to fixed income, currency, and commodity asset classes as well. Gold ETFs follow equity ETFs in terms of popularity in India, and bond ETFs and theme-based ETFs have also seen the light of day in recent years. The key feature of ETFs is that they track an index which forms the investment basket for the fund. Its portfolio comprises of the same securities in the same proportion as that of the index. In this way, ETFs can be understood to be passive investment vehicles. Their portfolio composition changes only when the underlying index is rebalanced. This can happen periodically like quarterly, half-yearly or yearly. The ownership unit ...

#Budget2020 speech was one of the longest in history with the FM touching on many different aspects of the economy. Below are the key highlights of the budget: Ø  Introduction of a new personal income tax regime with lower tax rates but without the availability of most deductions and exemptions. The new regime will have lower rates of 10%/15%/20%/25% vs. existing of 20%/30% for different buckets, and will be optional to the individual. Ø  Abolition of Dividend Distribution Tax. Henceforth, dividend income will be taxable at the hands of the end investors, who will pay tax based on their marginal income tax rate. This move will be beneficial for investors whose income is less than 7.5L p.a. but not for others. Ø  Window for settlement of litigation cases, faceless assessments & appeals, pre-filled ITR will all help in increasing the tax breadth of the economy Ø  100% tax exemption to Sovereign Wealth Funds for investments in priority sectors till 20...