Budget Expense
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www.finerva.com Equity Shares • Current Yield – Low • Capital Appreciation – High • Typical Returns - 19.25% as per SENSEX returns since 1979 • Risk – High • Marketability / Liquidity – High • Tax Treatment - No long term capital gains tax after 365 days. Dividends received are tax free • Convenience - High
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Transcript of Budget Expense
www.finerva.com
Equity Shares
• Current Yield – Low• Capital Appreciation – High• Typical Returns - 19.25% as per SENSEX
returns since 1979• Risk – High• Marketability / Liquidity – High• Tax Treatment - No long term capital gains tax
after 365 days. Dividends received are tax free• Convenience - High
www.finerva.com
Debentures
• Current Yield – Moderate• Capital Appreciation – Moderate• Typical Returns - 8% depending on company• Risk – Low• Marketability / Liquidity – Average• Tax Treatment - Interest received is taxable• Convenience - Average
www.finerva.com
Mutual Fund - Equity• Current Yield – Low• Capital Appreciation – High• Typical Returns - 39% Average over 3yrs
Highest return - 69%• Risk – High• Marketability / Liquidity – High• Tax Treatment - Section 80C benefits for Equity
Linked Savings Schemes. No long term capital gains tax after 365 days. No tax on dividends received.
• Convenience - Very High
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Mutual Fund - Debt
• Current Yield - Moderate • Capital Appreciation – Low• Typical Returns - 8% Average over 1yr• Risk – Low• Marketability / Liquidity – High• Tax Treatment - Dividends received are tax free• Convenience - Very High
www.finerva.com
Bank Deposits
• Current Yield – Moderate• Capital Appreciation – Nil• Typical Returns - 8% Average • Risk – Negligible• Marketability / Liquidity – High• Tax Treatment - Section 80C benefits for 5 year
deposit. All interests are taxable • Convenience - Very High
www.finerva.com
Public Provident Fund
• Current Yield - Moderate but locked till end of the term
• Capital Appreciation – Nil• Typical Returns - 8%• Risk – Negligible• Marketability / Liquidity – Low• Tax Treatment - Section 80C benefits. Maturity
tax free. Can not be attached in case of insolvency
• Convenience - Low
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Life Insurance Policies - Endowment
• Current Yield - Moderate but locked till end of the term
• Capital Appreciation – Nil• Typical Returns - 5.5% Average • Risk - Moderate • Marketability / Liquidity – Average• Tax Treatment - Section 80C benefits and
Section 10 (10)D benefits• Convenience - Low
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Rent from house
• Current Yield – Low• Capital Appreciation – High• Typical Returns - 5% Maximum• Risk – Negligible• Marketability / Liquidity – Low• Tax Treatment - Expenses can be deducted
before calculating tax• Convenience - Fair
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Gold and Silver
• Current Yield – Nil• Capital Appreciation - Moderate • Typical Returns - Matching inflation• Risk – Average• Marketability / Liquidity – High• Tax Treatment - No tax benefits capital gains tax
applicable• Convenience - High
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ULIP's with minimum 5 times cover
• Current Yield – Nil• Capital Appreciation – High• Typical Returns - 28% Average over 3 yrs• Risk - Can be adjusted based on market
conditions• Marketability / Liquidity - High (but after three
years)• Tax Treatment - Section80C and Section
10(10)D benefits • Convenience - High
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ULIP Pension plans
• Current Yield – Nil• Capital Appreciation – High• Typical Returns - 28% Average over 3 yrs• Risk - Can be adjusted based on market
conditions• Marketability / Liquidity - High (but after three
years)• Tax Treatment - Section 80C benefits & 1/3 tax
free commutation on maturity amount. Pension received is taxable
• Convenience - Average
