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SCIENCE OF SIP
What is SIP and how does it work : What is SIP and how does it work: Just like recurring account, in SIP investor commits fix amount on a regular basis. In fact SIP is more convenient and investor friendly than recurring deposit. Investor can start SIP in any of the mutual fund scheme. In this investor can decide a particular day of the month on which he/she wants to make investment. Once day is decided and mentioned in the application form, fixed amount gets debited from the account on that particular day and equivalent numbers of units get allotted to investor based on that day's NAV. Why SIP : Automatic Market Timing & Rupee Cost Averaging: The biggest advantage of SIPis you can time the market automatically, as irrespective...
Details On Rajiv Gandhi Equity Savings Scheme
The Finance Minister recently approved the operational features of the Rajiv Gandhi Equity Savings Scheme (RGESS), and I felt it was a surprisingly complicated scheme which really doesn’t offer any great benefit to investors. Who is eligible for RGESS? The intent of this scheme is to bring new people into equities and that means if you have ever bought any shares or traded in derivatives then you are ineligible for the tax benefits under this scheme. They are going to look at new investors on the basis of the PAN number so you are only eligible in this scheme if there have been no prior equity or derivative transactions in the Demat account linked to your PAN number. Your taxable income should also be less than Rs. 10 lakhs in order to be eligible for this scheme. If your taxable income is more than that then you don’t qualify for this scheme. How do you get the tax RGESS benefit? In order to get the tax benefit, you have to invest in one or more of the following: Stocks l...
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