Investing in Infrastructure bonds FY 2010 – 2011

As you know during FY 2010 – 2011 if you invest in long term infrastructure bonds you will get tax benefit. The limit of investment for tax benefit is Rs 20,000.
 
This Rs 20,000 is apart from the regular investments under section 8 0 ( c ). So after looking at this don’t make a quick decision to invest in these bonds to avail tax benefit. Consider your taxable income, other investment avenues, inflation etc before investing in it. 
 
I have come across a good article and here giving the link for the readers. Please go through it and make decision whether to invest in these bonds or not.
 
Investing in long term infrastructure bonds
March 11, 2010 | Filed Under Income Tax | Leave a Comment 

Income Tax new Slabs FY 2010 - 2011

 Income Tax new Slabs FY 2010 – 2011

 
I know it’s some what late to write a post on new tax slabs of FY 2010 - 2011. But I am giving here the details of the slabs so that it would be easy to refer for the regular readers.  
 
The finance minister’s announcement on new slabs for FY 2010 – 2011 in Feb brought much delight of middle class people. It would save nearly Rs 50,000 to some salaried classes. I will post an example calculation in a new post. 
 
Your income                                    -      Tax liability(%)
General:
Rs  0 -  1,60,000                           -   Nill
Rs. 1,60,001 – Rs. 5,00,000      -   10%
Rs. 5,00,001 – Rs. 8,00,000      -   20%
Above Rs. 8,00,000                     -    30%
 
Women:
Rs 0 -  1,90,000                           -   Nill
Rs. 1,90,001 – Rs. 5,00,000      -   10%
Rs. 5,00,001 – Rs. 8,00,000      -   20%
Above Rs. 8,00,000                     -    30%
 
 
Senior citizen (65 years or above):
Rs   0 -  2,40,000                          -   Nill
Rs. 2,40,001 – Rs. 5,00,000      -   10%
Rs. 5,00,001 – Rs. 8,00,000      -   20%
Above Rs. 8,00,000                      -   30%
 
 
Rs. 20,000 tax exemption will be provided for investments in long term infrastructure investment bonds. This is in addition to the already allowed exemption of Rs. 1,00,000 under section 80 ( c ).
 
Tax Exemption will be given for contribution to the Central Government Health Scheme (CGHS).
 
Please visit the below link for FY 2009 – 2010 tax slabs.
 
FY 2009 – 2010 tax rates
 
 
 
 
March 11, 2010 | Filed Under Income Tax | Leave a Comment 

Mutual Funds - Risk Measures

There are quite a number of risk measures which give key information on the risk taken by the portfolio manager. The following is the list of some risk measures used in the world of mutual funds. 

Relative Volatility
Standard Deviation
Alpha
Beta
Information Ratio
Sharpe Ratio
Treynor’s Ratio
Tracking error
R Square  

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February 20, 2010 | Filed Under Mutual Funds | Leave a Comment 

Exchange Traded Funds (ETF) – Indian ETFs

An exchange traded fund (ETF), as the name implies trades on an exchange just like any other stock but tracks an index, a commodity like an index fund. As far as trading is concerned, it’s like a stock from the perspective of an investor. An investor can short, use margins provided by depository participants/brokerages.

From functional point of view it combines the characteristics of both open and closed ended funds. Since it is traded on an exchange NAV/price changes at every moment during the trade hours (of course subjected to the liquidity in the fund) similar to a closed ended fund. 

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January 26, 2010 | Filed Under Mutual Funds | Leave a Comment 

Mutual Funds – Market Cap Breakdown

Market cap breakdown is applicable for equity funds. It gives information about the market capitalization range of the shares the fund is investing in. In general large cap companies’ shares are considered to be less risky compared to medium and small cap companies. So this breakdown information is also a decisive factor while choosing a scheme.

Market capitalization of a fund is usually given in one of the below 2 bucket formats.

BIllion Buckets

Calculation

Let’s say an AUM of a mutual fund is Rs 100 cr. And it invested this amount as given below Read more

January 9, 2010 | Filed Under Mutual Funds | Leave a Comment 

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