Tax law on assets abroad; heat shield at home: Top personal finance stories

This week we write about how to file tax returns for investments or income in foreign countries

This week’s lead story by Bindisha Sarang highlights the importance of declaring foreign investments and assets. It discusses the consequences that can arise if there are discrepancies in the disclosure of foreign assets in Income Tax Return (ITR) filings. The article also explains the requirements of Schedule FA, who needs to report foreign assets, what assets need to be disclosed, and so on.

With temperatures hitting over 50 degrees in cities like Delhi, it’s vital to adopt strategies to keep homes cool and prevent heat-related illnesses. Some of the key methods one can employ include having light-coloured exteriors, tinted films, specific plants, and natural elements like water bodies and traditional materials. Read this article by Namrata Kohli for practical tips on creating a cooler, more sustainable living environment.

After delivering a category average return of 53.6 per cent over the past year, small-cap funds are now investors’ favourites. These funds have a strong track record over the long term, with an average return of 20.5 per cent over the past 10 years. However, new investors should be prepared for returns to mean revert and should consider these funds only if they have at least a seven-year horizon. If you are seeking a fund from this category, look up Morningstar’s review of DSP Smallcap Fund.

Interest rates in the economy are currently at or near peak levels. The Reserve Bank of India may reduce the repo rate later in this calendar year. To benefit from current rates, consider investing in fixed deposits. Check Policybazaar.com’s table for an overview of rates offered by small finance banks, private-sector banks, public-sector banks, and foreign banks.

NUMBER OF THE WEEK

 
Rs 34,697 crore: Net inflows into equity funds
 
Net inflows into actively managed equity funds of Rs 34,697 crore in May surpassed the previous high of Rs 28,463 crore in March 2022. Equity schemes fetched almost Rs 19,000 crore in April this year.
 
The almost twofold month-on-month jump in May was underpinned by robust collections from the new fund offer of HDFC Manufacturing Fund and sustained inflows through systematic investment plans (SIPs).
 
Gross inflows through the SIP route surged to a new high of Rs 20,904 crore in May, up from Rs 20,371 crore in April. Net SIP inflows stood at Rs 9,226 crore.
 
Mutual funds’ equity buying reached a record Rs 46,666 crore in May 2024, more than offsetting the Rs 22,159 crore sold by foreign portfolio investors. This purchasing power of domestic institutional investors has provided a newfound stability to the equity markets, which is now less dependent on the flows of foreign institutional investors.