Page 725 - Personal Finance

Bonus stripping? Be careful

It has a tax advantage but can also land you in trouble with the tax department for booking capital loss, less liquidity and high premium in the futures market

Short-term fall, long-term gain

Lower crude oil prices should be good, despite a likely slowdown in FDI. If fundamentals get better at the same time, there will be a good opportunity for the long-term investor

All NFOs aren't bad for the portfolio

Avoid similar or large schemes. But if there is one that is beneficial from the tax or strategy perspective, consider investing in it

What is more lethal for your portfolio...

Fear of having missed out on the bull run or the greed of squeezing more from markets

Axis bank reduces base rate by ten basis points

The lender has revised its base rate to 10.15% from 10.25%

Sell shares of unlisted companies through off-market transfer

With a number of regional stock exchanges facing closure, this is perhaps the only option for investors

Avoid churning your portfolio too much

The taxman may classify the gains from investment as business income, which could be taxed at 30%

Not everyone needs a term plan

Pure life covers are meant to replace loss of income for an earning family member. Hence, senior citizens and children should not be insured for life

Loan against shares, MFs not a good option

While rates are lower than personal loans, not all scrips are eligible. You will need to provide additional liquidity if value of the security falls

Dealing with legacy investments

Wading through your age-old investment documents to redeem your hard-earned money back can be quite a pain for your child. Hence, ensuring you've kept all your details and nomination in place can go a

40 Years Ago...and now: Health insurance- From only govt to baby steps by the private sector

With health care costs rising 18 per cent annually, having a high cover has become a necessity

Case study

Why open offers aren't attractive for many investors

If the share price runs up, sell in the secondary market. Tax anomaly makes these offers unattractive

General Insurance: Bhargav Dasgupta

Neemrana (Rajasthan): High appreciation potential

Airlines' liability limited unless consignment value declared

Stay invested for making money

Otherwise, figure out the impact of taxes and brokerage costs if you think your trading or stock-picking skills can beat the index

EPFO to launch online PF transfer for PF trusts this month

EPFO has developed a mechanism by which PF accounts can be transfered online from an un-exempted firm to exempted organisation

Good time to buy commercial property

Since prices are at rock bottom, you will get capital appreciation on the property value. These also offer higher rental yields than residential property

Exit load is good for investors

But avoid sector funds that have such loads because of their cyclical nature