Page 4 - Guide To Personal Finance

File revised return with caution as repeated filings invite scrutiny

A taxpayer who does not revise their return within the stipulated deadline would be stuck with the original return, including its errors

Overlook recent outflows and invest in ELSS if you are in old tax regime

They remain attractive for investors having higher risk appetite and longer horizon

Don't let tax rate hikes disrupt wealth creation through equity funds

International, gold and silver funds and ETFs will be taxed more favourably from next year

BAFs: Check equity exposure range; select fund based on risk appetite

Currently, retail investors perceive equity market valuations to be expensive

Conservative hybrid funds can be a better bet than fixed deposits

Asset allocation ensures investor gets small exposure to stocks in a predominantly bond portfolio

Buy adequate home insurance to rebuild property in case of monsoon damage

Use carpet as measure area to determine the sum insured

Stop revolving credit card dues and replace with lower-cost debt

"Credit cards demand responsible usage. Due to high interest rates, late payments on credit card bills can snowball, pushing you into a debt trap," says Adhil Shetty, CEO, BankBazaar

Cashless claim denied? Bank on credit card, pledge gold or fixed deposit

Keep some emergency cash at home and ensure your credit card limits are adequate

Fear the market turbulence? Ulips will keep your investment safe

Some insurers have been advertising their mid- and small-cap funds heavily. Some distributors and agents have also piggybacked on the popularity of mutual funds (MFs) to sell Ulips

Engine protection cover: Must-have in areas prone to heavy rains

While traversing a flooded road, water can enter engine, causing damage. This is usually not covered by comprehensive policies. To get this coverage, customers need to buy the engine protection cover

Mutual funds or NPS? Go for both if you don't mind latter's lock-in

MFs offer investors access to a wider range of assets (gold and international funds), fund houses and fund managers. Barring ELSS, the open-ended funds offer anytime liquidity

Business and economic cycle funds: Dynamic style provides the edge

Business cycle funds invest in themes expected to do well over the medium to long term, such as digital businesses, prem­ium­isation of consumption, and urbanisation

Switched jobs? Align multiple Form 16s for accurate income tax filing

Also ensure that Form 16 and Form 26AS contain identical TDS details

Gratuity explained: Delay in payment? You are entitled to receive interest

Organisations with 10 or more employees over the past year must pay gratuity. In non-mining roles, a year consists of 240 working days; in the mining sector, it is 190 days

Fix mismatches between Form 26AS and 16 before income tax filing

Form 26AS is a consolidated tax statement showing taxes deducted, tax credits, income sources, and tax deducted at source (TDS) and tax collected at source (TCS)

Don't chase past performers in equity markets, build all-weather portfolio

The bottom line: switching strategies does not boost returns

Special situation funds: Ideal for high-risk investors with long horizon

These funds at times invest in companies going through corporate restructuring, such as mergers, demergers, or buybacks

Retirement MFs: Equity allocation, flexible withdrawal options key benefits

Stay invested even after lock-in ends to gain from compounding

New mutual fund investors: Set goals and assess your risk profile

Knowing these parameters will allow you to determine the optimal asset allocation, essential for building a portfolio

Select a smart-beta fund based on your risk tolerance; restrict exposure

Aggressive investors may choose momentum-based factor funds