Page 2 - Your Money

Correction in IT funds: Avoid hasty exit or aggressive buying on dips

IT funds have declined sharply amid AI-led disruption fears. Experts advise investors to avoid panic exits or aggressive dip-buying and adopt a staggered approach

Who is a consumer: Courts focus on dominant objective to determine status

A recent Supreme Court ruling reinforces that developers and service providers must prove profit-first motive before denying consumer status

Quality funds: Long-term investors seeking sustainable gains may invest

These funds carry valuation risk and can lag during speculative phases of bull markets

FAST-DS: Pay fee and gain immunity from harsher Black Money Act

The scheme's key drawback is the low monetary thresholds of Rs 1 crore and Rs 5 crore, which limit participation

Revised return deadline extended to help belated filers, global earners

Bear in mind that substantial changes in a revised return can invite closer examination by tax authorities

Budget 2026 extends immunity to misreporting, but with key trade-offs

The proposal extends relief from penalty and prosecution in misreporting cases, but taxpayers must forgo the right to appeal and carefully weigh the strength of their case

Debt funds outlook post Budget: Focus bulk of portfolio on 2-4-yr maturity

They offer the sweet spot of reasonably attractive yields without excessive interest-rate risk

Dividend yield funds suit moderate-risk investors seeking lower volatility

These schemes invest in high-dividend stocks to cushion downside volatility, but they can underperform growth-oriented equity funds during strong bull market phases

Silver rally: Unwinding of premiums, profit-taking could trigger correction

New investors should enter gradually, invest with a 5-10 year horizon, and cap exposure at 5-7 per cent of the portfolio

Updated return: Found omissions after Dec 31? File ITR-U to cut legal risk

Scrutiny may extend to other assessment years if disclosures suggest a pattern of non-compliance

Zero-coupon bonds: For investors targeting specific, long-term goals

These bonds could prove risky for investors who might need to exit early

Invest in NPS Vatsalya if you have a long horizon and can forgo liquidity

The scheme may not suit investors who want liquidity, are targeting short- to medium-term goals, or are uncomfortable with equity volatility

Small-cap index at 8-month low: Take staggered, long-term fund exposure

Keep allocation measured and aligned to your risk appetite, given the segment's higher risk

Tackling portfolio overlap: Invest fresh money in underrepresented segments

When building a portfolio, diversify by market cap, style, and geography to minimise chances of overlap

Pharma & healthcare funds: Easing valuations, rising insurance aid outlook

Price controls by the Indian regulator, USFDA actions, and concentration risk are key concerns

Co-borrowers must be co-owners and contribute to EMIs to claim tax benefits

The deduction claimed must be in proportion to their ownership share and actual EMI contribution

Child insurance plans suit risk-averse parents seeking assured goals

Those prioritising higher returns and greater flexibility may prefer term cover with mutual fund investments

Align tax saving with your financial goals, horizons, and liquidity needs

Begin making these investments now, based on informed choices, instead of waiting till the last moment when mistakes are more likely

Flexi-cap funds: Invest if you prefer managers to handle market cap mix

Poor sector and stock selection calls can, however, lead to underperformance

AI-based financial scams: Set a family code word for emergency requests

Pause and verify the caller's identity independently before transferring funds