The MoneyPlant

  For every taxpayer 31stMarch on calendar starts ringing a bell and for the salaried, there is an additional reminder from the office HR office to furnish proof of tax savings. A tax saving avenue that has gained wide popularity among taxpayers is the possible ways to save tax under Section 80C of the income tax. Let us see all the options to avail this benefit.. Among all the options ELSS is most suited to younger/middle aged taxpayers as they have sufficient time to let the compounding do the magic of wealth creation. Equity Linked Saving Scheme or ELSS is a  type of mutual fund scheme that primarily invests in the stock market or Equity. Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act. The advantage ELSS has over other tax Saving instruments is the shortest lock-in period of 3 years. individual/ HUF are entitled to deduction from their gross income of the amount invested in ELSS. The main benefit of this

  Everyone's investment journey should start with some risk free investments so they can estimate the returns required to reach to their financial goals with certainty. Post office saving schemes are government assured schemes. When you cannot risk your capital like after retirement or at very early stage when income and liabilities are disproportionate, Post office saving schemes are a good option with moderate returns. Among the below mentioned alternatives, PPF and SCSS are commonly preferred. Let us know about them.. 1. Post Office Savings Account The minimum deposit to open a Post Office Savings Account is Rs.500. The account can be opened in single or joint ownership by domestic customers. An interest rate of 4% p.a. Is applicable to the deposits. You can avail of a cheque book, ATM card, e-banking and mobile banking services, and other services with the account on request. 2. 5-Year Post Office Recurring Deposit Account (RD) As the name suggests, the tenure of this RD accoun

How to get Passive income..   Passive income is money you earn that doesn’t require you to do a lot of “active” work to continue making it. In essence, you can do most of the work upfront and put some additional effort along the way to earn an income. Passive income can be a great way to help you generate extra cash flow, and the economic upheaval largely caused by the  COVID-19 crisis  is a testament to the value of having multiple streams of income.   Let us discuss how we can add those extra bucks to pocket. Here are some ideas.. ·          Use your primary skill set for some extra time apart from your job for personal earnings.ie you can be a tutor for whatever you know the best. Courses can be distributed and sold through sites such as  Udemy ,  SkillShare  and  Coursera . ·          Convert your hobby to a profession. If you are an artist ,try selling your   artwork. ·          Try writing blogs about what you know well. If they attract readers, you can get ad income. ·

     The word ' Retirement ' may click relaxed life, no 9 to 5 struggle & enhanced social life to many minds. Yes ..It's true but there is other side to the coin as well. That is, no fixed income, increased medical expenses & a bug of Inflation eating the value of existing corpus. The proper steps taken at early age to create a sufficient corpus which will fund all the financial needs till death is a  Retirement Planning process. There are practically two stages in later life. Following are the typical goals with expected financial actions. Now the major task is to decide the required Retirement corpus. 1.Estamte monthly household expenses. Add yearly expenses like House Tax, Insurance etc.   2.Consider the average inflation to be 6% 3.Calculate the Future Value of expenses. 4. An extra 5 – 10% of the estimated expense can be added to it as a precaution. 5. Apart from your living expenses, it is highly recommended for retired individuals to hold Health Insurance and

       Marriage is the happiest event in each one's life. But that is not the end; instead it is a beginning of a long journey. This is the time where one needs to foresee responsibilities with financial planning. To help start the process, ask yourself these questions -  Typical goals will be - Stage -I Stage - II  Guidelines  to achieve..                    1. Add Nominee to all existing financial instruments like Bank accounts   Investments etc                   2.Get adequate Life & Medical  Insurance for you & your spouse.                   3. Do the Tax Planning. ELSS MFs are the best options for Tax saving.                   4. Refer to our Blog Sowing the MoneyPlant for percentage asset allocations to  each class.                   5. At this stage, more than 50% should be in Equity or Equity oriented instruments like Mutual  Funds or create your own Stock Portfolio.                   6. The total earning after tax should be balanced between NEEDS & WANTS. Creat

                                    Various investment avenues exist to help you invest your savings and earn the highest possible returns with the lowest potential risk. These are broadly categorized as asset classes and some examples include, but are not limited to, cash and cash equivalents, bonds, derivatives, equities, real estate, gold, commodities, and alternative investments. Let us understand in details about each one. 1.Fixed-income asset class: One of the most popular investment options among Indians, the fixed income asset class is one of the oldest forms of investment. It includes corporate and government bonds, corporate debt securities, money market instruments, etc. Such asset class typically invest in debt securities that endeavor to pay investors interest until maturity 2.Equity asset class: Equity or stock are shares of ownership issued by companies. Equity has gained popularity over the last decade.  Equity funds  are further sub-categorized into s