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             Source : HDFC Mutual Fund

Making Sense of Capital Gains Taxation Making Sense of Capital Gains Taxation A simple guide explaining how shares, mutual funds, gold, bonds and property are taxed Capital gains tax depends on the type of asset and the period for which it is held. Below is a clear, category-wise explanation to help investors understand the tax impact in a simple and practical manner. 1. Taxation of Shares (Stocks) Listed Domestic Shares Holding Period Nature of Gain Tax Rate Up to 12 months Short-term 20% More than 12 months Long-term 12.5% Unlisted Shares and Foreign Shares Holding Period Nature of Gain Tax Rate Up to 24 months Short-term Income-tax slab More than 24 months Long-term 12.5% 2. Taxation of Mutual Funds Equity Mutual Funds (More than 65% in Indian equities) Holding Period Nature of Gain Tax Rate Up to 12 months Short-term 20% More than 12 months Long-term 12.5% Hybrid Mutual Funds (35%–65% equity exposu...

  The Hidden Cost of Delaying Investments In investing, timing often matters as much as discipline. While many investors focus on choosing the right product or market entry point, a far more common and costly mistake is simply delaying the decision to start . Even a short postponement can translate into a significant loss over time due to the power of compounding. Small Delay, Big Impact To understand the real cost of waiting, consider a simple example. An investor starts a Systematic Investment Plan (SIP) of ₹10,000 per month with an assumed annual return of 12% , investing over a 6-year period . If the investment starts today , the total corpus after 6 years grows to ₹10.47 lakh . If the investor delays by just 6 months , the final value drops to ₹9.28 lakh . A delay of 12 months further reduces the corpus to ₹8.16 lakh . The difference is striking. The Actual Cost of Waiting What appears to be a minor delay results in a meaningful financial loss: 6-month de...

 

SIFs Explained: How They Differ From Mutual Funds SIFs Explained: How They Differ From Mutual Funds Financial Desk | Investment Insight As Indian capital markets mature and investor needs evolve, a new category of investment products is gaining attention. These are Specialized Investment Funds or SIFs. Positioned between traditional mutual funds and alternative investments, SIFs aim to offer greater flexibility, advanced strategies, and enhanced risk management, while retaining the operational ease and tax efficiency of mutual funds. What Are Specialized Investment Funds (SIFs)? A Specialized Investment Fund or SIF is a mutual fund offering designed for sophisticated investors. While regulated within the mutual fund framework, SIFs are launched under a distinct brand identity to clearly differentiate them from conventional mutual fund products. ...

Taxation of Specialised Investment Funds (SIFs): A Complete Guide for Investors Specialised Investment Funds (SIFs) are emerging as a new investment option for sophisticated investors. While they offer flexible and advanced investment strategies, taxation plays a crucial role in determining actual returns. This article explains the taxation of SIFs for Financial Year 2025–26 in a simple, newspaper-style format. What is a Specialised Investment Fund (SIF)? A Specialised Investment Fund is a pooled investment vehicle that may follow equity-oriented, debt-oriented or hybrid strategies. Taxation depends on the nature of the fund, holding period and residential status of the investor. Tax on Income Distribution (IDCW Option) If an investor chooses the IDCW option, the income distributed is taxable in the hands of the investor. Tax is deducted by the fund house before distribution. Investor Status Tax Rate TDS Applicable Resident Investor As...

Don’t Put All Your Eggs in One Basket”: A Timeless Rule for Financial Safety The old proverb “Don’t put all your eggs in one basket” carries a simple but powerful message — if the basket falls, everything is lost. In personal finance, this wisdom is more relevant than ever, especially while managing long-term wealth and retirement savings. Many investors make the mistake of concentrating their money in a single asset — be it real estate, fixed deposits, gold, or even one type of mutual fund. While the intention is often safety or higher returns, such concentration can expose the investor to unnecessary risk. Why One Basket Is Risky Every asset class goes through cycles. Equity markets can be volatile, interest rates affect debt instruments, gold prices fluctuate, and real estate can remain illiquid for years. If all savings are tied to one asset and that asset underperforms or faces a downturn, the investor’s entire financial plan can be disturbed. For retirees, this risk is even ...

Ensuring Cash Flow After Retirement: Turning Savings into a Steady Paycheque Retirement is often described as a second innings of life — a time to travel, pursue hobbies, and spend quality moments with family. But behind this pleasant picture lies one crucial question: Will my money provide a regular income after I stop working? Unlike salaried years, retirement comes without a monthly paycheque. Ensuring steady cash flow therefore becomes the backbone of a stress-free retired life. Why Cash Flow Matters More Than Corpus Many retirees focus on how big their retirement corpus is, but the real challenge is converting that corpus into reliable monthly income. Expenses do not stop after retirement — groceries, electricity bills, healthcare, travel and occasional emergencies continue, often rising due to inflation. A large corpus without a proper withdrawal plan can still lead to anxiety and, in extreme cases, running out of money. The Bucket Strategy: Order in Your Finances One prac...

Sharp Fall in Gold & Silver ETFs: What Really Happened on 22 January 2026? Gold and silver Exchange Traded Funds (ETFs) witnessed a sharp correction on 22 January 2026 , with some silver ETFs falling 6–13% in a single trading session . At first glance, the fall appeared alarming. However, a closer look at the data revealed something unusual — gold and silver prices themselves declined only marginally . This raises an important question: If the metals didn’t crash, why did the ETFs fall so sharply? The answer lies in how ETFs are priced. Two Prices, One ETF Every gold or silver ETF has two distinct prices : NAV (Net Asset Value) This reflects the actual value of the gold or silver held by the ETF. Market Price This is the price at which the ETF trades on the stock exchange. Under normal conditions, the market price stays close to the NAV. But during periods of high demand, the gap between the two can widen. Why the Gap Appeared Gold and silver prices are discovered...

  Why Mid-Cap Stocks Are Back in Focus Now Mid-cap stocks have been under pressure for some time, and many investors have been wondering whether this segment still offers value. A closer look at the data suggests that mid-caps may now be in a healthier position than what the headline index returns indicate. The key reason lies not in prices alone, but in valuations and earnings growth . What has happened to mid-caps? From September 2024 to December 2025, the Nifty Midcap 150 Index delivered almost 0% price return . At first glance, this may appear disappointing. However, during the same period, the earnings of mid-cap companies grew strongly . Earnings Per Share (EPS) of the Nifty Midcap 150 Index increased from around ₹480 to ₹660 This translates into an EPS growth of about 37.5% At the same time, the Price-to-Earnings (P/E) ratio corrected by nearly 25% from its peak In simple words, earnings went up, but prices did not . Understanding this with a simple example ...

 

  Modes of Investing in Gold: Understanding Returns, Liquidity and Taxation Gold continues to play a crucial role in Indian investment portfolios, acting as a hedge against inflation and market volatility. While investors today have multiple ways to invest in gold— Physical Gold, Sovereign Gold Bonds (SGBs), Gold ETFs, and Gold ETF Fund of Funds (FoFs) —each option differs significantly in terms of liquidity and taxation, which directly impacts net returns. Physical Gold Physical gold, such as jewellery, coins, and bars, remains the most traditional form of investment with no upper investment limit. However, it involves concerns around storage, insurance, and purity, which depends on the jeweller. Liquidity: Physical gold is relatively liquid, but investors may face price cuts due to making charges, buy–sell spreads, and discounts at the time of sale. Taxation: If physical gold is sold within 24 months , gains are treated as short-term capital gains (STCG) and taxed as per th...

Why Low Correlation Matters In investing, risk is not just about market volatility—it is also about how different assets behave in relation to one another. This relationship, known as correlation , plays a critical role in determining how smoothly a portfolio performs across market cycles. Correlation measures whether asset classes move together or independently. When assets are highly correlated, they tend to rise and fall at the same time, increasing portfolio risk during market downturns. Low correlation, on the other hand, allows different assets to balance each other, helping reduce the overall impact of market shocks. Gold has historically demonstrated low correlation with both equity and debt. As seen in the correlation table above, equity and gold show near-zero or slightly negative correlation, while gold’s correlation with bonds remains minimal. This means gold often behaves differently when stocks or bonds experience sharp movements. Gold typically shows low correlation to e...

  Rolling Returns: A Clearer Lens to Judge Mutual Fund Performance Investors often judge mutual funds by looking at headline returns between two fixed dates. While this point‑to‑point method appears simple, it can be misleading. Market highs or lows at the beginning or end of the period may distort the real picture. This is where rolling returns offer a more balanced and insightful way to assess mutual fund performance. Rolling returns help investors understand not just how much a fund has delivered, but how consistently it has performed across different market phases. By shifting the start and end dates across multiple periods, rolling returns reduce the impact of short‑term volatility and provide a clearer picture of long‑term behaviour. What Are Rolling Returns? Rolling returns measure a mutual fund’s performance across multiple overlapping time periods rather than one fixed interval. Instead of calculating returns only from one start date to one end date, this method continuo...