Smart Investing..

Last week the cabinet approved the Direct Tax Code bill and forwarded it to the parliament for approval. This is a good sign of the changes happening in the modern India. The Income tax act which we follow today is more than 50 years old. The objective is to widen the tax base and make the tax law much simpler & more effective. These are some of the salient feature's of the DTC for Resident & NRI Investors. Tax slabs to be changed Slab 1: Upto INR 200000 the tax rate is NIL. ( Present Slab 1 is upto INR1.65 lacs @ NIL) Slab 2:  INR 200,001 to INR 500,000 the tax rate is 10% ( Present slab 2 is INR 1.65 to 5 @ 10%). Slab 3:  INR 500,001 to INR 1,000,000 the tax rate is 20% (Present Slab 3 is INR 5 to 8 @ 20%). Slab 4:  INR 1,000,001 and above the tax rate is 30% ( Present Slab 4 is INR 8 & above @ 30%).             In the case of a resident individual of the age of 65 years or above, the basic exemption...

SEBI (Securities Exchange Board of India) banned the entry load on Mutual funds few months back which has now created a whole new dimension for investment management. I call it "U Manage U Reap" dimension. Today as an investor if you know the very basic of financial planning and  if you can make a decent plan for yourself  then the whole investment process can be managed online and that to for no fee (or very very less fee). There are websites through which you can go and invest your money like the websites of Asset management companies and there are also sites through which you can keep track of your investments like moneycontrol, yahoo finance, karvymfs etc and to top it up you also have websites through which you can request your statement of investments like karvymfs.com which gives you consolidated fund statements from Karvymfs + Cams+ FTAMIL all for free. Ok its true that it might not give you statements from all the  mutual funds availab...

Its after long that I restarted work on the blog. I have pasted the tax rules for the financial year 2010. I have received it from principal mutual fund.

You can check out the status of the recently issued IPOs like Adani Power and NHPC by clicking at the following link http://www.karvy.com/ipoStatus

National Hydroelectric Power Corporation ( NHPC ) IPO will be open for subscription today and is one of the most awaited IPOs in recent days. NHPC operates mainly in North and North-Eastern states and This miniratna is expected to get orders from countries like Bhutan and Nepal. This is a first PSU IPO after 17 months (REC is the last IPO – February, 2008). Indian government will get Rs. 2,000 crore by divesting its 5% stake in NHPC while company will get around 4,000 crore from this IPO. NHPC had earlier filled a draft red herring prospectus in April 2007, but it was turned down by market regulator Sebi, as the company did not have the required strength of independent directors on its board then. Later, the company again filed the IPO papers on August 6, 2008, but scrapped the plan due to poor market conditions. The real story behind the NHPC IPO is one about expansion and growth. NHPC is currently engaged in the construction of 11 hydroelectric project s, which will increase ...

The IPO of Adani Power , promoted by the owners of Mundra Port & SEZ, opens today on June 28 and plans to mop up to Rs 3,016 crore from the primary market. This is the second biggest in country's history after Reliance Power. Basic Details of the IPO: Books Open 28th July 2009, Tuesday Books Close 31st July 2009, Friday Price Band Rs.90 - Rs.100. Lot Size 65 x multiples of 65 Equity Shares Issue Size Primary offering of 301,652,031Equity shares (~13.8% of post issue capital) Employee Reservation 8,000,000 Equity Shares Net Issue Size 293,652,031 Equity Shares (~13.5% of post issue capital) QIB Book 60% of the Net issue size - at least 176,191,219 shares Retail Book 30% of Net issue size - not less than 88,095,609 shares HNI Book 10% of Net issue size - not less than 29,365,203 shares Book Running lead managers DSP ML, JM Financial, Enam, IDFC SSKI, Kotak, Morgan Stanley, I-Sec, SBI Caps The rough date of listing is around August 20 th 2009. As I write this blog artic...

Hi The entry load on mutual fund has been abolished by SEBI from August 1 2009. Its a double edged sword for lot of investors as the good part is that no entry load will be charged and the whole amount will be invested but the negative part to the whole story is hardly there will be any company who will give advice to retail customers. We can argue here by saying that advice is not required as anybody can decide on which funds to buy or sell. Though its not true because I remember a wealth managament company who during the last bull run, when market valuations were getting stretched had asked their clients to come out in a staggered way from equity MFs. Those clients who agreed to go with the companies advice had very less loss compared to those who stayed put thinking market will cross 25 K on Sensex. Similarly there are clients who take lot of new age allocations like gold and infra and make a mixture of various MFs and think that they have done something great. They realise the fail...