Budget 2021 Highlights | Budget 2021 Explained

In this live video, we discuss the Budget 2021 highlights. We have also tried to explained quite a few aspects of the India's 2021-22 Budget delivered by Finance Minister Nirmala Sitharaman. The union budget 2021 was well received by the stock markets as well. However, there were no relaxation in income tax rates for the middle class. We have discussed the reasons behind that. 

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We have discussed the following points and more announced in India's budget announced on 1st Feb 2021.

Budget 2021 Highlights

1. Creation of body to support bond markets which will buy investment grade bonds during both stressed and non stressed times 

2. Regulated gold exchanges with SEBI as regulator 

3. Deposit insurance - making deposits available also when banks are temporarily unable to honor deposits

4. LIC IPO on cards

5. 1500 crores earmarked to promote digital payments

6. Goa granted 300 crores for 50th year celebration

7. Fiscal deficit for 2020-21 pegged at 9.5%. Another 80K crores needed for which govt. will approach markets. 

8. 2021-2022 - Fiscal deficit to be at 6.8%. Below 4.5% by 2025-26. Original target was till 3% by 2020-21.

9. Contingency fund from 500 crores to 30K crores. 

10. Above 75 years of age only pension + interest income - no ITR. Paying bank will deduct the tax.

11. TDS form will come pre-filled with details of capital gains from listed securities. 

12. Zero coupon bonds by Infrastructure debt fund available for tax benefit

13. ULIP and PF - Tax exemption on interest for contribution of only upto 2.5L. Applicable after 1st Apr 2021.

This video was streamed live at 10 PM on 1st Feb 2021.

Active vs Passive Funds | Which is Better?

In this episode, we explain the difference between two types of mutual fund based on their management style i.e. Active and Passive funds.

Here is the summary of the episode:

Imagine India is playing a T 20 cricket match against Australia. While batting in the second innings, India has got a target of 180 runs to chase. Now, if India plays normally without taking any risks, they might be able to score around 120–140 runs. But, they won’t win the match. To win the match, India will also have to hit some big shots during the innings. Hitting big shots involves taking calculated risks. Sometimes it will pay off and sometimes it won’t. If it pays off, India will win the match. So, to win the match, some risk will have to be taken which may or may not pay off. Going by the current form of Indian cricket team, more often than not it will pay off. This is the simple concept of risk and return. To get higher returns, you have to take some risk.

In the same way, actively managed funds strive to get higher returns than the average market (Sensex or Nifty). To achieve higher returns than the average market, funds managers have to take calculated risk. They have to pick up the stocks that are not being picked up by the index. They do so by analysing economy, industry and the company. They take calculated risks based on their analysis. If the economy, industry and company behaves as per their expectations, they make higher returns than the average market. Sometimes, their expectations might not come true which leads to returns below the market average. A good fund manager will give you higher returns than market average or the passively managed funds, more often than not (like current Indian cricket team).

Your statement - “actively managed good mutual funds sometimes give poorer return than passively managed funds” can not be generalized”. Not every fund behaves the same way just like every cricket team has a different caliber. If a particular fund that you are monitoring is performing below market average more often than not, then you can say that the fund manager is not doing a good job. But, if a particular fund is giving returns above the market average most of the times, then it will be fair to say that fund manager is doing a good job.

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Tax Saving Schemes in India 2021 | 80C Investment Options Comparison | Tax Saving Investment India  

In this episode, 7 tax savings schemes in India have been compared. All these tax saving investment options provide tax benefit under section 80C of Income tax.   Following questions are answered in this video: 

1) PPF vs LIC which is better

 2) FD vs NSC vs PPF 

3) ELSS vs PPF

 4) NSC vs FD for 5 years

 5) LIC vs Sukanya Samriddhi Yojana

 6) PPF vs Mutual Fund

 7) PPF vs Sukanya Samriddhi Yojana

 8) LIC vs Term Insurance which is better 

 9) ULIP vs ELSS 10) ULIP vs Term Insurance

 11) ULIP vs LIC  

I’ve compared the schemes on following aspects:

  1) Return – How much return can you expect from the scheme?

  2) Lock in period – How many years do you need to keep your money into that scheme?

  3) Risk – Is the risk low or high in that scheme?

  4) Taxation of returns – This is an important point. All these schemes give same tax deduction benefit under section 80C. But not all schemes have the benefit of their returns not being taxed. 

  5) My recommendation – Finally, considering all the factors, whether I recommend you to invest in that scheme or not?  

Schemes compared:  

1) 5 year Fixed Deposit 

2) National Savings Certificate or NSC 

3) LIC Endowment Plans and LIC Moneyback Plans

 4) Sukankya Samriddhi Yojana

 5) Unit Linked Insurance Plan or ULIP

 6) Public Provident Fund or PPF

 7) Equity Linked Savings Scheme or ELSS

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In this podcast, we talk about 10 features of personal financial planning that we address at 7Prosper.

Subscribe to 7Prosper's Financial Planning service: http://bit.ly/3hYqLSZ 

Follow Anmol Gupta:  

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Follow 7Prosper on Instagram: https://www.instagram.com/seven_prosper/ 

Comprehensive Financial Planning comprises of multiple aspects of personal finance. At 7Prosper, we touch upon following 10 different aspects of your financial planning: 

 1) Goal setting

 2) Risk profiling

 3) Existing investments review

 4) Investments planning 

5) Loan planning

 6) Emergency fund

 7) Insurance planning

 8) Tax saving

 9) Monthly budget

 10) Financial plan for the family

 Listen to this episode of Money ki Baat to understand how we help you in each of the above steps of financial planning.

Franklin Templeton India Mutual Fund decided to shut down 6 schemes:

1) Franklin India Low Duration Fund

2) Franklin India Ultra Short Bond Fund

3) Franklin India Short Term Income Plan

4) Franklin India Credit Risk Fund

5) Franklin India Dynamic Accrual Fund

6) Franklin India Income Opportunities Fund

The decision to wind up was challenged by some investors. Now, Franklin is required to take consent of unit holders to wind up these schemes in an orderly fashion.

If you are invested in any of these schemes, watch this video to 

1) understand how can you recover your money?

2) what should you vote for during the voting process?

The next episode of MoneyKiBaat will be out on Sunday, 29th November. 

Stay Tuned :)

Sensex vs Nifty, which one should I follow? 

Sensex and Nifty are the two important indicators which are often used to measure the behavior of the market.

But what are they?

Why are they important?

Why these are considered as an indicator of the market behavior?

Are there any burning questions giving you sleepless nights? Write to us at [email protected]

Disclaimer: This podcast is for educational purposes only. Anything said should not be construed as advice. Make your investments only after consulting your financial advisor. If you're interested in our financial planning service, visit us at: https://bit.ly/2KeurTP

Dhanteras kya hai?

One of our most favourite festivals, Diwali is just around the corner. 

Diwali is one of India's most ancient festivals, and needless to say, some of the rituals and traditions also go back to that era. 

Diwali begins with Dhanteras. But what is Dhanteras? There are so many interesting stories behind it!

Listen to this episode of MoneyKiBaat to know the history behind Dhanteras.

One of our most favourite festivals, Diwali is just around the corner. 

Diwali is one of India's most ancient festivals, and needless to say, some of the rituals and traditions also go back to that era. 

Diwali begins with Dhanteras. But what is Dhanteras? There are so many interesting stories behind it!

Watch this episode of MoneyKiBaat to know the history behind Dhanteras.

#MoneyKiBaatAnmolGuptaKeSaath #7Prosper #dhanteras #dhanteras2020 #diwali2020 #Diwali

SEBI has given a green signal to the fund houses for the introduction of a Flexi Cap Mutual Fund category.

Watch the new episode of #MoneyKiBaat to know:

1. What is a Flexi Cap fund?

2. How does it differ from a Multi Cap Fund?

3. What does Flexi Cap Fund mean to your investments?

Are there any burning questions giving you sleepless nights? 

Write to us at [email protected]

Disclaimer: This podcast is for educational purposes only. Anything said should not be construed as advice. Make your investments only after consulting your financial advisor.