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Kyron Finserv
At KyRon Finserv we provide a structured approach to your wealth creation journey by partnering as your trusted financial advisor.
Our mission is to provide a personalized framework and execution path to our esteemed clients helping them achieving their financial goals.
The range of services caters to the core pillars of any financial plan including Investment Planning, Retirement & Tax Planning and Insurance & Estate Planning collaborating with certified and proven industry experts in our organization.
Finance
UPS vs NPS – Kaun Banega Aapka Retirement Hero
Retirement planning is something we all think about at some point in our lives, right? It may seem far off, but planning in advance can make all the difference tomorrow. And with so many schemes and options available, it is normal to feel overwhelmed.The National Pension Scheme and the Unified Pension System are two schemes designed and initiated by the government to secure your post-retirement years.But you may ask: which one is right for me?In this blog, we’ll take a closer look at these two popular retirement plans, break down their key features, and help you understand how to make the best choice for your future. National Pension Scheme The NPS is a voluntary and long-term investment scheme for retirement initiated by the Government of India. The scheme is open to public-sector, private-sector, and even unorganised sector employees.Employees invest a portion of their income towards savings for retirement at regular intervals throughout the career or job. Post-retirement, income is generated from the corpus accumulated over the years. Also, a portion of savings is invested further in equities or debt instruments, which means that returns may not be guaranteed.Features of NPS:Voluntary scheme for employees and employers.Tax benefits for both self-employed individuals and employees under Section 80C and 80CCD.Benefits from equity or debt investments for potentially higher returns.Portability option, allowing you to continue even if you wish to switch jobs.Option to make partial withdrawals for emergencies.Unified Pension SystemThe UPS or Unified Pension System is an initiative taken by the Government of India to provide stability and financial security to government employees of the nation. It ensures the well-being of employees in their post-retirement years.Features of UPS:Only open to government employees as of now.Assured pension to employees after meeting certain criteria.Family pension in case of an employee's sudden demise.Assured minimum pension upon fulfilment of certain conditions.Indexation benefits on pensions.Lump-sum superannuation payouts.Let’s differentiate the schemes and learn about these in more detail.Eligibility Both government and non-government employees are eligible for the National Pension Scheme. UPS, on the other hand, is only available to government employees as of now.Minimum Pension AmountThere is no guarantee of minimum pension under the NPS scheme. However, the government guarantees ₹10,000 every month for government employees after they have served for at least 10 years under the UPS policy.Employees’ contributionThe employee contribution for both schemes UPS and NPS is the same i.e. 10% of the base salary.Employer’s contribution In NPS, the contribution of employers is 14% of the basic salary. Meanwhile, at UPS, the government contributes 18.5% of the base salary.Pension amountUnder NPS, pension amounts are market-linked and volatile. UPS, on the other hand, offers 50% of the average basic pay drawn over the last 12 months as a pension to the employees.Family pensionNPS does not offer any special provision for family pensions. The amount entirely depends upon the corpus generated over the years and the annuity plan chosen. Under UPS, however, 60% of the pension would be immediately made available to the family members of the employee in the event of the employee’s demise.Risk NPS is a market-linked scheme, so the returns are volatile and the risk associated with this scheme is higher. UPS provides risk-free, assured returns in the form of stable pensions to employees.Inflation adjustmentNPS doesn’t offer any option to adjust pensions against rising living expenses or inflation. UPS, on the other hand, offers adjustments for inflation based on the All India Consumer Price Index For Industrial Workers.Tax benefits 40% of the amount withdrawn as a Lump Sum from the corpus generated is tax-free, while the rest is taxable under the NPS. However, the government has yet to clarify how withdrawals under the UPS scheme will be taxed.Gratuity NPS does not provide gratuity benefits. UPS, however, includes gratuity payments along with additional payouts.Flexibility The NPS scheme is valid even if employees decide or wish to switch jobs. However, if government employees wish to switch to the private sector, they might not be eligible to continue with UPS.Which one is better?Both schemes have unique features and distinct advantages to offer. No one policy is inherently better than the other.NPS might be a suitable option for those who have a long way to go till retirement and who wish to benefit from returns from the equity market. Higher risk comes with the potential to generate higher returns, making it ideal for those seeking to grow their retirement corpus.UPS, on the other hand, might be an ideal option for employees nearing retirement who want a stable income stream to fund post-retirement expenses. With a guaranteed minimum pension and assured benefits after fulfilling certain criteria, it is a great choice for risk-averse employees.Prasad Iyer[Certified Financial Planner - CFP CM]
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Understanding Long-term Capital Gains Taxes: Budget 2024-25
There have been a lot of changes in this year’s Union Budget.If you want to understand all the new changes that took place in the new budget, especially in the case of Long Term Capital Gains, then we have got your back.In this article, we will look into the different asset classes such as real estate, equity shares, mutual funds, etc., and the tax that you have to currently pay on these assets and the tax that you paid earlier.Related article: Bachao Humhe – Tax se !!! WHAT ARE CAPITAL GAINS AND LTCG TAX? Capital gains arise when capital assets are sold for a profit or gain. These gains are taxable as per the Income Tax Act of India.Long-Term Capital Gains Tax (LTCG) is a tax imposed on capital gains from the sale of capital assets after a certain duration, as mentioned in the Income Tax Act. It is levied on all asset classes such as equities, debt, gold and real estate.But first, let’s learn about the recent updates as per the Budget.Starting from FY 24-25, there will be just two holding periods: 12 months and 24 months. All listed securities will have a holding period of 12 months. All other assets will have a holding period of 24 months.Starting FY 24-25, the annual exemption limit for LongTerm Capital Gains on equity shares, equity-oriented units, or Business Trust units will rise from ₹1 lakh to ₹1.25 lakh. The tax rate also increases from 10% to 12.5%.For any other financial/non-financial assets held by you, the rate of tax on LTCGs is 12.5%.For land and buildings, any sale made after July 23, 2024, will have a tax rate of 12.5% with no indexation benefits. Alternatively, the option of paying 20% tax with indexation benefit is available if the asset was acquired before July 31, 2024. GRANDFATHERING PROVISION FOR LAND AND BUILDING The Finance Bill 2024 proposes a grandfathering provision for long-term capital gains to be applicable on the sale of land and buildings acquired before July 23, 2024.Under this, the tax payable on LTCG will be the lower of either 12.5% without indexation (new law) or 20% with indexation (old law). Any excess tax under the new law over the old law (with indexation) will be disregarded.However, non-residents, companies, partnership firms, and LLPs cannot avail of grandfathering benefits for property acquired before July 23, 2024. Indexation benefits are not available for them. LTCG Tax for Different Assets Now, let’s talk about different capital assets' tax rates and holding periods for them to be considered as long-term capital gains. .st0{fill-rule:evenodd;clip-rule:evenodd;} Listed equity shares & Equity-oriented mutual funds Holding period: More than 12 monthsTax rate: 12.5%Indexation benefit: Not availableExemptions: Up to ₹1.25 lakhs per FY .st0{fill-rule:evenodd;clip-rule:evenodd;fill:#FFFFFF;} Movable assets such as paintings, jewelry, etc.. Holding period: More than 24monthsTax rate: 12.5%Indexation benefit: Removed .st0{fill-rule:evenodd;clip-rule:evenodd;} .st1{fill-rule:evenodd;clip-rule:evenodd;fill:#FFFFFF;} Unlisted equity shares Holding period: More than 24monthsTax rate: 12.5% with no indexationbenefit Business Trust Units Holding period: More than 12 monthsTax rate: 12.5%Indexation benefit: Not available Listed bonds, debentures, and fixed-income instruments Holding period: More than 12 monthsTax rate: 12.5%Indexation benefit: Removed Unlisted Bonds Holding period: Not applicableTax rate: As per income slabIndexation benefit: Not applicable Gold/Silver ETFs Holding period: 12 monthsTax rate: 12.5%Indexation benefit: Not applicable Physical Gold Holding period: 24 monthsTax rate: 12.5%Indexation benefit: Not applicablePrasad Iyer[Certified Financial Planner - CFP CM]
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Yeh Mutual Funds Kya Hai?
Decoding Mutual Funds – Definition of Market Caps, Benchmark, Comparison Criteria Yeh Mutual Funds exactly Kya Hai? This is a very common question I receive while doing financial awareness sessions or client meetings. With rapid marketing and DIY advertisements plus peer pressure in some instances a lot of people today either have misconceptions about mutual funds [‘you will lose money for sure’ attitude] or limited knowledge [‘it will double your money bro’ attitude]. While both scenarios are the extremes there is always a middle ground and balanced approach you need to take for everything in life. Mutual funds are actually simplified products best suited for retail who are aspiring to be part of a nation or world’s economic growth but don’t know exactly how to participate via stock buying from the primary or secondary market. This blog is an attempt to explain the main components for generic retail investor which should suffice understanding the product as they start investing into it. For more intricate nuances around categorizations and variations please feel free to refer to AMFI website for extensive research. What is a Mutual Fund? Mutual funds, simply put, is a pooling of money from investors and investing it in equity [stocks/unlisted or listed companies], bonds [corporate, state govt or central govt] and government securities. Each mutual fund has a scheme objective and is professionally managed by a fund manager who oversees the allocation and changes as per these objectives set. The gains generated from this collective investment scheme are distributed proportionately amongst the investors, after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV. In return, mutual fund charges a small fee which is governed and regulated by the Securities and Exchange Board of India [What is SEBI ] Types of Mutual Funds The normal retail investor is most interested in equity mutual funds which directly invests in stocks [e.g Reliance, Asian Paints, Zomato, PayTM etc.], businesses which they see or touch and feel in their everyday life. Anything apart from this like bonds, debt funds starts dwelling in to unknown territory for them and they try to avoid it completely. This approach is actually detrimental to long term wealth creation since real wealth is always created only by way of diversifying risks [not keeping all your eggs in one basket]. Basic knowledge of types of mutual funds and their objectives if known goes a long way in helping you make the right decision.There are various ways to categorize mutual fund schemes and at a high level all funds are either of the below 2 categories, Categorization basis Organization Structure Open-ended schemes: These schemes allow you to invest and redeem on ongoing basis at the current NAV [e.g: active funds like PPFAS, HDFC Large Cap etc.].Prime Investment Criteria: Compounding and AppreciationFund Examples: Axis Bluechip, Mirae Emerging Asset etc.Close-ended schemes: These schemes have fixed maturity date and generally utilized for instruments like tax-saver fund majority of the times. These lock-in periods can vary from 90 days to 5 years depending on the schemes and intended to work in favor of the retail investor by allowing uninterrupted investment journey throughout their tenure. [e.g: Kotak Tax Saver, Nippon Tax Saver]Prime Investment Criteria: Tax Planning, Govt Bonds, Long term InvestmentsFund Examples: Mirae Tax Saver, Quant Tax Saver etc. Categorization basis “Where they Invest” Equity Mutual funds: Equity mutual funds are funds where the fund manager directly invests in to stocks of particular companies in the listed stock exchange. The overarching principle for this option would be growth and dividends accrual over a period of time as the underlying economics of the company and where [sector, countries] where it operates. [e.g: Reliance, Asian Paints, HDFC Bank etc.].Prime Investment Criteria: Compounding and AppreciationFund Examples: SBI Emerging Equity, HDFC Small Cap etc.Debt Mutual Funds : Debt funds are generally fixed-income securities and their overarching theme for investments would be in to bonds, securities and government treasury bills. They invest in various fixed income instruments such as Fixed Maturity Plans (FMPs), Gilt Funds, Liquid Funds, Short-Term Plans, Long-Term Bonds and Monthly Income Plans etc. Since the investments come with a fixed interest rate and maturity date, it can be a great option for passive investors like Senior Citizens or Pensioners looking for regular income with minimal risks.Prime Investment Criteria: Capital Preservation, Post Retirement PlanningFund Examples: UTI Dynamnic Bond, Nippon India Strategic Debt Fund etc.Hybrid Mutual Funds : Or alternatively known as Balanced Funds focus on mix of stocks and bonds to reduce volatility to the long term and short term performance of the fund. They can be both fixed ratio or flexible ratio funds in terms of 60% equity and 40% debt or vice versa. Hybrid funds are suitable for investors looking to take more risks for ‘debt plus returns’ benefit rather than sticking to lower but steady income schemes.Prime Investment Criteria: Capital Preservation, Retirement Planning, Medium Risk ProfilesFund Examples: UTI Dynamnic Bond, Nippon India Strategic Debt Fund etc.Solution or Sector Oriented Funds : These funds typically focus on a particular theme (sectoral theme like infrastructure, technology etc.) or timeline (pension, post retirement etc.) and focus on only those type of companies or stocks or investments which can provide returns mapping to the theme. They generally are high risk funds or high volatile funds depending on the theme chosen. Timing the entry and exit becomes very important in these fundsPrime Investment Criteria: Alpha Returns Generation, Riding the Macro economic Cycle or themeFund Examples: SBI Magnum ESG, Sundaram Financial Opportunities, Canara Robecco Consumer Trends etc.Index Funds : Index funds are the simplest form of funds in that they only copy the underlying benchmark index stocks they are mapped to like Nifty 50 stocks, Sensex 30 stocks, BSE Midcap Top 100, NSE Top 200 etc. Since there is not much study required into choosing the stocks of these funds they are generally the least expensive fund manager fees wise and very popular amongst the passive investor segment. The downside of-course is the earning potential over longer period of times with professional fund management and alpha generation is not available. One false assumption generally by retail clients is they are safer than equity stocks or other mutual funds. This is untrue cos they have same risks as their underlying benchmark which are made up of stocks.Prime Investment Criteria: Low-Cost Option, Non-Researched, Pensioners ChoiceFund Examples: UTI Nifty 50, HDFC Index etc.While the above categorization should help you at high level understanding what mutual funds are the very expanse of financial services and fund management styles entails various categorizations possible. Some of the more popular ones are below for reference,Risk Based Funds Categorization: Very Low-Risk, Low-Risk, Medium-Risk, High-Risk.Specialized Mutual Funds: Index Funds, Funds of Funds, Emerging Market Funds, International Funds, Real Estate Funds, Commodity Focussed Funds, Exchange Traded Funds Common Definitions Market Cap: Market capitalization shows the size of the company and its aggregate value.Market Capitalization = (Total no of outstanding shares) * (Price of one share)Outstanding Shares refers to all shares currently owned by stockholders, company officials, and investors in the public domain.Take an example of Reliance Industries as of today,Market Cap = (Total no of outstanding shares) * (Price of one share)Reliance Market Cap = 61,71,002 * 2345 = 144,710.11 Lacs = ~14.41 Billions INRLarge, Mid and Small CapThere is no hard and fast rule for categorization of the companies based on the market capitalization. If you refer to different financial websites, the range of market cap will vary for different capitalization. In general here is the commonly accepted classification of companies based on the market capitalization in Indian stock market. (as per SEBI guidelines) Other Common Terms Flexi Cap: This primarily refers to mutual funds which invest across all the Large, Mid and Small at a flexible ratio. This is a very common fund choice for long term investing and for investors who don’t want to worry about specific market caps and its volatility (mid, small caps) or its lower alpha (large caps) e.g: Kotak Flexi Cap, Canara Robecco Flexi Cap etc.ELSS: Equity Linked Saving scheme is generally a tax savings scheme with a lock in period of 3-5 years useful to save tax under Section 80C.) e.g: Quant Tax Plan, HDFC Tax Saver etc. More on tax saving options covered in our other blog [Bachao Humhe – Tax se !!! - kyronconsultants.com]Corporate Bonds: A very common Debt fund which invests into a mix of Government securities or bonds like REC, NHAI [atleast 80% as a ] and also private corporates to generate returns little over inflation rate with minimal risk and sovereign guarantees. e.g: Nippon India Bond, Axis Corporate Bond etc.Liquid Funds: These funds are actually a debt fund which invest in fixed-income instruments like commercial paper, government securities, treasury bills, etc. with a maturity of up to 91 days. Generally investors can get their withdrawals processed within 24 hours. These funds carry the lowest interest-rate risk in the debt funds category and very commonly used to park funds for short period to preserve capital.Benchmark: Benchmark is the reference or criteria of comparing any mutual funds return against the theme its investing.. for e.g: A Large Cap mutual fund would always be compared to NIFTY 100 TRI benchmark returns, a flexi cap with Nifty-500 TRI, a small cap fund against Nifty – 250 TRIAUM: Assets Under Management is the total amount that is being managed by the fund manager under the mutual fund. This is the actual invested and appreciated amount of the investors put together in the mutual fund. Usually new funds would initially start with few hundred crores and over longer period of time with appreciation and fund performance balloon easily to few thousand crores.NAV: Net Asset Value is the actual price of 1 unit of a mutual fund. Most mutual funds when they come out with new offering peg this at INR 10 face value. As the performance of the mutual fund grows the NAV grows too. This though should not be directly coorelated to the price of a mutual fund meaning less NAV is not better than higher NAV. A higher NAV may infact reflect growth over long years. This though should be compared to benchmark and other factors including some highlighted below before choosing any fund.XIRR: Extended Internal Rate of Return is the return calculation of investments or redemptions done at varied times of varied amounts as well. This is the ideal criteria to apply to understand your returns in a mutual fund where the investments and redemptions happen not in a fixed pattern. Unfortunately many of the broker portals do not showcase this prominently for your portfolio as of today. Many financial advisor portals and apps do showcase this by default and should be utilized to thoroughly understand your portfolio performance.Absolute Returns: This is a simple calculation done on your portfolio from investment to gain or loss perspective. This gives the larger picture but not specifics of exact yearly or accrued performance over a period of time. This though is a good indicator of how far you have come in your investment journey when looked at from multi year perspective.Rolling Returns: This is a very important metric generally used by financial advisors while evaluating any mutual fund returns. What it reflects is a point to point return calculated over the entire life cycle of the mutual fund. More than anything else it displays the consistency of the fund manager approach and churn rate or volatility of the fund. Higher churn rates mean higher transactions charges which affect the NAV of any fund but gets hidden. Understanding this return is critical while choosing any mutual fund for long term investing.Expense Ratio: This is the total expense charged by any mutual fund and includes the fund manager and distributor fees. Generally regular plans expenses would be higher compared to direct plans with underlying assumption of the distributor providing professional advice and guidance as part of recommendation or creation of your portfolio. A DIY investor can opt for direct plans though all initial investors would be better off taking professional guidance as they start their journey to understand the nuances before attempting on their own. One very critical aspect to keep in mind in equity investments is “time” is the actual currency and not the “money”. A few years lost making below average returns cannot be regained. Likewise more the number of years you have in hand guarantees an above average returns if invested in disciplined manner without interruptions or redemptions.RiskoMeter: A riskometer is a pictorial representation of the risk a mutual fund carries. The graph is designed according to the Association of Mutual Funds in India (AMFI) guidelines. Though not complete in its purpose for customized requirements of individuals, what it successfully highlights is the volatility an investor should expect with the fund. Lower Risk will always mean average inflation adjusted returns and Higher Risk would map to above average returns. Both are essential based on who is investing and for what purpose basis their risk profile. A senior citizen with no income should ideally opt for Low Risk funds or a balanced approach while a young investor who has just started his career can easily digest higher volatility in his fund choices as long as it delivers above average returns over long periods of time. A prudent financial advisory would always ensure a mix of risk basis life stage of their clients.Rebalancing becomes an important aspect at regular block of intervals [common one being age criteria of 35, 40, 50, 55, 60 years etc.] Let’s take 2 examples across different categories of Mutual fund to understand the above definitions better.Mirae Asset Large Cap Fund – Regular Plan As you can see for Mirae Asset Large Cap the NAV as of 29 Sep 2023 is 87.795 with an expense ratio of 1.54%. Its rolling return displayed of 1 year period is 1.05% and this can be computed for various cycles and time periods. The AUM of the mutual fund which is total asset under management is 35,349 INR Crores as of the date. Its investment returns compared to its benchmark is displayed over multiple years as belowKotak Short Term Bond Fund – Direct PlanKotak Bond is a Debt fund with rolling returns of 7.46% as of Sept 2023 with a AUM of 13, 240 Crores, expense ratio of 0.36% and with a moderate risk profile as per Riskometer. It’s a capital preserving fund which provides returns adjusted over inflation over longer period of time as can be seen in the table below If you are a beginner, the above information should suffice to understand the basic nomenclatures used related to mutual fund investments and make you a little more confident discussing or considering this asset class to achieve your financial goals. Any more feedback please do reach out to us directly at info@kyronfinserv.com or leave a comment at the bottom of this blog.Disclaimer: All the funds mentioned in examples are randomly chosen and not any recommendations. Please engage your financial advisor or mutual funds distributor before making any investments.Image and Data Source: Various social media sites including Money-Control, AMFI etc.
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Bachao Humhe – Tax se !!!
January 1st half is invariably the time of the year when everyone young and old starts scrambling to look out for tax saving options. Generally, the reminder for the salaried class is when their employers start requesting for tax declaration evidence shared way back in April last year – otherwise salary in hand is going to be less for the next 3 months!!The ideal way is to plan this year on year and preferably at the start of the fiscal year itself, but this of course is the more boring option for majority and hence the last minute scramble. Though there are multitudes of options available today (apart from the insurance policies or the Home Loan toh hai na default option), the likelihood of someone choosing the incorrect option is very high. Why? Cos employers ko certificate evidence kal dena hai!Here are some quick references for what option would work the best as per your financial situation or needs,For the Age Bracket [20-40]Ideally at this age bracket your options can be adjusted into a mix of short term [for liquidity] and long term [for better tax efficiencies]. Ideal options can be chosen are from below,Employer Provident Fund or Voluntary Provident Fund – This is a must for all salaried class and should be opted as much as possible for the compounding magic to work at time of retirement.Public Provident Fund – Provides the triple E benefit of Entry Exempt, Interest Exempt and Exit Exempt - no taxation but with a lock in of 15 years and extending option.National Pension Scheme – Pension scheme which provides a long-term safety net post retirement and worth allocating some amount each year as soon as you start your career. Lock in period is till retirement age [minimum of 55] but provides an option to mix equity debt allocation as well as per your age bracket on manual or auto mode as preferred.Home Loan – Both principal and interest are ideal ways to save tax if already availed. Though the interest option has a upper limit of 2L INR.ULIPs [Unit Linked Insurance Plans] – Better option than NPS since the lock in period is lesser, taxation is zero for switching between equity and debt but ideal only if held long term till completion of policy to reap benefits. Also, it may not necessarily provide you with the life cover you need since investment is directly related to coverage.Tax ELSS Funds – Mutual fund route to save tax is ideal if you don’t want to lock in your money for a very long term like above options. Its minimum of 3 years post which you can withdraw the amount anytime. Taxation of course needs to be managed for any gains above 1L INR during withdrawal which is taxed at 10%For the Age Bracket [40-60]By this age generally you are earning enough for your own provident fund contribution itself taking care of the major part of the 1.5L INR upper limit under Section 80C and if you still are owning a house on loan then the rest would be taken care by the principal amount of the loan. Ideal options to be chosen during this period would be,Employer Provident Fund or Voluntary Provident Fund – This is a must for all salaried class and should be opted as much as possible for the compounding magic to work at time of retirement.Sukanya Samriddhi Yojana Scheme -- applicable for individuals with daughters younger than 10 years, the interest earned is tax free similar to PPF contribution. This account can be opened for maximum 2 daughters but overall contribution cannot exceed 1.5L INR limit. Lock in till daughter reaches age of 18.National Pension Scheme – still a valid option in this age bracket since it provides a mix of equity and debt albeit conservative approach is recommended above the 40-year age.NPS – additional contribution of 50K under section 80CCD (1B) – nominal amount which can be added over and above the 1.5L INR markHome Loan – Both principal and interest are ideal ways to save tax if already availed. Though the interest option has a upper limit of 2L INRTax ELSS Funds – Mutual fund route to save tax is ideal if you don’t want to lock in your money for a very long term like above options. Its minimum of 3 years post which you can withdraw the amount anytime. Taxation ofcourse needs to be managed for any gains above 1L INR during withdrawal which is taxed at 10%For the Age Bracket [60+]At this age bracket unless you have ongoing income via business or other avenues the income generated is significantly lesser and the default tax saving option should be chosen with capital preservation in mind than return generation. Reason is the interest income being generated is most likely used for daily, monthly expenses and any volatility is unacceptable at this stage of your life. Some common options you could opt,Senior Citizens Savings Scheme (SCSS) – One of the best schemes for senior citizens (above 60 years bracket) with healthy return of 8% currently. With many inherent advantages of safety, consistent high returns the only downside is it has an upper limit of 15 L. Ideal way to utilize would be to open an account each in own and spouses name to avail full benefit. Defence personnel can opt any age [not 60 and above] as long as they fulfill other criteria’s of retirement, voluntary or otherwise.National Savings Certificate (NSC) – Probably an option once the SCSS limit is exhausted. Interest rates are lower and again lock in of 5 years is applicable.Tax Saving Bank Fixed Deposit [TAX FDs] – probably a choice which should be at the bottom of priority but nonetheless applicable due to safety nets. Tax on interest is applicable as per the tax slab of the individual so eventual return may not beat the inflation. Other common options that can be utilized across any age brackets are the Life Insurance Policies and Pension Plans but their returns traditionally have been much lower than inflation rates so should not be preferred over above options specifically to save tax. Their utility is exactly what they are for which is Insurance of life and accumulating pension corpus. Below table should be a good guideline whilst you make this important decision each year, Beyond all the Do It Yourself (DIY) actions above ideal scenario would be to always consider these investment decisions aligning to your personal financial planning. Contact a personal financial professional or advisor who would be the best judge to look at this holistically and suggest the right vehicle as per your financial health and status each year. With the lock-in period, varying returns and taxation laws being different in each area it would be prudent to take professional guidance in these matters. So, April is the correct month to plan and act, not January - Prasad Iyer [Certified Financial Planner – CFP CM]
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As an Amateur – How to build an Equity Stocks Portfolio ?
If you are new to direct equity investing and wondering how to start - best approach would be to do what Mutual Funds do in terms of setting up their portfolios. Below are quick 10 pointers to get started,1. Diversify - across sectors, across businesses, across geographies as well.2. Invest only after you have understood the most basic aspect of how the company generates profits or plans to in the near future (new-age businesses).3. Better to allocate major portion atleast 90% of your investments in to proven businesses- proven means a business which is profit making across longer business cycles (2-3 decades plus).4. The remaining 10% could be your riskier bets including new age businesses - key aspect is you know you may lose all this money while you learning basics of reading financial statements, understanding business cycles, new age valuation theories and differences in various sectors.5. Try and invest in what you can touch/feel/experience in your daily life - e.g FMCG products, Autos,Paints, Banks,Jewellery are common examples. It will start to make you look at the finer aspects of why some businesses doing well over others. The reason maybe You! You prefer certain toothpastes, beauty products, cars or e-comm over others. That would be the basic moats of the businesses.6. Stay away from sectors or stocks which don’t fit in to criteria of #5 - e.g specialty chemical or CRAMs create no instant recall in our minds - you need time to evaluate such businesses.7. Learn to stay with a business at least for 4 quarters initially. read and attend their quarterly conference calls. Anything less than that would not give you enough time to understand what they do or can in the future.8.Start with moderate returns expectations - little more than FD rates per year.9. Build conviction and concentrate more as you understand businesses better than just that random tip, news noise and volatility of the stock price.10. Ground to the fact that this is a 24*7 learning process. You never become a true expert at predicting markets, stock price etc. It’s ever evolving and ever changing and that’s what makes it an ever-fertile learning ground.
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Direct Stocks or Mutual Funds Hi Sahi Hai?
In today’s hyper flow of information and data, making a quick and clear choice has become more time consuming than actually executing a decision. Most common example of this I can relate to is how every weekend when we sit as a family to watch any movie, the initial time is spent just browsing the plethora of apps (Netflix, Sony Liv, Disney Hotstar, Amazon Prime) and its options thrown to you. … Direct Stocks or Mutual Funds Hi Sahi Hai?Read More »
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Here is What Our Clients Have to Say
Rohan Krishnan
I’ve been a client with Kyron Finserv for 4 months and it’s been an excellent experience. Their onboarding process is seamless, and they maintain transparency throughout. They’re always prompt in addressing my queries, and Prasad’s expertise shines through in portfolio discussions. Their focus on goal-oriented growth, not blind returns, aligns perfectly with my financial plans.
Rohan Krishnan
I’ve been a client with Kyron Finserv for 4 months and it’s been an excellent experience. Their onboarding process is seamless, and they maintain transparency throughout. They’re always prompt in addressing my queries, and Prasad’s expertise shines through in portfolio discussions. Their focus on goal-oriented growth, not blind returns, aligns perfectly with my financial plans.
Priyanka Nemade
Having advice from Kyron Finserv and working with Prasad for my personal finance and tax planning has given me an extensive and deep understanding at how I must plan my finances. His approach is detailed in expenses, earnings and subsequent future planning. One begins to think on those lines and has a huge impact on our financial goals. Factoring personal goals, inflation and pension pool saving and investment becomes a fuss free job! His guidance is not like someone who put you on diet for cutting corners.. His approach is systematic and goal oriented. Like for women who work today, having a financial advisor and long term investment planner is paramount and Kyron just fulfills that in every way!
Priyanka Nemade
Having advice from Kyron Finserv and working with Prasad for my personal finance and tax planning has given me an extensive and deep understanding at how I must plan my finances. His approach is detailed in expenses, earnings and subsequent future planning. One begins to think on those lines and has a huge impact on our financial goals. Factoring personal goals, inflation and pension pool saving and investment becomes a fuss free job! His guidance is not like someone who put you on diet for cutting corners.. His approach is systematic and goal oriented. Like for women who work today, having a financial advisor and long term investment planner is paramount and Kyron just fulfills that in every way!
Kiran Naik
I got in touch with Kyron Finserv last year and it has been a fantastic experience till now. Prasad and team spent a good time with us initially, to understand the goals and expenses in detail and then suggested the best suitable plan. In today’s world of information overload and continuous monitoring, it’s easy to get misguided for short team gains. On this aspect especially, I found Prasad very grounded and focused on my particular goals, which has in turn kept me unperturbed by the day to day happenings in the market. Wishing Kyron Finserv all the very best and looking forward towards a long partnership.
Kiran Naik
I got in touch with Kyron Finserv last year and it has been a fantastic experience till now. Prasad and team spent a good time with us initially, to understand the goals and expenses in detail and then suggested the best suitable plan. In today’s world of information overload and continuous monitoring, it’s easy to get misguided for short team gains. On this aspect especially, I found Prasad very grounded and focused on my particular goals, which has in turn kept me unperturbed by the day to day happenings in the market. Wishing Kyron Finserv all the very best and looking forward towards a long partnership.
Imran Mohammed
My experience with KyRon Finserv for my financial planning has been very good. Prasad was very thorough in gathering all the required information necessary for financial planning. After that the plan was prepared and explained to us and then all the agreed plan items were executed in a very seamless and professional manner. I feel very confident of reaching my financial goals.
Imran Mohammed
My experience with KyRon Finserv for my financial planning has been very good. Prasad was very thorough in gathering all the required information necessary for financial planning. After that the plan was prepared and explained to us and then all the agreed plan items were executed in a very seamless and professional manner. I feel very confident of reaching my financial goals.
Keshav Maheshwari (SAP Lead - Rayven IT Solutions) Palak Khemani (CA - Audit Manager - Deloitte Consulting US)
KyRon Finserv has been very helpful in our financial goals mapping particularly future needs of our son’s higher education and our own retirement planning. As we stepped in to parenthood it was critical to assess these needs and have a roadmap in place to achieve the milestones. Their personalised approach to mutual fund investments has given us the confidence and instilled a discipline which should help us in the long run. Wishing them the best and would recommend their services for planning your financial well-being.
Keshav Maheshwari (SAP Lead - Rayven IT Solutions) Palak Khemani (CA - Audit Manager - Deloitte Consulting US)
KyRon Finserv has been very helpful in our financial goals mapping particularly future needs of our son’s higher education and our own retirement planning. As we stepped in to parenthood it was critical to assess these needs and have a roadmap in place to achieve the milestones. Their personalised approach to mutual fund investments has given us the confidence and instilled a discipline which should help us in the long run. Wishing them the best and would recommend their services for planning your financial well-being.
Harsha Nair
The advice given by Prasad and team has really helped me understand the importance of financial planning and money growth. I found the advice reliable and looking forward to many more years of growth together !
Harsha Nair
The advice given by Prasad and team has really helped me understand the importance of financial planning and money growth. I found the advice reliable and looking forward to many more years of growth together !
Mr Dipen Gada
The man behind KyRon Finserv is a very dynamic person and has influenced me in many ways. From the time when Prasad became my financial advisor, things around have changed in terms of my financial stability and thought process.. setting goals and planning long term investments. I had never given it much importance earlier but have positively changed with help of Prasad and his team.. Thank you and all the best to the entire team.
Mr Dipen Gada
The man behind KyRon Finserv is a very dynamic person and has influenced me in many ways. From the time when Prasad became my financial advisor, things around have changed in terms of my financial stability and thought process.. setting goals and planning long term investments. I had never given it much importance earlier but have positively changed with help of Prasad and his team.. Thank you and all the best to the entire team.
Sonali and Irfan
Most people aspire to be financially planned and savvy, but in reality, don’t know how to start and hence find it very daunting, to begin with. What is unique about Prasad is, that he makes the process very comfortable for you. In addition to his deep integrity and financial acumen, he is a very patient listener and communicates with empathy. He simplifies your financial planning process irrespective of where you are on that journey. We have begun ours, thanks to Prasad and his team at Kyron. We wish Kyron Finserv all the best, and are very happy to recommend them to start your financial planning journey today.
Sonali and Irfan
Most people aspire to be financially planned and savvy, but in reality, don’t know how to start and hence find it very daunting, to begin with. What is unique about Prasad is, that he makes the process very comfortable for you. In addition to his deep integrity and financial acumen, he is a very patient listener and communicates with empathy. He simplifies your financial planning process irrespective of where you are on that journey. We have begun ours, thanks to Prasad and his team at Kyron. We wish Kyron Finserv all the best, and are very happy to recommend them to start your financial planning journey today.
Harish Wani - Director - LTMindtree (Mumbai)
KyRon Finserv has provided me with end to end solution for all my financial planning and execution needs. Their well-structured and personalized financial planning report helped me understand the investments required for my children’s education, marriage, and other financial goals along with the most critical – post-retirement needs. Being new to mutual funds, having a guided approach has been very helpful and I am a lot more assured and confident of achieving all my financial goals. Thanks to the team and Prasad.
Harish Wani - Director - LTMindtree (Mumbai)
KyRon Finserv has provided me with end to end solution for all my financial planning and execution needs. Their well-structured and personalized financial planning report helped me understand the investments required for my children’s education, marriage, and other financial goals along with the most critical – post-retirement needs. Being new to mutual funds, having a guided approach has been very helpful and I am a lot more assured and confident of achieving all my financial goals. Thanks to the team and Prasad.
Mrs Latika Nigade
As you sow, so shall you reap” something all of us live by, but how much to sow so as to reap enough to live carefree during retirement is best explained and guided by Prasad and team. Thank you Prasad for your professionallism, patience and trustworthiness to make sure the financial goals for me and my family are met. I sleep so much better knowing this complicated bit of my life is in your safe hands.
Mrs Latika Nigade
As you sow, so shall you reap” something all of us live by, but how much to sow so as to reap enough to live carefree during retirement is best explained and guided by Prasad and team. Thank you Prasad for your professionallism, patience and trustworthiness to make sure the financial goals for me and my family are met. I sleep so much better knowing this complicated bit of my life is in your safe hands.
Ritu Khabia
Prasad@kyronfinserv helped me rebalance my mutual fund portfolio as per my life stage and fund requirements. Earlier my approach to investing was random and chaotic. I used to invest in any mutual fund that struck my fancy whenever I had some money lying around. Prasad has streamlined all my mutual fund holdings. I am now assured of optimum returns and minimum stress. Thanks a lot for giving me financial peace of mind, finally!!
Ritu Khabia
Prasad@kyronfinserv helped me rebalance my mutual fund portfolio as per my life stage and fund requirements. Earlier my approach to investing was random and chaotic. I used to invest in any mutual fund that struck my fancy whenever I had some money lying around. Prasad has streamlined all my mutual fund holdings. I am now assured of optimum returns and minimum stress. Thanks a lot for giving me financial peace of mind, finally!!
Sandeep N.
Thanks to KyRon Finserv I know my financial health and goals much better than ever before. They have helped me with a structured plan and approach to achieving each of my financial goals. This has given me peace of mind and confidence in being on the right track of my financial well being.
Sandeep N.
Thanks to KyRon Finserv I know my financial health and goals much better than ever before. They have helped me with a structured plan and approach to achieving each of my financial goals. This has given me peace of mind and confidence in being on the right track of my financial well being.
Narendra G
Prasad and his tax expert team provided me with quick guidance and closure on a tax filing requirement in India. Being in the US and able to rely on them for all my tax compliance needs has been a very stress-relieving experience, thanks to their professionalism.
Narendra G
Prasad and his tax expert team provided me with quick guidance and closure on a tax filing requirement in India. Being in the US and able to rely on them for all my tax compliance needs has been a very stress-relieving experience, thanks to their professionalism.
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