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4/8/2020 Step-by-step guide to help you start investing in mutual funds online
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MF portfolio doctor: Mahajan should take IN THE SPOTLIGHT

Why Term Insurance is crucial if
inflation into account when setting future you are Self Employed?
target
The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and
their suitability with regard to the goals and, if required, recommends corrective measures.
All About Tax Saving
The advice given is based on funds performance, goals, etc.
Tax saving deadline extended for
ET CONTRIBUTORS | Last Updated: Mar 16, 2020, 06.30 AM IST FY2019-20: Here's how it
impacts you
Getty Images Not many investors know whether they have
invested in the right funds and if their fund
portfolio is on track. Tax-saving investments for FY
2019-20 allowed till June 30,
2020
The Portfolio Doctor assesses the health of
the fund portfolio, examines the schemes
and their suitability with regard to the goals How to save income tax via
and, if required, recommends corrective medical expenditures under
sections 80D, 80DD, 80DDB, 80U
measures.
You must avoid fixed deposits and go for debt funds for The advice given is based on the You can save over Rs 1 lakh in
tax efficiency. tax just via these 4 avenues
performance of the funds, the risk profile of
the investor as well as his financial goals.
More From All about tax-saving ▜

1. Chirag Dutta is saving for his children’s goals and his retirement. Here’s what the
doctor advised:
Related Most Read Most Shared

Goals
Your debt mutual fund portfolio in the age of
coronavirus
How to diversify my mutual fund portfolio?
Manish Gunwani on how to recession-proof your

portfolio
Portfolio check-up Portfolio Characteristics of Axis Focused 25 Fund

Investing in a mix of small-, mid- and largecap equity funds for the past 3-4 years. Axis Focused 25 Fund - Portfolio Strategy
Early start means even small 5% hike in SIPs can help achieve all goals.
This is the time to churn your portfolios: Hiren Ved
Plans to retire early at 51, so Rs 10 crore won’t be enough. Corpus must last 30-35
years.
Portfolio has small and mid-cap bias so be ready for volatility.
Avoid fixed deposits and go for debt funds for tax efficiency.
DISCOVER MUTUAL FUNDS
Investor’s existing portfolio

All Mutual Top Tax
Funds Saver Funds
Better Than Low Cost

Fixed High Return
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Where to invest money for less than 1 year
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Senior Citizens Savings Schemes
Note from the doctor EPF Passbook Download Tips to buy Gold Bars
Don’t buy insurance as investment. Ulips offer low returns due to high charges. Short-term Investment Options
Review investments and rebalance at least once in a year.
Reduce risk when goal is near so that you don’t miss the target.
Not to be Missed
Govt defers updation of base year for
2. Take inflation into account when setting future target CPI-IW
Rohitash Mahajan is targeting a corpus of Rs 4 crore in 22 years. Here’s what the
doctor has advised:
IT to face disruption now, but will
revive: Pravin Rao
Goals
Goldman pegs India's growth at 1.6

per cent in FY21
Rishi Sunak next in line as UK PM

deputy after Raab
Govt extends term of Banks Board

Bureau members
Portfolio check-up
Started investing in equity funds last year. Is Europe beating the virus? Experts
Holds a good mix of funds but mostly from same fund house. urge prudence
Target of Rs 4 crore seems big but inflation will erode purchasing power.
Assuming 7% inflation, corpus will be worth only Rs 90 lakh after 22 years.
Will yield monthly income equal to Rs 30,000 for 25 years. Roundup: UP goes on the offensive,
Review investments and rebalance at least once in a year. seals off hotspots
Investor’s existing portfolio

ICICI & HDFC lead the pack in
digitization: Report
Must Read - Incredible opportunities

offered by J.P. Morgan to its
employees
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special services
Sanders drops 2020 bid, leaving Biden

Assumptions used in the calculations as likely nominee
Inflation
Education expenses: 10%
For all other goals: 7%
Lockdown: HDFC deploys Mobile
ATMs across India
Returns
Equity funds: 12%
Debt options: 8%
Cash payment co to offer cash at
doorstep to Sr citizens
(Portfolios analysed by Raj Khosla, Managing Director and Founder,
MyMoneyMantra)
Govt to soon issue guidelines for real

If you want your portfolio examined, write to etwealth@timesgroup.com with "Portfolio
estate sector
Doctor" as the subject. Mention the following information:
Names of the fund you hold.
Current value of the investment.
Boris Johnson stable, responding to
If you have SIPs running in any of them.
docs in ICU
The financial goals for which you invested.
How much you need for each financial goal.
How far away is each goal.
Bennett University to hold online
Click here for all the information and analysis you need for tax-saving this financial conference on Covid19
year
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here
do not reflect the views of www.economictimes.com.)
Investor Portfolio Savings SIP Goals FinMin allows states to borrow Rs 3.20
Read more on
L cr from market
Also Read
Your debt mutual fund portfolio in the age of coronavirus
Low public spend on healthcare may
How to diversify my mutual fund portfolio? pose challenges
Manish Gunwani on how to recession-proof your portfolio
Portfolio Characteristics of Axis Focused 25 Fund
Axis Focused 25 Fund - Portfolio Strategy Relief to Indian students stuck in US,
Canada, UK soon
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Can you always make money by investing in IN THE SPOTLIGHT

a falling market? you are Self Employed?
It is said that whenever the stock market starts plummeting the way it has from 17 Jan
2020, it brings an opportunity for those who have cash (investible surplus) with them to
invest in a falling market. Is it true? All About Tax Saving
ET CONTRIBUTORS | Last Updated: Apr 08, 2020, 11.57 AM IST
ET Online By Harshad Chetanwala
FY2019-20: Here's how it
impacts you
It is said that whenever the stock market
starts plummeting the way it has from 17 Jan
Tax-saving investments for FY
2020, it brings an opportunity for those who
WEALTH NEWSLETTER 2019-20 allowed till June 30,
have cash (investible surplus) with them to
Enter your in
invest email id market. Is it true?
a falling
Subscribe Now 2020
Home Wealth Tax Save Invest Insure Spend Borrow Earn Plan Real Estate How
Personal to save
Finance income
News tax via
Podcast TomorrowMakers More
The IMF chief has said that the world is in a medical expenditures under
worse recession than the one in 2008 which sections 80D, 80DD, 80DDB, 80U
was precipitated by the Lehman crisis and
the containment of Covid-19 virus will define the strength of recovery. Since most of the
You can save over Rs 1 lakh in
countries across the world are close to a complete lockdown in operations or are already tax just via these 4 avenues
locked down, the impact of the current crisis could be far more than the impact of 2008
Financial Crisis.
Another thing that we must keep in mind is that the 2008 financial crisis was a “man made”
crisis, the current global crisis is because of a virus which is highly contagious, and the
vaccine for it will be ready only next year. Having said that there is no denial that Most Read Most Shared
economies across the world are on their way to one of the biggest slowdowns in the
Trump changes course, backs India's position on
history. Such a slowdown will have a direct impact on the stock markets and can result in a
hydroxychloroquine
significant correction in global stock markets. Last time such correction in stock market
Lockdown beyond April 14? Centre mulls extension
happened in 2008 and let us see whether investing during uncertain times work for us.
after state govts, experts raise red flags
At present, those who have existing investment in equities are staring at the value of their Modi drops hints about possible extension of
coronavirus lockdown
investments going down significantly and few have reached a stage where the return from
equity investment is negative. It is important to be calm and follow asset allocation during Radhakishan Damani, the only Indian tycoon to get
richer under lockdown
such market conditions. Also, we should avoid selling or redeeming until there is a need for
money or we would like to invest in a better company or fund. Coronavirus impact: Evidence mounts that the
global recession is already here
During the 2008 Financial Crisis, the stock market was down by 60% from 8 Jan 2008 upto More »
9 Mar 2009. On 8 Jan 2008, BSE Sensex closed at 20,873.33 which was the highest ever
closing at that time and it went down till 8,160.40 on 9 Mar 2009.
Let us look at a few scenarios to see if it makes sense to invest in a falling market. To DISCOVER MUTUAL FUNDS
ensure there is no bias towards any mutual fund scheme they are named as Fund A, Fund
B and Fund C. However, these were leading large cap and multi cap diversified equity
All Mutual Top Tax
mutual fund schemes in Jan 2008 and the return calculation is done on actual NAVs. Funds Saver Funds
Table 1: One-time investment held up to 11 Mar 2019 (10 years from 9 Mar 2009)
Annual Return as on 11 Mar 2019 Fixed High Return
Deposits Funds
One-time Purchase BSE Sensex BSE Sensex Fund A Fund B Fund C

Date Closing CAGR* CAGR* CAGR* CAGR*
07-Jan-08 20,812.65 5.29% 8.83% 7.50% 9.78% Trending in Invest

07-Feb-08 17,526.93 6.98% 11.46% 9.82% 11.92%
07-Mar-08 15,975.52 7.94% 13.09% 11.22% 12.69% ELSS Investment Mutual funds FD Rates Hike
07-Apr-08 15,757.08 8.14% 13.82% 11.76% 13.19% How to calculate gratuity

07-May-08 17,339.31 7.25% 13.02% 10.81% 12.58%
Top 10 Gold ETFs
09-Jun-08 15,066.10 8.72% 14.79% 12.37% 13.82%
07-Jul-08 13,525.99 9.89% 16.66% 13.82% 15.10% EPF Passbook Download Tips to buy Gold Bars
Short-term Investment Options
08-Aug-08 15,167.82 8.80% 15.83% 12.91% 14.13%
08-Sep-08 14,944.97 9.02% 16.42% 13.14% 13.91%

Not to be Missed
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07-Oct-08 11,695.24
Enter your email
11.69% 20.24%
id 15.68%
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16.34%
CPI-IW
07-Nov-08 9,964.29 13.54% 22.60% 17.27% 18.35%
revive: Pravin Rao
08-Dec-08 9,162.62 14.59% 24.83% 18.37% 19.58%
07-Jan-09 9,586.88 14.21% 23.51% 18.09% 18.98%

per cent in FY21
09-Feb-09 9,583.89 14.35% 25.22% 18.68% 19.67%
09-Mar-09 8,160.40 16.32% 27.86% 20.51% 21.59%
11-Mar-19 37,054.10
* CAGR as on 11 Mar 2019
The above table shows Compounded Annual Growth Rate (CAGR) as on 11 Mar 2019 for
one-time investments made on dates mentioned in Column 1 in BSE Sensex, Fund A,
Fund B and Fund C.
And what if someone invested every month up to March 2009 instead of one-time during
the falling market. Let us look at how did those investments fared in Table 2
Table 2: Investment done every month up to 9 Mar 2009 on the dates in Column 1 of Table
1 market up to March 2009
BSE Sensex Fund A Fund B Fund C
CAGR as on 11-Mar-19 10.69% 18.61% 14.39% 15.62%
Note: Return calculated on investment of Rs.10,000 on all dates in column 1 of Table 1 up

to 9 Mar 2009.
The above tables show us the potential of investing in a falling market. The rate of return
kept improving whenever invested at lower Sensex levels and the best return was from
investments done around Mar 2009 which was the bottom of the market at that time.
While the bottom of the market is extremely difficult to catch, it may not be prudent to keep
waiting for it to invest. One of the best ways is to invest gradually and keep investing a
smaller amount (10-20% of investible surplus) as and when there is a reasonable fall in the
market. As seen from 2008 financial crisis experience, such an investment strategy will not
be wrong even if the market slides further down. In fact, it is better than not investing at all,
despite having investible surplus during these times. And once you invest, all you need is
to stay invested for the long term and have enough patience.
(The author is the co-founder of mywealthgrowth, a wealth management firm)

Click here for all the information and analysis you need for tax-saving this financial
year
Read more on Mutual Fund News CAGR Lockdown Market Fall Financial Crisis
Returns Mutual Funds BSE Sensex
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Most mutual funds underperformed IN THE SPOTLIGHT
4/8/2020 p Step-by-step guide to help you start investing in mutual funds online
benchmarks during 2014-19 period: Report
Home Wealth Tax Save Invest Insure Spend Borrow Earn Plan Real Estate Personal Finance News Podcast TomorrowMakers
you are Self Employed?
More
Even before the COVID-19 worries-led market rout dented the value of mutual fund
investments, there are chances that the fund was anyways underperforming from a long-
term perspective. All About Tax Saving
PTI | Last Updated: Apr 08, 2020, 09.24 AM IST
Getty Images Even before the COVID-19 worries-led
market rout dented the value of mutual fund impacts you
investments, there are chances that the fund
was anyways underperforming from a long-
term perspective. 2019-20 allowed till June 30,
2020
According to a study by S&P Indices Versus
Active (SPIVA), for the five years ending
How to save income tax via
December 2019, a majority of funds were medical expenditures under
underperforming. sections 80D, 80DD, 80DDB, 80U
Typically, asset management companies say one must invest in mutual funds for the
medium to long-term and see through near-term volatilities. tax just via these 4 avenues
However, massive correction of over 25 per cent in the benchmarks over the last two
months have made investors worried over the value of their portfolios. More From All about tax-saving ▜
The SPIVA study said 82.29 per cent of equity large cap funds, 78.38 per cent of the ELSS
(equity linked savings scheme) funds andÂ 40.91Â per cent of Mid/Small Cap equity funds Related Most Read Most Shared
underperformed their respective indices in the five years.
What are overnight mutual funds?
If one feels that the condition of the portfolio would be better from a longer time horizon, SBI Mutual Fund tops HDFC Mutual Fund as No 1
asset manager
Akash Jain, the associate director for global research at S&P Dow Jones Indices said
majority of the actively managed large-cap equity funds in India underperformed the S&P How to select a mutual fund?
BSE 100 with 64.80 per cent large-cap funds underperforming over the 10-year ending in
What are quant mutual funds?
December 2019.
Mutual funds for a new investor
Over the one-year period ending December 2019, the S&P BSE 100 surged 10.92 per Should I continue with these mutual funds?
cent, while 40 per cent of the Indian Equity Large-Cap funds underperformed the
benchmark, it said.
Among all the categories evaluated in the SPIVA India Scorecard, the Mid-/Small- category
fared the best for active funds with majority of them managing to beat the S&P BSE 400
MidSmallCap Index across different time horizons studied in the report.
All Mutual Top Tax
However, the 'survivorship rate' was low at 64.04 per cent, over the 10-year period for this Funds Saver Funds
category, it added.
Click here for all the information and analysis you need for tax-saving this financial Fixed High Return
year Deposits Funds
Read more on Mutual Fund News Returns Mutual Funds Small Cap Schemes
Benchmark Uderperformance Mid Cap Schemes
Trending in Invest
Also Read
What are overnight mutual funds? How to earn money by investing
SBI Mutual Fund tops HDFC Mutual Fund as No 1 asset manager How to earn money from share market
How to select a mutual fund?
What are quant mutual funds? WEALTH NEWSLETTER
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Mutual funds for a new investor Enter your email id How to calculate EPF Balance
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Finance News
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Advertorial
IN THE SPOTLIGHT
Revisiting complete financial planning amid Why Term Insurance is crucial if
COVID-19 Scares? Here are the instruments
you need
By Aishwarya Krishnan, ET Spotlight | Last Updated: Apr 07, 2020, 06.01 PM IST
ET Spotlight The recent drastic changes in the world
economy fuelled by the Covid-19 pandemic FY2019-20: Here's how it
need no introduction. If you have been impacts you
closely monitoring the global markets, you
would have noticed the volatility that they are
experiencing. The Indian stock market 2019-20 allowed till June 30,
(SENSEX) recently lost close to 3,900 points 2020
in a single day. And all these factors would
have made you look at your own investment How to save income tax via
pool again. As coronavirus continues to medical expenditures under
spread across the globe, there are various sections 80D, 80DD, 80DDB, 80U
unsettling questions that you probably have about your financial plan. And if you are one of
those investors who make active decisions to re-evaluate your choices and dives deeper You can save over Rs 1 lakh in
into the performance of the funds, there’s something you definitely need to double-check: tax just via these 4 avenues
Do you have the financial plans that can balance out your risks to give you safer and more
secure returns?
While the world markets are all showing bearish trends, coping with the stress of the
coronavirus spread, there is hope for change. A quick look at the current state of the
pandemic as well as the financial crisis management in China proves that recovery is Most Read Most Shared
actually possible. With the governing bodies and organizations across the country rolling
Trump changes course, backs India's position on
out plans to tackle the crisis, investors seem to slowly trust the market again. Making the hydroxychloroquine
silver lining thicker, here are three primary funds that can avert your risks and help you
Lockdown beyond April 14? Centre mulls extension
design a balanced financial portfolio. after state govts, experts raise red flags
Modi drops hints about possible extension of

ULIPs coronavirus lockdown
Investing in the stock market has its pros for sure, higher returns being the top-most one.
Radhakishan Damani, the only Indian tycoon to get
However, ULIPs offer entry into equity-linked investments while also providing Life richer under lockdown
Insurance. ULIPs offer a great option for wealth creation and their minimum 5-year lock-in
Coronavirus impact: Evidence mounts that the
period ensures that you have an insurance cover in your financial plans, preparing you for
global recession is already here
uncertainties. ULIPs give you the liberty of choosing from Equity or Debt related funds or a
More »
combination of both, depending on your preferences and risk-taking abilities.
Past market trends have proven that staying invested for long-term, even in the current
market selloff, can help you in earning good returns on equity funds. A quick look at Bajaj
Allianz Life’s key active equity ULIP funds and their rates of return over long periods stand DISCOVER MUTUAL FUNDS
proof to this fact.
WEALTH NEWSLETTER ET Spotlight

All Mutual Top Tax
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Fixed Podcast TomorrowMakers
High ReturnMore
Deposits Funds
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Trending in Invest
These key equity funds have managed to outperform the benchmark index and peer FD Interest Rate Gold Saving Schemes
category over most time periods, indicating a strong performance track record. Based on
these numbers, it is safe to say that opting for ULIPs as a long-run investment is a great
investment strategy.
Top 10 Gold ETFs
ET Spotlight
Not to be Missed
CPI-IW

revive: Pravin Rao

per cent in FY21
Some of the newer ULIP plans also return mortality charges in the plan, making it a more
competent option overall. Top players like Bajaj Allianz Life Insurance offer tailored ULIP
plans such as Bajaj Allianz Life Goal Assure, Bajaj Allianz Life Future Wealth Gain and
Bajaj Allianz Life LongLife Goal which come with several new-age features. You can easily
choose from an array of ULIPs and try to balance your risks responsibly.
Guaranteed Return Products

In a world full of uncertainties, it is always reassuring to have a few guarantees. That is
where Guaranteed Return Products step in. These non-linked non-participating
endowment plans offer a guaranteed return on your investment and can serve as a great
option for people who are trying to steer clear of any volatility. In fact, Guaranteed Return
Plans like Bajaj Allianz Life Guaranteed Income Goal are perfect if you are looking to
systematically invest year on year, and are looking to receive guaranteed benefits a few
years down the line.
The current and consistent rate cut by RBI to 4.4% in efforts to ease the financial stress
caused by Covid-19 has, in turn, affected several Fixed Deposit returns. In the given
circumstance, Guaranteed Return Plans like Bajaj Allianz Life Guaranteed Income Goal
provides an option to lock into guaranteed returns for longer periods like 10-12 years. And
since Life Insurance companies review returns based on the fluctuations in the G-Sec
WEALTH NEWSLETTER
rates, now is the time to invest in Guaranteed Return Products.
Term Plans
Term Plans
Home
Term plansWealth Tax Saveplans
are pure insurance Invest
thatInsure Spend Borrow
offer a security cover toEarn
yourPlan Real
family Estate
during Personal Finance News Podcast TomorrowMakers More
sudden uncertainties like death. We are all burdened with an array of monthly payouts, be
it home loan EMIs or your kids’ school fees. And term plans can help the insured’s families
tackle these financial battles, in case of unprecedented adversities. Its compulsory fall
back option ensures that your family’s lifestyle and life goals are not disturbed from a
financial standpoint. The Married Women's Property Act, 1874; also ensures the insurance
money is directly received by the wife, ensuring the financial security of your spouse.
Experts often advise that life cover amount should include financial protection for your
family, cover your liabilities like home loan and life goals like child education
ET Spotlight
While most people may argue that term insurance is not for the young, the premiums are
in fact lower if you purchase the policy when you are young. New-age term plans like Bajaj
Allianz Life Smart Protect Goal offer Life Cover of Rs 1 crore for 30 years with premiums
starting as low as Rs 13 per day for a 25-year-old healthy man which can be availed from
the company’s website. It has variants with benefits of Return of Premium, Child Education
Cover, Cover for spouse, etc. in the same policy which further add to the benefits of this
plan.
In addition to the individual benefits that each of these plans offer, they are also go-to ways
of saving taxes. Since these investments are linked to insurance, they all offer Tax Benefits
under section 80(C) of up to 1.5 lakhs and proceedings are tax-free under 10(10D),
provided your sum assured is 10 times of your premium in the old tax regime. Market
uncertainties are a part and parcel of investments; however, with the right options and the
perfect balance, you can make sure that you are prepared for them and for uncertainties in
life.
For more details on Bajaj Allianz Life products click here.

year
(This article is generated and published by ET Spotlight team. You can get in touch with
them on etspotlight@timesinternet.in)
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Ulip Plans Article
Financial Calculators
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Plan your Tax Calculate EMIs and more Plan your Savings
INCOME TAX INVOICE CAR LOAN PERSONAL SUKANYA EMPLOYEES'
CALCULATOR GENERATOR CALCULATOR LOAN SAMRIDDHI PROVIDENT
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Perfect strategy to safeguard your IN THE SPOTLIGHT

investments during Coronavirus pandemic you are Self Employed?
The world outside is nothing like we have experienced before. As we continue with
secluded lives from our homes and the coronavirus play havoc with world economies and
global markets, many investors are feeling anxious. All About Tax Saving
ET CONTRIBUTORS | Last Updated: Apr 07, 2020, 02.43 PM IST
By Ashish Modani
impacts you
The world outside is nothing like we have
experienced before. As we continue with
secluded lives from our homes and the 2019-20 allowed till June 30,
coronavirus play havoc with world 2020
economies and global markets, many
investors are feeling anxious. What should I
do as an investor – that is a question I hear a medical expenditures under
lot these days. sections 80D, 80DD, 80DDB, 80U
coronavirus
Let me try to respond to this question from

COVID-19 CASES
Confirmed Deaths another angle. Suppose you have invested in tax just via these 4 avenues
India World 5,274 149
a restaurant or gym. Or you are running a
hotel. Your business is totally shut. You don't
know how long it will take to reopen the establishment or how long will it take for the More From All about tax-saving ▜
business to be normal. What would you do?
Would you close your business or wait for the dust to settle? Most of us would wait, right? Related Most Read Most Shared
SBI Small Cap Fund reopened for lumpsum

Let us take another example. You have a piece of land or apartment as investment. With
investment. Should you invest?
all that is happening, the value of it would have fallen. So, have the value of gold, silver,
Tips for startup founders to secure investment in the
etc. What are we doing with those investments? Are we selling them?
current sluggish investment scenario
No, we are simply waiting for the chaos to settle. Right? Nomination - An important aspect of investment
Focus on investment and exports to revive

The point I am trying to make is if we assume that the world is going to end, there is no investment, economic cycles: Kiran Mazumdar
Shaw
significance of any investments. But if we assume that the world is going to be normal
again after a brief pause, then there is a reason to hang in there. Am I investing in right mutual funds?
IvyCap invests Rs 27 crore in Fingpay

Remember these three points:
Remember this too shall pass

Remain calm
Be a responsible citizen DISCOVER MUTUAL FUNDS
WEALTH NEWSLETTER
Enter your email id
If it is of any help, here are some crises that investors have faced in their journey
Subscribe Now All Mutual Top Tax
Funds Saver Funds
1984: Prime Minister of India was assassinated Better Than Low Cost
1987: The stock market fell the most. Fixed High Return
Deposits Funds
1991: India was literally bankrupt
1992: Harshad Mehta scam, the stock market tumbled more than 55%·
1997: Ketan Parikh scam shocked the market
1999: Kargil war
2000: Tech bubble burst, markets fallen by over 60%· Trending in Invest
2001: WTC attack happened in the USA
2008: global financial crisis hit the world hard; Markets went from 21,000 to 8,000 (62% How to earn money by investing
Loss) How to earn money from share market
2020: Covid-19 crisis ELSS Investment Mutual funds FD Rates Hike
As you can see, this is one of the major crises faced by Indian investors. Sure, a virus How to calculate gratuity
threat of this scale may be unknown. The world is united to fight the pandemic. It is only a How to calculate EPF Balance
matter of time before we regain our normal lives. Top 10 Investment Options PPF account
Top 10 Gold ETFs
Big rallies have followed big crises. In May 2009, the Sensex rallied over 18% in just one
day. Yes, your patience will get tested, confidence will shake many times, but you must
believe in one fact: humans have fought many battles earlier and have not only survived
them, but also thrived. Short-term Investment Options
(The writer is the founder of SLA Financial Solutions, a wealth management firm, based in Not to be Missed
Jaipir) Govt defers updation of base year for
CPI-IW
year
do not reflect the views of www.economictimes.com.) IT to face disruption now, but will
revive: Pravin Rao
Read more on Investment Mutual Fund News Markets Global Market Coronavirus
Covid 19 Mutual Funds

Also Read per cent in FY21
SBI Small Cap Fund reopened for lumpsum investment. Should you invest?
Tips for startup founders to secure investment in the current sluggish investment scenario
Nomination - An important aspect of investment
Focus on investment and exports to revive investment, economic cycles: Kiran Mazumdar Shaw
Am I investing in right mutual funds?
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Is it time for you to play it safe and bet on IN THE SPOTLIGHT

large cap mutual funds? you are Self Employed?
Actively-managed large cap schemes had lost out to their passively-managed counterparts
in the last two years because the market rally was confined to a few select index stocks.
By Shivani Bazaz, ET Online | Last Updated: Apr 08, 2020, 09.19 AM IST
iStock Will large cap mutual funds reclaim their lost
glory? Well, several mutual fund managers
and advisors believe so. They have been impacts you
recommending investing in large cap mutual
WEALTH NEWSLETTER
fund schemes in these uncertain times, and
Enter your
they email
also Subscribe Now
id that a likely broad-based
believe
rally (when it happens) will change the 2020
rally (when it happens) will change the 2020
fortunes of actively-managed large cap
schemes in the coming months. Actively-
managed large cap schemes had lost out to medical expenditures under
their passively-managed counterparts in the sections 80D, 80DD, 80DDB, 80U
last two years because the market rally was confined to a few select index stocks.

“Large caps have an edge above their small and mid cap peers at the moment. Some very tax just via these 4 avenues
good big businesses are available at a discount. That’s why large caps might be well
placed to participate in a rally, says Rupesh Patel, Fund manager, Tata Mutual Fund.
Valuations and notions of flight to safety apart, the sustainability of business is also
contributing to the interest in large cap stocks in the market. According to many investment
experts, it would be very difficult for businesses to come out unscathed after the Covid-19 Related Most Read Most Shared
crisis. They believe that many mid- and small-sized companies might be hit very hard
during the lockdown and subsequent slow march to normalcy. Very large companies might
pull through the tough phase relatively better, they reckon. SBI Mutual Fund tops HDFC Mutual Fund as No 1
asset manager
Inflows into large cap schemes and the relief rally in the large cap segment may offer How to select a mutual fund?
some clues. What are quant mutual funds?

The inflows into large cap schemes have increased in the last one month by Rs 450 crore.
In January, 2020, the large cap schemes saw an inflow of Rs 1,154 crore, compared to Rs Should I continue with these mutual funds?
1,606 crore in February. Rupesh Patel believes that largecaps are seeing inflows because
of the flight to safety but the inflows are not that high according to him.
“At this point, there are no extra-ordinary inflows into largecaps. I think many investors are
not moving their money. These are bleak times and inflows might be hit because everyone
wants liquidity in such times. If the money comes in, this is a great time to allocate to good
companies available at attractive rates,” says Rupesh Patel. All Mutual Top Tax
Funds Saver Funds
“We will have to see whether we will get large inflows into large cap schemes because
corporate FIIs, FPIs, HNIs, everyone will be focusing on maintaining balance sheets and Better Than Low Cost
Fixed High Return
trying to handle other issues in a lockdown,” says Jimmy Patel, MD & CEO, Quantum Deposits Funds
Mutual Fund.
After hitting a low of 25,981 on March 23, the S&P BSE Sensex has inched up to 28,845
as on today, up by around 11% in a fortnight. S&P mid cap and small cap indices moved
Trending in Invest
up by around 8% during the same period.
However, this is not to say that the large cap schemes marching towards the victory stand How to earn money by investing
already. The road to recovery is very long and we may see many hurdles along the path, How to earn money from share market
accroding to mutual fund advisors. ELSS Investment Mutual funds FD Rates Hike
However, will actively-manages schemes beat their passive cousins this time around?
Rupesh Patel thinks so.
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""In the last two years, we have seen a narrow rally where a couple of big large cap stocks Where to invest money for less than 1 year
moved the market and continued the rally. That’s why index funds had an edge above the How to open NPS Account
actively-managed large cap schemes,” says Rupesh Patel. “The valuations at the moment Senior Citizens Savings Schemes
are very attractive and thus there are expectations of a broad-based rally. In this scenario, EPF Passbook Download Tips to buy Gold Bars
active schemes have a chance to beat the benchmark. This is a time when a fund Short-term Investment Options
manager wants money to deploy in the market,” adds Patel.
Not to be Missed
However, some experts like Jimmy Patel nurses some doubts about this theory. “If there is
a narrow rally again, the whole purpose WEALTH
of all this correction will be lost. In the last one Govt defers updation of base year for
NEWSLETTER
CPI-IW
year nothing in the rally was driven by fundamentals but by emotions and sentiment. If the
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rally is driven by sentiments again and not based on fundamentals, then we might see
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passive
Home funds leadingTax
Wealth the charts
Save and diversification
Invest Insure losing
Spend purpose,”
Borrow Earn says
Plan Jimmy Patel.
Real Estate Personal
IT Finance News Podcast
to face disruption now, but TomorrowMakers
will More
revive: Pravin Rao
However, Patel believes that passive funds are yet to prove their worth in the long run, but
their cost efficiency has made them attractive. "At this point actively managed funds might
have an issue generating alpha but because of diversification, they might be able to
manage their downside better,” says Jimmy Patel. per cent in FY21
year
Read more on Large Cap Funds Mutual Fund News Lockdown Returns Risk
Mutual Funds Mid Cap Schemes
Also Read
SBI Mutual Fund tops HDFC Mutual Fund as No 1 asset manager
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How to withdraw from EPF if you need IN THE SPOTLIGHT

money due to coronavirus you are Self Employed?
The government has recently amended the EPF withdrawal rules which allow an EPF
member to withdraw money in case of emergency due to COVID-19.
By Preeti Motiani, ET Online | Last Updated: Apr 08, 2020, 09.15 AM IST
Getty Images The government on March 26,2020
announced that you can withdraw a certain FY2019-20: Here's how it
amount from your Employees' Provident impacts you
Fund (EPF) corpus, if you are facing
financial problems due to the coronavirus-
related lockdown. 2019-20 allowed till June 30,
2020
The government has notified the amendment
in rules regarding withdrawal of funds from
EPF accounts for COVID-19-related financial medical expenditures under
If your organisation is exempted, then you will have to exigencies. As per the amended rules, an sections 80D, 80DD, 80DDB, 80U
contact your employer for the withdrawal.
EPF member can withdraw an amount equal
to three months of basic and dearness You can save over Rs 1 lakh in
COVID-19 CASES Confirmed Deaths
allowance (DA) or 75 per cent of the credit tax just via these 4 avenues
India World 5,274 149
balance in the account, whichever is lower.
Read on to find out how to withdraw from your EPF corpus and how much you are allowed More From All about tax-saving ▜
to withdraw.
The EPF withdrawal math Related Most Read Most Shared

Let us say your last drawn basic salary plus dearness allowance (DA), if received any per
Bitcoin beats coronavirus blues
month is Rs 30,000 and the EPF balance in your account is Rs 3 lakh. Then the amount of
WEALTH
money you are eligible to withdraw will be lower of:NEWSLETTER Coronavirus patient dies in Gujarat
a) Three months of basic + DA, i.e., Rs 90,000

Enter (Rs
your30,000 X 3); or
email id Subscribe Now Coronavirus: Curfew relaxed in Punjab
b) 75 per cent of the EPF balance , i.e., Rs 2,25,000 (75 per cent of Rs 3 lakh)
) p , , , , ( p )
Coronavirus: Is there an alternative to lockdowns?
So, in this example, you are eligible to withdraw Rs 90,000 from your EPF account. The Coronavirus cases in India: State-wise break up of
confirmed coronavirus cases
amount withdrawn by you due to the outbreak of the pandemic is 'non-refundable'.
Therefore, you are not required to refund or replenish the withdrawn amount back into your Jobs in times of coronavirus
EPF account.
Puneet Gupta, Director, People Advisory Services, EY India says, "The notification
amending the Provident Fund Scheme allows such advance for any epidemic or pandemic
situation declared by appropriate Government and not just COVID-19. It will allow
employees to access provident fund in case of any such notified eventuality in a specific
state or location in future." All Mutual Top Tax
Funds Saver Funds
Eligibility to apply for withdrawal

To apply for claim online, an EPF account holder should satisfy three conditions: Better Than Low Cost
Fixed High Return
a) Universal Account Number (UAN) of the EPF member must be activated Deposits Funds
b) Aadhaar should be verified and linked with UAN
c) Bank account of the EPF member with IFSC Code should be seeded with UAN.
As per the FAQs issued by the Employees' Provident Fund Organisation (EPFO), no
Trending in Invest
certificate or documents are to be submitted by the member or his/her employer for
availing the benefit. However, an individual must keep the scanned copy of cheque ready Growth Stocks Credit Rating
as this will be required to be uploaded while applying for withdrawal from EPF account How to earn money by investing
online. How to earn money from share market

How to apply for withdrawal
Step 1: Visit the Member e-Sewa portal: https://unifiedportal-
mem.epfindia.gov.in/memberinterface/
Step 2: Login to your account by entering your UAN, password and captcha code.
Top 10 Gold ETFs
Step 3: Go to Online services and select claim (Form -31, 19,10C and 10D) Where to invest money for less than 1 year
Step 4: A new webpage will appear on your screen with all your details such as name, How to open NPS Account
date of birth, and last four digits of your Aadhaar number. The webpage will also show Senior Citizens Savings Schemes
your bank account details. Enter the last four digits of your bank account and click on EPF Passbook Download Tips to buy Gold Bars
verify. A pop-up will appear on your screen asking you to give a 'Certificate of undertaking'. Short-term Investment Options
Step 5: Once the last four digits of your bank account are verified, then click on 'Proceed
for online claim'.
Not to be Missed
Step 6: From the drop down menu, you will be required to select 'PF advance (Form 31)'.
Step 7: You will be required to select purpose of withdrawal as 'Outbreak of pandemic Govt defers updation of base year for
CPI-IW
(COVID-19)' from the drop down menu.
Step 8: Enter the amount required and upload the scanned copy of cheque and enter your
address.
Step 9: A one-time password (OTP) will be sent on your mobile number registered with revive: Pravin Rao
Aadhaar.
Step 10: Enter the OTP received by you via SMS.

Once the OTP is successfully submitted, the claim request will also be submitted. The per cent in FY21
money will be credited to your bank account only if the details match and your claim is
accepted by the EPFO.
Withdrawing via EPFO's Umang app

Step 1: Login to Umang App
Step 2: Select EPFO
Step 3: Select 'Employee Centric Services'
Step 4: Select the option 'Raise Claim'
Step 5: Enter your UAN details and click on 'Get OTP' to get one-time password to login in
your account. WEALTH NEWSLETTER
Step 6: Enter the OTP and click on login. Once you are successfully logged in to your
Enter your email id
account, enter last four digits of your bank account and select the member ID from the
Subscribe Now
d d Cli k 'P df l i '
drop down menu. Click on 'Proceed for claim'.
Step 7: You will be required to enter your address. Click on 'Next' once the correct details
are entered.
Step 8: Upload the cheque image. Once all the details and required information is entered,
then your claim will be filed.
How to check the status of the claim

To check the status of the claim filed, you can log in to your account on the Member e-
Sewa portal. You can check the status by clicking on 'Track Claim status' under the 'online
services' tab.
Things to remember
While applying for withdrawal, check whether your organisation is exempted. If your
organisation is exempted, then you will have to contact your employer for the withdrawal.
Exempted organisations are those having private trusts to manage the EPF of employees.
Also, yes you now have the option to withdrawn from your EPF corpus. However, since the
money contributed by you to your EPF account is a type of forced saving, withdrawing
from your EPF corpus should be your last resort. So, consider and exhaust all other
options before withdrawing from your EPF account. This is also because currently, interest
on EPF contributions is exempt from tax up to certain limits and consequently financial
planners consider it to be among the better debt investment options at present.
year
Read more on Epf Withdrawal Rules Epf Account Provident Fund Emergency Funds
Coronavirus EPF Epfo Pandemic
Also Read
Coronavirus patient dies in Gujarat
Coronavirus: Curfew relaxed in Punjab
Coronavirus cases in India: State-wise break up of confirmed coronavirus cases

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INCOME
More Calculators
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Your debt mutual fund portfolio in the age of IN THE SPOTLIGHT

coronavirus WEALTH NEWSLETTER
Enter your email id
The nation and large parts of the world are under lockdown, with the full extent of
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economic
Home
consequences
Wealth Tax
unknown. So, what steps
Save Invest Insure
should investors take to protect their Personal Finance News
Spend Borrow Earn Plan Real Estate Podcast TomorrowMakers More
debt fund portfolio from being ‘infected’ by the virus? All About Tax Saving
ET CONTRIBUTORS | Last Updated: Apr 07, 2020, 02.59 PM IST
ET Online By Balachandran R
impacts you
The nation and large parts of the world are
under lockdown, with the full extent of
economic consequences unknown. So, what
steps should investors take to protect their 2020
debt fund portfolio from being ‘infected’ by
the virus? We examine this question from the
perspective of three risks which investment medical expenditures under
in debt is exposed to: credit, liquidity and sections 80D, 80DD, 80DDB, 80U
duration risks.
COVID-19 CASES Confirmed Deaths
India World 5,274 149 You can save over Rs 1 lakh in
Credit risk tax just via these 4 avenues
Small businesses, which may not have as
much staying power and liquidity as large corporates, may face the brunt of the pandemic.
Banking and PSU debt funds and many Corporate Bond funds may escape unscathed More From All about tax-saving ▜
with their portfolios dominated by corporates/banks/PSU’s. But credit risk funds, some of
which appeared to have reasonable risk-reward ratio until two weeks back (before the
lockdown announced by the Prime Minister), face tremendous uncertainty as some of their Related Most Read Most Shared
investee companies at the lower end of the credit spectrum, face turmoil and looming
default. Fresh investments in credit risk funds can be paused, and cautious investors may
consider pruning existing exposure. Coronavirus patient dies in Gujarat

Many funds, apart from credit risk funds, have invested in AT1 bonds, which created panic
in the last few weeks, on account of a move to write them off by Yes Bank. Investors
should constantly scan debt fund portfolios for exposure to AT1 bonds of fragile private Coronavirus cases in India: State-wise break up of
confirmed coronavirus cases
sector banks, with risk averse investors avoiding funds invested in them. Weak PSU banks
have met AT1 bond obligations till now with some apparent help from the government, but Jobs in times of coronavirus
it is uncertain if this support will continue. A clear conclusion from the Yes Bank AT1 bond
debacle is that the risks of these bonds cannot be gauged by rating agencies and
institutional investors, and certainly not the retail investor.
Select Banking and PSU debt funds and certain Corporate Bond Funds are better
positioned for medium-term surplus deployment, in today’s uncertain scenario. Sticking to
mutual funds from pedigreed backers like large banks may be a safer option. All Mutual Top Tax
Funds Saver Funds
Investors may note that the supreme safety offered by deposits in SBI, does not extend to
the mutual fund promoted by it, as investors bear 100% of the credit risk, though SBI MF Better Than Low Cost
Fixed High Return
has acquitted itself reasonably well, when others floundered. Investors can skip fund Deposits Funds
houses, which have let them down badly on the credit risk front, time and again.
Fallen angels don’t rise again

Investors with asset allocation across equity and debt, would have faced a substantial
Trending in Invest
erosion in their equity portfolio of about 40% from peak to low this year. A significant
difference is that equity indices tend to recover over the long term. The BSE Sensex fell Growth Stocks Credit Rating
more than 50% from its peak, during the 2008-9 financial crisis. It subsequently not only How to earn money by investing
recovered its losses, but went on to double from its pre-financial crisis highs. This scenario How to earn money from share market
unfortunately does not work for credit losses in debt, which tend to become permanent. ELSS Investment Mutual funds FD Rates Hike
The credit markets characterize debt instruments which fall below investment grade - BBB
minus - as fallen angels. Fallen angels rarely rise back, in the debt world. Prospects of
recovery are remote in the likes of the erstwhile
WEALTH “AAA” rated ILFS, Yes Bank AT1 bonds
NEWSLETTER Top 10 Gold ETFs
and others.
Enter your email id Subscribe Now Where to invest money for less than 1 year
RBI has eased the pain of borrowers through moratorium/deferments and SEBI has
Home Wealth Tax Save Invest Insure Spend Borrow Earn Plan Real Estate PersonalSenior Citizens
Finance NewsSavings Schemes
Podcast TomorrowMakers More
provided some leeway to credit rating agencies on defaults ascribed to the lockdown. But EPF Passbook Download Tips to buy Gold Bars
financial markets may not be as forgiving to fallen angels unable to meet their obligations, Short-term Investment Options
with the prospect of NAV erosion in the debt funds holding their securities.
Duration risk
Not to be Missed
10-year benchmark bond yields collapsed when demonetization was announced, resulting Govt defers updation of base year for
CPI-IW
in a windfall for long duration investments, as the banking system liquidity went up, when
depositors rushed to dump demonetized currency in their banks. We have not seen such a
dramatic fall in yields till now, perhaps because of FPI selling, the expected deluge of
government bonds to fund the stimulus package, and absence of open market operations revive: Pravin Rao
by RBI yet.
Though today’s scenario does not portend duration risk, sticking to 2-3 year duration debt
funds may be a wise strategy. per cent in FY21
Liquidity risk
Despite RBI taking significant liquidity easing measures to counter the effects of the
pandemic, liquidity for mutual funds has been tight on account of factors like investor
redemption. During the 2008-9 financial crisis, debt funds saw an unprecedented net
outflow of more than Rs 50,000 crores, forcing RBI to step in to infuse liquidity into mutual
funds through banks.
The debt mutual fund industry has since grown into a Rs 14 lakh crore behemoth, with
systemic importance to the economy. SBI rescued Yes Bank, despite its terrible track
record in lending, and abysmal governance standards. It is therefore likely that a relatively
cleaner industry like debt mutual funds, will get the necessary liquidity support from RBI
when in need. Meanwhile, the cautious investor can stick to mutual funds backed by big
banks with good track record, while being cognizant of the market risks that every mutual
fund scheme carries.
With liquidity needs potentially backstopped by the central bank and duration risk in the
backburner for the moment, debt fund managers singed by IL&FS/DHFL/Vodafone/Yes
Bank etc would need to once again focus on credit risk which may hit them from
unexpected quarters, in the current uncertain age of the coronavirus. For example, if
pristine obligors in AAA rated securitisation deals, renege on their contracts, citing force
majeure, then it’s truly apocalyptic times. Investors in debt would now be joining equity
investors, in periods of stomach-churning volatility.
(The writer is a fixed income investor and erstwhile corporate banker)
year
Read more on Debt Mutual Funds Mutual Fund News Credit Risk Liquiity Rfisk
Coronavirus Covid 19 Mutual Funds Volatility
Also Read
Coronavirus patient dies in Gujarat

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Enter your email id
Coronavirus cases in India: State-wise break up of confirmed coronavirus cases
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NEXT STORY
Use MS Excel's confidence interval tool for IN THE SPOTLIGHT

better investment planning you are Self Employed?
For constructing confidence intervals of financial market variables, two statistical

distributions are often used, namely, the normal distribution (for large samples) and the t-
distribution (for small samples). All About Tax Saving
By Sameer Bhardwaj, ET Bureau | Last Updated: Apr 06, 2020, 06.30 AM IST
Getty Images An idea about the future movement or co-
movement of financial and economic impacts you
variables is critical for devising investment
strategies. Most of the statistical tools that
are applied for studying variables aim at a
single point output. For example, regression 2020
analysis between a stock return and index
return helps to determine how much return a
stock will generate for a given level of index medical expenditures under
return. A linear trend forecast will determine sections 80D, 80DD, 80DDB, 80U
The function predicts the range within which the the sales revenue of a company for a
probable value of a variable is expected to appear.
particular year.
tax just via these 4 avenues
Such single point outputs may not prove effective at times, specially when market
dynamics are changing. The coronavirus pandemic is threatening the prospects of world
economic growth. Under such conditions, a range of outputs will be more useful than a More From All about tax-saving ▜
single point output. For example, it is more rational to define that an asset is expected to
generate a return between 2- 5% next month (or any other period) instead of a single point
forecast like say 4%. Defining a range of probable values helps in creating different Related Most Read Most Shared
scenarios that result in better portfolio management.
KMC plans one-point nod for building plans
Statistically, such a range of outputs is termed as a confidence interval. It is calculated with Karnataka does math for contingency plan
respect to the unknown parameter (which can be average/mean, variance or proportions)
There is no ‘Plan B’ for 2020 Olympics
and defines the lower and upper bounds with a stated level of confidence, where such
5 simple steps to retirement planning
parameter is expected to lie. The confidence level is expressed in percentage and 90%,
95% and 99% limits are commonly used in the data analysis. A 90% confidence interval The flaw in Warren Buffett's estate plan
implies that there is a 90% probability that the true value of the unknown parameter will fall
Plans afoot to forecast crop output every month
within the lower and upper limits of the interval. Such unknown parameter can be Sensex
return or gold/silver prices, oil prices, USD-INR values, bond prices, etc.
For constructing confidence intervals of financial market variables, two statistical

distributions are often used, namely, the normal distribution and the t-distribution. The DISCOVER MUTUAL FUNDS
normal distribution is well known and heavily used in modeling stock markets. On the other
hand, the t-distribution is used when the population standard deviation is unknown. If the
All Mutual Top Tax
last 12 months’ returns of BSE Sensex data are used, the standard deviation may not truly Funds Saver Funds
represent the actual risk. For the calculation of actual risk, the data should include different
market phases. The past one-year data may not capture all market cycles. Therefore, for Better Than Low Cost
small samples the tdistribution is appropriate. However, as the sample size goes up, the Fixed High Return
Deposits Funds
tdistribution converges to the normal distribution.
If one is interested in finding the range of an average value of a financial asset (like the
average gold price or average USD-INR rate), it implies calculation of the confidence
interval of a mean. For such computations, a term called the margin of error needs to be Trending in Invest
WEALTH NEWSLETTER
added and subtracted from the mean. The margin of error takes into account the above
Enter error.
mentioned statistical distributions and standard your email id Subscribe Now Growth Stocks Credit Rating
Such computations are tedious but the same can be easily managed with MS Excel’s ELSS Investment Mutual funds FD Rates Hike
inbuilt functions: CONFIDENCE.NORM and CONFIDENCE.T. The former is used for FD Interest Rate Gold Saving Schemes
normal distribution or large sample data, whereas the latter is used for small samples or How to calculate gratuity
with data with unknown standard deviation. Both functions require only three inputs: the How to calculate EPF Balance
first input ‘alpha’ is the confidence level or the probability that takes a value between zero Top 10 Investment Options PPF account
Top 10 Gold ETFs
and 1. However, the extreme values are not allowed and if one attempts to use any of the
two values it will lead to an error. The second input is the standard deviation, which can be
managed using STDEV.S function. The final input is sample size or the number of
observations used in the calculation and can be managed using ‘count’ function.
CONFIDENCE.NORM function is demonstrated in Screenshot 1. Last 10 years’ BSE
Sensex annual return data is used. The average returns and standard deviations are
worked out. Inputting the required values in the function at a 95% confidence level, the Not to be Missed
margin of error is calculated as 0.416. Adding and subtracting the same from the average Govt defers updation of base year for
returns gives the upper and lower limits of 5.82% and 4.98%. This implies that there is a CPI-IW
95% certainty that next year’s Sensex return will lie between 4.9% and 5.8%. One can
observe how the interval changes by increasing or decreasing the sample size or changing
the confidence percentages. IT to face disruption now, but will
revive: Pravin Rao
For example, changing the confidence level to 90% (keeping other things constant) will
change the interval to 4.56% to 6.2%. ‘CONFIDENCE.T’ is demonstrated in Screenshot 2
using a small sample of gold average prices for the past 6 months. The 90% confidence Goldman pegs India's growth at 1.6
per cent in FY21
interval of the gold prices for the next month is Rs 39,520 to Rs 39,707, which is obtained
by adding and subtracting the margin of error from the average price. The confidence
interval states that there is a 90% probability that the average price of gold will be between
the stated lower and upper limit next month.
Excel’s computation requires three inputs

The first visual shows normal distribution, while the second deals with t-distribution.
WEALTH NEWSLETTER
The confidence intervals discussed above provide a rudimentary introduction to statistical

intervals. In conjunction with the confidence intervals, experts also create prediction
intervals that provide a range of the predicted value for the given level of an independent
variable. For example, if one is studying the impact on household expenditures due to
inflation, a prediction interval will provide lower and upper limits of the future households’
expenditure for a given level of inflation rate. The prediction interval is beyond the scope of
the article.
year
Read more on Planning MS Excel Investment Bond Return
Also Read
KMC plans one-point nod for building plans
Karnataka does math for contingency plan
There is no ‘Plan B’ for 2020 Olympics
5 simple steps to retirement planning
The flaw in Warren Buffett's estate plan
NEXT STORY
Step-by-step guide to help you start IN THE SPOTLIGHT

investing in mutual funds online you are Self Employed?
The first step and prerequisite to start investing in mutual funds is to become KYC (know
your customer) compliant. Only after this can you invest in mutual funds, as mandated by
the Securities and Exchange Board of India (Sebi). All About Tax Saving
By Riju Mehta, ET Bureau | Last Updated: Apr 06, 2020, 09.30 AM IST
Getty Images The falling markets may be a good cue to
start putting your money in mutual funds. ET impacts you
Wealth provides a step-by-step guide to
starting the online process.
HOW TO GET KYC DONE... 2020
The first step and prerequisite to start
investing in mutual funds is to become KYC
(know your customer) compliant. Only after medical expenditures under
this can you invest in mutual funds, as sections 80D, 80DD, 80DDB, 80U
You can download the KYC form from any intermediary mandated by the Securities and Exchange
website.
Board of India (Sebi).
tax just via these 4 avenues
If you are a new investor, you will be required to carry out KYC or know your
customer/client compliance through a Sebi-registered intermediary— mutual fund houses,
distributors or online platforms—via the KRAs (KYC registration agencies). This is a one- More From All about tax-saving ▜
time process mandated by Sebi to prevent fraud. It involves verifying your identity as a
mutual fund investor.
OFFLINE Download the KYC form from any intermediary website.
Fill up the form
Attach self-attested hard copies of WEALTH
identity and address proofs (see Documents).
NEWSLETTER SBI Mutual Fund tops HDFC Mutual Fund as No 1
Paste a passport-size photo on the form and sign across
Enter your email id it. Subscribe Now asset manager
Visit the branch of a fund house, RTA or investor service centre for an in-person How to select a mutual fund?
verification.
Show the original documents for verification.
Should I continue with these mutual funds?

ONLINE OR E-KYC
This is a paperless version of KYC and can be done in three ways. You can either
complete the entire process online, use the one-time password-based system via your
phone, or the biometric system.
In the first case, you go online to any fund house website or KRA site and enter the
personal details to register.
All Mutual Top Tax
Upload/submit scanned images of documents required. Funds Saver Funds
Complete in-person verification through a video call.

Digitally sign the document. Better Than Low Cost
Fixed High Return
Deposits Funds
In the second case, you can get only PAN/Aadhaarbased KYC through a Sebi-registered
mutual fund distributor or adviser (if they have registered with a KYC user agency (KUA)
as a sub-KUA), as per a provision introduced by Sebi on 5 November 2019.
You will get a one-time password (OTP) on your phone. Enter it and you will be verified.
In the biometric option, the investor will be able to complete the KYC on a registered or Trending in Invest
whitelisted device operated by the intermediary using biometric details. Growth Stocks Credit Rating
Documents and information you need to keep ready How to earn money from share market
You will need to keep handy a set of documents for KYC verification and while investing. ELSS Investment Mutual funds FD Rates Hike
Identity proof How to calculate gratuity

PAN card
Any one document from passport, Aadhaar card, driving license, voter ID card.
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Latest photograph.
Address proof (Any one)
Aadhaar
Passport
Driving license
Ration card Not to be Missed
Voters identity card Govt defers updation of base year for
Utility bills (gas, telephone, electricity) CPI-IW
Bank account statement or passbook

revive: Pravin Rao
While investing
Bank account number & type
IFSC code
E-mail and phone number Goldman pegs India's growth at 1.6
per cent in FY21
WHERE TO START INVESTING...

Mutual funds houses (online, offline, mobile apps) Rishi Sunak next in line as UK PM
You can physically visit an AMC office or the fund house website and start investing if your deputy after Raab
KYC is done. Some AMCs also have apps to invest in funds. The advantage of investing
directly through the fund house is that you don’t have to pay the agent/broker charges.
However, you will be able to invest only in the schemes of that particular fund house. Govt extends term of Banks Board
Bureau members
Registrar and Transfer Agents (RTAs)
You can go to any of the Sebi-registeredWEALTH
RTAs andNEWSLETTER
start investing by completing the
application form and submitting a cheque or bank draft at the branch office. CAMS and
Enter your email id
Karvy are among the more well-known RTAs. The benefit of investing via RTAs is that you
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urge prudence
can pick and
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choose Tax
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schemes across fund houses,
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instead of that from a single fund
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house.
Roundup: UP goes on the offensive,

Investor Service Centres (ISC) seals off hotspots
These are basically the physical branch offices of mutual funds or RTAs in various parts of
the country. You can conduct all transactions, be it investment or redemption, at these
centres.
ICICI & HDFC lead the pack in
digitization: Report
FINTECH investment platforms
Online mutual fund aggregators or third-party platforms like Groww, Scripbox and
FundsIndia are like RTAs and offer the facility of investing and conducting all transactions
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through their sites. offered by J.P. Morgan to its
employees
DEMAT account
You can invest in funds directly through the demat account, which holds all securities—
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stocks, mutual funds, bonds, exchange-traded funds, government securities—at one special services
place. You will, however, have to pay annual charges to the broker, in addition to the
expense ratio.
Sanders drops 2020 bid, leaving Biden

MF Utilities as likely nominee
One can also invest either online or offl ine through MF Utilities (MFU), a shared service
platform promoted by the mutual fund industry and owned by several AMCs for fund
transactions. For more information, visit www.mfuindia.com.
Lockdown: HDFC deploys Mobile
ATMs across India
Stock exchanges
Since February this year, Sebi has allowed investors to invest in mutual funds directly
through recognised stock exchanges, allowing them to bypass brokers or intermediaries.
Cash payment co to offer cash at
To avail of this facility, you will need to complete one-time online registration with NSE or
doorstep to Sr citizens
BSE.
HOW TO INVEST ONLINE...

Govt to soon issue guidelines for real
While the online format for investing in mutual funds varies slightly among AMCs and
estate sector
intermediary sites, here are the common steps you are likely to come across on a mutual
fund website.
Boris Johnson stable, responding to

Step 1: Register on fund site
docs in ICU
Open the fund website. First-time investors will first have to register by providing their
name, date of birth, mobile number, e-mail and PAN. The site will ask whether you are
KYC compliant or not. If you are not, it will provide the option to get it done. If you are, you
Bennett University to hold online
just need to put in your PAN to verify compliance before starting investment.
conference on Covid19
FinMin allows states to borrow Rs 3.20

L cr from market
Low public spend on healthcare may

pose challenges
Relief to Indian students stuck in US,

Canada, UK soon
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Home
Step Wealth
2: Give Tax details
personal Save Invest Insure Spend Borrow Earn Plan Real Estate Personal Finance News Podcast TomorrowMakers More
In the next step, you will be asked to furnish your personal details like nationality, Eco Census data collection period
extended by 6 mths
profession, income, and whether you pay tax in any other country. After this you need to
tick the boxes for terms and conditions before moving to the next step. You can also add
an applicant in this step, if you want.
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compensation to states
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contract 8-10%
HC dismisses tax dept's plea against

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up capacity
Fuel demand seen falling 40 pc in

April: Report
Step 3: Fill nominee details

Here you will be asked to fill in the nominee details, including name, date of birth and the
percentage of allocation you want for the nominee. If you don’t want to appoint a nominee, Brazil Prez quotes Ramayana to
move to the next step. request for key drug
RIL's net debt to fall despite struggling

energy
Infra cos likely missed FY20 target due

to Covid-19
0 to 12,000/day: How India scaled up

PPE production
US Senator calls for probe into WHO

over COVID-19
Step 4: Provide bank details ASSOCHAM recommends $300-bn

In this step you will need to fill in your bank details, which will include providing the IFSC stimulus package
Code, your account number and type of account. After this you check a box confirming that
the investment and redemption will take place through the account you have filled in and
then proceed to the next step. Voda Idea offer recharge via SMS,
missed call
Covid cases in India breach 5,000

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sales to boost More
volumes
Arogya, drone data to play part in

lockdown strategy
'Phone booths' are changing Covid

tests in India
Step 5: Investment details

5-star hotels open food-delivery to
Type of investment: Select from onetime lump sum or periodic systematic investment plans garner revenue
(SIPs). Some sites offer ELSS and SIPs with insurance.
Scheme and plan: Next, pick if you are investing directly or through an agent/distributor.
Lockdown: For many, ePay's the way
Since you are doing it yourself, click ‘directly’.
to buy essentials
For the type of ‘scheme’ you want, pick from Equity, Debt, Hybrid and others. If you click
on ‘Equity’, you will have to choose between ‘Growth’ and ‘Dividend’ options. The former
option is better.
Twitter's Jack Dorsey pledges $1 bn
for COVID-19 relief
SIP period & amount: In SIP option, decide how much amount you can invest, with what
frequency, and on which date of the month you want to do so. You can also decide the
duration or the number of instalments. For the latter, you also have the option of continuing
US plans to ramp up Indo-Pacific
indefinitely.
defence
Step 6: Make the payment

This is the last stage of investment process and you can make the payment online or
offline. If you are making the payment online, do so and check the box for the final
confirmation. To register for automatic bill payment with your bank through Net banking,
you will receive a SIP Registration Reference Number, which you will need to provide to
the bank.
Screenshots have been taken from an actual fund house website.

year
Read more on Markets Money KYC Investment Mutual Funds
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SBI Mutual Fund tops HDFC Mutual Fund as No 1 asset manager

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Small savings schemes' interest rates IN THE SPOTLIGHT

slashed. Should you continue with your you are Self Employed?
investments?
Investors in PPF and Sukanya Samriddhi Yojana will see the impact immediately as lower
rates will be applicable on accumulated balance. However, investments made in NSC,
SCSS and others prior to the announcement would be shielded from the cut.
By Sanket Dhanorkar, ET Bureau | Last Updated: Apr 06, 2020, 06.30 AM IST FY2019-20: Here's how it
impacts you
Getty Images Interest rates on popular small savings
schemes have been cut drastically for the
April-June 2020 quarter. Investors utilising Tax-saving investments for FY
these avenues predominantly should be 2019-20 allowed till June 30,
2020
prepared to earn a lot less than what they
are used to.
Investors in PPF and Sukanya Samriddhi medical expenditures under
sections 80D, 80DD, 80DDB, 80U
Yojana will see the impact immediately with
the lower rates also applicable on
While this sharp cut may seem unfair to most, it is
accumulated balance in their account. PPF You can save over Rs 1 lakh in
pertinent to note that it has been expected for some tax just via these 4 avenues
investors will fetch 7.1% compared to 7.9%
time now.
earlier while those putting money in Sukanya
Yojana will earn 7.6% compared to 8.4% earlier.
However, investments made in NSC, SCSS, Kisan Vikas Patra and others prior to the
announcement would be shielded from the cut. Only investments starting 1 April 2020,
would fetch lower rates. Those retiring now will particularly feel the pinch of the cut with
interest rate for Senior Citizens’ Savings Scheme falling from 8.6% to 7.4%. The NSC too CITU condemns cut in small savings schemes
will see rates slide from 7.9% to 6.8%. interest rates
PPF to fetch 7.1%, NSC 6.8% as govt slashes small

Small savings schemes see sharp cut for the quarter savings schemes interest rates
Govt may cut interest rate on PPF, NSC, other small

savings schemes next quarter
WEALTH NEWSLETTER
Enter your email id Subscribe Now RBI urges government to cut rates on small savings
schemes
Home Wealth Tax Save Invest Insure Spend Borrow Earn Plan Real Estate PersonalHow to invest
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All Mutual Top Tax

Funds Saver Funds

Fixed High Return
Deposits Funds
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* Real rate of return based on average 4.4% CPI over past one year How to earn money by investing
While this sharp cut may seem unfair to most, it is pertinent to note that it has been
expected for some time now. Since 2015, small savings schemes have been moved to a
market-linked regime, where interest rates are supposed to be revised quarterly in line with
corresponding change in yields on the government securities. However, in recent years, Top 10 Investment Options PPF account
the government had not responded with rate cuts in proportion to the decline in yields on Top 10 Gold ETFs
relevant government securities. This time, however, a sharp downward revision of interest Where to invest money for less than 1 year
rates by the central bank has prompted the government into finally biting the bullet. How to open NPS Account
However, experts reckon that investors should continue investing in these instruments. EPF Passbook Download Tips to buy Gold Bars
With inflation also remaining benign, the real rate of return (adjusted for inflation) from Short-term Investment Options
these instruments continues to remain high.

year
Read more on Sukanya Samriddhi Yojana SCSS Small Savings Scheme PPF
Kisan Vikas Patra Investors
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CITU condemns cut in small savings schemes interest rates
PPF to fetch 7.1%, NSC 6.8% as govt slashes small savings schemes interest rates
Govt may cut interest rate on PPF, NSC, other small savings schemes next quarter
RBI urges government to cut rates on small savings schemes
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4/8/2020 Step-by-step guide to help you start investing in mutual funds online

LATEST NEWS Coronavirus: UP cabinet slashes salary of ministers, legislators by 30

MF portfolio doctor: Mahajan should take IN THE SPOTLIGHT

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Can you always make money by investing in IN THE SPOTLIGHT

One-time Purchase BSE Sensex BSE Sensex Fund A Fund B Fund C

07-Jan-08 20,812.65 5.29% 8.83% 7.50% 9.78% Trending in Invest

07-Apr-08 15,757.08 8.14% 13.82% 11.76% 13.19% How to calculate gratuity

08-Sep-08 14,944.97 9.02% 16.42% 13.14% 13.91%

07-Jan-09 9,586.88 14.21% 23.51% 18.09% 18.98%

09-Mar-09 8,160.40 16.32% 27.86% 20.51% 21.59%

* CAGR as on 11 Mar 2019

CAGR as on 11-Mar-19 10.69% 18.61% 14.39% 15.62%

Note: Return calculated on investment of Rs.10,000 on all dates in column 1 of Table 1 up

(The author is the co-founder of mywealthgrowth, a wealth management firm)

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