#Investment

Mutual Funds (MF)

• Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities
• Governed by Indian Trust Act 1882
• MFs are registered as Trust but not as Company

Types of Mutual Funds

• Mutual funds are of different types based on:
  • Fund Schemes
  • Managements of Funds
  • Assets invested in
  • Investment Objective
  • Mode of investment
  • ELSS
  • International funds

Capitan Gain

Short term capital gain (STCG)

• If you buy & hold the shares for less than 1 year, and earn a profit after selling the share, it is known as STCG
• Rate of Tax is 15% on profit for STCG

1.1 Budgeting

What is Budgeting?

• Budgeting is simply balancing your expenses with your income.
• It’s a plan to spend your money 💰

2.1 Inflation

• Inflation is the decline of purchasing power of a given currency over time
• Means purchasing power of same amount fo money 💰 decreases over time

What is Inflation? How does the printing of money 💰 affect Inflation?

• With high liquidity in the market the spending power of person increases
• That leads to the high demand for goods but supply remains the same.
• With high demand price of goods increases

3.1 Taxation Planning

• We should try to reduce the effective taxation amount by making proper Tax planning
• Try to avoid tax but don't evade tax
• Taxable Income = Salary - Exemption - Deduction