Types of Equity Mutual Fund

1. Large Cap Equity Mutual Funds

In this investment of Minimum 80% of total assets is made in Equity of large Cap Companies i.e. (Top 100 Companies). This type of funds are more stable as compare to mid and multi cap mutual fund. Suitable for investor who has horizon of 3 years this fund normally give return of 15-18 Percent in long term as per past records

2. Mid-Cap Mutual Fund

These type of Fund invest around 65% of their total assets is made in equity of Mid-Cap Company (i.e. Ranking from101 to 251). Return in these type of fund is higher as compared to Large Cap Fund with higher volatility then large cap. Suitable for investor who has horizon of 5 years this fund normally give return of 18-20 Percent in long term as per past records

3. Small Cap Mutual Fund

Invest Around 65% of Total assets is made in equity of Small Cap Company (i.e. less than 250 ranking). Most of the companies in India fall under this category and investment in these give higher return than large and Mid-Cap Fund Suitable for investor who has horizon of more than 5 years this funds are more volatile this fund normally give return of 24-30 Percent in long term as per past records

4. Multi Cap Mutual Fund

In this type of mutual fund around 65% of investment are made in large, mid and Small Cap Companies in varied proportion. And Fund manager keep changing the proportional to meet the investment objective. If an investor want to invest in only one fund to take the benefits of above three funds (large, mid and small) he can choose that option Suitable for investor who has horizon of more than 3 years. This fund normally give return of 18-22 Percent in long term as per past records

5. Large and Mid-cap Fund

In this Fund investment of around 35% of total asset is made in mid cap companies and 35% in large cap companies. This offer a good return with less volatility

6. Equity Linked Saving Scheme

ELSS is a Mutual Fund that invest in equity and equity related investment to generate high return. It is the only fund that is eligible for deduction under 80C of income tax act for amount upto 1.5 Lakh.

7. Balance Advantage mutual fund

In this type of fund aim was to minimize the investor risk by investing proportionately in equity and debt. And changing proportion to maintain return this type of funds are more stable Suitable for investor who has horizon of 1-2 years. This fund normally give return of 10-15 Percent in long term as per past records

8. Dividend Yield Fund

Investing of these type of fund is predominately in dividend yield stocks I.e. Companies having better dividend pay-out. Suitable for investor who want regular income.

9. Focused Fund

Portfolio of these type of fund contain investment in not more than 30 companies. And these scheme focused on particular segment i.e. large, mid or small.

10. Sectorial or Thematic Fund

Investor who want to invest in a particular sector can invest in these type of fund. These type of fund invest 80% in particular selected sector companies equity or equity related instruments. Suitable for investor who want to time the market and earned higher return. This is suitable for 3-4 year after that investor need to switch the funds. 

Various Options in Mutual Fund

• Systematic Withdrawal Plan (SWP)

When an investor want regular income from his mutual fund can opt for SWP scheme. Under SWP scheme a facility to investor is given to withdraw a fix amount regularly. Amount and frequency can be chosen by the investor. An option of withdrawal of only gain keeping capital is also available. So on set date the Fund will sold the particular unit and transfer the amount to the investor.

• Systematic Investment Plan ( SIP)

When Investor does not want to invest lump sum amount in the Mutual fund then he can opt for SIP investment Plan. Under this plan investor make a regular payment in mutual fund in which Amount and period is chosen by him. So a small amount is invested regularly which will give benefit in long run.

• Systematic transfer Plan (STP)

If the investor has lump sum funds available but does not want to invest in lump sum he can choose that option he can invest in liquid fund and switch that money in equity fund But the Fund Chosen should be of same Asset management company (AMC). So it give advantage to grow consistently and cater the market fluctuations.

 Procedure for NRI to invest in mutual fund in India

As to gain Benefit of growth from the mutual funds an NRI has to follow steps to invest in mutual fund in India

• Opening of an NRI account in India as NRI cannot invest through regular saving account. It can be NRE or NRO account as choice of Investor.
• Then KYC to done which follows

1. Filling of KYC form
2. Submission of Documents

• Address proof ( Oversea and Domestic)
• A copy of passport
• Photograph
• Copy of Pan Card
• Bank Statement
• Attestation of KYC documents from authorised person.
• In- person verification weather Online or Offline will be done.

Way of Investing

• Self or Direct investment – In this NRI can himself invest through NRI account.
• Power of attorney – Any person can be authorised by the NRI by giving him power of attorney. So all transaction will be made by him on behalf of NRI.

Redemption of fund by NRI

Withdrawal of fund for an NRI is same as citizen. They just to opt for withdrawal in mutual fund portal and with the span of time the money will be credited to their Bank account weather NRE or NRO after deducting the applicable taxes, if any.

As per taxation point of view the gains are taxable on the basis of holding period. Short term capital gain (Sold within in one year) at 15% and Long term capital gain (Sold after one year) at 10% above 100000 without indexation benefit.

As from Double taxation rule, If India has DTTA (Double tax Avoidance Agreement) with NRI country, And gain is taxed in india then NRI don not need to pay tax again on same income in country residing.

Top Mutual Fund Managers in India 

This are the list of Top fund manager who has good track record, investor can choose any of the below fund as per their objective.

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The post Understanding Mutual Funds and How a NRI can invest in Mutual Funds appeared first on Tax Baniya.

An interview of Shri Babulalji Singhvi who will inspire us how to do the business in a difficult time.

Introduction

Shri Babulalji Singhvi’s native place is Asada. He is the founder member of the Friends and Friends group. He has started the business from scratch and now handling various businesses like edible salt, commercial salt, Castrol oil, and dragon fruit.  You can watch the full profile of the business on the below link https://www.friendsgroup.co.in/.

How to Start the Import/Export Business

From the Registration point of view –

• Take Import-Export code
• Take the GST Certificate

From Government point of View –

We have to check the regular updates of the government of India. We can do every item import and export that the government of India is permitting. Also, there are lots of incentives in the export business.

From Practical Point of view-

1. Knowledge – Knowledge of the Product is a must for doing the export business.
2. Marketing of the Product – The second step is to find the market of the business. Once you get the market of the product you can start the production
3. Manufacturing – It is always advisable to do the manufacturing rather than trading. As it gives confidence to the exporter
4. Utilisation of Funds – There is no harm in taking the bank loan or loan from any party but never misutilse the fund in buying a house or expensive car. Always utilize 100 % fund in the business. Also, it is advisable to keep some buffer fund to get the benefits from any business opportunity if comes.
5. Always think long term – Try to do the contract with the debtors and supplier for the long term. We are doing a contract of 30 years with the client.
6. Timely delivery – Exporter always wants the timely delivery, If for any purpose you are not able to deliver than inform in advance so that they can plan for other option and it will increase the confidence of exporter on you.
7. Quality – You have to be expert knowledge of the product and maintain the superior quality from the peers. If there is fault in quality there will be difficulty in getting the payments

Is COVID is an Opportunity for the India?

Yes, may be this type of pandemic can be opportunity for the India. As many countries are looking for the alternative to China.

I will suggest the government to take the following step-

• Single window system of the business
• Ease of finance for the MSME
• Increase duty on foreign products
• Hassle-free availability of land
• Ease of doing business by reducing the paperwork and taxation

In past also I have seen after an earthquake in Bhuj lots of company have come to Bhuj and it has developed in a faster pace.

How you are able to maintain the Joint family business for so many years?

We have done the distribution of the work. Each person is handling his work. Also, we are doing meeting with each other on a regular interval so if any problem comes, we jointly handle the situation.

Tax Baniya – Business & Investment Advisors

Start New Business, Company Registration, LLP Registration, Partnership Firm, Accounting, Tax Compliance, GST, Income Tax, Mutual Funds
Mumbai, Thane, New Mumbai, Palghar, Surat, Rajasthan, Kolkata

The post INTERVIEW WITH SHRI BABULAL JI SINGHVI appeared first on Tax Baniya.

Today we will discuss important topics for all our chartered accountant fertility to how to conduct the Online Statutory Audit of banks in Lockdown period. In this, we will discuss what are the Documents required for the statutory bank audit also how to do the statutory bank audit planning and finalization.

 Attend the Online seminar

Try to attend the online seminar organized by the ICAI and various banks to recall all the provisions and the things. Also, engage your staff in the seminar

Documents required for the statutory bank audit

1. Last year LFAR Report
2. Auditor Login ID and password
3. Dumps of CC/OD Account For Ledger Scrutiny
4. Complete details of the Loan more than 2 crore
5. Dumps Of expenses Accounts For Checking provisioning
6. Excess Over Limit Report
7. Customer-wise Interest paid and TDS Report
8. Details of Overdue term deposit
9. Suspense Report
10. GST -Input Tax Credit report
11. Fixed Assets Addition Report
12. Daily Cash balance /cash Retention report
13. List of Customer-wise Loan Sanction and there Outstanding Loan Balance as on 31st March 2020
14. List of Customer-wise Loan – Sanction Amount Vs O/s as on 31.3.20
15. NPA Provisioning Report
16. Current year Format of LFAR, Tax Audit etc.
17. Concurrent Audit Report if applicable
18. RBI Report if any conducted
19. Insurance expiry report from the banks
20. Stock Audit Report

Statutory bank Audit Planning

After getting the documents An Auditor can plan the things at home.

1. Critically read all the reports of the banks like last year LFAR, Concurrent, RBI etc.
2. Critically examine the Loan accounts and give the list to the banks’ file name that you will be needed for the purpose of audit. You can click on below link to https://taxbaniya.com/guidance-note-on-bank-audit-of-od-and-cc-accounts/
3. You can check the NPA Provisioning report whether all assets have been correctly classified and provision has been made accurate. Critically examine the OD/CC provisioning if any drawing power is NIL than make 100% provision in that accounts.

For complete guidance click on the below link – http://taxbaniya.com/statutory-audit-of-bank-advances-and-npa/

4. The auditor can ask for the customer ledger in that he can check

• If any account is NPA whether interest is charged or not.
• In Term and home loan whether installment is paid regularly. If not paid more than 90 days to account become NPA
• In Working capital whether the transaction is happening in an account or not.

Finalization of Statutory bank Audit

1. If your branch is located in the containment area than request the manager to give access to the branch near your home.
2. Avoid physical verification of cash and put a note in LFAR- Due to COVID we are unable to verify the cash
3. Avoid physical verification of the stationary and put a note in LFAR- Due to COVID we are unable to verify the stamp and stationery
4. Digitally signed the Report and Email to the bank

The post Online Statutory Audit of Banks in Lockdown appeared first on Tax Baniya.

• Women may encounter career gaps during various stages of life, Saving in mutual funds can help at those times
• Women Goals change at different stages of their life
• Being economically independent makes you feel confident and being financially independent helps, you fulfill your Goals, even after you retire. For this
• Women have inherent qualities of discipline and focus while making investments.

The post Every woman should invest? appeared first on Tax Baniya.

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