Monfinity

From 1st April,2021 dividend options/plans of Mutual Funds will be renamed and known as "Income distribution cm capital withdrawal option".

Govt. has taken back its decision to decrease rates on small saving scheme late night. FM has also tweeted today about the same. Hence, old rates will be followed.

Last date to link Aadhaar with PAN no. has been extended from 31st March 2021 to 30th June, 2021.

*Important Update for mutual funds*

Starting from 1st July, *Stamp Duty* is getting applicable at the Instance of Investment.

*Whom it’s applicable:* On all categories of Investors. Individuals, HUF, NRIs, Corporates & Non-Individuals.

*Scheme’s applicable:* All.
Equity, Debt, Liquid etc. Applicable on all categories of Mutual Fund Schemes.

*Type of Transactions Applicable:*
Purchase, Switch, SIP, STP, Dividend Reinvestment, Units bought on Exchange.

*Stamp Duty Rate: 0.005%*

Ex: 500 Rs. Stamp Duty On 1 Crore of Investment transaction starting 1st July.

Mutual Fund shall deduct the Stamp Duty from the subscription amount paid by the investor & allot units for the Balance amount.

Covid 2019 has been the major reason for havoc in stock markets and our personal lives. Working from home, managing kids, learning different house cores, keeping yourself healthy, managing food supplies and lot more simultaneously is now common to all of us. I will suggest what you should do now:

*1- Don't let stress short circuit your financial decisions.*
Markets will fall, rise, short cover, panic selling and eventually reach old highs. This has been historically proven. We need to accept this nature of stock markets and should remain calm. A wrong decision taken can ruin all your financial goals.

*2- Analyse your income flow in short to medium term.*
If this lock down stays longer, how will this impact your inflows. Say for 3-6 months if you don't get interest incomes, dividends, salaries, rental incomes, will you be able to stride over and manage your expenses?

*3- Reduce your expenses.*
Though lock down has reduced expenses towards leisure but still you should think over if there is scope of further reducing your expenses. E.g. DTH expenses, Netflix, Amazon Prime, Zee 5 subscriptions need to be looked upon. Do we need all of them or we can survive through DTH only. There must be other grey areas where we can work and reduce expenses. It is the need of hour.

*4- Increase cash/Liquidity.*
Contingency funds are recommended for the time like this. Some physical cash, liquid money can be of great help.

*5- Stay invested.*
At what levels will markets finally settle at is a question which no one can answer. Say we take out money at 26000 SENSEX levels and book losses. Markets reached 23000. You can never be sure in this pessimistic times that 23000 is the right level to invest. You will remain in cash and when markets finally bounce back you will get courage to invest at 30000 again. Quoting this example from my personal experience. So stay invested till you reach your financial goals.

*6- Optimise your debt/loans.*
Keep an on your housing loan interests. If your lender is not revising loan rates then try to look after if you can get it re-financed from some other bank with lower interest rates.

*7- Review you insurance.*
Check if you have your personal health insurance cover and a term insurance cover for all earning members in the family. Due to economic weakness, we might see job losses. Not saying something to make you feel worry, but intention is to raise caution.

Simultaneously do regular exercise at home, play with kids, call your friends and relatives and do everything that keeps you stay happy.

Most importantly do not track your portfolio and stock markets continuously.

Feel free to call me anytime at 9971998876 or mail me at [email protected]
Regards Rajat Singhal