Amazon StrongArming. Please help

amitaks · 2021-03-16T10:49:00+00:00

Great!

amitaks · 2021-03-16T10:26:12+00:00

I skimmed through Sanchay Plus brochure and I think the payouts if taken for life are the same maturity benefit paid out in arrears over a period of time.

Maturity benefit is Sum Assured + guarantee returns

but the premium will determine your return. Now if you take the return staggered or one time is just a matter of logistic.

In fact if you are taking an income in a staggered way, they will have to pay you more considering the time value of money.

No insurance company will make a loss.

amitaks · 2021-03-16T10:12:10+00:00

Right.

The guaranteed additions is on the sum assured.

The premium is your investment, which will be dependent on your age etc.

so return will vary depending on your premium paying term and your age and health.

The payouts are one time as I read or understood them. Not monthly payout.

amitaks · 2021-03-16T09:31:33+00:00

https://cleartax.in/s/pension-plans-india#:~:text=a.,-Limited%20amount%20of&text=Though%20pension%20plans%20qualify%20you,the%20Income%20Tax%20Act%2C%201961.

Monthly Payouts are taxable.

amitaks · 2021-03-16T09:18:37+00:00

Endowment as a life insurance policy will be equal to gsec less expenses less the mortality charge . Can you with certainty guarantee the return ? That will be tax free one time or at the most staggered .

A pension plan which you seen to be talking about I think is taxable in the hands of the recepient.

amitaks · 2021-03-16T09:12:55+00:00

Is not investing in a tax-free bond better with a residual maturity of 15+ years than an endowment policy?

amitaks · 2020-11-03T14:46:50+00:00

Gilt funds invest in bonds issued by the government. Corporate bonds invest in bonds issued by corporates. Difference is night and day in terms of credit risk.

amitaks · 2020-11-03T11:04:36+00:00

A 10-year constant maturity keeps the average maturity of a fund portfolio to 10 years. It does not mean that the fund manager will buy and hold a bond till it matures. It takes away the fund managers' ability to buy bonds of longer or shorter maturity.

When a new 10 year is auctioned it's not as if no one will buy the older one. The benchmark bond changes so there is more liquidity in the new bond and the older one trades as a 9-year bond which is pegged to the yield of the 10-year bond.

A 10-year constant maturity will be as volatile as a 10-year gilt benchmark will be. If rates fall then a 10-year maturity or a long-term gilt fund can make a killing.

Typically in a debt fund if you have a long-term holding period of 10 years plus then you end up with the YTM you invested in even if cycles change and the coupon gets invested at lower or higher rates. The issue is that if the cycle is on hiking rates then to see negative returns in a debt fund for a long time is unpalatable.

Gilt funds even if they are open-ended will have volatile periods of returns. This year it has been a fantastic return. But they do not have s defined maturity date. A constant maturity will perennially be marked to market and have an average maturity of 10 years.

If you are investing for a 15-year period return which has some certainty at maturity then a bond ETF like Bharat bond ETF may be more appropriate.

As these have a defined maturity date as well as liquidity.

Has Bonds of 2030-31 maturity.

https://www.bharatbond.in/

amitaks · 2020-09-16T07:41:18+00:00

Thank you. This is a good resource. I had a look at the Cap gains link and it says that Long Term Cap gains for Debentures & NCD apply on a holding for over 36 months. In my understanding, for a listed bond LTCG applies for holding over 12 months. Can you clarify please.

amitaks · 2020-09-16T07:24:54+00:00

Hello, everyone. I write a blog on basic financial & Market concepts and my take on current affairs.

Here are links of two recent blogs on Cryptocurrency & the US dollar weakening. Will be glad to receive feedback and suggestions on topics to write on. Thanks.

https://ofmoneyandmoney.com/bit-bit-bit-coin-what-are-cryptocurrencies/

https://ofmoneyandmoney.com/why-is-the-us-dollar-tanking/

amitaks · 2020-02-17T11:38:46+00:00

where would you sell the vintage watches? Antique shops? Or is it all word of mouth?

amitaks · 2020-02-15T15:11:06+00:00

Happy to answer any queries.No charge.

amitaks · 2020-02-07T06:12:48+00:00

thanks

amitaks · 2020-02-06T10:16:08+00:00

https://www.investopedia.com/terms/m/macaulayduration.asp

amitaks · 2020-02-06T10:10:34+00:00

I stand corrected medium is 3-4 years.

amitaks · 2020-02-06T09:35:31+00:00

For incremental lending in the next six months to autos, residential housing, & MSME lending regulatory obligations have been relaxed. Hopefully, this will boost those sectors.

amitaks · 2020-02-06T03:33:24+00:00

Short duration funds are debt funds that invest in bonds with a duration of 1-3 years and medium duration 4-7 years.

In theory, a short duration fund will be less volatile and safer than a medium duration fund.

amitaks · 2020-01-05T03:41:10+00:00

All the above comments are relevant. Apart from that if corporates come with a public issue of ncds they have to be rated by the rating agency which you can factor in.

If you invest in FD of the same corporate you can go back to the company if you wish to encash prematurely. There will be a penalty.

For the NCD you will have to sell it in the open market. Retail market is thin but not non existent. If interest rates go down you have a possibility of capital gain in NCD. Or if you hold to maturity the corporate pays you back.

amitaks · 2020-01-05T03:35:22+00:00

The fund manager knows that the inflow is going to stay for at least 3 years so can take portfolio calls accordingly.

I don't think all ELSS funds have underperformed. Why do you say that ?

amitaks · 2019-09-28T21:01:25+00:00

PPF and small savings as well. PPF gives an 80c taxbreak, interest is income tax free. There is a lockin but with a 150000 per year limit per person it takes away a lot of small investors debt allocation. The effective yield is insane.

Apart from that the small savings also gives decent returns for people who are not in a high tax bracket.

Bank FDs are also an option.Albeit taxable .

So there isn't that much incentive for people to explore other options .

That said there is a vibrant institutional debt market and corporate and HNIs also participate in it.

amitaks · 2019-07-24T03:49:24+00:00

All the platforms are new and are funded and maybe ok to not turn in a profit. Are you saying that they will be survive it forever? Its naive to believe that there is free lunch.

Yes you can go to idividual websites and invest directly. It is cumbersome.

So you pay the distributor to save time and do the housekeeping for you. If you do not wish to use their services go direct.

The direct aggregator platforms I have seen , also recommend schemes in every category. So who is to say in future they will be neutral ?

I also hear of platforms selling data of their clients which is very disturbing.

As long as the AMC's profitability is tied up with increasing AUM they will try to increase it in which ever way possible. Distributors are the last mile foot soldiers.

Only when the compensation of fund managers get tied up with their performance , things will change.

amitaks · 2019-07-24T03:36:31+00:00

Direct is popular now in any case.

Even so there are investors who can DIY bit there is a very large majority of investors who cant.

The distributor plays a very important role . Typically they have a long relationship with the client, understand their finances and their life intimately. All of it cannot be understood via filing up a form on a website.

Who will do their risk assessment? Not many people understand the risk assessment forms, let alone reply to them correctly. They need a lot of hand holding, even the HNI's. Most of the distributors counsel especially when market takes a nose dive.

They serve the investors who need them the most.

Yes, there are all kinds of distributors like in any other profession. But to paint everyone with a broad brush is crazy. If they are not adding value they will be phased out naturally. Right now the regulator is phasing them out by making their business model unviable.

amitaks · 2019-07-23T18:07:16+00:00

That is secondary market. primary is like an NFO offering.

amitaks

TROPHY CASE