platinum monthly market update 01 monthly …

0 1MONTHLY MARKET UPDATE

02MONTHLY INDICES PERFORMANCE

07 INVESTING WITHOUT GOAL IS LIKE NO SAVING AT ALL

1 2

WORDS WORTH NOW

05FOCUSED FUND OF THE MONTH

06THINGS TO CONSIDER BEFORE INVESTING IN COMPANY FIXED DEPOSIT

1 81 71 6

1 9

09 CONTINUE YOUR SIPS EVEN IN DOWNTURN 1 1

AUTOMOBLIES REVIEW

KEY HIGHLIGHTS OF BUDGET 2020

Editor : Swati Jain

Research & Editorial : Arpit Jain, Jay Sahu and Abhishek Bhatt

Production : Rahul Sharma

Advertising : Abhishek Bhatt : +91 8975029992

Address your Correspondence to :Editor , Arihant Platinum Arihant Capital Markets Limited 6 Lad Colony, Indore Madhya Pradesh - 452003

email : [email protected]

P L A T I N U M

F E B R U A R Y 2 0 2 0VOLUME X

HOW MUCH TAX DO YOU PAY ON YOUR INVESTMENT

CHOOSE SECTION 80C INVESTMENT BASED ON RISK APPETITE

THE DEVIL IN RETAIL

01MONTHLY MARKET UPDATE

FEBRUARY 2020 I VOLUME X

Market remained volatile during the January 2020 and turned bearish in second half of the month. The Indian benchmark indices closed negative with S&P BSE Sensex down by 1.29% and the Nifty 50 was down by 1.81%.

India’s performance rank slipped among key EM trackers shows. India ranked fifth among the ten markets considered by the tracker in December, behind China, Brazil, Indonesia, and the Philippines. It was at the third position in November 2019, behind the Philippines and China. RBI’s MPC will conclude its sixth Bi-monthly Monetary Policy meeting on 6thFebruary 2020.

IT and Realty were the best performing sectors, while Metals and Banks were the worst. Nifty IT was the top gainer at 2.79%, followed by Nifty Reality with 10.55% gain for the month. Other major sectoral indices saw some distress in January, after witnessing selling pressure in previous months. Nifty Auto index decline by 2.13%, followed by Nifty Financial services (-1.87%). Nifty Media & Nifty Pharma slightly gain by 1.42% and 0.97% respectively. Nifty 100 Midcap and Nifty 100 Smallcap ended the month with a gain of 5.06% and 6.37% respectively. Eight core industries index grew in Dec’19 by 1.29% YoY, vs. the contraction by 0.62% in Nov’19 due to improved performance by coal, steel, cement and electricity.

India Manufacturing PMI was up from 52.7 in December to 55.3, in January the highest in nearly eight years. While the pace of improvement is a surprise, companies attribute the rise to the underlying pent-up demand.

Automotive sales continued to remain negative trajectory due to low consumer sentiment affecting sales of automobile manufacturers in January. The subdued economic growth coupled with intensified efforts of OEMs’ to correct BS IV stocks in order to ensure smooth transition to BS-VI norms. Most of the OEMs’ have cleared BS-IV inventory and would completely switch to only producing BS-VI vehicles from mid to end of February 2020.

Global markets looked worried with concerns about a widening coronavirus outbreak in China, the second fatality outside mainland China with the total death toll now 427. Authorities have been providing a lot of support for the financial markets.

Yield of 10 year government bond closes at 6.60%.

The INR gained of 0.34% in the month of January. INR closes at 71.74 to USD vis-à-vis 71.64 last month.

02MONTHLY INDICESPERFORMANCE

(Source: BSE)

INDIAN INDICES

SENSEX

NIFTY 50

NIFTY BANK

NIFTY MID

CAP 100

NIFTY 50

NIFTY IT

NIFTY REALTY

NIFTY INFRA

-1.29%

-1.70%

-4.13%

5.31%

-0.11% 3.14

%

10.89%

-0.10%

(Source: BSE & NSE)

Jan-20

Dec-19

4072

3.49

1196

2.10

3083

3.60

1801

0.20

9861

.45

1614

4.15

331.0

5

3252

.00

4125

3.74

1216

8.45

3216

1.65

1710

2.50

9872

.55

1565

2.40

298.

55

3255

.30

BSE SECTORAL INDICES

AUTO

BANKEX CD CGFMCG HC IT

METAL

OIL & GAS

PSU

REALTYTECK

-1.75%

-3.77%

4.54%

3.06%

2.07%3.93% 2.56%

-8.96%

-5.57%

-5.58%10

.77%

2.52%

Jan-20

Dec-19

1816

1.18

3528

9.35

2614

7.11

1746

2.11

1164

1.54

1395

7.01

1587

1.46

9494

.10

1392

3.67

6567

.11

2526

.17

7911

.77

1848

5.00

3667

1.50

2501

1.55

1694

3.93

1140

5.88

1342

9.11

1547

5.81

1042

8.20

1474

4.76

6955

.57

2280

.54

7717

.63


(Source: BSE & NSE)



(Source: Falcon)

0.25% -1.29% -0.33% -0.06%

USD-INR EUR-INR GBP-INR JPY-INR

71.5

671

.38

79.0

7

80.10

93.8

7

94.18

65.74

65.78

Jan-20 Dec -19FOREX

COMMODITIES

(Source: Falcon)

0.60%4.84% -16.03% -14.86%

MCX GOLD MCX SILVER MCX CRUDE OIL MCX NATURAL GAS

41000.0

039

108.0

0

46990.0

0 3683.

00

132.

4015

5.50

4386.0

0

46711.0

0

Jan-20 Dec -19

Jan-20 Dec -19

DOW JONES NASDAQ HANG SENG FTSE NIKKEI

-0.99% 1.99% -6.66% -3.40% -1.91%

GLOBAL INDICES

(Source: CNN)

2825

6.03

2853

8.44 91

50.9

489

72.6

0

7286

.01

7542

.44

2631

2.63

2818

9.75

2320

5.18

2365

6.62



FII Activity (Rs cr)

MF Activity (Rs cr)

Purchases Gross Sales Net Pur/Sales

48,564.9

072

8,411.

92

46,082.

15 2,482.

7567,

582.81

660,829

.11

Purchases Gross Sales Net Pur/Sales

21,3

49.14

1,337

,751.1

7

33,7

17.0

4 -12,

367.

90 92,5

65.69

1,245,18

5.48

Total for Jan 2020 Total for 2020

Total for Jan 2020 Total for 2020

(Source: SEBI)

(Source: SEBI)

01FOCUSED FUND OF THE MONTH

05


AXIS BLUECHIP FUND

FEATUREWhen you invest for five years or above, you can expect gains that comfortably beat the inflation rate and are also higher than fixed income options.

EXCHANGE TRADED

Buying and selling of units can be done on exchange anytime during the tenure of the fund.

Financial Services

Consumer Goods

IT

Energy

Automobile

Index

Telecom

Construction

Cement & Cement Products

Pharma

Chemicals

Industrial Manufacturing

43.33%

16.28%

8.71%

4.97%

3.27%

2.03%

1.21%

0.99%

0.96%

0.88%

0.60%

0.37%

SECTOR ALLOCATION (AMFI CLASSIFICATION)

Mr. Shreyash Devalkar,Fund Manager

MAJOR HOLDINGS (%)

HDFC Bank Limited

Kotak Mahindra Bank Ltd

ICICI Bank Ltd

Bajaj Finance Ltd

Reliance Industries Ltd

Avenue Supermarts Ltd

Housing Development Finance Corp L

Infosys Ltd

Asian Paints Ltd

Bajaj Finserv Ltd

Tata Consultancy Services Ltd

Nestle India Ltd

Hindustan Unilever Ltd

Maruti Suzuki India Ltd

Future on Nifty 50

8.88%

8.36%

8.05%

7.92%

4.97%

4.84%

4.74%

4.17%

4.11%

3.59%

3.53%

3.28%

2.94%

2.94%

2.03%

Name Allocation

INVESTMENT OBJECTIVE

The Scheme Aims To Generate Long Term Capital Growth.

`

Growth By Investing InA Diversified Portfolio.

Predominantly Consisting Of Equity& Equity Related Instruments Of Large CapCompanies.

Delinquencies in banks’ retail portfolio is inching up. This comes even as the share of retail credit to GDP increased to 12 per cent in HIFY20 – a full percentage over the 11 per cent seen in FY08. The increase in stress was seen in credit cards, auto and even in home loans. Banks had grown their retail book in a big way in recent time given the lacklustre demand for corporate credit.

The Reserve Bank of India’s Financial Stability Reports of recent times had forewarned about the pain lurking in the retail segments. The Central Bank’s Report on the Trend and Progress of Banking (2018-19) observed that bank’s diversity strategy (into retail), while helpful as a risk mitigation tool, “has its own limitations: the slowdown in consumption and overall economic growth may affect the demand for and quality of retail loans’.

06THE DEVIL IN RETAIL


GOOD GROWTH IN RETAIL CREDIT

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

46 53 61 77 87 99 112 125 138 154 171 190 197

GDP(INRL) Bank credit/GDP ratio(%)

11.010.6

9.6 9.79.0 9.0 9.0

9.4 10.110.5

11.2 11.712.0

...BUT PLASTIC SMILE WEARING THINBalance Level Deliquency rate(90+ dpdN%)

CREDIT CARDS

PERSONAL LOANS

AUTO LOANS

HOME LOANS

LAP

2.0

0.6

3.1

1.8

0 1 2 3 4

3.8

1QFY19 2QFY19 3QFY19 1QFY20 2QFY20

3.03.3

2.92.7

3.1

0

0.75

1.50

2.25

3.00

3.75

CAR LOAN DEFAULTS ARE UPBalance Level Deliquency rate(90+ dpd)(%)

1QFY19 2QFY19 3QFY19 1QFY20 2QFY200

0.40

0.80

1.20

1.60

2.00

...AND IT’S REACHING HOME AS WELLBalance Level Deliquency rate(90+ dpd)(%)

1.7 1.7 1.7 1.7 1.8

In Today’s scenario where Bank deposit interest rates are declining and investors are not able to beat the inflation investors are worried about low returns from bank FD. If conservative or moderate investor wants to generate higher return, than Company Fixed Deposit is the best option to get fixed interest rates in the current scenario which can easily beat inflation. Just like Bank FD, interest payment on company FD is fully taxable at your income tax slab rate, so important factor is post-tax return.

So, what is Company Fixed Deposit?

Fixed deposits which are issued by private and public companies are called Company Fixed Deposit. The interest of Company fixed deposits may vary from company to company. But the risk is also associated with the return they are offering.

How to choose Best Company Fixed Deposit?

INTEREST RATES Rate of interest is the main attraction of Company Fixed Deposit. They try to offer interest rates that are higher than the average interest rates offered by Banks FD.

TENUREGenerally, longer the duration of investment, higher the rate of interest offered on Company FDs. The biggest risk of Company FDs is Default Risk. The company offering FDs may not service the interest/maturity payments. So, do not consider investing for longer duration. It is advisable to go for 1 year to 3 years tenure because company fundamentals and other related factors change from time to time.

CREDIT RATINGOne of the most important factor to consider before investing in Company FD is credit rating. Ratings are given by credit rating agencies like CRISIL, ICRA, CARE etc. These ratings are a measure of the company’s ability to pay the interest as well as principal to its investors. AAA rating is considered as safest for investment.

07THINGS TO CONSIDER BEFORE INVESTING IN COMPANY FIXED DEPOSIT


Here is the list of our recommended Company Fixed Deposit.

THINGS TO CONSIDER BEFORE INVESTING IN COMPANY FIXED DEPOSIT

08


Monthly

Quarterly

Half Yearly

Yearly

Cumulative

7.10

7.15

7.22

NIL

7.35

7.15

7.20

7.27

7.40

7.40

7.20

7.25

7.32

7.45

7.45

7.20

7.25

7.32

7.45

7.45

Company Name Credit Rating Frequency Interest rate for periods in months

HDFC Premium (FAAA) 15 30 22 44

Individual

Quarterly

Half Yearly

Cumulative

7.40

7.45

7.60

7.40

7.45

7.60

7.70

7.75

7.90

8.05

8.10

8.25

8.05

8.10

8.25


M&M Finance (FAAA) 12 18 24 36 48-60

Individual

Monthly

Quarterly

Half Yearly

Yearly

Cumulative

7.53

7.58

7.65

7.80

7.53

(7.80)*

* Note-Shriram transport yield rates-compounded monthly

7.72

7.77

7.85

8.00

7.72

(8.32)*

8.28

8.34

8.42

8.60

8.28

(9.36)*

8.37

8.43

8.52

8.70

8.37

(9.90)*

8.42

8.48

8.57

8.75

8.75

(10.42)*


Shriram TransportFinance Company (FAAA) 12 24 36 48 60

Individual & Non Individual

7.50 7.50 7.55 7.60 7.60

Company Name Credit Rating Interest rate for periods in months

LIC Housing Finance (FAAA) 12 18 24 36 60

Individual, Individual, HUF,Trust & Corporate

09 INVESTING WITHOUT GOAL ISLIKE NO SAVING AT ALL


Aditya Sharma, 36, started investing in mutual funds in 2016 but soon realized that his investments were not in line with his goals. This was also the time when his son Abhi, now four, was born and he didn’t want to invest haphazardly or take unwanted risks.

So in 2017, Sharma approached a “financial planner" who was not a SEBI-registered investment advisor. The “planner" constantly pushed Sharma to invest in mutual funds through his own website, which he wasn’t quite comfortable with. He stopped working with the planner in 2018. “For the longest time, I was invested in debt instruments such as Public Provident Fund (PPF) but I was also a regular reader of personal finance articles, which helped me understand why financial planning is important," said Sharma, a Mumbai-based software engineer.

About three months ago, Sharma and his wife Sneha visited Arihant Capital Markets Ltd to seek clarity on their money journey. “After visiting Arihant Capital Markets Ltd and meeting their investment advisor, I understood that every investment must be linked with a specific goal. My investments were debt-heavy, which wouldn’t give me the required return; so, I needed to tweak them. The biggest takeaway for me was that if your investment is not linked to a goal, it is as good as not investing at all," said Sharma.

Being raised in a middle-class household, Sharma understood the importance of money quite early on in life. They knew that planning played an important role in living a debt-free life. Initially, the couple chose investments based on their risk capacity. They went with debt instruments as they come with low risk but what they didn’t understand was that taking a certain amount of risk while you’re still young can help you achieve your goals.

Besides saving enough for their own retirement, the couple wants to ensure they save enough for their child’s education, including his higher education. Their short-term goals include buying a car. “With the current financial plan, we aim to achieve these goals through a good mix of equity and debt mutual funds as well as instruments such as PPF," said Sharma.

Sharma said his biggest learning was how to prioritize goals.

While it’s important to plan your future in terms of retirement, it’s equally important to plan for any untoward event such as a medical emergency or a job loss.

“I feel more confident now because I know I am working towards leading a financially worry-free life. I’m also educating my family on how to go about sorting our finances in my absence," said Sharma.

Now that the couple has a strong financial plan in place, they’ve begun to believe in the power of compounding.

“It’s important to understand your finances from the start of your career. Also, saving before spending is a good habit to live by as this helps one become financially independent quite early on in life," said Sharma.

The planner also found that the couple was underinsured; so they were asked to increase their term insurance cover to at least 10 times their annual income. For medical insurance, the couple has taken a family floater plan as well as a top-up policy. In addition, Sharma also gets corporate coverage from his employer for health and life.

Arihant Investment Advisor said the couple’s spending habit is within the limit, which he appreciates.

The process of financial planning has given them more clarity and helped them understand the importance of goal-based planning.

The first thing Arihant Investment Advisor did was streamline their investments. The couple also learnt that having high exposure to real estate isn’t a great idea as it may not be easy to liquidate it.

When Sharma first met the planner, 50% of their investments were in real estate, 34% in debt (PPF, recurring deposits and traditional insurance plans), and 13% in equities. But now the couple has been asked to stop investing in real estate and gradually increase their equity allocation in order to achieve their goals. Though they invested in mutual funds even before meeting the planner, their Asset Allocation wasn’t right; so the planner helped them rejig that as well.

“Since most of their goals are more than 10 years away, I suggested an asset allocation of 60:40 between debt and equity. At the same time, I’ve stressed on the importance of building an emergency corpus since both the husband and wife work in the private sector and there’s no job security as such or any provision for pension," said. Arihant Investment Advisor.

10INVESTING WITHOUT GOAL ISLIKE NO SAVING AT ALL


LESSONS LEARNT

Market volatility over the past couple of years has made people reluctant to commit more investment in equity instruments. This has been observed in mutual funds too. Investors seemed less enthusiastic to buy into systematic investment plans (SIPs) in the year gone by compared to previous years. The rate of growth in systematic investment plan (SIP) flows in April-December 2019 reduced substantially compared to the same period in the previous year.

The market has been quite volatile over the last one year; while there has been growth in indices such as S&P BSE Sensex and NSE Nifty, it has been on the account of a rally in a few large-cap stocks. Returns from a majority of mutual funds in the mid- and small-cap spaces is in the negative territory, which has disappointed many new investors who started SIPs in these funds in recent years.During market volatility investors stop their SIP investments. This is neither advisable nor smart. Investors need to continue SIPs and plan for long term returns.

SIPS DELIVER AT THEIR BEST IN A DOWNTURNEven the most ardent supporters of systematic investment plan (SIP) investing will agree that for SIPs to come off, volatile markets are helpful. With every dip in equity markets, the SIP installment garners more units for the investor. This in turn lowers the average cost of purchase. This benefit plays out when the market goes up. So, continue your SIPs during downturns and increase the amount every time your income goes up. Equity investments are meant for the long term; so short-term market gyrations shouldn’t bother you.Another important thing to consider investing via SIP is mutual fund you are choosing for investment. If you made a wrong choice of fund, SIP will not help. So, chose right fund that suit your risk appetite and good consistent track record.

BOTTOM LINEMarkets falling and rising is a reality every equity investor has to accept. However, rather than fearing the volatility, Investors should look at the downturn as an opportunity to get discounts and collect units for the time when markets go up.

11CONTINUE YOUR SIPSEVEN IN DOWNTURN


12HOW MUCH TAX DO YOU PAY ON YOUR INVESTMENT


Tax rules vary for different types of instrument-equity, debt, bonds, gold and real estate. Even within these categories, different rules apply to different instruments. The Budget 2020 has not made too many changes to taxes, except the abolition of DDT. Here’s a look at the various taxes that apply to some of these instruments under various categories.

Securitiestransaction

tax (STT)

Tax oninterest/dividend

Tax onshort-termcapital gain

Tax onlong-term

capital gain

What islong

term?

Equity-oriented mutualfunds (more than 65%in equities and listed)

Delivery: 0.001%;Intraday: 0.025%1

At slab rate1b 15.6%1b (Taxableunder Section111A)

10.4%2 (Taxableunder Section112A)

More thanone year

Listed stocksDelivery: 0.1% (buyer and sellerpay); Intraday:0.025% (sellerpays)

At slab rate1b 15.6%1b (Taxableunder Section111A)

10.4%2 (Taxableunder Section112A)

More thanone year

National Pension System NA NA NA3 NA3 NA

Unit-linked insuranceplans NA Exempt4 NA4 NA4 NA4

EQUITY


tax (STT)



Tax onlong-term

capital gain

What islong

term?

Debt-oriented mutualfunds (listed)

NA At slab rate1b At slab rate1b 20.8% More thanone year

Fixed deposits NA At slab rate7

At slab rate

At slab rate7

At slab rate8

At slab rate

Insurance plans (money-back and traditional)

Kisan Vikas Patra

National Savings Certificate

Post office deposits

Public Provident Fund

Senior Citizens SavingScheme

Sukanya Samriddhi Yojana

NA Exempt4

NA

NA

NA

NA

NA

NA

NA

NA4

NA

NA

NA

NA

NA

NA

NA

NA4

NA

NA

NA

NA

NA

NA

NA

NA4

NA

NA

NA

NA

NA

NA

Exempt

Exempt

DEBT


tax (STT)



Tax onlong-term

capital gain

What islong

term?

Listed bonds*NA At slab rate At slab rate 10.4% More than

one year

More thanone year

More than3 years

54 EC bonds (unlisted) NA NA At slab rate NA5 NA5

NA5

NA5

Tax-free bonds (listed/unlisted) covered underSection 10(15) held untilmaturity

NA Exempt NA6 NA

Tax-free bonds (listed)covered under Section10(15), transferred beforematurity

Tax-free bonds (unlisted) covered under Section10(15), transferred beforematurity

NA

NA

Exempt

Exempt

At slab rate6

At slab rate6

10.4%6

20.8%6

BONDS




tax (STT)



Tax onlong-term

capital gain

What islong

term?

Deposit certificates issuedunder the Gold MonetisationScheme, 2015

NA Exempt

At slab rate

NA More thanone year

Fixed gold NA NA

Sovereign Gold Bond NA At slab rate

NA

20.8%

Exempt9

More than3 years

1 year, iflisted;

3 years,if unlisted

GOLD

At slab rate


tax (STT)



Tax onlong-term

capital gain

What islong

term?

NA Exempt More than2 years

20.8%

REALESTATE

At slab rate

1 Payable by the seller during redemption or switch

lb Tax rates include cess at the rate of 4% but not surcharge that's applicable for incomes over 50 lakh

2 Under long-term capital gains (LTCG) for unlisted equity, the tax rate is 20.8% with indexation benefits. LTCG exceeding `1 lakh on sale of listed equity share and a units of equity-oriented MF will be taxable at 10.4% without indexation. However, in caseof equity share and unit of equity-oriented MF acquired before 1 February 2018, the cost of acquisition would be higher of (a) actual cost of the equity share or unit of equity-oriented MF or (b) lower of (i) fair market value of the equity share or unit of equity-oriented MF as on 31 January 2018 or (ii) sale consideration of the listed equity share or unit of equity-oriented MF grandfathering provision)

3 Lump sum withdrawals from NPS on maturity are tax-free up to 60% of total amount payable on closure or opting out of the scheme. Regular pension is fully taxable

4 Maturity proceeds are exempt under Section 10(10D) for qualifying life insurance policies where premium payable doesn't exceed 10% of capital sum assured (20% if policy is issued prior to 1 April 2012). on-qualifying Ulips are liable for capital gains with a holding period of more than three years to turn long term. There is no STT or DDT

5 Since Section 54EC bonds are non-transferrable and only give rise to interest and repayment of principal, the question of capital gains does not generally arise. There is no STT or DDT

6 Premium on redemption of bonds issued under Section 10(15) is exempt if held till maturity. If transfer is made before maturity, capital gains, if any, will be taxable without indexation

7 For senior citizens, interest up to 50,000 in a year can be claimed as deduction

8 The amount of interest, if reinvested, is allowed as deduction under Section 80C up to `1.5 lakh

9 Transfer of Sovereign Gold Bond issued by the Reserve Bank of India under the Sovereign Gold Bond scheme, 2015, by way of redemption, is exempt. If transfer is made before redemption, in case of listed bonds, long-term capital gains will be taxable at the rate of 20.8% with indexation or 10.4% without indexation, whichever is lower, in case of unlisted bonds, will be taxable at 20.8% with indexation

*Bonds qualify as securities under the Securities Contracts (Regulation) Act, 1956. Bonds and debentures are excluded from the benefit of indexation



Income from salary- Less: Less: house rent allowance*

-Less: standard deduction-Less: deduction under Section 80C

-Less: deduction under Section 80CCD(1B)*

Less: deduction under Section 80D***

Taxable income

Basic threshold exemption

Taxable amount

Tax levied according to tax slabs

First slab (̀ 2.5 lakh-5 lakh) @ 5%

Second slab (̀ 5 lakh-7.5 lakh) @ 20%

Third slab (̀ 7.5 lakh-10 lakh) @ 30%

Total tax

Surcharge (10% of total tax)

Total tax and surcharge

Health and education cess (4% of total tax and surcharge)

Total tax and cess

Income in hand after tax

10,00,0001,00,00050,0001,50,00050,000

25,000

6,25,000

2,50,000

3,75,000

Tax you Pay(̀ )

12,500

25,000

NA

37,500

-

-

1500

39,000

9,61,000

Income from salary

Taxable income


Taxable amount





Fourth slab (̀ 10 lakh-12.5 lakh) @ 20%

Fifth slab (̀ 12.5 lakh-15 lakh) @ 25%

Sixth slab (above ̀ 15 lakh) @ 30%

Total tax




Total tax and surcharge and cess


10,00,000

10,00,000

2,50,000

7,50,000

Tax you pay (̀ )

12,500

25,000

37,500

-

-

-

75,000

-

-

3,000

78,000

9,22,000

NEW REGIMEOLD REGIME `10LAKH

INCOME

(in `)(in `)



65,00,000

16,50,00050,0001,50,00050,000

25,000

55,75,000

2,50,000

53,25,000

Tax you Pay(`)

12,500

1,00,000

13,72,500

14,85,000

1,48,500

16,33,500

65,340

16,98,840

48,01,160

NEW REGIMEOLD REGIME `65LAKH

INCOME

Income from salary- Less: Less: house rent allowance*

-Less: standard deduction-Less: deduction under Section 80C

-Less: deduction under Section 80CCD(1B)*

Less: deduction under Section 80D***

Taxable income


Taxable amount





Total tax




Total tax and cess


Income from salary

Taxable income


Taxable amount





Fourth slab (̀ 10 lakh-12.5 lakh) @ 20%

Fifth slab (̀ 12.5 lakh-15 lakh) @ 25%

Sixth slab (above ̀ 15 lakh) @ 30%

Total tax




Total tax and surcharge and cess


(in `)(in `)

65,00,000

65,00,000

2,50,000

62,50,000

Tax you pay (̀ )

12,500

25,000

37,500

50,000

62,500

15,00,000

16,87,500

1,68,750

18,56,250

74,250

19,30,500

45,69,500

Your choice of section 80C investments, for enjoying deduction of up to Rs. 1.5 lakh, should be in line with your financial goal.

A large chunk of the section 80C limit will get filled by your monthly Contribution to Employees’ Provident Fund (EPF).

PPF is a wise choice for investors looking for capital protection and tax free returns. But it comes with a 15-years lock-in.

ELSS works for those looking for higher returns, but willing to tolerate the volatility of equities.

NPS is low cost and good for investors with a moderate risk profile.

CHOOSE SECTION 80C INVESTMENT BASED ONRISK APPETITE

16


Scheme Name Rate or return (Annual) Lock-in periodTax treatment

Public ProvidentFund

Equity Linked SavingScheme

National PensionScheme

(All Citizen Model)

National SavingCertificate

Tax-Saver FixedDeposit

Sukanya SamriddhiYojna

Investments qualifies for section 80C tax

deduction. Interest is tax free

Principal qualifies for section 80C tax

deduction. LTCG@10% on gains above Rs. 1Lakh in A financial

year


deduction. LTCG@10% on gains above Rs. 1Lakh in A financial

year

Principal & interest both qualifies for section 80C tax

deduction

Principal qualifies for tax deduction under

section 80C. Interest is taxable as per

income-tax Slab.


deduction. Interest is tax free.

15 years; Partial withdrawal permitted

after five year.

3 years

Up to retirement.Partial withdrawal

under stringent conditions

5 Years

5 Years

21 years from date of opening of account or

upon marriage of account holder,

whichever is earlier

7.9%

Variable. 5-YearReturn: 7.65 - 12.17%

Variable.Tier-1 Equity 6.24 –

8.25%.Tier-1 Govt Bond: 8.68

– 9.93%.Tier-1 Corporate

Bond: 8.47 – 9.05%

7.9%

5 – 9%

8.40%

BE MINDFUL OF LOCK-IN TOO

KEY HIGHLIGHTS OF BUDGET 2020

17


AUTOMOBILE REVIEW :TATA NEXON EV

Homegrown automotive manufacturer Tata Motors Ltd today launched its popular electric compact sports utility vehicle (SUV) Nexon EV. The compact SUV is its first EV in the personal segment. Tigor EV was the first commercial electric car from Tata Motors. The Nexon EV will be competing against the likes of Hyundai Kona and MG ZS EV.

The bookings for the EV started on December 20, 2019. People can book the car by paying an advanced token amount of Rs 21,000.

For Tata Motors, the year 2020 seems to have started with a bang. The company has already launched four cars so far -- Tata Altroz, 2020 Tata Nexon, 2020 Tata Tigor and 2020 Tata Tiago. The new Nexon EV will be the company's fifth offering this year.

The Nexon EV is available in three variants, starting at an introductory price of Rs 13,99,000 for XM version; Rs 14,99,000 for XZ+ model; and Rs 15,99,000 for top XZ+ Lux variant. The SUV comes with a free home charging device and installation service.The XZ+ Lux variant has projector headlamps with DRL, front fog lamps, auto rain-sensing wipers, 16-inch diamond-cut alloy wheels, keyless entry, auto climate control, leather upholstery, sunroof, and seven-inch infotainment system.

The Nexon EV is powered through a Permanent Magnet Synchronous (PMS) motor, which generates up to 127 bhp and 245 Nm of torque. The car gets its juices from a 30.2 kWh lithium-ion battery.

The Nexon EV can reach 0-100 km per hour in 9.9 seconds, claims Tata Motors. Nexon EV has two drive modes -- sport mode and drive mode. The car also has regenerative braking technology.

Nexon EV delivers a driving range of 312 km per charge as per ARAI-certification norms. The battery can reach from 20 per cent to 100 per cent with a standard charger in eight hours. However, a fast charger can boost the charging speed further with zero to 80 per cent in just in an hour. Tata Motors is also offering an engine warranty of 3 years-1.25 lakh kilometre and battery warranty of 8 years - 1.6 lakh kilometre as standard.

Get it for� 14 lakh

HighlightCAN CHARGE FROM ZERO TO 80% IN 1 HOUR

18


WORDS WORTH NOW19

Green energy comes to mind [as a high-growth sector]. because in a sense we all accept around the world that no matter what you think of global warming, the day for fossil fuel economies is coming to an end. Slowly, but it is coming to a close. We still need energy, because all these appliances run on it. So green

energy has to mature. You cannot be subsidized for the rest of your life. So you are going to see green energy as a space expand.

[Speaking about a new loan product] We are committing that till the time a project receives an occupation certificate (OC), there will be a guarantee which the bank will offer buyers who take loans from it. This will be a win-win situation for home buyers, builders

and the bank.

The [Amazon] are investing money over the last few years also in warehousing and certain other activities, which is welcome. It is good, but if they are bringing in money largely to finance losses and those losses in an e-commerce marketplace model, a fair marketplace model. In a turnover of $10 billion, if you are going to have a loss of a billion-billion and half dollars, it certainly raises questions, where the loss came from.

The next six months would be strong [for steel demand] and have historically been so as the January-June period is the best period for the industry globally. The good thing is that industry's stocks are low across the value chain. So, there will be a period of restocking,

which has already started and we see firming up of demand and prices across most geographies.

The 21st century is going to be the Indian century. In this 21st century, the most important alliance is going to be the alliance between India and the United States.It would be politically very incorrect to

say that BS-VI is not the right thing to do, but frankly I want to say it. Because in my view, getting rid of old vehicles through a suitable mechanism would have been much more effective than squeezing out the last bit of emission from BS-VI vehicles.

Rajnish Kumar Chairman, SBI,India today In January 2020

Piyush Goyal,Commerce minister,The Economic Times,January 17, 2020

Koushik Chatterjee ED & CFO, Tata Steel,Business Standard, January 21. 2020

Jeff Bezos CEO, Amazon,Financial Express, January 16, 2020

Rajiv Bajaj MD, Bajaj,The Economic Times, January 15 2020

Aswath Damodaran Professor: Slem School of Business, NYU,The Economic Times, January 16, 2020


SEBI Registration number for BSE/NSE (Stock Broker)- INZ000180939; NSDL - IN-DP-127-2015 DP ID-IN301983; CDSL DP ID-43000;NCDEX - 00080; MCX - 10525; AMFI - ARN 15114; SEBI Merchant Banking Regn. No. - MB INM 000011070;

SEBI Research Analyst Regn. No. - INH000002764 and SEBI PMS Regn. No. – INP000006660.Security Code- 511605 CIN of the company- L67120MP1992PLC007182

Scheme Name

Axis Bluechip Fund(G) Large Cap 19.82

14.54

19.6

13.44

15.14

10.22

11.12

8.87

14.12

12.35

14.69

11.23

Large Cap

Large & Mid cap

Multi cap

Mirae Asset Large Cap(G)

Mirae Asset Emerging Bluechip(G)

Kotak Standard Multicap(G)

Category1 year 3 year 5 year

SIP Returns(%)

`

` ``

Make someMONEY

GROW& SAVE

LIVEmore

WORRYLess

`

PROTECTwhat youhave withinsurance.

GIVE more of yourtime to your family

& loved ones

Spend lessthan you earn.

SAVE

Make goals.DREAM

FINANCIALPLANNING IS NOT ABOUT MONEY

platinum monthly market update 01 monthly …

Documents