Debt Funds and FMPs- What Now? Part 2- Why Tax Can't be Avoided

Posted by: Uma Shashikant on Sun, Aug 3rd, 2014

This is the full story. There is no real tax arbitrage in a debt fund any more.  SWP or STP, the tax is all the same as long as holding period is less than 36 months.  Read more

Debt Funds and FMPs - What Happens Now?

Posted by: Uma Shashikant on Mon, Jul 28th, 2014

After the amendment to the Finance Bill, debt funds redeemed after July 10 will be subject to new tax rules. What are the choices for investors in FMPs and debt funds?  Read more

Carnage in Liquid Funds Explained

Posted by: Amit Trivedi and Uma Shashikant on Fri, Jul 19th, 2013

The RBI's measures to halt rupee depreciation led to a steep rise in short term market rates. NAVs of liquid funds fell sharply. This was a shock as it is generally presumed that liquid funds are free from market risk. This article attempts to explain this event. Read more

Nurturing Financial Advisors - Part 3 - Don't oversimplify "Investors can and will pay for advice"

Posted by: Uma Shashikant on Sat, May 5th, 2012

The onus of recommending the right product should be on the advisor who should earn the trail commission, while the agent earns a small token commission for his limited role.  As an extension of this principle, the exit load currently charged to the investor can also be collected from the advisor.  Read more

Nurturing Financial Advisors - Part 2 - Why Variable Asset-based Fee is Needed

Posted by: Uma Shashikant on Fri, May 4th, 2012

Reputational capital in advisory business can be built only when assets under advice are evaluated by investors for performance.  This can be fostered only if advisors are able to earn a variable fee for their services. Such variable fees currently go to the distributor. Read more