Tuesday, May 31, 2016

Changes in Securities Transaction Tax - 2016

With effect from 1st June 2016, rate of levy of Securities Transaction Tax (STT) on sale of option has been revised from current rate of 0.017% to 0.05%.

Accordingly, STT on the transactions executed on the Exchange on or after June 01, 2016 shall be charged at the rates indicated below:

Monday, May 30, 2016

Trading Idea - June 2016

This months trading idea is a contra call on Nifty which has seen very sharp up-move of 500 points in a week. But with every rise the valuation of Nifty is getting richer which is already expensive at 8200.

Nifty chart 5 day

Friday, May 27, 2016

Free E-Filing of Income Tax Return in India – 2016

If you are a salaried individual and need to file your income tax return for the financial year FY-2016 you can do it yourself for free and that too without any technical knowledge.

e-filingOnline portals like H&R block, Clear tax etc. are offering hassle free easy step by step process that collects your tax related data and documents through simple questionnaires and e-file your returns online. These online e-filing portals are registered e-Return intermediary and information you provide them are absolutely safe & secure. You can download the list of all registered e-return intermediaries from Tax Information Network of Income tax department.

Thursday, May 26, 2016

Health Insurance must for a sound financial future

We all talk and listen a lot about financial planning and the importance of right asset allocation for Equities, bonds, gold, real estate etc. but even the best of the allocation strategy will fall apart if we are not adequately insured for life and health.

While many of us have a life insurance, though very small and inadequate, majority of Indians have no health insurance. As per recent National Sample Survey Data released in April 2016, Over 80 per cent of India’s population is not covered under any health insurance scheme. The data reveals that despite seven years of the Centre-run Rashtriya Swasthya Bima Yojana (RSBY), only 12 per cent of the urban and 13 per cent of the rural population had access to insurance cover. This poses a major threat to a family's financial future. 

Wednesday, May 18, 2016

Portfolio Update - May 2016

Quite a few changes in the portfolio. Exited one, added a significantly beaten down stock with attractive valuations and averaged another.

Please take a look at the updated portfolio:


Monday, May 16, 2016

Personal Accident Insurance – 16 important points everyone should know

At 28, Viren was one of the most punctilious planners that I had met in my life. He had a good professional life, completing the picture was his loving wife and two kids, whom he adored. Being a family man, he had bought two term insurance policies and a family floater health insurance policy. Armed with both these insurance policies, he was confident about his family’s financial security in his absence.

However, life is not so simple and easy. Viren met with an accident and his grave injuries left him incapacitated to work for at least next two years. While his family floater mediclaim policy took care of his hospitalization expenditure, for the rest, he dug into his rainy day savings to meet household expenses. However, the ordeal did not end here. As the sole breadwinner was unable to continue his job, the financial situation deteriorated. As term insurance policies pay benefits in case of death only; in this case, Viren was alive, and therefore, his term insurance policy didn’t pay anything. Suddenly, his poor state struck hard and Viren asked himself, if he could’ve done anything to avoid his gloomy state. 

Thursday, May 5, 2016

Trading Idea - May 2016

For the Month of May one can initiate a short put trade on Adani Ports. The stock has corrected sharply in-spite of good results primarily because of unexpected balance sheet expansion and slower than expected volume growth. However the fall is quite sharp and has made implied volatility high.

One can sell 1 lot (1600 shares) of Adani Ports 160 put @ 0.5 for a cash flow of Rs.800 before brokerage and taxes.

Total Return from the trade:

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...