Value Plus Investing

01/11/2021

AIS (Annual Information Statement)

Today Income Tax Department has announced rollout of a new statement - AIS (Annual Information Statement)

This will give u all details (well almost all!) about YOUR financial transactions during the year

This is a thread to tell u what it is and how do u get the AIS

(1/n)

First of all,

What is AIS (Annual Information Statement)?

You know earlier Income Tax used to give statement 26AS

AIS is a much detailed one - with many more details included - like your Savings Interest, all Mutual Fund txns during the year etc

(2/n)

Will 26AS be stopped?

a) Now you can get both 26AS and also AIS
b) Both put together, Income Tax department knows all your financial txns
c) And it's good as now you will find it very easy to know and submit details for your Income Tax returns

(3/n)

How to access my AIS?

a) Log in to your Income Tax account at https://t.co/WtESV72dHq
b) Go to Services Tab
c) Last option in this tab is the AIS option

When u click on the AIS option in the above dropdown

it will open a new tab withbelow options

It has two options
a) Left side - Tax Information Summary (TIS)
b) Right side - AIS

Both are the same. TIS is a summary and AIS is the detailed statement. You can download both

When u download u get a pdf statement (There is json option also, but let's stick to PDF now)

PDF will be password protected

Password is ur PAN Number (in CAPITAL) + Date of Birth

EG: AABPN4678A if this is ur PAN and Date of birth is 28 Nov 1980

Pwd: AABPN4678A28111980

AIS captures all ur financial txns of last year

a) Interest u got (even of ur Savings Account)
b) Salary or Income
c) Mutual Fund Txns
d) Any Dividends

A snapshot of summary is shown below. Details are given in the pdf

Any Qs will be happy to answer
*** End**

28/05/2021

Expenses Ratio In Mutual Fund

For having some control over the expenses that the AMCs charge from investors, SEBI has stipulated the upper limits. The maximum permissible limits for the expense ratio now depend on the assets under management (AUM) of the fund.

AUM of Rs 0-500 crore – 2.25%
AUM of Rs 500-750 crore – 2.00%
AUM of Rs 750-2000 crore – 1.75%
AUM of Rs 2000-5000 crore – 1.60%
AUM of Rs 5000-10,000 crore – 1.50%
AUM of Rs 10,000-50,000 crore – TER reduction of 0.05% for every increase of 5,000 crore AUM or part thereof
AUM of Rs 10,000-50,000 crore – 1.05%
For index funds & ETFs – 1.00%

Note – Direct plans will always have a lower expense ratio than regular plans as these are sold directly to investors without any payment of commission to the mutual fund agent (like in regular plans). As a result and always, direct plans give higher returns than regular plans of mutual funds.

25/01/2020

I like stock market
One of the reason
Is
There is no CASTE BASED RESERVATION for being INVESTORS.

25/11/2019

Que :- Why do some companies with huge reserves still have debt on their bills? Why don't they just pay it off comfortably and become debt free?

Ans:-
reserves are accounting entry across which they have assets - not liquid cash to pay off debt

11/09/2019

The $86 Trillion World Economy in one chart

Source:-

According to the latest World Bank data, the global economy is now $85.8 trillion in nominal terms. Here's how it breaks down by country GDPs.

30/07/2019

Eligibility Criteria for Securities

Eligible Universe:

To be considered for inclusion in NIFTY 500 index, companies must form part of eligible universe. The eligible universe includes:

 Companies ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data

 Companies traded for at least 90% of days during the previous six months period
NIFTY broad based indices are reviewed twice every year based on six month data ending January 31 and July 31. Eligibility criteria for newly listed security is checked based on the data for a three-month period instead of a six-month period.

At the time of index reconstitution, a company which has undergone a scheme of arrangement for corporate event such as spin-off, capital restructuring etc. would be considered eligible for inclusion in the index if as on the cut-off date for sourcing data of preceding six months for index reconstitution, a company has completed three calendar months of trading period after the stock has traded on ex. basis subject to fulfilment of all eligibility criteria for inclusion in the index.

Eligible Securities:

All equity shares listed on the NSE are eligible for inclusion in
the NIFTY indices. Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return are not eligible for inclusion in the NIFTY indices.
Differential Voting Rights:

Equity securities with Differential Voting Rights (DVR) are eligible for inclusion in the index subject to fulfilment of criteria given below:

 Market capitalisation criteria is measured at a company level by aggregating the market capitalisation of individual class of security meeting the liquidity criteria for the respective index

 Free float of DVR equity class share should be at least 10% of free-float market capitalization of the company (voting equity class share and DVR equity class share) and 100% free-float market capitalization of last security in respective index

 It should meet liquidity criteria applicable for the respective index

 Upon inclusion of DVRs in index, the index may not have fixed number of securities. For example, if DVR of an existing
NIFTY 50 constituent is included in NIFTY 50, the NIFTY index will have 51 securities but continue to have 50 companies

 It is possible that the DVR is eligible for inclusion in the index whereas the full voting rights security class is ineligible. In such scenario, the DVRs shall be included in the index irrespective of whether full voting rights share class is part of index

30/07/2019

Index Criteria
(Source :-NIFTY Broad Market Indices – Methodology Document, May 2019)

1. NIFTY 500:
NIFTY 500 represents the top 500 companies based on full market capitalisation from the eligible universe.

2. NIFTY 100:
NIFTY 100 represents top 100 companies based on full market capitalisation from NIFTY 500. This index intends to measure the performance of large market capitalisation companies.

3. NIFTY Midcap 150:
NIFTY Midcap 150 represents the next 150 companies (companies ranked 101-250) based on full market capitalisation from NIFTY 500. This index intends to measure the performance of mid market capitalisation companies.

4. NIFTY Smallcap 250:
NIFTY Smallcap 250 represents the balance 250 companies (companies ranked 251-500) from NIFTY 500. This index intends to measure the performance of small market capitalisation companies.

5. NIFTY 50:
The index represents 50 companies selected from the universe of NIFTY 100 based on free-float market capitalisation and liquid companies having average impact cost of 0.50% or less for 90% of the observations for a basket size of Rs. 10 Crores. The constituents should have derivative contracts available on NSE.

6. NIFTY Next 50:
It represents the balance 50 companies from NIFTY 100 after excluding the NIFTY 50 companies.

7. NIFTY Midcap 50:
It includes top 50 companies based on full market capitalisation from NIFTY Midcap 150 index and on which derivative contracts are available on NSE. In case 50 midcap stocks do not have derivatives contract available on them then it could have less than 50 stocks in the index.

8. NIFTY Midcap 100 (formerly NIFTY Free float Midcap 100):
It includes all companies from NIFTY Midcap 50. Remaining companies are selected based on average daily turnover from NIFTY Midcap 150 index.

9. NIFTY Smallcap 50:
It represents top 50 companies selected based on average daily turnover from top 100 companies selected based on full market capitalisation in NIFTY Smallcap 250 index.

10. NIFTY Smallcap 100 (formerly NIFTY Free float Smallcap 100):
It includes all companies from NIFTY Smallcap 50. Remaining companies are selected based on average daily turnover from top 150 companies selected based on full market
capitalisation from NIFTY Smallcap 250 index.

11. NIFTY 200:
NIFTY 200 includes all companies forming part of NIFTY 100 and NIFTY Midcap 100 index.

12. NIFTY LargeMidcap 250
It includes all companies from NIFTY 100 and NIFTY Midcap 150. It intends to measure performance of the large and mid-market capitalisation companies.

13. NIFTY MidSmallcap 400:
It includes all companies from NIFTY Midcap 150 and NIFTY Smallcap 250. It intends to measure performance of the mid and small market capitalisation companies.

28/07/2019

41 Lac new Demat accounts were opened in FY 19 in which Equity Markets were subdued
FY 19 New Demat account opened were little less than what were opened between FY 12 to FY 15.
Probably the power of Digital Reach & Disruptive Pricing.

28/07/2019

Indians remitted $ 11.7 billion from US in 2018.
Indian tourists spent $ 15.8 billion in US in 2018.

US Direct FDI in India in 2017 was ~ $ 6 billion.
Indians spend on educating their Kids in US in 2017 ~ $ 8 billion.