Passive Investment Strategies In Stock Market

Passive Investment Strategies In Stock Market

Intro Passive investing comes with a goal to build wealth gradually over the years. In cases of passive investment, regular trading, buying and selling, are limited. However, the return is maximized through medium and long-term investment. The ‘buy and hold’ strategy is applicable in this form of investment, and it has been noticed that wealth formation is better compared to active investing, in the long run. With this form of investing, the charges are minimum, as well as the risk.  Various Strategies of Passive Investment in Stock Market The best example of passive investment is investing in an index fund. In case of an index fund, you invest a good amount of money to a fund that mimic the growth of the index that it is part of. There is no active manager to tackle the growth regularly. However, they weight the funds, once in a while, and make sure...
Index Funds – Are they Worth It?

Index Funds – Are they Worth It?

What are index funds? Index funds are a compilation of funds that mimic a specific market Index. This is also a form of Mutual fund with a diverse portfolio. In the index funds comparison to any actively managed fund, this is the only similarity. If you are investing in the NIFTY 50 Index fund, for example, it will have a percentage of the companies listed under it. This reduces the risk of investment but, at the same time, may limit the portfolio return. It is a given fact that the market will eventually do better than any single fund in question. This makes it a great investment option for retirement benefit as the Index fund will ultimately grow in the long run. Two features that make index funds stand out If you check the Index funds comparison to any other fund, you will find it as a better option in...
Tax Audits

Tax Audits

Introduction The word “Audit” means examining something thoroughly. The audit is the systematic and independent review of the financial statements to give an opinion. As the organizations need to determine whether they are complying with the stated principles and regulatory requirements, they under the obligations for various audits throughout the financial year.   Here in this article, we are discussing various types of audits and their applicability as per the relevant Acts. Various Types of Audits Statutory Audit:   Statutory audit means reviewing whether the companies are fulfilling the statutory obligations, it includes Income tax, GST, TDS, ESI, PF compliances etc. It is one of the mandatory audits by the law. Every fiscal year from April 1 to March 31, the companies prepare their financial statements, including the Profit and loss account, Balance sheet, and Cash flow statement. Such statements are published for the general public to know the financial position of...
DIR-3 KYC Directors Compliance

DIR-3 KYC Directors Compliance

If you are a DIN holder, then compliance of DIR-3 KYC is compulsory, even if you are not a director with any company.  Are you Shocked?  Don't worry, even if it's compulsory compliance, but it is still effortless to comply with it. Let's understand everything about DIR-3 KYC. What is DIR-3 KYC Form? DIR-3 KYC Form is a form of MCA and has to be complied online just by filling the director's contact details. Companies third amendment rules, 2019, had first introduced this form, w.e.f from July 2019. Who has to file DIR-3 KYC Form?  Every director or a partner who has an active DIN must comply with DIR-3 KYC every year before 30th September. What is the last date to file DIR-3 KYC? The last date of filing DIR-3 KYC without penalty is 30th September of every financial year, starting from the next succeeding year when you got DIN....
MSME Loan Announcement in Aatma Nirbhar Package

MSME Loan Announcement in Aatma Nirbhar Package

Introduction: On 13 May, finance minister of India Smt. Nirmala Sitharaman announced the first tranche of the economic package which was more focussed on uplifting MSME Sector. This MSME economic package aims to revive and restart business which is affected due to COVID 19 and the shutdown followed by it. Primarily the package aims at making a self-reliant India and hence is called ATMA NIRBHAR BHARAT. The announcement contains many bold steps to revive the industry at large however does it really help MSME in getting good low interest loans? Are MSME Loans would be easily available in future? We have tried to find out the same here through research. The Announcement: Below listed down are only announcements made in the first tranche of the economical package which is beneficial for MSMEs. So below are the announcements made: Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs...
Practical Comparison Of Business Entity in India

Practical Comparison Of Business Entity in India

The Basics: The basic question every startup or entrepreneur faces is that which business structure or setup to go for?. Then he starts searching for the same on internet , tries to discuss with friends and family , consults some local consultant & unfortunately, everybody gives a different answer, some would say its so simple proprietorship is for single person , partnership for 2 or more partners and private limited if you want limited liability of owners , some will say see if you want funds you should only go for private limited and not other forms , well in such case everyone gives answer which they perceive as right. However this makes the confusion more strong. Hence we are here to start from clearing the basics and knowing the answer practically right not theoretically.  If asked to me I would say their is no particular universal answer to the same...