Overview

When the IPO shares are allotted to you, the capital gains are taxed once you sell them. These taxes on the capital gains can be short-term or long-term depending on the time horizon you have kept the IPOs.

While there is no full proof winning strategy, however for an excellent quality stock the listing day gains can raise up to 70% to 80%. You can stay in the stock for a long time investment horizon if you see the potential in the company.

An IPO can be oversubscribed or undersubscribed, depending on the number of subscriptions. It has been generally noted that popular stocks are subscribed to much more than available stocks and many investor fail to get any shares. For example: IPO was subscribed over 112 times, making it the most successful share sale.

To set-up a mutual fund, a Trust is established under the Indian Trust Act by the sponsor. The trustees work for the benefit of the investors and safeguard them for any unfair practices. To manage this fund, the trust appoints an AMC.

NAV or Net Asset Value is the market value of the mutual fund security which is calculated by dividing the net asset value of the scheme with the number of units outstanding. As an investor, you will be buying NAV to invest in the mutual fund. What all documents are required? The following documents are required to participate in the mutual fund for the first time: Proof of identity like Pan card. Proof of Address like UID, voter ID, passport, etc. Passport size photograph.

While choosing the mutual fund there are various factors to consider to match your investment objectives. This might include the size of the fund, diversification of the fund, requirement of investment, and the level of security.

The insurance process begins with filling your details correctly in the proposal form. It is mandatory to ensure that all the information is correctly recorded. If any further changes occur, it can be easily affected by an endorsement issued by the insurer.

In case of accident or theft, register a claim immediately. You should also report to the police in case of theft or third party injury or death or property damage.

The insurance policy is due to be renewed every year and is recommended to do the same before the expiry date to avoid penalty.

What is the difference between stock and equity

These are the low-risk type of asset class that offers a stream of return on a pre-defined schedule. The rate of return offered on these investments are generally fixed. They are included in the portfolio to offer stability and regular income to the investor. Because of this feature, it is popular among risk-averse investors like the retired public.

Equity securities are the type of asset class that invests in the stocks or shares of a company. These are riskier due to fluctuating prices but offer a higher return. However, fixed-income securities are low-risk products that invest in bank deposits, corporate FDs, debt mutual funds, etc. They predefine the interest rate to be paid over the time horizon.

The property on which you are securing the loan is generally preferred. It is important, however, on your part to ensure any existing mortgage or loan or litigation which can affect the title of the property.

Under Income Tax 1961, you are eligible for tax benefits on the principal and interest components of your home loan.

The minute you decide to purchase or construct a house, you can apply for the home loan.