Institutions play an important role in stock prices, I’m aware of that and how it works. All I need to do is find out who is buying/selling what and when. Is there a website or another source where I can find that information?
We know that by raising interest rates, you make the cost of borrowed money more expensive. Business thrive on borrowed money, and doesn’t it follow that, if you raised interest rates, this will make it harder for business to expand?
We understand what are fixed deposit what many investors are not aware of is liquid fund
Well Liquid fund as the name suggests are Mutual Fund Schemes keep our money liquid [almost cash]
These liquid funds are debt funds that work in money market instruments [It is a market for short term borrowing and lending. Overnight, two day, ten day, a month paper is what is bought and sold.]
For ease of understanding we will compare two products in each category.
Two things come in to play while comparing the two product categories:
1. Return on Investments
2. Tax Treatment
1. Return on Investments
Fixed Deposit
A Fixed Deposit will give a known rate of interest for a known period. So say a 61 – 90 days fixed deposit in HDFC Bank will fetch you a return of 5.5% for a senior citizen.
Liquid Fund
A Liquid Fund the rate of return is not known in advance instead it fluctuates based on the NAV .However the risk is minimal and the typical return for a decent Liquid fund would range from 5-7% .For example the DSP ML Liquid Plus Regular Fund has given one year return of 8.67%
2. Tax Treatment
Fixed Deposit
The interest on Fixed deposit is taxed by adding it to the assesses income .Hence if you belong to the highest tax bracket you will be taxed at 30%, thus wiping out a huge chunk of return.
Liquid Fund
A Liquid Fund has an advantage here if you opt for a dividend option the dividend is tax free in the hands of the investor thats right.NO TAX for you. In some schemes like the HDFC AMCs Treasury plan you get daily dividend on the investment made thus giving you the freedom to remove money on any day you need it.
Conclusion:
While the fixed deposit scores in terms of reliability of return .Liquid fund scores on the liquidity, rate of return and tax treatment. Presha Investments recommends liquid funds for those who are income tax assesses & need to park funds for shorter tenures
I am buying my parent’s house and we are selling our house to my wife’s brother. I have heard there are some tax exemptions when making a sale to a relative. Also our realtor has said that for $2500 they can handle all the paperwork, since they won’t be getting a commission on either sale. Just wondering if the work would be worth $2500.
Thanks