Prajna Capital - An Investment Guide

It’s important to consider both qualitative & quantitative aspects when it comes to assessing the health of your bank. THIS is a typical nightmare sequence these days. You see an endless line of people spilling out of the bank, anxiously withdrawing their deposits and carrying money away in bags and suitcases. In a fit of worry, you join the line. But when you reach the front, the cash teller tells you they have stopped dispensing cash. In shock, you wake up, thankfully to realise that it was only a dream. There are numerous rumours that are going around about whether Bank A or Bank B is on a shaky ground. You’re wondering if you’re making the biggest mistake by not taking your money out. But before you take any hasty step, remember that you need to base your decision on something other than rumour. While this may be slightly tedious, HEALTH BAROMETER When it comes to assessing the health of a bank, it’s important that you take both qualitative and quantitative aspects into a...

The three options available in mutual fund schemes to help you choose one. Most mutual funds offer an option to investors to either receive the dividends or to have it reinvested in the fund. This is an interesting choice that investors have to make while making investments in mutual funds. The investor has to decide whether he wants to receive the amount of income earned in the form of dividends or to accumulate the gains through the growth option. The option of dividend reinvestment can be used favorably by investors depending on their specific needs. There are three options available for an investor: • Dividend option • Growth option • Dividend reinvestment option Dividend option Under the dividend option with a payout facility, the investor receives regular income in the form of dividends as and when the fund declares dividends. In case the investor opts to take dividends, he gets a current income. Also, he gets tax benefits on such a payout. As per the current income tax rules, ...