As investors, what we are really trying to do is to ensure that we have enough money for a goal in the future. This goal may be a comfortable retirement, children’s education or a big purchase. The risk to us, simply put, is that we will fail to achieve that goal. This may happen because of many different reasons. A practical approach, which we can all adopt, is to know what these reasons could be and what steps we can take to protect ourselves.
The grapevines are abuzz with the freebie topic post the election results in Karnataka. The opinion of the tax payer has become insignificant as the policy makers think it to be a waste of time to consult them on how they want to squander away the tax payer’s hard earned money.
Last night a proposal to amend the finance bill 2023 was announced. The long-term tax benefit for Debt, Gold and FOFs investing in foreign MFs, if they invest less than 35 percent of their assets in Indian equities, will be stripped off. Such mutual funds will now attract short-term capital gains tax regardless of holding period. These amendments will impact mutual fund investors for investments made on or after April 1, 2023. This would mean additional tax collections for the government next year onward.
Indian banks are likely to not face the same ALM (Asset Liability Mismatch) crisis that has gripped a few US banks and Credit Suisse. If you haven’t read our previous article on the main issue plaguing the western banking system (https://arunasset.com/svb-bank-collapse-whats-asset-liability-mismatch/), then we suggest you do so before going ahead with this.
Silicon Valley Bank’s failure is the second largest bank failure in U.S. history, Washington Mutual Fund being the largest in 2008.
The catastrophe was not driven by credit problems but mismatch of assets and liabilities.