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A Beginner’s Guide to ELSS Mutual Funds

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ELSS Mutual Funds

Equity linked saving schemes are diversified equity mutual funds where the fund has to invest a minimum of 80% of its total assets into equities. These funds have a lock-in period of 3 years from the investment date. So if it is an SIP, each installment would be locked in for a period of 3 years from its investment date. These funds come with a tax benefit, i.e. the investment amount is tax exempted under Section 80C within its overall limit of Rs.1.5 lakhs. Do remember that other tax saving options like National Savings Certificate (NSC), senior citizen savings scheme, tax saving fixed deposit etc. also come under section 80C.

In the budget of 2018, Long Term Capital Gains Tax (LTCG) has been introduced on equities. ELSS also now comes under this taxation purview and so the returns from equity above Rs.1 lakh in the redemption year would be taxed at 10%. So basically, not the investment amount but the returns earned would be taxed at 10%.

ELSS comes in two options, one is ‘growth’ and the other is ‘dividend’. With the introduction of LTCG tax on equities, the dividends too would now be taxed at 10%. The dividends would be tax-free in the hands of the investor but the tax would be deducted by the mutual fund house before the distribution of these dividends.

ADVANTAGES OF ELS

In comparison with all other tax saving options available under Section 80C, ELSS has the lowest lock-in period, i.e. of 3 years. This basically means that ELSS offer high liquidity. Tenure in case of PPF is 15 years, in the case of NSC, it is 5 or 10 years, and in case of tax saving fixed deposits, it is 5 years. The returns from NSC and tax saving fixed deposits are taxed according to your tax slab. Returns from PPF are completely tax-free but these offer very low returns. As of April 2018, the returns offered by PPF are 7.6% on a per annum basis. ELSS in that comparison, being a market linked product, ELSS can offer superior returns. ELSS has given returns of about 20% on a per annum basis on an average in the past 5 years. The best ELSS funds have given even better returns.

Another advantage of ELSS is that it serves as a gateway to equity investing. I.e., if you have never invested into the stock market directly or through mutual funds, ELSS could be your first try. When you invest into the stock market directly or through mutual funds other than ELSS, a slight volatility, i.e. the slightest upward or downward movement in the market could trigger you to pull out your investment which could sometimes be a wrong decision. But when you invest through ELSS, the lock-in period keeps you tied down for 3 years and you can look at the returns equity can generate for 3 years. But having said that, since ELSS are equity investments, you should stay invested into these for 5 – 7 years.

CONCLUSION

All in all, the investment amount is ELSS will not be taxed. Only, the returns that you earn will be taxed at 10% and that too if the returns go over Rs. 1 Lakh in a financial year. The Government of India has given provisions under Section 80C which the investors can use to save tax.

The introduction of LTCG tax has put the investors into a state of confusion regarding whether or not they should invest in ELSS. But in reality, even after the introduction of LTCG taxes, equity linked saving schemes (ELSS) still remain one of the most efficient and easy ways to save tax. The lock-in period is short and the returns are unmatched. ELSS is the best investment vehicle for the average investor.

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Everything You Need to Know About Beyoncé’s Collaboration with Adidas

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Last April, Beyoncé astonished the world with her latest undertaking: a partnership with Adidas. This powerful collaboration has much in store for shoe lovers and Beyoncé fans alike.

The Facts

 

Adidas announced the collaboration on April 4th this year. They revealed that Beyoncé was relaunching her athleisure line in collaboration with the company. She’s cutting ties from Ivy Park’s co-founder TopShop and its chairman Phillip Green. In 2018, Parkwood Entertainment acquired full ownership of the company, and now Beyoncé is working with Adidas to make Ivy Park a successful international line.

Adidas lovers are interested to see what Beyoncé will do. She’s spreading the Queen Bey love on a global scale, and with the help of Adidas, she has some great opportunities. Lately, she’s been showing off her Adidas sneakers, but new products will also be created for both performance and lifestyle looks in the future.

The Future

This grand announcement sparked a lot of excitement, and for good reason. With the voice of the global star and the scope of the successful athletic brand, Beyoncé calls this opportunity “a partnership of a lifetime”. Together, this new collaboration plans to support these values:

  • Creativity
  • Growth
  • Social responsibility

With two powerful influences, the company can explore and expand in new ways.

The Outcomes

As seen before with the Rihanna and Puma partnership, there can be a lot of success for Adidas. The Puma Fenty by Rihanna boosted sales for the company and was a great example of a successful celebrity collaboration. Beyoncé is known for her striking looks and fashionable sense of style. By showing off Adidas sportswear and promoting the benefits of their high-quality sneakers, Beyoncé has a chance at creating popular products.

Whether you are a Beyoncé fan or simply love shoes, look forward to what this new collaboration creates. Grab a new pair of sneakers while you wait for the exciting future.

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How can 3pl Logistics Services improve a Customer Service?

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3pl Logistics Services

3PL- in simple words means third-party logistics. So basically it implies that one intermediate company or service provider that works in between the manufacturer and the consumer, performs the tasks of transportation and warehousing is known as a 3pl logistics company. It transports the goods and products from the manufacturer at a meager price, and hence reduces the cost of moving the final product to the ultimate consumer.

It is a better option to employ the ones who are already in this specific business. People who are in this specific business know all the necessary things involved in the process of moving the goods, and they know how to deal without incurring huge losses. If a company itself tries to arrange the transportation facilities, it can cost them a fortune in doing the same by using their own resources.

The benefits of hiring the services of a third company are many, and you should know the advantages which can help you become a better company by using the minimal resources and spending the least amount of money. It also ensures greater customer satisfaction, in different aspects.

Focus on what’s important

Firstly, the significant thing is it allows the company to focus on its prime objective of manufacturing and forget about the transportation. You and your staff members won’t have worry about transporting the material if you have opted for 3pl.You can use the same time in producing quality products.

Warehousing

These service providers also have warehousing facilities, which makes it quite efficient in terms of inventory management. They supply it to the store as and when needed and till then stores the excess of products with them, without causing any degradation in the quality. It eliminates your headache of renting a warehouse and charges you as per the space you use which is comparatively lesser than the rent of the entire warehouse.

Extra services 

You have the option of providing the services which your customers wish for. If any of your customers have opted for one-day delivery, you can just instruct the logistics company to do it for you. The cost of it may vary on the distance which has to be covered in one day. You can explore the various options which the company is willing to provide.

Tracking and information 

A professional logistics company also gives the advantage of tracking your shipment. The consumer can know where his product has reached by checking the real-time location and progress in the movement. The real-time information of the product satisfies the customer as they will know when it may arrive and hence will be able to receive. It is very convenient than the local transportation services which don’t have any such additional features.

Handling and care 

The handling of the product is the top priority for 3pl logistics service, as they have professional workers doing the work. As compared to any transporting company who just want to get over with the job, these companies provide the best of services by taking care of it as their own product. Hence they are preferred more by the manufacturers so that they don’t have to incur any losses due to negligence.

It is due to these reasons that the companies preferably choose 3pl logistics company. It enhances the quality of services to customers, hence building up a better relationship between the two parties. If you are in a manufacturing business then rather than selecting just any transporting company which just picks up the goods and deliver it, you should consider these third parties logistic companies. The added advantages with lesser cost make it much more popular among the manufacturers.

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First-Time Property Buying Tips You Must Know

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Property Buying Tips

So, you have made up your mind it’s time to get your own nameplate at the entrance. Whether it’s because the news of the arrival of a new member or you want to turn your monthly rent into EMI, buying a new house is bound to bring about stability in your life. Own roofing gives you the confidence that you have done something good for your family via your hard work. However, first-time property buying experience is a nerve cracking with a lot of things to mull over. Here if you hire one of the trusted estate agents Romford, then you can significantly shrug off some sort of burden from your shoulder.

  1. Don’t Rush Things

Yes, there may be priorities at stake, but the most crucial thing a first-time buyer needs to adhere is that he/she should not rush things. Take your time to explore different localities and the property options there. Seek the advice of estate agents Romford on the location to consider based on your table. With buy a property being a once in a lifetime investment, do it wisely.

  1. Shop Around for Mortgages

The best way to get the best mortgage deal to fund your first house is to shop around. In this age of the Internet, you don’t have to step out of your house for this, you can do it ease from the comfort of your home. Compare multiple mortgage packages to pick the right one.

  1. Home Inspection

Pay great emphasis to the home inspection, it’s not just an obligatory task included in the home buying process. Instead, a thorough home inspection by a professional will help you hit upon the possible weak links of the property. They will help you know the probable expenses to incur before the move-in, such as the roofing is deteriorated.

  1. Get A Second or Third Opinion

While, impulsive buying is good for fashion, but not a great idea when investing in a property. Don’t fall prey for the interiors of the house, the estate agents Romford opinion is quite handy, as they understand the market and how it will shape in the coming years. They will look in several factors such as the public transport facility in your proposed locality.

  1. The Paper Works

The amount of documentation associated with buying a new property is a big hassle. But, buy if you have hired an estate agent to do that, then you can breathe a big sigh of relief.

The above first-time property buying tips are following. But, it is even more important to get by your side someone who has years of experience in real estate along with the market knowledge to guide you with your property buying venture.

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