Yearn To Earn
Features
- Convenience
- Transparency & Liquidity
- Exit Load in Liquid Fund – 7 days
- No Exit Load in Overnight & Low Duration Fund
- Large Corpus mitigates Liquidity Risk
- Portfolios are disclosed on a monthly basis
- Ease of Transact: Purchase/Redemption are accepted on allBusiness Days.
- Electronic payments of funds through RTGS / NEFT are credited in 24 hours.
Sustainability
- Investors having a short-term investment horizon, ideal for surplus funds.
- As an alternative to a traditional savings/current bank account for parking of short-term surpluses.
- Investors seeking high levels of liquidity for their investments.
- Investors desiring a product with emphasis on low levels of interest rate risk.
- Using it as a conduit to transfer funds systematically to other schemes.
Illustration: 10 Lac
| PARTICULARS | AMOUNT | RATE | PRE TAX VALUE | GAIN |
|---|---|---|---|---|
| SAVING BANK A/C | Rs. 10,00,000 | 2.75% | Rs. 10,27,500 | |
| LIQUID MF | Rs. 10,00,000 | 4.00% | Rs. 10,40,000 | Rs. 12,500 |
| PARTICULARS | AMOUNT | RATE | PRE TAX VALUE | GAIN |
|---|---|---|---|---|
| SAVING BANK A/C | Rs. 10,00,000 | 1.92% | Rs. 10,19,200 | |
| LIQUID MF | Rs. 10,00,000 | 2.80% | Rs. 10,28,000 | Rs. 8,800 |
- Above calculation is on yearly basis with indicative rates as on June 2020.
- Consider Higher Tax Bracket @30% in the calculation.
Taxation
- Dividend Distribution Tax: The dividend distributed will now be taxable in the hands of investor as per slab applicable rates. For Resident Individual/HUF/ Domestic Company – 10% TDS on dividend income exceeding Rs. 5000. For NRI – 20% TDS.
GROWTH: Capital Gains Tax
| OPTION | RESIDENT INDIVIDUAL/HUF | DOMESTIC COMPANY | NRI |
|---|---|---|---|
| LTCG (MORE THAN 36 MONTHS) | 20% | 20% | Listed- 20% Unlisted – 10% |
| STCG (MORE THAN 36 MONTHS) | As per tax slab | 30% | |
Fund Performance
| Annualized % as on Apr 2020 | |||||||
|---|---|---|---|---|---|---|---|
| Overnight Funds | AUM (cr.) | 1 Day | 1 W | 2 W | 1 M | 3 M | 6 M |
| HDFC Overnight Fund | 16741 | 1.86 | 2.60 | 2.67 | 2.80 | 2.61 | 3.58 |
| ICICI Prudential Overnight Fund | 10566 | 1.82 | 2.58 | 2.67 | 2.81 | 2.61 | 3.60 |
| Kotak Overnight Fund | 6585 | 1.94 | 2.60 | 2.67 | 2.81 | 2.64 | 3.64 |
| SBI Overnight Fund | 12348 | 1.68 | 2.62 | 2.71 | 2.87 | 2.70 | 3.66 |
| Liquid Funds | AUM (cr.) | 1 W | 2 W | 1 M | 3 M | 6 M | 1 Yr |
| HDFC Liquid Fund | 110633 | 4.01 | 4.05 | 3.34 | 6.14 | 5.09 | 5.47 |
| Axis Liquid Fund | 29605 | 4.07 | 4.24 | 3.67 | 6.31 | 5.33 | 5.67 |
| ICICI Prudential Liquid Plan | 57566 | 4.23 | 4.56 | 3.91 | 6.50 | 5.33 | 5.65 |
| DSP Liquidity Fund | 10575 | 3.99 | 3.95 | 3.47 | 6.03 | 5.17 | 5.51 |
| Kotak Liquid Fund | 32360 | 4.46 | 4.70 | 3.77 | 6.36 | 5.06 | 5.45 |
| Low Duration Funds | AUM (cr.) | 1 W | 2 W | 1 M | 3 M | 6 M | 1 Yr |
| HDFC Low Duration Fund | 12615 | 17.44 | 19.87 | 10.71 | 15.25 | 8.13 | 8.06 |
| Aditya BSL Low Duration Fund | 8048 | 14.88 | 18.91 | 11.54 | 18.51 | 8.68 | 8.60 |
| IDFC Low Duration Fund | 4144 | 19.86 | 19.84 | 11.16 | 16.32 | 8.71 | 8.58 |
| Axis Treasury Advantage Fund | 4777 | 15.70 | 17.90 | 11.27 | 17.33 | 8.66 | 8.77 |
| Kotak Low Duration Fund | 4051 | 22.66 | 22.97 | 14.52 | 17.74 | 9.07 | 9.27 |
Note: Past performance of the mutual fund schemes does not guarantee similar future returns.
Disclaimer
This document is for private circulation only. Investment in Mutual Funds and Securities are subject to market risk associated with an investment in Capital and Debt market instruments. The data and information herein provided are believed to be reliable but the company does not warrant for its accuracy and completeness. The company is not guaranteeing or assuring the performance of Mutual Funds about which the report is presented. Further, the Company shall not be liable for any loss to investors from the investments made.