INTELLECTUAL TRADING

  While choosing the right investment option most suited to meet your short-term investment need most of you tend to invest in Bank FD or savings account. However, there are other short-term investment avenues which you can and should explore for your short-term investments. Arbitrage funds and liquid funds are two such investment options which can be considered to meet your short-term investment needs. Arbitrage funds These are mutual fund schemes which leverage on the price differences in two different markets and thereby earn profits. As arbitrage funds are involved in simultaneous buying and selling of shares and making profits from market inefficiencies, they are considered to be low-risk investments and a safe option to park funds. The returns generated by these funds depend on the volatility of the underlying asset.  As these funds primarily invest in equities, they are categorized as equity mutual funds and taxed like any other equity mutual fund. Liquid funds Liquid funds, on

  A lot of beginners to investing have this question in mind. This is because older generations, especially those who saved their earnings before the 1990s, heavily relied on safe modes of investments such as bank deposits or provident fund deposits to save their money and lessen their tax burden at the same time. However, since then the returns seen in the equities markets have been massive, and have provided investors with opportunities such as Equity-linked Savings Schemes (ELSS) to invest for a financial goal their money through the stock market and cut tax payments. However, safe methods such as PPF still exist. We will investigate which mode of tax-saving investment is better for you.  ELSS investments rely on stocks as the preferred asset to invest in, while PPF relies on bonds.This makes PPF a lower-risk investment compared to ELSS. Both these instruments offer tax rebates for up to INR 1.5 lakh under section 80C of the Income Tax Act.  ELSS funds are great for long-term invest