Model portfolio - ETF
InvestmentTalk ETF #01
Model portfolio - ETF
ETF – Investing in liquidity ETF, where investors can buy and sell easily any day.it was a less risky instrument compared to direct equity investment. ETF – model portfolio – will invest in a basket of 3 to 6 ETF and cash allocation in liquid Bess or SIP in 3 to 6 ETF every week or month.
Kindly refer to the below Investmenttalk invested ETF with allocation details
All above ETFs were combined in a small case, investors can click on the below link and buy directly InvestmentTalk ETF basket. It was very less amount for 1 lot - Rs 300 to 500. as per market volatility. Investor can diversify their portfolio and also invest in the Indian market as well as the US market.
India market:
4 ETFs were combined - Nifty financials index, Nifty alpha 50 index, Nifty midcap 100, Nifty IT index.
US market:
2 ETFs were combined - FANG index, S&P 500 top 50 index.
All the above ETFs will have good diversification to technology companies, financial companies, and momentum stocks in nifty top 300 companies, midcap stocks and US technology companies, US top 50 companies.
Taxability of earnings:
Capital gains
If the ETF (equity - India and US) is sold within 1 year from the date of investment, the entire amount of gain is added to the investors' income and taxed.
ETF (equity - India and US) - there is a 15% tax on short-term capital gains within 1 year and a 10% tax on long-term capital gains. (> 1 years and overall returns from all assets from capital market instruments exceeds 1 lakhs) .
If the ETF (Gold, Debt) are sold after 3 years from the date of investment, gains are taxed at the rate of 20% after providing the benefit of inflation indexation.
If the ETF (Gold, Debt) is sold within 3 years from the date of investment, the entire amount of gain is added to the investors' income and taxed according to the applicable slab rate.
No tax is to be paid as long as you continue to hold the ETF.
Dividends
Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.
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