NPS scheme for all

National pension scheme ( NPS)  is the least complicated, simplest and lowest cost pension system. Here are some  reasons why we recommend it:


1. Any individual can enroll in the NPS and plan for his retirement

2. NPS investments are eligible for tax deductions of up to Rs 1 lakh a year under Section 80C

3. NPS creates the discipline of saving regularly and systematically building wealth

4. NPS does not guarantee returns %

5. NPS offers liquidity like early withdrawals, subject to conditions

6. NPS offers different fund options that give different exposure to equity instruments, corporate debt, fixed income instruments and government securities

7. Investors can choose from different investment options under the NPS that go from risky to moderate to safe, depending on their risk profile

8. For investors who are unsure, the NPS has a default option where the equity allocation is decided as per the investor’s age

9. Investing in the NPS can be done on a monthly or quarterly basis

10. Investors can switch between funds and fund managers under the NPS, if they’re not satisfied with the performance of their investments


Happy Investing !


Epic Learning Team

Double Bottom in Crude oil

Crude oil has recently formed a double bottom formation on the daily charts and the counter is witnessing a buying at the bottom of the pattern, the counter could see some strength in the coming days  if the bottom is not breached, refer the chart below

crude dub btm

Epic Research Learning Centre : NIFTY Head and shoulder-in the making ?

Nifty has broken down from the recent double top pattern on ad around 7810 levels on the daily charts and corrected till the 50DMA, if taken a close look we can find an abberated head and shoulder kind of pattern in the marking on the chart but it is still incomplete, lets wait and see whether the pattern gets completed and the neckline is broken on the downside, refer the chart below


nifty hns

Decoding Debt investment post budget

This Budget the Finance minister has eradicated the Tax arbitrage available between the Debt mutual funds and Fixed deposit per se which gave an indexation benefit to investors investing for more than 1 year under the long term capital gain


Pre budget scenario 

If you had invested in any Debt mutual fund for more than 365 days you need to pay tax via any of the following two formats

a. Flat 10% without indexation

b. 20% post indexation benefit

For a fixed deposit the income is added in the income of the Tax payer and charged according to the tax slab of the Tax payer, which is very high for the higher income tax slab of 30%

So pre budget if you had invested in a Debt Mutual Fund and assuming inflation of 7% and your return as 10% via the Debt mutual fund, you would have to pay 20% on 3% return ( inflation adjusted) whereas the FD investor had to pay 30% tax on the complete return of his FD investment


Post Budget the FM has increased the long term capital gain definition as 3 years for Debt mutual funds, leaving everything else as intact.


Also giving some relief to all those who had redeemed before 10th july ( budget day) from this provision and the same 1 year rule for the long term capital gain for them


Well, as an investor it would not make much of a difference for those investing for more than 3 years in the Debt Mutual funds as the Debt funds will have the same indexation benefit and tend to outperform the traditional FD due to much active portfolio management