Latest Newsletter April 2021

1. VOLATILITY WAS THE KEY
THING IN MARCH - PAGE #
02
DIVIDEND INCOME OF FY
20-21 WILL BE ADDED IN
YOUR SLAB - PAGE # 07
INSPIRING CASE STORY OF
KIRAN- PAGE # 05
Sectoral exposure is a very High Risk method of investing. Still,
experts believe that this one sector is currently an exception -
Technology. Due to recent rise in US Bond yields , dollor gained
strength and consequently these technology stocks also saw a robust
rally.
Historically, if you see the chart, technology funds or technology
group of stocks have never dissappointed investors. Last 10 years
average from the technology category of funds, has been much better
than many other equity funds.
In this issue of our newsletter, we are going to drill upon the historic
performance of technology sector, and will try to collect various
experts view to decide the future investment strategy in this sector.
Besides this, we have also included some inspiring case story of 'Good
Investing' and included a special Gyan section on 'Tax treatments in
case of MF Dividends and MF SWP etc'. Enjoy the reading .
INVESTMENT KNOWLEDGE CENTER
TABLE OF CONTENTS
Informative & Educative Discussion on Investments
Data is the new 'OIL'
Kartik Pradip Dadia, Aditya Finoptions
MARCH 2021
www.adityafinoptions.wealthmagic.in PAGE 1

2. First of all, let me wish you from my side and behalf of all
my team members - a very Happy Holi !
The month of March was quite colourful for the Equity
Market. Both Nifty and Sensex saw high volatility in last 30
days - NIFTY , which was 14,761 on 1st March 2021, closed at
14,761 on 30th March 2021 - almost no change !
On a higher side, NIFTY touched
15,245 and on the lower side it saw
14,324 . This clearly means that
traders were either not sure about the
valuations or there was surely a buyer
who neutralised the seller's pressure.
The Chart below, shows the status of
all the Equity categories in terms of
their 1 Yr, 3 Yrs, 5 Yrs and 10 Yrs. It is
really important to note here - "
Technology Sector has been the out
performer in each column , like- 106%
in last 1 Year and the average ROI of
16.81% p.a in last 10 Years
"Volatility is a symptom that people have no idea of
the underlying value" - Jeremy Grantham
MARCH 2021
Month of March was quite
colourful for the Equity
Market...
PAGE 2
In this issue, we are going to discuss
more on this special sector -
Technology Sector. We will drill upon
the best investment opportunities
available udner this sector , and also
try to understand the experts view on
this
www.adityafinoptions.wealthmagic.in

3. COVID has changed the whole landscape of this
business world. Data has become a very essential
raw material for every business, whether it is a
service industry , a manufacturing industry or
anything else.
Whole world realised the huge advantage and cost
saving factor of technology usage. The expensive
Seminars have now been converted into low cost
Webinars, costly management meetings have now
shifted on easy to join and more effective web
meetings, scattered CRM has now been converted to
more powerful centralised CRM tools.
This is where we find this mega rush among every
big or small organisations to go Digital. Almost 75%
of the business communication and transactions
have been shifted from Physical to Digital. A recent
study says that , India's top 50 technology firms are
over booked with their corporate orders and there
are more than 1000 new strat ups in the pipe line,
where technology is the key.
"It has become appallingly obvious that our technology
has exceeded our humanity." - Albert Einstein
MARCH 2021
Chapter 1 : Data is the new 'OIL'
PAGE 3
In this issue, we are going to discuss more on this
special sector - Technology Sector. We will drill
upon the best investment opportunities available
udner this sector , and also try to understand the
experts view on this
The best way to capture the wealth building
opportunity through this special sector is through -
Mutual Funds sectoral schemes - Technology Funds.
Given below is the list of all technology Schemes
available under the Mutual Fund category
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4. ADITYA FINOPTIONS
www.adityafinoptions.wealthmagic.in
M E E T U S O R C O N T A C T U S F O R I N V E S T M E N T H E L P S
ABOUT US
An AMFI Registered MF Distributor
We are an AMFI registered MF Distributor who provides the
seamless investment platform to all the MF investors; we also
provide the complete hand holding, incidental advice and
investment motivation to the aspiring investors , whenever
required.
We also provide referral services and transactional support in
other financial products like- Insurance, Taxation etc
Visit us online at : www.adityafinoptions.wealthmagic.in or call
us freely to know more
Facebook/Aditya-Finoptions-
701194019915605
FOLLOW US :
+91-98253-96979
CALL US :
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E MAIL US :
PAGE 4

5. This is a nice inspiring story of 'Kiran' who is a housewife'
and is a smart saver in all sense. At her age of 51 , she is a
proud mother of two Kids who are both working and settled
in their life.
Kiran's husband , Madhur is a lecturer in some private
college, and is quite lazy in terms of Investment and
Financial planning. Contrary to it, Kiran is a smart saver !
She always identifies and grabs the area of savings, which
she would immediately invest in some schemes.
Today we are going to share one similar act of Kiran,
wherein she identified a unique leakage point in her
household expenses, and fixed it with her disciplined effort.
"The area was 'Mediclaim Premium"
When Kiran and Madhur got their first baby, in the year
1995, they decided to buy a Mediclaim Policy to keep the
family protected from any unseen medical expenses. Since
Madhur was in the beginning of his career, he would hardly
spare Rs 250/- per month towards this policy. They bought a
policy of United India Insurance which offered Rs 1 Lacs
floating cover on hospitalisation of any family member.
After 4 years of running the policy, Madhu
further increased the coverage to Rs 2.5 Lacs
and start paying Rs 350/- per month towards
the policy
That was the time when 'Kiran ' realised that
by-way of Mediclaim she is just getting a
'Kitty ' of Rs 2.5 lacs which can be used in
the case of emergency. As a smart saver,
she planned to create her own 'Medical
Kitty' at certain stage of her life. so that she
should not pay any premium for the same.
She called me at her home in the
year 1999 and asked me to
suggest a Mutual Fund Scheme,
to open a SIP (Systematic
Investment Plan). She wanted to
replace her rented 'Medical Kitty'
with her own funds
And that's where the story starts... contd
"Mediclaim is nothing but a
fund Kitty, for which you pay
rent" - Savings Experts
MARCH 2021
Chapter 2 : Case Story
"How Kiran replaced her
Mediclaim with a BAF ( Balanced
Advantage Fund) ?
PAGE 5
www.adityafinoptions.wealthmagic.in

6. First of all, I salute the Financial Desire of Kiran, who
identified this unique but very important aspect of savings.
Today, after 22 Years, Kiran has a medical Kitty of around
Rs 26 Lacs and she do not pay any rent for it. Now she is
planning to shift this fund to a Hybrid Scheme to preserve
the Gains and create a cash flow for the family. Isn't it
smart ? So, what is the investment learning in this
story ?
That, provide equal premium to your MF SIP
, as you are providing to your Mediclaim
policy. This extra premium allocation by way
of SIP, will get you a descent Kitty over a
period of time, to take care of all your
emergency expenses.
Contact us freely to set-up this
amazing SIP based Kitty creation
target. Do not hesitate or wait for
a large sum, you can start your
investments with as low as Rs
1000/- per month
E mail us or Call us to book an
appointment for such discussion ( Refer
Page number : 04 for details)
MARCH 2021
How Kiran Replaced her rented
Kitty with her own Kitty?
PAGE 6
Kiran always knew that the medical cover of Rs 2 Lacs is a
very small amount, and in case of any bigger medical issue,
they would anyways, require additional funds . Still, this 2
Lacs of emergency fund gave her some sort of mental peace.
After talking to her on various Equity Schemes and their
Risk Reward propositions, she sketched a plan as given
below :
- Invest Rs 500/- per month in a high Risk Equity SIP
- Transfer the funds plus accumulation in this SIP to a
safer Balanced Fund, after 20 Years
- She also planned to Top it up with Rs 1000/- per month,
whenever she could afford it
.
Point to be noted here - Kiran
stopped her Mediclaim premium ,
when she crossed the amount of Rs
5 lacs in her SIP kitty. At an
average she invested RS 1000/- per
month for 20 years in this Equity
Mutual Fund, to reach Rs 26 lacs
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7. All Dividends received by you, from 1st April 2020,
will be added to your Income and will be taxed as per
your Income Slab. This means if your total Income
is under 30% slab and you get a dividend of Rs 1 Lacs
from any mutual fund scheme, you will have to pay
tax of Rs 30000/- on such Dividend.
So what has changed ?
Earlier , the Dividend Income was 100% tax free in
the hand of investors; of course there were some
fixed rate of Taxes supposed to be paid by the
companies announcing Dividend. As per new rule
effective from 1st April 2020, companies will not
have to pay any taxes but the receiver will be taxed
on such Income as per their Slab.
What are the deductions and exemptions ?
Upto Rs 5000/- of dividend every year is exempted
from tax and everything after that will be added to
your Income. As far as deductions are concerned,
one can deduct the interest Income of Personal
Loan, LAS etc - maximum 20% of the dividend
received
MARCH 2021
Chapter 3 : Tax Treatment of Dividends in MF
PAGE 7
What is suggested for retired Investors ?
Senior citizens who were dependent on the monthly
or quarterly Dividends from their Equity Hybrid
schemes, will find it costly if they are in slab of 20%
or 30%.
Hence such investors are suggested to switch their
Dividend plan to Growth plans and opt for SWP (
Systematic Withdrawal Plan) instead of Dividend
Plan . For all such people who anticipate the total
dividend Income to fall under 10% slab or lower , can
still continue to be under Dividend Plan.
What is SWP ( Systematic Withdrawal Plan) ?
SWP is a smart methiod of withdrawing your
Incoem from your investments in Mutual Funds.
You can set a default withdrawal limit , like- Rs 650
per lacs opr Rs 700 per lacs in your Asset Allocation
Funds or Hybrid Funds, to manage your cash flow
requirements, and let teh fund grow at its own pace.
Over a period of time, you will find the scheme
having enough capital appreciation despite your
regular withdrawals.

8. What is the Tax rule in SWP ?
In Mutual Fund the Income Tax rule applies as per FIFO ( First in First Out Policy) . This means that every
withdrawal happening in your fund will have a Cost component and a Profit/Loss Component. Say example
, there is a fund which grew by 10% and you withdraw Rs 10000 from it; in such case your gain in this
withdarwal will be approximately Rs 1000/- and Rs 9000/- will be your cost component. So you will be taxed
on Rs 1000/- only and not on Rs 10000/-
Will the same rule apply in Equity and Debt Funds ?
FIFO rule will apply in both Debt and Equity funds. You just need to understand the taxation difference on
the gain portion.
In Equity Funds, if such gain are generated < 365 Days then you will have to pay 15% flat under special
Tax segment. And if such gain are generated > 365 Days then you will have to pay 10% flat on such gain (
No indexation adjustment is allowed).
n Debt Funds, if such gain are generated < 3 Years then it will get added to your Income and will have to
pay Taxes as per your Slab. And if such gain are generated > 3 Years then you will have to pay 20% tax
after making adjsutment of Indexations
MARCH 2021
PAGE 8
Looking for more details under
Taxation ?
+91-98253-96979

9. MARCH 2021
Chapter 4 : Key Market Indicators

10. MARCH 2021
TOP MF CATEGORY WISE PERFORMANCE

11. Q.What is the effective date of the new tax rule on
dividend incomes?
A. As explained in Chapter 3 of this issue, dividend
income will get added to your general income slab.
The effective date for this rule is 1st April,2020.
Q. I am a retired person and want to create a
monthly cash flow from my investments. Which
scheme should I choose and what option is the
best - dividend or SWP?
A. For a retired person two things are very
important - Capital Protection and Regular Cash
Flow. This combination can only be achieved by
way of smart investing through dynamic asset
allocation fund, generally called as Balanced
Advantage Fund. Opting for SWP under such
balanced advantage funds can be a good choice.
Q. I want to create a medical kitty of Rs. 20 lakhs
in next twenty years. How much should I start
investing in a good SIP, to achieve this target?
MARCH 2021
PAGE 9
A. Rs. 1500 per month, at an assumed rate of 15% per
annum will easily tak you to the target of 20 lakhs
in 20 years. The key question here is - Which
scheme to be chosen? Consult us to make your
correct choice according to the most appropriate risk
suitability.
Q. Investing in IPO (Initial Public Offer) is good or
bad?
A. As a financial product distributor, I do not rate
any financial product on the scale of good or bad,
rather I rate them on the scale of low risk to high
risk. So, it is not bad to invest in an IPO, however, it
can be a trap at times like, most of the promoters
will charge all the premium and profits in the cost of
shares and there is hardly anything left for the
investor. Still, take your own decision while
investing in an IPO because my view may vary from
case to case basis.

12. Mutual Fund investments are subject to market risks,
read all scheme related documents carefully. The NAVs
of the schemes may go up or down depending upon the
factors and forces affecting the securities market
including the fluctuations in the interest rates. The
past performance of the mutual funds is not necessarily
indicative of future performance of the schemes. The
Mutual Fund is not guaranteeing or assuring any
dividend under any of the schemes and the same is
subject to the availability and adequacy of distributable
surplus. Investors are requested to review the
prospectus carefully and obtain expert professional
advice with regard to specific legal, tax and financial
implications of the investment/participation in the
scheme.
While all efforts have been taken to make this
newsletter as authentic as possible, please refer to the
print versions, notified Gazette copies of
Acts/Rules/Regulations for authentic version or for use
before any authority. We will not be responsible for any
loss to any person/entity caused by any short-coming,
defect or inaccuracy inadvertently or otherwise copied
in this newsletter from external sources.
MARCH 2021
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