Zerodha Varsity

If you haven’t paid 90% of your assessed tax by March 31st, the Govt will charge 1% interest per month on the entire tax dues starting April 1. Salaried folks might think that your employer is deducting enough TDS. But there are 2 situations where you need a closer look. ?? 1??Indian tax laws state that by March 31st, you must pay at least 90% of your ‘assessed tax’. 'Assessed tax' here means your total tax liability for the year minus TDS/TCS minus any rebates available. This applies to anyone whose tax liability exceeds ?10,000 a year. 2??Salaried, pay attention! ?? - Switched jobs? Your new employer may not have considered your previous salary for TDS - Have extra income (freelancing, rent, F&O income or capital gains from equity), on which taxes are not paid yet? TDS shortfall is more common than you think. 3??Say your salary is ?25L & tax liability is ?4.34L, but TDS deducted was just ?2L. Assessed tax= ?4.34L - ?2L=?2.34L. You shall pay 90% of that assessed tax - ?2.1L by Mar 31st. Else, when you settle your dues in July, you will have to pay extra ?9,360 as interest. ..... Paying taxes isn’t optional, but paying extra interest is! Settle your dues by March 31st to avoid interest. We’ve broken this down and provided a few handy tools to check your salary, TDS, tax dues, and assessed tax. Read it in full in our latest newsletter. Link in comments.

Bias? No bias? ??

“Money can’t buy you happiness” - the words of a wise man who found inner peace or a fool who had no bills to pay? The relationship between money and happiness has never been straightforward. We evolved during scarcity, so we seek abundance. As our income increases, we feel closer to having “enough”; we aren’t threatened by scarcity. Raj Raghunathan notes in his book, If You’re So Smart, Why Aren’t You Happy? Is money and the things that come along, the only source of your happiness? The Hedonic Treadmill - We quickly adapt to new levels of wealth, and what once seemed luxurious becomes our new normal.? This creates an endless cycle of wanting more. Time vs. Money - Wealth can buy things, but if it comes at the cost of time, relationships, and health, it may not increase happiness. We often compare our wealth to others, and no matter how much we earn, there will always be someone richer. This can lead to dissatisfaction. So, is money and happiness co-related? Studies show people derive more long-term happiness from experiences (travel, hobbies, social events) than material things. Having control over your time and being free from financial stress contributes more to happiness than an arbitrary income level. Strong social connections and meaningful work bring lasting fulfillment, more than a high salary alone. But, let’s be real; money may not directly buy happiness, but it does buy choices. It buys freedom from stressing over rent, medical bills, and last-minute “let’s split the bill” moments. It buys time, so you’re not trading every hour for a paycheck. But beyond a point, does having more make you happier? Or do we just get used to it and start chasing the next thing? We’ve seen both sides: having too little and having enough and if there’s one thing we’ve learned, it’s this - Money definitely makes life easier, but it’s what you do with it that counts. So, here’s the verdict - Money won’t magically make you happy, but the lack of it can surely make you miserable. Ultimately, money is a tool, not the goal. True wealth is the ability to live life on your terms. TLDR - Subscribe to our newsletter for more such unconventional topics on money, wealth and more :)? #moneymindset #financialfreedom #happinessvswealth

?? Big update on DigiLocker You can soon view all your financial holdings in a single DigiLocker a/c. Key feature: DigiLocker will automatically notify nominees upon the user's demise. Nominees can access all holdings in one place & approach AMCs/brokers to claim assets.?? 1??DigiLocker, a digital wallet by the Govt of India, lets you store & access e-docs like Aadhaar, PAN, DL, birth/death certificates, insurance, bank & NPS statements - anytime, anywhere. Now, you can also view MF folios & demat statements. These e-docs are valid as originals. 2??The idea of SEBI & the Govt is to reduce unclaimed assets. DigiLocker lets you add nominees who can access your financial asset details after your demise. You must provide their mobile number & email when adding them. On the user's demise, DigiLocker notifies the nominee. 3??Steps to Action - DigiLocker retrieves info from the death register or KYC registration agencies. - It automatically notifies nominees via SMS & email. - Nominees can verify their identity and access the deceased’s financial information through their DigiLocker account. 4??If the DigiLocker nominee is also the nominee in the investor’s account/folio, they can directly initiate the transmission process. Otherwise, they can share the information with the joint holder, nominee, or legal heir to let them start the transmission process. 5??The DigiLocker nominee cannot replace the nominee you have set for your mutual fund folios or demat account. See the example as stated by SEBI in the image ?? 6??What happens in the case of a joint account? The surviving joint holder will have the right over the deceased user’s assets. The DigiLocker nominee is expected to share the information with the joint holder or legal heir. ..... This SEBI circular will come into effect from April 01, 2025. Finally, we hope it’s clear that a nominee is not the owner of the assets but only a facilitator for their transfer. Nomination simply ensures a smooth transmission. The final ownership is determined by the will or, in its absence, by succession laws.

It's that time of the year again! Yes, that time of the year when you run to your CA friend or auditor. But this year, we have someone special to help you all! The choice between the old and new tax regimes may be easy, but the changing slab rates, updates on capital gains taxes, and no tax up to 12 Lakh also confused us. So, we are hosting a free Varsity Live session on taxation on March 23rd. Link in comments.

?? China is in the spotlight. Global investors are rushing in, & so are some Indian investors. Chinese ETFs in India are trading at a premium over their NAV; at one point at a 20-26% premium. Why? Here's a breakdown. Eg: Nippon India Hang Seng ETF traded price vs NAV as of Mar 18, 2025. (see the image) 1??China's market was in the doghouse post-2021, while global markets rebounded. Now, it's showing signs of rally. 1-???????? ????????????: Hang Seng Tech Index: 70% Hang Seng: 48% Nifty 50: 3.5% MSCI All-Country World Equity: 9% This rally is happening despite the new trade war. 2??China ETFs in India: ?? Nippon India Hang Seng Bees tracks the Hang Seng Index, offering broad exposure to China’s largest companies across sectors. ?? Mirae Asset Hang Seng Tech ETF tracks the Hang Seng Tech Total Return Index, focusing on tech-driven firms listed in Hong Kong. 3??RBI limits Indian MFs from buying foreign stocks/ETFs. So, there’s a higher demand for existing China-based ETF units on the exchange. Hence, prices soared, much higher than the underlying index. 4?? Paying a premium on ETFs hurts your returns. Why? Eventually, ETF prices adjust to NAV when demand cools. Eg: if you pay a 20% premium for an ETF now and the market rises by 20%, your net return will be zero—assuming the ETF price eventually aligns with its underlying price. 5?? Want China exposure without ETF premiums? Consider fund of funds: ?? Edelweiss MF's FoF investing in JP Morgan Funds—Greater China Fund ?? Axis MF's FoF investing in Schroder International Selection Fund Greater China. Their NAVs reflect the true price of underlying assets. ???????????? ????????: Always compare ETF prices with iNAV (indicative NAV)before buying or selling. You can find iNAV on AMC websites, the NSE, or broker platforms. iNAVs of equity ETFs are usually updated in real-time. However, for international ETFs, there is no set frequency, and they are updated as new data arrives.

Should you buy a stock that has fallen 30% in one day?

After becoming SEBI Chairperson, Tuhin Kanta Pandey's first public speech was on ‘India’s Growth Story: Opportunities & Prospects’. When a new leader takes charge, we look for their intent, vision & style. Here's what he said at the Moneycontrol-CNBC Global Wealth Summit. ?? 1?????????????????????? Tuhin Kanta Pandey is a 1987 batch IAS officer. In his 30+ yrs of experience, he served as Union Finance & Revenue Secretary and was with DIPAM & NITI Aayog. He holds a Master’s in Economics from Punjab University & an MBA from the University of Birmingham (UK). 2????????????? ???? ?????????????? Quoting Charles Dicken, he said, “It was the best of times, it was the worst of times.” Markets will have ups & downs, but India's growth remains strong. With policy, reforms & high investor participation, he believes India to be a global investment hub in the 21st century. 3???????? & ?????? Pandey believes both domestic and foreign capital are key to market momentum. He thinks long-term foreign investments can support infrastructure, innovation, and entrepreneurship. He said SEBI is conscious of addressing the difficulties of FPIs and AIFs. 4?????????????????? ?????????????????? "To ensure that investors are not lost in the labyrinth, investor awareness and education are crucial," he said. Pandey believes mutual funds & pension funds have strengthened domestic ownership, making Indian markets more resilient. 5???????????????? We have seen capital markets undergo significant regulatory changes in the last few years. About that, he said: "All reforms need not be Big Bang. Many times, small reforms cumulatively are more effective. SEBI will use the right mix of both to achieve its objectives." ..... Overall, Pandey praises India’s growth on multiple fronts, especially the surge in investor participation. He highlighted that SEBI's investor base grew from 49M in 2020 to 136M today, with mutual fund investors more than doubling to 53M in five years. For sustainable growth, he stresses the need for access to funding through capital markets - both equity and debt - while highlighting REITs, INVITs, and municipal bonds as key drivers of infrastructure development.

IndusInd Bank shares dropped 27% today. It noted some discrepancies that could hit its net worth by 2.35%. How? Banks typically hedge their overnight derivative positions. If a bank has to make USD payments tomorrow, it would hedge the position today to avoid INR losses at the time of the payment. Sometimes, they don’t find a counterparty to hedge such positions. For example, if a bank receives a 5-yr Yen deposit, it might not find a counterparty to hedge this exposure. The forex desk could ask its own trading desk to enter the trade as a counterparty. However, a September 23 circular from the RBI asked banks to stop trading with their own trading desks from April 1, 2024. IndusInd followed the guidelines and began unwinding all the trades it had entered with its own trading desk over the past 5-7 years. In doing so, the bank discovered a discrepancy - the forex desk and the trading desk were using different accounting methods to report their P&L on the same transaction. The bank revalued those transactions, resulting in a Rs.2100 crore impact on its net worth. From a market cap of 72K crores, IndusInd fell to 52K crores today. DIIs are the worst hit. By the way, about half of all promoter holdings are pledged. The promoters might have to pledge more or make repayments. Either way, this could add more pressure on the promoters. The bank is also grappling with leadership challenges. Last week, the RBI approved IndusInd Bank’s CEO, Sumanth Kathpalia’s tenure by just one year instead of the regular three years. Kathpalia said that the RBI might not be very happy with his way of running the bank. Only recently, in January 2025, did Gobind Jain depart as its CFO. Perhaps they had sensed some accounting inconsistencies by then. Bank officials are inclined to take the full hit on its P&L in March 2025. Very quickly, many brokerages have downgraded Indusind’s shares. Overall, the banking sector is down 0.75% today, which is not a lot compared to the freefall IndusInd witnessed today. Now that the stock is down so much, should you consider adding it to your portfolio? The full impact of the discrepancies is yet to be known. The bank has appointed external auditors to assess the complete loss. So, it might be too soon to make a call.

Besides gold, the U.S. Treasury FoF delivered more than 10% returns in the past year amidst equity markets trending south. Btw, we're not fans of tracking 1-year returns, but this is interesting. As it is a less discussed fund, we thought of doing a deep dive. ?? 1??First, what are US Treasury ETFs? A US Treasury ETF is a fund that holds US Treasury bonds, which are govt-backed debt securities. These bonds come in different maturities of up to 30 years. They are usually considered safe investments due to the backing of the US government. 2??FoFs in India invest in US Treasury ETFs. Passive ones like Bandhan & Aditya Birla MFs invest in ETFs with set maturities (1-3 yrs/3-10 yrs). DSP & Axis actively pick ETFs of diff maturities based on market conditions. These funds closed inflows now due to RBI restrictions. 3??How these debt-based funds gave 10% returns last year 2 key factors: - Higher US Treasury yields - Rupee depreciation. Post-2020, inflation drove US yields and it was at 4.2%-5%. Meanwhile, the rupee fell 5.4% over the year. Together, these factors fueled strong returns. 4??Let’s look at historical trends ?? Yield: US Treasury yields historically ranged between 1-1.6% ?? Exchange rate: Rupee depreciation has averaged ~3% pa over 30 years. So, long-term returns from these funds can be around: yield (~2%) + Rupee depreciation (~3%) = ~5% 5??Risks? Just like a bond fund, the risks are: ?? Credit risk – Low, as US Treasuries are considered safe. ?? Interest rate risk – Higher for longer-maturity bonds, as bond prices fluctuate with rate changes. ?? Liquidity risk – Low, since you’re investing via the FoF. Who should invest? ? For diversification – Many investors have exposure to foreign equities. If you want further diversification into safe global fixed-income assets, US Treasuries can an option. ? Tactical investors – You may make short-term tactical bets if you can track yields and exchange rate movements. ? Goal-based investors – If you’re investing abroad to meet financial goals, shifting from equity to debt (like these funds) as you near your goal can help reduce risk.