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How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
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Labor Reform 2020 | 4 New Labor Laws Combined With The Old 29 Labor Laws

Labor Reform 2020 | 4 new labor laws combined with the old 29 labor laws

 


Ever since the Narendra Modi government came, it has been known for shocking decisions. Once again, he has surprised people with jobs. In fact, the Ministry of Labour & Employment at the Center has made some major changes in the rules of salary, which will reduce your take-home salary.

 

So far there were 29 labor laws in India for employed people. The central government has made changes to reduce their number from 29 to 4. These are the laws - occupational safety law, health and working conditions, industrial relations, and social security law. From April 1, 2021, new laws will come into force and their effect on a salary of May 1, 2021, will also start showing.

 

Let's first, understand the salary structure

 

Employers are well-versed with two words, first CTC ie Cost to Company and second take home salary, also known as in-hand salary.

 

1. CTC: CTC means Cost to Company is the total expenses of the company in terms of your work; it is the total salary of an employee. This salary not only includes the basic salary of an employee but also house allowance, medical allowance, travel allowance, food allowance, and incentives. Combining all of these determines employee total salary, which is called CTC.

 

2. Take-home salary: When an employee gets a salary, it is less than your CTC. Reason- The company deducts some money from your CTC or total salary for the provident fund i.e. PF, deducts the premium of some medical insurance and in addition, some items are deducted. The money that comes into your hands after all these is your in-hand salary or takes a home salary.

 

How will your salary be reduced?

 

A person whose basic salary is 50% of CTC will not make much difference, but one whose basic salary is not 50% of CTC will make much difference. This will be because, under these rules, the basic salary of anyone can not be less than 50% of CTC.

 

Actually, PF money is deducted from your basic salary, which is 12% of your basic salary. That is, the more the basic salary, the more PF will be deducted. The earlier employee used to increase the allowance by reducing basic salary from Total CTC, which also provided tax exemption and reduced PF. This increased in-hand salary.

 

Understand the new and old rules from 100 rupees

 

Old Rule

New Rule

Basic salary Rs 40

Basic salary Rs 50  (Because it should be 50% of CTC)

Allowance Rs 60

Allowance Rs 50

PF deduct from basic salary: 12% i.e. Rs 4.8

PF deduct from basic salary: 12% i.e. Rs 6.0

Medical insurance premium and other deductions: Rs 1 (Suppose)

Medical insurance premium and other deductions: Rs 1 (Suppose)

Now you have a basic salary: Rs 40-4.8-1=34.2

Now you have a basic salary: Rs 50-6-1=43

Now in-hand salary will be Rs 60+34.2=94.20

Now in-hand salary will be Rs 50+43=93

CTC Rs 100 (Total Salary)

CTC Rs 100 (Total Salary)

 

 

Note- Medical insurance premiums and other deductions have been considered as one thousand, while this varies from company to company. It totally depends on the company's salary policy and employee class.


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