IMF urges U.S to raise indirect taxes.

The International Monetary Fund has urged the United States to increase the indirect tax rates to boost up the revenue. As the U.S is the leading exporter of I.T services, raising the rates of the indirect taxes would increase the U.S Government’s revenue. As the exporters may get input tax credit and thus they would intern pay a higher income or corporate tax, thereby increasing the revenue. Domestic sellers (small business owners) would pay the indirect tax directly to the Government.

SIP and RD are meant for different kinds of investors.

The instalment for SIP (systematic instalment plan) type of investment product is known as premium (its fixed). SIP’s are non banking investment product. RD (recurring deposit) is a banking investment product. The rate of return on RD is (certain) in accordance with the internal policy of the bank and the monetary policy of the central bank of that country. Whereas the rate of return on SIP depends entirely on the financial market predictions (uncertain). That is why these two different types of investment products cater to two different kinds of investors. That is, those with different risk bearing capacities. SIP’s are riskier than RD’s.

Bank F.D v Mutual funds FMP (Fixed Maturity Plan).

Mutual fund FMP though not having guaranteed returns enjoy a long term capital gains tax if above 3 yrs. Whereas the Income from Bank FD itself is not guaranteed due to the contingencies like NPA (Non Performing Assets). 

According to me,

People should change their mindset and believe in new financial products for their investments. Today due to the rise of NBFC (Non Banking Financial Corporations), new investment products are in demand. On account of easier mobility of the funds accross the globe. Thus facilitating global investments for higher returns which may be riskier than that of conventional banking.