The Economic Times News

ET Wealth Reader's Query: I plan to redeem my mutual fund units to finance a house purchase in Pune. I also intend to sell a house I own in my village. Can I still claim long-term capital gains tax exemption?

8th pay commission: Government employees and pensioners are keenly awaiting the 8th Pay Commission's recommendations, hoping for a significant salary and pension increase. The fitment factor, a multiplier for existing pay, will determine the exact payout. Past commissions saw substantial hikes, with the 7th CPC using a 2.57 factor.

A woman arrested in 2002 over a family dispute lost her government job. She was acquitted of all charges in 2011. After a long legal battle, the Rajasthan High Court has now ruled in her favor. The court upheld her reinstatement, stating the termination's basis no longer existed post-acquittal. This marks a significant victory after 23 years.

Mutual funds significantly boosted their cash holdings by Rs 14,539 crore in 2025. The total cash in portfolios reached Rs 2.01 lakh crore by November. This period also saw the entry of five new asset management companies. PPFAS Mutual Fund and Quant Mutual Fund led in increasing cash allocations. Several other funds also adjusted their cash positions.

An Income Tax Assistant from Sasaram was sentenced to one year in jail for demanding a Rs 600 bribe to process a Rs 5,826 tax refund. Caught in a CBI sting operation, the employee's appeal was dismissed by the Patna High Court, which upheld the conviction and ordered him to surrender to serve his sentence.

For investors running SIPs for 810 years, mid and smallcap funds may dominate portfolios due to strong growth. Experts advise continuing long-term SIPs to benefit from compounding, while short-term goals (12 years) may require rebalancing into stable multi-asset or large-cap funds.

The Reserve Bank of India has announced bank holidays for January 2026, varying by state due to local festivals and observances. Banks will also be closed on all Sundays and the second and fourth Saturdays of the month. Key holidays include New Year's Day, Makar Sankranti, Pongal, and Republic Day.

In Kotak Mutual Fund's annual market outlook for 2026, Shah said the global economy is entering a phase where fiscal policy is taking the lead, while monetary support is gradually easing. Rate cuts are underway, but the environment that fuelled strong market rallies earlier is no longer in place.

Market experts see 2026 favouring risk assets, with strong consensus around consumption, financials and autos. Lenders, NBFCs, PSU banks, consumer discretionary, real estate and defence emerge as key themes, alongside selective opportunities in healthcare, renewables, manufacturing, chemicals and cement, supported by growth visibility, valuations and structural tailwinds.

With the introduction of the new tax regime, several deductions/exemptions under the Income Tax Act, 1961 have lost much of their relevance given that 72% (for the AY 2024-25) have filed their tax returns under the new tax regime. Although these deductions aren't available under the new regime, the income slabs and tax rates have been recalibrated, reducing the net tax outflow for a large section of taxpayers.

Smallcap mutual funds faced a tough 2025, with most delivering negative returns due to valuation excesses and foreign investor outflows. Experts suggest long-term investors stay put, rebalancing if allocations exceed targets. A rebound is statistically probable in 2026, driven by potential rate cuts and earnings recovery.

A husband has been jailed for six months in Kerala for harassing his wife under Section 498A. The Kerala High Court ruled that testimony from the wife's sister, brother, and an auto driver is enough. The court stated that domestic cruelty happens behind closed doors and does not need independent witnesses.

According to the Sebi mandate, short duration funds can invest in debt instruments which have maturity between one and three years. That means these schemes are meant for short-term investments of up to three years or more.

The Supreme Court dismissed a property inheritance case. A key witness disowned a will during cross-examination. This means the property will now follow natural Hindu succession laws. The mother had filed a case against her son for property title. The trial court had given partial relief. The mother passed away during the appeal.

The Finance Ministry will review Post Office small savings scheme interest rates by December 31, 2025, for the January-March 2026 quarter. While G-Sec yields suggest potential cuts, experts believe the government may prioritize stability for household savers, especially senior citizens, over formula-based reductions.

Experts are urging the government to introduce a real-time income tax refund tracker on the e-filing portal ahead of Budget 2026. This move aims to alleviate taxpayer anxiety and financial planning challenges caused by delayed refunds. The proposed tracker would offer clear status updates and an escalation option for prolonged delays, enhancing transparency and efficiency.

Benjamin Graham, the father of value investing, likened investing to a casino where rules ensure you don't lose in the end. He stressed that emotional decisions, like a gambler's, lead to poor outcomes. Graham's philosophy emphasizes independent thinking, detachment, and a margin of safety, ensuring long-term success by focusing on business value, not just price.

Mirae Asset ELSS Tax Saver Fund has delivered strong long-term wealth creation, turning a Rs 10,000 monthly SIP into over Rs 29 lakh in 10 years with an XIRR of 17.47%. The fund has outperformed benchmarks since inception, offering Section 80C tax benefits and a disciplined, diversified investment approach.

Silver prices surged past Rs 2.50 lakh/kg on MCX, marking a significant rise driven by China's new licensing system for processed silver and dwindling global inventories. Experts predict continued strength due to industrial demand and supply shortages, though extreme rallies might see corrections. Investors are advised to accumulate on dips and consider staggered investments.

Indias retirement planning mindset is evolving, with rising mutual fund adoption and growing interest in ETFs and REITs, even as actual preparedness declines.

January 2026 changes: As 2026 begins, significant changes are coming for salaried employees, pensioners, and bank customers. The 8th Pay Commission term starts, PAN-Aadhaar linking deadline ends, and IRCTC, SBI Card, HDFC Bank, and ICICI Bank introduce new rules impacting travel and card benefits.

After a blockbuster 2025 for gold and silver, market experts remain divided on the outlook for 2026. While safe-haven demand may persist, most believe returns could moderate, with volatility and stabilisation emerging as key themes.

PANAadhaar link deadline: The Income Tax Department offers convenient methods to link PAN with Aadhaar, with a January 1, 2026 deadline to avoid an inoperative PAN. Failure to link can halt tax filings, refunds, and financial transactions. Verification can be done online or via SMS, with linking taking a day or two post-submission.

Gold and silver emerged as standout assets in 2025, driven by strong investor demand, rising ETF participation and expanding industrial use. While silver delivered outsized gains amid structural demand shifts, experts caution that heightened volatility, inflation risks and global macro uncertainties could trigger sharp short-term price swings ahead.

IRCTC train tickets new rule 2025: Indian Railways is expanding booking hours for Aadhaar-authenticated IRCTC users on the Advance Reservation Period's opening day. Starting December 29, 2025, this exclusive window will gradually increase, reaching 16 hours by January 12, 2026, allowing more passengers to secure reserved train tickets online.

Several NPS fund managers have delivered strong five-year returns of up to 17%, with four schemes generating over 16%. Data from Value Research shows NPS performance has broadly matched equity market returns, reinforcing its appeal as a long-term, tax-efficient retirement option.

Radhika Gupta calls Edelweiss Multi Asset Omni FoF a perfect thaali fund, highlighting its disciplined 65-10-10-15 allocation across equity, gold, silver and debt. The fund aims to offer diversification, stability and growth amid volatile market conditions.

Coforge rose after it announced a $2.35 billion acquisition of US-based AI firm Encora.

In 2025, investors gravitated towards Silver and Gold ETFs due to supply shortages and market uncertainty, respectively. Consumption funds saw attention following GST restructuring, while International funds delivered strong double-digit gains. Auto sector funds experienced growth, contrasting with the underperformance of Technology sector funds.

Ashish Kacholia-backed Jain Resource Recycling's anchor lock-in period has ended, making 12 million shares tradable. The company's stock has surged 77% above its IPO price of Rs 232, reaching Rs 461. Jain Resource Recycling specializes in non-ferrous metal recycling and manufacturing, serving prominent domestic and global clients.

According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market instruments in such a way that the Macaulay's duration of the portfolio is four to seven years. Since these schemes invest in long-term debt instruments, they are considered risky.

A homeowner who sold property for Rs 61 lakh and received Rs 38 lakh in cash has won a tax case. The Income Tax Appellate Tribunal Mumbai ruled that if a sale deed and bank statements confirm cash deposits, the source is accounted for. The tribunal quashed a tax notice for unexplained income.

The Supreme Court has ruled that a son accepting a job on compassionate grounds after his father's death cannot later demand a higher post. The court stated that compassionate appointments are meant for immediate family support. Once a lower post is accepted, a claim for a senior position is not maintainable.

In 2025, Indian cross-border investing saw a regulatory overhaul, with LRS and GIFT City's IFSC framework introducing stricter compliance and clearer tax rules. This shift moved overseas investments from opportunistic bets to deliberate portfolio strategies, while also highlighting areas needing further reform for sustained growth.

In this weeks TrendMap, ET Wealth compares seven asset combinations. Portfolios with gold have delivered a notable return boost in recent years, while those without gold exposure have consistently lagged. By Sameer Bhardwaj.

Review your finances, but do not beat yourself up about missing the boat or resolving to speculate in the coming year. Instead, identify and be more aware of your personal finances and choices based on the years experiences that provide information about how you managed your money.

Retirement planning saw major changes in 2025. Policymakers reformed EPF and NPS, making them more flexible and digital. NPS now allows easier withdrawals and higher equity allocation. EPF withdrawals are simplified into three categories. A string of new rules and changes ushered in a drastic transformation for EPF and NPS.

Most investors look at historical returns and project that return going forward. Over the last 25 years, equity has delivered an average annual return of 15%. However, it would be inappropriate to project this return going forward as averages lie.

2025 marked a watershed year for Indian insurance, with the Sabka Bima Sabki Raksha Bill significantly boosting FDI to 100% and empowering IRDAI. Key reforms included GST removal on health and life premiums, a revamped ombudsman system, and efforts to resolve insurer-hospital conflicts, aiming for greater consumer access and protection.

Indian equities consolidated in 2025, with the Nifty delivering a modest 9.4% return amid concerns over stretched valuations and slowing earnings growth. Domestic pressures were compounded by foreign capital outflows and geopolitical uncertainty, leading to broad-based market weakness. Investors prioritised stability, favouring large caps over mid and small caps.

Gold and silver experienced a remarkable surge in 2025, with silver jumping 138% and gold gaining 74.5%. This rally was fueled by geopolitical tensions, central bank buying, and strong ETF demand. While digital gold saw initial growth, regulatory scrutiny slowed its momentum. Silver's ascent, however, was driven by robust industrial demand, signaling a potential structural shift.

Mutual funds saw significant growth in 2025 despite market volatility, with multi-asset funds and income-plus-arbitrage funds emerging as investor favorites. New regulations by Sebi aim to increase transparency in fund charges, breaking down expenses into distinct categories for investors. Multi-asset funds powered by gold ruled 2025, while new tax-smart hybrids offered debt fund alternatives. SEBIs fee overhaul brought transparency.