Document required for PAN card

Three types of documents required for PAN application by an Individual Indian Citizen or a Hindu Undivided Family.

1. Proof of Identity
2. Proof of Address
3. Proof of birth

The Income Tax Department has suggested a list of documents.

Proof of Identity (Copy of any 1)

1. AADHAAR Card
2. Voter ID card
3. Passport
4. Driving License
5. Central Government Health Scheme Card or Ex-servicemen Contributory Health Scheme photo card
6. Photo identity card issued by the Central Government or a State Government or a Public Sector Undertaking
7. Ration card having photograph of the applicant
8. Arm's License
9. Pensioner Card having photograph of the applicant

Proof of Identity (You need to submit original)

1. Certificate of identity in original signed by MP or MLA or Municipal Councilor or a          Gazette Officer (Certificate format attached as Annexure- A)
2. Bank certificate in original on letterhead from the branch (along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant ( Certificate format attached as Annexure-C)

(Note: 1. In case of a person being a minor, any of the above-mentioned documents of the parents or guardian of such minor shall be deemed to be proof of identity and address.

          2. For HUF, an affidavit by the Karta of Hindu Undivided Family stating name, father's name and address of all the coparceners on the date of application and copy of any of the above-mentioned documents in the name of Karta of HUF is required as proof of identity, address and date of birth.)

Proof of Address (Copy of any 1)

1. AADHAAR Card
2. Voter ID card
3. Passport
4. Driving License
5. Electricity bill(should not be more than three months old)
6. Landline telephone or broadband connection bill(should not be more than three months old)
7. Water bill(should not be more than three months old)
8. Consumer gas connection card or book or piped gas bill(should not be more than three months old)
9. Bank account statement (should not be more than three months old)
10. Depository account statement(should not be more than three months old)
11. Credit card statement
12. Domicile certificate issued by the Government
13. Passport of the spouse
14. Passport
15. Post office passbook having the address of the applicant
16. Latest property tax assessment order
17. Allotment letter of accommodation issued by the Central Government or State Government of not more than three years old
18. Property registration document 

Proof of address (You need to submit original)

1. Certificate of identity in original signed by MP,MLA or Municipal Councilor or a Gazette Officer (Certificate format attached as Annexure- A)

2.  Employer certificate in original ( Certificate format attached as Annexure-B)

(Note: In case of an Indian citizen residing outside India, copy of Bank Account Statement in the country of residence or copy of Non-resident External (NRE) bank account statements shall be the proof of address.)

Proof of date of birth (copy of any 1)

1.   AADHAAR Card

2.  Elector's photo identity card

3.  Passport

4.  Driving License

5. Central Government Health Scheme Card or Ex-servicemen Contributory Health Scheme photo card

6. Photo identity card issued by the Central Government or a State Government or a Public Sector Undertaking

7. Birth certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of subsection (1) of section 2 of the Citizenship Act, 1955 (57 of 1955)

8.   Pension Payment Order

9.   Marriage certificate issued by Registrar of Marriages

10. Matriculation certificate or mark sheet of recognized board

11. Affidavit sworn before a magistrate stating the date of birth

12. Domicile certificate issued by the Government

For more details of Click Here OR visit https://www.incometaxindia.gov.in/Documents/documents-required-for-pan.pdf

Strategy to invest in Mutual fund

In this article I have discussed strategy to get extra profit from mutual fund. I am sharing based on my experience and calculation so that mutual fund investor can earn more than SIP method.

I have explained in details with calculation along with example so that you can understand easily

Almost every person knows about the mutual fund. If you don’t know then, mutual fund is nothing but way to create wealth with the help of fund managers.

There are various types of mutual fund, based on risk and goal.

I will directly come to the point, How should you invest in mutual fund.

There are two ways to invest:

SIP

Lump sum 

SIP:

When you choose SIP then you will have to pay monthly basis. Let’s take an example if you have started SIP of Rs 5000/- on 1^st Aug 2020 then every month the Rs 5000/- will be deducted from your bank.

But, it is not a good way to invest using SIP because market work almost 20 days in month and the NAV changes daily.

 

Let’s understand, on 1^st Aug 2020 you have invested Rs 5000/- , on that day the NAV was 10.

So, you have been allotted 500 Units

Allotted unit = (Invested amount for 1^st SIP / NAV) = (5000/10) = 500 Unit

 

Now market went up in August and your NAV is now 10.3. Now consider today is 1^st Sep 2020 and it’s time for 2^nd SIP of Rs 5000/-.

Now for 2^nd month you will get

Allotted unit = (Invested amount for 2^nd SIP / NAV) = (5000/10.3) = 485.4369 Unit

Now you have invested total Rs 10000/- and you have total Unit (500 + 485.4369) = 985.4369

So your Rs 10000/- has become (Total Unit * Current NAV) = (985.4369 * 10.3) = Rs 10149.93/-

You might be happy now as your value has increased. But still it is not a good way to do SIP.

Why???????

 

Let’s understand further, till now you have done two SIP.

Now market went down in September and your NAV is now 9.85. Now consider today is 1^st Oct 2020 and it’s time for 3^rd SIP of Rs 5000/-.

Now the for 3^rd month you will get

Allotted unit = (Invested amount for 3^rd SIP / NAV) = (5000/9.85) = 507.614 Unit

Now you have invested total Rs 15000/- and you have total Unit (500 + 485.43 + 507.614) = 1493.044

So your Rs 15000/- has become (Total Unit * Current NAV) = (1493.044 * 9.85) = Rs 14706.48/-

What happened? You are in loss now.

Don’t become sad now, In long term SIP will give profit to you but still I will not recommend this type of SIP investment.

Why??????

Remember when you have started Sip at that time the NAV was 10 and after 1 year it has become 11.2

Consider below table:

Month	SIP Amount	NAV for Month	Unit Allotted
Aug	5000	10	500
Sep	5000	10.3	485.4369
Oct	5000	9.85	507.6142
Nov	5000	10	500
Dec	5000	9.9	505.0505
Jan	5000	9.7	515.4639
Feb	5000	10.1	495.0495
Mar	5000	10.3	485.4369
Apr	5000	10.1	495.0495
May	5000	10.4	480.7692
Jun	5000	10.6	471.6981
Jul	5000	11.3	442.4779

So you have invested 5000 * 12=60000

Now if you do average the value of Average NAV is 10.2125 which the actual price at which you have invested and total Unit allotted is 5884.047

And your 60000 has become (Total Unit * Current NAV) = (5884.047 * 11.3) = Rs 66489.73/-

Here you got total Rs 6489.73/- which is nothing but (10.81%).

But still I won’t recommend this method because I have got less return.

Now how should you invest? (Lump sum)

I will recommend the below strategy:

As we know market moves up and down, based on that NAV get affected. I know very well when you start investing in mutual fund most of the people monitor their return daily.

You will study market or look for the advice from other, which mutual fund should I choose to invest for better return.

I will prefer lump sum over SIP.

Invest around 50% of your investment say you have invested 30000/- at NAV 10 then you will be allotted 3000 Unit after and a month if you see NAV around 9 or 9.5 invest 20000/- more if it goes below or above 9.5 or near 10 then  invest 10000/-.

Here I have taken 10, 9.85 and 9.9 from above table for respective month

Let’s understand with the help of table

Month	Invested Amount	NAV	Unit Allotted
Aug	30000	10	3000
Oct	20000	9.85	2105.263158
Dec	10000	9.9	970.8737864

 

In this scenario you have got 6040.557863units. Now on next year if it goes to 11.3 as per previous table.

Your 60000 has become (Total Unit * Current NAV) = (6040.557863* 11.3) = Rs 68258.31/- which is around 13.75%.

In previous scenario you had earn Rs 66489.73/- and in this scenario you have earn Rs 68258.31/-

OR

I have one more strategy which will give you more return but here you need to do some study. It is very simple to study but somewhat difficult to manage. It is related to stock investment.

Take one mutual fund which you think will give good return. Check their holding % and invest accordingly.

Let’s understand

You want to invest 60000/- and you selected XYZ mutual fund consider blow table

XYZ mutual fund
Holding stocks	Percentage	Your Investment Should be for Rs 60000
A	20	12000
B	20	12000
C	22	13200
D	9	5400
E	8	4800
F	7	4200
G	9	5400
H	5	3000

In this method you will earn dividend also. I have explained in detail in other article.

NOTE: Mutual fund also invests in other financial things. So you can modify percentage holding and create your own portfolio.

 

Why do people Loose Money

This Article is for all, Those who invest and who play in market. I have seen many people complaining that they have made loss in market, but have you asked yourself why did you make loss?

You blame others for your mistake, but it is not like that. If you really want to earn money from market, then you must control your greed and other things which i have discussed here.

You can completely avoid loss in market and create win win situation each time. Here I will share my experience with you guys. Whenever people hear about market either they get scared of losing money OR they think it’s very easy to earn money in stock market.

One thing i would like to tell you that before you earn you must learn the thing. Follow these rules strictly to earn money. 

Greed: 

If you want to enjoy the market first thing you must remove Greed from your mind. Why I am saying this, I have seen that most of the people become sad when they sell stock in profit and when stock price goes up again they regret and think it will go up again and they try to buy that stock at high price. But they forget that market always give opportunity.

             

let’s take an example You have bought a Stock for price Rs 100/- then sold at Rs 110/- you made profit of 10% which is very good. But when the stock price goes up again say to Rs 115/- people become sad, I don't understand why? When you have already made profit then what is the reason to become sad.                

Then you try to buy share at Rs 115/- thinking that it will go up again, but when you buy the share, the share price comes down and you start thinking that it will go down again and you force yourself to sell the stock at low price.

Now I want you to ask why did you buy the stock again? At the end you made loss, also you paid brokerage and all other charges.

This is the first thing where all players fall.

Solution is to avoid loss in this scenario wait for the consolidation or best way is stick to other stock as there are numerous stocks present in market.  

            

Fundamental:

The most preferred word in market. But most of the people do not focus on this word. They buy the stock at high price based on news and comes out with loss.

Fundamental, It is the word of safety, It is word of learning and it is nothing but all. Once you understood the fundamental, I bet, you won’t make loss. 

Revenge: 

I have also seen, not seen in fact I made several mistakes in market with the intention of revenge that I have made loss in this stock and I will take back my money this stock only. At the end I ended up myself with more loss.

So, don't do that, if you have loss your money, don't go for revenge, just chill yourself, go for other stock, which can recover your loss also give profit.

            

Patience: 

The most famous quote "Patience is the Key to Success" but in market it is not always correct. Why?? it is because of fundamental. If you have bought good fundamental stock, then only it works. But if you have gone with the stock which you don't know and you have kept patience then you will lose.

So, it depends on the stocks which you have selected.

Tip providers:

It is advisable to all that they stay away from Tip providers. Nobody can predict movement of market so it’s better to learn market, Once you learn you will earn.

I request you, don't fall in trap of Tip providers.

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