Anand Rathi Wealth Management Accounts Manager Interview Questions and Answers

Tax on equity typically refers to capital gains tax on profits from selling equity investments.

• Capital Gains Tax: Tax on profits from selling stocks or equity investments.

• Long-term vs Short-term: Long-term capital gains (held over a year) are usually taxed at a lower rate than short-term gains.

• Example: If you sell shares for a profit of $1,000 after holding them for more than a year, you may pay 15% tax on that ga...read more

IRR is the rate at which the net present value of cash flows equals zero, while CAGR is the average annual growth rate over a specified period.

• IRR is used to calculate the rate of return on an investment based on its cash flows.

• CAGR is used to measure the mean annual growth rate of an investment over a specified time period.

• IRR takes into account the timing and amount of cash flows, while CAGR focuses on the overa...read more

GDP is calculated using the formula: GDP = C + I + G + (X-M)

• GDP = C + I + G + (X-M)

• C represents consumer spending on goods and services

• I represents business investments in equipment and structures

• G represents government spending on public goods and services

• (X-M) represents net exports (exports minus imports)

• GDP can also be calculated as the sum of value added at each stage of production

LTCG and STCG have different tax implications. Losses can be set off and carried forward.

• LTCG (Long Term Capital Gains) are taxed at a lower rate than STCG (Short Term Capital Gains).

• STCG is added to the income and taxed as per the applicable tax slab.

• Losses from both LTCG and STCG can be set off against gains from the same category.

• If there are no gains in the same category, losses can be carried forward for up t...read more

I would invest in a diversified portfolio of stocks, bonds, and real estate to minimize risk and maximize returns.

• I would allocate a portion of the funds towards blue-chip stocks with a proven track record of consistent growth and dividends.

• I would also invest in a mix of government and corporate bonds to provide a steady stream of income.

• To further diversify, I would invest in real estate through REITs or rental ...read more

Mutual funds offer diversification, professional management, and convenience for investors.

• Diversification: Mutual funds invest in a variety of securities, reducing risk by spreading investments across different assets.

• Professional management: Fund managers make investment decisions on behalf of investors, utilizing their expertise and research.

• Convenience: Investors can easily buy and sell mutual fund shares, mak...read more

Capital gains can be eligible for deductions in income tax.

• Long-term capital gains are taxed at a lower rate than short-term gains.

• Investments in certain sectors like infrastructure and startups may be eligible for tax exemptions.

• Losses from capital gains can be carried forward to offset future gains.

• Tax-saving investments like ELSS can also help in reducing tax liability on capital gains.

Delta, vega and theta are important measures used in options trading.

• Delta measures the rate of change of an option's price in relation to the underlying asset's price.

• Vega measures the sensitivity of an option's price to changes in volatility.

• Theta measures the rate of decline in an option's value due to the passage of time.

• Delta is positive for call options and negative for put options.

• Vega is higher for options...read more