/10 facts of the financial world you will have a hard time believing

10 facts of the financial world you will have a hard time believing

​There once existed 97.75% income tax

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​There once existed 97.75% income tax

(Based on text by ET Bureau)

In 1970-71, personal income tax was spread across 11 slabs, with the highest bracket attracting 85% tax. Together with a surcharge of 15%, the marginal rate of income tax reached an whooping and now unimaginable 97.75%! Over the last 50 years, the tax slabs have reduced to 3 with the maximum bracket attracting 30% tax at present.

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​The Infosys Technologies IPO was undersubscribed

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​The Infosys Technologies IPO was undersubscribed

The Infosys IPO that was launched in June 1993 and priced its shares at Rs 95 apiece was undersubscribed. Financial services giant Morgan Stanley then bailed it out by picking up 13% of the equity. The stock listed at Rs 145, a listing gain of more than 52%. Rs 9,500 invested in the IPO is now worth over Rs 2 crore along with almost Rs 20 lakh in dividends.

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​Month-long wait for trade settlement

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​Month-long wait for trade settlement

When shares were traded in physical form in the 1980s, the settlement of stock trades could take more than a month. After the introduction of electronic matching engines in the mid 1990s, the process of settlement was reduced to 14 days. Now the process only takes two days.

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​Tax rates on gold depend on how you invest

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​Tax rates on gold depend on how you invest

The precious yellow metal, when held in physical form or gold funds, attracts a long term capital gains tax (LTCG) of 20% with indexation whereas gold bonds do not attract any LTCG if held till maturity. However, the tax rate for such bonds is 10% without indexation if sold before maturity.

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​Warren Buffett’s net worth was once just 0.3% of current value

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​Warren Buffett’s net worth was once just 0.3% of current value

Considered as the world’s most successful investor, Buffett made 99.6% of his $ 87.5 billion fortune only after the age of 52. As much as $ 72 billion of his wealth came after he turned 65. He started investing when he was only 11 years old and filed his taxes for the first time at the age of 13.

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​Apple’s m-cap beats that of all BSE 500 companies

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​Apple’s m-cap beats that of all BSE 500 companies

Apple Inc’s market cap was more than Rs 164 lakh crore in 2020. This is more than the combined market cap of BSE 500 companies and twice as big as that of the 30 share index. Since 24 August 2019, Apple shares have more than doubled in value from $ 212 to more than $ 500.

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​Tax came in the way of too much equity/retirement investment

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​Tax came in the way of too much equity/retirement investment

Under Section 88, tax rules were such that deduction for investments in ELSS funds was capped at Rs 10,000 a year. This upper limit discouraged investors from investing too much in equities. In addition, contributions to pension plans were also capped at Rs 10,000 a year under Sec 80CCC. These sub limits were removed when Section 88 was replaced by Sec 80C in 2005.

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​Anil Ambani was once richer than Mukesh Ambani

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​Anil Ambani was once richer than Mukesh Ambani

For a brief period in 2006, a year after the Ambani brothers split their wealth, Anil Ambani’s net worth was higher than that of big brother Mukesh by about Rs 500 crore. However, Mukesh soon overtook his brother. In 2007, Forbes pegged Mukesh’s wealth at $ 49 billion and Anil’s at $ 45 billion. Anil claims his net worth to be zero now. In the last 13 years, Mukesh’s wealth has increased by an average $ 61 per second while Anil has lost $ 110 per second.

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​2020 saw the most public equity fundraising ever

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​2020 saw the most public equity fundraising ever

The calendar year 2020 saw an all-time high fundraising through public equity markets at Rs 1,77,468 crore, despite being in the tight grip of the coronavirus pandemic. This was 116% higher than that in calendar 2019. The fundraising included IPO, QIP and OFS proceeds.

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​The UTI Mastergain 92 craze

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​The UTI Mastergain 92 craze

Potential investors slept outside the offices of fund house UTI to collect the application forms for Mastergain 92 when it was launched in the midst of a stock market boom in 1992. It made its debut as a close-ended fund with 65 lakh investors, a world record for any equity fund.

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