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- Thematic funds – Sectorial Mutual Funds
- Contingency fund in a financial plan
- Fidelity Tax Advantage
- Term Deposit and TDS
| Thematic funds – Sectorial Mutual Funds Posted: 26 Mar 2012 03:03 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form
AN INVESTOR, who is not stock market savvy or is a sceptic, usually plays the market through the mutual funds route as seen in the past many years. But, quite often, when the market is in a bullish mode, mutual fund houses try to ride the sectoral theme in order to catch the flavour of the season. For instance, healthcare and FMCG shares were the darlings of the investors in 2011, while banking disappointed last year due to tightening of interest rate and concerns about deteriorating asset quality. Similarly, the infrastructure theme did well in 2006 and 2007, but has underperformed significantly in 2010 and 2011.
So, should one take exposure to these thematic funds at a time when volatility in the equity market continues to remain high and most of the underlying risks have not yet subsided? In the past that thematic funds have done well when markets are on the up move. Thematic funds are a function of market cycle, function of risk and time horizon calculated by an investor. It is a high-risk, high-return investment and if an investor has an investment horizon of three-four years, these investments would fetch him decent returns. For novice investors identifying the right theme could be a Herculean task. These investors should invest in mutual funds and ideally, they should stick to diversified equity mutual funds, said an analyst with a mutual fund house, who spoke on condition of anonymity. Risk profile: Thematic funds by nature are more prone to risk and volatility. The performance of these funds is dependent on the performance of a particular set sector or a theme, unlike a diversified fund that moves in line with the broader markets, said the analyst. In the past one year, Reliance Diversified Power Sector Fund gave a negative return of 11.59 per cent, while UTI Energy Fund was down 2.7 per cent. Similarly, Sundaram Entertainment Opportunities Fund Retail Growth has delivered a negative return of nearly 16 per cent and Sundaram Capex Opportunities has fallen 10 per cent in the past one year. Some sector/themes that do well in one year may underperform in another year. Options: On the other hand, returns from diversified funds and index-based funds eked out positive returns in the past one year. HDFC Mid-Cap Opportunities Fund registered positive return of 16.4 per cent, followed by Religare Mid & Small-Cap Fund (up 10.1 per cent), DSP BlackRock Top 100 Equity Fund (6.6 per cent), UTI Opportunities Fund (12.9 per cent) and HDFC Top 200 Growth Fund (3.2 per cent). Investment in mutual funds should be more diversified, if an investor is looking at a one-year point of view. Even, if the market remains upbeat for a longer period in a year, an investor should not go for investing in a particular sector because during correction times, these theme-based funds fall in tandem with the market due to their exposure to a particular theme,. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| Contingency fund in a financial plan Posted: 26 Mar 2012 02:21 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form
Contingency/liquidity margin: Liquidity margin, typically, is to take care of expenses, if there is an income disruption. Typically, one should have about three months of expenses, as a margin. As per the case, it could be higher or lower. This should be maintained in the bank (savings bank account or flexi deposit) and in ultra short-term debt funds, so that one can access it when needed. three months of expenses, as a margin. As per the case, it could be higher or lower.
Sometimes it is for situations, which are known, but the timing is not known. Medical cover: The young think that nothing can go wrong with them, they being so fit and sprightly. There is no assurance of that too. A 29 year old person in my association, who was apparently in great health, passed away due to a heart The young think that nothing can go wrong with them, they being so fit and sprightly. There is no assurance of that too. A 29 year old person in my association, who was apparently in great health, passed away due to a heart attack. Karan told me, he had a Rs 2 lakh cover from his company. That is woefully inadequate for a family of three. Also, one's medical expenses alone are not the only area of concern. The concern areas also extends to one's parents and other relatives whom one needs to bail out when they fall ill. That is what had happened to Karan. Life insurance: A lifestyle is built based on the income that one has. Good income earners have a lifestyle to match. That is why we find that even those who earn well, sometimes struggle, when it comes to their expenses. Their goals also tend to be gilt edged. Now, what will happen, if that income stops? Absolute disaster! Everyone who has dependants need to have a cover that can cover their dependants expenses and meet their upcoming goals. But then, you need to have a good cover for that. I estimated that Karan needs Rs 3.5 crore of insurance. He had all of Rs 7.5 lakh. Term plans are available at very low cost today. One should take advantage of it. Savings: Income, less expenses, is not savings. Income, less savings, should be expenses. That is a more disciplined way to go about ensuring that the future goals are not held hostage to today's extravagant tendencies. Savings also should be well balanced. Invest wisely across asset classes. No point running scared of equity based assets, just looking at their volatility. In the long term, their returns are better than any other asset class. If you want inflation-adjusted positive returns, you cannot escape this. Give it enough time and it will show results. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| Posted: 26 Mar 2012 12:32 AM PDT
Tax Saving Mutual Funds Online Current open Infra Bond Application form It's pretty much as safe as you can get when opting for an equity fund with a tax benefit. The fund portrays itself as one that will not excite during bull runs but will certainly not crumble like a pack of cards. Since its launch, of the total 11 quarters in which the category has been in the red, the fund has curtailed its fall to a lower level than the average in 10 of them. Come 2010 and the fund proved that it was no bear market bellwether. Out of 37 funds, it was the second best performer.
When Kothari analyses a stock, he makes his call based on its fundamentals, valuations and his understanding of the growth outlook. Even if the stock is having a great run, he may not hop onto that wagon. Metals, for instance, had a great run in 2007 and 2009 while his exposure was limited to around 5 per cent. But Kothari is quick to point out that he has nothing against any sector per se. "The fund is a go-anywhere fund with no market cap, sector or style bias. This means that the fund can look for the best ideas and invest in them irrespective of the market environment." Agreed, but there is no denying the strong bent towards Financial Services. He views it as a proxy to the overall growth in the economy since India has a low penetration of financial services and the potential to grow and compound returns over the long-term are enticing.
Kothari is a bottom-up stock picker who tries to avoid making short-term trading calls. "We aim to outperform our benchmark by looking for alpha regardless of market conditions. We take into account many factors: Understanding of the business, how it makes money, opportunity, scalability, competitive advantage, franchise value, growth potential, upside, execution track record, is it the lowest cost producer, do we trust the management? We then see what we are willing to pay for that stock," he says.
The portfolio construction does give the impression that the fund manager appears to err on the side of caution. Along with a large-cap bias, the portfolio is extremely well diversified. The number of stocks has averaged around 65 (over the past year) with allocation to the top five averaging around 24 per cent. Apart from Reliance Industries, allocation to a single stock has rarely exceeded 6 per cent and numerous stocks have an exposure of less than 1 per cent. When smaller stocks rally, this large-cap dominated portfolio could get left behind. Also, should Financial Services' stocks get beaten down, this fund could lag behind its peers. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| Posted: 26 Mar 2012 12:00 AM PDT
A term deposit account is a contract between a bank and a client, hence other than TDS no amount can be deducted from the maturity value. Please write to the nodal officer of the bank about the wrong practice being followed by the branch and also for refund of the amount deducted wrongly. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
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