Prajna Capital

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• HSBC Mutual Fund - Change In Fund Manager
• Mutual Funds: Systematic investment plans(SIPs)
• Plan your Income Tax Investment now to avoid year end rush

HSBC Mutual Fund - Change In Fund Manager Posted: 08 Nov 2012 04:20 AM PST Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   HSBC Mutual Fund - Change In Fund Manager HSBC Mutual Fund has announced a change in the fund management responsibilities consequent to Mr. Kedar Karnik's resignation.   With effect from September 22, 2012, HSBC Fixed Term Series 82, 83, 86 will be managed by Ruchir Parekh solely. HSBC Floating Rate -LT , Cash Fund and Ultra Short Term Bond Fund will be managed by Ruchir Parekh and Sanjay Shah. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- 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 ) 1.ICICI Prudential Tax PlanInvest Online 2.HDFC TaxSaver Invest Online 3.DSP BlackRock Tax Saver Fund Invest Online 4.Reliance Tax Saver (ELSS) Fund Invest Online 5.Birla Sun Life Tax Relief '96 Invest Online 6.IDFC Tax Advantage (ELSS) Fund Invest Online 7.SBI Magnum Tax Gain Scheme 1993 Invest Online 8.Sundaram Tax Saver Invest Online Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Mutual Funds: Systematic investment plans(SIPs) Posted: 08 Nov 2012 12:36 AM PST Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)  Systematic investment plans are giving a new lease of life for the mutual fund industry as several fund houses are increasing their equity asset base by selling these products aggressively. But the difficult part is the time taken for such a model to generate profits      Monday, May 18, 1992: Riot breaks out in front of the Unit Trust of India office in New Delhi's Bahadur Shah Zafar Marg, when the asset manager launched its third mutual fund (MF) scheme, UTI Mastergain. Hundreds of investors are lathicharged to bring back order. Nearly two decades later, the industry that was to spread the culture of equity investing, is faltering. On the contrary, equity assets have shrunk to just about a quarter in 2010, from 35% in 2007. Industry is blaming the regulator and the regulator the industry. Much water has flown in the Ganges, but little to celebrate for investors. The 'Mastergain' euphoria lived on for the next two weeks. Policemen guarded the front doors of UTI offices in Mumbai and Delhi. UTI Mastergain, the third major fund offering by UTI after 'Mastershare' in 1986, and US-64, had scripted a history of sorts. About 65 lakh investors — that is one in every 140 Indians — had invested in the issue to raise . 4,600 crore. People invested in the "1992 blockbuster" to make a quick buck. They were aware that 'Mastergain' will list on the exchanges at a premium, but few knew why. When it listed at a premium a few weeks later, intelligent investors sold units for a profit. They earned their proverbial 'quick buck' on MFs, but the reputation of UTI, the previous avtar of UTI Asset Management, was in tatters a couple of years due to problems of bad delivery, losses and more. Ever since it was a kind of love-hate between investors and equity MFs — expectations of quick buck and disappointment. It may probably be changing. Systematic investment plan (SIP) mode of investing is gaining popularity among investors. "It took 25 years for investors to understand that MFs are long-term investment products. We've now begun seeing increased inflows through SIPs. This will be the game-changer for the industry in the years to come," said Dhirendra Kumar, managing director of fund research firm Value Research. SIP: THE GAME CHANGER A look at data sourced from asset management companies reveal that SIP numbers have grown over 45% over the past 15 months. 'New SIP additions' among funds serviced by fund registrar CAMS have gone up from 5.2 lakh folios in 2009-10 to 17.7 lakh in 2010-11. The industry added 2.2 lakh folios in the April-June quarter, 4.2 lakh folios during July-September, 5.8 lakh folios during October-December and 4.8 lakh during January-March quarter. SIPs will be game-changer for MFs in the coming years. Fund houses will have to get their basics right to survive. They will have to promote SIPs, increase distribution reach and bring in more retail investors to debt funds. If one takes a long-term view, SIPs have gradually gained popularity among retail investors. The number of live SIPs has gone up from 18.1 lakh accounts in March 2009 to 41.1 lakhs in February 2011. Weighted average investment in one SIP account is about 2,300 a month. The duration of investment on an average has gone up to about 36 months from 12-14 months. With about 93% of SIP transactions happening over electronic, or automatic clearing, fund houses do not fear about missed payments. The sad part, however, is that distributors are not willing to sell SIPs. They are not incentivised enough to sell them. Distributors will not approach smaller investors as the brokerage they receive from smaller investors will not be worth the effort. DISTRIBUTION HURDLES Lower commissions are prompting wealth advisors to stop selling mutual funds to investors. According to industry watchers, MF was not a profitable business even when asset managers were charging 2.25% as entry fees — eventually stopped by Sebi. Fund commissions have fallen significantly post the entry load ban in August 2009. Distributors are paid 0.75 to 1% as commission while selling equity and balanced funds. Low fund commission rates are prompting large distributors to focus more on selling insurance-based tax saver unit-linked insurance plans (Ulips), retail bonds and other exotic investment products. Even after rate rationalisation, Ulips are being sold at commissions as high as 8-15%.   Distributors also have the option to offer to distribute fixed deposit schemes that yield 1.7% to 2.5% and RBI Tax Relief Bonds which give 1% as commission charges. Something has to be done to strengthen the distribution system. In the interest of the industry, investors will have to leave a small sum of money to distributors; this has to be built in to investments made by the investor. Distributors will have to rein in their costs to be profitable. " All said, wealth advisors continue to contribute in a big way to MF sales. As per data from CAMS and Karvy, 45% of equity fund sales were done through independent financial advisors as compared to 29% by banks in 2010-11.   Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com   --------------------------------------------- Invest Mutual Funds Online Transact Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver Mutual  Funds  Invest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund   Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Plan your Income Tax Investment now to avoid year end rush Posted: 07 Nov 2012 06:55 PM PST Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) Every year, the last date for filing income tax (I-T) returns is July 31. That is, four months into the new financial year. Usually, the last two weeks witness increased activity among taxpayers to meet the deadline to file returns. Interestingly, the heightened activity during these weeks is not much different from what most salaried people do during the last three months of the financial year — January, February and March, what is referred to as the JFM months in market parlance. They rush to save some taxes by investing in investment products that qualify as tax savings options under the I-T act. And this rush act often leads to mistakes that are carried with them for years. In addition, such investments also fail to optimise returns for the investors. Thus, one rush job can not only make it expensive for you as an investor, but it can also fail to give you returns, which otherwise you would have got if you had planned a bit early in the year. In the current financial year, you still have nearly nine months left to plan for your tax savings, and with time on your side, do some research that can give you better returns in the long haul. Also, your plan to save taxes over the months till March can turn out to be less of a stress on your finances compared to when you bunch it up during the JFM months. At the basic level, an investor should have equity, insurance and PPF (public provident fund) in his/her portfolio for a balanced investment plan that also allows tax savings. Mutual Fund SIP If you are one of those investors who has the ability to take some risks and invest in equity schemes of mutual funds that also allow you to save taxes, like the equity linked savings schemes (ELSS) and pension plans (only two of the latter variety are available in the market), you can go for monthly systematic investment plans (SIPs). As you invest small sums through the months, you will have at the end of the year some large sum invested in instruments that qualify for yearly tax savings. In addition to the less-burdensome process of investing only small sums, SIPs also come with several other advantages (see our last two weekly editions of Swatantra). For beginners, SIPs inculcate investment discipline, are less of a headache, a low-cost option to you as an investor, and give the advantage of rupee-cost averaging — that is, buying in all types of market conditions whether it is a rising, sliding or a flat market. Compared to that, suppose you rush during the JFM period, chances are you may end up with an investment that may not even be suitable to your risk profile and also your long-term investment goals. Insurance There are enough examples of an investor being sold an insurance product that, while helping the investor save tax for the year, in the long haul it turns out to be a mistake and a costly one at that. In the process, the insurance advisor or the agent makes some good money from the fat commission he/she gets. As an investor, you should be careful not to fall into such a trap. So, if you are buying an insurance, do proper due diligence before you buy that. Now even if you have bought one and then found out that the policy is not the best one for you, you can enjoy the 15-day free-look period from the day of buying the policy and cancel it. Irda, the insurance regulator, allows every policy holder this 15-day period to go through the terms and conditions of the policy, understand their implications and then reverse their decision to buy the policy if it is found to be unsuitable. During this free-look period, as a policy holder you can also switch to another policy or alter some of the features in the policy that are changeable. As an investor, however, make no mistake that most of you would need insurance, but make sure to buy the best suitable policy or policies according to your requirement. And if you have more than one policy, spread out the premiums over the year rather than bunching it up in a short span of time. Public provident fund - PPF Another popular long-term tax planning investment product is the public provident fund, popularly known as PPF. The 15-year scheme, which is also extendable by blocks of five years, gives a post-tax annual return of 8-9% and excellent long-term returns. The scheme is also guaranteed by the government. The PPF scheme also allows you to spread out your investments through the year. You can deposit up to Rs 1 lakh per annum in your PPF account. You can make the deposit in lump sum, or in convenient monthly instalments. However, you cannot make more than 12 instalments in a year, or two instalments in a month, subject to the overall cap. So, in effect, you don't need to put an equal sum of money into your PPF account every month, but you can choose how much to put and when to put, given the overall 12 instalment cap. For example, in a particular month when you have to pay your insurance policy and, after taking into account your SIP outgoes, you are left with Rs 3,000. You can invest that in the PPF account. Then again, if the next month you don't have any insurance premium to pay, you can deposit some extra amount in your PPF. As an investor, you have these very common investment options with which you can plan and spread your tax savings needs. It's good if you can manage it on your own. Else, if you don't feel confident, you should seek professional help from a financial advisor, a financial planner or a tax advisor for a small fee. Whatever the case, do your tax planning early in the year, and don't wait for the calendar to change to 2013. Make it a continuous exercise: Consider this as part of your and your family's long-term financial planning Get a financial wrapper: Have a single financial advisor or planner to help you with all your investments, rather than different persons selling different products to you Involve family: Your tax and financial planning is for your family as a whole. Involve your family members, it enhances financial bonding Take responsibility: It is your responsibility, and not that of your financial planner. Get fully involved, ask more questions and agree with your planner to disagree, but finally settle for the best solution Common Mistakes Low-risk investors going in for high-risk ones Buying a new policy each year when there's no need Investing in a low-return policy that gives the agent a fat commission Choosing multiple products with total investments amounting to what's more than required Entering a market-linked product at a high price just because everyone else is Missing out on investments that offer higher post-tax returns   Happy Investing!!   We can help. Call 0 94 8300 8300 (India)   Leave your comment with mail ID and we will answer them                         OR You can write back to us at prajnacapital [at] gmail [dot] com --------------------------------------------- Invest Mutual Funds Online Transact Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms Best Performing Mutual Funds Largecap Funds        Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds     Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds    Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds             Invest Online DSP BlackRock MicroCap Fund Sector Funds              Invest Online Reliance Banking Fund Reliance Banking Fund Gold Mutual Funds             Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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