Friday, January 25, 2013

Prajna Capital

Prajna Capital


Conservative Investors can invest in Mutual Fund MIPs Now

Posted: 25 Jan 2013 02:00 AM PST

Time is ripe for conservative investors to bet on monthly income plans (MIPs) from mutual funds, say investment experts. MIPs, which have been touted as an ideal vehicle for investors looking to take a small exposure in equities, invest 5% to 25% of their corpus in equities and the balance amount in bonds and other fixed income instruments. Though these schemes aim to distribute monthly dividends (hence the name monthly income plans), there is no guarantee on frequency of dividends.


Religare MIP Plus and Taurus MIP Advantage, launched in the last two years, invest a part of their corpus in gold. MIPs offer growth and dividend options. Investors with regular income needs should opt for the dividend option. Dividend declared by these schemes attract a dividend distribution tax of 13.52%. If you opt for the growth option, long-term capital gain tax liability would be lower of 20.6% with indexation or 10.3% without indexation. Interest rates have peaked and are expected to come down. Pressure on corporate margins too is expected to ease. As both equities and fixed income are likely to do well, MIPs are a suitable option for conservative investors now.


While falling interest rates offer capital gains on bonds along with interest, expected increase in stock prices should boost the returns on the equity part of the portfolio. "Interest rates are expected to go down by 100 bps in the next one year. With renewed global investor interest in Indian equities after the recent reform measures, it is a good investment option.


The recent performance of these funds has been very promising. The debt-oriented conservative MIP category has gained 3.65% in three months ended October 25. IDFC Monthly Income Plan leads the pack with 5.62% returns in three months, followed by HSBC MIP Savings with 5.43% returns. These returns are mainly from the equity components of these schemes. S&P CNX Nifty, the market benchmark, has gained 11.66% in three months.


If you are thinking of investing in MIPs, you should look at the fund manager's strategy and asset allocation of the scheme before investing. As you would know a lower allocation to equity means you don't have to face much volatility. As for the debt part of the portfolio, a higher average maturity of the fixed income portfolio would be more sensitive to interest rate changes. If you can digest some volatility due to changes in interest rates, you can look at funds with high average maturity - more than five years - of fixed income portfolios.


He recommends IDFC MIP and Reliance MIP in this space. A point to note is if the interest rates fall, high average maturity portfolios are expected to bring higher returns in the form of capital appreciation. But if rates go up in short-term, such portfolios can show some capital loss too, bringing down the overall portfolio returns. If you are really not keen to expose yourself to interest rate risks, better stick with funds with relatively low average maturity of fixed income portfolios. Additionally, the fund manager should ideally restrict equity allocation of the fund to large-cap stocks. This conservative strategy may not deliver top of the chart performance for investors but surely minimises volatility in portfolio returns. He prefers HDFC MIPshort term plan and Birla Sun Life MIP-II Savings 5 option in this space.


Market pundits are of the opinion that if you are bullish on gold in the medium term, you can consider schemes that invest a part of the portfolio in gold. But those bullish on equities should invest in traditional MIP schemes that invest in varying combination of fixed income and equities. MIPs should deliver healthy risk-adjusted returns, comfortably beating fixed deposits in two to three years.

 



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
  9. Edelweiss ELSS Invest Online

    ----------------------------------------

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

    1. Largecap FundsInvest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap FundsInvest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap FundsInvest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap FundsInvest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector FundsInvest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Invest through mutual fund route If you have Limited amount

Posted: 25 Jan 2013 01:03 AM PST

 

MUTUAL funds can serve as a replacement for several individual investments that an investor might normally make. It simplifies the task for investors by providing convenience and ease of operation. The question for investors is the manner in which this can be undertaken and whether it is suitable for them given specific circumstances.
 
Gold investments: Investing in gold can be done effectively using gold mutual funds. This can be either through gold exchangetraded funds (ETFs), or gold funds, which in turn invests in gold ETFs. This will ensure a direct linkage with the price of gold and investors will be able to address their need of having an exposure to the gold price.
 
This is one of the best ways to invest in gold because it involves less expense, and the investments can be in small amounts, like a few hundred rupees each month.
 
Debt investments: One of the ways in which investors can ensure an access to debt investment is through the direct route, by buying a fixed deposit, bond or debentures. But, there can be situations where these options might not be feasible for small investments or the required option might not be available. In this situation, one of the ways in which the investment can be made is through the debt fund route.
 
There are also some aspects of debt like bonds and government securities where the fall in the interest rates can lead to large capital gains through an appreciation in the value.
 
Here too, investing through debt mutual fund route can ensure gains for investors when the rates actually fall, rather than waiting on the sidelines for the rates to rise again.
 
Sector investments: Investing in various sectors in the equity market is also a good option to gain for investors.
 
But here also, individuals might not know which of the companies in the sector might perform well and in limited funds, it will not be possible for them to buy stocks of all the leading companies in that particular sector.
 
In this case, investors can opt for a sector fund. This will ensure an exposure to the required area and at the same time, the amount that is invested is spread across multiple holdings. Also, since the investment involved here will not be very high, investors can achieve their objectives with a small amount that they have.
 

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 Plan Invest 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
  9. Edelweiss ELSS Invest Online

SBI MAGNUM TAX GAIN - DIVIDEND HISTORY

Posted: 24 Jan 2013 10:24 PM PST

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Buy Gold Mutual Funds

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

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 
 
 
Scheme Name
SBI Magnum Tax Gain Scheme (D)
Record Date
Dividend (Rs/unit)
22-Mar-12
3.5
18-Mar-11
4
5-Mar-10
4
29-May-09
2.8
15-Feb-08
11
2-Mar-07
11
10-Mar-06
15
10-Jun-05
10.2
29-Oct-04
2.7
29-Mar-04
1.5
31-Dec-03
1.5
26-Sep-03
1.5
15-Dec-99
2.5
31-Mar-96
0.8
31-Mar-95
1

No comments:

Post a Comment