Prajna Capital

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• Start Your Planning from the Financial Year beginning
• HDFC FMP 405D April 2013
• Stocks for retirement?

Start Your Planning from the Financial Year beginning Posted: 23 Apr 2013 07:01 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Use financial numbers collated for your taxes to get together a financial plan & investment policy   The best time to start financial planning is always 'Now'. However, the beginning of the financial year comes a close second, say financial pundits. No, it's not an auspicious date. You can start on a clean slate at the beginning of the new financial year, as it is an ideal time to finalise your plans for saving, investing, spending and so on. There is no better time than April to start the planning process as you have just gone through the exercise of collating your finances for your taxes. Use those numbers to your advantage and get together a financial plan and an investment policy statement. These two documents should become the foundation of your financial life. Starting According to experts, most people need to begin at the beginning. That is: starting the process to get their financial records in order so that they know about their assets and liabilities. This process will help one figure out how much money s/he has to save, invest, and spend. It may also tell you that you have to first focus on getting rid of some liabilities before dreaming about great investments. Around this time, salaried employees receive annual bonuses and the tendency is to splurge on vacations or consumer goods. Instead, they should try to repay their liabilities. If not the entire debt, they should look at repaying at least a part of it. Any credit card outstanding, particularly, should be cleared as soon as possible, as it is the most expensive form of debt.   Interest rates on credit card outstanding are in the region of 39-44% per annum. Repaying other expensive loans like personal loans, too, should be the priority. Next, you should create a contingency fund to tackle unforeseen expenses. These apart, additional limp sum inflows should be used for plugging the gaps in your financial plan. Tax First You may remember the cliche about taxes — you can't escape death and tax. That is why it is always a good idea to start with tax planning. Most individuals postpone this task to the end of the financial year. However, you should remember that tax-saving is not a goal in itself, but is an important constituent of your overall, long-term financial planning strategy. Therefore, it makes sense to get started with this right at the beginning of the year. You could look at systematically planning for your section 80C investments, health insurance etc, starting from April. This approach will help prevent the last-minute pressure towards March-end. Also, if you earn income from sources like rent or interest on bank deposits, there is no better time than April to plan for the advance tax to be paid. April is a good time to take stock of your advance tax liabilities and plan towards discharging it during the year. For instance, say, you are a salaried individual in the highest tax bracket and also earn income from rent or interest from fixed deposits, which amounts to over Rs 10,000. Now, it is possible that your bank is deducting tax at the rate of say 10% on your interest income, whereas the rate applicable is 30%. So, there will be a differential of 20%, which will constitute your advance tax liability. This amount has to be paid to the I-T department in three instalments in the months of September, December and March. If, for some reason, you skip an instalment, you will be charged an interest of 1% per month when you pay the next tranche three months later. Therefore, if you start planning in April, you will be able to manage your cash flows better and avoid this penal interest. Another thing you have to remember is that saving or investing regularly to meet your tax-planning goals also yield you better returns from these avenues. Investing early in the year in other tax-savings investment plans like PPF, Ulips, pension plans and so on, which have long lock-in requirements, will maximise returns for the investing year; at the same time, also allowing exit in the beginning, at maturity. Investing lump sum in PPF, which offers fixed returns, yields the best returns. As always with investing, the earlier you start the better, as you let your money compound longer, thus earning more. If you have a balance which can be saved via an investment, the earlier you do it the more your money will work for you. You can apply the same principle when it comes to your investments. It is always better to opt for the systematic investment plan (SIP) route to invest in equity mutual funds, including equity-linked savings scheme (ELSS) to save taxes under section 80 C. My primary recommendation would be to get started on an equity ELSS SIP and systematic investments in RGESS (Rajiv Gandhi equity savings scheme) 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS 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

HDFC FMP 405D April 2013 Posted: 23 Apr 2013 04:51 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) HDFC Mutual Fund has extended the new fund offer (NFO) period of HDFC FMP 405D April 2013 (1). The scheme will close on April 23, instead of April 17. 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS 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

Stocks for retirement? Posted: 23 Apr 2013 03:58 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) It's time for a reality check for government employees who believed their NPS investments will outperform the traditional Provident Fund. Despite a 15% of equities, the NPS funds for government employees have given a return of 8.78% in the past five years, compared with the 8.62% return delivered by the Provident Fund during the same period. Recent reports have suggested that NPS funds have given good returns. But those calculations were based on point-to-point NAV returns and did not truly capture the returns of monthly investments. This is why our calculation is based on the monthly contributions starting April 2008 till March 2013 to the NPS fund managed by the UTI Retirement Solutions. Put simply, these are the SIP returns of the fund for the past five years. Pension Fund Regulatory & Development Authority (PFRDA) chairman Yogesh Agarwal is not surprised by these numbers. There can't be a big difference because the government allows only 15% of the corpus to be invested in stocks. The PFRDA wants the government employees to be allowed the same investment choices in the NPS as other investors. A private sector investor in the NPS can choose his asset allocation. Bullish investors can put up to 50% of their corpus in equity funds while risk-averse can allocate their entire portfolio to debt funds. But a higher equity exposure may not have helped boost returns. In the past four years, the equity funds of the NPS for the general public have lagged debt funds. The calculation is based on the NAVs of the first reporting day of every month since June 2009. Aggressive investors, who allocated the maximum 50% to equity, have earned an average 7.3%, while balanced investors earned 8.3%. However, the biggest surprise was the return earned by ultra-cautious investors, who steadfastly stayed away from the stock market. They have earned an average 9.74%. Should you invest in equity? For investors the big question is: should they expose their retirement savings to a volatile asset class such as stocks? Central PF Commissioner It is possible to earn good returns without compromising on safety. The EPFO has recently liberalised the investment norms for the Provident Fund, which could help the EPF earn 50-75 basis points higher returns. However, market experts scoff at this ultra-cautious approach. Their contention: a 100% debt portfolio will never beat inflation. Financial planners too insist that you can't ignore equity when investing for retirement. You need to have some portion in equity, otherwise you might miss your pension target. How much is enough? The problem lies in defining the 'portion' as a percentage of retirement savings. Every individual has a different risk profile and various investment options offer different levels of equity allocation. The NPS funds for government employees put 15% in stocks and private NPS investors can invest up to 50% in this volatile class. If you have a unit-linked pension plan from a life insurance company, you can put up to 90% of your investments in equity. There's also a rule of thumb that says one should have an equity exposure of 100 minus one's age. So, at 30, you should have about 70% of your portfolio in equity. At 55, the exposure to this volatile asset class should have been pared down to 45%. In fact, the NPS offers an auto choice where the investor's age decides the equity exposure. The 50% allocation to equity reduces every year by 2% after the investor turns 35, till it becomes 10% at the age of retirement. So, how much should you allocate to equity when saving for retirement? The portfolios of some of the top performing MIP mutual funds provide some answers. These schemes have 15-25% of their corpus invested in stocks. The equity exposure of the Birla Sun Life MIP II Savings 5 is capped at 10% and has averaged 6.8% in the past five years. Yet, its SIP returns since April 2008 are marginally lower than those of the other top performing MIPs. So, higher returns don't necessarily require higher risks. Retirement is a non-negotiable goal. The worst thing you can do is to be lured by returns. Studies have shown that when it comes to long term goals such as retirement, the time at which you start saving and the amount you put away have a greater bearing on your final corpus than the return that your investment earns. In the organised sector, retirement savings are compulsory, automatic and the quantum is linked to the income. As the income of the investor goes up, so do his savings. In fact, superannuation benefits alone can fulfil the retirement needs of an investor if he is disciplined. If one starts putting 2,500 a month in the PF or the NPS at 25 (with a matching contribution from his employer and a 10% increase in salary every year), even a modest return of 8% will grow his corpus to 2 crore by the time he retires at 60.  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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS 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

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