Prajna Capital |
- Ulips are ideal for passive investors to build wealth
- I-T returns may require disclosure of all assets
- You have to Pay extra for buying gold in cash from June 1
| Ulips are ideal for passive investors to build wealth Posted: 03 May 2013 04:58 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
If you have a mediumterm goal, always go for conservative funds as these will ensure a decent return and no loss of capital
IT IS a widely known fact that money invested in equity will generate far better returns in the long-term than other financial instruments. But investing in equity comes with its own set of risks, due to the volatile nature of these investments. In an uncertain economic environment, people are increasingly looking for investments that maximise returns and also safeguard against life's uncertainties. Unit-linked insurance policies (Ulips) are one of the better ways to achieve these twin objectives. Despite the apprehension surrounding investment in these plans, it would be difficult to find better products in terms of return on investment.
The problem consumers face is choosing the right fund for their Ulips. Most of the time, these products are bought on the advice of the agent adviser without ascertaining if the product suits a consumer's needs or not. The problem is compounded when consumers see that many funds have similar objectives. For example, if an investor's objective is to preserve capital and gain returns, there are scores of funds that claim to do precisely that.
Therefore, it is imperative for customers to find out which type of product suits them and make a decision based on clear understanding of their needs and the product's features.
Major types of funds offered with Ulips:
Life insurers offer wide varieties. However, they can be broadly divided into three major types: Growth/aggressive funds: These funds invest major part of their money in equities. Since equities are the ris ties. Since equities are the riskiest investment of all, these funds entail high risk.
Balanced funds:
These funds invest equal amount of money in equity and bonds. Since a significant part is investment in bond, the returns are low compared with aggressive fund. However, this also makes it less risky. The objective of these funds is to provide moderate returns by taking moderate risk.
Conservative funds:
Conservative funds invest major part of the fund in bonds. Since bonds provide fixed return, these funds are considered safest of the three. The return is also low because of higher proportion of bond.
Following are the three most important driving factors to choose the right fund category: Your objective: Your choice of funds should represent your objective. If you have a medium-term goal, you should invest in funds that are conservative as these funds will ensure a decent return and no loss of capital. However, if you want to invest for a longer term, investing in an aggressive fund is advisable.
Balanced funds are ideal for investors with a mid to long-term investment horizon.
Investment period: A younger person has a longer investment horizon and, hence, can afford to invest a larger portion of his or her savings in growth / aggressive funds. An older person would rather invest in conservative funds in order to preserve his capital.
Typically, a person of 30 years should invest 60-70 per cent of her/his money in equity-oriented funds, while a person of 50 years should invest 60-70 per cent in conservative funds.
Risk appetite:
The appetite for risk may differ from person to person, irrespective of the age or the life stage of the individual. Even a young investor may not invest a majority of their savings in equity funds if he/she is risk averse by nature.
Today life insurers offer various options such as systematic transfer of funds that ensure that the consumer's investment hits the market in 12 equal instalments. It works on the concept of rupee cost averaging and, thus, makes the volatility in the market work to one's advantage. This ensures the purchase of more units for same amount at lowered prices thus lowering average purchase price.
In a nut shell, deciding to invest in the right fund is a function of one's risk profile, financial condition, understanding the nitty-gritties of financial instruments and planning with an objective. Ulips are a great way to build wealth for passive investors who either do not have time to study the businesses, or do not have enough knowledge to take right decision.
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 )
------------------ Best Performing Mutual Funds
|
| I-T returns may require disclosure of all assets Posted: 03 May 2013 03:06 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) IN A bid to counter tax evasion, the finance ministry is contemplating making it mandatory for individuals and hindu undivided families (HUFs) to report Indian assets and liabilities in income-tax (I-T) return forms.
The government is considering to introduce a new income-tax return form that will require individuals to disclose all their assets and liabilities, rather than just annual income from various sources, a senior finance ministry official said. The official further said that the decision will be taken in the next two days. Last year, reporting of assets and liabilities was made mandatory for individuals with foreign assets. The official said the intention is mainly to get information about those high net worth individuals (HNIs) who have not been declaring all their assets to avoid paying wealth tax. In the financial year 2012-13, wealth tax collections stood at Rs 866 crore much lower than the budget estimate of Rs 1,244 crore.
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 )
------------------ Best Performing Mutual Funds
|
| You have to Pay extra for buying gold in cash from June 1 Posted: 03 May 2013 01:14 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
CASH purchase of gold, including coins and articles, exceeding over Rs 2 lakh will attract 1 per cent tax from June 1.
The sale of bullion (including coinsarticles) in cash in excess of Rs 2 lakh shall be subject to TCS (tax collection at source) at rate of 1 per cent. Similarly, sale of jewellery in cash in excess of Rs 5 lakh will be subject to TCS of 1 per cent, it said in a clarification on the changes made in the Finance Bill 2013. The modified tax provisions will come into effect from June 1. As per the existing provisions, coins are neither included in bullion nor in jewellery, therefore, coins, even when amounting to more than Rs 2 lakh in value, were being sold in cash without TCS. Clarifying that the government has not imposed any new levy, only the exclusion of coin or any other article (weighing 10 gm or less) has been done away with in the Bill passed by the Lok Sabha on Tuesday.
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 )
------------------ Best Performing Mutual Funds
|
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