Prajna Capital |
| Posted: 26 Jun 2013 05:11 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
It has a diversified portfolio in companies with large market capitalisation that are highly liquid. The fund managers follow a combination of value and growth investment with bottom-up stock picking. Further, the fund maintains an average allocation of 85 per cent in large caps. Investments in quality stocks are also retained for long stretches, espousing the buy and hold strategy for the long term. Fund managers also endeavour to stay fully invested with an average equity allocation of 92 per cent. There is no restriction on the allocation to stocks and sectors, with investments in several stocks exceeding 5 per cent frequently, such as Infosys and Bharti Airtel at the moment.
Performance
Although it is the largest fund in the category, it has underperformed the category average only on four occasions. A top-2 quartile performer 15 out of 20 times, it has been in the top quartile consistently from 2008 to 2011, though in 2012 it slipped to the third quartile because of marginal underperformance vis-a-vis category average.
Fund performance is achieved with investments in quality large-cap stocks such as Infosys, L&T, Reliance, BPCL, ICICI, BHEL, ITC and SBI which have been in its portfolio for the past 5 years. This fund tends to have phases of underperformance, especially in the short- to medium-term. Currently, the fund is overweight on healthcare and communication and underweight in FMCG, with exposure to metals shooting up in the past three months. A safe bet during bear phases, this fund checked its fall much better than peers in 2008 and 2011.
Why Invest?
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
|
| Understanding the Housing Loan Posted: 26 Jun 2013 04:19 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Buying own house is one of the most important goal in everyone's life. Looking at the rising property prices some purchase it as investment and many wants to avoid the stay on rent and thus wants to have own accommodation. The increase in housing prices has in turn lead to increase in demand of housing loan as very few can afford to buy property on cash/lump sum. Along with the comfort of paying back loan in installments housing loan comes with lot many tax benefits. Many investors who even can afford to pay in lump sum prefer going through housing loan route as the tax benefits reduces the net outflow of interest. Understanding housing loan tax benefits is very important as one can take multiple advantages from this if used rightly. Understanding tax benefits of interest payment under section 24, principal payment under Section 80C, benefits under joint housing loan, second housing loan etc. makes this concept more interesting.
Before going ahead with the details on housing loan tax benefits, lets first understand the basic terms related to the housing loan:
EMI: Equated Monthly instalment (EMI) is the term used for the monthly payments made for repaying home loan. EMI has 2 constituents – Principal and interest. Principal is the portion of loan capital amount and interest is what bank charges for that loan. In the early years of repayment, EMI consist of higher interest portion and lesser principal amount. But as time passes your principal payment increases and interest reduces.
Self-occupied house: As per Section 23(2) (a), a house property shall be termed as self-occupied property where such property or part thereof : (a) is in occupation of owner for the purpose of self-residence, (b) is not actually let out during the whole or any part of previous year; and (c) no other benefit is derived by the owner.
Deemed to be let out: If an assessee occupies more than one property, he is allowed to treat only one property as self-occupied at his option. The remaining self-occupied properties shall be treated as "deemed to be let out".
Joint home loan: Joint home loan is the loan where there is more than one borrower i.e it is a loan taken jointly by more than one person. A joint home loan can only be availed by minimum of two and maximum of six applicants. A joint housing loan is given to married couples or close blood relatives like parent and child. Usually banks insist that all co owners of the home must be co borrowers.
Pre EMI interest: No EMI gets started, till the time loan gets fully disbursed. As happens in housing loan with a construction linked plan, no EMI starts till the offer of possession by the builder. Borrower just has to service the loan interest. So the interest amount which has been paid before the starting of EMI called as Pre EMI interest or Pre construction EMI (which is only the interest part).
The Idea of explaining the above terms is to help you understand the taxation under housing loan in a much better way.
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
|
| Mistakes of Retirement Planning Posted: 26 Jun 2013 02:46 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
1. Buying retirement plans for retirement planning can be suicidal:
People often say what's in a name. In the context of financial planning, name does matter. There is a child plan, retirement plan etc. for their respective uses.
If you ever thought, retirement plans sold by financial institutions and mutual funds are best solutions for you, it is time to wait and ponder.
There is a likelihood that you will mess up your retirement planning goals by buying these products. Most of these plans offered by insurance companies are in form of unit linked insurance plans (ULIPs). Some plans barely offer even decent returns.
As far as mutual funds are concerned, any scheme with retirement plan makes no sense. You may probably find a higher exit load for those schemes which are meant for retirement planning. There is no substantial product differentiation.
It is important for an individual is to focus on building a corpus. This may include investing in equity and quality bonds along with other investment options.
2. Misinterpretation of inflation:
Inflation makes a significant impact on retirement planning. It is important you watch out for how inflation impacts your life. Don't look at the wholesale price index (WPI) or consumer price index (CPI) number. None of them reflect inflation number for you.
While government may play with these numbers for policy-making for a common man, these numbers do not mean much except for giving a directional call.
This means that an upward moving CPI number gives an idea about rising inflation. Make your own expense chart and see how inflation impacts you.
It is possible that inflation number shown by the government is 5 percent, while your expenses adjusted with inflation have gone up substantially, without adding of any new type of expenses.
Your retirement corpus increase should get aligned to the inflation number observed by you and not any other government published numbers.
3. Frequent churning of portfolio meant for retirement:
Retirement planning is a long term strategy. However, very often people get influenced by events in the financial markets, especially with respect to the volatility in the variable income products like equity and mutual funds.
While it is difficult to stay invested when returns are turning negative, the need is to stay invested.
Also regular investing makes sense even during the time when things don't look so hunky dory. Make higher investments in initial years of retirement planning to ensure that you get benefit of power of compounding.
If there is a need to withdraw money from retirement corpus, you can withdraw. But, ideally, never touch your retirement corpus and never use it for anybody.
4. Never overestimate returns:
It is better to start with a conservative estimate of returns. People generally start with an assumption of high returns in equity and equity mutual funds while practically returns may be lower.
As a result of this estimation in error, the requirement of investment for creation of a specific corpus may get derailed.
So it is better to start with a conservative estimate of returns and higher allocation of savings for investments for retirement planning
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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