Prajna Capital

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• L&T Tax Advantage Fund
• Bank FDs earn negative returns - Know How?
• UTI Fixed Term Income Fund Series XV - VIII

L&T Tax Advantage Fund Posted: 18 Jul 2013 06:07 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)   L&T Tax Advantage - earlier Fidelity Tax Advantage Investors looking for large-cap oriented funds for tax-saving purpose can consider exposure to L&T Tax Advantage (earlier Fidelity Tax Advantage). This fund had a lack luster year in 2011, partly due to some of its sector exposures that had played out their time and perhaps as a result of change in management. These short-term hiccups are likely to end, what with the fund now coming under the tutelage of leading fund manager Soumendra Nath Lahiri. S.N. Lahiri took over as Head of Equities in L&T Mutual about a quarter ago. He was earlier with Canara Robeco Asset Management. You may find the fund's three-year annual return of 9.6 per cent mediocre, although higher than its benchmark BSE 200's return of 4.8 per cent. What you make need to take note of is its rolling three-year returns; in other words, what the fund delivered over any three-year time frames, irrespective of when you invested. Such return, at 14 per cent annually since inception, may give a better picture of its track record. Suitability L&T Tax Advantage has been a large-cap biased fund even while it was under the Fidelity basket. Its strategy has not changed post the Fidelity buyout by L&T Mutual. Its almost 80 per cent holding in large-cap stocks means that it may not deliver returns as high as some of the top funds in the category which have higher exposure to mid-cap stocks. It can also underperform in a momentum driven rally such as the one in 2012. But if you are looking for tax-saving funds with limited risk and volatility then this fund will be a good choice but next only to Franklin India Taxshield. As the fund has also just been taken over by the new manager, you will have to give some time for the fund to catch up on performance. Exposure to the fund can therefore be limited at this point. Performance L&T Tax Advantage scores as much as peers such as Religare Tax Plan and Canara Robeco Tax Saver on a risk adjusted basis (measured by sharpe ratio) over the last three years. It also comfortably beat its benchmark BSE 200 82 per cent of the times on a one-year rolling return (rolled daily) over the above period. Interestingly, the fund has amongst the lowest standard deviation in the tax-saving fund category. That means, its returns do not swing far from its average. While this means its downside is limited (as seen in 2008 and 2011), its upside potential is also not very high. In the last one year, the fund scored 2 percentage points below its benchmark. It did not also manage the kind of robust rally that many funds experienced. We believe this is a more temporary phenomenon. For one, the fund held on, a bit too long, to sectors that had already run out of steam. It was a little late to prune exposure to sectors such as consumer non-durables as well as IT. It had high exposure to premium IT stocks that under performed in 2012. While the fund did reduce exposure to blue chip stocks in this segment, it still held them. The recent rally in stocks such as Infosys and TCS is likely to have benefited the portfolio. The under performance could also have been caused to an extent, by change in fund house and the uncertainty surrounding such change in terms of managing the funds. In a recent call, the fund manager has stated that the fund has been pruning exposure to consumer non durables and has also been reducing weights to pharma. We believe these tweaks together with the experience that Lahiri brings may correct the minor setback it received. Portfolio L&T Tax Advantage has close to 80 per cent of its assets in large-cap stocks. But it does have some interesting mid-cap stocks as well. Max India, APL Apollo Tubes and Motherson Sumi Systems are some of its offbeat picks in this space that also delivered well. The fund is also likely to scout for stocks in segments such as media and retail that can benefit from regulatory development. 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 Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest 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 MutualFunds 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

Bank FDs earn negative returns - Know How? Posted: 18 Jul 2013 01:33 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)   Holders of fixed deposits have been earning a negative return in real terms for most of the preceding five years, thanks to inflation outstripping interest rates. To make matters worse, depositors continue to be taxed on this nominal income. Although bank fixed deposits have never been tax friendly, the level of compliance has been sketchy. But compliance is slowly getting stricter. In the past, RBI norms required banks to take into account deposits in one branch for the purpose of tax deduction at source—a rule which allowed depositors to break up FDs across branches to avoid TDS. Also, several private banks allowed customers to break up FDs and route them into multiple branches to avoid TDS. But after recent sting operations banks are getting tough and taking into account interest income from all branches for the purpose of TDS. A study conducted by Ashish Das, professor, IIT Mumbai's department of mathematics, shows that for most of the five years since 2008-09 real returns on bank fixed deposits have been negative. The lowest real return was -5.4% in 2009-10 when consumer price index for industrial workers CPI-IW rose by 12.4% and the weighted average deposit rate on term deposits was 6.97%. The weighted average return takes into account the average cost of deposits for banks after factoring in the extent in each maturity basket. Although bankers offer the highest return on deposits of 3-years and above, bulk of bank deposits are around the one-year category. RBI's weighted average deposit rates are available only up to March 2011. However, given that long-term deposit rates have not crossed 10% and that most deposits are in the one-year basket, it can be safely assumed that the weighted average deposit rates are not above 8.5% for the last two years. The highest real return in recent years has been 2011-12 when the return after being adjusted for inflation stood at 0.2%. 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 Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest 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 MutualFunds 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

UTI Fixed Term Income Fund Series XV - VIII Posted: 17 Jul 2013 11:50 PM 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)  UTI Fixed Term Income Fund Series XV - VIII (368 days):         New Fund Offer opens on : Thursday, July 18, 2013 New Fund Offer closes on : Thursday, July 25, 2013 Allotment Date : Friday, July 26, 2013 Scheme : 368 days Maturity Date : Tuesday, July 29, 2014 Please note there will be two plans namely Regular Plan and Direct Plan. Each Scheme / Plan(s) offers the following Option(s): (i) Growth Option (ii) Quarterly Dividend Option with Payout and Reinvestment facility (payable in the last week of March, June, Sept & Dec) (iii) Annual Dividend Option with Payout and Reinvestment facility and (payable in the last week of March) (iv) Maturity Dividend Option with Payout facility 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 Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest 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 MutualFunds 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

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