Prajna Capital |
- Systematic Investment to invest in Debt Mutual Funds
- HDFC Sensex Plus Index Fund
- Canara Robeco MF dividend
| Systematic Investment to invest in Debt Mutual Funds Posted: 25 Jul 2013 09:56 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
MOST people think of systematic investment plans (SIPs) while investing in equity funds. But this route has multiple uses and can be relevant to other modes of investment too. It is necessary thus to look beyond equities. For example, there are debt funds. The SIP route can be used to invest in these funds. Here are some factors that should be considered.
Regular investing: One reason why an SIP may be adopted to invest in a debt fund is that this lets you invest on a regular basis. This has more to do with the fund flow available with the individual. When this happens, the amount has to be invested and this is possible only by using the SIP route as this introduces an element of regularity into the whole process. The worry otherwise is that there may be times when the investor forgets to invest the amount and the process may be disrupted. The benefit of rupee cost averaging present in case of equity funds might not be as relevant in this case.
Build up of capital: The manner in which the situation plays out is like this: There is a slow-build up of capital over a period of time because of regular investments being made.
This ensures that there is a slow but steady movement towards the investor's goals. As for debt funds, they should not be considered a route where investment should only be a lump sum as there are other ways in which the individual can achieve that.
This is significant because there has to be moves whereby the individual investor sees that there is growth towards the goal and that he is actually contributing to the process in an effective manner.
No lock-in: One of the best features of the entire process of investing through the SIP route is that this provides additional benefits, compared to other routes. One way in which the individual would actually go about the process is to invest in a recurring deposit scheme.
But there is a problem here, as the individual would have to invest for a fixed time and the total amount would be available only after this point of time. On the other hand, when the debt fund route is used, the restriction on taking out funds is removed and this provides an element of comfort for the investor. There is also no lock-in when the debt fund has been selected though the investor has to be aware that there could be an exit load that is levied in several schemes for withdrawal before a specified date.
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
|
| Posted: 25 Jul 2013 07:16 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) HDFC Index Fund Sensex Plus If you are looking to buy a fund that is close to mirroring the index, then HDFC Index Fund – Sensex Plus Plan (HDFC Sensex Plus) is a good option. The fund is also a good candidate to buy into market dips such as the present one. With a track record in excess of 10 years, this index fund delivered 20% annually since its launch in July 2002. That is a good 4 percentage points more than the Sensex. The fund and suitability This fund will suit the following investors: one, those wanting to limit their risk by taking exposure to bellwether index stocks. Such investors can do a regular SIP in this fund. With a very low expense ratio (1 per cent) and a limited exit load period (30 days), this fund is ideal if you wish to test waters in equities. Two, the fund is a good candidate for those looking for a vehicle to capitalize on market falls. In significant market falls, instead of scouting for individual stock/fund opportunities, it is a good idea to buy in to the bellwether index if you do not have much time to track/choose funds. A market fall of 5 per cent or more often provides opportunities to buy small amounts and average costs. For those wanting to use tools such as the 'trigger option', an index fund can be a good low cost option. HDFC Sensex Plus, although actively managed to the extent of stocks outside the index, charges only as much/lower than most other index funds, although it has delivered more, thanks to the active part of the portfolio. The Sensex has currently fallen by about 6 per cent from January to date. Trailing price earnings ratios have fallen from over 18 times to 16.5 times. While forecasts are clearly not factoring much upside on earnings, falling commodities as well as less painful interest rates may mean that margins and eventually earnings could make a slow recovery. While earning downgrades continue, the quantum is much lesser now, suggesting that it could be bottoming out. That means the next few months, at least until the December earnings, could provide opportunities for stock accumulation. Hence, investors could use dips of say 5 per cent or more in the index to buy into funds such as HDFC Sensex Plus, which are similarly positioned. Performance and portfolio While it just matched the index performance in 2009, it started consistently beating the index since. In fact, it has managed to keep pace with, or outperform the category average of active equity funds in some of those years. HDFC Sensex Plus has all the 30 Sensex stocks, roughly in the same weights as the index. But the stocks outside the index are an interesting mix of mid- and large-sized companies. Some of them, such as the stock of Solar Industries, can be seen across many HDFC funds. Evidently, some of them are house calls. India Glycols, Navneet Publications and SJVN are also some of the interesting picks.
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
|
| Posted: 25 Jul 2013 05:35 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Canara Robeco Mutual Fund has announced dividend under the following schemes: 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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