Prajna Capital

---

• What is the Alternative to Home Loan Insurance Plans?
• Invest in a balanced way into Equiet and Debt
• Maturity of Bond Vs Duration of a Bond

What is the Alternative to Home Loan Insurance Plans? Posted: 03 Jul 2013 01:57 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)   Term Plan is a simple product which might provide you cost-effective insurance against all your liabilities including home loan. Being insured with adequate amount (through term Insurance) for the appropriate tenure doesn't only help you manage your financial risk but may also give you better bargaining power against banks hard pushing their bundled loan products.   Banks and other non-banking financing companies might always be keen to sell you a fresh insurance policy but you should analyse whether you really need it.   Financial planning would help you arrive at the right amount of cover you may need to get yourself insured with while timely reviews would keep your insurance portfolio trimmed and cost-effective. 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

Invest in a balanced way into Equiet and Debt Posted: 03 Jul 2013 12:05 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)   If you are a conservative investor venturing into equity, balance funds can be a good choice     Ritu Arora, a 33-year-old Gurgaon-based corporate communication professional, has been investing in bank fixed deposits, the Public Provident Fund (PPF) and traditional insurance products. Now, she wants to build a corpus for her six year-old daughter's higher education, a goal that is 15 years away. When her friends suggested diversified equity funds, she was aghast at the thought of investing in volatile equity. However, a visit to a financial planner, who advised balanced funds, resolved the issue. Such funds typically invest 65-75% of their portfolio in equity, and the balance 25-35% in bonds. The planner advised that while the long-term nature of her goal justified an investment in equity, the debt component would make these funds less volatile. Like Arora, many conservative investors are turning to balanced funds, which are in a sweet spot currently. Equity is trading at a discount to long-term averages. On the debt side, interest rates appear to have peaked and are likely to either remain at these levels or fall. Hence, a hybrid instrument, which gives you access to both equity and debt in a tax-efficient manner, should find many takers Even from a defensive point of view, balanced funds are well-suited to moderate risk takers. "In times of uncertainty, balanced funds are better suited as they offer diversification into different asset classes within a fund. While equity boosts portfolio returns during market upswings, debt contains the impact of a major fall in the equity market. THE BENEFITS Less volatile: Balanced funds are less volatile than diversified equity funds. First-time investors especially can't handle the volatility that comes with a 100% equity investment. The 25-35% allocation to bonds reduces volatility and allows them to cope better with the emotional and behavioural challenges of investing in equity.   Automatic rebalancing: With balanced funds, you don't have to bother about maintaining your portfolio's asset allocation. The fund does it on your behalf. Investors who lack the discipline to rebalance their portfolios periodically, or for behavioural reasons find it difficult to purchase an asset class that is underperforming, should invest in balanced funds. Tax advantage: As balanced funds keep their equity allocation above 65%, the investor's entire investment is treated as equity for tax purposes and is exempt from long term capital gains tax. Even the debt portion gets a favourable treatment. If, on the other hand, you invest in two separate funds, equity and debt, you will have to pay tax on long-term capital gains in case of the debt fund. Asset allocation: Balanced funds handle the task of tactical asset allocation (making a limited change to your strategic or long-term asset allocation based on your market outlook) on your behalf The investor gets the advantage of the fund manager's expertise in allocating assets on his behalf. If the equity markets fall and valuations become attractive, he increases the allocation to equity. If they become overheated, he maintains a higher allocation to debt. Mid- and small-cap stocks: The fund manager also takes a call on increasing or decreasing allocation to mid- and small-cap stocks. "The fund manager has the flexibility to use a few mid- and small-cap stocks, especially when they are beaten down. In certain market phases there is absolute apathy for mid-caps and small-caps. This allows the fund manager to create alpha even with limited exposure to these stocks. The Drawbacks Poor returns in rising market: In case of an upswing in the market or a bull run, balanced funds' returns may be lower than that of pure equity funds as their equity component is lower. Rebalancing: It becomes more complicated to rebalance if you have balanced funds along with pure equity and debt funds in a large portfolio. So, if you have four equity funds and two debt funds, you can easily calculate their weights in the portfolio on the basis of the number of units and NAVs of each fund. Since balanced funds are multi-asset products, you have to dig deeper and find out the weightage of equity and debt in the portfolio at a given point. Lacklustre performance: Even balanced funds flounder in certain market conditions. First, when interest rates are rising, both equity and debt instruments perform poorly. Second, when there is a high degree of stress in the macro-economic environment, equity performs poorly as investors turn fearful, while corporate bonds underperform due to fear of default. However, remember that in adverse equity market conditions balanced funds are likely to fall less than pure equity funds. Watch out for… Here are some of the risks that a balanced fund may incur. One, the fund manager's equity allocation may be on the higher side. Two, he may venture heavily into mid- and small-cap stocks. Three, on the debt side, the fund manager may take duration risk. Four, he may take excessive credit risk in the debt portfolio. Hence, look closely at a balanced fund's portfolio before investing in one. 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

Maturity of Bond Vs Duration of a Bond Posted: 02 Jul 2013 11:08 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)   Although loosely used in the market, this is not the same. Maturity is a definite number which remains constant for a bond (in terms of when it would mature), while duration is a concept. Although expressed in number of years, duration may vary between fund managers for the same bond. It is usually used to measure the interest rate sensitivity of a bond due to the up and down movements of yields and bond prices. 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

You are subscribed to email updates from Prajna Capital - An Investment Guide To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610