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Why you need Financial Advisors Posted: 01 Aug 2013 07:01 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Good time to invest in equity
RETAIL investors have largely taken a cautious approach ever since the 200708 global financial crisis, notwithstanding the recovery of FY10 and FY11.
Given the challenging macro-economic backdrop, what strategy should retail investors adopt? We believe retail investors, who have been patiently waiting for some decent returns from equities for the past five years, should not lose heart. With expectations of subdued returns from gold and real estate, this is the right time to look at equities for long-term growth of one's investment portfolio. Under-ownership among retail investors, coupled with expectations of a gradual economic recovery and undemanding valuations (12.0x FY15 earnings) make equity a fairly attractive investment option. Our view on the domestic markets is positive over the next couple of years, as India's economic growth will start to look up slowly but surely on the back of better agriculture sector growth and increased government spending in the run up to general elections. Barring food prices, inflation has been brought under control and is not expected to rise anytime soon. Fiscal consolidation remains well on track. In fact, the FY13 fiscal deficit came in at 4.90 per cent of GDP opposed to the budget estimate of 5.20 per cent. The finance minister has expressed confidence in meeting the FY14 fiscal deficit target of 4.80 per cent of GDP . Good southwest monsoon is likely to boost agriculture output, while large current account deficit (CAD) is also expected to moderate in FY14 on lower gold imports. The upcoming Lok Sabha polls will lead to some pick-up in fixed investments as tends to happen in a pre-election year. The domestic stock market's valuation remains supportive at 12.0x FY15 earnings, which is below the long-term average of 15.0x to 16.0x one-year forward earnings. Retail investors can thus expect good returns from domestic equities over the next two years and recommend increasing allocation towards the same. Retail investors can take exposure to equities via MFs. A variety of equity MF schemes are available in the market. One can opt for systematic investment plans (SIP) in one or more MF schemes -large-cap funds, large-cap cum mid-cap funds and balanced funds. If one is not shy of a direct equity exposure then one can buy large-caps and quality midcaps. Stagger your investments rather than putting a lump sum and stick to a disciplined approach by regularly reviewing your strategy.
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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Debt Fund Investments are for Short Term Goals Posted: 01 Aug 2013 05:43 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Such investments generate higher returns than Bank FDs, and also help save on taxes on the investment
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: 01 Aug 2013 04:22 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Debt funds are not entirely risk-free, as events in the wake of the RBI's July 15 measures demonstrated
Therefore, the NAV of all debt funds will hold a component that represents this steady accrual income. This income will come to the debt fund unless there is a default. However, if interest rates move up to 11%, while this bond continues to pay 10%, you cannot have a market where the same good (same issuer, same structure, same rating, same tenure) has two prices. The old bond is less valuable since it pays less than the current market rate of 11%. Its price falls. The NAV has to correct for this new value. This is the market risk in debt funds.
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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