Prajna Capital

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• It is time to review your debt investment portfolio
• Do Mutual Funds Help reduce Risk ?
• ICICI Prudential Capital Protection Oriented Fund IV Plan C - 60 Months Plan

It is time to review your debt investment portfolio Posted: 20 Aug 2013 05:12 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)     Debt funds have lost heavily after the RBI tightened liquidity. Here's what you should do with your debt investments    As the Reserve Bank of India (RBI) brought down interest rates, his funds shot up almost 9% in just five months. However, a large part of those gains were wiped out when the RBI tightened liquidity in the debt market on July 15. What lies ahead With the rupee continuing to trade at around 60, the RBI's liquidity tightening steps may not end in a hurry. "The recent RBI measures may remain in force for a few months and yields may sustain at current levels till these measures are reversed. In the worst case scenario, if the rupee continues to depreciate, the RBI may have to resort to more draconian measures that would hurt India's fragile economic growth. Several domestic and foreign brokerages have already cut India's GDP growth projections. Our current growth projection for 2013-14 is 5.6%, and the recent measures have increased the downside risk to it. Lower economic growth could result in FIIs withdrawing money from the equity market, where their investments are 10 times higher than in the sovereign debt market. The panic could then be more widespread. The other, more optimistic, scenario being projected by market experts is that the RBI's basic monetary policy stance has not altered. Once the rupee stabilises (over the next 2-3 months), the liquidity tightening measures are likely to be withdrawn. Rate cuts could then follow after a gap. A focus on reviving economic growth should lead to lower interest rates across the yield curve in the medium term. What should you do Investors should either move to lower risk categories or stay put. Investors who can't digest volatility will be better off with short term and ultra short-term bond funds at this juncture. The current fall in prices even spells opportunity. With securities in fund portfolios being marked lower now, the returns (via daily accruals) going forward will be relatively higher. Experts are optimistic that investors will recoup their losses in due course. The losses that investors have suffered in their portfolios will be wiped out in the next 3-4 months. With interest rates having risen, debt fund managers will raise the average maturity of their portfolios. These will stand to gain whenever rates are cut next. The advice to hold on to your long-term debt funds, of course, assumes that you have the necessary risk appetite and a holding period of at least 12-18 months. Let us turn to what your response should be in individual debt fund categories. Liquid funds: Do not redeem your liquid fund investments as whatever losses occurred after the July 15 tightening were likely to be temporary. Some retail investors who park their money in liquid funds for transfer to equity funds via systematic transfer plans (STPs) should also hold on. Ultra short-term funds: Though a decline in NAV dented historical returns, the return from this category should improve in the future due to the sudden jump in yield for maturity up to a year. Hence, investors should consider this as an opportunity to enter or increase their holdings. Income funds (short-term and long-term): This is the debt fund category that retail investors primarily choose. Since their portfolios have medium or long-term bonds, their NAVs took a severe beating. Several retirees park their money in these funds, especially in the monthly dividend option to get tax-free dividends. Many of these funds may not pay dividends for the next few months. Investors should shift out of the dividend option to the growth option and use systematic withdrawal plans (SWPs) to fund their regular monthly needs. The recent increase in dividend distribution tax (DDT) is another reason why they should do so. Gilt funds (short- and long-term): Though there is no default risk in these categories, the NAV volatility is the highest because government bonds are very liquid. The retail investors who entered these funds recently in the hope of gaining from falling interest rates would be sitting on losses right now. Investors should learn about the risks in these products and not invest in them based on hearsay or on the advice of someone who is not fully aware of the risks. Exiting at this stage would mean big losses. Besides, interest rates may move down once the turbulence is over. Any rise in interest rates (and, hence, fall in NAVs) in the short term, if it happens, could even be an opportunity to invest an additional sum in long-term 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 ) 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

Do Mutual Funds Help reduce Risk ? Posted: 20 Aug 2013 04:05 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) Common misconception: Many investors and even some investment experts believe that mutual funds are an asset class by themselves, much like equity or gold. MFs are, in fact, a tool to invest in different classes but not an asset class themselves Available asset classes: Mutual funds offer the choice to invest in equities, bonds, gold. One can invest in equities and bonds simultaneously as several funds offer a mix of asset classes. They even allow one to invest in government securities, which retail investors may otherwise find difficult. The market regulator is also looking at allowing mutual funds that invest in real estate Lower risk: Since MFs allow investors to divert funds in different asset classes, they also help lower the risk 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

ICICI Prudential Capital Protection Oriented Fund IV Plan C - 60 Months Plan Posted: 19 Aug 2013 10:45 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)  Launch of ICICI Prudential Capital Protection Oriented Fund IV Plan C - 60 Months Plan, with the following features- Tenure: 1825 days NFO Period: 21st August to 3rd September, 2013 MICR cheques:Till end of business day on 03rd September, 2013 RTGS and transfer cheques: Till end of business day on 03rd September, 2013 Switches: Till cut off time(specified for switch outs in the source scheme) 03rd September, 2013 Date of Maturity: September 04, 2018, subject to change in the NFO closing date, if any Plans and Options: Regular with Cumulative and Dividend Payout -Default Sub Options -Cumulative Direct Cumulative and Dividend Payout Entry / Exit Load: Not Applicable Minimum Application Amount: Rs. 5000 and in multiples of Re.10 thereafter Benchmark:CRISIL MIP Blended Index. Instruments/ Ratings AAA Not Applicable NCDs 71-76% - Equity & equity related securities - 24-29% 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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