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- When MF schemes merge – What should you do?
- Relinquishment Deed
- FMPs are Best Investment option now As Interest Rates Rise
| When MF schemes merge – What should you do? Posted: 29 Aug 2013 05:11 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Stay invested if the scheme is merged into a broad- based fund with low volatility
With the Securities and Exchange Board of India expressing displeasure at the rising number of similar- themed schemes, mutual fund houses are making a conscious effort to merge schemes. In 2012- 13, 27 mutual fund schemes were merged compared with 46 in 2011- 12, indicates Value Research data.
This is good news for investors. After all, it isn't easy to choose from 2,500- 3,000 schemes. If the fund it's being merged into is already a strong one, its returns will remain steady, irrespective of the merged scheme being weak or underperforming.
Also, it's better if the scheme merges with a broad- based/ diversified equity fund in which volatility is less.
Sample this: When thematic fund Reliance Natural Resources Fund was merged with Reliance Vision, a largecap fund, an exit was feasible for investors who believed in natural resources as a growth story and didn't want the investment objective to be diluted.
For those investing without particular investment preference, a merger doesn't make a difference. Suresh Sadagopan of Ladder 7 Financial Advisory Services recommends one should ensure he/ she isn't investing in something the portfolio concerned already has enough exposure to. In other words, if you would end up with a large- cap fund ( after a merger) and if you already have some money locked into a similar fund, weigh your options and take an investment call accordingly.
If both the schemes that are being merged are underperforming and weak, one should not think twice and clearly opt out of it Serious investors might also consider an exit from a merged scheme in case the fund manager changes. While this is an important factor, your investment decision can't depend solely on this parameter. It's the fund house's track record that needs to be taken into consideration, not just the choice of fund manager. If you have confidence in the fund house and it has some good performing funds, stay invested, irrespective of the fund manager.
Usually, the fund house will intimate their investors at least 45 days before taking a decision on a merger. The fund house doesn't levy any exit load to such investors during that period. Therefore, investors should use this time to evaluate their options and take calculative decisions.
From a fund house's point of view, the recent reduction in securities transaction tax (STT) from 0.25 per cent to 0.001 per cent is an attraction towards a merger.
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: 29 Aug 2013 01:32 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
What is a Relinquishment Deed?
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
|
| FMPs are Best Investment option now As Interest Rates Rise Posted: 28 Aug 2013 11:54 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Mutual Fund FMPThey offer tax advantage and higher returns than bank fixed deposits but little liquidity
FMPs also offer nearly nil interest rate risks at the time of redemptions. For example, if you invest in a short-term income fund which is usually open ended and want to redeem after a year. Here, in case the interest rate scenario is adverse, you may end up getting a lower rate of return at the time of redemption. On the other hand, if you are invested in an FMP, you can reasonably calculate the kind of return you would get at the time of redemption
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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