Friday, August 30, 2013

Prajna Capital

Prajna Capital


Short-term Funds Better Investment Option now

Posted: 30 Aug 2013 02:05 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Bond market has gained volatility as the central bank and govt attempt to prop up a flagging rupee, resulting in losses for investors in debt funds


Now debt investors have started closely following the bond market. The government and the Reserve Bank of India's efforts to prop up the rupee has made the bond market extremely volatile. The benchmark 10-year 7.16% 2023 security moved up from 7.50% to 8.88% last month, leading to losses for investors in some debt funds. According to Value Research, an independent mutual fund tracking firm, short-term debt fund category is down 0.25% and income funds category is down 1.52% during the same period.


With the central bank's primary aim is to stabilise a falling rupee, the tightening measures are likely to continue for some time. This means interest rates in the near term are likely to remain high. Investors should invest in short-term bond funds.


Short-term funds generally have a portfolio consisting of certificate of deposits, commercial paper and bonds with less than one year-tomaturity.


As the investments are short term in nature, the portfolio does not carry high interest rate risk. Fund managers also invest in highlyrated securities.


Experts believe the poor performance of some debt funds may continue as there is no clarity on rupee yet. The rupee fell to an all-time low of 62.03 against the dollar on Friday.


In the near term, there is no clarity on where the rupee will stabilise. In such a scenario, tightening by the RBI is likely to continue, which will keep interest rates high.


Among the steps announced last week, the RBI reduced the limit for remittances made by resident individuals from $200,000 to $75,000 per financial year, disallowed use of liberalised remittance
scheme to buy property outside India and has reduced limit for overseas direct investment (ODI) under automatic route for all fresh ODI transactions.


These measures, along with the tightening measures taken in July, led to a sharp rise in short-term rates. Shortterm funds offer a yield-tomaturity (
YTM) of anywhere between 10.25% and 10.50%%, giving investors a good entry opportunity.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Reliance Interval Fund - Monthly Interval Fund Series II

Posted: 30 Aug 2013 12:19 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
Monthly Interval Fund Series II under Reliance Interval Fund is on 29th August and 30th August, 2013

Minimum Application : The minimum investment amount under scheme is Rs. 5,000 and in multiples of Re. 1 thereafter.
 

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Fixed Maturity Plans - What to look for before you invest

Posted: 29 Aug 2013 07:43 PM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Fixed Maturity Plans (FMPs)



While FMP offer several advantages over other fixed income products when interst rates are rising, there are still certain factors that investors should keep in mind before taking the plunge. Here are a few of them...


Time horizon:

Remember although Sebi rules mandate that all FMPs should be listed on the bourses, the ground reality is that there is practically nil liquidity in these instruments since there are hardly any buyer or seller in the market. So as an investor if you are investing in an FMP, be sure that if you want the money even in case of even an emergency, you are unlikely to get that back then. Instead you have to wait till the day of redemption to get the money invested in that FMP in your bank account.


Match fund manager's investment horizon to yours:


In FMPs, the fund manager takes a time horizon for his/her portfolio of investments and he/she buys the instruments the time horizons for which perfectly match with the time horizon of the plan. The investor too invests with exactly the same time horizon. This is not the same in case of short-term income fund. In these funds even if you invest with say three or five years time horizon, the same as the fund manager at the time of entering, but after a year the fund manager may still maintain a three or five year time horizon, and would have churned his/her portfolio. On the other hand, after you have remained invested for a year, your time horizon is two or four years. This is one of the major differences between FMPs and short term income funds that investors should keep in mind.


Tax advantage:

Like most mutual fund schemes, FMPs too come with certain tax advantages. If you invest in an FMP which matures after more than a year, say even a 367-day FMP, you stand to gain from long term capital gains options under the income tax act. Under this option, you can pay a 10% tax without indexation, or 20% with indexation benefits. So clearly this makes sense if you are in the highest income tax bracket, which is you pay income tax at the rate of about 33%. If you are in the 10% bracket, then investing in FMPs may not make much of a sense because then you will pay the same rate of tax for FMPs as well as FDs, but by investing in FMPs you would have less liquidity.


Portfolio:

The portfolio of an FMP is an indication of the risks you are taking by investing in a particular plan. If all of the portfolio is invested in bank certificates of deposits (CDs), then the risks are much lower. On the other hand, if there are commercial papers (CPs), that are likely to add to the total risks associated with the FMP. Seen from the other side, having CPs in the portfolio may mean slightly higher rates. So as an investor before investing in an FMP you should have a clear idea about the risks you are willing to take, and accordingly you should settle for the returns that you would get at maturity.


Liquidity:

This is one disadvantage for FMPs, thay once you are invested in it, there is almost no way you can come out of its prematurely. So keep in mind that you put only that part of your fund in this better yielding and tax efficient instrument that you will not need till the time of maturity of the instrument.


Fund house:

Although all FMPs look like the same, offering nearly the same level of indicative yields, the fund manager and the fund house from which the FMPs are coming make a huge difference. If you are investing in the FMP of a good fund house, the risks associated with your investments are reduced significantly. This is more apparent at the current scenario when the bond market is extremely volatile and several cor porates are stretched to their limits.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

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