Monday, September 23, 2013

Prajna Capital

Prajna Capital

Building Wealth

Posted: 23 Sep 2013 06:15 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Take small but definitive steps towards building long-term wealth to ensure better and secured future

 

 


For parents, there was a time when grown-ups and working sons were synonymous with both financial freedom and security. But with changing times and new social structures, that concept of financial security has become almost non-existent, at least in most of urban India.


Other than raising their children, parents themselves have to think about their post-retirement financial security. And with the demand and popularity for such approaches increasing, there are financial planners and advisors who are there to help, for a fee of course.


In the run up to the Independence Day, we spoke to three investment planning experts about how they would guide their clients towards financial freedom. Here is what they had to say:

For retired individuals

1) Don't run out of cash: You should keep cash and cash equivalent that can take care of your household expenses for at least six months.

2) Match expenses with income: Suppose of the total Rs 1-lakh expenses per month, Rs 75,000 is on food and essentials, while another Rs 25,000 is discretionary spending. Always make sure you have a regular source of monthly post-tax income of Rs 75,000. This can also include a systematic withdrawal plan (SWP) which can save more taxes for you.

3) Ensure growth: This is for that part of investment that will take care of incremental incomes and help you beat inflation in the years to come, and will insure you against running out of cash. For this, systematic investment plans (SIPs) in good mutual fund schemes are unbeatable options. This can also help you take care of your discretionary spends.

4) Get into another profession: You have retired from a job, but not from your life.

Also learn and/or do something that you always wanted to do but never got the time during your working years, like taking up a hobby, etc. Also, learning how investments are done is a good option. But never spend more than 40% of your time in the new profession and keep 60% of your time reserved for all other things like hobbies, new learning, etc.

 

5) Get a good financial advisor: You have a life partner. Now do a proper due diligence and choose an advisor who will remain a friend for life.


For women

1) Get on top of numbers: Don't let numbers make you cross-eyed! Investing is about understanding yourself and what you want your money to do for you, understanding concepts and then numbers…and someone else can always crunch the numbers for you.

 

2) Health cover: Don't count on the health policy of your company alone to take care of any future medical expenses. You should also have one of your own. Here, the younger you start, the cheaper it is.

3) Don't sign anything blindly: Most women do not take their own investment decisions but depend on the men in their lives like fathers, brothers and partners. Love with your heart, but sign with your brain.

4) Make your CA fall in love with you: Get him to teach you how to save tax. Sometimes you can save more in tax than the stock markets can give you in returns.

5) Don't be afraid to take risks:
Studies show that women are generally risk-averse and so tend to save rather than invest. However, the only way to build wealth is to invest. Riskaverseness could be due to not understanding how financial investments work, so take small steps and dip your foot in the water!

For young and first-time savers

1) Upgrade your skills: As lifecycles of products and services get shorter, and technology innovations cause disruptive changes, growing income consistently will only be possible by investing in oneself by constantly upgrading skills through training, learning and development workshops. Set a training budget for yourself, just like budgeting for regular and lifestyle expenses.


2) Manage expenses: You should learn to differentiate between your needs and wants. Once you learn that, you would be in control of your money in a much better way than otherwise.


3) Get risk cover: You should have adequate risk coverage to protect your whole family from any potential loss of assets and income. So, have a life insurance policy, health covers and also house insurance.


4) Set clear financial goals: Not only that, you should also measure the goals and how far have you reached at a pre-determined frequency. Any divergence from the set course should also call for a course correction.


5) Have a plan B: Learn to have a contingency plan, for everything. Have an investment strategy in place that should take care of your financial needs in case of loss of job, if the rate of interest goes up and your EMIs start shooting up, which in turn may be a stress on your expenses and savings, and various other such situations.

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


Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Strategy to Exit your long term Investments

Posted: 23 Sep 2013 03:52 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 


The genesis of this article is a rather startling piece of advice I read on a personal finance website — to ensure the highest returns, longterm SIPs ( systematic investment plans) in equity should always be between fifth and tenth of a month.

 

The author's advice was based on an analysis of annualised returns of 10- year SIPs (120 instalments) between March 2003 and March 2013, assuming the SIP date as 1, 5, 10, 15, 20 and 25 of every month. The startling part was the returns varied wildly — as much as 1.4 per cent a year between the lowest and highest returns of an SIP made during the same period, but on different dates. Its analysis of investments in a top- performing equity fund showed if you started investing on March 5, 2003, invested ₹ 10,000 regularly for 120 months and sold your investment on March 5, 2013, your investment would be worth ₹ 34.06 lakh ( 19.8 per cent a year). If your investment began on March 25, 2003 and you sold it on March 25, 2013, your investment would be worth only ₹ 31.63 lakh (18.4 per cent a year).

Even after analysing returns from a couple of other top- performing funds, the highest returns were invariably for a date between 5and 10 of a month.

Since the entire idea of an SIP in equity is to do away with the importance of timing, this conclusion would strike at the very root of the SIP route. Clearly, this was a wrong conclusion, based on an incorrect analysis of what was otherwise absolutely correct data. So, what was wrong? In March 2013, net asset values (NAVs) of the fund swung widely, in line with the stock markets. The number of units accumulated in each scheme did not really differ significantly, irrespective of the date on which the SIP was made. What was making a major difference in the final return was the NAV as on the date of sale — this differed widely and was usually higher during the first half of the month. In fact, if you consider the example cited earlier and assumed in all cases, the sale happened on a fixed date (say March 30, 2013), irrespective of the date of the SIP, the difference in returns between various SIPs drops to insignificant levels.

Averaging the returns through more complex calculations re- confirms this — it doesn't matter what your SIP date is, as long as you are consistent in investing every month. The number of units accumulated at the end of your investment cycle wouldn't vary significantly, irrespective of the date on which you invest.

Clearly, the conclusion that your SIP date should be between 5 and 10 of a month was incorrect. But what the analysis correctly showed was your return could ( in most cases it does) vary widely, based on your SIP date, if you blindly choose the same date as your big- bang single exit date.

The correct conclusion is obvious — just as you eliminate the impact of timing by investing in an SIP mode, you must also exit systematically. Ideally, you should exit in the same extended fashion in which you invest, though this is unlikely for most people.

You could seek to minimise the impact of the exit's timing by systematically transferring from riskier asset classes such as equity and gold to a relatively low- risk asset class such as debt. What most people, therefore, need to do is provide for a tapering- off period at the end of the investment cycle. At this time, you could begin a systematic transfer plan (STP) in a debt product.

Despite the recent upheavals in debt funds, a systematic transfer into a short- term fund remains a good option for the tapering- off period, as long as there is no fixed inviolate date for the goal.

Short-term debt funds tend to recover the losses relatively quickly, despite unprecedented events such as the RBI's steps in July 2013. But if your risk profile is really low or there is a magic date for your goal, you could consider systematically transferring into a good bank's recurring deposit scheme during the tapering- off period.

Most people like the no- hassles SIP investment concept. You should also have an STP plan towards the end of your investment period to ensure the discipline you showed while investing isn't lost due to the vagaries of the market at atime when you need the money.

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


Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

BNP Paribas Midcap Fund

Posted: 23 Sep 2013 02:14 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

The fund aims to invest primarily in companies with high growth opportunities in the middle and small capitilisation segment, called 'future leaders'. These companies have been defined as those which have a market capitalisation below that of the 99th stock in the BSE 500 Index and which may or may not be a constituent of the index. The universe also includes IPOs conforming to the criteria.

 

Further, the fund takes cash calls only under special circumstances.

 

Performance


After three consecutive years of indifferent performance, the fund witnessed a turnaround in 2010. It has consistently been a part of the top-2 quartile since then, including a turbulent 2011. Moreover, it also marched ahead of the category average by over 10 per cent in 2012.

 

The small cap bets that have worked for the fund include Lupin, Federal Bank and South Indian Bank. But there have been more misses than hits in the small cap category. Though when it comes to mid caps most of the fund's convictions have been proved right. Castrol India, Oriental Bank of Commerce and Union Bank of India are some of the stocks in this space that have brought money for the fund.

Previously, its investments in a single mid or small cap stock used to go as high as 13 per cent but in the last 3 years it has been capped at 7 per cent.

 

The fund in recent years has been upbeat on construction, engineering, financial and services sector which account for over 50 per cent of the portfolio.

 

Why invest?


Its turnaround makes it a compelling pick despite being a small fund with less than R50 crore assets. It offers a blend of opportunity with a focus on profitable bets in each segment.

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


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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