Prajna Capital |
| Posted: 18 Dec 2013 04:02 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
FINANCIAL marketplace is witnessing a battle going on in the debt segment with issuers trying to influence investors to park their money with them. On one side, issuers are raising the pitch with tax-free bonds, and on the other side, various banks are matching this with aggressive offers on their deposits to ensure that investors do not desert these for the long-term bonds. This is a good opportunity for investors to ensure that they are able to make the most out of the situation and ensure that their goals are properly met.
A little bit of homework will be useful and here is a look at how investors can actually make their decisions.
Interest rates:
One of the major attractions for investors is obviously the interest rates that are offered on various instruments.
The first thing that many investors look for is clearly the final amount that they would earn on the investment. The natural thing to look for is obviously a higher rate because this would ensure that the earnings would be higher at the end of the day. However, while considering the interest rate, its nature also needs to be considered. The taxfree bonds have a rate this is actually post tax returns, so if there has to be proper comparison then the rates that are being compared would have to be brought on to the same level.
The interest rate on fixed deposits would be taxable in nature and hence the final rate would depend on the income-tax slab that the individual will fall under. This is the reason why each individual will have to ensure that the rate that they actually face is used in the workings so that the right decision can be actually made. Another condition related to the interest rates is that the investor should consider is the actual figure that they would earn and not just the stated figure. In this sense, there would be a different amount that could be earned if the representation is not done properly related to the compounding or the time period for payment and hence, the detail about the manner in which the interest rate is actually calculated would have to be undertaken.
Time period:
A very crucial aspect of the entire decision making process is the time period of the investment. The tax-free bonds are long-term instruments where the period of investment could stretch up to 20 years, while fixed deposits can be very short-term in nature. In this sense, there has to be a different way of analysing the instruments.
When it comes to the longterm instrument, if there is a higher rate of interest being offered for the entire period then this would be quite attractive as compared to a higher rate for shorter time duration.
There is no reinvestment risk in the longer-term instrument and this would have to be considered when the time period of the various instruments is being looked at.
Window for investment: The time period for making the investment is also crucial because the investor will realise that the opportunity will not be open for a very long time. When it comes to the tax-free bonds, there is a specific time period for which the investment can be made in a particular issue but even within this if the issue is oversubscribed then the manner of allocation of the bonds has to be considered as to whether this will be proportionate or on a first come first serve basis. The other thing is that even special deposit schemes that offer a higher rate of interest would be open only for a fixed time period and hence here too the investor might have to act quickly to lock in their returns. 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.
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These Application Forms can be used for buying regular mutual funds also
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| Posted: 18 Dec 2013 02:53 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Tata Mutual Fund has announced dividend under the dividend option of Tata Tax Saving Fund and Tata Tax Saving Fund Direct. The quantum of dividend shall be Rs 2 per unit.
The record date has been fixed as December 23, 2013.
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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| Posted: 18 Dec 2013 12:58 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
IDFC Classic Equity Fund
IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index.
Performance
All figures in % as on January 31, 2013; Returns above one-year in CAGR terms
The fund has outperformed its benchmark in the one- and three-year periods. It has underperformed in terms of five-year returns and returns since inception.
All figures in %
Out of the last five calendar years, the fund has managed to outperform its benchmark only in 2008, 2011 and 2012. The fund underperformed substantially in 2009.
Investment philosophy and approach.The fund can invest across sectors and aims to invest in well-managed sustainable businesses whose shares are available at reasonable value.
Portfolio Characteristics
Number of equity holdings.Currently the fund has 32 stocks in its portfolio against the category median of 41. The average stock count has been 26 in 2008, 29 in 2009, 28 in 2010, 33 in 2011 and 2012. The portfolio has become more diversified gradually.
Sector concentration.The fund has a higher concentration in the top three, five and 10 sectors than the category median.
Company concentration.The fund has a lower concentration in the top three, five and 10companies compared to the category median.
Therefore, it can be said that the fund is concentrated at the top in terms of sector allocation and diversified at the top in terms of stock holdings.
Turnover ratio.The fund last disclosed its turnover ratio in March 2012. It was 123 per cent against the category median of 75 per cent.
Expense ratio.The fund's expense ratio is 2 per cent which is lower than the category median of 2.56 per cent.
Risk.In terms of risk measures such as standard deviation and beta (measured over last three years) the fund has a lower level of risk compared to the category median.
Risk-adjusted returns. In terms of risk-adjusted returns like Sharpe and Treynor Ratio (measured over the last three years) the fund has lower risk-adjusted returns vis-Ã -vis the category median.
Cash allocation. Currently the fund has a cash allocation of 8.23 per cent against the category average of 4.34 per cent.
Portfolio Strategy: Last one year
The BSE 200 Index gave a return of 17.31 per cent in the last one year while the fund outperformed with a return of 26.61 per cent. In the last one year the fund has had an average allocation of 85 per cent to large-caps, 10 per cent to mid-caps and 4 per cent to cash.
The fund raised its allocation to sectors like power generation/distribution, public banks, cigarettes and so on (see table above). It lowered its allocation to the IT-software sector.
Fund vs. Index – January 2013
Currently the fund is overweight vis-Ã -vis its benchmark on sectors like public banks, power generation/distribution, pharmaceuticals, and so on (see table above).
Among its top holdings the fund increased its exposure to ITC, HDFC Bank, Wockhardt, PVR, IndusInd Bank, SBI and Zee Entertainment. It lowered its exposure to HCL Technologies, ICICI Bank and ING Vysya Bank.
Fund Manager. The fund is managed by AnkurArora and MeenakshiDawarwho have been at the helm since March 2012 and October 2011 respectively. This is the only fund currently managed by AnkurArora. The fund has shown better performance since he joined, making 2012 the best calendar year in terms of performance. This implies a good start by the fund manager.
Conclusion. Though the fund doesn't boast of a very consistent past track record, we have it in our positive watch-list because of the way it has come up in recent times due to the changes at the helm and increased diversification in the portfolio. It is also one of the better performing large-cap heavy funds in terms of SIP returns. However, at present there are better substitutes available for this fund.
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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