Prajna Capital

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• Short Term Debt Funds offer Higher Returns right now
• What is a WILL?
• How Mutual Funds can lower your Tax

Short Term Debt Funds offer Higher Returns right now Posted: 29 Jan 2014 02:45 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     Rates on these Short Term Mutual Funds may remain high as RBI is in no hurry to cut rates   Mutual fund managers say investors looking for stable and higher returns should invest in short-term debt funds, which have outperformed equity markets in the last one year by delivering returns of over 10% against 7.73% offered by the benchmark Sensex. Investors can expect superior returns from short-term debt funds in 2014, they said, arguing that interest rates on short-term papers are expected to remain on the higher side as the Reserve Bank of India (RBI) is in no hurry to cut rates. The short-term debt funds are less volatile in nature compared to long-term debt funds, hence, investors should continue their investments in short-term debt funds. Over the next six months, we do not expect any interest rate cuts by RBI. Fund houses expect RBI to continue its anti-inflationary stance after the wholesale inflation (WPI) for November climbed to a 14-month high of 7.52%, sparking fears of at least a 25 basis points repo rate hike by the central bank at its credit policy meet on Wednesday. Earlier, consumer inflation (CPI) for November had jumped to a nine-month high of 11.24%. If RBI raises the key policy rate on Wednesday by 25 basis points, it would be the third consecutive hike of 0.25%, which would challenge India’s economic growth. The inflation levels are above RBI’s comfort zone, and we do not expect any rate cut to happen in the medium term. This suggests that investors will continue to concentrate on shorter-duration funds, where returns are higher and stable. Short-term debt fund schemes invest in certificate of deposits (CDs), where the rates are hovering between 8.50% and 8.70%, and commercial papers (CPs) and bonds with less than oneyear maturity, where rates are 9.00% to 11.00%. Fund managers are expecting liquidity to remain tight over the next couple of quarters, which will add pressure on interest rates, as many are expecting the US Federal Reserve to start tapering its stimulus programme sooner rather than later. According to a survey by news agency Bloomberg, 34% of the economists polled believe that the Federal Reserve will give a go-ahead to tapering at its two-day meet beginning Tuesday, up from 17% in the November survey. The US central bank is currently buying bonds worth $85 billion a month to spur economic growth. Fund managers said an investor looking for low-risk attractive yield investment, spreading over a year or beyond, can invest in fixed maturity plans of debt products, where the returns are usually higher than the many prevailing debt products. They said investors in FMPs with maturity of one year and above can avail benefits of indexation, which can bring down the tax impact significantly. 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

What is a WILL? Posted: 29 Jan 2014 01:53 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)  WILL is a legal declaration of the intention of the testator with respect to his property, which he desires to be carried into effect after his death. Although Wills are usually made for disposing property, they can also be made for appointing executors, for creating trusts and for appointing testamentary guardians for minor children. A Will is an irrevocable document which you can change whenever you want. Whenever a new WILL is written, the particulars of the previous WILL must be mentioned to avoid any ambiguity later on. 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

How Mutual Funds can lower your Tax Posted: 29 Jan 2014 12:59 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       We keep hearing a lot about how mutual funds have helped create wealth for investors. However, it is also important to know that mutual funds not only help you increase your wealth but are also tax-efficient investment avenues. Tax efficiency does not mean just helping one pay less income tax but also to avoid or reduce tax liability on returns generated on your investment. Let’s know more about the tax implications of mutual funds and explore ways in which mutual funds can help lower your tax liability. ELSS funds help you earn money and save tax Equity-linked savings schemes (ELSS) are a type of diversified equity fund that qualify for tax exemption under the Income Tax Act and offer the twin-advantage of capital appreciation and tax benefits. These popular plans offer a simple way to get tax benefits and at the same time give an opportunity to gain from the equity markets. ELSS comes with a three-year lock-in. In addition, for firsttime investors in equity funds covered under the Rajiv Gandhi Equity Savings Scheme, there is also an additional one-time tax deduction available. Taxation of equity and non equity funds Tax implications of mutual funds vary depending on the category of fund you invest in. For tax implication purpose, based on the equity exposure of a scheme, mutual funds are classified as equity-oriented schemes and others. You must note that irrespective of the fund category, the dividend that you receive is exempt from tax. However, the scheme does pay out the dividend distribution tax before paying a dividend Debt / Liquid Mutual Fund schemes are more tax efficient than Bank FDs Bank deposits are considered the most popular investment avenue to park money and also one of the safest with guaranteed interest income. But for individuals who belong to high income brackets, debt and liquid oriented funds can be a good alternative because of the tax-efficiency that these funds offer. The interest earned on a bank deposit is added to an individual’s income and taxed at the applicable income tax rate. In comparison, debt and liquid schemes offer tax advantages as they have a lower tax rate. Here, in the dividend option, the fund house pays a dividend distribution tax (DDT). An individual under the highest tax bracket will pay tax at 30.9% on the interest he earns in a bank savings account. Similarly, in growth option, returns from liquid and debt funds would attract longterm capital gains if redeemed after a year (10% without indexation and 20% with indexation plus cess). Thus, when we look at all these options, debt/liquid mutual funds appear to be better options if you belong to the highest tax bracket where tax eats away almost 30% of your returns. Remember, taxes follow you wherever you make money. But there are smart ways to deal with it.       For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   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 Mutual Funds Online Invest Any Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------   Best Performing Mutual Funds Largecap Funds             Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds         Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds          Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds   Invest Online DSP BlackRock MicroCap Fund 2.       Franklin India Smaller Companies E. Sector Funds          Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds      Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds        Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds         Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. 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