Sunday, February 23, 2014

Prajna Capital

Prajna Capital

How to Balance Mutual Fund Portfolio?

Posted: 23 Feb 2014 04:15 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 



Everyone needs balance in their lives. So, too, do investors. They need a balanced portfolio – one that meets their goals. A balanced portfolio is one which encompasses a spectrum of investments, a range exposed to different asset classes, suitable to an individual, so as to avoid putting all one’s eggs in only one basket. One can go about doing this in various ways. For a layman, though, using mutual funds is a viable choice because of the wide range of options and the possibility of creating a portfolio suitable to specific requirements.

Overall options

Several choices are available.

One needs to look at the options in the market to achieve one’s objective. There are equity- oriented funds (which invest in large caps, mid caps and international funds), debt- oriented funds and gold funds.

There is ahuge range of debt- oriented funds, but exposure has to be considered as much depends on prevailing market conditions as well as the time frame available to an investor. The choice here would be stable funds, short duration ones and those open to interest- rate risk.

Equity funds

One area of focus has to be equity- oriented funds because these instruments provide growth momentum to aportfolio. Some large- cap funds in your portfolio act as a stabilising factor.

For those who are slightly conservative, the extent of exposure to largecap funds would be greater. For those looking for a balanced portfolio, overall equity exposure can be capped at around 45- 50 per cent. This would comprise large- cap, mid- cap and, maybe, international funds.

For an aggressive investor, who wants stability in a portfolio, the proportion of mid cap- funds would be slightly larger as these are more volatile, simultaneously bringing in a higher risk element. In mid- caps, too, alonger period could elapse before an investor sees returns. This would need to be considered. These funds have a minimum time horizon of at least four to five years, which enables them to perform and show results. Those wanting to diversify their portfolios even further can set a small exposure of around 5 per cent to international equity funds. These offer a different flavour to a portfolio.

Stable Debt Funds

In the portfolio of an investor there is usually some exposure to fixed deposits. This can be easily replaced by mutual funds, within which are products similar to fixed deposits – Fixed Maturity Plans (FMPs). An investor should ensure that wherever s/ he does not want the principal amount at risk and there is an element of surety in returns, the investment should be in these FMPs. The other option that can provide some element of regular returns are monthly- income plans, though since these have a small amount of equity they should not be considered as a sure source of income and hence should be used only for indicative purposes. The exposure to these two categories of funds in the overall construction of a balanced portfolio should be in the range of 20- 25 per cent.

Other Debt Funds

There are other debt funds that would be used mainly to ensure that debt exposure is adequate. This has two components: a small part can continue in short- term or liquid funds to ensure that the money can be used to invest in some opportunity that suddenly arises. The extent of the exposure to this section in the portfolio should not be more than 5- 10 per cent at any time.

Another 15- 20 per cent should be in funds that actually enable an investor to gain from the movement of debt instruments in the secondary market. If prevailing interest rates are high and expected to slide in coming months, this should be directed towards income funds that are available for investment. However, when the situation concerning the future is uncertain, an individual would do well to choose dynamic funds, in which the fund manager ends up making the right choice about the kind of instruments suitable for investor gains. Once again, the overall aim of an investment is to ensure a steady rise in returns on this part of a portfolio.

Gold Funds

The rest of the portfolio should go towards another asset class, namely gold, as this provides a different kind of exposure for an investor; it protects aportfolio from similar kinds of movements. This should not exceed 10 per cent of the total value and should be slowly built up over time. The real gain to an investor is when s/ he considers gold funds as longterm investment assets and s/ he has invested in this when prices have corrected.

This would enable her/ him to accumulate various units when the going is tough so that when prices actually go up s/ he is ready to earn returns. This calls for an element of patience because the asset cycle is longer than one sees with other asset classes, often running for over 10 years in a specific direction.

Overall Many options in mutual funds are available. It is the responsibility of each individual to check what is appropriate as they go about creating their own balanced portfolios. Utilising the right mix would be beneficial; even more important is the need to ensure regular re- balancing.

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

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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

What Is The Public Provident Fund?

Posted: 23 Feb 2014 03:19 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
 

What Is PPF?

 

·         This is popularly called PPF and is the most attractive tax saving fixed income option giving a tax free return of approximately 8.7% compounded annually.

·         The maximum amount one can invest in PPF is 1Lakh per financial year.

·         A PPF Account can be opened at post offices, Branches of SBI and its associate banks, and certain Private Sector Banks.

·         PPF carries a term of 15 year and it can be extended in blocks of 5 year each for any number of blocks.

A Loan facility up to 25% can be availed from 3rd financial year till the 5th financial year while a withdrawal of up to 50% is allowed from 6th financial year onwards.

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

Short Term Income Mutual Funds

Posted: 23 Feb 2014 02:13 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

 

 

 

 

Experts are recommending short-term income funds ahead of the monetary policy review by the Reserve Bank of India (RBI). According to Value Research, a mutual fund tracking entity, short-term income funds as a category has delivered 0.92% in the past one month ended January 17.


With WPI declining to 6.16% for December 2013 compared to 7.52% for November 2013 — though the RBI is not expected to cut rates in the upcoming monetary policy review — it may give an indication of lower rates in the near future. Hence, experts advise investors to gradually take exposure to short-term income funds to benefit from high yields due to a seasonal liquidity crunch in February and March.


Yields move up in February and March due to tight liquidity. Short-term income funds can be looked at to capture this spike in yields. Invest with a minimum ninemonth time frame.


Short-term bond funds are also expected to benefit from a possible fall in interest rates in the next financial year. “We don’t expect rate hike in the upcoming monetary policy review. Rather, we expect the monetary policy orientation to move from curbing inflation to boost growth.


If interest rates start declining, short-term income funds may show some capital gains to investors. It is an old prescription to invest in long-term gilt funds and long-term income funds to benefit from interest rate fall. The impact of declining interest rates is the most when the fund is holding longterm bonds. However, individual investors are not really keen on betting their money on longterm bond funds.


Memories are still fresh of the losses they suffered due to volatility in interest rates in June 2013, when the yields moved up. Short-term income funds generally have low exposure to government securities with low duration, which reduces risk.


An average maturity of portfolios of short-term income fund hovers around a year against 10 years for that of the mid- and long-term gilt funds. This ensures that the shortterm income fund NAV (net asset value) does not fall as much as a long-term gilt fund in case interest rates were to move up, contrary to the expectations. Experts feel these funds are much less risky compared to long-term bond funds.


These funds won’t test the patience of investors the way long-term gilt as well as income funds do.

 

 

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

    1. Largecap Funds             Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds         Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. 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
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds   Invest Online

      1. DSP BlackRock MicroCap Fund

2.       Franklin India Smaller Companies

E. Sector Funds          Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds      Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds        Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds         Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF



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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