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- How of setting up a HUF Trust? - Get Tax advantage
- IDFC Tax Advantage ELSS Fund
- ICICI Prudential Equity Fund Invest Online
| How of setting up a HUF Trust? - Get Tax advantage Posted: 05 Mar 2014 04:02 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
The Hindu Undivided Family (HUF) is defined as a family consisting of a common ancestor, his lineal male descendants their wives and daughters. A HUF Trust is a separate entity for the purposes of taxation, and hence you stand to get a tax advantage by forming a HUF.
A HUF is a family of Hindus with a common ancestor. However, the law recognizes a HUF formed by Buddhists, Jains and Sikhs also. The HUF is a separate entity with its own assets, liabilities and income, which is taxed separately.
You can form a HUF Trust with your wife, your children, their wives and their children. The head of a HUF is known as the Karta, who is normally the senior-most member of the family. The Karta manages the affairs of the HUF. All the male members are known as coparceners of the HUF and the women are referred to as members. However with the Hindu Succession (Amendment) Act in 2005, a daughter of a coparcener also becomes a coparcener of the HUF by birth. After marriage, the daughter becomes a member in her husband’s HUF. In some states, a married daughter continues as a coparcener in her father’s HUF, thus being a part of two HUFs.
A HUF automatically comes into existence at the time you give birth to a child. If you are a woman, you also automatically become a part of your husband’s HUF. However, even though a HUF is automatically created, it becomes recognisable from a tax viewpoint only when it has an income.
When you have the eligible number of members for a HUF, the first step would be to apply for a PAN card in the HUF’s name. For this, the Karta gives an affidavit with the name, father’s name and address of all the coparceners on the date of the application. Then a separate bank account is opened with the required address proof of the Karta. Thereafter, seek gifts/inheritances from relatives/strangers and also look at transferring assets yielding tax-free income.
This is the most important aspect! A HUF is a legitimate tax saving vehicle. It is a separate entity and enjoys the same tax exemptions and tax slabs as a resident individual. Only income arising on the use of HUF funds (e.g. interest earned on loans given by HUF) or property (rental income of HUF property) will be considered as HUF income. Consider the example below. We have assumed the only income for the HUF is rental income from ancestral property and total deductions amount to Rs. 1 Lakh.
What you cannot do with a HUF
Once assets are assigned to a HUF, it is the HUF’s property and cannot be taken for personal use. You also cannot make a will out of HUF property.
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F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
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| Posted: 05 Mar 2014 03:14 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
The portfolio is getting less defensive and this may help the fund ride any recovery
With the fiscal year drawing to a close, here is one fund that may not just help you save tax, but also generate reasonable returns over a three-to-five year period.
Outscores peers
IDFC Tax Advantage Fund (ELSS) has consistently bettered its benchmark BSE 200 across one-, three-, and five-year time frames. Not just that, it has also outperformed peer funds — Birla Sun Life Tax Plan, HSBC Tax Saver Equity and SBI Magnum Tax Gain across all time periods.
The fund's performance has improved significantly in the last three years.
Its strategy to increase allocation to foreign exchange earners such as IT, auto and pharma stocks, and reduce exposure to metals, and oil and gas helped the fund clock top quartile performance in the last three years.
Since its inception in December 2008, IDFC Tax Advantage has delivered returns higher than its benchmark during rally phases. Likewise, it has also managed to contain downsides during corrective phases.
The fund scores over its peers on consistency, too. In the last five years, its annual performance has been better than its benchmark 91 per cent of the time. A systematic investment of ₹1,000 in the fund over the last five years would have earned annual returns in excess of 11 per cent.
Mid-cap exposure
In the last six months, the fund has shed its defensive skin a tad by buying into select beaten down themes. Even as it continues to bet on pharma and consumer stocks, IDFC Tax Advantage has added a few stocks in the financials, construction projects, capital goods and telecom space. However, it has reduced exposure to refinery, power and IT stocks during this period.
The fund has also gone down the market cap curve by increasing exposure to mid-cap stocks within the respective sectors in the last six months.
For instance, in the banking space, the fund has reduced exposure to HDFC Bank and added Punjab National Bank and Development Credit Bank to its portfolio. This has led to a fall in the portfolio's weighted average market capitalisation from over ₹71,000 crore by end-July 2013 to ₹42,000 crore in January 2014.
The fund held 36 stocks in its portfolio as of January.
Sector bets
With IT, pharma and consumer non-durables as its top sector bet, the fund may be well-placed to tide over volatility. With any recovery in the economy, the fund's investments in high beta themes such as banking and capital goods will likely aid performance.
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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
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| ICICI Prudential Equity Fund Invest Online Posted: 05 Mar 2014 01:48 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
ICICI Prudential Asset Management Company has announced the launch of a new close-ended equity fund, predicting that markets would rise immediately after the elections and, in the longer run, a stable Government would push up GDP growth rates.
Similar trend
“We see a similar trend this time around. Last time, we also saw GDP picking up distinctly within one to two years after the elections. We did not want investors to miss out this time,” he said.
The firm’s research has shown that GDP growth rate had risen immediately in the first four quarters following the last four elections in India. On an average, GDP growth has risen from about 6.3 per cent levels to 7.6 per cent in the first quarter after the polls, 7.7 per cent in the third and 7.9 per cent in the fourth.
Similarly, foreign institutional inflows have risen from an average of over $300 million five months before the last four polls to over $800 million during the election months and about $750 million between six to 10 months after the polls.
Lock-in period
The new fund is comparable to its Focussed Bluechip fund that has notched up a compounded annual growth rate of 13.44 per cent in the last five years, compared with 4.42 per cent rise in the Nifty Index.
“The new fund will have about 50 per cent of the companies in its folio common to that of the focused fund,” Sanjeevi said.
The earlier fund has companies such as Maruti, Tata Motors, HDFC, ICICI, Grasim, ITC, Nestle, Petronet, NMDC, ONGC, Reliance Industries, Dr Reddy’s and TCS in its folio.
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 |
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