Prajna Capital

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• Mutual Funds Investment and many Tax Benefits
• High Frequency Trader Mode Of Operation
• Short Term Gains – Truth about them

Mutual Funds Investment and many Tax Benefits Posted: 16 Apr 2014 05:05 AM PDT 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   Mutual funds come with several advantages — some are inherent in their structure while others because of taxation rules set by the government — which give them an extra edge and make them a very strong investment product for wealth creation. Here are some of them: Systematic Investment Plans (SIPs) Under this route, you invest a fixed sum of money in a scheme either every month or quarter. This particular route to invest in mutual funds inculcates investment discipline and also brings in the power of compounding. This is a very good tool for building wealth in the long run. For example, if you invest Rs 5,000 every month in an equity scheme with growth option for 10 years, during which period the fund gives an average annual return of 15%, your total corpus at the end of the tenth year will be about Rs 13.76 lakh. If you extend that period to 15 years, the corpus would be about Rs 33.4 lakh. No Need to Pay Long-Term Capital Gains Tax If you have invested in mutual fund units and want to redeem them, and if you have remained invested in the fund for more than a year, you will not be required to pay any capital gains tax if you make any profit during your period of investment. This is because while trading in listed stocks, all the mutual funds pay securities transaction tax and hence they are exempt from paying longterm capital gains tax. Dividend Is Tax Free If you have your investments in dividend option of mutual fund schemes, then the dividend you receive is tax-free in your hands. This is because when a mutual fund decides to pay a dividend in any of its scheme, it pays a dividend distribution tax to the government, and hence the payout in your hands in totally tax-free. Indexation Benefit An investor in debt mutual funds can take advantage of this rule that has been put in place to neutralise the negative effect of inflation on his/her investment.   It works like this:    Once you have made some profit by investing in a debt fund over a year or more, you can use the indexation rules to see how much your investments are worth now after neutralising the impact of inflation. After this, if you are still in profit, you will pay income tax at the rate of 20%. On the other hand, if you don't want to use indexation benefit, you would pay tax at the rate of 10% on your profit. So as an investor, you have the option to see under which of the two methods your tax liability is less and you adopt that method to calculate your taxes. The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014. 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. 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

High Frequency Trader Mode Of Operation Posted: 16 Apr 2014 04:27 AM PDT 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   What Is A High Frequency Trader's Mode Of Operation? On the basis of historical data, a tested pattern is formed to execute numerous trading strategies. The computer programmer writes an algorithm based on many such patterns. Depending on the risk-reward rules set in a computer programme, HFT traders move in and out of traded securities, all in a time span which ranges from a fraction of seconds to a few hours. For instance, on analysing some historical data, a programmer finds out that about 70-75% of the time, whenever a particular stock breaks below the 10-day moving average on a weekly basis, it leads to a 5% correction in the stock price. On the basis of this analogy, whenever that particular stock breaks below the 10-day moving average on a weekly basis, the computer will automatically initiate a 'sell' order in bulk quantity. In other words, an HFT trader exploits predictable temporary deviation from stable statistical relationship among stocks. Rather than long-term investors, an HFT trader usually competes with other HFT traders. The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014. 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. 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

Short Term Gains – Truth about them Posted: 16 Apr 2014 03:33 AM PDT 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     Getting into the best performing stocks, commodities, futures & options or even FDs at the best rate of interest is the dream of most investors. Let's assume you get such an opportunity -- you invest in a stock which turns out to be the best performing one for the year and doubles your Rs 1-lakh during that period. What follows is the sense of satisfaction and déjà vu, even if it was by fluke. After the smart gains, probably some part will go towards an impulse purchase as an instant gratification, while some will take care of an outstanding (perceived or actual!) need. But will this Rs 1-lakh profit be available to you six months later?   Unlikely. Will you be able to repeat this feat year-after-year? Unlikely. Will it contribute to something very important and long-term in your life like your child's education, your own home, a good standard of living after retirement? Again, the answer is unlikely. So all that you have achieved is a bit of adrenaline flow and a momentary triumph. Often, much time and energy may have gone into spotting such an opportunity. Now, instead of spending your time and energies in looking for the best stocks or deals by going through all available information, or taking advice from a know all friend who claims to have made huge profits in the market, you may decide on having a long-term financial plan for yourself. There are several advantages. Boring but effective Careful long-term financial planning may not be as exciting as the adrenaline-flowing hot stocks picker or be a party stopper. And it may even be outright boring. It may involve you doing drudgeries like some mathematical calculations, crystal gazing and stuff like that, but it will definitely bear you fruits in the long term. When your child's graduation arrives, you will not be running around emptying your provident fund. When you decide that it is time to go in for your own home, you will not have to keep postponing the plan because you do not have the funds for down payment or the capacity to pay the EMIs on the home loan. Similarly, when you are 75, you will not have to keep lowering your standard of living year-after-year just because your pension or the pension corpus is losing the battle to the run-away inflation. So, long-term financial planning can be boring but effective. Achieving financial goals A financial plan would involve carefully jotting down the major future expenses of your life in the next 20, 30, 40 years. These are called the financial goals, which should generally not number more than 10-12. The same should be done for your anticipated money flows from salary, rents, interest income and others. And then you should try to roughly match the two. The next part is to decide on investments that can help you achieve these goals. While deciding on investments, the general rule is that debt instruments are for the short term, or for building up the safe part of your investments, while equity-linked investments are for building up long term wealth. Real-estate, properly chosen and timed, is also an important part of portfolio but requires bulk investment, which can be built up through a long term equity portfolio along with carefully orchestrated home loans. Never should tax-saving be the aim of investments. At best, it should be incidental to investing.   Review regularly The financial plan thus made should be reviewed every two to three years to do mid-course corrections necessitated by your changes in priorities, circumstances, money flows and market conditions. But can you do all this on your own? You can since it is not that tough. The tough part, however, is the yearly reviews of your financial plans, a review of your investments every two-three months and then realigning your investments as the markets and goals change. That is because it involves a bit of discipline, acquiring some financial knowledge and sticking to it as if your life depended on it. However, all this could be worth the time and energy than a sense of despair when you have a financial need for something very dear to you, yet you cannot meet that need because you did not plan earlier. If you feel this is too much to handle, find a trusted financial planner who will do it all for you for a small fee.   The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014. 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. 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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