Prajna Capital

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• SIPs into ELSS Mutual Funds to Save Tax for 2015
• Tax Free Bond Returns Match that of Equity in Q4 2014
• What stocks to buy now?

SIPs into ELSS Mutual Funds to Save Tax for 2015 Posted: 09 Apr 2014 05:10 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   One of the best tax saving instruments in the mutual fund space is the equity-linked s av i n g s s ch e m e s (ELSSs), which are offered by mutual fund houses. If you invest in ELSSs, which are approved by the government for saving taxes, you can claim tax benefits under section 80C of the Income Tax Act. In every ELSS, you can do a systematic investment plan (SIP) with an ECS mandate so that every month a fixed sum of money is deducted from your account and invested in the plan. For this, all you need to do is fill up the forms for investing in an ELSS once, along with an SIP form and the bank mandate form. Once all these, along with your Know Your Customer (KYC) forms, are in place, the investments should start without any problem. An SIP investment also allows the investor to reap the benefits of rupee-cost averaging. That is, you buy more when the price is low and less when prices are high, averaging out your cost of acquisition. In comparison, if you invest a l u m p s u m amount, you may not have got the best price to invest in that ELSS. 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

Tax Free Bond Returns Match that of Equity in Q4 2014 Posted: 09 Apr 2014 04:34 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   Investors see between 4% and 7% capital appreciation in their investment within this short span of time     All eyes might be on equities but tax free bonds offered by state-owned companies in the January-March period have silently returned close to stock market gains. Investors have seen between 4% and 7% capital appreciation in their investment within this short span of time. Towards the end of the financial year, public sector issuers such as NTPC, National Housing Bank (NHB) and Indian Railways Finance Corporation (IRFC) to name a few brought a series of public issuances offering between 8% and 9% coupon broadly for 10,15 and 20 years. Those bonds offer very attractive rates over a long period. Perhaps, we are going through the peak of interest rates. Even if there is capital appreciation, retail investors should hold it till maturity for higher long term returns. For example, a particular series of NHB bonds which were issued at a face value of Rs 5,000 per bond during the March quarter on Thursday quoted the last trading price of Rs 5,321 in the secondary market, suggesting a capital appreciation of 6.4%. Similarly, NHPC bonds rose on Thursday to an intraday high of Rs 1,072 compared with a face value of Rs 1,000, an appreciation of more than 7%. The 30-share BSE Sensex has moved up 8% in the last three months. Even though a comparison between equity and debt may not be justified as they are two different asset classes, an investor with less risk appetite can earn good returns in bonds. In its first bi-monthly policy, the Reserve Bank of India hinted at keeping interest rates unchanged till the time the central bank attains 8% retail inflation as measured by the consumer price index, or CPI. If the rate of inflation keeps falling, there are rate cut chances, which may begin in 2015. As the country achieves higher pace of growth with falling inflation, interest rates may be cut.   Most of those issuers were AAA-rated, barring HUDCO, which was assigned AA+, one notch lower. But, the government ownership is the key trigger that makes all these a safe investment bet. It does not make sense for investors to exit investments booking profit at this point unless there is a compulsion. In case of selling, investors will attract short-term capital gain tax as per individual income tax slab, which, in turn, will erode absolute returns.   For those who missed the opportunity to invest in tax-free debt securities and are currently planning the same it may be too late. As bond prices moved up pushing yields down, their interest income may fall below 8% annually even if there is tax exemption. 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

What stocks to buy now? Posted: 09 Apr 2014 03:51 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   Only buy stocks that will gain from the change in the business cycle and are run by competent managers   The equity markets are running up again. The return of optimism means a sense of urgency about investing. Most investing mistakes are made when this frame of mind dominates the investing decision. When the market moves up after a prolonged bear run, quality becomes crucial. If investors do not have a framework for selecting stocks, they may be seriously disappointed. Cut back to 2008. It was the time when every business was optimistic. Broking firms were raising money from IPOs and expanding furiously. Real estate companies were going public on the basis of their land banks and construction plans. New companies across media, roads, power, telecom and technology were confident about revenue and were borrowing heavily. When the markets crashed, it was not just the stock prices that were hit. The business plans of many optimists were also hit. The balance sheets of many companies and their lenders were impacted. If the equity markets have not crossed the high of 2008, it is because these companies needed time to get their businesses back on track. When the markets crash, all stocks crash. However, it is only the best that return and rise. Investors have to choose carefully, more so when a surge in liquidity is pushing prices up and taking stocks away from the fundamentals. At the top of the cycle, momentum in prices can increase the gap between price and fundamentals. Investors believe that nothing can go wrong when they have seen a persistent bull market. Similarly, at the bottom of the market, investors expect every battered business to return to profit. The prices move up in anticipation of a brighter future and the gap between price and fundamentals widens. What are the types of companies to buy? The top picks in a falling market are companies whose revenues are not hit by a downturn. This was why pharma and FMCG remained favourites in the past. However, as the cycle turns, the companies that turn around first are those that do not have debt on their books; those that earn cash profits and do not have net cash deficits on their books; those that have a smaller amount of debt compared to their equity capital and profits; companies that have benefited from cost-cutting in their operations; and companies with a cost structure that responds faster to increases in revenue. These companies will benefit from a change in the economic cycle. There are three broad types of stocks to choose from:   First, fundamentally sound companies that had borne the brunt of the economic cycle, but continue to represent business portfolios that are inherently profitable and are well-managed. Such companies will not be cheap, but worth buying when the risks of business cycle abate.   Second, the companies whose managers reworked the business portfolio in the downturn so that they are able to correct the mistakes of the past. Such companies will turn out to be multi-baggers of the season.   Third, the companies that depend on the ups and downs of the business cycle to be able to make profits, but do not hold great business portfolios or good managers. Such companies will enjoy high speculative attention. If investors are able to differentiate the impact of these three factors—business portfolio, quality of management and impact of the economic cycle—they are likely to make good choices. The others may see themselves as buying multi-baggers, but end up with speculative stocks that fall at the slightest correction. If a stock selection exercise does not involve analysis, merely the rise in price in the immediate past, investors expose themselves to high risks. There are two other dangers in the markets. The first is the misplaced sense of value investing.   The second is the mistaken hope about past losers.   In the first case, investors extend the optimism about the future to stocks that have fallen sharply in price. The PSU and banking stocks are a good example of this fallacy. Several investors believe that these stocks are undervalued because the markets oversold the lack of performance and NPAs. They think that these stocks should go up, only because they have fallen too much. The ability of these stocks to take advantage of a bull run could be hugely compromised due to the quality of their business and managers. Then there are past losers. Investors in ‘past winners turned losers’ are keen to recover their losses from the same stocks. They think that a rising market will take their stocks up too. They should go back and see if the business has changed in the time that the stock was battered. Investors should ask whether there is a case for buying the stock now. If the stock is not good enough to buy at this time, its price is unlikely to respond even in a bull market. Long-term investing is a good thing to do, but long term is unlikely to make a bad stock better, unless it has fundamentally changed. 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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