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- Profit from Mutual Fund SIPs
- UTI Quarterly Interval Fund Series dividend
- Mutual Fund Exit Load Changes
Posted: 16 Jun 2014 05:10 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Profit from SIPs
Systematic investment plans are the best way to invest for your goals. Here are some smart strategies to make the most
Ask any financial planner the mantra for creating wealth in the long term and he would advise regular, disciplined savings in a carefully chosen basket of investments that suits your risk profile. Shorn of jargon, what this means is a systematic investment plan (SIP) in a good mutual fund can create wealth in the long term. SIPs are not only for the long term. You could be saving for the down payment of your house 15 months away or for your child's college education three years from now. An SIP is the ideal vehicle for goal based investing as it allows you to plan ahead and harness different asset classes.
We will look at a few smart strategies that would maximise the gains from SIPs.
Link SIPs to FINANCIAL goals
Any investment must have a purpose. It could be saving for your retirement, your child's marriage or a foreign holiday . It will not only let you monitor the progress of the investment for that goal, but also tell you how much you need to save every month. For instance, if you have to save 10 lakh for the down payment of your house in two years, even an SIP of 15,000-20,000 a month won't serve the purpose. If the objective has not been clearly articulated, you may miss the target. Spelling out the goal lets t you choose the most appropri ate asset mix for achieving it If you have more than 10 years, the asset mix should be heavily tilted towards equities (70:30) as the time frame al t lows you to take more risk. For t short-term goals of, five years or less, debt investments e should form the major chunk t of the portfolio.
Although SIPs help u you invest regularly, i e does not mean you should e keep the amount fixed over the f entire tenure. As your income t rises, your savings must also go up. This means you can tar y get larger goals even though e your current income does no, allow big investments. For example, if you require a cor pus of 25 lakh after 10 years with 12% returns, you would . need to invest 11,000 every month, but if you increase the contribution by 10% each year, you would only need to invest 8,000 in the first year.
The step-up SIP can have a dramatic effect on your long term savings. As the graphic shows, even a 10% increase in the SIP amount can give you a 45% bigger nest egg. This is why the Provident Fund, which links the monthly contribution to the basic salary t of the member, is so effective as a retirement savings tool.
There are other benefits from the step-up approach as well. One, you reach your goal faster if the amount you need is fixed. You may have targeted to save 20 lakh for your child's education in 10 years, but increasing the SIP amount would help you achieve it in just nine years. Besides, if you raise the SIP amount, it will prevent you from blowing away the money if your income goes up. It will automatically prevent you from indulging in excessive spending.
The surplus savings need not be directed to an SIP in another scheme. Instead, one can simply increase the existing SIPs. Having separate SIPs for different goals does not mean that you invest in different funds. For some goals, you may invest separately in the same set of equity funds. If you have 4-5 different goals, you can plan for them using the same set of equity funds.
Suppose you need to invest 10,000 a month for a certain financial goal. If your current income does not permit that right now, don't junk the plan altogether. Start with 5,000 now and gradually increase it by 500-1,000 a year as per your convenience. A step-up approach can be used to gradually start moving towards your desired goal with whatever savings you have at the time.
STAGGER THE SIPs and AVOID BUNCHING
Fund houses have specific dates on which SIP investments are made.
Having said that, the SIP mode is supposed to make life simpler for the investor. However, some variants of SIPs defeat the purpose. For instance, the Value Investment Plan offered by some fund houses keep varying the SIP amount on the basis of the returns the fund has generated. If the fund does well in a particular period, the next SIP is lower because the corpus is already bigger than planned. If it does poorly, the SIP amount goes up to account for the shortfall. Such investments only complicate things for the investor and should be avoided. Only extremely sophisticated investors should go for these plans.
Then there are fortnightly, weekly and daily SIPs as well.
When To Review Your SIPs
Even the best laid plans can sometimes go awry. This holds true for SIPs as well. You may have chosen the best fund, but there is no guarantee that it will keep performing well. Similarly, an unexpected turn of events could upset your calculations. A yearly review of your portfolio will keep you moving in the desired direction. If you have strayed from the path, you can make timely changes that will ensure you get back on track.
Here's how to go about it.
Ending an SIP is almost as important as starting it. Continuing the SIP perpetually may not always be the right approach. At some point, you will have to get out. How do you decide when to stop? If you are not investing for a specific goal, this decision won't be easy. But if you have certain target in mind, you can end the SIP as the goal draws near. If the goal has been reached before time, it is advisable to shift the money out to a stable option. Exposing it to the market's vagaries for the remaining tenure will not be a wise move. Where the money requirement is for a bullet payment like a wedding expense, you must ensure that you set aside the amount much before the goal deadline.
On the other hand, if you have not managed to save the required amount, you may need to consider whether you wish to continue with the same SIP. If it is not performing in line with its peers, you may have to switch to a better alternative.
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
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 | |||||
UTI Quarterly Interval Fund Series dividend Posted: 16 Jun 2014 04:31 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
UTI Quarterly Interval Fund Series dividend
UTI Mutual Fund has announced dividend under the dividend option of UTI Q Interval Fund Series 1 Reg-D and UTI Q Interval Fund Series 1 Reg Direct-D.
The quantum of dividend will be the entire distributable surplus as on the record date. The record date has been fixed as June 18, 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
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
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 | |||||
Posted: 16 Jun 2014 02:02 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Mutual Fund Exit Load Changes
AMCs don't communicate about any change in exit load directly with investors, but do update on their website
The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.
However, Asset Management Companies (AMCs) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they invest in, they should also look up on costs and charges that impact their investments. Our website has all the details necessary for investors at the time of buying as well as selling of every mutual fund scheme.
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
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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