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| Small Caps Funds can Boost Your Portfolio Posted: 29 Sep 2014 07:25 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 Small Caps Funds can Boost Your Portfolio
Small and mid-cap funds have given over 90% returns in the past year. No wonder, financial advisors get many enquiries about their prospects. One set of investors wants to know whether it is time to get out of these funds. The second group wants to know whether they can still expect similar returns in the coming days. According to experts, individual investors should shut the noise out and focus on their portfolio. If you have exceeded your allocation target to small and mid-cap funds, bring it back to the original target. If you are looking to invest, make sure that your exposure to them doesn't exceed 30-40% of your total equity portfolio. All equity portfolios should have 60% exposure to large-cap funds and based on their risk appetite investors can take a small exposure to mid-cap and small-cap funds. Risky, But Rewarding It is easy to get carried away when the market is doing well and small and mid cap funds are doing well. But one should try to figure out how to these fund work before getting into them. Sure, these funds can give you phenomenal returns, but they can also be volatile in different periods. That is one point most investment advisors want investors to keep in mind. For example, almost always large companies tend to do better in a lacklustre market. This is mainly because they have the strength to withstand a bad economic phase because of their size. In comparison, small-and medium-size companies fare badly when the times are tough. However, when the economic conditions turn around, investors suddenly turn to these stocks because they sense a revival of their fortunes. This is exactly what has happened in the current market. After the large cap-led rally, small and mid-size companies started rallying. Pick Real Winners "The sentiment-driven rally is over in small and mid-cap stocks. Now, the upside will be based on the financial strength and the future prospects of the company. And these companies may take at least two years to notch up impressive performance. That is why experts like him want investors to have a clear investment plan. Also, they should have the stomach to digest volatility and should have an investment horizon of five years. Your portfolio should have allocation to small and-mid cap funds because they can be extremely rewarding in the long run. But you should get your allocation right. His model equity portfolio will have 60% large-cap funds and 40% small and midcap funds. Within the 40% allocation to small and mid-cap funds, 70-80% should go to mid cap and the rest to small-cap funds. 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: 29 Sep 2014 03:08 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Travel Insurance Cover
Most overseas Indian travellers tend to spend as little as possible when it comes to travel insurance. This is despite a higher awareness of the need for this cover among them, a survey report released by ICICI Lombard ahead of World Tourism Day on September 27, has found.
Though 93% of the respondents said they were aware of travel insurance and 80% considered it essential, only 38% had actually purchased it. Moreover, one buys it primarily to cover travel to the US and Europe and ignore it when the destination is an Asian country.
The survey polled 1,063 respondents spread across Mumbai, Kolkata, Hyderabad, Ahmedabad and Chandigarh in September 2014. According to respondents who purchased travel insurance, concerns over medical exigencies (82%) and baggage loss (69%) topped the list of reasons for buying the cover.
"Among those who did not purchase an overseas travel insurance policy, an alarming 50% felt that purchasing the same is unnecessary if one already has some other insurance policy ," the study states. Many people assume that their domestic health insurance policy will extend cover overseas too. However, regular health covers are not valid abroad and travel insurance is required to cover medical expenses outside India. Medical expenses account for 95% of the company's claims.
There is no dispute that travel cover is indispensable during an overseas trip, but buying it alone won't take care of your troubles abroad. You should read the terms and conditions closely to avoid disputes later. The most common causes of dispute arise out of clauses like pre-existing diseases, co-pay , sub-limits, exclusions and documentary proofs needed to support claims.
Most travel policies do not pay for hospitalisation due to pre-existing diseases. Similarly , there are sub-limits on individual expense heads like loss of hand baggage and deductibles, where you will have to pay say the first $100 of expenses incurred before the insurer foots the balance bill. Not understanding these nitty-gritties could result in heartburn.
There also have been examples of travellers not seeking support from the worldwide assistance company while in need or failing to register a claim with the assistance company ahead of hospitalisation. Incomplete documents while filing claims is another common mistake that could lead to delays during settlement. A few of them extend their stay beyond the policy period and thus expose themselves to undue risks.
Understanding your rights and clauses and following all procedures while filing the claim will also help in making a watertight case if the insurer rejects your claim.
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: 29 Sep 2014 02:32 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 Simple Rules to Create Wealth Investors can reach their targets if they're disciplined & consistent with strategy
To create wealth, investors should keep in mind some basic rules that are simple to follow. Here are some of the most important ones from select financial planners, an investment analyst and a top professional in the credit information industry: h Save, invest and understand where & why you are investing: We understand that we need to invest but very few understand that we can invest only if we first save. It's important to know how much you earn and spend to arrive at what you can save. It's also important to understand the risks associated with equities, fixed income, commodities, gold, international funds, real estate, etc, and also the resultant return expectations. Also, understand why you are investing. Being busy individuals, the last things on our minds are handling paperwork, cheques, banking errands, etc. Hence, there is a need to systematize: Automate investments to selected avenues on monthly , quarterly , yearly basis by using technology , available systematic investment plans (SIPs), triggers, alerts, ECS, etc.
Diversify: Diversification across asset classes and within each asset class can eliminate risks emanating from concentration, liquidity , credit, interest rate and currency . This will reduce the overall risk to the portfolio. However, diversification beyond the optimum level does not reduce the risk to the portfolio.
Safety has a price: If you are one of those risk-averse investors, chances are that your savings would be locked into various fixed and recurring deposits. However, over the last few years, you must have got negative real returns. That is, your returns were less than the rate of inflation. In other words, the interest income from deposits has not helped you keep pace with rising costs of goods. That also amounts to erosion of capital -you have lost it through inflation. So, remember to build an inflation-beating corpus through investment across asset classes including equities, debt, gold and real estate. Consistency & discipline pay: Emotions interfere with investing — sometimes they work for us and sometimes against us. So, be disciplined to invest a certain amount every month and systematize it. There are many examples of SIPs in diversified equity mutual fund schemes generating sizable corpuses, where investors have consistently run SIPs. Also, discipline yourself to refrain from going off an agreed asset allocation and investment strategy. Save on taxes to build a kitty: A large number of people focus on expenses like children's education, home loan repayment, etc, for tax deductions from their salary. You should also look into Section 80C investment options seriously. Here you can find investment options that can save on taxes and also build a long-term portfolio with good future returns. These options include equity-linked savings schemes (ELSS), various provident funds, NSCs, five-year tax-saving deposits, etc. ELSS could offer you the best deal in terms of superior tax benefits and higher returns in the long term. These funds have a lock-in period of three years and compare favourably with other options like five-year tax-saving bank FDs, five and 10-year NSCs, or 15-year PPF. The gains from ELSS that accrue are also exempt from capital gains tax, while gains from five-year tax-saving deposits are fully taxable. Monitor and review: After you have put in place an investment strategy and implemented it, periodically check if the plan is working for you from every possible angle. If you have moved away from the agreed plan, change the asset mix. If that means exiting under-performing investments, do that Mind your credit score: Like in business, in personal finance too credit line availability plays a critical role. Today , institutions consider both borrowers' income profile as well as their repayment behaviour across earlier liabilities while deciding their credit worthiness. A credit score of an individual is increasingly becoming an integral part of banks' appraisal process in determining whether to grant credit as well as its quantum. The higher your score, the better your creditworthiness and more are the chances of your loan application getting approved. Financial discipline in paying back the borrowed amount (EMIs) on time and as agreed to the lender is the foremost step to ensure a good credit score. Monitor your joint loans or loans where you are the guarantor regularly .It is advisable to get a copy of your credit report at regular intervals when you start taking debt, especially after opening or closing of new credit accounts. In case of any error, get it corrected without delay 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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