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| Common Account Number for Mutual Funds Posted: 05 Mar 2015 12:33 AM PST The Mutual Fund Utility (MFU) provides a common platform for investors to transact across different mutual funds using a common account number (CAN). The investor is allotted a CAN as a single reference for all investments. The investor gets the benefit of a single view of all MF investments, single payment for multiple transactions, centralized complaint redressal and single point communication in case of changes in details. Form In order to get a CAN allotted, an investor needs to submit a duly filled CAN Registration Form at any of the nearest points of service (POS) of MF Utilities India Pvt Ltd (MFUI) or a distributor signed-up with the MFUI or a participating AMC branch. CAN forms can also be downloaded from the MFU website. Documents Needed with the application form: PAN proof Proof of KYC, date of birth Proof of bank account for bank mandates registered under the CAN Proof of depository account Proof of guardian relationship (in case of minor applicants) Existing investments The existing investments of investors are not migrated by MFU. However, upon creation of a CAN, MFU will map the existing folios of the investors across mutual funds to the CAN, based on the PAN, holding pattern and other parameters. Modes of holding In case of joint holdings, a separate CAN is created for different combinations of investor holdings. CAN is provided for a combination comprising different number of investors 1, 2 or 3, order of holding, mode of holding (single, joint, anyone or survivor)and tax status. POA holder cannot request for a CAN registration on behalf of the applicants. KYC compliance is compulsory for CAN creation. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
| Posted: 04 Mar 2015 10:59 PM PST FY 2014-2015 has seen a good rally in the stock market and investors have made good money in shares. This also means that there may a need to pay some capital gain tax. Depending on the time frame of your investment, you may have to pay some capital gain tax. As the end of the financial year approaches it is important for every individual to have a clear idea of the kind of capital gains and losses that they have earned over the financial year in the stock market. This will enable them to know the tax implication that will follow as they might have to pay quite some bit of tax this year around since there has been quite a rally in the equity markets. This is the reason why the individual has to take a careful look at the entire situation and then separate all the details in an effective manner. Here is how they can go about the entire process The first thing to do is to check the list of the shares that the individual has sold during the year. This is significant because this represents the starting point of the entire exercise for the individual because a capital gains or loss arises only when the shares are sold and not when they are held. The process of sale puts other things into motion and this is something that will have to be watched. It also becomes easier for the individual to ensure that they are able to record the right details in their accounting because all that they have to do is to ensure that they look at the shares sold and then the tax impact for this would have to be considered. The key part of the entire exercise is to see the time period for which the shares that have been sold have been held by the individual. This will determine the nature of the capital gain or loss because the tax impact will differ depending upon the time period for which the investment was actually held. This is important as the holding period of less than a year will make the investment a short term capital asset for the shares while a holding period of more than this will make the asset a long term capital asset.
One area that will need special attention from the investor is that of the short term capital gains that have been earned by them. This is because there can be a tax element that can arise on these gains. There is a short term capital gains tax of 15 per cent that the individual has to pay when they make gains from the sale of shares and hence this can give rise to an additional tax liability. There has to be a look at all the transactions of the individual and then one has to find out whether there is some net capital gains that have been earned. This is because if there is some short term capital loss then this would have to be set off against the gains that have been earned and the net figure would be the taxable one.
There is no tax on long term capital gains on shares but with this another point also needs to be known which is that if there is a long term capital loss then there is no use of this figure. The investor would have to ignore the long term capital loss because there is no gain which is taxable against which this can be set off. One has to remember that the long term capital loss cannot be set off against short term capital gains so there will be no reduction of the liability on that front. This should form the basis of the entire calculation that they will undertake and hence one has to keep this in mind. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
| How to choose a Mutual Fund Scheme Posted: 04 Mar 2015 09:05 PM PST
As an investor you should look into the following important parameters while choosing to invest in a debt fund: Average maturity of the fund: These gives the average maturity of all the securities held in the portfolio of a debt fund. For example, if a debt paper in the portfolio has a maturity of one year, another two years and another three years, provided an equal sum is invested in each of the three papers, the average maturity is two years. Duration: This is the measure of the price sensitivity of the fund portfolio to a change in interest rates. Funds with a longer duration would be more sensitive to a change in interest rates. For example, if the modified duration of the fund is seven years and the interest rates are expected to go down (or up) by 1%, the net asset value (NAV) of the fund is likely to go up (or down) by 7%. Yield: The yield is a measure of the interest income generated by the bonds in the fund's portfolio. For example, bonds having face value of Rs 100 and coupon of 6% per annum is currently trading in market at Rs 110, then the yield that would be earned if the bond is held till maturity is 5%. In a stable interest rate scenario, this can be considered as an approximate measure of the returns that the fund can generate. While in a falling interest rate scenario, this is not likely the true measure to know the fund returns, because it does not take in consideration the trading gains that the fund may generate. Credit Rating: It indicates the credit worthiness of the borrower. Rating houses like Crisil, Icra and others give rating to the securities issued by the issuers like companies and banks and are held by debt funds in their portfolios. Credit profiles of the debt fund portfolio point toward the level of credit risk that the debt fund has assumed. Higher the ratings, lower is the risk in the portfolio. Taxation: Long-term capital gains in debt mutual fund schemes will be derived only if the investments are held for more than 36 months. The long-term capital gains tax is 20% with indexation benefit. Short-term capital gains from debt funds are at tax slab rates of the individual investor. Debt fund plays an important role in the portfolio at different age groups. At young age, one has to invest into equity but also needs to have debt exposure which gives a cushion from the equity volatility and liquidity requirements. As you approach towards your goals, use Systematic Transfer Plan (STP) from equity funds to debt funds. This will help to reduce the instability in the corpus you need to source your family goals. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
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