Prajna Capital |
| Best Performing ELSS Tax Savings Mutual Funds Posted: 20 Oct 2015 02:12 AM PDT You must have done filing your tax return and repenting why hadn't you planned well to minimize your tax outgo. Only few months have passed in this financial year and you can very well plan your investment this year to save tax and escape reminiscing later. You can do this by investing in Tax Savings Mutual Funds aka ELSS Mutual Funds. Mutual Fund is the best way to invest in stock market. It is an appropriate route for the people who do not possess knowledge and discipline of picking and sticking with the quality stocks. ELSS (Equity Linked Savings Scheme) aka Tax Savings Mutual Funds are like icing on the cake. It offers twin benefits of tax deduction u/s 80C and capital appreciation. Apart from being EEE (deduction of invested amount, exemption of capital appreciation and tax-free maturity amount) scheme, ELSS Funds comes with the lowest lock-in-period amongst the investment list of section 80C. Please note that deduction of investment in ELSS Funds comes under the threshold limit of Section 80C which also includes other investment avenues such as PPF, NSC, KVP, SSA etc. Usually every mutual fund scheme offers three variants namely Growth Plan, Dividend Payout Plan and Dividend Reinvestment Plan. As the name suggest Growth Plan is a pure capital appreciation plan in which nothing is paid out and money grows till the maturity period while in the dividend payout option, a regular amount is paid out which gets reduced from NAV. Dividend reinvestment option is a combination of both plan i.e. dividend declared is invested to buy more units of scheme instead of payout. Since ELSS is similar to any other diversified equity mutual fund scheme, it was also launched with the above 3 variants but the problem comes while claiming tax deduction under dividend reinvestment option. As the lock-in-period of 3 years commence from the date of investing, investor get caught up in the never-ending cycle of reinvestment and could not claim full deduction. Thus government phased-out Dividend Reinvestment Plan under ELSS Mutual Funds. Top ELSS Tax Savings Mutual Funds Selection ProcedureI have considered following points in ranking ELSS Funds
Consistent Return over long term of 3 to 5 years has been considered in ranking top 5 ELSS Funds.
Only schemes having AUM above Rs.250 crore is taken, as high net assets denote the confidence and trust of the investors.
Schemes having CRISIL Ratings of 1 (5 stars) & 2 (4 stars) and VRO rankings of 4 stars & 5 stars have been taken into account.
Expenses Ratio is passed on to the customers so funds having minimum expense ratio are considered.
Funds are also ranked as per their mixture of stock portfolio. Funds having high beta stocks have been ranked less and with low beta have been ranked high.
Association of the Fund Manager with same mutual fund scheme and also the trust worthiness of fund houses are taken into consideration. Top 5 Best Performing ELSS Tax Savings Mutual Funds
Axis Long Term Equity FundReasons to Invest: Axis Long Term Equity Fund is a clear winner amongst in the ELSS Tax Savings Mutual Funds category. Despite of being newest fund, Axis Long Term Equity Fund has given return of 21.62% over the past 5 years. The AUM of the fund is as high as Rs.5,879 crores and the expense ratio of the fund is at par with other funds at 2.46%. Stock Mix: Axis Long Term Equity Fund portfolio allocation comprises 3.50% of debt instruments and remaining 96.50% of equity. The fund has maintained a 55-60 % of large-cap stocks, 35-40% of mid-cap stocks, with a marginal small-cap allocation. The mid-cap weights are higher than peers. Birla Sun Life Tax Relief 96Reasons to Invest: Birla Sun Life Tax Relief 96 is a 2 decades old mutual fund consistently beating its benchmark S&P BSE 200. This fund is able to generate 28.12% return over the last 3 years. The AUM of the fund is as high as Rs.2,034 crores and the expense ratio of the fund is at par with other funds at 2.36%. Stock Mix: Birla Sun Life Tax Relief 96 has major proportion of around 55% of large-cap stocks in its portfolio. Mid-Cap stock comprises around 30% and small-cap stocks are just around 15%. This fund has no debt instruments in its portfolio. Franklin India Taxshield FundReasons to Invest: Franklin India Taxshield Fund is given an impressive return of 16.61% in the last 5 years. The AUM of the fund is as high as Rs.1,854 crores and the expense ratio of the fund is at par with other funds at 2.43%. Stock Mix: Franklin India Taxshield Fund portfolio consist 65% of large cap stock with 30% of mid-cap stock. Remaining 5% is allocated into cash and cash equivalent assets. Religare Invesco Tax PlanReasons to Invest: Religare Invesco Tax Plan is a decade old fund manages to give returns of 15.295 in a long-run of 5 years. The AUM of the fund is at moderate level of Rs.260 crores and the expense ratio of the fund is at par with other funds at 2.87%. Stock Mix: The portfolio is mostly invested with a 50-55% large-cap weight at most times with few giant caps which are balanced out by a higher 35-40% mid-cap exposure. The debt instruments are meager of 5% in the portfolio. IDFC Tax Advantage (ELSS) Fund – Regular PlanReasons to Invest: IDFC Tax Advantage (ELSS) Fund is launched at almost same time of Axis Long Term Equity Fund. This fund manages to post returns of 15.4% in the last 5 years. The AUM of the fund is at moderate level of Rs.372 crores and the expense ratio of the fund is at par with other funds at 2.88%. Stock Mix: The portfolio is mostly filled with equity investment of 95% leaving a tiny space of 5% for debt instruments. Both Giant and large cap stocks find 20% space in the portfolio. Mid-cap stocks have highest proportion of 40% with 15% of small-cap stocks. Points to Ponder:
Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. IDFC Tax Advantage (ELSS) Fund 4. ICICI Prudential Long Term Equity Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. DSP BlackRock Tax Saver Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. HDFC TaxSaver
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online
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 |
| Posted: 20 Oct 2015 01:18 AM PDT Dena BankDena Bank was founded on May 26, 1938 by the family of Devkaran Nanjee as the Devkaran Nanjee Banking Company Ltd. The bank became a public limited company in December 1939 and the name was changed to Dena Bank Ltd. In July 1969, Dena Bank Ltd., along with 13 other major banks, was nationalized. Dena Bank is now a public sector bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. IDFC Tax Advantage (ELSS) Fund 4. ICICI Prudential Long Term Equity Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. DSP BlackRock Tax Saver Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. HDFC TaxSaver
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online
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 |
| Posted: 20 Oct 2015 12:55 AM PDT Thousands of people were made homeless after the recent earthquakes in Nepal. The tremors were felt in India, too. The tremors come as a reminder to us on how important it is to have home insurance. Still, not many people in India buy home insurance due to a lack of awareness, Three kinds of risks are covered under a home insurance policy. The basic policy protects the building against fire and allied perils such as earthquakes and floods. The second type of risk coverage protects the contents of your house from both natural and man-made calamities, including burglary. The third covers peripheral risks such as loss of baggage in transit. There are many misconceptions about home insurance. Here are the most common ones: >> Home insurance does not cover the Act of God. Many people believe that home insurance does not cover acts of God. But the fact is that acts of God are covered under home insurance. Section 1 of a home insurance policy generally covers fire and other allied perils such as floods. Generally, coverage is offered under nine to 10 sections, of which you need to take at least two to three sections. Section 1 is usually compulsory in all the policies. But you need to read the policy document carefully so that you know what exactly is covered. For example, a policy covers flood but it does not cover damages as a result of heavy rains. Water seepage through walls and roof does not fall under the definition of flood. According to insurers, flood and inundation are caused by overflowing of a water body due to accumulation of a large amount of rainwater in areas which are usually dry. So, understand the definition of perils before you buy a policy. What to do? It is advisable to go for a comprehensive home insurance cover to avoid last-minute surprises. Considering that each policy differs in wording, check out with your agent the extent of coverage offered under the policy. Generally, the coverage under home insurance is offered section wise. For example, the first section is for fire and allied perils, the second is for house break, and the third is for loss of jewellery and valuables. Read the policy documents carefully to understand what all is covered. >> Home insurance is costly. It is not. Consider this: for sum insured of Rs 10 lakh (assuming you have a house with a built-up area of 1,000 sq.ft and construction cost is Rs 1,000 per sq.ft) and valuables worth Rs 5 lakh, including jewellery, the premium comes to around Rs 2,500. This is just 0.25 per cent of the sum insured. But the fine print is that home insurance generally pays you the cost of construction and not the cost of land. The cost of construction is arrived at by multiplying the carpet area of the house with the cost of construction in that city. A few policies cover the cost of land. One such is "My Home All Risk Policy" from Bajaj Allianz General. What to do? Low premiums mean low commissions for agents. So your agent might not be keen to sell the policy. The best is to buy online. >> Claim settlement is complicated. Many fear that claim settlement is a lengthy process. It is not so. If you know how to file a claim, you can speed up the claim process. For example, in case of any eventuality, the insured needs to intimate the claim to the local office or to the company's call centre. The insurance company deploys a surveyor and the claim is settled after the losses are assessed. The insurer asks for your know-your-customer (KYC) documents to identify the claimant but usually in case of large-scale eventualities insurers relax the settlement procedures. At times, insurers just ask for the date and the year when the policy was issued so that they can cross-check it in their database and settle the claim. What if the insurer's office gets destroyed in a calamity? With the advancement of technology and development of insurance-related software, insurers possess policy-related documents in electronic form and claims are settled using such software. Even if damage occurs to an insurance office, it will not hamper the processing of claims. What to do? The best solution is to be aware of the whole claim process in advance so that when the calamity happens you know what to do. >> Home insurance with home loan is sufficient. Most home insurance policies bought at the time of taking on a home loan cover the building structure only, without any coverage for contents such as household articles and electrical appliances that can also get damaged during a natural calamity. Such policies mostly cover basic perils such as fire and flood. Only a comprehensive home insurance product covers both structure and contents. Often, policies with a home loan represent only the loan amount and not the value of the property. This would adversely affect the insured as in the event of a claim, the amount under insurance would apply and the claim amount would be considerably reduced. What to do? The right way to buy home insurance is to have adequate sum insured and proper basis of coverage, including a cover for the home contents. Check with your agent whether the policy covers acts of God and perils such as earthquake. >> You cannot buy home insurance without owning a house: If you have given your house on rent, you can take insurance for the structure as well as for contents. Specific covers are also available in the market. As a tenant also, you can insure the contents of your home. If you move to another place, you can get the policy endorsed for change of address. The perception that calamity befalls others and that your property would always be safe needs to change. The earthquake in Nepal should wake us up from our slumber. 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 |
| You are subscribed to email updates from Prajna Capital - An Investment Guide. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment