Prajna Capital

Mutual Fund SIPing
HDFC Mid-Cap Opportunities Fund - Best Midcap Fund
Savings Account Vs Liquid Funds

Posted: 25 Dec 2015 05:51 AM PST

All of us love sipping hot coffee early in the morning with our favorite news paper..Isn't it?

Blow simple tips could give you to SIP your investments for financial health.

SIP helps you to park a fixed / designated amount on a pre-set date of your choice. Essentially, you are investing on a fixed date of every month let's say.

This basically removes the worry of timing the market, which is still a big puzzle even to great financial pundits. If the markets are down, possibility of you getting more units in your mutual fund is higher.

The other alternate mode available is to ask for the purchase of specific number of units into your account. This basically means that your monthly investment amount might vary slightly but still a better option many investors consider pursuing.

Since all your monthly investments go through varying market conditions and rates, SIPs give you the best of Rupee Cost Averaging at all times. With consistency in approach and disciplined investment responsibility, you tend to have accumulate more units and also perhaps the per unit cost is also lower.

Like how the timing of the market is quite difficult, we could never know the bottoms or tops of the market, which also difficult. SIPsare the sure shot way to weed out any such timing related challenges that most of us will encounter while we invest. It will do immense good for you to enroll for a SIP and start the 'Healthy Habit of "SIP"ping'.

Best Tax Saver Mutual Funds for 2016 or Top ELSS Mutual Funds in india for 2016

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

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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You can write to us at

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Leave a missed Call on 94 8300 8300

HDFC Mid-Cap Opportunities Fund - Best Midcap Fund

Posted: 25 Dec 2015 04:52 AM PST

HDFC Mid-Cap Opportunities Fund - Invest Online

The aim of the fund is to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid- and small-cap companies.

A fund which has proved adept at containing downside in falling markets, HDFC Midcap Opportunities has retained a four- or five-star rating for the entire period since 2010. Typically parking 60-65 per cent of its portfolio in mid caps and 25-35 per cent in small caps, this fund also takes tactical calls to shift up to 25 per cent to large caps in dicey market conditions. Stocks are selected for their ability to grow strongly with high return on equity.
The fund has beaten its benchmark convincingly over three-, five- and seven-year periods by double-digit margins. This recent run has had its asset size expanding by leaps and bounds to over R10,200 crore by end June 2015. The fund's focus on mid-cap stocks rather than small caps may allow for deployment of this corpus without very high impact cost. What stands out in its yearly returns is its ability to weather any kind of bear market. In 2008, 2011 and 2013, this was a rare mid-cap fund to contain losses to levels far lower than peers as well as the benchmark. The fund has delivered muted participation in bull markets though, mostly just about matching the benchmark. This could be indicative of lower risk taking in the portfolio. The fund's tactical calls to raise its large-cap allocations have proved spot on. Incidentally, large caps were at a fairly high 24 per cent of the portfolio by end June.
It's a good fund to own if you want the returns that mid caps can provide without the nasty shocks that they can give you in bear markets.

Best Tax Saver Mutual Funds 2016 or ELSS Mutual Funds for 2016

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 -

Invest Online

Download Application Forms

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

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

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Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

Savings Account Vs Liquid Funds

Posted: 25 Dec 2015 04:07 AM PST

Savings account Vs Liquid Funds..Insights on which could benefit you well

A liquid fund is a debt mutual fund that invests in very short-term instruments — commercial papers, treasury bills, certificates of deposit, and so on. Liquid funds generally invest in instruments that have a very high credit rating.

In fact, liquid funds park your money in instruments not too different from the way banks do and hence are reasonably secure. Though liquid cannot promise a fixed return, their performance over the last 10 years has always been superior to the returns offered by Savings bank. On average liquid funds generate 8-9% returns which are significantly higher than the average savings bank rate of 4%.

Corporate houses have been using liquid funds to park their surpluses and derive some returns. These funds being low risk considering that their exposure to mark to market instruments is limited to the extent of 10%, retail investors can also significantly benefit from these investments.

Liquid fund, just like any other mutual fund have growth and dividend options. While these funds don't charge you on exit, one could potentially utilize the liquid funds to park money and then systematically invest in other high yield schemes. These funds have short tenures, no lock in period and held to maturity by the fund. With the maturity varying anywhere between 4 days to 90 days and redemption within 24 hours, you could temporarily park your surplus in a liquid fund that you might want to redeem shortly to meet a nearing obligation and still enjoy the benefit of a higher return.

With the deregulation of savings bank interest rates by RBI, some banks offer interest rates as high as 7%. Further, the budget took away most of the benefits that debt funds in general offered until last year. Earlier, all capital gains made on debt funds held for more than one year were treated as 'long-term' and taxed at a flat 10 per cent. But now, the tenure for claiming long-term capital gains tax on debt funds has been increased to three years. The tax rate on such long-term gains has also been hiked to 20 per cent (with indexation benefits) instead of a flat 10 per cent. However this change does not affect the liquid funds much which are anyway suited to much shorter investment horizons much lesser than a year.

In any case, the post-tax returns liquid fund still beat the performance of Savings bank.

Under the growth option of liquid funds, the investor is charged as per holding period. If the investor holds the funds for less than 3 years, then he/she is charged short term capital gains as per the tax slab he falls into.

Under the dividend option, the mutual fund company is charged with a dividend distribution tax of 28.84%.

Let's understand this with the help of a small example for some- one who falls in the 20% tax bracket and holds it for a year

Investment mode	Investment amount	Rate of return	Pre-Tax Returns	Tax rate	Post Tax Returns
Savings	5,00,000	6%	30,000	20.60%	23820
Liquid fund –Growth	5,00,000	8%	40,000	20.60%	28464
Liquid fund – dividend	5,00,000	8%	40,000	28.84%	31,760

Investors have a number of liquid funds to choose from. From a performance point of view, one cannot see much of differentiation between them. However, Crisil Liquid fund index serves as a good yardstick to compare their performance. So the next time you have a pile of cash, don't let it idle in a savings bank account. Learn to manage it better through a liquid fund.