Prajna Capital |
- ELSS Mutual Funds for Senior Citizens
- ICICI Prudential Banking & PSU Debt Fund - changes fund manager
- Mutual Fund STP Tax Implications
| ELSS Mutual Funds for Senior Citizens Posted: 11 Jan 2015 05:40 AM PST For senior citizen with taxable income, ELSS funds are an excellent option for tax saving
A popular misconception is that ELSS of mutual funds are not suitable investment options for senior citizens and retired persons. this comes from the widespread notion that equity-backed investments in any form are unsuitable for older and/or retired people. The reality is to the contrary.
Everyone who has taxable income should invest in ELSS. The idea that equity is risky and therefore suitable only for young people actually pushes many old, retired people towards financial problems. The culprit, of course, is inflation. And that's a problem that may abate, but will not go away to any substantial degree for a long time.
Equity investment maybe risky over the short term, but the long-term is an entirely different story. For investment periods of three to five years or longer, equity investments are actually low in risk and high in returns.
In fact, when you take inflation into account, it is bank FDs and similar deposits generate returns that are barely higher than the inflation rate and in effect, you lose value or barely maintaining it. The purchasing power of your money reduces at abuot the same rate as its value increases in a fixed deposit.
There are also some other points you should consider:
1. The returns you will earn from ELSS will also be tax-free because there is no long-term capital gains tax payable on equity. On FDs, the returns are taxable and TDS is deducted yearly. The yearly deduction of TDS further reduces returns by making less money available for long-term compounding.
2. ELSS is more liquid because the lock-in is three years. In tax-saving FDs, the lock-in is five years.
3. Unlike other kinds of FDs, tax-saving FDs are completely illiquid. Not only can you not break them prematurely, you cannot take a loan against them either.
Of course, like all equity investments, the best way of investing in ELSS funds is through monthly SIPs throughout the year. However, a smaller number of evenly spaced investments are also suitable.
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             | ||||||||||||||||||||||||||||||||
| ICICI Prudential Banking & PSU Debt Fund - changes fund manager Posted: 10 Jan 2015 09:01 PM PST ICICI Prudential Mutual Fund has changed the fund managers of the following schemes, with effect from January 15, 2015.
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      | ||||||||||||||||||||||||||||||||
| Mutual Fund STP Tax Implications Posted: 10 Jan 2015 10:08 AM PST
Money withdrawn from debt fund before three years, even for an STP, will attract short term capital gains tax
Funds transferred from one mutual fund to another through STPs are considered as redemptions from one fund and a fresh purchase in another, for taxation purposes. Therefore the money withdrawn from debt fund before the completion of three years will attract short term capital gains tax, as this will be considered as redemption from debt fund. These gains will be added to your income and taxed according to your tax slab.
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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