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Monday, December 11, 2017

Inflation Impact on Money

Rs 10,000 in 1982 is worth just Rs 607 today, all thanks to inflation. Take a better look at the problem




What compound interest gives, inflation takes away. Put it another way- inflation is the effectively the reverse, it's like decompound interest.


Since each year's inflation occurs on top of the previous year's inflation, it means that the effect is just like that of compound interest. Consider a situation where you invest Rs 1 lakh of your money in a deposit which earns you 8 per cent a year. At the same time, the prices are also generally rising at the rate of 8 per cent a year. In such a situation, your compounding returns will just about keep pace with the inflation.


The actual amount will increase, but what you can do with it won't increase in line. So, for example, over ten years your R1 lakh will become R2.16 lakh. However, at the same time, on an average the things you could have bought for R1 lakh will also cost R2.16 lakh. In effect, you have not become any richer. The purchasing power of your R1 lakh what it used to be ten years ago. The rise in the amount of money you hold is just an illusion and is completely negated by a corresponding rise in prices.


But inflation may not be so kind as to stay at the level of the interest you are earning. What if it's more? And what if this goes on for a very long time. Suppose your returns are 8 per cent but inflation stays at 10 per cent and twenty years go by?


Your investment would grow to R4.66 lakh but things that used to cost R1 lakh would now cost R6.72 lakh. Now, the purchasing power of your R1 lakh is just R69,000. Your investment has actually made you poorer! This is not a theoretical example- it actually happens to millions in India. In our country, over the past thirty to forty years, the inflation rate has been either the same or a little bit higher than many of the deposits that are available. Unfortunately, far too many people think of the two problems as unrelated.
















The common problem is the inability to account for inflation. People think in nominal terms and the future impact of inflation is awfully hard to internalise. The real solution to this is that we should become a low-inflation economy but since that's clearly not on the agenda, savers should always adjust for inflation mentally.


If R1 crore sounds like the kind of money you'll want twenty years from now then you'll actually need to have about R4 crore. If you work backwards from there, you'll need to save about R68,000 a month if the returns are 8 per cent. By the way, if you don't already use it then google 'rule of 72', which makes quick and rough calculations of this sort easier.


That's a depressingly large amount, but there it is, there's no escape from the arithmetic. What that actually tells you is that over long periods of time, you need a form of investment that's inflation adjusted. That equity is risky, is drummed into all investors.


However, it takes just a little thinking to figure out that inflation is riskier. And to match inflation, and to get real returns on top of that, you have to latch on to something that goes up with inflation anyway. This is not difficult because the value of goods, services and assets in the economy is inherently inflation-linked. And so risky or not, equity and equity-linked investments are the only game in town to protect yourself from inflation.




Mutual Fund ELSS Funds are best option for Tax Saving

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

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Premature closure of PPF account

Account holders of the Public Provident Fund (PPF) can prematurely close their account if it has completed at least five years and the reason for closure is medical emergency and higher education.


The change in PPF Rule
According to this recent change, a PPF subscriber shall be allowed premature closure of her account or account of a minor of whom she is the guardian on grounds that the amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority. Similarly, you will be able to prematurely close your PPF account for higher education needs only if you produce documents and fee bills showing confirmation of admission in a recognised institution in India or abroad. The premature withdrawal, however, comes with a penalty-you will get 1% less interest as applicable from time to time.

Earlier you were not allowed to prematurely close your PPF account. You had to complete 15 years to close it. So, even if you left the account inactive, you could only get the money after 15 years. Earlier you could only do partial withdrawal from the seventh financial year onwards. For partial withdrawals, earlier the rule was capped at 50% of the total balance at the end of the fourth year, counting back from the year of withdrawal or 50% of the total balance at the end of the year before the year of withdrawal, whichever is lower. Withdrawals could be made only once in a financial year.

Mutual Fund ELSS Funds are best option for Tax Saving

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

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Invest in Mutual Funds for Children


A minor can invest in mutual funds through a guardian




A minor (person below 18 years of age), can invest in mutual funds. However, it can be done only through a guardian. An adult, being a parent or lawful guardian of the minor, can hold units of a mutual fund and transact on behalf of the minor. You need to furnish necessary documents like the proof of age and the guardians capacity to hold and deal in mutual fund holdings.



Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

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ULIPs for Tax Saving


Many readers may not agree and even experts might have their reservations about them, but the new online Ulips are very different from the pre-2010 policies. The new Ulips have very low costs, which leaves a lot on the table for the buyer. According to Morningstar, aggressive Ulip plans have earned almost 12% annualised re turns in the past five years.


However, keep in mind that these numbers only indicate the rise in the NAV. Some Ulip charges are levied by cancelling units, so the actual returns for the investor are likely to be lower. Even so, the ease of online access has made these plans attractive and use friendly.


What's more, being insurance policies, the income from these plans is tax free under Section 10(10D). So, if you switch your corpus from debt to equity and then back to debt, the gains will not be taxed. You can also park short-term money in the liquid fund of your Ulip using the top-up facility.

Despite these advantages, Ulips continue to be in the doghouse. It is time for investors to assess these plans afresh, without being influenced by the chequered history of the category.








Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300



 

Friday, December 8, 2017

Mutual Funds are Wealth Creators

   Start Mutual Funds SIPs Online 


Mutual funds are the fastest-emerging investment option for the long-term creation of wealth. However, the availability of a large number of mutual funds in the market has made it a difficult task to select the best plan to suit your requirement, budget and preferences.


Have I picked the right mutual fund? Or which is the best mutual fund to invest?

This is the most common question raised by investors in many financial forums. However, it is most difficult to answer the queries because without knowing the risk profile and investment horizon, no one would be able to suggest the best portfolio. One size never fits all. Therefore, a single portfolio of top 10 mutual funds is never suitable for every investor

In fact, he suggests that you should go for equity schemes if you have

# High risk appetite

# Long-term financial goals

# Minimum investment horizon of five years

Similarly, you should go for debt schemes if your risk appetite is low or you need some regular income with short-term requirements.

Also, among equity funds, every investor should have a different set of portfolio according to one's risk profile. For example,

# A conservative investor should invest in equity-oriented balanced schemes or large cap mutual fund schemes.

# A moderate investor should invest in diversified and large cap mutual fund schemes.

An aggressive investor should pick up mid and small cap funds.

Investors can also make a combination of schemes to make a suitable portfolio according to their financial goals and risk appetite. When making a good portfolio of mutual funds, we always do not have to pick the best ones in a category. We only need to choose one that matches our investment strategy and fits our risk appetite




Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

SBI Emerging Businesses

Best SIP Funds Online 




SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

L&T Tax Advantage Fund

 

L&T Tax Advantage Fund

  • Investment Style: Large Growth
  • Investment Process: The focus is on companies that are efficient allocators of capital
  • Fund Manager: Soumendra Nath Lahiri

The fund is managed by head of Equities Soumendra Nath Lahiri, who has about 20 years of experience on the investment side and has been managing or advising on portfolios for over 10 years.

The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can tend to give rise to a portfolio that is very distinct as compared with its peers. Risk management plays an important role in the process. Unlike Fidelity, which used to manage diversified portfolios of 70-90 stocks, Lahiri prefers running portfolios of 50-60 stocks. Stock concentration risk is avoided by maintaining a maximum individual stock exposure of about 6% in the portfolio.

In our opinion, the fund house has a good foundation in place since taking over Fidelity's mutual fund business in India. The processes have been structured in line with the fund house's goals and the investment team has remained stable. Nonetheless, we think it prudent to adopt a wait-and-watch approach and look at how the AMC builds on their existing processes and structure over the long term. Moreover, we would like to see the team work together over a longer period of time before we gain further confidence in the offering.




Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Thursday, December 7, 2017

L&T Midcap Fund

 
To generate capital appreciation by investing primarily in midcap stocks. L&T Midcap Scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest constituent of the Nifty Free Float Midcap 100 Index.



L&T Midcap Fund features in the small-cap category due to its preference for smaller mid caps. The fund's asset allocation reveals a 25-30 per cent allocation to small-cap stocks, about 10-11 percentage points lower than the small-cap category, while mid-cap allocation is about 55 per cent, with the rest parked in large caps. This may result in a lower risk profile, while also moderating the returns from this fund. The fund has been a moderate but very consistent performer, which has earned it a three-star rating almost without break for the last four years. Like other L&T funds, this fund's strategy is a blend of growth and value styles of investing. The focus is on owning fundamentally strong and scalable businesses with good management track record, at reasonable valuations.


After a very nondescript debut, with the fund trailing its benchmark from 2006 to 2008, it managed to outpace its benchmark in seven of the eight years from 2009 to 2016, quite a challenging period for the stock market. While it has been a consistent beater of its benchmark, it has had greater trouble outpacing the category, probably due to its conservative bias. Trailing one-and three-year returns, however, show it to be improving its relative performance, with a 9-10 percentage-point outperformance of its benchmark and 3 percentage-point outperformance of the category in 2016.


Overall, a conservative choice in the volatile small-cap category.


Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




 

ICICI Prudential Dynamic Plan

Best SIP Funds Online 



ICICI Pru Dynamic Plan completes 15 great years of wealth creation - a period in which investor wealth grew by 23x, at a huge 24% CAGR. The biggest lesson Naren says his team imbibed in this eventful 15 years journey, is that markets are truly dynamic - gyrating from extreme pessimism to extreme optimism and vice-versa. That's where the dynamism of this fund comes handy - it can move from aggressive to conservative in its equity stance, even as it searches for value across other asset classes including bonds, offshore equity and going forward, REITs and InvITs.              


Performance Scoreboard

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Past performance may or may not be sustained in future. Performance data refers to growth plan. #Inception date of growth plan: October31, 2002. ^Inception of dividend plan: January 09, 2004. Source: MFI Explorer. Data as of Sep 30, 2017.


Consistent Performance


ICICI Prudential Dynamic Plan has outperformed in each year except in 2007, when markets were in bubble territory


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Past performance may or may not be sustained in future. Inception Date: October31, 2002. Source: MFI Explorer.


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Active Fixed Income Allocation

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The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme.


SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com 

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