Skip to main content

Investment Plan

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

People generally use such big events as an excuse to delay their decisions or hold back their investments. We always try to look at the reason closely and communicate to them that unless it is a negative news on the personal front such as illness or job loss or pay cuts, they shouldn't change their plans. We strongly discourage people from making such decisions based on market conditions. For example, there are regular arguments like the market is so high or gold prices have soared. Or some would say that let the RBI policy or the Budget be over. We try to convince them that these are not genuine reasons for them to stop or postpone their investments.


More than investments, people tend to postpone or advance their big-ticket purchases before an event like Budget. Somehow, there is a notion that Budget normally drives prices high. When it comes to investments, often these big events are almost inconsequential in the long term. Unless there is a really big event that alters the entire landscape of investment space, investors shouldn't bother about them. That is an advice you would hear from all advisors.


But how does it differentiate between these events? Or how does one know which one is a genuine issue or not. There is no standard advice on such issues and it is always based on the merit of the case. He says he has noticed that these big events or excuses fall under four categories: market related, government or regulatory driven, personal issues or career related. For example, when someone comes up with an argument that he wants to wait till December to see how foreign investors are going to invest before he puts money in the market. When someone points to higher gold prices as an excuse to avoid starting an SIP in gold. These are instances where you are trying to time the market, and it is a big NO," he says. The only occasion when he relents is when someone is expecting bad news on either the personal or the career front. "When someone is going though major illness in the family or somebody is expecting a pay cut or job loss, I always examine the issue more sympathetically. These are instances where one can consider delaying or holding back investments.

 

The big event has to be something like a landmark judgment or a policy decision. Or it also could be an unbelievably good deal, he says. "For example, there was this offer of allowing 50% depreciation in the value of car during 2008. That is a huge trigger for purchases. But such events are very few. As for budget and policy review by the central bank, he believes that mostly they won't alter your long-term plans. People who are waiting for policy announcements in the Budget tend to forget that most of these things are already factored in the price of stocks. So when the actual announcement comes, there may be only a small reaction to that. Sure, there are totally unexpected announcements that will move the market, but it is not wise to wait for them to make investments.


So, the next time you feel like waiting for a big event to pass before starting a SIP or renewing one, remind yourself that it is thinly-veiled effort to time the market. Also, remind yourself that it is almost impossible to time the market in the long term.

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

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

Popular posts from this blog

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

What are the factors affect the changes in Interest Rate of Fixed Deposits?

  What are the factors affect the changes in rate of Fixed Deposits? Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit. Policies of the Reserve Bank of India   - The several norms and restrictions posed by the Reserve Bank of India , in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc. Recession   - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial marke...

Mutual Fund Review: ING Dividend Yield

  ING Dividend Yield's small assets enable the fund manager to churn in impressive returns… Strategy The aim of the fund is to invest in stocks which offer a high dividend yield. This fund deploys a value based strategy which aims to gain from investing in fundamentally strong and free cash flow generating businesses. The scheme focuses not only on growth but also on the cash generated by the business, which mostly leads to stable returns even in volatile markets. This fund has a low volatility because of its investment in high yielding stocks. The scheme tries to include stocks that yield dividend above the dividend yield of the Nifty and stocks with liquidity, which throws up a universe of 150 stocks.   Our View Launched in October 2005, this fund invests at least 65 per cent of its assets in high dividend yield stocks. The fund has consistently maintained a mix of stocks across varying market capitalisation, with a higher tilt to mid caps compared to small caps. Howev...

SBI Small Cap Fund

SBI Small Cap Fund scheme seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of small cap companies. SBI Small Cap Fund has widened its margin of outperformance relative to its category and benchmark in the last one year, earning itself a five-star rating. The fund shows a hefty 18 percentage-point outperformance relative to its peers in the last one year, 5 percentage points over three years and 4 percentage points over five years. Needless to say, it has also outpaced its benchmark to deliver convincing five-year annualised returns of 37 per cent. A believer in the credo that a small market cap does not reflect business quality, the fund looks for five attributes in the stocks it buys: competitive advantage, return on capital, growth, management and valuation. SBI Small Cap Fund is among the few in this space to remain at quite a man...

Myths about Exchange Traded Funds (ETFs)

1) ETFs Are Similar to Individual Stocks: Like MFs, ETF consist of an underlying portfolio of securities that's designed to follow a specific index or investment strategy. Hence, they are as diversified as various mutual funds. 2) ETFs Only Invest in Equity: Since they are listed on the exchange, the general belief is that ETF only consists of equity asset class. Globally, ETFs are available across asset classes – equity, debt, commodities, real estate and so on. In fact, over the past couple of years, India has also seen the emergence of Gold ETFs. 3) All ETFs Are Index Funds: ETF started as a fund which used to track indices and hence they were branded as index funds that are listed. However, ETFs have progressed rapidly and are no longer associated only with passive index funds. Globally, we have seen the launch of actively-managed ETFs. In India, also we recently saw the emer gence of fundamentally-weighted ETFs on Nifty, which busts the myth that ETFs are index funds and can...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now