Skip to main content

Stagger Your Investments for Maximum Returns

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

2012 may be the year of consolidation, providing long-term investors an opportunity to enter the stock market


   Gaining in the equity market to a great extent depends on the time of entry. For example investors who would have invested in 1996, 2003 and 2009 would have made huge returns on their investments over the next few years, while the ones who would have invested in 2007 or 2011 would have mostly lost their money.


That is why as an investor one always wants to know when to enter the market.

The benchmark Sensex has fallen 24% since its last high in November 2010. From the peak valuation of 24.1, the price-to-earnings multiple of Sensex has come down to 16.7 at present. This is lower than the 13-year average of 18.5.

Based on this one still can't conclude if the markets have bottomed out or have further scope to fall in the year ahead since at the last bottom the Sensex valuation had dipped to 10.4 and 11.6 levels.


One thing is sure that the market is most likely to find its bottom sometime in 2012, which will offer a lucrative entry point to investors. However, no one really knows when or at what level. As they say, it is almost impossible to catch the lowest point and any one waiting to invest at the bottom-most point is most likely to miss it. Hence, as a prudent investment strategy, one can consider investing in staggered manner in 2012, as waiting for the bottom may not be possible. Here are certain factors which favour this argument.

Market Cycle & Valuation

The stock market data since 1990 suggest that the Indian market typically follows a four-year cycle. Four years of bull phases is followed by four years of consolidation. After the crash in 1992, the market took around 4 years to consolidate, before it started to move in the upward direction in 1996. Within next four years, by 2000, the Sensex had doubled.


In 2000, the market suffered another crash, commonly known as the dotcom bubble burst. Post this, the market consolidated for four years, from 2000-2004, when the next bull phase took off. The Sensex more than quadrupled in the next four years to touch 21000 level in January 2008. Stagnation followed thereafter followed by the crash below 8500, which gave an excellent opportunity for long-term investors.


The four years of consolidation will complete in 2012. The question now arises, is 2012 a good year for retail investors who are planning to invest with a time horizon of three to five years. Over the past 25 years, the market has given returns at an average CAGR of 14%.


The valuation at which the Sensex is trading right now is not very expensive. It is trading at a price to earning multiple of 16.7, which is quite cheap. For the past 13 years, the historical average price to earning multiple has been 18.5 and the Sensex has traded at the highest price to earning multiple of 29. And 2012, there are high chances of market reaching the bottom, before it enters another bull phase.


Hence, it is a classic opportunity for investors, who are looking at investing for a horizon of three to five years, to enter the stock market.

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

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

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

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
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