Skip to main content

Must have investments in your diversified portfolio

Invest Mutual Funds Online

Download Mutual Fund Application Forms

MANAGING money is easy, but managing it efficiently is tough.

In this era, when a plethora of products are on offer, the investor sometimes gets confused about what to opt for and what not. Simply put, "Don't put all your eggs in one basket," is an age-old axiom, which proves that even our ancestors were aware of the need of diversification to minimise, if not mitigate, investment risks. This axiom still holds true, and, in fact, there has been no better time than today to take advantage of it. In the world of investments, I have always observed that the investor, who diversifies his investments over the long run, has always benefitted. Investors have always been in a dilemma about where to invest their money and how much to invest.

Well, the correct answer of this question could only be found after applying the concepts of financial planning, but, to generalise, we take a look at what we must have in our portfolio.
SIP in equity mutual fund: No smart investor in today's world can ignore this prominent asset class. Although, compared with the west, the Indian mutual fund market is still at a very nascent stage, but, with assets under management at Rs 6,64,000 crore as on financial year ending March, one cannot ignore it. Strict regulations and investor friendly initiatives taken by the regulator has, indeed, turned mutual funds into a very good asset class. Whether you wish to invest in equities or debt, mutual funds offer expert management of funds at a very small cost.


Systematic investment plan (SIP): It is a mode of investment in a mutual fund scheme through which a prespecified amount, which can be as little as Rs 500 per month, is automatically deducted from your bank account (through the ECS mode) at a prespecified time interval, and is invested in the prescribed mutual fund scheme.


Apart from all other mutual fund benefits, the best advantage of in vesting in an equity mutual fund through this mode is the benefit of rupee cost averaging, which means you get more units when market is down and lower units when market is up. Over a longer period of time, for instance five years or more, you can expect very good returns through SIPs as your average cost of units will be very low.


Bank fixed deposit (FD): With interest rates hovering at around 9.5 per cent to 10 per cent per annum and compounding quarterly, this investment makes sense and it makes one feel comfortable and wealthy too. Although, returns are taxable, yet it is good to keep some money in bank FDs.

Public Provident Fund (PPF): Another very important and popular savings scheme that is a must for all investors because of the multiple benefits it offers.

The recent interest rate hike has made it more lucrative. Now this scheme offers an annual rate of interest of 8.8 per cent, which is totally tax-free, and also, the maximum deposit limit has been hiked to Rs 1,00,000 per annum.

Apart from these benefits, this account does not comes under the wealth tax purview, cannot attached by any court of law in India and is an EEE (exempt-exempt-exempt) benefit account.

The amount invested gives you a tax rebate under Section 80C of the Income Tax Act. The interest accrued is also tax-free and the maturity amount is also tax-free.

This account can serve as a very good tool for retirement planning and is a must.

SIP in gold fund: Just like in equities, mutual funds these days offer gold SIPs too. Although, technically speaking, these are fund of funds. Gold SIPs invest in gold exchange-traded funds (ETFs) promoted by their fund house only. Yet, it opens the door to invest in this precious and lucrative commodity through the SIP route in small denominations and also get benefit of rupee-cost averaging.

Real estate: Now, this is something that everybody cannot get into, but if you can, then exposure in this asset class is a must. Although, all investments in real estate are not profitable, but most are.

Term insurance policy: The list cannot be complete without insurance, but, we should always keep in mind that insurance should be taken as a risk cover tool rather than an investment.

So, the best life insurance policy is a term insurance policy.

This product gives you maximum risk cover at a low price because the investment component is nil in such a policy.

Health insurance: Medical treatment costs are going up every year and every individual/family needs some protection against this risk, otherwise his/her savings, which are done for other goals, might get eroded if illness occurs. It is advisable to buy a family-floater policy, which these days come with a lot of benefits, or, one can consider the alternative of creating a medical contingency fund.

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

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Best Performing Mutual Funds

    1. Largecap Funds:
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    3. Mid and SmallCap Funds
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    4. Small and MicroCap Funds
      1. DSP BlackRock MicroCap Fund
    5. Sector Funds
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    6. Gold Mutual Funds
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments 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

LIC Leave Encashment Plan

LIC Leave Encashment Plan       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 - 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 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 Invest Any Mutual Fund Online Download Mutual Fund Application Forms fro

Tax Slabs 2012

Slab 1 Upto Rs 1.6 Lacs Tax Rate NIL for Men; Upto Rs 1.9 Lacs Tax Rate NIL for Women; Upto Rs 2.4 Lacs Tax Rate NIL for Senior Citizen; Slab 2 Rs 1.6 Lacs to Rs 5 Lacs Tax Rate 10% Slab 3 Rs 5 Lacs to Rs 8 Lacs Tax Rate 20% Slab 4 Rs 8 Lacs onwards Tax Rate 30%   --------------------------------------------- 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 ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 R

How Tax Deducted at Source (TDS) works?

    THE tax season is here. And if you are an employee you can't blame your employer for deducting large chunks of money from your salary towards tax deducted at source ( TDS ), which he is legally obliged to do. Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on... What is TDS? TDS reduces your taxable income and could even provide tax relief! The TDS collections account for 40 percent of the total taxes collected in the country. As the name suggests TDS is the amount of tax that is deducted at source in certain types of income . The TDS thus collected is deposited in the Government treasury within a specified time. How is it computed? Some of the types of income where TDS is applicable include salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and UTI/Mutual Funds, commission and brokerage

What is price deflator?

What is price deflator? A defaltor is used to restate data measured over time to prices prevailing at a particular period or time to make it comparable. Essentially, a deflator removes the effect of inflation from the data. What is the role of price deflator in GDP calculations? Prices are continuously in a state of flux, but generally trend upwards over time. Therefore, even without an increase in the quantity of goods and services produced by an economy, price increase can give the impression of an increase in the gross domestic product, or GDP, the benchmark indicator of economic activity. Therefore, the impact of prices has to be removed at arrive at a true measure of the value of goods and services produced, or real economic growth. A deflator is used to reduce output estimates at current prices to what they would be if calculated with reference to prices in a particular year. Why is GDP deflator considered a good measure of inflation? The ratio between the GDP at current p
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