Skip to main content

Start Your Planning from the Financial Year beginning

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Use financial numbers collated for your taxes to get together a financial plan & investment policy

 

The best time to start financial planning is always 'Now'. However, the beginning of the financial year comes a close second, say financial pundits. No, it's not an auspicious date. You can start on a clean slate at the beginning of the new financial year, as it is an ideal time to finalise your plans for saving, investing, spending and so on. There is no better time than April to start the planning process as you have just gone through the exercise of collating your finances for your taxes. Use those numbers to your advantage and get together a financial plan and an investment policy statement. These two documents should become the foundation of your financial life.

Starting

According to experts, most people need to begin at the beginning. That is: starting the process to get their financial records in order so that they know about their assets and liabilities. This process will help one figure out how much money s/he has to save, invest, and spend. It may also tell you that you have to first focus on getting rid of some liabilities before dreaming about great investments. Around this time, salaried employees receive annual bonuses and the tendency is to splurge on vacations or consumer goods. Instead, they should try to repay their liabilities. If not the entire debt, they should look at repaying at least a part of it. Any credit card outstanding, particularly, should be cleared as soon as possible, as it is the most expensive form of debt.

 

Interest rates on credit card outstanding are in the region of 39-44% per annum. Repaying other expensive loans like personal loans, too, should be the priority. Next, you should create a contingency fund to tackle unforeseen expenses. These apart, additional limp sum inflows should be used for plugging the gaps in your financial plan.

Tax First

You may remember the cliche about taxes — you can't escape death and tax. That is why it is always a good idea to start with tax planning. Most individuals postpone this task to the end of the financial year. However, you should remember that tax-saving is not a goal in itself, but is an important constituent of your overall, long-term financial planning strategy. Therefore, it makes sense to get started with this right at the beginning of the year.


You could look at systematically planning for your section 80C investments, health insurance etc, starting from April. This approach will help prevent the last-minute pressure towards March-end.


Also, if you earn income from sources like rent or interest on bank deposits, there is no better time than April to plan for the advance tax to be paid.


April is a good time to take stock of your advance tax liabilities and plan towards discharging it during the year. For instance, say, you are a salaried individual in the highest tax bracket and also earn income from rent or interest from fixed deposits, which amounts to over Rs 10,000. Now, it is possible that your bank is deducting tax at the rate of say 10% on your interest income, whereas the rate applicable is 30%. So, there will be a differential of 20%, which will constitute your advance tax liability. This amount has to be paid to the I-T department in three instalments in the months of September, December and March. If, for some reason, you skip an instalment, you will be charged an interest of 1% per month when you pay the next tranche three months later. Therefore, if you start planning in April, you will be able to manage your cash flows better and avoid this penal interest.

Another thing you have to remember is that saving or investing regularly to meet your tax-planning goals also yield you better returns from these avenues.


Investing early in the year in other tax-savings investment plans like PPF, Ulips, pension plans and so on, which have long lock-in requirements, will maximise returns for the investing year; at the same time, also allowing exit in the beginning, at maturity. Investing lump sum in PPF, which offers fixed returns, yields the best returns.


As always with investing, the earlier you start the better, as you let your money compound longer, thus earning more. If you have a balance which can be saved via an investment, the earlier you do it the more your money will work for you.


You can apply the same principle when it comes to your investments. It is always better to opt for the systematic investment plan (SIP) route to invest in equity mutual funds, including equity-linked savings scheme (ELSS) to save taxes under section 80 C.


My primary recommendation would be to get started on an equity ELSS SIP and systematic investments in RGESS

(Rajiv Gandhi equity savings scheme)

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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 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. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      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 Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

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...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more

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...
Read more
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