Skip to main content

Excuses for not Investing

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

Anil Das (36), like several of us, does not spend any time to look at his finances nor does he intend to. His standard excuse, again like it is for most of us, is that he does not have the time for it. As a result, few lakhs of rupees have got accumulated in his savings account, which attracts the attention of his bank relationship executive. The bank executive meets up with Das and convinces Das to invest money in the best possible scheme.

Das, who again, does not have the time to understand nor read the details of the scheme being offered, signs the proposal form trusting his relationship executive. The product eventually turns out to be a Unit Linked Insurance Plan (Ulip) sold in the name of investment.

Scores of such gullible investors like Das fall prey to the rampant mis- selling just because of their ignorance and paucity of time. By the time they realise what they have got themselves into, it's often too late and a sizeable amount by way of premium has already gone into those insurance policies without yielding the desired result.

Some investors end up piling up a huge amount of surplus in their savings account, waiting for divine intervention to tell them that now they need to invest that money elsewhere lest they end up losing on the interest or higher returns that could have been earned by investing in better avenues.

Today, thanks to technology one can open a fixed deposit either through online or mobile banking, buy stocks, mutual funds and even insurance policies online. But most investors dont do it because either they don't understand personal finance or because they have no access to an advisor who can guide them. The first step is to acknowledge that financial planning is very essential for the welfare of the family. Here are a few tips that can help investors to take control of their financial life. Take responsibility: In most families, there are endless duels between the spouses about who will take the responsibility of taking care of transacting and managing investments. Most spouse and on the contrary they want them to take care of all the paperwork and filing of statements, and so on. A better way out is to share this responsibility equally. Both should learn a few basic things on personal finance by reading up. Today, there is plenty of information available in and even by product monitor monthly budget: This is the most critical part of your financial life.

time constraints, can simply key in the data on their smart phones which can be easily compiled and analysed at the month end. Initially you may find it cumbersome and unnecessary to do this exercise, but this brings in a lot of discipline in the way you manage your money. You will start spending your money more responsibly than before. Monitoring the budget will also tell you how much surplus is there for you to invest regularly.

Write down your financial goals: If you are not serious now regarding your financial goals, by the time you realise, it may be too late to do any course correction. Take some time off from work if you feel that you do not have the time for this important activity. Involve your spouse and take his or her help in writing down important financial milestones that you want to achieve in life. Once the goals are clear, the vigor to pursue those goals follows.

Contingency fund: Before one can start investing, keep aside three months of your monthly expense in a savings account or a liquid fund to take care of any emergencies which might demand the instant requirement of cash. In case there are dependent parents without any health insurance cover, then maintaining additional amounts for their medical emergency can be beneficial. Decide your asset allocation: This will define where you will need to invest to achieve your financial goals. If you do not have the knowledge or the ability to understand various asset classes then take the services of an advisor or planner who can handhold you and guide you on the various aspects of your investments that are aligned to your financial goals. Ideally, don't completely leave it on the advisor, but try and understand why the recommendations have been done in the first place.

Remember, "Failing to plan is planning to fail". In spite of having the financial resources at their disposal, most people fail to build a substantial corpus as they don't take the initiative to put their financial life in order. It is your responsibility to create a financially secure future for your near and dear ones.

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

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

Guide to pension plans in the form of Insurance

  Pension plans ensure that you are financially secure during your golden years. Take a look at the important aspects that you must keep in mind while opting for one...      Gone are the days when a leading criterion for choosing an employer was the type of pension plan that came with your salary package. Today, more important issues like matching of skill sets to job requirements, scope for personal and financial growth, etc. have come to the forefront. However, this has left individuals with the responsibility of financially planning for their golden years. And it's all for the best as there are a variety of pension plans available in the market to suit different individuals and their specific needs. WHAT ARE PENSION PLANS?     In a pension plan, you are required to pay premiums for a certain number of years and once you reach the retirement age, the insurer returns a lump sum amount that can be then used to purchase an annuity or stream of income for the rest of your life....
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...
Read more

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
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