Skip to main content

Safeguard your wealth against the volatility

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 



Legendary money manager Howard Marks often recounts a story. When he returned home after the 9/11 collapse of the World Trade Centre in New York, his son asked him if the world was less safe than before. Marks replied that perhaps it was less safe than everyone had thought it was. Marks' words of wisdom are worth pondering over today. The yo-yo years of the recent past have modified several assumptions.


Global investors are reassessing emerging markets and taking the view that China, India, Brazil and Russia hold risks that were unaccounted for earlier. Indian investors find that equity does not deliver in 2-3 years, but in 7-10 years, or more. Market cycles are swinging from one extreme to another, but the unravelling is always filled with surprises—pleasant ones at the top, and nasty ones at the bottom. Let me offer six quality checks to ensure that your ship is in order while you wait for the
storm to pass.


First, get real about your job and income. If you have been lucky to move your income up dramatically by switching jobs, negotiating smartly and taking risks, reassess it honestly. If businesses are unable to turn around, they are likely to downsize, or in the worst case, shut down. Get ready to take a salary cut, a reduction in revenue, or a lower demand for your professional services. Review that break or sabbatical. Find a way to monetise your skills. Recheck the foundations of your wealth to be sure that the income stream is not drying up.


Second, insurance is not a bad word. If you have been mis-sold Ulips and had a bad run-in with insurance that you bought only to save tax, you may be shunning a product that holds merit during bad times. Without the protection of insurance, your limited wealth may be lost in hospital bills, repairs and restoration, unexpected thefts and damages, and avoidable erosion. Seek out protection that is well-defined, reasonably priced and adequate to cover you and your family.


Third, repay debt and avoid leverage. A combination of high EMIs and risky jobs has taken a heavy toll on the happiness of several young couples. To borrow is to use tomorrow's income today. When income seems to be at risk, keep the charges on it to the minimum. Re view your loans. Is repayment stressing your finances? Can the upgrade for the car wait? Is there a point in keeping deposits at 8%, while loans at 12% are piling up? Should the maturing bond be used to repay a loan? A business faced with risks of revenue always reworks its assets and borrowings. What is not needed is sold off, and leverage is re duced on the balance sheet, so that the loss of revenue does not lead to insol vency of the business. A good quality household balance sheet will similarly have to balance out the borrowings and income.


Fourth, realign your assets to your needs. If your portfolio is primarily made up of your luxurious home, shares and derivatives, you need to rework the mix. A part of your wealth should be amenable to being drawn down in instal ments to help manage the loss of income or generate adequate income to augment your needs. You will need assets that are liquid, flexible, and less volatile. If your optimism for equity led to overweighing it in your portfolio at the cost of debt rebalance it. If you invested in a holiday villa and now your job is at risk, you need a rethink. It is more important to ask which asset will work for you, in stead of asking which asset is going to do well in the future. If your children are likely to draw the money soon for higher education, you may not want to keep the corpus in equity, hoping for the next bull run.


Fifth, risk is what you can bear, not what the market offers. The simplest definition of risk appetite in investing is about the downside you can suffer This is both about ability, in terms of the wealth that you have, and willing ness, in terms of your attitude to losses Sachin Tendulkar and Shah Rukh Khan should also be factoring in risks to their future incomes. Their accumulated wealth will give them the ability to take risks with their money, but their invest ments should also have a defined down side, more so when they know their abil ity to replenish their wealth would be lower in the future than in the past. En sure that you have not taken bets that will cost you your coat.


Sixth, asset allocation always works Ignore the gurus and pandits who read the crystal ball. Discount all advice about what the future holds. Future is but an imagined set of events, and can therefore, be only about probabilities not certainties. Give up the eternal search for the next best investing oppor tunity, and stop asking what will work next. Ensure that your money is put to work across assets, and do not indulge in a risky asset beyond your personal capacity for risk. A core portfolio, com prising your home, gold, PPF and bank deposits, is your base. A wealth portfolio consisisting of shares, ESOPs, mutual funds and bonds, is the add-on facili tated by your healthy earning, good sav ings and sensible investment. Your speculative positions, right from that house you booked for fun, to the com modities you traded as pastime, is the froth. Protect the core, be sensible with the wealth, and cut out the froth. Your ship might yet sail home to safety, weath ering the storm. 

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

Save Tax With Mutual Funds

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       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...

Investment Strategy - What is Sector Rotation Theory?

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   The economy goes through cycles : it expands for a few years and then contracts. Study of historical data suggests that different sectors tend to perform well on the stock markets during different stages of the economic cycle. While history never repeats itself exactly, some broad patterns tend to recur. Investors can take advantage of the sector rotation theory to move their money from those sectors that have seen their best times to those that are likely to do well in future.   The person who developed the sector rotation theory is Sam Stovall, chief investment strategist at Standard & Poor's. He developed this theory by studying data on economic cycles going as far back as 1854 provided by the National Bureau of Economic Research ( NBER ) of the US.   When trying to correlate stock-market perfor...

Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch this week

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme ( RGESS ) this week.   Though Finance Minister PChidambaram had approved on September 21, the scheme announced in this year's Budget, and had said that the revenue department will notify the scheme and the Securities and Exchange Board of India ( Sebi ) would issue relevant circulars within two weeks, it is yet to become operational.   A senior finance ministry official said the revenue department was expected to notify the scheme any day now to attract retail investors to the equity segment.   He added that Sebi was not required to issue any circular for the operationalisation of the scheme and that after the issuance of the revenue department's notification, investors would be able to avail of the benefits of the scheme.   The official accepted that implementation of the scheme had been delayed due to the deliberations on inclusion of mutual funds ( MF ) in it.   ...
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