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

Surrender ULPPs

  ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments.   Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...
Read more

ICICI Pru Constant Maturity Gilt dividend

Invest ICICI Prudential Constant Maturity Gilt Fund Online ICICI Prudential Mutual Fund   has announced dividend under the following schemes: Scheme Dividend ( R /unit) ICICI Pru Constant Maturity Gilt-DQ 0.26543239 ICICI Pru Constant Maturity Gilt Direct-DQ 0.27171609 ICICI Pru Q Interval Plan I-D 0.10617296 ICICI Pru Q Interval Plan I Direct-D 0.10703967 ICICI Pru Q Interval Plan I Ret-D 0.10617296             The record date has been fixed as June 13, 2016.   ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) ...
Read more

NPS Investment Choice for Safe Investors

Invest NPS Online       Whether they invested through SIPs or put in a lump sum amount, risk-averse individ uals have earned the highest returns. These are investors who stayed away from stocks and divided their NPS corpus between G class gilt funds and C class corporate debt funds. On average, gilt funds have given 9.75% annualised returns while corporate debt funds have churned out more than 11% in the past five years. As a result, the average return for ultra-safe investors in the past five years is in double digits. Even in the short term, ultrasafe investors have been the biggest gainers among NPS investors. Will the good times continue? The gilt funds of NPS are holding long-term bonds with an average maturity of over 19 years and a modified duration of about 9 years.These funds have done well because interest rate cuts have pushed down bond yields. But experts say this trend will not stay forever. NPS is a long-term investment and the bonds are predominantly held to matu...
Read more

Buy Health Insurance Plan even if you are covered with my Employer

Buy Health Insurance Plan Online Yes, getting a private insurance cover now, which extends beyond your retirement age, is recommended There are a few reasons why buying a health insurance plan may make sense even though you get medical insurance from your employer. Here are the points you need to think about. Firstly, your employer's insurance coverage will only protect you as long as you are employed with the company. The policy will terminate when you quit the job or when you retire. Post retirement is perhaps the phase when one needs it the most but you won't have it then. Moreover, buying a new insurance policy after the age of 50 means that there will be no coverage for pre-existing diseases.   Lastly, health insurance policy you get from your employer may or may not cover your dependants. ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver M...
Read more

SBI MAGNUM MIDCAP ONLINE

Invest SBI MAGNUM MIDCAP ONLINE   SBI MAGNUM MIDCAP fund didn't fare well in its initial years but, in recent years, has steadily improved its performance under the capable hands of its current fund manager. Although investing predominantly in mid-cap stocks, the average market capitalisation of its portfolio is lower than other category peers.   Although the stock selection approach is mostly bottom-up , the fund manager doesn't shy away from taking bold sector bets , as is reflected in its large exposure to the healthcare sector. She is equally adept at handling performance across market cycles--the fund has captured more of the upside during market upticks and contained the downside during downturns in a better manner than its peers.   Given its superior risk-reward equation, the fund is a worthy pick in its category.     ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing EL...
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