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

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