Skip to main content

Use Debt Mutual Funds put your cash to grow

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

We never use the term "increase in productivity" in our general terminology of personal finance. This is something related to business houses, small or big doesn't matter. But I believe that to get the most out of our personal finances, we should manage it the way corporates do. Making and following budgets, maintaining books of accounts, keeping record of all expenses and incomes, doing quarterly review and keeping check on profitability , utilising all resources to the optimum level etc. Personal financial planning is just the personalised version of corporate financial management. This article is about using of Debt mutual funds to increase the productivity of idle cash. It is as important for personal finance as it is for businesses.

When we are looking for ways to increase the productivity in any business, the first thing to figure out is the idle areas in production. And among all factors, capital is the most important as it helps in buying and managing the others like land, labour Raw material etc. Now you can very well assume the fate of that business where the most important factor i.e. Cash is lying idle. Cash means Capital, which when used in day to day working is called as working capital and when for purchase of plant and machinery or land etc. called as fixed capital. It can be sourced through equity route by putting in own money or can be taken through debt route as in the shape of loan from banks etc. In whatever form it is, there should be optimum use of this which will help in increasing productivity of overall business.

1. Look Beyond bank deposits:

Generally business owners park their cash in the bank current accounts. They don't invest it anywhere thinking that the need to use cash might arise anytime. Some banks offers fixed deposit linked current accounts where the excess cash gets transferred to fixed deposit thereby offering better returns to the account holder. But banks have a slab rate structure where the returns can be lower for shorter periods as compared to longer tenure. The best alternate to these deposits are Debt mutual funds which can be used to park the surplus funds lying in current account or even the money meant for fixed deposit

These funds have different variants which can be used as per the suitability of time frame. You may use these for tenures ranging from a weekend to a year. This applies to personal finances also, where we say to keep only emergency fund in saving account and all excess cash should be invested properly as per the goals. Even for emergency fund parking these debt mutual funds like liquid/ultra short term funds can be used.

2. Cash management Strategies:

When you are clear on the time frame on usage of funds, you may design your cash management strategies accordingly and use mutual funds like Interval funds, short term plans, fixed maturity plans to your advantage. In these plans you get the potential to earn more than bank deposits and also save considerably on tax payments. As in debt funds you don't earn interest but capital gains and long term capital gain with holding period of more than 1 year is taxed as 10% without indexation and 20% with indexation.

3. Use the technology:

When you understand the working of debt mutual funds and start using it fully to your advantage, you may find difficulty in doing your business transactions since all of your those transactions has to be routed through bank. It becomes difficult to track bank accounts for surplus funds and also at times it's cumbersome to do Mutual funds transactions when you are in urgent need of funds. All this and many more such kind of issues can easily be sorted out if you use technology to the full. You may opt for online facility from MF houses to invest and redeem the funds, Use RTGS/NEFT from bank to get the same day NAV, There are many fund houses where you can purchase and redeem the units through SMS. You also may opt for the systematic withdrawal or transfer facility for your day to day requirement of cash.

Many individual investors or small business personas are of the view that it involves unnecessary hardships and debt mutual funds are not meant for small investors. But they don't understand is BIG THINGS HAVE SMALL BEGINNINGS. When you are serious to increase productivity, you may have to learn new things. There are many ways to do that but ultimate effort has to come from your side. And I believe me it's worth taking the effort. Whatever extra debt mutual funds generate for you will support your expenses in some way or other. So make the most of it and use debt mutual funds to its full potential and increase the productivity of idle cash.

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

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

Sundaram Mutual Fund new plan Sundaram Fixed Term Plan CJ

Sundaram Mutual Fund has announced the launch of a new fund named as Sundaram Fixed Term Plan CJ. The new issue will be closed for subscription on January 30. --------------------------------------------- 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 are: 1. HDFC TaxSaver 2. ICICI Prudential Tax Plan 3. DSP BlackRock Tax Saver Fund 4. Birla Sun Life Tax Relief '96 5. Reliance Tax Saver (ELSS) Fund 6. IDFC Tax Advantage (ELSS) Fund 7. SBI Magnum Tax Gain Scheme 1993 8. Sundaram Tax Saver   -...
Read more

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
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