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

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Read more

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...
Read more

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...
Read more

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Read more

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
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