Skip to main content

Financial Planning Tips

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

 

1. Understand Money’s worth: First and foremost thing that young investors/beginners have to learn is understanding Money’s worth. They should learn that money is what you earn in exchange for your time in some productive pursuit. If you earn Rs 50000/- per month i.e in 25 days or in 200 hours, this means your per hour earning is Rs 250. Whenever you want to spend something somewhere, you just have to see that if that particular thing is worth the time you spent on earning the same. Respect the money, gain financial discipline. Learn How to be good with money.

 

2. Save 20% of your income: Start with saving atleast 20% of your monthly income. This is very crucial to develop the discipline. Use any instrument – Recurring deposit, Mutual funds SIP, PPF etc. but use it after understanding the pros and cons. Keep it simple but stick to it and never get lured to withdraw this savings. It would be much easy for those who are living with their parents who are taking care of household expenses, but may not be that difficult even for those who have the family expenses responsibility too.

 

3. Create Emergency fund: Out of the 20% income savings you make every month, first thing you have to do is to accumulate your 3 months income and keep it safe somewhere in liquidable form to manage emergencies like Job loss or health problems.

 

4. Buy adequate insurances: Your savings should be backed up by adequate insurance coverage. If you have financial dependents then go with Life insurance also, otherwise adequate health insurance and accident insurance is very much required even if your employer has covered you under their own sponsored insurance coverage. What is adequate, needs to be calculated, but to start with you may go ahead with 20 times of your annual income for life insurance.

 

5. Understand that tax saving is not about buying Insurance Policies: Investing for tax saving is the first place where youngsters start making the mistakes. Almost every new employee I have met feels that tax can be saved only by buying some Insurance policy. Buy insurance policy only to cover the risk and automatically some tax saving will also happen. But don’t buy policies just to save tax. There are many different instruments where you can invest to save tax which you will learn over a period of time, but stay away from Insurance policies.

 

6. Track your expenses: I can understand that though important it would not be fair on my part to put the pressure of Budgeting on the new earners. That’s why I just wanted you to start with saving just 20% of your income. But still going forward after few months or years you have to learn this concept and work on it. It’s hard to know how much you could be saving if you don’t know what you are spending. So I advise my friends to track their expenses. Whatever you spend, where ever you spend just note it down. Understand your pattern of expenses. Spend by keeping in mind point no.1 mentioned above. I am sure after some time you yourself starts understanding the importance of spending wisely.

 

7. Avoid Loans: Having regular inflow in your account will bring along so many loan offers from banks and when you are not sure about your goals and requirements, you will surely get tempted to go overboard and take loans for many not required things. Till the time you don’t get confidence in managing your finances you should not indulge into any kind of loan…be it for a bigger car or apartment. Taking loans at this stage will create long term commitments which permanently commit you to higher spending in the future and can make it harder to deal with uncertainties of life later. and when your financial life has not yet designed you should not fall into this trap. You should know the difference between Good Loans and bad Loans. It is quite understandable that buying those big things from your own income in short span will surely give u “a high” and instant gratification but sooner you learn the fine art of delaying gratification, the sooner you’ll find it easy to keep your finances in order. As I said earlier that this stage of life will design your financial mindset, so there should not be any place of loans in it. Save first and then spend even for your mobile phone or ipad

 

As they say that “the first thing assured by beginning is the end” and “Well begun is half done”, so i believe once you start following the above mentioned financial planning tips religiously you will also start feeling the same.

 

 

 

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

 

 

Leave a missed Call on 94 8300 8300

 

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 Mutual Funds Online

Invest Any Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

 

Best Performing Mutual Funds

    1. Largecap Funds             Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds         Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. 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
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds   Invest Online

      1. DSP BlackRock MicroCap Fund

2.       Franklin India Smaller Companies

E. Sector Funds          Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds      Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds        Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds         Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
Read more

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Read more

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
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