Skip to main content

Time to Review your Portfolio

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 



Several things have happened in the past few days and weeks that changed the investment climate significantly for the retail investor. Firstly, the US Fed has announced a tapering of its bond buying programme which could see risk- assets being impacted. Secondly, the bond market has seen its biggest turmoil in years, especially when liquid funds gave negative returns for a week, showing that theres no free lunch even in simple debt investments. Thirdly, equity markets have hit all- time highs, even in a slowing economy, thereby surprising experts.

 

Not surprisingly, many retail portfolios may have not moved as planned. But whether you had a good year or not, the way forward is to review what went right or wrong with your portfolio, and then rejig your portfolio to make the best of 2014.

The on set of tax- free bonds and soon- to- happen launch of inflationlinked bonds are other good triggers to revisit your portfolio. A tax- free yield of more than 8.5 per cent a year is mouth- watering. This is even better than the Public Provident Fund, or POMIS for that matter. These have risks attached, though they are low. The two issues of tax- free bonds currently available are of The Housing and Urban Development Corp (Hudco) and India Infrastructure Finance (IIFCL). Both have interest coupons ranging from 8.6 to 9 per cent. Although tax- free bonds are a good investment option for high returns, there is no easy way to redeem them as they are low on liquidity.

Though investments such as these are tempting, one should keep the liquidity disadvantage in mind before investing in them for longer periods.

Real estate has been going through a dull phase for quite some time now. Across the country distress sales are the norm in the real estate market. Delivery delays and correction in property rates are prevalent across several micro- markets.

Investors are neither seeing capital appreciation nor rental yields as delivery delays have impacted the under- construction property market. Ready properties have lower yields.

A recent study showed that many people who invested in debt markets because of its good performance in the last few years have lately not seen apositive real rate of return given the high degree of inflation in the country.

Equity funds on the other hand have shown greater potential and given good returns this year.

Given so many triggers to review one’s investments, how can one best utilise the present moment to stay on course amidst volatility? One proven technique is portfolio rebalancing. This involves reviewing and revising the composition of a portfolio, that is, one’s asset mix. One of the approaches to rebalancing a portfolio is called the constant- mix approach. This calls for maintaining the proportions of one’s investments with their target/ set figures.

Let’s say after working with your financial advisor you have chosen to keep 30 per cent in diversified equity funds, 40 per cent in fixed income assets, 10 per cent in gold ETFs, and 20 per cent in cash. The reasons for arriving at these figures may be several, but assume the proportions are determined according to the investment approach designed together with your financial advisor. If the markets show upward or downward movements, an investor has to periodically rebalance a portfolio to restore the target proportion (asset mix).

If one’s equity investments to purchase An a ‘contrarian’. Rebalancing leads to capitalising opportunities and cutting your losses, as well. For example, tax- free bonds are a good opportunity for investors looking to invest and save tax on the interest they earn. Senior citizens looking for regular income during retirement may allocate adecent portion to them.

One must realise that certain costs come with rebalancing a portfolio.

Every time one rebalances, one has not only to pay transaction charges but also taxes. Portfolio rebalancing should only be done when an investor feels that the market situation has altered. One can also decide on time- based rebalancing where an investor conducts the rebalancing exercise after a set interval.

A financial advisor is the best person to guide you on rebalancing your portfolio as s/ he would have good knowledge of market volatility, upcoming products, taxable gains and macroeconomic indicators likely to impact one’s portfolio

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

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

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

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

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

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...
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