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

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

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

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
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