Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Use Debt Funds to Help Achieve Goals
Some debt fund investors and their financial advisors have been devising ingenious methods to beat the higher capital gains tax proposed in the Budget. Arbitrage funds, rolling over investments in fixed maturity plans, balanced funds... every week, a new avenue to tackle the new tax regime was floated and debated. The FM hiked the long term capital gains on non-equity funds to 20% from 10%.
He also increased the holding period of investments to three years from one year. However, many advisors feel that investors must now focus on planning their debt investments just like they plan their equity investments.
I think it is time we stop trying to devise ways to overcome the higher taxes, and start focusing on planning debt investments. The trouble is that most individuals don't plan their debt investments. Parking surplus funds in liquid funds or FMPs was a debt mutual fund investment for many individuals, or chasing the interest rates to earn better returns. That has to change now, especially because of the three year restriction.
Many experts say these debt investors and their advisors are still focusing only on change in taxation as investing in debt mutual fund schemes was all about better post-tax returns for them.
The sales pitch was always debt fund have tax advantage over bank fixed deposits. Most advisors won't even speak about the possibility of better returns, especially when the interest rate cycle changes.
He says this sales pitch of superior to bank deposits is the sole reason behind the hike in long term capital gains tax on all non-equity schemes.
In short, if you have invested in debt mutual funds only to earn better post-tax returns on your surplus cash in liquid fund or FMPs, rethink your strategy . Similarly, if you parked money in debt schemes only due to the interest rate movements, you may have to redraw your strategy .
Your investment strategy should be based on your future goals and investment horizon. It can't be solely based on taxation. If anyone was using such a casual approach to debt investment, it was absolutely wrong.
Experts opine that the easiest way for individuals to ensure that they pick up the right investment is to focus on their goals, time in hand, their risk taking ability, and, of course, taxation on returns.
We have always used asset allocation to decide on the investment. It was always about liquidity needs, goals, time in hand and risk profile of the investor and so on. In fact, many people who had a financial plan were always using this method to invest their corpus.
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
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- 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
