Skip to main content

How to deal with Inflation

 

Ever-rising inflation rate is one of the topmost concerns of the consumer today. Financial planning loses its purpose if inflation is not considered in it. Therefore, investment today does not only revolve around increasing the base amount, but to increase it at the rate at which it can overcome the inflation.

This is the most important element taken into account by those who do not invest their funds in government securities and debt instruments. The rate of inflation is mostly same with the rate of interest offered by the banks for the fixed deposit. Keeping your funds in fixed deposits also helps significantly because it at least does not devalue the fund amount instead increase it each year as per the rate of inflation, which is equitable to hedging against inflation. However, you are not able to earn returns on them. Comparing investment plans with fixed deposit schemes can help you to differentiate between them and you will be in a position to pick the best for you.

Let us see what you can do to hedge your invested funds against inflation as well as earn a decent amount of return on it.

  • Insurance plans: Insurance plans are known as the most efficient ways to invest your savings in a secured way and you are able to get long term protection for your loved ones. You will find numerous kinds of insurance plans in the financial market. But if we broadly categorize them, there are two kinds of insurance plans that is, traditional endowment plans and unit linked insurance plans, in short ulips.
    1. Traditional endowment plans are procured basically to get shield against the potential unfortunate financial crisis. The policyholder is also able to get a pre-fixed amount called as the sum insured after a definite period or at the stage defined in the policy documents. The basic objective of these kinds of plan is to get the protection, therefore the rate of return is not given much importance. Still, it enables a person to earn a decent amount of bonus and accumulated interest on his funds.
    2. Unit linked insurance plans, on the other hand, do belong to the insurance plan, but the motive of investing funds in these kinds of plan is different. Many people do not give preference to plan insurance plans, but to those plans which can provide them a good return on their investments. Ulips are linked to equity funds and therefore these kinds are plan are categorized under risky investments. This is the reason why buying ulips should be considered only by keeping the longer horizon in view. Prices of ulips can fluctuate the way equity market fluctuates, however it has the potential to grow your funds by many folds if invested with due care. It is always advantageous to buy ulips as it allows you to save tax on your invested funds up to a certain limit.

     

  • Systematic Investment Plans (SIP): Systematic investment plans are kind of plans that allow you to allocate the funds to be invested systematically, in a disciplined manner in various kinds of instruments. You can invest some of your amount in ulips and even in other kinds of debt and mutual funds. Investing in SIP brings up a regulated approach for you in which you invest a fixed amount of funds as per the schedule planned before.

Systematic investment is more like a method than a product. There are a wide variety of investment and insurance plans in the market. You can create a product by choosing the instruments that best suit your budget and future financial plans. This way you will be able to develop your own procedure of acquiring wealth. You can also consider money back plans which let you get the invested amount back in certain portions at regular intervals and you are able to earn good returns at the same time.

-----------------------------------------------
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 Saving 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) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

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

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...
Read more

Stocks with a high dividend yield

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) Stocks with a high-dividend yield can provide investors additional cash flow. More importantly, it is tax-free   With April 2011 just over, the 'earnings season' is well and truly here. This is the time most companies pay out a portion of their profits as dividends to shareholders. Since dividends are tax-free, they are an attractive income source with a select class of investors, who depend on these for additional cash flow. SIGNIFICANCE A company doing well and generating profits will usually be in a position to declare dividends regularly. Hence, a key parameter one should look at whilst investing in a stock is whether the company has a good dividend record. Typically, dividend yield stocks are large-caps and generally not capital-intensive. This is suggestive of the fact that the downside risk on...
Read more

For Retirement Invest in growth Assets

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   Last week, I wrote about the need for retired investors to have a growth component in their corpus to fight inflation. In the financial advisory space, it’s a challenge to convince retired investors to take risks in order to achieve capital appreciation in their portfolios. Many choose a compromised lifestyle and curb their expenses in retirement. What should they do instead? There are only two ways to create a large corpus: saving a large part of the income, or investing the saving in growth assets. In a country of savers, the first has been the natural choice. However, the second deserves attention. An investor who is saving for retirement is trying to replace the human asset with an investment asset that will generate the require...
Read more

HSBC MIP Savings Fund dividend

Invest HSBC MIP Savings Fund Online   HSBC Mutual Fund   has announced dividend under the following schemes: Scheme Dividend ( R /unit) HSBC Income Investment-DQ 0.1733436 HSBC Flexi Debt Direct-DQ 0.18056625 HSBC Flexi Debt-DQ 0.18056625 HSBC MIP Regular-DQ 0.18056625 HSBC MIP Savings-DQ 0.2022342 HSBC MIP Savings Direct-DQ 0.2022342                     The record date has been fixed as June 27, 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 Saving 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) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan I...
Read more

Systematic withdrawal plan

  Start Systematic withdrawal plan Online Although an SWP gives you regular income and saves on taxes in the long term, you cannot open an SWP on a scheme where you have an ongoing SIP   iStockPhoto If you are planning to take a sabbatical from work or are retiring soon, you may be looking at different investment options that give a regular income. Usually, a lump sum is invested to get regular fixed amounts later. Popular products include post office monthly income scheme, Senior Citizens' Savings Scheme and monthly income plans (MIPs). A lesser known option is the systematic withdrawal plan (SWP) in mutual funds. Recently, some funds have even removed the exit load on SWPs if you were to withdraw up to 15-20% in the first year, to encourage people who want to start investing in this instrument. Here is a look at what an SWP is. WHAT IS SWP? Many of us would be familiar with a systematic investment plan (SIP ), where a corpus ...
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