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

JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund

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 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund    The new fund offer opens for subscription on 16 th June and closes on 30 th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-aw...
Read more

Nifty F&O

  1. What is a straddle? A strategy using Nifty options usually before a major event or when one is uncertain of market direction. Comprises purchase of a Nifty call and put option of the same strike price. Usually strikes are purchased closer to the level of the underlying index. 2. What is better ­ buying or selling a straddle? It depends.Implied volatili ty of options, or near-term expectations of price swings in an un derlier like Nifty , usually peaks before an event and falls when the outcome plays out ­ like Infy re sults in past years. However, once the event plays out, a sharp rise or fall in Nifty could result in price of the straddle rising ­ benefiting buy ers. But, normally , those who sell or write options charge hefty premiums from buyers in the hope that fall in volatility would ensure the options end out-of-the-money, hurting buyers. 3. So, do straddle sellers end up winning most of the time? Yes. That's invariably the case when market volatility is trending on the...
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

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

UTI Equity Fund Invest Online

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   UTI Equity Fund   Invest Online UTI Equity is a large cap-oriented fund with assets under management worth Rs. 2,269 crore (as on June 30, 2013). The fund was originally launched in May 1992 as UTI Mastergain and is benchmarked against S&P BSE 100. A couple of years back the name of the fund was changed to UTI Equity Fund and many of the smaller funds of UTI were merged into this fund. Performance The fund has outperformed its benchmark as well as the equity diversified category average in the last one-, three- and five-year periods. It has repeated the same in 2013 (as on May 31). Since its inception the fund has delivered an impressive 26 per cent compounded annual growth rate which is superior to its benchmark performance in the same period. Y...
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