Skip to main content

Financial Plan

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Though the National Savings Fund has reduced rates on PPF by 10 basis points to 8.7 per cent this year, if he deposits the entire ₹ 1 lakh before April 5, he can get an interest benefit for the entire year.

Why April 5? It's because the interest is calculated on the lowest balance of an account from the fifth day to the end of the month. So, to get maximum benefit, deposit the entire amount or as much as possible before April 5.

Rudra is a good example from the perspective of having an investment plan in place. For many others, the beginning of the financial year is chaotic.

On the one hand, you are struggling to close the previous financial year's balance sheet, including preparing to file returns. On the other, you have to decide how to manage expenses/ invest/ save in the coming year.

No wonder, financial planners and chartered accountants are kept busy because clients overload them with documentation and seek advice. But a few simple steps will help a good start.

Prepare a monthly budget: This is the tough one. The process for most is simple: Calculate the monthly take home salary, then deduct loans and other expenses, and, there is a surplus. Unfortunately, it is not so simple or true.

There are at least three to four months in a year that will be financially draining. For instance, in the May June period, there will be summer holidays.

For those with growing children in schools and colleges, there are expenses, such as fees, fresh set of books, tuitions, etc. Similarly, between October and December, there will be the festival season. So, there will be expenses on clothes, goodies for family members and, possibly even travel.

All these expenses have to be accounted for from the start of the year. So, if you get a surplus or bonus at the start of the year, don't splurge because there will be expenses during the year when you will have to dig into your reserves.

Tax- planning: While the human resource ( HR) department in all companies ask employees to give their investment plan for the year, remember you will need to follow the declaration made. Don't make commitments you cannot fulfil, otherwise, there will be a scramble at the end to ensure the salary does not get cut.

First, before making declaration to the HR department, you should be clear if you can get benefits under Section 80C. Many employees will find the entire limit is exhausted through the EPF commitment. Consequently, they need not make any other investment.

But there are certain nitty- gritties that will have to be tackled.

For instance, if you are claiming house rent allowance ( HRA), receipts have to be produced at the end of the year. In addition, if the monthly rent is more than ₹ 15,000, a copy of the agreement with your and the landlord's permanent account number ( PAN) has to be given to claim HRA exemption. In case the landlord doesn't own a PAN card, he must sign the self- declaration saying he doesn't have one and a copy must be given to the employer to get the HRA exemption.

Also, there has to be a significant amount of planning in case you have in mind a systematic investment plan in equity- linked savings schemes or the Rajiv Gandhi Equity Savings Scheme (for a first- time investor with a taxable income of below ₹ 12 lakh) to claim tax benefits. While there isn't much clarity about the latter – whether the investment of ₹ 50,000 can be spread over three years or not, if interested in the scheme, let the chartered accountant or financial advisor know.

This also applies for PPF. As mentioned before, if you are planning to put money in this instrument, the best time is during the start of the year.

Planning big expenses or loans: One good thing about 2013- 14 will be that the interest rate of loans is unlikely to go up further. In fact, there is a likelihood that these might come down marginally. Though the Reserve Bank of India has presented a grim picture in terms of further rate cuts, one can safely assume these will not go up either. In other words, any further pressure on the equated monthly instalment ( EMI) is not expected.

But the spoil- sport is going to be an absence of or low salary hikes. If possible, it could be a good time to reduce your loan liability by partial pre- payment.

Lower loan commitment will help you save, especially in times when inflation is likely to hover around six seven per cent. Also, if you wish to make a big purchase, such as a house or car, keep aside part of the money you get as bonus or bulk cash from other sources like stock or mutual fund dividends because there will be a need for a cash down payment.

For a new car, you will need to pay at least 10- 20 per cent as down payment. For a house, you will need to pay 20 per cent of the house value, plus registration and stamp duty. In other words, for a ₹ 50- lakh house, you will need to have at least ₹ 15 lakh in the bank.

Manu Selot, a Pune- based software engineer, is planning to purchase a two bedroom- hall- kitchen ( 2 BHK) costing ₹ 60- 70 lakh this year. He is already working on the finances. " I am planning to take 50 per cent of the amount as loan. I plan to raise the rest of the amount from family and my other investments," he says, adding that the earlier in the financial year he buys, the better, because the entire interest payout is tax- exempt for a second property.

Don't go overboard on investments: Just like you shouldn't allow money to lie idle in banks, making investments very aggressively, too, can hurt. " If you have any surplus in hand, shift the money into short- term debt funds till you decide how to use it. This way, it will earn better returns than bank savings deposit rates," says Jayant Pai, head ( marketing), Parag Parikh Financial Services. According to him, many people rush to invest in stocks or mutual funds when they have a surplus.

Instead, they should first have enough in an emergency kitty and then, invest in parts or a lump sum, depending on their time horizon.

Insurance premiums: Most have insurance policies – life, medical, car or house and there is a tendency to forget paying the premiums on time. Though insurance agents do call and remind people of renewals, many wait for the last moment to do so. The insurance industry numbers confirm this – there was a drop of 6.7 per cent in renewal premiums in the October December period, compared to the corresponding period in 2011. Given that the policies are on different dates, ensure adequate amounts are available in the bank account from time to time.

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 PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest 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 MutualFundsInvest 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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in 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]
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