Skip to main content

Start Your Planning from the Financial Year beginning

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Use financial numbers collated for your taxes to get together a financial plan & investment policy

 

The best time to start financial planning is always 'Now'. However, the beginning of the financial year comes a close second, say financial pundits. No, it's not an auspicious date. You can start on a clean slate at the beginning of the new financial year, as it is an ideal time to finalise your plans for saving, investing, spending and so on. There is no better time than April to start the planning process as you have just gone through the exercise of collating your finances for your taxes. Use those numbers to your advantage and get together a financial plan and an investment policy statement. These two documents should become the foundation of your financial life.

Starting

According to experts, most people need to begin at the beginning. That is: starting the process to get their financial records in order so that they know about their assets and liabilities. This process will help one figure out how much money s/he has to save, invest, and spend. It may also tell you that you have to first focus on getting rid of some liabilities before dreaming about great investments. Around this time, salaried employees receive annual bonuses and the tendency is to splurge on vacations or consumer goods. Instead, they should try to repay their liabilities. If not the entire debt, they should look at repaying at least a part of it. Any credit card outstanding, particularly, should be cleared as soon as possible, as it is the most expensive form of debt.

 

Interest rates on credit card outstanding are in the region of 39-44% per annum. Repaying other expensive loans like personal loans, too, should be the priority. Next, you should create a contingency fund to tackle unforeseen expenses. These apart, additional limp sum inflows should be used for plugging the gaps in your financial plan.

Tax First

You may remember the cliche about taxes — you can't escape death and tax. That is why it is always a good idea to start with tax planning. Most individuals postpone this task to the end of the financial year. However, you should remember that tax-saving is not a goal in itself, but is an important constituent of your overall, long-term financial planning strategy. Therefore, it makes sense to get started with this right at the beginning of the year.


You could look at systematically planning for your section 80C investments, health insurance etc, starting from April. This approach will help prevent the last-minute pressure towards March-end.


Also, if you earn income from sources like rent or interest on bank deposits, there is no better time than April to plan for the advance tax to be paid.


April is a good time to take stock of your advance tax liabilities and plan towards discharging it during the year. For instance, say, you are a salaried individual in the highest tax bracket and also earn income from rent or interest from fixed deposits, which amounts to over Rs 10,000. Now, it is possible that your bank is deducting tax at the rate of say 10% on your interest income, whereas the rate applicable is 30%. So, there will be a differential of 20%, which will constitute your advance tax liability. This amount has to be paid to the I-T department in three instalments in the months of September, December and March. If, for some reason, you skip an instalment, you will be charged an interest of 1% per month when you pay the next tranche three months later. Therefore, if you start planning in April, you will be able to manage your cash flows better and avoid this penal interest.

Another thing you have to remember is that saving or investing regularly to meet your tax-planning goals also yield you better returns from these avenues.


Investing early in the year in other tax-savings investment plans like PPF, Ulips, pension plans and so on, which have long lock-in requirements, will maximise returns for the investing year; at the same time, also allowing exit in the beginning, at maturity. Investing lump sum in PPF, which offers fixed returns, yields the best returns.


As always with investing, the earlier you start the better, as you let your money compound longer, thus earning more. If you have a balance which can be saved via an investment, the earlier you do it the more your money will work for you.


You can apply the same principle when it comes to your investments. It is always better to opt for the systematic investment plan (SIP) route to invest in equity mutual funds, including equity-linked savings scheme (ELSS) to save taxes under section 80 C.


My primary recommendation would be to get started on an equity ELSS SIP and systematic investments in RGESS

(Rajiv Gandhi equity savings scheme)

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