Prajna Capital - An Investment Guide

Here are some tips to help you put together a portfolio for wealth creation With most asset products failing to offer the expected returns, investors have begun to wonder what the right investment approach to building a portfolio is. The choice of product depends on the risk appetite of the investor and tenure of investment. It takes a mix of various products in the current environment to build a good portfolio. The task is probably easier for a fresher. It is quite challenging for an investor with a short-term outlook. For instance, if an investor is bracing himself for a corpus creation by 2010, it could leave him with little choice as he has an uncertain one year ahead for his wealth creation and would be poorer by a good 25-30 percent (depending on his period of accumulation) in his wealth. With the current year likely to unfold some more pain before bottoming out, the current environment also offers some lessons for building wealth in the coming years. Investors who have b...

AMCs are launching ELSS with the hope that people will invest in such funds at least for saving on tax In fact, despite volatile and uncertain equity markets, asset management companies have begun to launch equity linked saving schemes (ELSS) with the hope that investors would invest in such funds at least for saving tax. Recently, Bharti AXA, DBS Chola, JP Morgan and Tata AMC have launched their ELSS funds. ELSS funds are like other equity mutual funds with tax benefit. Investment in ELSS fund qualifies for deduction under 80C only if the money is invested for a minimum of three years. But in such fund investors need to stomach higher risk. Interestingly, some of these fund houses already have existing ELSS funds in their current portfolio but have come out with new fund offers (NFOs) in the same category. For instance, Tata Mutual Fund already has a tax gain fund called Tata Tax Advantage Fund but has come out with a new ELSS fund called Tata Infrastructure Tax Saving. Same is ...