Birla Sun Life Cash Manager

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We look for high performance in everything we buy. Why not in letting our savings grow? Birla Sun Life Cash Manager (An Open ended Income Scheme) allows you to generate income by investing your savings in debt and money market instruments along with keeping your money easily accessible like savings account.

Its performance since inception is proof of it.

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(Source: Morningstar)
Past performance may or may not be sustained in future
The comparison of Birla Sun Life Cash Manager Vs Savings Bank has been given for the purpose of the general information only. Loads and Taxes are not taken into consideration. Investment in Birla Sun Life Cash Manager carry higher risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor.
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Mutual Fund investments are subject to market risks,
read all scheme related documents carefully.

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HDFC Regular Savings Fund

HDFC Regular Savings Fund logo HDFC Mutual Fund logo
HDFC Regular Savings Fund is suitable for investors who are seeking *

  • regular income over short to medium term
  • investment in debt and money market instruments with a short to medium term maturity (average maturity profile of 1-3 years)
Riskometer
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* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

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MF SWP Tax

Mutual Fund Withdrawals Online

Mutual fund withdrawals are subject to tax depending on the category of the funds you own. Debt funds and equity funds are taxed differently. Systematic Withdrawal Plans (SWP) redemption is as per first in first out (FIFO) method wherein units first bought are assumed to be redeemed first. Hence your costs for the purpose of taxation will be considered as per FIFO method.

If you redeem/withdraw your investments in equity mutual funds after 12 months, your investments would qualify for long-term capital gains tax which is nil at the moment. If you sell your equity mutual fund investments before 12 months, you will have to pay a short-term capital gains tax at a flat rate of 15 per cent.

Debt mutual funds qualify for long-term capital gains tax only if investments are held for three years. The long-term capital gains tax on debt funds is 20 per cent with the inflation indexation benefit on your original investments. If debt mutual fund investments are sold before three years, the short-term gains are taxed as per your applicable Income Tax slab.

Your SWPs will also be taxed as per the above rules. Based on your requirement and tax slab you can plan your SWP accordingly.

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Mutual Fund LTCG benefit

Invest Mutual Fund Online and get long-term capital gains tax benefit


For the purpose of taxation, a switch is considered as a redemption from one fund and a fresh purchase in another. If you invest in an equity fund and switch within one year, the gains will attract short-term capital gains tax at 15 per cent. If you switch out of a liquid fund before three years, the gains will attract short-term capital gains tax.

The gains will be added to your income and taxed at the income tax slab applicable to you. You will have to wait for your investments to qualify for long-term capital gains tax if you want to avoid paying taxes while switching to another fund. You should also consider exit load before taking a final call.

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DSP BlackRock Liquidity Fund

DSP BlackRock Liquidity Fund Product Labelling

This open ended liquid scheme is suitable for investors who are seeking*

  • Income over a short-term investment horizon
  • Investment in money market and debt securities, with maturity not exceeding 91 days.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

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FD Interest Rates Falling, Invest in Debt MFs

Invest Debt MFs Online

Investors may need to tweak their debt investment strategy as falling interest rates has taken the sheen off traditional fixed deposits. Financial advisors say the 15-25% decline in interest income from fixed deposits requires investors to spread investments to non-convertible debentures (NCDs) and debt mutual fund schemes to boost returns.

Those who rely on interest income from fixed deposits to meet their monthly expenses have been hit the most because of easing rates.

For instance, in 2013, HDFC paid 9.2% for a quarterly income on its fixed deposit, and Mahindra Finance paid 10.25%. The rates for the same tenure are now down to 7.65% and 8.05%, a drop of more than 200 basis points (2%). Most companies accepting fixed deposits have lowered their interest rates by anywhere between 150 and 225 basis points over the last three years.

The cut in interest rates by banks and companies is in line with the Reserve Bank of India’s (RBI) move to ease monetary policy encouraged by lower inflationary pressures. When inflation falls, RBI cuts policy rates to revive economic activity .

In the last couple of years, deposit rates of both banks and company deposits moved down. But, company deposits continue to pay 100-200 basis points more than bank deposits, which makes them lucrative despite the dip in rates. However, those looking to maintain their interest income at the same level as 2013 could look at some alternatives.

For slightly savvy investors, financial advisors recommend non-con vertible debentures listed on the stock exchange. There is a lot of paper available which can give you yield of 8.5-9.5%. He recommends investors to buy ` AAA’ or `AA’ rated NCDs such as SREI Infra, Edelweiss, Shriram Transport and DHFL.Though the volumes traded for NCDs on the exchanges are thin, investors could accumulate them when there are sellers on the exchange.

Investors could also shift a part of their portfolio to debt mutual funds.

Debt mutual funds hold a basket of government securities and corporate bonds. Investors can look at medium and short-term debt funds as they will provide better post-tax returns. Debt schemes that invest in long-term government securities benefit when RBI eases rates. Investors especially in the 20% and 30% tax bracket benefit if they hold these funds for more than three years, as they will pay only long-term capital gains tax.

How to Invest Mutual Fund in Child Name

Mutual Fund Investment to Benefit a Minor Child




You can make investments in MFs in your child’s name to meet their long-term goals such as higher education and wedding

1. Can I make a mutual fund investment in the name of a minor child?

Yes, you can make an investment in any scheme of any mutual fund in the name of a minor child. The minor shall be the first and the sole holder in a folio. No joint holder will be al lowed in a folio held by a minor. Guardian in the folio should either be a parent (i.e. father or mother) or a court ap pointed legal guardian.

Minor investments are identified by the date of birth of the investor, so when you make an in vestment you have to provide the child’s date of birth and age. You will have to give a copy of age proof namely a copy of the document viz. birth certificate, passport copy , etc. evidencing date of birth of the minor and relation ship of the guardian (natural or legal guardian) with the minor. This needs to be provided while making the first investment or while opening a folio.

2. Can I do an SIP, Systematic Transfer Plan (STP) in the name of a minor?

A mutual fund will register instructions by an investor like SIP / STP in the folio held by a minor.

This instruction will be valid only till the date of the minor attaining majority, even though the instructions may be for a period beyond that date.

3. What happens when the minor child becomes a major or attains 18 years of age?

When a minor becomes a major, all transactions standing instruction, systematic transactions etc. will be suspended. The folio will be frozen for operation by the guardian from the date of minor attaining majority . Prior to the minor attaining majority, the AMC mutual fund will send a notice to unit holder at their registered correspondence address advising the minor to submit, on attaining majority, an application form along with prescribed documents to change the status of the folio from `minor’ to `major’. Along with this, KYC (know your customer) acknowledgment letter of unit holder becoming major should also be provided.

4. Can I change the guardian once the investment has been made?

In case of change in the guardian of a minor, the new guardian must be a natural guardian (i.e. father or mother) or a court-appointed legal guardian and should submit the requisite documents namely –

(a) No objection certificate (NoC), or consent letter, from existing guardian or court order for new guardian, in case the existing guardian is alive.

(b) KYC acknowledgment letter of the new guardian should also be provided.

Invest Mutual Fund Online Now


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Invest DSP BlackRock Balanced Fund

Invest DSP BlackRock Balanced Fund Online

Another fund with a 17 year track record, DSP BlackRock Balanced Fund has delivered an impressive 13.7 per cent return per annum over the past 10 years.

Core Philosophy
The DSPBR Balanced Fund is managed with the core philosophy of long-term wealth creation and income distribution. The crucial aspect of this philosophy is to achieve these goals in a consistent manner while assuming risks to prudent and controllable levels. The Fund is mandated to invest in equities from 65 per cent to maximum of 75 per cent and the rest in debt. Where equity proportion is managed in a diversified style to generate returns over the long-term, the debt part helps in cushioning the volatility in equity market. While they don’t believe in timing the markets and stay invested in equity of good quality and growing companies, this proportion is balanced frequently to benefit from the market volatility. On the debt side, the fund endeavors to deliver stable fixed income returns through coupons and capital appreciation. The fund invests in a mix of strong corporate credits and Government securities.

Strategy
On the equity side of the fund, as already mentioned above, they don’t believe in timing the markets and stay invested in equity of good quality and growing companies. Hence equity portion of DSPBR Balanced Fund would stay invested on the higher side i.e. around 72-74 per cent most of the time. Secondly, to help achieve the goal of long-term wealth creation, the equity portion would have a large-cap to midcap exposure in ratio of around 60 to 35.

Though the fund will be managed with a bottom-up approach, pre-dominant style would be to buy and hold companies with compounding growth in revenues and in earnings run by good, competent managements. Limited part of the portfolio would be exposed to value or turnaround names depending on conviction levels about them. At the same time, the endeavor is to avoid apparent value picks or companies making severe capital allocation mistakes. Both the aspects means the fund can deviate from the broad market indices by a considerable degree. On the Debt side, the fund will maintain a medium term duration strategy. The fund will look to invest in the liquid segments of the curve.

Risk Management
For the equity portfolio, risks can be managed at two levels, at overall portfolio level and at individual stock level. At the portfolio level, the risk is managed by better diversification across sectors and stocks. DSPBR Balanced Fund intends to limit top 5/10 stock weight to the extent of roughly 20/30 per cent respectively. Secondly, to benefit from any particular sector or theme also, the Fund desires to create a basket of companies to spread the bets. At individual company level, they believe if one has invested in a good quality company with competent management and with long-term view, risks get reduced substantially. As far as fixed income is concerned, the mix of strong credit focus and government securities selection provides adequate liquidity while maintaining attractive yields.

For further information contact SaveTaxGetRich on 94 8300 8300

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You can write to us at

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Call us on 94 8300 8300