Kotak 50

Among large-cap schemes which have concentrated exposure to large-sized companies, Kotak 50 should serve as a good addition to retail investors’ portfolio. The scheme, which invests close to 80% of its portfolio in top 100 stocks by market capitalisation, has delivered encouraging performance in the past five years.

In the past three-year and five-year periods, the scheme has given 18% and 15.4% returns, respectively, while its benchmark CNX Nifty 50 has given 12% and 11.4%, in the same periods, respectively. There are two factors that the scheme’s fund manager Harish Krishnan kept in mind when he chose companies during downturn -between 2011 and 2014.

One, focussing on companies which invested in their assets. This means companies which expanded their capacities through various methods. Two, selecting the companies which were able to cut costs during the downturn. The marriage of these two factors should result in margin expansion and better return ratios. Given these factors, the scheme’s fund manager invested in companies from sectors such as auto, auto ancillary, cement, capital goods and engineering, and private sector financing.

In the past six months, the scheme’s fund manager has invested in a few companies which fall under consumer discretionary theme and which are expected to bounce back after negative impact of demonetisation fades away. A few prominent companies that follow this theme are Arvind, Apollo Hospitals Enterprise and Sun TV Network.

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Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2018 Tax Saver Mutual Funds Online

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For further information contact SaveTaxGetRich on 94 8300 8300

Systematic Investment Plan (SIP)

Systematic Investment Plan (SIP) is a kind of investment scheme offered by mutual fund companies. Using SIP one can invest small amount periodically (weekly, monthly, quarterly) into a selected mutual fund. For retail investors, SIP offers a well disciplined and passive approach to investing, to create wealth in long term (using the power of compounding). Since, the amount is invested on regular intervals (usually on monthly basis), it also reduces the impact of market volatility.

Benefits of SIP as compared to Lump sumps investment

  • You don’t need to speculate or focus on timing the market (which isn’t the right way for generating returns over long term)
  • Amount is invested on monthly basis, so there is little to no impact of market volatility (unit cost averaging)
  • Passive and automated (monthly installments can be deducted automatically) approach makes you more committed to guranteed saving/investment
  • It’s very flexible – you can create/update/cancel SIP anytime. Most of the funds starts as low as Rs. 1000 per month

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

For further information contact SaveTaxGetRich on 94 8300 8300

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MF NAV

Learn how net asset value (NAV) works and find out whether a low NAV is a good thing or not

Mutual fund investors inevitably come across the term ‘NAV’. No matter how hard they try to stay away from investment jargon, this one term refuses to leave them. Every time they buy or sell mutual fund units, they come across this beast called NAV. Little wonder, there are many misconceptions regarding this term. Here we tell you all you need to know about NAV as a mutual fund investor.

The NAV formula
NAV, or net asset value, is the sum total of the market value of all the shares held in a portfolio, including cash, less liabilities, divided by the total number of units outstanding. Thus, the NAV of a mutual fund unit is nothing but the ‘book value’ of a unit.

Is a low NAV good?
Many investors feel that a fund with a low NAV is ‘cheaper’ than the one with a higher NAV. At the time of a new fund offer, many distributors push the new fund by saying that its NAV is low, thus indicating that it’s available at a bargain. The truth is that NAV itself is immaterial for an investor.

The idea that a low-NAV fund is cheaper stems from the fact that many investors compare NAV with the stock price. A low stock price (when seen in terms of valuation) means a stock available at a bargain. But this is not true for a fund’s NAV. NAV doesn’t tell you whether a fund is cheap or expensive. It just reflects the current value of one unit of the portfolio as it is.

An example
The following example will make it clear that returns are independent of NAV. Say, you have Rs 10,000 to invest. You have two options. You can invest in either of the two funds, Fund X and Fund Y, whose portfolios are the same but whose NAVs are different. Fund X has an NAV of Rs 10 and Fund Y has an NAV of Rs 50. You will get 1,000 units of Fund X or 200 units of Fund Y for Rs 10,000. After one year, both funds will have grown equally as their portfolios are the same.

Let’s assume that the funds grew by 25 per cent. Then the NAVs after one year will be Rs 12.50 for Fund X and Rs 62.50 for Fund Y. The value of your investment will be 1,000*12.50 = Rs 12,500 for Fund X and 200*62.5 = Rs 12,500 for Fund Y. Thus, your returns will be the same, irrespective of the NAV.

When we buy a mutual fund at its NAV, we are buying it at its book value. And since we are buying it at its book value, we are paying the right price for its assets, whether it is Rs 10 or Rs 100. What you want to buy in a scheme is its performance, not its NAV. And the simplest way to do this is to compare returns over similar periods.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to Invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund

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Invest Best Tax Saver Mutual Funds Online

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For further information contact SaveTaxGetRich on 94 8300 8300

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Liquid Funds deliver 2% extra post Tax Returns than Savings Bank Accounts

ICRA’s recent study finds that investors could get additional returns of up to 1.67% post tax in liquid funds over savings bank accounts. In fact, the difference between the returns of savings account and liquid funds could go up to 3% pre tax.

As banks cut deposit rates due to declining interest rate environment and surplus liquidity after demonetisation, liquid funds fetched higher returns compared to savings accounts, says the report.

Other aspects of liquid funds that distributors can play on are instant redemption facility and no exit loads, says the report.

In terms of risk, the report says that liquid funds are relatively less volatile than other mutual funds due to high credit quality and short term nature of its underlying instruments.

The rating agency also finds that individual investors have been increasingly investing in liquid funds. The share of individual investors’ investments in liquid mutual funds has increased by 34% in just two years. In the meantime, investments in savings bank accounts grew by 20%.

As individuals currently hold only a small portion of their assets in liquid funds, distributors should encourage their clients to invest in liquid funds. Most retail investors invest in mutual fund though equity funds, says the report. “With the arbitrage between liquid mutual funds and savings rate and that between liquid mutual funds and bulk deposit rates likely to continue, the pace of incremental inflows into liquid mutual funds is expected to increase over the near to medium term.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to Invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund

3. Birla Sun Life Tax Relief 96

4. Sundaram Diversified Equity Fund

5. ICICI Prudential Long Term Equity Fund

6. Invesco India Tax Plan

7. Franklin India TaxShield

8. Reliance Tax Saver (ELSS) Fund

9. BNP Paribas Long Term Equity Fund

10. Axis Tax Saver Fund

Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

For further information contact SaveTaxGetRich on 94 8300 8300

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HDFC TAX SAVER

HDFC TAX SAVER fund’s return profile has improved since last year after a stretch of patchy performance pulled down its otherwise healthy long-term track record. The fund manager pre fers to take large positions in his top bets, despite having a heavily diversified portfolio.

Typical to the fund house’s investing style, this HDFC TAX SAVER fund continues to back its high-conviction stock and sectoral bets–only recently has this yielded some result. The fund’s portfolio is tilted towards large-caps as compared to many of its peers.

HDFC TAX SAVER fund risk-reward profile is below average and exhibits higher volatility in returns.Investors may want to wait for sustained improvement in the fund’s performance.

There are other funds with a consistent and proven track record.

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Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

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NAV of Mutual Fund



First time investors into mutual funds are often confused with the term Net Asset Value (NAV) wondering whether they should be buying a fund with higher or lower NAV.

Is it better to buy a fund which has a lower NAV?

Investing in mutual funds is different from stocks. When you buy mutual fund units the NAV , is calculated on the basis of the current market price all the as sets that the mutual fund owns. It represents the fund’s intrinsic worth. Financial planners suggest it is irrelevant how high or low the NAV is. If the amount of your investment re mains unchanged, and two comparable funds have identical portfolios, a low NAV would result in the investor being allocated a higher number of units held and consequently a high NAV would mean lower number of units allot ted. In both the case, the value of your investment, would be identical. Going ahead, the stocks present in a portfolio and their subsequent movement deter mine returns from a fund, making the value of the NAV immaterial.

Similarly when one re deems or sells those units, the return will be the same as that of another scheme, which has performed similarly .

Is it better to buy a new fund offer (NFO) priced at Rs10, and schemes with NAV below Rs10?

In case of a new fund offer (NFO), understand if the prod uct on offer matches your risk profile, what the mandate of the scheme is, the pedigree of the fund house, its past performance and the experience of the fund manager.Similarly it is not wise to invest in an existing mutual fund scheme just because it is available below Rs10.Evaluate if it fits into your portfolio and understand what has gone wrong for the scheme to be below Rs 10 before investing.

NAVs of direct plans are higher than that of regular plans. What should you do?

NAVs of direct plans will always be higher than that of regular plans as these schemes do not pay a commission or fee to distributors, and consequently have a lower expense ratio. Understand if direct plans are meant for you and if you can handle your investments without the support of distributors or advisors. Buying into a direct plan means you have to choose your fund yourself, understand if it fits into your portfolio, do the entire paperwork related to the transaction and monitor it on your own on a regular basis.

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

For further information contact SaveTaxGetRich on 94 8300 8300

Do not Invest in Mutual Fund NFOs

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Suddenly, some mutual fund advisors are in love with New Fund Offers or NFOs. A mutual fund house comes up with a New Fund Offer to launch a new scheme. Most mutual fund advisors do not encourage investing in new schemes because they do not have a performance record.

Advisors argue that it is better to invest in a scheme with a consistent performance record in the same category rather than betting on an unknown entity. Advisors make an exception only when an NFO offers something ‘unique’ that is not available in the market.

So, what has changed? Why are some advisors smitten by NFOs these days? Are advisors recommending NFOs because they are offering something ‘unique’ or they have something that is not available in the market? The answer is no

Some advisors are pushing plain vanilla equity schemes for reasons better known to them. Sometimes, they tell their clients that the scheme would do well because it is from a great mutual fund house. They also recommend some schemes because they are managed by star fund managers. Mostly, they claim (wrongly) that the NFO theme is going to be flavour of the market in the coming days. It really doesn’t matter whether the NFO is a largecap offering or a tax savings scheme.

My guess is that people are coming with certain theories because the market is at an all-time high, Trendy Investments. Otherwise, there is no reason to recommend new schemes when you already have established schemes available in the same category

There are many financial advisors who frown upon the new-found love for NFOs among their counterparts. They say that some of these advisors were pushing closed-ended NFOs to their clients with the promise of higher returns, whereas the real reason could be extra commissions for them.

How can you push an NFO when there are established players in the same category. We do not recommend IPOs and NFOs

Critics allege that mutual funds are offering extra incentives to their sales force to push their NFOs. However, they are quick to add that they have no proof to back up their claims, except for the fact that NFOs may offer slightly higher commission to distributors. Some others believe that advisors are trying to cash in on the bullish IPO market, where novices throng for listing gains. They say some investors still subscribe to the bogus theory that investing in a scheme with a Net Asset Value of Rs 10 is better.

To sum up, you should avoid NFOs unless they offer something unique. It is always better to invest in a scheme with a proven track record. Sure, the past performance may not be repeated. But the consistent performance of a scheme during different market cycles give you a lot of comfort.

Here are a few quick pointers that would help you to corner your mutual fund advisors. Whenever your advisor tries to sell you an NFO on the pretext of some new theory, you may try these counterarguments.

Claim: The fund house is great
Counter claim: There are many great fund houses in the market.

Claim: The fund manager is great
Counter claim: There are many great fund managers in the market.

Claim: ELSS scheme is great for tax planning.
Counter claim: I know that, but there are many established ELSSs available in the market.

Claim: Largecap/midcap/smallcap/multicap schemes are going to do well in the coming days.
Counter claim: Okay, but is it necessary to invest in a new largecap/midcap/smallcap/multicap scheme when there are many established schemes in the respective category available in the market.

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich
For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
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Do not Invest a lumpsum in ELSS Funds

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Mutual fund advisors are getting ready for ‘difficult December.’ Planners dub December a difficult month because they get countless requests for last-minute tax planning during the month. This year they have a unique problem: many new mutual fund investors are hellbent on investing a lumpsum in Equity Linked Savings Scheme (ELSS) to save taxes this year. Advisors say this is risky as the market is currently hovering around its all-time high, but the new investors are not in a mood to listen.

Most investors who come to invest in ELSSs at this point stress on a lumpsum investment because they have to show the investment proof by January. This is not a good strategy because you catch the market at a particular point. She adds that investing a lumpsum in any equity scheme is risky. ELSS is nothing but an equity scheme. The risk in investing a lumpsum at this point remains high

And mutual fund advisors are extra cautious now because the markets are in an uncertain terrain. With the broad indices trading at high levels and at unreasonable valuations, market pundits believe that there might be a correction in the short term. "The outlook of the markets is not bad, but a lumpsum at such high levels in not feasible. That is why we ask the investors to stagger their investment in ELSS

ELSSs are equity schemes that invest most of their corpus in stocks. That is why experts ask investors to stagger their investments in these schemes and hold on to their investments for a long period to weather the risk and volatility in the stock market. Most advisors recommend staggering the investments over the whole financial year as it will help investors to average their purchase cost. It also helps them to invest in a disciplined manner irrespective of the market conditions

Some mutual fund advisors believe that investors can go for a lumpsum investment also, provided that they have a stomach to bear volatility. If you are not one of those investors who just wait for the lock-in to get over or who checks the returns on a daily basis, you can go for a lumpsum also. ELSSs come with a mandatory lock-in period of three years, investors can anyway not take any bad decisions. But make sure you have an investment horizon of more than seven years and a good risk-appetite

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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Goal Based SIP is Ideal to build amount for Children Education

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Traditional career options are taking a backseat and with the advancement in the education field, costs are rising fast. Your kids may have dreams different than what you have for them and the costs may also differ. While planning for your kids’ future, don’t assume that your kids will opt for a career that you want them to.

Today paying for higher education also includes cost of boarding & lodging, travelling, buying gadgets etc., in addition to tuition fee. So make provisions for these costs as well.

While preparing a financial plan for your kids’ higher education, assess the current cost that you think you would have spent had they opted for a career today (don’t be defensive as you don’t know what they might choose) and estimate future costs for it (tentative inflation 10%). Don’t randomly assume a future cost and plan for it.

If your kids are young and there’s 10-15 years or more for their higher education to start, invest in diversified equity funds.If you have 5-10 years, go for a balanced funds. And if you have less than five years, park your funds in debt-based assets.

The best way to save for your kids’ higher education or marriage is to do goal-based SIPs. Also increase your SIP value every year as you earn more.

Higher education years are the real make or break phase for your children. Take the right step to make sure their dreams are not just dreams.

We should be careful about insurance products with the name child plan. Nomenclature is the way manufacturers sell products.Make your own plan for your child.

Best ELSS Funds to Invest Online

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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ELSS Funds 2018

Invest in ELSS Funds Online and Save Tax

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Top Performing Tax Saving ELSS Funds. Save Tax Get Rich

Top 10 Tax Saving Mutual Funds of 2018

Best 10 ELSS Mutual Funds to Invest in India of 2018

1. Tata India Tax Savings Fund

2. Mirae Asset Tax Saver Fund

3. DSP BlackRock Tax Saver Fund

4. Sundaram Diversified Equity Fund

5. Birla Sun Life Tax Relief 96

6. ICICI Prudential Long Term Equity Fund

7. Invesco India Tax Plan

8. Reliance Tax Saver (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund

Invest in Best Performing Tax Saver Mutual Funds of 2018

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300