Short Term Debt Funds have Tax Advantages

Short term debt funds carry a great many tax advantages that their alternatives do not. Read on to know more

Income from debt mutual funds including ultra short term funds, if held for less than 3 years, is classified as ‘short term capital gains.’

This is taxed at your slab rate just like income from savings bank accounts and fixed deposits (which is classified as ‘other income’).

However unlike savings account and FD income, this income can be set off against other short term losses including those of previous years up to as many as 8 years.

Less Tax and less hassle

If on the other hand, you hold your funds for more than three years, the gains in them are taxed as long term capital gains at a rate of 20% (lower than the highest 30% tax slab). You also get the benefit of indexation which dramatically cuts the effective tax rate on them.

Let’s understand this looking at the computation of tax on an equal amount of income from each savings instrument (though of course debt funds yield much higher returns).

Less tax less hassle

As the table shows, you pay as much as 27,000 rupees of tax on savings bank interest of 1 lakh and as much as 30,000 on FD income of 1 lakh. In comparison you pay just Rs4,153 for debt fund income above 1 lakh when it is held for more than 3 years. Also, in comparison to FDs, you do not have Tax Deducted at Source (TDS) cut from your gains from debt funds.

You may be puzzled by the fact that in this illustration, short term funds seem to carry a higher tax than savings bank accounts if held for less than 3 years.

This is due to the Rs10,000 exemption on savings bank interest. However if you make more money in savings interest than that, the tax rate is the same. Nor can savings bank interest be set off against short term losses in the way that short term funds’ gains can.

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

Reliance Tax Saver (ELSS) Fund

Best SIP Funds to Invest Online

Reliance Tax Saver (ELSS) Fund scheme aims to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.

An aggressive performer in the ELSS category, this fund has alternated between chart-busting returns and a moderate show. After a huge outperformance of the category, which lifted its ranking to five stars in 2014-15, it has subsided to three stars lately. But it has retained a three-star or higher ranking for much of its life.

Reliance Tax Saver (ELSS) Fund has seen substantial swings in its market-cap allocations over the years. Large-cap weights were below 40 per cent until 2015, but have been steadily pegged up to 60 per cent in the last one year. Mid caps, which were taking up a 40 per cent plus weight in the portfolio a year ago, are now down to 25 to 30 per cent, with small-caps occupying about 15 per cent. The fund sets aside 20 to 30 per cent of the portfolio for multinational companies with robust fundamentals. It follows a blend of growth and value investing.

Reliance Tax Saver (ELSS) Fund three and five-year returns are ahead of the benchmark returns by 3 to 9 percentage points. As compared to the category, the fund has slightly underperformed over three years but is ahead by 3 percentage points over five years.

In 2015, after a bumper performance in 2014, the fund managed a timely shift to domestic recovery plays. This timely move has helped it stay ahead of the race in recent times, when economically sensitive and cyclical stocks have been back in vogue. Overall, the fund has fared better in tear-away bull markets than in bearish markets.

Reliance Tax Saver (ELSS) Fund is an aggressive fund in the ELSS space.

SIPs are Best Investments 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 – Best ELSS Funds

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

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

SBI SMALL AND MIDCAP Fund

SBI SMALL AND MIDCAP Fund is a pure-play small cap fund that takes aggressive exposure to the segment–much higher than many of its peers in the same category. With no large-cap exposure, it remains true to its label.

The fund manager takes an aggressive stance by running a tight portfolio–currently around 22 stocks–preferring concentrated exposure in his bets. This strategy requires astute stock selection. While the inherent risk is high, a strict focus on sustainable competitive advantages, capital efficiency, management quality besides valuations has ensured a better risk-reward profile than many of its peers.

SBI SMALL AND MIDCAP Fund has stopped accepting fresh inflows given the higher liquidity risk in this heated segment. Existing investors may continue with the fund given its proven track record.

13_03_2017_124_005_007.jpg

13_03_2017_124_005_008.jpg

13_03_2017_124_005_009.jpg

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

HDFC Mid-Cap Opportunities Fund

Best SIP Funds to Invest Online

The aim of the HDFC Mid-Cap Opportunities Fund is to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid- and small-cap companies.

A remarkably consistent performer in a very whimsical category, this fund has stayed put at a four star rating for the last seven years.

Usually parking about 55 to 65 per cent in mid-cap companies, the fund has tended to invest about 30 per cent in large-caps, with a residual position in small-caps. Broadly it has been underweight on small-cap stocks relative to the peers in this category. The fund follows a growth at a reasonable price strategy.

While the HDFC Mid-Cap Opportunities Fund three-year return, at 17.9 per cent, is one percentage point ahead of the category and its benchmark returns, the five year returns are 6 percentage points higher than the benchmark returns and beat its peers’ returns by about 3 percentage points. What stands out in its annual returns is its ability to weather any kind of bear market. In 2008, 2011 and 2013, this was a rare mid-cap fund to contain losses to levels far lower than those of its benchmark.

While many mid-cap funds have struggled to beat their benchmarks in the last one year, this fund has held up better. However, popularity has resulted in a rapid burgeoning of the fund’s size, from under Rs 10,000 crore in early 2016 to over Rs 19,000 crore now.

HDFC Mid-Cap Opportunities Fund makes it by far the largest fund in this category. So far, size has not proved a big impediment to performance but the returns do bear watching for this reason.

SIPs are Best Investments 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

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Investing in ELSS Funds even if its not for Tax Tax Saving – Should You?

There’s only one difference with another multicap equity fund – your money is locked in for three years. The side effect of this is that the fund manager will be able to think long term because he will be won’t be under severe redemption pressure in bad weather. But it has not translated into any statistical evidence that tax saving funds do better than normal mutual funds. There is a possibility that when tax savings funds get a lot of money and investors cannot get out, the fund manager can get complacent.

Invest ELSS Funds Online

Never build constraints for yourself unnecessarily. Why get your money locked in, when you don’t have to. You have plenty of other funds to chose from. One should be a long term and disciplined investor, investing regularly and with confidence. But why compromise on the liquidity when you don’t have to?

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

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

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

SBI Magnum Global Fund

Best SIP Funds to Invest Online

HOW SBI Magnum Global Fund PERFORMED?
With a 10-year return of 14.67%, the fund has lagged behind the category (15.18%), but outperformed the benchmark index (11.39%).

Growth of Rs 10,000 vis-à-vis category and benchmark

WHERE DOES THE FUND INVEST?
scheme-portfolio

Should You Buy SBI Magnum Global Fund?
This fund will soon shed its mid-cap positioning and transform into a multinational company- fund, in compliance with the regulator’s fund recategorisation exercise. This means it will invest at least 80% of its corpus in companies with global ownership or ones that get more than 50% of revenues from abroad, apart from stocks listed abroad.

The mid-cap bias will now give way to a multi-cap approach, covering MNCs of all sizes. The fund’s portfolio is, therefore, likely to take on a very different hue in the coming months.

However, a big churn in its portfolio is not likely, as it already boasts 60% exposure to MNC stocks. As it will become a thematic fund, investors will have to approach it as such. Its past return profile is no longer reflective of its new avatar, so investors should treat this as a fresh start.

SIPs are Best Investments 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 – Best ELSS Funds

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

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Reliance Vision Fund

Best SIP Funds to Invest Online

HOW HAS Reliance Vision Fund PERFORMED?

With a 10-year return of 10.33%, the fund has outperformed both the category (10.01%) and the benchmark index (8.6%).

Growth of Rs 10,000 vis-a-vis category and benchmark

Should you buy Reliance Vision Fund?
Although classified as a large-cap offering, it is being positioned as a large- and mid-cap oriented fund. Its long-serving fund manager prefers growth businesses with an emphasis on quality. He runs a compact portfolio and is comfortable taking large positions in select stocks and sectors where he has strong conviction. Currently, the fund has large overweight positions in auto and engineering stocks and has also bet heavily on select MNCs.

Reliance Vision Fund distinct and aggressive approach often results in bouts of sharp over- and under-performance relative to index and peers. It enjoyed a strong run last year, but has been lagging behind this year. Investors may see improved returns once the fund’s transition phase is over—but it will be suitable only for aggressive investors.

SIPs are Best Investments 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 – Best ELSS Funds

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

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

UTI Income Opportunities Fund

In the current market environment, we believe that funds having a combination of higher income accrual and lower to medium term duration, like UTI Income Opportunities Fund would provide a good investment opportunity for the investors over the medium to long term.

This captures the essence of the fund like its current positioning, the investment strategy, but also highlights the robust investment process

UTI Income Opportunities Fund Scheme returns as of 23rd March 2017 is furnished below:

Absolute % (Point to Point) Compound Annualized % (Point to Point)
Scheme Name NAV Launch Date Corpus (in Crs) Expense Ratio 1 Month 3 Months 6 Months 1 Year 3 Years Since Inception
UTI Income Opportunities Fund – Growth 14.8186 41232 2433.6491(28/02/2017) 1.93(28-Feb-17) 0.50 1.83 4.23 10.21 9.96 9.48

As of 28 Feb 2017:
YTM : 9.04%
Avg Mat : 2.09 Yrs
Mod Dur : 1.73 Yrs
Expenses : 1.93%

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

HDFC Long Term Advantage Fund

Best SIP Funds to Invest Online

How has the HDFC Long Term Advantage Fund performed?
With a 10-year return of 10.42%, the fund has outperformed both the benchmark (5.08%) and the category average (8.11%) by a good margin.

The HDFC Long Term Advantage Fund has outperformed the category and the index over the past decade.

HDFC Long Term Advantage Fund is a tax-saving fund has a patchy track record. While it delivered strong outperformance in 2016, its performance dipped last year. This is partly due to its higher tilt towards large-caps relative to many of its peers. The fund retains a compact portfolio of 40-odd stocks, with large positions in its top bets. The fund’s top picks are all benchmark heavyweights, but otherwise its portfolio bets have little resemblance to the index.

Even though financials form a chunk of its portfolio, it remains significantly underweight compared to the sector’s weight in the index. The portfolio turnover ratio, or churn, is among the lowest, indicating a strict long-term holding orientation. Investors may opt for other proven funds offering more consistency in outperformance.

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

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com