Invest in Mutual Funds for Children

A minor can invest in mutual funds through a guardian

A minor (person below 18 years of age), can invest in mutual funds. However, it can be done only through a guardian. An adult, being a parent or lawful guardian of the minor, can hold units of a mutual fund and transact on behalf of the minor. You need to furnish necessary documents like the proof of age and the guardians capacity to hold and deal in mutual fund holdings.

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

ICICI Prudential Long Term Equity Fund – Tax Saving Fund

The ICICI Prudential Long Term Equity Scheme seeks long-term capital appreciation by investing approximately 90 per cent of the investments in equity instruments, while the balance 10 per cent would be a parked in debt and money market instrument and cash ( Including-money at call).

This fund has outpaced its benchmark over not one but three different market cycles; it has beaten its benchmark in 13 of the last 15 years. A rare ELSS fund that focuses on the value style of investing, it has managed a four- or five-star rating pretty consistently since 2011.

The fund’s valuation-focused style has helped it regain its four-star rating recently after a blip to three stars for a brief period. The portfolio is constructed around stocks and sectors with cheaper valuation that nevertheless goes with reasonable growth expectations.

Typically 55-65 per cent of its portfolio is allocated to large caps, 20-30 per cent to mid caps and 10-15 per cent to small caps. In the last one year, mid-cap allocations have been raised from 25 to 40 per cent, with small-cap weights trimmed.

ICICI Prudential Long Term Equity Fund is a rare ELSS fund that has managed to stay one step ahead of the benchmark on a trailing one-, three-, five- and ten-year basis, while also beating the category over these periods. The fund’s investment strategy typically delivers outsized returns in the beginning stages of a bull market when sector rotation is in vogue. It trails when markets are overheated. It also works well in containing losses when bears are in control. The value style of stock-picking has suffered setbacks in the last five years but seems to be back on the saddle in the last one year or so.

Overall, with the market tide turning currently, this fund is a good option to get in on trends ahead of the stampeding herd.

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 4 Tax Saver Mutual Funds for 2018

Best 4 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. BNP Paribas Long Term 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 SaveTaxGet Rich on 94 8300 8300

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Short Term Debt Funds

Taking stock today, short-term income funds may not appear to be the most attractive category of debt funds to invest in. Falling interest rates for the last three years have resulted in much higher interest rates from medium/long-term gilt funds, income funds, credit-opportunities funds and other categories.

Also, a few funds in this conservative category have taken exposure to lower-rated corporate debt and have suffered mark downs due to defaults and downgrades.

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But despite all this, short-term income funds are a good parking ground for your one-year-plus money, especially if you don’t like big year-to-year swings in your debt returns.

In this month’s issue, we present short-term income funds selected not for their chart-topping returns but for their ability to finely balance risks with returns. We shortlisted these funds for their very conservative portfolios and low credit risk, their tight rein on portfolio duration and their ability to deliver good returns with relatively low expense ratios. We have also run the Altman-Z check on these funds. It helps determine the risk of bankruptcy (and hence default) in a company.

Short-term debt funds: All

Aggregate data show that short-term income funds managed one- and three-year returns of 9.12 and 8.99 per cent on an average as on June 30, 2017. This was for the regular plans. Direct plans, with their expense ratios 40-60 basis points lower, managed over 9.2 per cent. The total assets managed by the funds were at Rs 1.87 lakh crore and the funds maintained an average maturity of 2.71 years.

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

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Put Surplus Cash in Liquid Funds

Liquid Funds can be an option for people looking for short-term investments, liquidity and above average returns.

When it comes to saving money, traditional savings options have been the preferred over all others for a long time. Without a doubt, such options are vital for our day to day transactions and to park money. With the advance of technologies and modern applications, they are fairly ubiquitous and convenient to use, providing modest appreciation and security.

Despite the advantages offered by traditional options, it may not be the most efficient way to save money. The main reason would be the modest returns offered.

Liquid mutual funds invest in money market instruments like treasury bills, corporate papers, bank certificate of deposits, etc. These instruments have zero or low risk, offer fixed returns and have a fixed maturity period. Liquid funds invest in instruments with upto a maturity of 91 days. While traditionally institutional investors (corporates and banks) have invested in liquid funds, retail participation is also increasing. As per AMFI data, liquid funds have seen its assets under management grow by 13% since October 2016.

One of the major advantages of investing in liquid funds is the returns, compared to traditional savings options. As per the daily updated data on Moneycontrol, the top-performing mutual funds generate returns ranging between 7.7%-10% annually. Even during an inflationary period, the Reserve Bank of India (RBI) would keep interest rates high, tightening liquidity which may allow liquid funds to post good returns.

However, the real worry with traditional savings is inflation. A rise in inflation would put a dent in the purchasing power and thereby would give lower returns. On the other hand, liquid funds are market-linked, and an extraordinary financial crisis can impact the selling price. The returns from liquid funds are not guaranteed.

Overall, the question is not whether traditional savings instruments are better than liquid funds but how to effectively manage the surplus. Depending on the person’s income, expenditure and risk profile, a savvy investor can save an adequate amount of money for expenses and emergencies while deploying the remainder in a liquid fund and aim to earn better returns on it.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Invest in Best Short Term Funds Online

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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You can write to us at

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Call us on 94 8300 8300

Save Tax with Best ELSS Fund and Relax

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

You can write to us at

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Call us on 94 8300 8300

Axis Long Term Equity Fund

Axis Long Term Equity Fund

  • Investment Style: Large Growth
  • Investment Process: High-conviction portfolio based on the team’s ability to identify under-researched stocks
  • Fund Manager: Jinesh Gopani

Jinesh Gopani has been managing Axis Long Term Equity Growth since April 2011 and has been able to execute the strategy with consistency so far. We think that he stands out as an efficient stock-picker. This is the largest fund in the Tax Savings (ELSS) Morningstar Category. Although the growth in fund size is consistently monitored by the fund house, we are wary of the pressure that it puts on existing resources.

Gopani looks for companies that have the capability to grow over a 3- to 5-year time period and places a lot of emphasis on finding quality names at reasonable valuations. The portfolio typically invests about 50% to 70% in large-cap names with the remaining portion of the portfolio invested in small- and mid-cap stocks. The team follows a detailed research process that aims to identify under-researched ideas. The portfolio is made up of Gopani’s high-conviction ideas and has a distinct character. The portfolio is markedly benchmark-agnostic and typically shares a very low overlap of about 25% to 30% with the S&P BSE 200 Index. From a valuation perspective, the team tends to invest in stocks that are slightly expensive in relative terms as long as they meet its internal quality and growth criterion.

The fund has remained true to its mandate. Despite its recent short-term underperformance and the changes in the investment team, we think that Gopani is capable of turning things around. Our conviction in Gopani, his consistent and efficient execution of the strategy, and the positive long-term performance lead

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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Create with with ELSS Funds

With the tax season around the corner, tax-saving should be high on your priority list of financial planning. With Equity Linked Savings Scheme, you could aim to get better returns over traditional tax saving instruments.

Investment Option Lock-in Period Returns CAGR Per annum Tax status on returns
ELSS 3 Years 13.13%^ Tax Free
Public Provident Fund 15 Years 7.9% Tax Free
National Savings Certificate 5 Years 7.8% Taxable
Bank Tax Saving Fixed Deposit 3 Years 6.25% Taxable

^ELSS Category Average, as on 30th Nov, 2017. Source: Morningstar Direct. PPF and NSC, source: India Post.
Bank Fixed Deposit source SBI.

SIP or VIP

Mutual Fund VIPs



While VIPs give superior returns, they are not easy to administer.

The advantages of dollar cost averaging, or systematic investment plan (SIP) as it is known in India, are there for all to see.

In addition to streamlining your regular investments, SIPs also help to reduce the average cost of holding a bit.This is because you are investing a fixed amount every month and as a result, you get more number of units when the market is down and less number of units when the market is up.

Value averaging investment plan (VIP) is another concept that helps you augment this averaging benefit.

VIP averages at the minute level and in volatile markets, it generates around 1.5% to 2% additional CAGR over a five-year time period. So, how does it work? VIP does better averaging by putting more money to work when the market is down and reduces investment when the market is up.

We can better understand how the two plans work by assuming a monthly investment of `10,000 in a VIP and an SIP. To keep it simple, we assume that the rate of return expected is 1% per month (CAGR of 12.68%). In the first month, the investor puts `10,000 in the VIP and SIP. Since the assumed rate of growth is 1% per month, the invested value should grow to `10,100 by the time the second instalment is due. However, this rarely happens and depending on the market situations, the actual value will be either higher or lower than the expected value. Now assume that instead of going up by 1% as expected, the NAV has tanked by 5%, so the current value becomes `9,500. While the SIP investor will continue with the `10,000 investment, the VIP investor will compensate for the deficit of `600 (`10,100 ­ `9,500) and make an investment of `10,600 (see chart).

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At a growth rate of 1% per month, the first two instalments should have grown to `20,301 by the time of third instalment.Now assume that the market has jumped 4% during the second month and the invested value has reached `20,904. Since the current value is higher than the targeted value, investment for the month will be reduced by `603 (ie `20,904 ­ `20,301) and the VIP for the month will be `9,397. In VIP, this process is followed month after month till you reach the goal date.

In addition to generating better returns, the probability of reaching your goal is also more likely with VIP because here the review is more frequent. In case of SIPs, the portfolio review is carried out at 6 months or one year intervals. However, it happens automatically every month for VIPs.

Suitability:

While everyone can invest through SIPs due to its simplicity, VIPs are not for all investors. It is better for small investors who are starting out to continue with SIPs. Compared to SIPs, VIPs are also more difficult to administer. While all mutual funds allow automated SIPs, very few offer automated VIPs. This means you have to do it manually or rely on your investment adviser or distributor or online mutual fund transaction portals like RoboMF.

Suitability also depends on the level of investor knowledge. VIP suits investors who are more vigilant and also have some basic understanding of economic cycles. Else the monthly volatility can put off investors from investing altogether.

VIP is more suitable for investors with deep pockets, because of the erratic monthly investment amounts. Though the variation will be small in initial months, it can become really large in later stages. For instance, a sudden demand for a high amount (say `30,000) may be difficult for an investor who can afford only `10,000 per month to cough up. Fixing a monthly investment band (eg `5,000 to `15,000) is a partial solution, but still you need access to a lot of money. Even if you fix a reasonable band of `5,000 to `15,000, this `15,000 may be required continuously for a few months, so you need to have that much surplus in hand.

VIP works only for disciplined investors and can be disastrous for spend thrifts. This is because there will be periods that may suggest zero in vestment and if the investor is not disciplined, this additional surplus may end up as consumption. Some of this problem can be tackled by using a combination of equity and debt funds. In this case, you can keep the total monthly investment amount constant and manage the VIP into equity schemes by increasing or reducing your debt fund combination.Even if the VIP demands higher investment in some months, you can manage it by switching from debt funds.

However, here the investors needs to take care of the additional taxation issues that could arise.

Just like SIP, VIP also works better in volatile markets and will not work in one sided bull or bear markets. Your equity exposure may be much less in raging bull periods like it was between 2002 -2007 or you may invest much more in constant bear markets like 1994 to 1998. And compared to SIPs, you need to give a longer time periods for VIPs. VIP is meant for the very long term and to get results, you need to give at least 10 years

ICICI Prudential Balanced Fund

ICICI Prudential Balanced Fund is A balanced scheme suits equity investors who are particularly concerned about insulating their portfolio from extreme volatility of stock markets. A balanced scheme gives investors the best of both the worlds -equity and debt. Among the balanced schemes, ICICI Pru Balanced Fund has been a distinguished performer.

Fund managers Sankaran Naren, Manish Banthia and Atul Patel manage the scheme. On the equity side, the scheme is known for its contrarian investment strategy. This is a key thing that distinguishes the scheme from other balanced funds. The fund managers are not interested in employing inconsistent stockselection strategy and show superior returns. The scheme has a good mix of large-sized established companies on the equity side. Prominent companies in sectors such as telecommunications, power and IT, which may seem out of favour at present, may see a turnaround in earnings cycle in the next two years are the ones which have attracted the attention of the fund managers. On the debt side, the scheme’s portfolio consists of government securities and bonds with more than AA ratings, which provides reasonably good assurance to investors about the safety of their capital.

The scheme has been a top performer and has delivered 16-20% returns in the past threeand five-year periods, though its category of funds has given 14 and 16% returns during the same period.

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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

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

Dynamic Equity Funds Tax Advantages

Best SIP Funds Online

What is the tax treatment of dynamic equity funds?

A big advantage of these funds is that they are structured in such a way that they are taxed as equity funds for investors. Most funds, when they lower their exposure to equities, ensure that equity plus arbitrage component of the scheme is at least 65% of the corpus, which helps it qualify for equity taxation. When the fund qualifies for equity taxation, investors who hold the fund for one year need to pay zero long-term capital gains tax, making the investments tax free.

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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