Even as the fund has seen its return profile improve in recent years, it’s long term track record is a bit patchy because of under performance its initial years. The fund seeks to invest in future leaders, and takes a more aggressive approach compared to many of its midcap peers, with a higher tilt towards smaller-sized companies. This lends it a higher risk profile, which it strives to contain by taking a limited exposure to its top stock picks and investing across companies within its chosen sectors. The chosen stocks are mostly sector leaders or challengers to leaders in sec tors with sound growth prospects. While the fund has delivered decent mid-tier performance in recent years, its new fund management team will need time to prove execution capabilities.




FATCA for an NRI

Mutual Fund FATCA for NRI

As an NRI, you can continue your existing mutual fund folio and home loan repayment

FATCA is a US federal law which enforces the requirement for US residents to file yearly reports of their non-US based financial accounts. It also requires all non-US financial institutions to search their records and report the assets and identities of such persons to the US Department of Treasury.

Birla Sun Life Tax Relief 96 Fund

Invest Birla Sun Life Tax Relief 96 Online

While you might be on the lookout for good tax saving avenues, we offer you a Scheme that can help do much more.

What if you had the opportunity to invest in a Scheme that’s not only a tax-saving instrument, but could also possibly help grow your investments by 100 times? That’s right! Tax saving and wealth-creation now go hand in hand to expand your horizon of opportunities.

If you would have invested rs.jpg10,000 in Birla Sun Life Tax Relief ’96 since inception (Date of inception: March 29, 1996), your investments would have grown 104 times to rs.jpg10,46,603. Take a look at its performance below:


rs1.jpg 10,000 invested in Birla Sun Life Tax Relief ’96 on March 29, 1996, has grown to rs1.jpg 10,46,603 as on 31/12/2015 @26.52% CAGR

Past performance may or may not be sustained in future. Load and Taxes are not considered for computation of returns. All dividends declared prior to the splitting of the Scheme into Dividend & Growth options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV (ex-dividend NAV). NAV as on December 31, 2015 (for Regular Plan-Growth Option) – `21.87. Returns greater than 1 year period are compounded annualized. Benchmark for the scheme S&P BSE 200 Additional Benchmark: Nifty 50.

Total Schemes managed by Mr. Ajay Garg is seven. Click here to know the performance of the scheme and other schemes managed by the fund manager. Tax deduction(s) available u/s 80C of the Income-tax Act, 1961 is subject to conditions specified therein.Investors are requested to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future. Investors are advised to consult their tax advisor in view of individual nature of tax benefits.


Reliance Tax Saver Fund

The scheme aims to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.

A category topper which has consistently beaten its benchmark and category over three, five, seven and ten years, this fund has managed a climb from three- to four-star ratings in the past year.

Though most funds in the ELSS category follow a multi-cap approach, this fund specifically favours mid- and small-cap stocks. The mandate allows a 40-60 per cent allocation to large caps, but in practice, in the last couple of years, the large-cap exposure has hovered at 25 to 45 per cent, with mid caps taking up a 40 per cent plus weight and small caps occupying 15-20 per cent. In the last six months though, the fund has upped its large-cap weights to nearly half its portfolio, probably due to richly priced mid and small caps. The fund sets aside 20-30 per cent of the portfolio for multinational companies with robust fundamentals. It follows a blend of growth and value investing.

Reliance Tax Saver Fund three-, five- and even seven-year returns are ahead of the benchmark by 7-18 percentage points. In 2015, the fund managed a shift to domestic-recovery plays. This timely move has helped it stay ahead of the race in the last one year. Overall, the fund has fared better in tear-away bull markets than in bearish markets.

This is an aggressive fund in the ELSS space, but one that has made timely shifts to keep up with the market’s changing preferences.

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 2017 – 2018

Best 4 ELSS Mutual Funds to invest in India for 2017

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 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

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Tax on Mutual Fund Investment for 2017

The dividend income received from the funds (in case you opt for dividend option) is tax free in your hands for both equity and debt funds. The only difference is that for debt funds, this dividend is paid out to you after the fund house pays a dividend distribution tax (DDT) of 28.33% for FY16-17.

The capital appreciation on funds are categorised as equity funds and non-equity funds for taxation. Based on the categories the gains will incur taxation as stated in the chart below:

Mutual fund taxation this financial year

Fund categories considered for equity taxation: Large cap, Mid-cap, Small-cap, Multi-cap, Balanced funds (equity oriented), Sector funds, etc.

Fund categories considered for non-equity taxation: Liquid mutual funds, Money Market funds, Gold funds, Infrastructure debt funds, Balanced funds (Debt oriented), Equity-International, Fund of Funds, etc.

Power of Compounding in Investments

Power of Compounding – The Eighth Wonder of the World

Save Tax Get Rich

For children, probably the toughest task is to resist the temptation of having all of their favourite sweet in one go. Ask children to save a little bit of the sweet for later and they will look at if as if you tried to be really funny but failed miserably. The idea of saving something good for later is something that children just don’t understand.

And why blame them? They’re children, after all. Even us adults don’t understand the benefits of saving for later. Take the example of our tax-saving investments. The day the investments start earning really good returns, we start contemplating redeeming them and reaping the benefits right away. However, the finest benefits of tax-saving investments are reaped not in the short-term, but over longer periods of time. This is because it is over the long-term that the power of compounding really starts showing its magic.

If you told a child to save her favourite sweet for later, she would agree if you told her that the sweet would grow bigger if she saved it for longer. A small piece today growing into a bigger chunk over time. That seems like reason enough to save–for a child as it should be for an adult.

With Tax Saving investments like Public Provident Fund, ELSS funds, National Savings Certificate, etc, the small savings you put periodically in them can translate into a big corpus if you stay invested and keep investing. This is because these investments earn compounding interest.

Compounding interest is when one year’s interest is added to the next year’s principal and in the second year, interest is earned on both the principal and the interest. When this happens year after year, the results end up being phenomenal. With compounding interest, you basically earn on not only what you invest but also on what you’ve already earned.

For example, let’s say you begin investing Rs 10,000 a year in these tax-saving investments and your portfolio earns 10% interest, the closing balance for the first year would be Rs 11,000. Next year, you would invest another Rs 10,000 and if the portfolio earns 10% interest again, it would be calculated on Rs 21,000. This way, year after year, your interest would get added to your investment and you would earn on both.

The following table shows how compounding interest turns a small amount every year into a big corpus. We have taken 10% as the rate of interest through the 10 years.

Year Opening Balance Investment Interest Closing Balance
1 10,000 1,000 11,000
2 11,000 10,000 2,100 23,100
3 23,100 10,000 3,310 36,410
4 36,410 10,000 4,641 51,051
5 51,051 10,000 6,105 67,156
6 67,156 10,000 7,716 84,872
7 84,872 10,000 9,487 1,04,359
8 1,04,359 10,000 11,436 1,25,795
9 1,25,795 10,000 13,580 1,49,375
10 1,49,375 10,000 15,937 1,75,312
Total 1,00,000 8,28,430

*figures have been rounded off to the nearest decimal

As per the above table, if you invested Rs 10,000 every year, your invested amount of Rs 1,00,000 would grow to a corpus of Rs 8,28,430 thanks to compounding interest. And this is when assuming a rate of return of 10% while a diversified portfolio of tax-saving investments can earn anywhere between 13-15% over a long period of 10 years and more.

Now, doesn’t that sound magical. It is, which is why compounding interest is called the 8th wonder of the world by Albert Einstein. Compounding interest is also one of the primary reasons why experts recommend tax-saving under Section 80C. This is where these investments offer a win-win situation for investors–tax saving and wealth creation thanks to compounding interest.

Invest in Mutual Funds SIPs for long term

Start MF SIPs Online

While the best 10-yr SIP return from a diversified fund is 29.45% CAGR, the worst is just 7.6%; investors should review fund performance regularly

Should I start a systematic investment plan, or SIP , in an equity mutual fund and forget about it?

This is one of the most commonly asked questions by investors who want to or have put a portion of their regular income in equity schemes to meet various goals like buying a house, planning for child’s education and overseas holidays. While financial advisors emphasise the importance of long-term investing, usually for 7-10 years, the `fill it, shut it, forget it’ strategy might not work always.Wealth planners advise that investors need to review the performance of their investments regularly to ensure their money is working hard enough for them.

A study of 94 diversi fied equity schemes will tell you why keeping a tab on performance is important. Data compiled show of the 94 open-end diversified equity mutual fund schemes, for a 10-year SIP period, the best performer gave an annual return of 29.45% while the worst performer gave 7.6% returns. At less than 8%, the equity mutual fund has delivered lower returns than some long-term fixed deposits.

So, if `10,000 had been invested every m o n t h fo r 1 0 ye a r s i n U T I Transportation and Logistics, the best performing scheme, it would have grown to `43.16 lakh in a decade. Now, if the same amount was invested in a laggard like JM Equity Fund, it would have grown only to `17.26 lakh.

The study shows while it is important to focus on investing in the long-term, it is equally crucial to pick the right product.

Out of 94 schemes analysed, 12 returned less than 10% on a compounded basis over 10 years. Though the number of under performers is not high, it is still a reminder that winners of the past need not maintain their streak over a period of time. This is relevant to several investors today who have been sold equity mutual fund SIPs by distributors almost like a returns-assured arrangement. Many financial planners show excel sheets where they assure you equity SIPs will earn 12-15% and you will reach your goal. Investors should do their own math, not blindly follow this as there is no guarantee of this return

A lot of the money flow into equity SIPs over the last three years have been driven by such expectations of retail investors.Monthly inflows into equity mutual fund schemes through SIPs, which were Rs 1,200 crore three years ago, have now swelled to Rs 4,000 crore. Wealth managers said investors could review their portfolios every six months.

If a scheme is underperforming its benchmark, it should raise a red flag

But, the six-monthly or yearly review may not work in every case. For instance, there are equity schemes that have underperformed for two or three years in a row but have caught up with the rest or even outperformed them over a five-year period. This is true in the case of schemes whose fund managers shuffle their portfolios the moment they see bubbles building up in sectors that are in vogue.

If investors continue to believe in the fund managers’ conviction, they can continue to hold on to the investment, else switch out.


Mutual Funds with higher NAVs

Mutual Funds NAVs Online

We thought the ghost of a lower NAV or Net Asset Value has been laid to rest long ago. However, it is suddenly showing signs of life. Some investors have revived it after they noticed higher NAVs of direct plans vis-a-vis their regular counterparts. Several of them mailed, asking whether it really makes sense to buy direct plans since these plans have a higher NAV than their regular versions. Most questions read like this:

Is it prudent to buy a direct plan with a high NAV? I will get a lot units if I buy a regular plan with a lower NAV with the same money. So isn’t it better to go for a regular plan with a lower NAV?

So, we thought it is time to revisit the myth of lower NAV. Here is what we found in our archive. It would dispel the myth of benefits of a lower NAV in a mutual fund scheme. Read on:

Is a fund with a low NAV a better investment option than a fund with a higher NAV? Since you can buy more units when the NAV is low, isn’t it cheaper? Should mutual fund schemes with a higher NAV be avoided? These are questions, which trouble many first-time investors in mutual funds.

The answer to these questions is that it is irrelevant how high or low the NAV of a fund is. The amount of your investment remaining unchanged, between two funds with identical portfolios, a low NAV would mean a higher number of units held and consequently a high NAV would mean lower number of units held. But under both circumstances, the product of the number of units and the applicable NAV, which is the value of your investment, would be identical. Thus it is the stocks in a portfolio that determine returns from a fund, the value of the NAV being immaterial.

When one sells those units, the return will be the same as that of another scheme, which has performed similarly. The ‘cost’ of a scheme in terms of its NAV has nothing to do with returns. What you want to buy in a scheme is its performance. The only instance where a higher NAV may adversely affect you is where a dividend has to be received. This happens because a scheme with a higher NAV will result in a fewer number of units and as dividends are paid out on face value, higher NAV will result in lower absolute dividends due to the smaller number of units. But even here, total returns will remain the same.

So from whichever angle you see it, the NAV makes no difference to returns. Mutual fund schemes have to be judged on their performance. And the simplest way to do this is to compare returns over similar periods.

Sundaram Tax Saver Online

Invest Sundaram Tax Saver Online

Sundaram Tax Saver has a long history having been around since the end of 1999. And it did get noticed for its performance. In 2007 it delivered 68% in a roaring bull market and its fall the next year was (-)47%, below the category average of -55%. Unfortunately, over the past 7 years, this fund has outperformed the category average just once, in 2012.

Not surprisingly when you take a look at the changes undergone by the fund.

Earlier the fund was managed by N Prasad and Anoop Bhaskar. However, the changes at the helm are stark over the past few years. Satish Ramanathan relinquished portfolio management responsibilities in January 2012 to be replaced by Srividya Rajesh and J. Venkatesan. Rajesh quit the fund house in April 2013 and Venkatesh continued to manage the fund until March 2015. Current fund manager Krishnakumar took over the fund’s reins in April 2015.

While Krishnakumar has a lot of experience backing him and has done a good job with Sundaram Select Midcap), senior fund analyst Kavitha Krishnan would like to watch his performance for a while before she concedes to an upgrade.

The changes at the fund management level were also reflected in the fund’s investment strategy. Previously run with a large-cap bias (65-70% in large-cap stocks), it then tilted towards a mid-cap bent as exposure to smaller fare went up from 30%-35% to about 40%-50%.

Earlier, the fund was relatively diversified at a sector level with sector weightings being loosely tied to the index (with a permissible deviation of +/-8%). The fund is now run with a more concentrated approach towards sectors with little heed to the index.

As of now, our analyst has adopted a wait-and-watch approach until such time that she gains confidence in the fund.

The latest portfolio seems well diversified at almost 60 stocks with the top 10 holdings cornering 33.65% of the portfolio. The topmost holding – HDFC Bank is at 5%.


  • Fund Manager: S. Krishnakumar
  • Fund Category: Equity Linked Savings Scheme (equity tax planning)
  • Portfolio: A multi-cap strategy that can tend to have a higher exposure to mid-caps compared with its peers.
  • Investment Process: A well-defined process; aimed at constructing a growth-oriented portfolio of high-conviction ideas.

Systematic Transfer Plan Investing in Mutual Fund

Systematic Transfer Plan Online

Making investment under stock market is like a gamble that is why people uses different techniques like Systematic Investment Plan(SIP) or Systematic Withdrawal Plan (SWP) to invest and withdraw their funds in a predefined manner.

Earlier we have discussed about SIP, it is an investment plan which let us invest money in small chunks in the stock market. Now we are here to introduce you with a plan which let you invest your money in lump sum under stock market i.e STP.


What Is Systematic Transfer Plan (STP)?

Systematic transfer plan (STP) is a technique of investment under mutual funds where investor can transfer a fixed amount of investment from one type of mutual fund to another at defined intervals. In other words, when an investor want to invest a lump sum amount under stock market then using STP feature of mutual funds he can choose to invest his funds under debt and equity funds and can switch from one fund type to another to protect his funds in volatile market conditions.

STP plans offers Daily, Weekly, Fortnightly, Monthly, and Quarterly Transfer. Which means investment made by one investor can be switched on defined intervals as per the plan chosen. So to save risk in volatile market condition investor use this facility to switch there investment from equity to debt funds.

Investor investing under mutual funds using STP needs to choose and intimate the AMC about:-

  • Time interval for the transfer from the available options like Daily, Weekly, Fortnightly, Monthly and Quarterly.
  • Fund from which the transfer will take place and the fund to which transfer will take place for e.g from equity fund to debt fund.

For Example, If Mr X want to invest under Kotak 50 Rs 10 Lakhs then he can invest Rs 10 Lakhs as lump sum under a debt fund and then choose the time interval for transferring funds from kotak debt fund to Kotak 50 in small chunks like Rs 5,000, Rs 10,000 or Rs 20,000 as per your choice.

Benefits Of Systematic Transfer Plan (STP)

Offers You The Benefit Of Systematic Investment Plan (SIP) :- As with STP you can first invest your lump sum money in a debt fund and then transfer funds from debt to equity like you make investment under SIP.

Offers You The Benefit Of Systematic Withdrawal Plan (SWP) :- As with STP you can also transfer your funds from equity to debt which help you take out your money in risky market conditions like SWP.

Offers You The Benefit Of Liquidity :- As with STP investor keep the lump sum amount under debt funds and investor can redeem debt funds any time so investor get complete liquidity.

Offers Returns :- Amount invested under debt funds also offers returns to the investor.