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
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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

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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.

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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

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ELSS Funds 2018

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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 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

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ICICI Prudential Long Term Equity Fund (Tax Saving)

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).

ICICI Prudential Long Term Equity 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, ICICI Prudential Long Term Equity 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 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

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For further information contact SaveTaxGetRich on 94 8300 8300

What is FATCA in MFs?



If you are a mutual fund investor, you must be getting messages from your distributor or fund house, requesting you to be FATCA compliant before the deadline of April 30.

1. What is FATCA?

FATCA, or the Foreign Account Tax Compliance Act, is a US tax initiative that requires all financial institutions, including Indian mutual funds, to re port financial transactions of US persons, or entities in which US persons hold a substantial ownership, to relevant tax authorities. The purpose of FATCA is to encourage better tax compliance by preventing US citizens from using finan cial institutions outside their home country to avoid domestic taxation laws.

2. What do mutual fund investors have to do?

All individuals and entities who have opened mutual fund folios between July 1, 2014 and August 31, 2015, need to sub mit the FATCA self-certifications by April 30, 2017. In case self-certifica tions are not submitted, such folios should prohibit the unit holder from effecting any further transactions.

Investors can update details online through websites of CAMS, Karvy , Sundaram Fund Services and Franklin Templeton, which act as registrars for mutual fund houses. While many individuals are already compli ant, it is possible that some informa tion has not been fully captured or in vestors have missed something.

Hence, investors check to confirm if they are FATCA-compliant.

3. Why is this law applicable to mutual fund investments?

The government of India and the US have reached an agreement on the terms of an Inter-Governmental Agreement (IGA) to imple ment FATCA and India is now treated as having an IGA in effect from April 11, 2014. Indian mutual funds are required to share financial accountasset informa tion of account holders who are US tax residents.

Towards compliance with FATCA, mutual funds are required to seek additional personal, tax and beneficial owner information and cer tain certifications and doc uments from unit holders.

4. Do all investors have to do this?

All investors, including NRIs, have to provide information for FATCA.

5. What information does an investor need to provide?

Investors are expected to pro vide details such as country of tax residence, tax identification number from that country , country of birth, country of citizenship, etc at the time of initial investment or opening the folio. In case of non-individual investors, the abovementioned information of any of the controlling persons will have to be submitted. If you have been paying taxes in any country apart from India, you need to provide the tax identification number or any such number equivalent to the PAN here.

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

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For further information contact SaveTaxGetRich on 94 8300 8300

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Debt Funds Returns 2017

Start Saving for Tax 2018 by Investing in ELSS Funds Online

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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

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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ICICI Prudential Value Discovery Fund

To invest in a well-diversified portfolio of value stocks (those having attractive valuations in relation to earnings or book value or current and/or future dividends).

ICICI Prudential Value Discovery Fund follows the contrarian style of investing, it is a top-of-mind choice in the multi-cap category. Having climbed to a four-star rating way back in 2009, it has held onto a four- or five-star rating since then. It has enjoyed a five-star rating in the last one year.

Despite its label, the fund doesn’t hunt for deep-value stocks but for stocks that have growth potential and are trading at a discount to their intrinsic value. The parameters used to measure value are price-to-book value and relative market capitalisation. The fund is market-cap agnostic.

From a high mid-cap exposure a year ago, the fund has raised large-cap bets to 75-80 per cent of the portfolio in the last few months due to more attractive valuations in this space. Mid-cap bets have been moderated from above 40 per cent to 20 per cent. This has probably helped the fund contain losses well during the recent market correction.

ICICI Prudential Value Discovery Fund has one of the best records in its category in the last five years, beating its benchmark as well as the peers. The fund’s three- and five-year returns are 9-11 percentage points ahead of that of the benchmark and about 6 percentage points ahead of that of the category average.

Popularity has seen its asset size burgeon to over Rs 15,000 crore. This seems to have led to a large-cap tilt in its portfolio choices. But the fund’s multi-cap approach ensures that it doesn’t have to dilute its contrarian mandate in order to manage a larger fund size.

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

Registrar and Transfer Agent

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An R&T agent is an intermediary who takes care of the back-end processes of a mutual fund, processing all financial and non financial transactions.

1. Who is an R&T agent?

An R&T agent maintains re cords of every mutual fund transaction on behalf of the fund house, through his net work of offices across the country . CAMS, Karvy and Sundaram BNP Paribas Fund Services are some regis trars for mutual funds.

ICICI, HDFC, Birla Mutual fund house are all serviced by CAMS. Reliance and UTI are ser viced by Karvy . An R&T agent, through his wide network of branches across the country , helps process both financial as well as non-financial transactions, gives inves tors forms of fund houses, and even sends out ac count statements. An R&T agent also helps in vestors with informa tion and details on any new fund offers, divi dend paid, consolidation of folios or any such in formation. All these de tails are also available from fund houses.

Investors can get infor mation about various in vestments in different schemes of different fund houses at a single place from the R&T agent.

2. Why do mutual fund houses appoint them?

Every day mutual fund inves tors do a number of transac tions, like buying, selling or switching units. Besides these financial transactions, they also do non-financial transactions like a change in bank details, change in contact details or address. Each such request needs to be recorded and the fund house is supposed to maintain records of each such transaction. Since most MFs may not want to invest in these processes nor do they have the expertise to handle these huge transactions on a professional basis, they outsource this work. The registrar and transfer agents (R&T agents) help them perform this job.

3. How do mutual fund houses benefit from an R&T?

From a mutual fund’s perspec tive, R&T agents provide great er access across the country and help save costs. Due to their having offices across the country , they serve as branches for the mutual funds and help them in their sales processes. Typically , every investor looks to invest in multiple schemes, which may be from different fund houses. As per the rules of Securities and Exchange Board of India, there is a cut-off time by when the investment has to be made to be eligible for that day’s NAV . So, to make multiple investments, an investor will have to run around multiple fund houses. Instead, he can use an R&T agent’s services to conduct all his transactions.Suppose he invests in Birla MF, HDFC MF and ICICI MF, he can use the services of CAMS only . The mutual fund house pays money for the services offered by the R&T agent.

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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DSP Black Rock Tax Saver Fund

DSP BlackRock Tax Saver scheme seeks to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors avail of deduction from total income, as permitted under the income tax act.

A conservative fund in the ELSS category, it has retained a consistent three- to four-star rating for the last six years amid challenging market conditions. It managed a climb in the rankings from three stars to four stars and then five stars in 2016.

DSP BlackRock Tax Saver Fund has outperformed its benchmark in eight out of nine years since launch and its peers in seven of those years. The fund isn’t wedded to any particular style and follows a diversified approach to select stocks. Though multi-cap by mandate, the fund has been quite large-cap stock oriented in the last five years. The fund also takes tactical calls to capitalise on market trends and opportunities.

The fund’s margin of outperformance relative to the category and benchmark has widened in the last one year to over 6 percentage points. On a three- and five-year basis, its annualised returns are over 7 percentage points and 3 percentage points ahead of the benchmark and category, respectively. It is creditable that this has been managed with a distinct large-cap tilt relative to the category.

The track record suggests that the fund has proved better at navigating bull runs and volatile phases in the market than bear phases. In 2008 and 2011, the fund lost slightly more than the category. It has delivered sizeable outperformance in 2012 and 2016.

However, as the fund has seen a change in manager in 2015 and also adopted a higher allocation to large-cap stocks, past performance may not be a great guide to the future.

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