Tuesday, February 7, 2012

Should you invest in mutual funds?

Buy Tax Saving Mutual Funds Online

 

Current open Infra Bond Application form


   Over the last few months, inflows into mutual funds have diminished considerably. The stock market volatility has investors with low and medium risk appetite treading with caution. In the backdrop of optimism in economic growth and better-than-expected agricultural and industrial output, the market turbulence may pass soon. However, with the European nations in debt far beyond their GDPs and the shadow of US debt looming not far away, equity investors have reason to worry.


   With an uncertain domestic front and a turbulent global influence, small investors are in a dilemma. With fixed deposits yielding 10 percent returns, it makes little sense to take on the additional risks linked to mutual funds.
   Should you invest in mutual funds in the present conditions?


   Apart from the traditional debt and equity products, mutual funds offer a plethora of innovative products including index funds, exchange-traded funds, fund of funds and arbitrage funds. Depending on the investor's risk tolerance, goals and investment horizon, he can balance the risk reward ratio by adjusting his exposure to numerous asset classes.


   Equity and real estate have shown to beat inflation and yield attractive returns when held over a long duration. Adding the right funds to your portfolio basket today will make the returns attractive in the longer run. Investors with a low risk appetite should concentrate on debt mutual funds that invest in high-rated debt paper and government securities. Those with a higher threshold for risk can invest in diversified equity funds or small and mid-cap funds.


   Market corrections provide an opportunity for investors to add mutual fund units to their investment basket at bargain prices. Identify the right funds in sync with your investment objective and risk profile. Do not panic at the current volatility and focus on companies that have strong fundamentals and linked to the economy's long-term growth story. Instead of trying to pick stocks on your own, mutual funds lends the investor the expertise of a fund manager.


   Most investors try to time the markets. It is a daunting job even for professionals to get it right every time. Rather than waiting for the perfect opportunity, a systematic investment plan (SIP) provides an easy way out for investors. While one becomes a disciplined investor, the benefit of rupee cost averaging is the prime advantage. While investing through a SIP, you buy more units when the price is low and fewer units when the price is high. These market fluctuations are averaged over the investment tenure and the average cost of investment comes down.


   One should invest in mutual funds for the long term. A 3-5 year perspective would earn you handsome returns, even beating the inflation rate. In the current scenario of rising interest rates, it makes sense to lock into fixed deposits. However, a share of equity exposure with a 3-5 year investment horizon could bolster your overall portfolio's returns. Choose from the wide array of mutual fund investments depending on your risk appetite and diversify your portfolio.
 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

------------------------------------------------
How to apply to HUDCO Bonds?

Apply for HUDCO Tax Free Bonds forms below

Download HUDCO Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

 

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

0 comments: