Advantages of ELSS funds

 

ELSS funds are an advantageous way to use the Rs 1.5 lakh limit for tax saving investments under Section 80C

 

 

Under Indian tax laws, savers have a complete range of tax saving instruments available to them. And yet, individuals often take sub-optimal investment decisions with their tax-saving investments. Deposits with long lock-ins that hardly pay anything more than inflation; insurance schemes that eat away a lot of the gains in agent commissions; Equity linked Savings Schemes (ELSS) of mutual funds chosen with scant regard to performance track-records--all these (and more) are often seen when it comes to tax-saving investments.

 

 

Why does this happen? One common reason is that there is a confusion of goals between saving tax and making investments. The typical investor makes this decision either in late March under the duress of having the deadline slip by, or under intense pressure by a salesman who drives home the fact that time is running out. At the end of the day, we make suboptimal investment decisions and when they ever realise it, they console themselves by saying that that at least they got tax benefits for the investments.

 

This duality of concern--tax as well as investments--prevents clear-headed thinking about just exactly what one is getting out of an investment and whether the quantum of any disadvantages are actually worth the quantum of tax benefits that are being obtained. Investors should work on eliminating both these sources of poor decision-making--time pressure as well as not thinking about these investments as investments.

 

Eliminating time pressure is simple--just plan these investments as early in the year as possible--if you haven't done so, then this is the right time to do so. And once you start in time, there's no need to stop for next year. Since the best way to invest regularly in a fund is through an SIP, you should just start an SIP in a carefully-chosen ELSS fund and let it run for a long duration.

 

These investments are investments and should not be made if you would not make them otherwise. For example, if you otherwise do not need to make a fixed deposit but would rather invest in equity, then do so in your tax-saving investments as well. Any investment has to first make sense as an investment, and only incidentally be a tax-saver.

 

Within this framework, ELSS funds are an advantageous way to use the R1.5 lakh limit that is there for tax saving investments under Section 80C. This limit has been sharply enhanced in FY 14-15 than it was earlier, but, for many people, a good part of it gets consumed by statutory deductions.

 

Unfortunately, all the statutory deductions are invested into fixed income instruments Now, the Government has even placed some tax deductible expenses under Section 80C.

 

Within this limit, ELSS is the better way to get the advantages of equity investing.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Advantages and disadvantages of online insurance plans

 

Advantages and disadvantages of online insurance plans

 

As you will have no agent to help you out, you should read the policy document carefully and understand its implications fully

 

LIC also has online insurance plans. However, LIC term plans are more expensive when compared to other insurers with a good claim settlement ratio. Purchasing insurance online is convenient and cheaper than using an agent. Pure term covers are also simple products. Websites of insurance aggregators also allow you to compare quotes from all leading brands and find the best deal. Online insurance purchases have their share of shortcomings, too. Since no agent is involved, you should read the policy document carefully and understand its implications fully.

 

There are some points that you need to remember while making online purchase of insurance plan. Ensure that you make a comparison of policies from various companies. Once you have chosen the policy you will be required to provide personal details such as date of birth, address, sum assured, medical history, your present state of health, etc. Ensure that you provide exact and correct details.

 

Do remember that the objective of an insurance cover is to acquire the sum assured amount when there's a claim. In the case of an online term plan, your nominee has to coordinate with the insurance company directly for the claim settlement. But in the case of an offline plan, the advisor/broker is a one point contact and will work on your behalf to help you get the claim from the insurance company.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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How to check the status of your tax return acknowledgement sent by post

How to check the status of your tax return acknowledgement sent by post

 

A large number of taxpayers are likely to send physically signed ITR-Vs to the CPC. In that case, here's how you can track your acknowledgement

 

According to a press release by the Central Board of Direct Taxes (CBDT), 7.53 million taxpayers used the e-verification facility to verify their income tax return (ITR) this year (till 5 August). Popularity of e-verification soared this year compared to assessment year (AY) 2015-16, when about 3.29 million taxpayers had used this facility till 7 September 2015, the last date that year. For AY 2016-17, the last date for filing ITR was extended to 5 August this year.

 

 

Aadhaar as a means of e-verification also found favour with more people. While about 1 million had used it in 2015, about 1.77 million used Aadhaar this year. Roughly 22.7 million e-returns had been filed till 5 August, "thus, over 35% of taxpayers have already completed the entire process of return submission electronically. The Department encourages all taxpayers who have submitted their ITRs to use the e-verification as an easy alternative to sending their ITR-V form to Centralized Processing Center (CPC), Bengaluru," the release stated.

 

Data, however, also shows that a large number of taxpayers are likely to send physically signed ITR-Vs to the CPC. If you are among them, do track the acknowledgement. Here's how.

 

Verification of ITR-V

ITR-V is an acknowledgement-cum-verification form that needs to be submitted after filing the ITR. It contains a summary of the return filed by the taxpayer, and can be used as proof of income for various purposes. It can be verified either electronically or physically by mailing a signed copy to CPC. There are various processes through which you can e-verify your tax return-using digital signature, Aadhaar, internet banking and even ATMs. On the other hand, offline verification can only be done by downloading the ITR-V, signing it physically and mailing it to the CPC within 120 days from date of uploading the ITR.

 

If the e-verification is not done, or the signed copy of the return is not received by the tax department within the stipulated time, the ITR filed would not be treated as a valid return.

Check your status

If you have sent a signed copy of ITR-V to the CPC, you can check whether it has been received or not. To do so, log on to the e-filing website of the income-tax department:

https://incometaxindiaefiling.gov.in Click on the e-Filing tab and under "Services", you will find the option "ITR-V Receipt Status". Enter your Permanent Account Number (PAN) here and relevant AY for which you want to check the status or e-Filing Acknowledgement Number.

 

If the duly signed ITR-V has been received within the stipulated time limit, it will reflect in the status. If it has not been received, status will not be displayed. If status is not shown, and the time limit of 120 days has not lapsed, you can resend the signed ITR-V or e-verify. Failure to do so will invalidate your return and it will not be processed by the CPC. If you fail to file your return on time, the department can impose penalties.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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

Mirae Asset Great Consumer Fund Online

 

Invest Mirae Asset Great Consumer Fund Online

 

For retail investors, investing in the current market scenario seems to be a tricky exercise. One theme that works not only in the short term but also in the long term is consumption. Among schemes which have sharp focus on consumption theme, Mirae Asset Great Consumer Fund has consistently delivered good returns.

At present, close to 25% of the scheme's portfolio is exposed to banking and financials. One of the chief reasons for this is that these sectors serve as the backbone of the economy by funding growth. The scheme also has reasonably good exposure to other themes under the broad consumption category. One such theme is automobiles. The scheme's fund managers Neelesh Surana, Bharti Sawant and Sumil Agrawal have consistently stuck to the fund house's philosophy of refraining from buying overvalued stocks and buying those firms which have high cash flows and good investment ratios.

Due to this, the scheme has beaten its peers by a wide margin and benchmark indices BSE 200 (65%) and S&P Asia Pacific Emerging BMI Index (35%). The only concern about the scheme is its assets under management at `42 crore. But considering the performance of Mirae Asset as a fund house, the performance of this scheme is expected to sustain given its investment philosophy.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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

Principal Emerging Bluechip Fund Online

Invest Principal Emerging Bluechip Fund Online

 

 

• Achieve long term capital appreciation by investing in equity of Mid and Small Cap companies
• Stock selection focused on stocks of higher growth companies at attractive valuations
• Performance History of more than 7 years
• Actively managed yet benchmark aware portfolio management

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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

10 best Tax Saver Funds for 2016

Invest Tax-Saver Funds Online

 

Here are the top performing equity linked savings schemes, or tax-saving funds. Below are the filters used to arrive at them.

1. Top performers: 5-year annualized returns
2. Category: Equity Linked Savings Scheme (ELSS)
3. Schemes: Open ended
4. Growth plans (dividend plans excluded)
5. Regular plans (direct plans excluded)

Axis Long Term Equity: 19.70%

This fund made its mark in 2010 and 2011. It topped the chart in 2010 with a return of 30% and fell the lowest the very next year when the market tanked. Not only is it consistently a top quartile performer, it is often the best in its category (2010, 2011, 2013).

BNP Paribas Long Term Equity: 16.49%

From 2007 to 2010, the fund consistently underperformed the category average. Anand Shah joined the AMC in 2011 and the change was immediately evident. Since then the fund has delivered above average returns and is now quite a contender in the category.

Reliance Tax Saver (ELSS) Fund: 16.03%

You can expect volatility from this fund but it rewards investors who stay in for the long haul. Its 3-, 5-, and 10-year returns have not disappointed. Volatile performer but does deliver eventually. Currently, a little over half the portfolio is in mid, small and micro caps.

Franklin India Taxshield: 15.15%

This fund delivers by not losing ground when the market tanks. If one looks at the returns over the past decade, it has been known to underperform the category average in good markets. On the flip side, it has fallen much below the category average during bear phases. But, by and large, it is a steady performer. Its below-average performance is never abysmal and it manages to hold its own in a market carnage.

 

Religare Invesco Tax Plan: 14.97%

This one won't deliver an astounding return, but it is definitely stable and dependable. Over the past 9 calendar years, it underperformed the category average just once, that too by just 0.64%.

Birla Sun Life Tax Plan: 14.50%

This fund has a longer history than its sibling mentioned above, but underperformed the category average in its first four years (2007, 2008, 2009, 2010). Since then the fund has improved its performance and did well last year. The fund has a higher cash allocation than the above one but market cap allocations are similar and so are the top holdings in the portfolios.

Birla Sun Life Tax Relief 96: 14.06%

After a searing performance in 2009, the fund faltered the next two years. Since then it has been a fairly consistent performer.

DSP BlackRock Tax Saver: 13.97%

The fund tends to fall more than the category average during down markets (2008, 2011), but otherwise beats the average. However, last year Apoorva Shah, who was responsible for the fund's performance, relinquished fund management responsibility.

ICICI Prudential Long Term Equity: 13.93%

Sporadically, the fund puts up some excellent numbers as it did in 2009 (a return of 112%) and 2012 (37.63%). At other times, it also manages to do fairly well. This multi-cap offering is fairly stable and delivers.

IDFC Tax Advantage: 13.78%

In its track record of 7 years, the fund has periods where it underperforms the category average, that too by a noticeable margin. The fund shot to prominence in 2013 when it was the third best performer in the category. Unfortunately, the very next year it underperformed the category average by 8%. Thus far, the fund has not been consistent but delivers over the long term.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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

Investing Mutual Fund in Child Name and Benefits

 

Mutual Fund Investment to Benefit a Minor Child





You can make investments in MFs in your child's name to meet their long-term goals such as higher education and wedding

1. Can I make a mutual fund investment in the name of a minor child?

Yes, you can make an investment in any scheme of any mutual fund in the name of a minor child. The minor shall be the first and the sole holder in a folio. No joint holder will be al lowed in a folio held by a minor. Guardian in the folio should either be a parent (i.e. father or mother) or a court ap pointed legal guardian.

Minor investments are identified by the date of birth of the investor, so when you make an in vestment you have to provide the child's date of birth and age. You will have to give a copy of age proof namely a copy of the document viz. birth certificate, passport copy , etc. evidencing date of birth of the minor and relation ship of the guardian (natural or legal guardian) with the minor. This needs to be provided while making the first investment or while opening a folio.

2. Can I do an SIP, Systematic Transfer Plan (STP) in the name of a minor?

A mutual fund will register instructions by an investor like SIP / STP in the folio held by a minor.

This instruction will be valid only till the date of the minor attaining majority, even though the instructions may be for a period beyond that date.

3. What happens when the minor child becomes a major or attains 18 years of age?

When a minor becomes a major, all transactions standing instruction, systematic transactions etc. will be suspended. The folio will be frozen for operation by the guardian from the date of minor attaining majority . Prior to the minor attaining majority, the AMC mutual fund will send a notice to unit holder at their registered correspondence address advising the minor to submit, on attaining majority, an application form along with prescribed documents to change the status of the folio from `minor' to `major'. Along with this, KYC (know your customer) acknowledgment letter of unit holder becoming major should also be provided.

4. Can I change the guardian once the investment has been made?

In case of change in the guard ian of a minor, the new guard ian must be a natural guardian (i.e. father or mother) or a court-appointed legal guardian and should submit the requisite documents namely -

(a) No objection certificate (NoC), or consent letter, from existing guardian or court order for new guardian, in case the existing guardian is alive.

(b) KYC acknowledgment letter of the new guardian should also be provided.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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