Diversify Investments

 

Diversify Investments





Follow this golden rule of investment to avoid the risks of concentration.

 

Given the unmitigated obsession Indians have for real estate and gold, it's a wonder that they spare any thought or funds for other assets. So far, these investments have stood them in good stead, but the developments of the past few years have turned many of these into shibboleths.

Several investing biases are family legacies and should not be taken at face value. For instance, you may be conditioned by your father's view on stocks as a bad option just because he suffered a loss once. Don't follow such claims blindly and take a decision based on your circumstances, needs and research.

Diversification is key to a healthy portfolio because it not only helps protect your assets but also ensures their growth. Since all asset classes do not move in the same direction at all times and you can never predict how a particular asset will perform, diversifying mitigates the risk by spreading it. Besides, growth is essential for achieving goals and investing only in fixed income instruments like fixed deposits or the PPF, may not help you beat inflation, letting your purchasing power fall over the long term. You must invest in highly productive options, such as stocks, not just fixed deposits

However, it is also important not to fall into the trap of over-diversification. If you have a heavy stock portfolio or a SIPs in various mutual funds that invest in similar stocks, you will not reap the benefits of diversification.

IF YOU DON'T, YOU SUFFER FROM FAMILIARITY BIAS

If you are obsessive about a particular asset, say real estate or gold, and refuse to consider any other investment option, you suffer from this bias. This is because you feel secure with that asset despite the risk of putting all eggs in one basket.

HOW TO OVERCOME IT:

A methodical and holistic approach to your finances is possibly the only way to get over this bias. Frame your goals and invest in assets that help you reach these. Talk to a planner about the options in the market and calculate the optimal allocation to each.

 

 

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

 

1.       ICICI Prudential Tax Plan

2.       Reliance Tax Saver (ELSS) Fund

3.       HDFC TaxSaver

4.       DSP BlackRock Tax Saver Fund

5.       Religare Tax Plan

6.       Franklin India TaxShield

7.       Canara Robeco Equity Tax Saver

8.       IDFC Tax Advantage (ELSS) Fund

9.       Axis Tax Saver Fund

10.    BNP Paribas Long Term Equity Fund

 

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

 

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

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Make an Investing PLAN

Make an Investing PLAN





Making a budget, sticking to it and framing goals are the essential components of formulating a plan.

 

"By failing to prepare, you are preparing to fail,' said Benjamin Franklin. Planning is clearly the unstated commonality among winners and the first step to formulating a successful strategy. Its two vital components are budgeting and framing goals. Unless you know your current location, you will never understand where you are headed. Writing down income and expenses will tell you how much you can save to build your future and the way you can increase this amount by cutting down on discretionary expenses.

Budgeting helped me undertake course correction in order to achieve my goals. It also enabled me to understand many things, such as the difference between investment and expense, and the necessity to reduce expenses if I was overshooting them. He began planning only in his 30s, but has caught up since. In fact, according to the Economictimes.com survey, as many as 49% of the respondents started planning in their 30s, but it may not be too bad a place to start if you stay on course subsequently.

The next critical stop is framing of goals. Don't just think about them without specifying the exact time frame and amount needed to accomplish each goal. This is exactly what 39% of the survey respondents do. Write down all your goals, splitting them into short-term (buying a car or taking a vacation), medium-term (purchasing a house) and long-term (saving for children's marriages). Then assign a value to each. My short-term goal was ensuring that by the time the month came to an end, my corpus didn't, and I wasn't forced to put off my purchases because of this.

The final step is to start saving for each goal by investing in the right instruments as per your risk appetite and time horizon.

If You Don't, You Suffer From Temporal Construal

You perceive distant and short-term events in a different way. The long-term goals are seen as abstract and with more optimism than the closer ones. So, you have a vague image of, say, retirement or children's marriage 20-30 years from now, while closer problems get more attention.

HOW TO OVERCOME IT:

Write down, not only your budget, but also the goals. Specify the exact time period for achieving these and the inflation-adjusted future value of goals. To stick to these, follow two rules:

a) Save first, spend later.

b) Automate your savings.

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Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

1. ICICI Prudential Tax Plan

2. Reliance Tax Saver (ELSS) Fund

3. HDFC TaxSaver

4. DSP BlackRock Tax Saver Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. Canara Robeco Equity Tax Saver

8. IDFC Tax Advantage (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund

Invest in Tax Saver Mutual Funds -

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

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PrajnaCapital [at] Gmail [dot] Com

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Leave a missed Call on 94 8300 8300

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Invest Mutual Funds Online

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SBI Long Term Advantage Fund Series I - ELSS Tax Saving Fund

 

SBI Long Term Advantage Fund-Series I

SBI Mutual Fund has launched SBI Long Term Advantage Fund-Series I, an ELSS fund eligible for tax benefits under Section 80C. This is a 10-year closed-end fund. The NFO closes on 31 January.

 

 

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

 

1.       ICICI Prudential Tax Plan

2.       Reliance Tax Saver (ELSS) Fund

3.       HDFC TaxSaver

4.       DSP BlackRock Tax Saver Fund

5.       Religare Tax Plan

6.       Franklin India TaxShield

7.       Canara Robeco Equity Tax Saver

8.       IDFC Tax Advantage (ELSS) Fund

9.       Axis Tax Saver Fund

10.    BNP Paribas Long Term Equity Fund

 

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

 

Invest in 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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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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Avoid Bad Debts In Investing

 

Avoid Bad Debts In Investing





To plug a hole in your savings, beware of these loans.

 

Living in the present is an infinitely prudent outlook to life, but when it comes to your finances, you may need to alter this vision. To secure your future, it is important to learn the art of delaying gratification and considering the impact of your actions.

This is the reason debts are an anathema to most successful people. While some loans, such as those for home and car, are virtually inevitable, the financially prudent prefer to be rid of these at the earliest. I had taken a home loan and two car loans, but prepaid all several years before their respective tenures. Like him, Samarth Sharma has also prepaid his loans. Even the so-called good loans may be a bad idea if you can't afford them. Beside, stretching loan tenures is not advisable as it balloons the interest cost despite the tax advantage that some of them offer. So, it is best to prepay at the earliest and avoid unsecured loans at all cost.

The `bad debts' typically include personal loans and credit card payments. These can erode your financial worth in the guise of instant gratification (see graphic) because of their high interest rates and charges--36-48% per annum for credit cards and 20-24% for personal loans. So make sure you never roll over your credit and avoid paying the minimum due amount. Take a loan against your existing investments instead of a personal loan, if you must.

IF YOU DON'T, YOU SUFFER FROM SELF-CONTROL BIAS

As the name suggests, you lack discipline, which is the reason you spend excessively on your credit card or overlook the long term goals in favour of your current needs and pleasures. You prefer smaller gains now to bigger pay-offs in the future.

HOW TO OVERCOME IT:

The best way to conquer this bias is to take the decision out of your hands. So if credit card is your weakness, get rid of it. If you cannot save for long-term goals, automate payments so that you save before spending. It will also help to strictly follow a budget by writing down your expenses, savings as well as investments.

 

 

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

 

1.       ICICI Prudential Tax Plan

2.       Reliance Tax Saver (ELSS) Fund

3.       HDFC TaxSaver

4.       DSP BlackRock Tax Saver Fund

5.       Religare Tax Plan

6.       Franklin India TaxShield

7.       Canara Robeco Equity Tax Saver

8.       IDFC Tax Advantage (ELSS) Fund

9.       Axis Tax Saver Fund

10.    BNP Paribas Long Term Equity Fund

 

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

 

Invest in 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

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

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

Canara Robeco Emerging Equities exit load

 

Canara Robeco Mutual Fund has revised the exit load of Canara Robeco Emerging Equities to 1 per cent for redemption / switching out units within 18 months. Currently, it is 1 per cent for redemption / switching out units within 1 year.

 

The effective date is January 01, 2015.

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Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

1. ICICI Prudential Tax Plan

2. Reliance Tax Saver (ELSS) Fund

3. HDFC TaxSaver

4. DSP BlackRock Tax Saver Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. Canara Robeco Equity Tax Saver

8. IDFC Tax Advantage (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund

Invest in 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

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

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

Top Tax Saver Mutual Funds for 2015

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

 

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

 

1.       ICICI Prudential Tax Plan

2.       Reliance Tax Saver (ELSS) Fund

3.       HDFC TaxSaver

4.       DSP BlackRock Tax Saver Fund

5.       Religare Tax Plan

6.       Franklin India TaxShield

7.       Canara Robeco Equity Tax Saver

8.       IDFC Tax Advantage (ELSS) Fund

9.       Axis Tax Saver Fund

10.    BNP Paribas Long Term Equity Fund

 

Invest in Tax Saver Mutual Funds -

Invest Online

Download Application Forms

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

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

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

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

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms