Goal Based Investing with Mutual Funds





Instead of randomly investing in a number of mutual fund schemes, investment advisors suggest you select funds, keeping your goals in mind.

1. What is goal-based financial investing?

Every individual has several life goals - both long term and short term. Investing in a planned manner to achieve these goals is called goal-based investing. For example, if you want to plan a foreign holiday with your family in mid-2018, which is about 18 months away , it is a short-term goal. On the other hand, saving for the higher education of your child who is five now is a long-term goal.

2. How does one plan for goals?

The first step is identifying the goal for which you wish to in vest and assessing the time you have to reach it. Once that is done, it is important to find how much the goal costs today . Add a reasonable amount of inflation to that, and then you would know what the goal would cost you in the year you wish to accomplish it. The next step would be to understand how much you can save or invest for that goal. You could then use the systematic investment plan (SIP) or go for a lumpsum investment, or even a combination of both, to achieve that goal.

3. How can you use mutual funds to meet the goals?

First, identify funds based on your risk profile. For example, if you plan for a foreign holiday 18 months from now, which will cost you about `5 lakh, debt funds (ultra short-term or dynamic bond funds) will be ideal to reach that goal. Since it is a near-term goal and the time is less than three years, investment advisors suggest you should go for a combination of debt oriented funds, which could give you anything between 7% and 9%. Do your math and decide whether you wish to opt for a lump-sum investment or want to stagger it. Also keep the tax implications in mind, as debt investments for less than three years will attract short-term capital gains tax. Similarly , for your child's higher education, which would be more than 10 years away , you could invest in equity mutual funds. If you do an SIP of Rs 5,000 every month for 15 years, at a 12% return you could accumulate Rs 23.79 lakh.

4. What are the benefits of goalbased investing?

Goal based financial planning helps you invest in a systematic and disciplined manner to achieve your goals. It helps you remain focused and unaffected by the short term volatility in the equity markets.

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 2017 - 2018

Best 10 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. 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 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

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For further information contact SaveTaxGetRich on 94 8300 8300

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DSP BlackRock 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

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MF SIPs for SHORT TERM GOALS

MEETING THE COSTS FOR A FAMILY VACATION, BUYING A CAR IN A COUPLE OF YEARS COULD BE EASY WITH SIPS IN DEBT AND LIQUID FUNDS

When one talks about starting a systematic investment plan (SIP) in a mutual fund scheme, one usually has in mind a disciplined investing approach with a long term goal in mind.

However, advances in banking technology and the MF industry's search for new services for its investors are now making it possible for investors to save and investment through the SIP route to meet their short term and medium term goals as well. For example, one wants to go for a family vacation and needs to plan for the cost a year or two in advance. For that one could set up an SIP in a accrual fund or if the fund house allows, then even in a ultra short term fund or a liquid fund.





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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Mutual Fund SIP Returns for 15 years

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 2017 - 2018

Best 10 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. 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 2017 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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NAV of Mutual Fund Scheme





First time investors into mutual funds are often confused with the term Net Asset Value (NAV) wondering whether they should be buying a fund with higher or lower NAV.

Is it better to buy a fund which has a lower NAV?

Investing in mutual funds is different from stocks. When you buy mutual fund units the NAV , is calculated on the basis of the current market price all the as sets that the mutual fund owns. It represents the fund's intrinsic worth. Financial planners suggest it is irrelevant how high or low the NAV is. If the amount of your investment re mains unchanged, and two comparable funds have identical portfolios, a low NAV would result in the investor being allocated a higher number of units held and consequently a high NAV would mean lower number of units allot ted. In both the case, the value of your investment, would be identical. Going ahead, the stocks present in a portfolio and their subsequent movement deter mine returns from a fund, making the value of the NAV immaterial.

Similarly when one re deems or sells those units, the return will be the same as that of another scheme, which has performed similarly .

Is it better to buy a new fund offer (NFO) priced at Rs10, and schemes with NAV below Rs10?

In case of a new fund offer (NFO), understand if the prod uct on offer matches your risk profile, what the mandate of the scheme is, the pedigree of the fund house, its past performance and the experience of the fund manager.Similarly it is not wise to invest in an existing mutual fund scheme just because it is available below Rs10.Evaluate if it fits into your portfolio and understand what has gone wrong for the scheme to be below Rs 10 before investing.

NAVs of direct plans are higher than that of regular plans. What should you do?

NAVs of direct plans will always be higher than that of regular plans as these schemes do not pay a commission or fee to distributors, and consequently have a lower expense ratio. Understand if direct plans are meant for you and if you can handle your investments without the support of distributors or advisors. Buying into a direct plan means you have to choose your fund yourself, understand if it fits into your portfolio, do the entire paperwork related to the transaction and monitor it on your own on a regular basis.

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 2017 - 2018

Best 10 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. 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 2017 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 Balanced Fund

ICICI Prudential Balanced Fund is A balanced scheme suits equity investors who are particularly concerned about insulating their portfolio from extreme volatility of stock markets. A balanced scheme gives investors the best of both the worlds -equity and debt. Among the balanced schemes, ICICI Pru Balanced Fund has been a distinguished performer.

Fund managers Sankaran Naren, Manish Banthia and Atul Patel manage the scheme. On the equity side, the scheme is known for its contrarian investment strategy. This is a key thing that distinguishes the scheme from other balanced funds. The fund managers are not interested in employing inconsistent stockselection strategy and show superior returns. The scheme has a good mix of large-sized established companies on the equity side. Prominent companies in sectors such as telecommunications, power and IT, which may seem out of favour at present, may see a turnaround in earnings cycle in the next two years are the ones which have attracted the attention of the fund managers. On the debt side, the scheme's portfolio consists of government securities and bonds with more than AA ratings, which provides reasonably good assurance to investors about the safety of their capital.

The scheme has been a top performer and has delivered 16-20% returns in the past threeand five-year periods, though its category of funds has given 14 and 16% returns during the same period.

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

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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Call us on 94 8300 8300

 

Digital Locker

Best SIP Funds Online 

Prime Minister Narendra Modi on July 1 will launch the digital locker facility that will help citizens digitally store their important documents, such as PAN card, passport, mark sheets and degree certificates.

Here are five things you need to know about Digital Locker or DigiLocker:

1. Digital Locker will provide secure access to government-issued documents. It uses authenticity services provided by Aadhaar.

2. Digital Locker is aimed at eliminating the use of physical documents and enables sharing of verified electronic documents across government agencies.

3. Digital Locker provides a dedicated personal e-storage space to citizens, linked to their Aadhaar numbers.

4. Digital Locker will reduce the administrative overheads of government departments and agencies created due to paper work. It will also make it easy for Indian citizens to receive services by saving time and effort as their documents will now be available anytime, anywhere and can be shared electronically.

5. To sign up for your Digital Locker, you need your Aadhaar number and a mobile number linked to that Aadhaar number. To sign up, visit           

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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Open Interest and Show Stock Trends





Stock market initiates with an interest in derivatives will often come across the term open interest. This is a very useful tool in understanding, along with price data, whether a market has topped or bottomed, among other things.

1. What is open interest?

An outstanding buy or sell position on a stock or index futures or options contract.

A trader can gather cues from open interest (OI) to spot potential trends in a stock or in an index. Read along with price data it's a useful data for traders who can interpret whether a trend is bullish or bearish. But often it could mislead those wet behind the ears.

2. Why is it important?

Higher the OI, deeper the market. High volumes along with high OI indicates greater hedger and trader participation on a stock futures or options counter. Conversely , high volumes and low OI means more speculative interest in a counter. Because OI is high a trader can gauge whether short-term trend in a counter is bullish or bearish.

3. How's that?

Rising OI accompanied by rising price is indicative of bullish trend. If OI remains flat after substantial price rise OI it indicates that market is forming a top. Similarly , rising OI but falling price indicates bearish trend. When OI does not rise much after a sharp fall in prices it indicates formation of a bottom and trend reversal.

4. Why can it mislead, especially during result season?

Markets discount. If a company is expected to perform poorly prior to results the stock will fall and open interest rises. If one looks at the options chain to gauge, the person will see a huge sale of call options and a relatively lower sale of put options. Higher call OI than put OI will probably make the person inclined to buy a call, thinking that the stock will rise post result. But actually the seller had sold or written more calls knowing downside chances are greater or any possible upside will be capped. So, the buyer will probably be on the wrong side. Therefore, it is important to take an informed decision and trade with strict stop losses in place. When writers feel a stock will rise, they sell puts and partly finance their own purchase of calls with premia received from buyers.

5. What more can happen?

Sometimes the buyer might see many calls being written and so, interpret that as meaning stock will face downside pressure and buy a put. But post poor results, if company gives positive guidance for quarters ahead, the stock could surge despite posting poor results and cause a loss to the put buyer as call writers start covering their shorts. That is open interest of calls begin to fall as price rises.

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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