Thursday, September 30, 2010

BEST TAX SAVING PLAN: SBI MAGNUM TAX GAIN SCHEME 93 GROTH


1.I choose which scheme “which have largest fund size” because I believe scheme with largest fund size is market leader and fund manager have more money to diversified its portfolio to give stable returns for his investors so it is the reason that I recommended SBI MAGNUM TAX GAIN SCHEME 93 GROTH in ELSS.
2. Tax saving mutual funds, also known as Equity Linked Savings Schemes (ELSS). Investments in ELSS funds are qualified for deduction from taxable income as per income tax law.
3. Tax saving mutual funds usually has a lock in period of 3 years. So keep this point in mind in my policy I like to make a SIP in tax saving fund and after three year make a SWP for just ½ of average unit.
4. I clarify point 3 in my separate coming article “HOW TO BUILD SYASTAMATICE ASSETS BY ELSS”
5. SBI MAGNUM TAX GAIN SCHEME 93 GROTH has a fund size of 5681.65 cr. And second number is HDFC TAX SAVER GROWTH PLAN with fund size of 2715.42 cr. (as on 31 Aug 2010, fund size is changeable time to time)
6. this fund give 14.86 % annualized return since incorporation means 1993 and last 5 year give 18.20 % return and last 1 year give 21.94 % return.
7. this is not an investment advice ,this is only my view about this fund.

Saturday, September 11, 2010

WHY INVEST IN FIXED MATURTY PLANS (FMPs)?

WHY INVEST IN FIXED MATURTY PLANS (FMPs)?
1.most of investors like to invest in FMPs because they think FMP are good alternate of fixed deposits
2. FMPs are schemes that invest in fixed income instruments, like, commercial papers, money market instruments, corporate bonds, debentures of company’s certificate of deposits or securities issued by government of India and fixed deposits.
3. The basic objective of a FMP is to generate steady 6-8 % returns over a fixed period. So investors are assured of returns if they stay invested in these products till maturity.
4. FMPs have lower risk of capital loss due to their investment in debt and money market instruments.
5. FMPs are also listed on the stock exchanges and can be sold prior to maturity as well. However, liquidity of these schemes could pose a problem while trying to exit before maturity.
6. FMP give only 6-8 % return and there return is taxable also so I think it is much better to hold cash in saving accounts and avoid FMP because if you hold cash in saving accounts then you got 3.5 % interest with full liquidity so I do not like to invest in FMP.

Saturday, September 4, 2010

VIEW ON RELIANCE SMALL CAP FUND NFO


• Reliance mutual fund launch a new scheme name reliance small cap fund benchmark for this fund is BSE small cap index.
• NFO is open till 9 September 2010.
• In my view RELIANCE MUTUAL FUND is a fund house with great brand name of reliance so small investor easily attracts with NFO so no doubt that NFO collect huge fund in this scheme.
• Last year in same time reliance mutual fund launch reliance infrastructure fund so now we check latest NAV of reliance infrastructure fund
• Click this link for check NAV of reliance infrastructure fund
http://www.reliancemutual.com/NAV/NAV.aspx
We found NAV 11.70 so reliance infrastructure fund give near about 14 % return in one year and nifty or sensex give near about 20 % return in a year so this fund clear underperform the market.
• I am not against to invest in reliance small cap fund , but I think we should buy it or make a SIP in reliance small cap fund in correction when this fund NAV may be fall below 10.
• if this happen then I inform you in this blog

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