Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Buy Gold Mutual Funds
Leave a missed Call on
94 8300 8300
At the very basic, wealth creation refers to the process of deploying your money in a manner that there is real-value accretion over the long run. In other words, you should deploy your savings in such a way that the rate of return on your money beats the rate of inflation.
For example, today you spend Rs 100 to buy Product A. Now the rate of inflation in the economy is, say, 8% per annum. So we can assume that one year from now, the cost of the same Product A will be Rs 108. So to create real value, you should deploy your Rs 100 today in such a way and in such products that after a year, after paying for taxes if any, you should still have more than Rs 108. If your savings after one year is just Rs 108, you have not created any value, while if the value of your savings is less than Rs 108, you have actually destroyed value in real terms.
The idea here is to invest in such a way that your purchasing power is always more than what the rate of inflation is able to destroy. It is true that you may not be able to beat the rate of inflation in the short term, like in every year. But the aim should be to beat the inflation rate over the long term, that is over 10, 15, 20 years.
In India, over the past several years, stocks, gold and real estate have beaten the rate of inflation, while instruments like bank fixed and bonds have not been able to do that in any significant way. So financial planners advise their clients, who are not very financially savvy, to take the equities route for wealth creation with some parts of the money going into debt, gold and real estate.
The illiquidity factor attached to real estate — which is your not being able to sell your property exactly when you need the money and also at the right price — is one of the most limiting factors for any decision to invest in this investment product. And for investing in equity and debt, financial planners advise their clients to take the mutual fund route.
For example, in the last five years, a portfolio of five mutual fund schemes — consisting of four equity schemes investing in large-, medium- and small-cap stocks and one debt scheme — returned about 12.70% on a compounded annual basis. So a systematic investment plan (SIP) of Rs 10,000 every month for five years in these funds amounted to about Rs 8.3 lakh. In comparison, if the same Rs 10,000 was put in a monthly recurring deposit for five years, the total corpus would be Rs 7.44 lakh, the note shows.
And this return in the mutual funds came despite the fact that the stock market has mostly remained flat on a point-to-point basis over this five-year period. The important thing here is to invest regularly and stay away from reacting to market volatility. Undisputedly, mutual funds are a great wealth-creation vehicle.
To follow this route, financial planners and advisers say that the SIP route to invest in mutual funds is the best way: It inculcates discipline in one’s approach to investment, helps the investor negotiate volatility and has a strong potential to create wealth in the long run.
For further information contact Prajna Capitalon 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
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap FundsInvest Online
- DSP BlackRock MicroCap Fund
2.Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
Posts
0 comments:
Post a Comment