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Wednesday, 20 July 2016

Equity Linked Saving Scheme (ELSS)- Overview

Today in Engineer's World, we are discussing a topic of Finance in very easy way. Posted By - +Nitin Gautam  +LIVE VIAR +ASP.NET SOLUTIONS 

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Previous - Top Mutual Funds

What is Equity linked saving scheme(ELSS)?

ELSS is the part of Mutual Fund Investment. Equity Linked Saving Scheme(ELSS) directed as per the ELSS mutual fund guidelines issued by CBDT under section 80C of the Income Tax Act 1961. The purpose of recommending ELSS is to encourage investments in equities by providing tax rebate or exemption.
The maximum Tax amount up to Rs. 1.5 Lakhs (for the current financial Year), is to be exempted by investing in ELSS scheme.

Investors who invest in ELSS funds are investing in a fund where minimum part of their investment means 80% of the invested amount can be in equities and equity related securities. If we are comparing the return on investment(ROI), ELSS gives the higher performance than other tax saving instrument.
ELSS investments come with a locking period of three years, where the long-term capital gains and dividends are tax-free.

The lock in period is only of three years making it the best option with the shortest lock-in period in tax saving options/scheme.

Benefits OF ELSS Investment

1. Tax exemption: Investor by investing Rs. 1.5 Lakhs (current financial Year) in ELSS mutual funds are eligible for tax exemption under SECTION 80C.

2. Minimum Lock in period: ELSS mutual funds come with the lock-in period of three years. ELSS has the least lock-in period compared too other 80C options.

3.Tax-free Returns and dividends: It is the fact that there are the limited tax saving instruments like PPF, ELSS, ULIP and tax-free bonds. Each instrument has different benefits with some limitations.  Corporate Fixed Deposit, NSC, Bank FD, Post office scheme, etc. all these tax saving options’ returns are taxable based on individual tax slab that means whatever the interest you get in that year will be club in income slab. Let's have a look on the interest earn by Public Provident Fund(PPF); Returns are tax-free, but with a limitation that, there is 15-year lock-in period, means you cannot withdraw (apart from certain exemptions to withdraw in between). The best tax saving investment option that provides tax-free returns and high return on investment for a short period is ELSS Mutual funds.

4.Growth with Good Returns: Since an ELSS mutual fund invests in equity related instruments, so these schemes would help you to grow your invested money with better returns when the stock market grows over a period.

Top ELSS Mutual Fund (As on 21th July 2016)

1. Axis long term Equity(G): 
1 Year return- 3.5%, 3 Year return- 28.6%, 5 Year return- 20.3%.

2. Birla Sun life Tax Relief 96(G): 
 1 Year return- 4.8%, 3 Year return- 25.9%, 5 Year return- 16.0%.

3. Franklin India tax Shield(G): 
1 Year return- 4.0% Year return- 24.4%, 5 Year return- 16.8%.

4. Birla SL Tax Plan(G): 
1 Year return- 3.9%, 3 Year return- 21.5%, 5 Year return-   12.0%,

5. BNP Paribas long term Equity Fund(G): 
1 Year return- -1.7%, 3 Year return- 23.0%, 5 Year return- 16.7%. 

6. HDFC Tax Saver Fund(G): 
 1 Year return- 0.4%, 3 Year return- 21.5%, 5 Year return- 11.4%.



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Tuesday, 19 July 2016

Top Mutual Funds


Today in Engineer's World, we are discussing a topic of Finance in very easy way. Posted By - +Nitin Gautam  +LIVE VIAR +ASP.NET SOLUTIONS 

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Top Mutual Fund

Today we compare Thematic Infrastructure Mutual Fund with their yearly returns. We daily update returns of the best mutual fund in industry. As we earlier discuss Small and mid-cap mutual fund and Pure Large Cap mutual fund. 

Mutual funds are among the best favourites with all investor. Today Investing in the mutual fund is highly recommended by direct companies or brokers. As said, "Start Investing early for better wealth creation."
                                                                                                                  
Top Pure Small & Mid Cap Mutual Fund (As on 29/12/2016)

$. DSP BR Micro cap fund -regular(G): 
1 Year return- 16.9%, 3 Year return- 41.0%, 5 Year return- 31.8%.

$. Franklin India smaller companies Fund(G):
1 Year return- 16.8%, 3 Year return- 34.9%, 5 Year return-   31.2%,

$. SBI small and mid-cap fund- regular(G): 
1 Year return- 6.2%, 3 Year return- 38.0%, 5 Year return-   23.5%,

$. Reliance small cap fund(G): 
1 Year return- 11.5%, 3 Year return- 34.9%, 5 Year return- 30.7%. 

$. ICICI pru value discovery fund(G): 
1 Year return- 9.2%, 3 Year return- 24.9%, 5 Year return- 23.8%.

$. Mirae Asset Emerging Bluechip fund(G): 
1 Year return- 16.7%, 3 Year return- 33.7%, 5 Year return- 30.0%.



Top Thematic Infrastructure Mutual Fund (As on 29/12/2016)

A. Franklin Build India Fund(G): 
1 Year return- 14.8%, 3 Year return- 30.1%, 5 Year return- 26.2%.

B. Kotak Infrastructure & Economic Reform-Standard(G):
1 Year return- 14.7%, 3 Year return- 26.9%, 5 Year return-  16.6%,


Top Pure Large Cap Mutual Fund (As on 29/12/2016)

1. SBI Blue chip fund(G): 
1 Year return- 9.6%, 3 Year return- 19.3%, 5 Year return- 19.8%.

2. ICICI Pru Top 100 Fund(G): 
1 Year return- 14.7%, 3 Year return- 16.0%, 5 Year return- 16.7%.

3. Birla SL Frontline Equity Fund(G): 
1 Year return- 11.9%, 3 Year return- 17.2%, 5 Year return-   18.3%,

4. BNP Paribas Equity Fund(G): 
1 Year return- -0.9%, 3 Year return- 14.6%, 5 Year return- 15.8%. 

5. Franklin India Bluechip Fund(G): 
1 Year return- 11.6%, 3 Year return- 15.3%, 5 Year return- 14.4%.

6. Franklin India Prima Plus Fund(G): 
1 Year return- 9.4%, 3 Year return- 20.8%, 5 Year return- 18.8%.


7. L&T India large cap fund(G): 
1 Year return- 5.9%, 3 Year return- 27.7%, 5 Year return- 28.5%.





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Saturday, 16 July 2016

New Fund Offer (NFOs)- Current and upcoming offers

Today in Engineer's World, we are discussing a topic of Finance in very easy way. Posted By - +Nitin Gautam  +LIVE VIAR +ASP.NET SOLUTIONS 

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New Fund Offer (NFOs)- Current and upcoming offers

NFOs (New Fund Offering/ New Fund Offer)

NFOs is a mutual fund, and they offered when a new mutual fund launched and offered to the public before it appears up to a daily transaction. For understanding better NFO’s can compared with IOP’s (Initial Public Offering) as in the case of shares trading, Traders buy the stock before it lists.

NFO’s actively managed funds, i.e., where the fund manager applies his/her strategy for the market to beat the market.

1.When a Mutual Fund scheme first available for the investment it is called an NFO.
2.Investors have opportunities to buy fund Unit at Face Value during NFO.

NFO Calendar - Upcoming offers: -

NFO issued in the month of July 2016. Invest in NFO and avail the opportunities.

S No.
Fund Name
Category
Time Frame
1.
HDFC FMP 1161D July 2016 (1)
FMP
19/7/16 - 26/7/16
2.
UTI FTIF Series XXV – I
FMP
4/7/16 - 18/7/16
3.
Kotak FMP Series 196
FMP
14/7/16 - 18/7/16
4
ICICI Pru. FMP- Series 79 - 1113 Days Plan G
FMP
14/7/16 - 19/7/16
5.
Reliance Dual Advantage FTF - IX Plan E
CPOF
18/7/16 - 31/7/16
6.
UTI Dual Advantage FTF - Series III – III
CPOF
13/7/16 - 27/7/16
7.
SBI Dual Advantage Fund - Series XVI
CPOF
1/7/16 - 15/7/16

What is Open-ended fund ended fund?

1.No fixed maturity
2.Entry or exit permitted at any time, even after the NFO
3.Ongoing entry and exit imply that Unit Capital changes

What is Close-ended Fund ended fund?

1.Fixed maturity
2.Investors can buy units from the fund only during NFO
3.Once NFO is closed, scheme gets listed to allow transactions through the stock exchange
4.Listing is compulsory

Important points for New Fund Offer: -

1. Units are offered to investors for the first time through an NFO.

2. Three important dates are: -

A. NFO Open date – date from which investors can invest in the NFO from which investors can invest in the NFO.

B. NFO Close date – Date to which investors can invest in the NFO which investors can invest in the NFO.

C. Scheme Re-Opening date – applicable only to open-ended funds; date from which investors can offer their units for re-purchase to the scheme or buy new units; sale and repurchase prices are announced from Re-Opening date.

3. Other than ELSS, NFOs can remain open for maximum of 15 days.

4. Allotment of units or refund of money should be done within five business days of closure of NFO.

5. Open-ended schemes have to re-open for sale/repurchase
within five business/working days of the allotment.

Allocation of Units: -

1. During NFO-
 No. of units = Invested Amount / Rs. Invested Amount / Rs. 10

2. Ongoing Sales-
 No. of units = Invested Amount / NAV (No Entry Load)


Advantages of NFOs

i. Brings us new offerings that are not currently available in the market.

ii. A close-ended fund where the investor can’t redeem the amount whenever he wants instead, he needs to keep that amount for the period of time as per NFO declaration.

Disadvantages of NFOs

i. NFO’s are new offerings so difficult to analyse the future of the fund.

ii. Market charges and Initial expenses are more in NFO.

iii. Less of diversification as mostly NFO’s are sector specific



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