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FD Investment – Is this investment a good option? This was during the year 2001 – 2002.  Mr. Shankar, Amit’s father retired few weeks back and he was enjoying his retired life. After retirement he got a hefty sum from his savings as PPF & Gratuity. One day, Amit & his father, Shankar was having a conversation – Amit – Dad, I am very happy to see you enjoying your retired life. But I wonder if you could tell me about your savings. What have you done with it? Shankar – Hey Champ, I have kept this money in three different banks as Fixed Deposit for 5 years. I would be getting average 10% interest per annum which would suffice your mother’s and my expenses. Amit – Ohh.. that’s great.. Good plan Dad.. As per the plan, every month’s income was sufficient though the bank was deducting the Tax (TDS) on the interest offered. But Shankar was comfortable as this amount was enough to fulfill the monthly expenses. Days, weeks, months and years passed and in the year 2007, S...

The National Pension System (NPS) is a Central Government scheme that allows individuals to invest during their earning years in order to receive a pension after they have retired. Pension is generally available to those who are employed by the government, but rarely for those who work in the private sector or the unorganised sector. The NPS aims to fill this gap by allowing everyone to prepare for a pension during retirement. Tax benefits of investing in NPS Investments of up to ₹1.5 lakh in the National Pension Scheme qualify for tax deductions under Section 80C. Furthermore, investments of up to ₹50,000 can be further claimed for deductions under Section 80CCD(1B). ** Money wise asset management adviser is available on 09906339912 and 0191 - 2475743

SIPs – Your Ticket for the Journey to Financial Freedom A Systematic Investment Plan or SIP , is a facility offered by Mutual Fund companies that can help you take a step towards financial freedom. They allow you to invest calculated amounts at regular intervals in Mutual Funds, thereby helping you create a pool of wealth for yourself over a period of time. SIPs automate your investments into mutual fund schemes periodically (every month / quarter) – as per your choice; helping you invest in a disciplined manner. You’re monthly investments can start from as minimum as Rs. 500 for each installment, although it is recommended to invest a calculated amount. Here’s why investing regularly in Mutual Funds through an SIP can set you on the path to financial freedom: You gain investment discipline Warren Buffet said this best,  “Don't save what is left after spending; spend what is left after saving”. As your SIP installment is going to hit your account o...

Tax­-saving Mutual Fund What is the meaning of ELSS? ELSS stands for Equity Linked Savings Scheme. These are tax­-saving mutual funds that you can use to  save income tax of up to Rs 1.5 lakh  under Section 80C . ELSS funds have a lock­-in period of 3 years and invest a majority of their portfolio in the stock market. How can I invest in ELSS funds? You can invest in ELSS through the fund company’s website.Investments can be made in lump sum, but the recommended way is through Systematic Investment Plans (SIP) that allow you to average your investment and save you from catching a market peak. Do remember that each SIP is considered to be a fresh investment and every individual SIP carries a lock­-in of 3 years. Which are the best tax­ saving mutual funds? There are a number of ELSS funds in the market but the best­ performing ones that are our recommendations are ICICI Prudential Tax Plan, Birla Sun Life Tax Relief 96 and Axis Long Term Equity. Are ELSS funds ...

Different Types of Mutual Funds in India MUTUAL FUND INDUSTRY   When it comes to investment, mutual funds offer a variety of options to suit the risk appetite and return expectation of every investor. There are different types of mutual funds which are categorized under different classes and sub-classes. Before you take a plunge in the mutual fund world, it`s important to understand them. Equity Funds : Equity funds are composed of shares of companies, as underlying asset. These kinds of funds are aggressive in nature as they not only give superior yield amongst all other market instruments, but are also exposed to high risk owing to market volatility. Usually, investors with a high appetite for returns and risk, invest in these funds.  Equity funds are further divided into large cap funds, mid/small cap funds, diversified funds, sectoral funds, index funds and thematic/specialty funds: *          Large Cap fun...

Sometimes Investors are confused  what is their type?  To decide your risk profile you can fill many questioners available on internet. Example http://www.moneycontrol.com/personal-finance/tools/risk-assessment-tools.html And once you have decided, then you need to consult your Financial advisor for your plans, goals and funds best suited for you. Widely there are 3 types of investors - aggressive, moderate and conservative. Aggressive Portfolio Example An aggressive portfolio is appropriate for an investor with a high  risk tolerance  and a time horizon longer than 10 years. Aggressive investors are willing to accept periods of extreme market  volatility  (ups and downs in account value) in exchange for the possibility of receiving high relative returns that outpace inflation by a wide margin. Aggressive Portfolio Asset Allocation: 85% Stocks, 15% Bonds 30% Large-cap stock (Index) 15% Mid-cap stock 15% Small-cap stock 25% Emerging ...