8 things you must adopt for strengthening your MF portfolio

Nowadays, throughout the world, the condition of the domestic equity markets an unfavorable phase has been continued for investors. Even a downfall has been faced by investors of mutual funds that have also been a negative impact over domestic and international markets. The fretting in the portfolio value has been noticed in the comparison with last year’s standard indices, whereas some other investors are facing some giant losses continuously for past three years. However, they are still unable to hunt the reason of losses in the value of their portfolios. Does it the reason for investing in the wrong asset category?

Well, in the coming 3 to 5 minutes you would be able to learn 8 easy steps for strengthening your mutual fund portfolio.

We have observations that equity market can only give gains to those who participate in them, those who are just standing aside and are making an observation of wealthy people can never achieve their goals. We always encourage our clients to initiate saving habits in you. SIP mode is a good option for new investors to start investing. The creation of long term wealth can only be accessible if you make investments in diversified and strong backed systems.

If you have already an investment in mutual funds then you need to take some vital steps to make your portfolio strong and effective.

  1. Diversified- It is vital to have enough diversification within unpredictable market. Having investments in a diversified market means you are free from buying multiple different schemes because the same job will be done here automatically. You must seek diversification in terms of asset types as well as within schemes. People who invested their money in debt and gold assets together have experienced good returns as compare to those who invested in a single asset.
  1. Allocation of assets- The allocation of assets is totally relay upon your risk appetite, goals and time period. You must allocate your assets according to these factors in order to get benchmark results. It is also good to make a periodical review of assets and if you find anything wrong in the comparison with predetermined allocations you must re-allocate them.
  1. similar nature and thematic funds should be avoid- For effective results make sure not to invest in sectors and thematic funds because in case of unfavorable condition they will cost you. However, it is better to opt for multiple schemes with different investment styles and goals rather than choosing similar nature funds.
  1. Avoid NFO’s- NFO’s have not any tracked record although has launched several times therefore it is important to avoid them.
  1. Eliminate the losers from your portfolio- Keep a close eye over the performance of your funds and when you find a fund with under performance from more than 2 times it is important to eliminate it because a single worst fund can affect your overall portfolio.
  1. Add long term- When you make new investments it is better to opt for scheme having long term returns of about 3 to 5 years.
  1. Add gold and debt must to your portfolio– Gold and debt have a good performance record for the past 3 to 5 years. Therefore, never rely upon totally on equity funds. Gold ETFs and debt funds have the ability to strengthen your portfolio.
  1. Make consultation– People who are new to the field of investment or those having any difficulties related to fund selection, portfolio maintenance should consult an expert. Experts are skilled and experienced to guide you in any type of situation.

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Conclusion
The portfolio needs a little care and periodical analysis because only then you would be able to find weaknesses and can take corrective steps for its strengthening.

Guidelines for opening a saving account with the States Bank of India

India is a South Asian country with a lot of business and working options for the residents of Indians either citizens or outsiders. States Bank of India is a leading financial intermediary throughout the country. The bank offers lots of different accounts including saving accounts with a smart rate of interest, 3.5% per year. Potential customers who want to open a saving account in State Bank of India are recommended to visit the branch personally, however, online services and ATM cards are also offered for convenience. Before we start you can also review our old article about Open a Savings Bank Account With SBI we are just updating old article with new formats.

Guidelines

  1. Check out the nearest branch of the Bank of India to you by visiting its official website.
  2. Call or personally visit the branch of the State Bank of India where you want to open a saving account. Things that are vital for opening an account is cash, a check or money order. The minimum account opening amount is about 1,000 rupees or $19 whereas the age limit is 18 years.
  3.  Ask a bank instructor that you are here to open a saving account. The instructor will then direct you towards a State Bank of India accounts opening representative.
  4. The bank representative will then ask about certain details like your full name, father’s name, address, phone number, citizenship and email address. You have to provide authentic information.
  5. Submit your deposit to the bank representative. An international ATM card that you can use anywhere in the world can also be accessible on demand but it will charge a bit charge you per month.
  6. At the end you will receive a passbook and a password for your account that will make you able to inquire your account status via internet. Details related to your ATM card and other account information will be sent to you within 10 to 20 business days.

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Conclusion
It is good to have a saving account with the States Bank of India for all Indians no matter what their income source is. The account opening is very easy, and it is good to make a personal visit to the branch to get authentic information.

Best Fixed Deposit Interest Rates for Senior Citizens

Everyone needs savings and especially when someone is in the later stages of the life it becomes even more essential for the senior citizens to get income out of their savings. Because at that point of time they are not able to work properly and needs rest. So saving plans or fix deposits become very important for their livelihood. They always are looking for the interest rates suited most to their needs. This offer has been specially introduced to oblige the old people and encourage them to consume their savings in a secure way.

Different banks are offering different kind of interest rates. The time period of the fix deposits also differs from bank to bank. There are a lot of banks offering very healthy interest rates on fix deposits for the senior citizens. The interest rate varies from 9 % to 11 % in all the banks. The interest rate for the senior citizens is quite high as compared to other fixed deposits. It enables them to invest their whole life saving with security and earn a reasonable profit to fulfill their needs in routine life. They do not have to depend on their youngsters for money. They still can manage their lives with their own will and maintain a decent lifestyle without being restless. Almost every bank is paying something extra for senior citizens fix deposit compare to the other fix deposits. This excessive ratio goes up to 1% that is considered to be a quite a relief to the seniors.

Most of the banks are offering 10% interest rate and some of them are even paying a little higher. So when you are looking to deposit, you should at least expect 10% interest rate and should prefer the bank which is paying a higher percentage to acquire more profits. Although rates of interest change time to time, but, there is an up word trend in the interest rate from last decade. Rates have climbed dramatically since 3.5% to almost 11%. The top five banks which are offering higher interest rates can be categorized as follows,


S.No.

Bank

Tenure

Interest Rate

1 Dhanalaxmi Bank

3 – 5 years

10.60%

2 Yes Bank

15 months

10.60%

3 South Indian Bank

39 months

10.50%

4 Karur Vysya Bank

1 year to 2 years

10.50%

5 Lakshmi Vilas Bank

1 year to less than 3 years

10.25%

6 Karnataka Bank

1 year to 2 years

10.25%

7 City Union Bank

1 year

10.25%

8 State Bank of Patiala

999 days

10.25%

9 Axis Bank

1 year to less than 3 years

10.25%

10 Indian Bank

1 year to less than 3 years

10.25%

11 Syndicate Bank

211 to 269 days

10.05%

12 Bank of India

8 years and above

10.05%

13 Tamil Nadu Mercantile Bank

1 year to less than 2 years

10.00%

14 Punjab and Sind Bank

500 days

10.00%

15 IDBI Bank

500 days

10.00%

16 J&K Bank

2 years to less than 5 years

10.00%

17 Vijaya Bank

1 year to less than 2 years

10.00%

18 Indian Overseas Bank

1 – 3 years

10.00%

19 ICICI Bank

390 days to 5 years

10.00%

20 Kotak Bank

390 Days

9.90%

21 Andhra Bank

1 year to 3 years

9.90%

22 Corporation Bank

12 months to 2 years

9.75%

23 Federal Bank

1 year

9.75%

24 State Bank of Travancore

1 year to 3 years

9.50%

25 Canara Bank

1 year

9.50%

26 Bank of Baroda

444 days

9.35%

Some other banks are also paying similar interest rates with slight changes in terms and conditions like time period or minimum account balance limits. Before depositing money one should make sure that if there are any hidden charges included which will be refunded from the profits in the shape of bank charges or any internal charges.

On the whole after getting the complete information about the deposit procedure one should really deposit the money where the end result of the profit is in favor of the depositor.

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Conclusion:
There is a noticeable increase in interest rate. One should really invest in fix deposits to be in line earning more by this increase. Every bank is ultimately paying a similar kind of interest rate so it is the depositor’s duty to choose best according to his needs.

Note: This article last Updated on 21st May 2012 If you found mistake in any bank fixed deposit rate kindly let us know! Your feedback make us better.

Details of Reliance Gold savings fund

The new gold fund in fund India is known as RGSF that opened a new array of investments in gold as a category of asset. The fund conceives to offer returns that correspond to returns offered by the Reliance Gold Exchange and the Traded Fund and it in flip allow investing in tangible gold. It allows you to collect gold returns in the paper form without the requirements of any kind of demat account.

The advantages of investing in the RGSF:

  • It is an open door and convenient opportunity for investors to invest in physical gold across the border without any stipulation of having a demat account.
  • It offers you a systematic investment plan that is basically a long term technique of investment according to which you have to pay a fixed amount of money on monthly or quarterly premises at prevailing NAV in a program. This will enable you to save a regular amount of money from your earnings.
  • This investment technique is allowing you to save a small but regular amount of money from your earnings.
  • This also results in the reduction of per unit average cost, few units at increasing market and more units at the time of decreasing.
  • It eliminates the tension of making a selection for appropriate time for buying and selling which makes it less risky and time saving.
  • You will realize added on facilities frequently such as Systematic transfer set up/ systematic plan for withdrawal/ investment/auto-switch and triggering facilities etc.
  • It has very high liquidity that an investor of this fund can redeem and subscribe any time within business days from AMC whereas in case of selling and purchasing of gold ETFs the liquidity factor is on Exchange.
  • RGSF permits its customer with the ease of investment that investors can directly subscribe via physical mode throughout the world.
  • For investment in gold via RGSF, there is no need to have demat account which makes it cost effective by eliminating various sorts of charges and transaction fees.
  • Along with the scheme recurring expenses, investor has additionally borne the underlying expenses of scheme.
  • Investment in this gold fund makes you eligible to get access to several tax advantages; in case of paper form investment in gold you will become eligible for one year capital gains tax while in case of the physical gold you will become eligible for three years. The taxation of this fund is similar to that of debt mutual fund investments.

The Yellow metal continues to breach its high (YOY) since 2001 till date.

Why you should invest in the RGSF?

  • The fund offers you a convenient and straightforward approach for diversification in a portfolio.
  • It enables the investor to increase wealth via regular savings to accumulate gold in a small amount with the help of MICRO Systematic investment set up and systematic investment set up.

By eliminating the stipulation of Demat account it allows investors to invest via online mode or physical applications.

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TO invest online in Reliance Gold Saving Fund please visit here

Image Source: reliancemutual.com

Tax Slabs INDIA After Budget 2012

Indian Finance Minister Pranab Mukherjee has revised the I-T slabs now. The new tax slabs have been aligning as per the proposed Direct Tax Code (DTC).
No tax till 200,000 (from 180,000)
10% from 200,000 to 500,000
20% from 500,000 to 10,00,000
30% above 10,00,000

Now there is no separate exemption limit for women’s while for senior citizens aged above 60 will pay tax only if above Rs 250,000/-

Here are a few other points to note regarding Taxation from the budget:
• Deduction of upto 10,000 on interest on Savings Bank Accounts.
• Purchase of jewellery above Rs 2 lakh now under tax net.
• Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup.

Tax Free Bonds:
• In FY 2013 Tax Free bonds from NHAI are expected to be of Rs 10,000 cr.
• In FY 2013 Tax Free bonds from IRFC are expected to be of Rs 10,000 cr.
• Have also proposed Tax Free bonds for Power Sector worth Rs 10,000 cr.
• Tax Free Infra bonds are expected to double to Rs 60,000 cr.

Here is some FAQ from https://incometaxindiaefiling.gov.in

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If you are not much aware about all this and planning for tax first time than you should review Tax Planning For First Timers.
If we missed any points do let us know? Invest early Be Happy!
Source: http://www.incometaxindia.gov.in/