For Whom Wealth Matters
November 11, 2019 Leave a comment
Ever wondered what might happen if you just bought some leading stocks,once only ,early in your life,and simply held onto them for a life-time ? Generally practiced sloth? Arousing yourself perhaps only if a company went bankrupt or stopped dividends ?
Then here is a story for you : Read more of this post
November 7, 2016 1 Comment
I’ve had my financial habits called “inertia”. So for most of the time I must be doing somethings right. There is nothing like hyperactivity and thrill-seeking to destroy your wealth or the capacity for wealth. Read more of this post
January 22, 2012 Leave a comment
ELSS =Equity Linked Savings Scheme ,is a special category of mutual funds that invest predominantly in stocks. They are very comparable to diversified equity funds. The only differences between regular diversified equity funds and ELSSs are the 80C tax benefits on investments upto 1 lakh and the lock-in period of 3 years,incidentally the least among all 80C tax-saving avenues. It means that once you invest in an ELSS , you cannot withdraw your investment for a period of 3 yearsHowever,the DTC proposes to phase out the tax breaks on ELSS , so this avenue may be closed in the coming years.But, you can still invest in it this year and get tax breaks.
The best ELSSs have not done too badly during downturns and have given excellent returns in boom times.The reason has been the lock-in period. These funds have not suffered due to large scale redemptions when the market sentiments have tanked.Moreover, fund managers keep a portion of the mutual fund corpus, around 7-10%, as cash,even in good times, so that they can meet all redemption requests. This cash is invested in very short term debt investments, generating meager returns. This impacts the overall returns of the mutual.Since the fund manager of an ELSS knows that funds cannot be withdrawn for 3 years, he can invest all the funds in equities and keep less money as cash and provide good returns in the long term. Read more of this post
July 11, 2011 3 Comments
MIPs are hybrid debtoriented mutual fund products.They are great places to park money if you have a 2-3 year horizon.The majority of the money in this case is invested in debt and the NAVs fall when the interest rates rise.Currently the equity markets are showing some weakness and the interest rates are high,so MIP NAVs are low.So its a good time to pick up MIPs .HDFC and Reliance are 2 fund houses that are known for their treasury management operations.And HDFC and Birla Sun Life MIPs have perfomed well due to superior management of the equity component.
Here is a video that walks you through the ABCs of MIPs:
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