Money For Investment

Mr. Rakesh Kumar is a senior executive with a private firm drawing salary of Rs 25000 per month. He has been working since last 3 years ,but ,hasn't been able to invest much in last 3 years . He says he never had enough money saved which he could invest. There are quite a lot like Rakesh Kumar out there. Almost all of us have felt that our savings are inconsequential and hence investing such a small amount wont make much of a difference. The result is we never invest only. So what is the solution? How can someone with modest income and saving start investing ? The answer to this is Systematic Investment Plan or SIP. What is SIP? SIP is a method of investing a fixed sum of money every month in a scheme. It is similar to a recurring deposit where a fixed amount is deposited every month in the bank account. Under SIP, fixed money is invested by the investor which in turn is used by the AMC ( Asset Management Company ) to buy units form the same money for the investor. How does it wor...

Friends, this being the tax saving time for us in India, there are quite a few who want to know the difference between ULIPs and ELSS as an investment option since both of them offer the option of equity exposure and tax saving under Sec 80C of the Income Tax Act. So here will try and explain the various aspects of both the products highlighting the notable differences of the two so that you can make your investment decision wisely. 1.TYPE OF FUND A. ULIP- ULIP or Unit Linked Insurance Plan is primarily an insurance product as is evident from its name itself. It offers you the option to invest your money in debt,equity or mixture of debt and equity funds. B. ELSS -ELSS or Equity Linked Savings Scheme is primarily a mutual fund scheme run by Mutual fund companies. It offers you the option to invest your money in equity only. No option to invest in debt funds here. 2. OFFERED BY A. ULIP - Sold by Insurance companies only. B. ELSS- Sold by mutual fund companies only. 3. LOCKIN PERIOD A. U...

Friends , since we all now know that best tool for tax saving is ELSS , lets look at the 5 best ELSS in terms of their performance in last 5 years. No. 5 Franklin India Taxshield NAV : Rs. 174.1 Risk Rating : 3 Overall rating : 5 This is at number 5 pipping Sundaram BNP on acount of excellent Risk Rating.The fund has above 35,000 crore Avg. Mkt. capitalisation and equity exposure is more tha 97& of the assets. Top holdings include Reliance Industries, HDFC, L&T, ICICI Bank and Bharti Airtel. Financial Services, Technology and Energy are the top sectors where the fund is invested. 5 year returns -47% 3 year returns-37% No. 4 Birla Equity NAV : Rs. 76.47 Risk Rating : 5 Overall rating : 4 Birla Equity offers excellent returns from all parameters,but standard deviation of 24.42 , this growth comes with comparatively high risk. The fund has 9394 crorr of AMC with high exposure in Engineering, Services and Financial service sectors. Top holdings include ABB, TRF, Gammon India, Welsp...