Understanding: Birla SL Medium term Plan

Birla SL Medium term Plan 

Earn better Tax Efficient return than Bank Fixed Deposit.

No Equity Allocation | Pure Debt Fund | With Indexation benifit.

Make Your Hard Earn money Work Smartly..!!

Why Birla Sun Life Medium Term Plan?

Scheme is positioned where the majority of the portfolio is intended to be invested in good quality papers. The scheme incorporates adequate safeguards for controlling risks in the portfolio construction process through diversification while taking care not to dilute the returns in the process. The scheme carries out rigorous in-depth analysis of the securities proposed to be invested in to give your investments an edge.

Investment strategy:

The scheme intends to optimise returns by keeping its portfolio duration between 1 year and 5 years.However the scheme is flexible to bring the duration below 1 year depending on the prevailing market conditions. In case of rising interest rate scenario the

duration of the fund may be reduced and holding in money market securities may go up to 100%, where as in a falling interest scenario the holding in medium/long dated securities may be maximised.

Where does the scheme invest?

Apart from Debt instruments, the potential universe of the scheme for investment includes Money Market Instruments such as commercial papers, commercial bills, treasury bills and Government securities having an unexpired maturity up to one year, call or notice

money, certificate of deposit, usance bills, CBLOs and any other like instruments as specified by the Reserve Bank of India from time to time. 

Past Performance (as on 24th June 2016)

1 Year - 9.65% | 2 Year 10.14% | 3 Year 9.95%

(Source: Birla SL Mutual Fund)

Call me For Further Detail.

Mehul Bheda

Certified Financial planner

Investing in your child's future..!!

Investing in your child's future 

The arrival of a child brings a lot of happiness and responsibilities at the same time. In fact, as soon as a child is born, parents start worrying about the future. Whether there will be enough to provide for the child's growing up years, and more importantly, education and marriage. For parents, education is not an expense but an investment that will provide their child good career growth and opportunities.

With the opening up of specialized fields and a surge in the number of students applying for foreign universities, the cost of education has gone up in recent years. The worry of providing for education prompts most parents to invest in financial instruments. But most land up investing in the wrong plans such as public provident fund, long term bank deposits, gold, or life insurance policies.

However, if we factor in inflation, the returns earned are not good enough to reach the desired goals. Therefore, choosing a right investment plan is critical if you want a lump sum closer to your goals and at a higher rate over inflation. Here are five financial strategies that ensure smart investments.

Planning.

The first step is planning; how much is required for the child's school education, higher studies, and wedding. Start early. The sooner you start saving, the longer your investment has time to grow.

Go by systematic monthly investments.

A key tool which allows you to invest regularly, smoothen out market volatility and benefit from power of compounding is systematic monthly investments which could help in building up a sizeable corpus over the years. For instance, take an example of a parent investing Rs 5,000 per month for his newborn for 15 years at the rate of 12 per cent per annum. His investments will grow to Rs 25 lakh in 15 years. On the other hand, a person who starts investing the same sum and at an expected return of 12 per cent for five years will only be able to grow Rs 4 lakh in five years. Such is the power of compounding.

Participate in equities

Historically, equities as an asset class has provided superior risk adjusted returns over a longer time frame and have outperformed all other asset classes. However, a common man finds it difficult to research stocks which could provide him good returns. This is where investments in mutual funds are advisable and are the best way to participate in equities.

Segregate investments

It's best to define and segregate the investment for each goal. You can consult us as Your financial advisor to understand these and chalk out a suitable investment plan. If you are 10 years or more away from your goal, then you can take a greater exposure to equities, but bear in mind that you should not be impacted by short-term fluctuations. As you start nearing your goal, re-align the portfolio accordingly.

Analyse investments periodically

Instead of looking at the end goal, take stock of how far you have come and what changes you need to make to your portfolio.

Call me for Smart Investment Planning.

Mehul Bheda

Certified Financial Planner

9819592326 | mebheda@gmail.com

Source: India Today

Plan your tax saving investment now..!!

Dear Tax payer, 

Plan your tax saving investment now – don’t leave it for end of financial year

The Jan-March quarter is over and you are probably breathing a sigh of relief now that the last minute rush for investing in tax saving instruments is over. Most of us defer our tax saving investments till the last few months of the financial year, for example, in case of salaried employees- till we receive a reminder from the HR department (usually in the month of January) for submission of proofs of tax saving instruments. We don’t view tax planning as part of our financial plan; consequently, we end up investing casually without aligning tax saving investments to our financial goals. In the process, we invest in instruments which might not help create wealth in the long-term.

Investments in tax saving instruments should command the same well-researched and careful approach that other investments do. After all, it is your hard earned money. The best time to start thinking about tax planning is now. Starting at the beginning of the financial year gives you ample time to draw up a financial plan, research about the best tax saving investments and allocate resources between them in alignment with your financial goals.

Importance of starting/planning early

There are several advantages of starting early in the year:-

• ·         You can make better choices and right investment decisions.
• ·         You could save tax more efficiently and capitalize on investment returns.
• ·         You avoid the last minute paper work and mistakes.
• ·         You can eliminate the circumstance where you could end up not having enough money to spare for a lump sum investment at one go.

The best approach to tax planning is to invest throughout the year in a certain ratio such that by the end of the year you’ve taken advantage of most of the tax saving opportunities. The strategy of investing throughout the year in a staggered manner will not put liquidity pressure at the end of the year.

By composing the right mix of investments for your portfolio, you can pay less tax and ensure that you are receiving optimal returns. The Section 80C offers a broad range of options, each suited to a different need. Choose an option that fits into your overall financial plan. An Equity Linked Savings Scheme (ELSS) provides investors tax benefits combined with long-term wealth creation through equity exposure and comes with the shortest lock-in among all tax-saving instruments.

Investing in an ELSS through a Systematic investment plan (SIP) will not only be easier on the pocket, but will also, provide the benefit of rupee cost averaging and help take advantage of the power of compounding. This strategy is prudent as it decreases the risk of abrupt market declines which deplete your portfolio. SIPs lead to continuous investing regardless of fluctuating price levels in the market.

Let’s assume that of the Rs. 1,50,000 amount available under Section 80C your Provident Fund (PF) contribution (in case you are a salaried employee) and Other Instruments (LIC, Housing Loan) in the year amounts to Rs. 60,000 leaving you with Rs. 90,000 to invest in other tax saving instruments.

By starting a monthly SIP of Rs. 7,500 in an ELSS fund you could cover the entire amount in a span of 12 months. This would not only reduce your load to save for tax investment at the end of the year but will also help benefit from the power of compounding right away!

Next step

Start a monthly SIP in an ELSS fund to get triple benefits – tax savings, systematic investing and an opportunity to harness the potential upside of investing in the equity market

Check out the  Performance Report of Various Equity Linked Saving Scheme ( ELSS ) now!

Fund / Benchmarks	AUM 31/03/2016	NAV Rs	3 Months	6 Months	1 Year	2 Years	3 Years	5 Years	7 Years	Since Inception
			Return %	Return %	Return %	Return %	Return %	Return %	Return %	Return %
Tata India Tax Savings Fund	245.81	59.88	12.31	-0.43	1.44	16.41	20.42	14.64	15.86	19.65
DSP BlackRock Tax Saver Fund	1056.13	31.61	12.79	-0.75	-0.13	12.29	19.47	14.18	16.34	13.10
Birla Sun Life Tax Relief 96	1908.73	126.62	10.84	0.98	-1.02	18.84	22.70	14.88	15.04	25.78
L&T Tax Advantage Fund	1435.76	36.44	11.43	-1.33	-2.67	10.17	16.35	11.41	15.43	13.45
Axis Long Term Equity Fund	6957.75	29.56	8.69	-1.30	-5.08	17.78	24.55	19.56	—	18.43
SBI Magnum Taxgain Scheme	4319.01	105.27	10.15	-4.24	-8.34	9.90	16.82	12.89	13.21	16.98
Reliance Tax Saver Fund	4278.99	42.21	11.28	-4.14	-10.45	9.93	21.77	15.69	17.76	14.44

Call an Expert Financial Adviser , having years of Experience to Plan Your tax Saving Need Smartly.

Mehul Bheda

9819592326 | mebheda@gmail.com