Wednesday 31 July 2019

15 Mistakes to be avoided for Healthy Financial Future


             


15 Mistakes to be avoided for Healthy Financial Future

What are some of the mistakes of Indians that are destroying their financial lives? This Independence Day we are Sharing 15 Mistakes to be avoided for Healthy Financial Future.

1.       Buying insurance policies for investment purpose: Have you invested your money in insurance plan to get a return in future? Big mistake! Out of 100 people I have spoken, 95 have made this mistake.. Very few people understand the difference between term plan, endowment plan, etc.


2.       No idea about the power of compounding: Everyone has come across the formula of compounding but very few people really understand its power like Mutual Funds, etc. This is the reason people do not start saving early and hence lose out on the power of compounding. Albert Einstein said that power of compounding is the eighth wonder of the world.

3.       Buying stocks based on tips without any knowledge: You will find every Tom, Dick and Harry giving stock tips over Facebook, Whatsapp and TV. Unfortunately, a lot of people fall in a trap of these people and invest money without any knowledge. What is the end result? They lose everything!

4.       Becoming a victim of lifestyle inflation: Moving from 2bhk to 3bhk just because you have got a good hike, upgrading your car because you have got some bonus are some of the examples of lifestyle inflation destroying financial lives.

5.       Buying things just because they are on discount / Spending a lot of money on fancy stuff: From Amazon’s “Great Indian Sale” to Flipkart’s “The Big Billion Days”, everyone is en-cashing on the weakness of Indians buying things just because it is on discount. Funny thing is now you will find such sales every other month. A fancy car, a fancy house, a fancy watch, a fancy vacation. People want fancy stuff and willing to pay a premium irrespective of the value it generates.


6.       Spending a bomb on weekend parties: 5 days work and 2 days party: This is the new culture in India. Pubs are jam-packed on weekends where people would spend a bomb on Food and  drinks. By the end of the month, they are left with no money.

7.       No emergency budget: Not having any extra money in the case of an emergency results in embarrassing situations of borrowing money from friends and relative. Some people even break their investments and make a big mistake.

8.       No medical insurance: I have seen people losing out the lifetime savings just because they did not take medical insurance. One accident can shatter all financial dreams. Better be insured. Healthcare cost is rising and it is impossible to manage it without insurance.

9.       No diversification: Some people would invest all their money in real estate, some would invest all the money in gold, some would just keep it in the locker, some would invest all the money in the stock market. Very few people understand the right way of diversifying the investments.

10.   Buying excessive gold only to keep it in the locker: Gold worth lakhs is kept in lockers only to be used once or twice a year. This is resulting in the money getting blocked and hence not getting any returns on it.

11.   An extremely conservative approach with investment: Traditionally, people have been risk-averse. They would just have an FD and live on 6–7% annual interest. Some would just keep the cash at home.

12.   Procrastinating investment decisions: “I will invest from tomorrow”. But the problem is that tomorrow never comes.


13.   Lack of patience: “I can’t wait for my wealth to grow. I want to double my investments in 6 months. I need to invest in the stock market.” A lot of people lose their lifetime of savings because they don’t have the patience to understand the investment option and would blindly trust anyone with their investment.

14.   Depending upon others for investment decisions: “I don’t know anything about investment. Please manage my money.” Unfortunately, a lot of people are dependent upon others with their hard earned money. This is the reason we have a lot of self-proclaimed experts giving stock market tips. Consult Financial Advisor Who Have Experience and can Work on Your Financial Planning as Per Your Risk Taking capacity and Financial goals.

15.   Getting too greedy with investment: People blindly invest their money in penny stocks, day trading, futures and options. They eventually lose all their hard earned money. What is the root cause? GREED


Mehul Bheda  +91 9819592326
Email: mebheda@gmail.com



Tuesday 16 April 2019

Why Small Cap Equity Mutual Funds are must for wealth creation.



Small cap stocks, i.e. stocks below the top 250 stocks by market capitalization, offer investors exponential growth opportunities. Since these stocks are under-researched and under-owned by the by institutional investors, there is considerable scope of price discovery in this market segment and small cap equity mutual fund schemes managed by good fund managers can generate considerable alpha relative to the broader market.

Small caps are the wealth creators

While large cap and midcap stocks can give good returns to investors in the long term, the multi-bagger stocks, i.e. stocks which multiply investor’s money (gives more than 100% returns), are all mostly from the small cap segment.
In the table below we are showing the number of stocks from different market cap segments which gave more than 100% returns in the last 5 years. You can see that the big wealth multipliers (5X to 10+X returns) are mostly from the small cap segment.


Why small cap stocks / funds have potential to outperform large cap stocks / funds?

Large cap stocks are concentrated in only a few industry sectors. Large cap stocks have limited presence outside Financial Services, Energy, IT, Automobiles and Metals. These 5 sectors account for nearly 85% weight in the Nifty 50 Index. Nifty stocks have virtually no presence in sectors like fertilizers, media and entertainment, services, industrial manufacturing, chemicals, healthcare services, textiles, paper etc. Sectors like chemicals, packaging, sugar and tea, ceramics and sanitary ware, hotels, logistics and construction can be played better through small cap stocks. These sectors are likely beneficiaries of a number of policy reforms enacted by the Government and have a great potential in the consumption driven India growth story.

Why invest in small cap now?

2018 was a very difficult year for small cap stocks. The Nifty Small Cap 100 index fell 30% over the year and many small cap equity mutual funds gave negative returns. It is natural that many investors may feel nervous about investing in small cap.
Small cap stocks are always more volatile than large and midcap stocks. They tend to fall more in market corrections, but they also bounce back stronger from the lows
Though Nifty Small Cap 100 index has recovered nearly 19% from its 52 week low, it is still nearly 30% lower than its all time high (made in January 2018). The examples discussed above shows that 25 – 30% correction in small cap provides a base for a strong recovery. Based on the historical precedence, current small cap prices may provide an excellent investment opportunity for wealth creation in the long term.



Point to Remember.
  • Advisable for Long term Goals like Child higher Education, Retirement Planning & Wealth creations.
  • Investment through SIP/STP is advisable.
  • Strictly for High Risk taker Investor, Conservative Investor stay away with High Volatile Small cap Funds.
  • Consult Financial Planner before investing in this space.
Mehul Bheda - 9819592326 | mebheda@gmail.com

Thursday 7 December 2017

Risk Free Investment - HDFC Bank 8% Savings Bonds

HDFC Bank 8% Savings ( taxable ) bonds 2003



Features

·         Minimum investment of Rs.1,000 and no maximum limit on investment
·         6 years tenure of the bond from the date of issue
·         Choose from Half Yearly Payable interest and Cumulative interest
·         8%p.a. rate of interest (1St feb & 1st August)
·         No income tax exemption available, TDS Will be deducted on interest.
·         However, the bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.
·          These bonds are not transferable.


Why choose this product?
                   Minimum investment of Rs.1,000
                   No maximum limit on investment
                   8%p.a. rate of interest
                   100% risk free investment option

Who can invest in it?
·       An Individual, not being a Non Resident Indian
·       A Hindu Undivided Family
·       A Charitable Institution
·       A University

Cheque in Favour of

“HDFC Bank 8% Savings ( taxable ) Bonds, 2003”


Document required

- Self attested Pan Card Copy
- Self attested Address proof (Aadhaar Card Copy)
- Cancelled Cheque 



For further detail feel free to contact me.

Mehul Bheda
+91 9819592326 | mebheda@gmail.com



Monday 27 November 2017

UPDATE YOUR AADHAAR NUMBER IN YOUR MUTUAL FUND FOLIO(S)


Dear Investor, 

Pursuant to the PMLA notification dated 1st June, 2017 issued by the Ministry of Finance, all investors (new and existing) will be required to mandatorily provide / update their Aadhaar numbers for all holders in any folio, before 31st December, 2017. Failing this, the folio would be locked as a "Non-Operative Account" for any further transactions.





Note: Only Update Once in below mentioned Registrar who manages Your Mutual Fund Investments (Individual Family member Wise. (PAN Wise))


for E.g CAMS, KARVY,Franklin & Sundaram.

CAMS




Franklin



( Aditya Birla, DSP BR, HDFC, HSBC, ICICI Pru,IDFC MF, Kotak MF  l&T Mutual Fund SBI MF Tata mutual Fund Etc
Franklin templeton Mutual Fund


KARVY



Sundaram


Axis MF,BOI AXA,  Canara Robeco, DHFL Pramerica, Edelweiss, Invesco, Motialal Oswal,Mirae Asset, Reliance, UTI MF Etc

 BNP Paribas Mutual Fund & Sundaram Mutual Fund

How to Do update aadhar Detail in mutual Fund ?


Option - A   (Online Mode)
Option - B   (Offline mode )
(If Mobile No & Email ID registered)
(If Mobile No & Email ID Not -Registered / Not able to Do it Online.
Kindly Send us message on Whattsapp or through Email.we will Send you link for Online Updation
Kindly Sign Aadhar Link Form For Each registrar you have investments in With Self attested Aadhar Card Xerox Copy.
Kindly Contact us /  Whatts app/Mail  us
  M - +91 9819592326 | Email- mebheda@gmail.com , 



ONLINE LINK

CAMS


SUNDARAM


KARVY



 FRANKLIN TEMPLETON



FOR OFFLINE MODE PLEASE SHARE YOUR EMAIL ID

or Just Send Email to mebheda@gmail.com & Write Subject line as Aadhaar

You will get revert with online link and Forms.

Thanks 

Mehul Bheda



Friday 24 June 2016

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



Wednesday 1 June 2016

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

Wednesday 25 May 2016

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