PRINCIPAL GROWTH Fund

PRINCIPAL GROWTH Fund has no market-cap bias but, currently, it has a higher tilt towards mid-caps compared to its peers. The fund manager adopts a strict bottom up stock selection approach with no sector calls. He prefers firms which are dominant in their sectors with earnings profile that beat the sector as well as market expectations.

The portfolio is heavily diversified with a long tail as a result of a conscious approach to distribute risk thinly across stocks with lower market-cap.

PRINCIPAL GROWTH Fund top bets are index heavyweights, but the portfolio construction is benchmark agnostic. The fund's longer-term track record is not impressive, but it has put in a strong showing in recent years, making it a worthy candidate in the flexi-cap category.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

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Invest in Mutual Funds to earn more

 

Bank Deposit Rates are cut

Many individuals are concerned about more banks following the example set by State Bank of India BSE 0.71 % and reducing interest on savings bank deposits and fixed deposits. Many of them, especially retired folks who bank on interest income to take care of their living expense, believe that further reduction in deposit rates are likely to put their finances under severe strain.

 

The public sector leviathan cut interest rates on savings bank deposits by 0.50 per cent on Tuesday. The move, coming two days before the Reserve Bank of India's monetary policy review, probably heralding a change in savings bank deposit rates, as many large banks take cue from the public sector major. A rate cut by RBI tomorrow may result in cuts in term or fixed depoists, too.

But should investors be worried? Well, a little bit may be, but not more that that. To begin with, one should not keep a lot of money in savings bank account. Remember, savings bank account mostly offer measly 4 per cent per year. That doesn't even beat the inflation. Even term deposits barely beat the living inflation. So, it would be a better idea if you can turn your attention to mutual funds to earn a little extra return.

If you are parking the money for a year or little over a year, you may take a look at arbitrage funds. Arbitrage funds look to exploit the price difference of securities between the cash and future market. These schemes are treated as equity schemes for the purpose of taxation. That means if investments are held over a year, they qualify for long-term capital gains tax. Long-term capital gains tax on equity schemes is currently nil. Arbitrage funds offered 6.31 per cent return in the last year.

Investors can also take a look at various debt schemes, depending on their investment horizon. Debt mutual funds are riskier than bank deposits, but they may also offer marginally higher returns. They score on after tax returns if investments are held over three years. Investment in debt funds held over three years qualify for long-term capital gains tax of 20 per cent with indexation. The indexation benefit helps to reduce tax considerably, especially when inflation is high.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

 

SBI Magnum Balanced Fund

With markets recording new peak almost every day, there is a great deal of caution among retail investors. Some are worried about an imminent fall while there are many who believe that strong liquidity in markets may arrest any fall. For those who are worried, investment in balanced schemes are a good option. Balanced schemes provide reasonably good exposure to equities and debt. Among balanced schemes, SBI Balanced Fund has given encouraging performance in the past three-year and five-year periods in comparison with its peers and benchmark index.

SBI Magnum Balanced Fund scheme has given 14.7% and 19.2% returns in the past three-year and five-year period, respectively, while its peers have given 14% and 16.6% returns in the same period. On the equity side, the scheme has healthy exposure to large cap and mid-cap companies . On the debt side, the scheme has good exposure to government and AAA-rated securities. Long-term investors can consider investing in the scheme with a time horizon of least three years.

In the past six months, the SBI Magnum Balanced Fund has invested in diversified large and mid-sized companies which have reasonably good earnings' growth. A few of these prominent companies are Allcargo Logistics, Apollo Hospitals Enterprise, Colgate-Palmolive (India), Gillette India, ICICI Bank, IRB Infrastructure Developers and Thermax.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300