Index funds, ETFs

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

THERE is often a lot of frustration for mutual fund investors as they find that their investments are not showing any significant results. Often, there are long time periods when there is not much change in the investments value and this could be a time when the investors would get a bit restless. This is true in areas like equity, where, there is no uniform way in which the situation develops. So, there could be long periods when there are no positive results to talk about, while a short period might see a sharp run up in prices. In such a situation, there is an alternative option that is present for the individual that they can use effectively.

Nature of actively managed funds: These actively managed funds are a big draw for investors who want to ensure that they are beating the market. The lure of a good return gets them to invest in these funds, and when the markets are rising, there are many examples where these funds actually provide outperformance for their investors.

However, there are other times when the position is different as far as these actively managed equity funds are concerned.

When the equity markets are not doing much and are moving within a narrow range, there are chances that these end up disappointing the investors.

Time period: If this listlessness happens for a year or so, then the investors are not very concerned because this is a part and parcel of the equity investment scenario. However, when the situation continues for a longer time period, the investors start getting edgy and start looking for different options that will provide them with the required relief from this situation.

This is the time when they want to ensure that there is something happening with their investments rather than just the recovery of the invested amounts, if and when, a rally actually takes place in the equity markets.

Index-based funds: It is at this time that funds like index funds and exchange traded funds based on indices come on the radar of the investors. Here, they would want to ensure that there is not much additional risk and that they will at least be assured of the performance of the market when the index rises.

There is also another risk when it comes to the actively managed funds. If the fund manager has a high exposure to cash, they would end up missing a rally. This would lead to more disappointment when the fund does not rise with the change in the market direction.

Impact: There will be an impact of this kind of situation on the way in which the investments are handled. One theory is that over the long run as the markets mature, it is better to be able to just ensure that the investor earns the returns of the market by selecting passively managed funds.

However, when it comes to these schemes, there is something else that has to be taken into consideration, otherwise the planning will not yield the required results. One point here is that there is a fund should not have a large tracking error, which is the difference between the index and the performance of the fund. If this rises, the benefit of choosing the index fund or the ETF will be lost.

There is also the benefit of the lower cost that will be present, as this will reduce the cost that the investor will pay over their investment lifetime. If all these things are taken care of, it could lead to lesser disappointments over a period of time.

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. HDFC TaxSaver
2. ICICI Prudential Tax Plan
3. DSP BlackRock Tax Saver Fund
4. Birla Sun Life Tax Relief '96
5. Reliance Tax Saver (ELSS) Fund
6. IDFC Tax Advantage (ELSS) Fund
7. SBI Magnum Tax Gain Scheme 1993
8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

 

 

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you