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Friday, July 12, 2013

How to earn Tax Efficient Investment Returns?

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

An important aspect of investment which is often ignored by investor is tax efficiency of return and that is the reason why traditional options like bank fixed deposit, bond debentures and small savings scheme continue to be mainstay of portfolio of large number of investors

There are three important factors that investors need to keep in mind; (1) they must invest in investment options which provide tax efficient return, that is where mutual funds score over other investment option, for example look at the debt side, even if bank fixed deposit and bond fund gives the same return, the fact that the long-term capital gain is taxed at the concession rate of 10 percent, the post tax returns are much higher. Similarly on the equity side also even though tax benefits are same for investing directly into stocks and through mutual fund, a mutual fund investor gets a benefit because if a fund manager sells an investment within 12 months, the mutual fund investor is not required to pay any tax whereas a direct investment will attract a short-term capital gain of 15 percent.

 

(2) While investing in tax investment option also, investor needs to choose right options. There are three options which are available to investors; dividend payout, dividend reinvestment and growth. So, anyone who is investing for the long-term should be looking at growth option, but they need to be little careful while investing for a shorter duration, for example the dividend distribution tax on debt fund is 25 percent, which means that someone who is in the highest tax bracket of 30 percent should choose dividend distribution, dividend payout whereas investors who are in the tax bracket of 10 percent and 20 percent should opt for growth option.

 

(3) Investor needs to minimise the portfolio turnover, which means that they need to avoid buying and selling at random because many a time investors overreact to market conditions. So, if they honour their time commitment which they have for the portfolio, if they continue to keep investing or remain invested for the defined time horizon then they can minimise their tax incidence a lot.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

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Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
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