What is ELSS? Equity Linked Savings Scheme

Equity Linked Savings Scheme is a diversified equity fund that invests its maximum corpus in equity. ELSS is a very popular scheme under Article 80C of Income Tax which also includes income tax savings and increases in invested capital. There is a lock-in period of three years in this scheme. It is very important to understand this plan before investing.

ELSS is a mutual fund mutual fund that can invest in equities as well as tax. ELSS is a diversified equity mutual fund that invests in the majority of its corpus fund equity. Diversified means that this fund invests in shares of companies of different industries and sizes. So that the diversities in the fund remain. It is necessary to understand here that there will be more variety of winning in the investment, the less the risk. Since it is an equity fund, returns from ELSS ELSS Fund reflect returns from the equity market. Better fund managers can give you better returns than the market.

Tax savings with investment in ELSS Mutual Fund

Dividend and Growth Like all other Equity Mutual Fund Equity Mutual Fund schemes, ELSS also offers dividend and growth options. Investors get a lump sum at the end of 3 years in the Growth option. On the other hand, in the option of dividend, investors get regular dividend income, whenever the dividend is declared by the fund, even during the lock-in period.

Lock in period:- is a lock-in period of three years on the investment under this scheme ie when you invest in this scheme, you can not redeem your investment for three years. Since it is beneficial to invest only in long-term for a longer period of time, therefore, in three years, you are likely to get a good return. You can also invest in ELSS through SIP, which makes investing easier and reducing the risk of investment.

Tax exemptions can be claimed as a deduction up to 1 lakh rupees of their ELSS investment from their gross total income in a financial year under Section 80C of the Income Tax Act. Returns from ELSS scheme are completely tax-free Any other investment plans available for tax rebates such as bank deposits, NSC or PPF, ELSS is available with the lowest lock-in period.

ELSS is a great Mutual Fund investment scheme in the schemes available for investment, but like investing in the stock market share market, there is a risk in the same way as the stock is in the market. It is expected that ELSS in Hindi would have liked you and you have helped to know what ELSS is in Hindi.

Example:- Canara Robeco Equity Tax Saver Fund

Want to know how to buy one read here.

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Types of Equity Funds | Basics

We told you different types of mutual funds. Equity funds are the most popular among different mutual funds. Today, we will discuss in detail about equity funds. What kind of investors should invest in the type of equity fund? What will be the difference between large caps, mid-caps, small-caps and sector funds?

Equity funds are the most popular among different mutual funds. Today, we will discuss in detail about equity funds. This fund is so popular because these funds invest in the stock market and can give returns as well. Most equity funds invest in companies according to market capitalization and are classified accordingly. Equity funds are mainly divided into large caps, mid-caps and small-caps.

Large-cap funds:- mostly invest in large companies. Funds invest these companies according to the size of their market capitalization. These companies are considered safe for investment because they are well-established companies in their industry sector and in a way the top companies are likely to be in large caps. This is the reason why large-cap funds are considered suitable for equity investors who do not like to take more risk. These funds are likely to give simple returns while taking a relatively low risk.

Mid-cap funds:- invest in most mid-sized companies. Investing in these companies can also lead to some risks because they may not be able to grow according to their full potential. However, if these companies develop and become big companies, then they can be very beneficial for the investors. Invest in investors who can afford more risks.

Small-cap funds:- invest in small companies. Investment in these companies can be very risky because very little information about them will be available in the public domain. However, these companies can give extraordinary returns. These funds are suitable only for high-risk investors.

Diversified Equity Fund:- Based on the market view of the fund manager, the diversified equity funds invest in companies with different size market capitalization. Because the portfolio is spread over various market capitalization, they are less risky than mid-caps and small-cap funds, but slightly higher risk may be compared to those of large-cap funds. These funds are suitable for investors who can afford the general risk.

Equity Linked Savings Scheme(ELSS):- or Tax Planning Mutual Fund is suitable for investors to save taxes under Section 80C of the Income Tax Act. Investments in these funds are eligible for tax deduction up to Rs 1.5 lakhs. They come with a mandatory lock-in period of three years. This means that you can not redeem these funds for three years after making a test.

Sector funds:- mostly invest in shares of companies in a particular area. Since the investment is centred on one area, the sector fund is considered to be extremely risky. For example, the real estate sector fund will invest only in real estate companies. Changing the economy into various cycles also foresees the fate of the areas. Investors should invest only a small part of their investment in the Sector Fund.

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What is Mutual Fund | Basics

Basics of Mutual Fund, Opportunities of MF schemes and Learn types of MF investments. The amount deposited by a large number of investors is called a mutual fund, which is put into a fund. The fund manager uses his investment management skills to invest this money in various financial instruments. Mutual funds invest in many ways, which determines their risk and returns. When many investors invest in a fund together, the fund is divided into equal parts called unit.

For example, suppose some friends want to buy a piece of land together. The price of a piece of land of hundred square yards is one lakh rupees. Now if you divide this fund into units of ten rupees then 10,000 units will be formed. Investors can buy as many units as they wish, according to their investment capacity. If you have only one thousand rupees for investment then you can buy a hundred units. In the same proportion, you too became the owner of that investment (land).

Now suppose that the value of this one lakh investment has increased to one hundred and twenty thousand after one month. Now, according to this investment, the unit price will be calculated, then the unit of ten rupees has now become twelve rupees. The investor who bought a hundred units in one thousand rupees, according to the twelve rupees per unit, now his investment (100×12) has been Rs. 1200.

Based on the amount invested by you as an investor, how many units you own. Therefore, an investor can also be known as a unitholder.

With this, you can see that an investor who can not make big investments, has the facility of investing in small units. Apart from this, the biggest benefit of Mutual Fund MF is that an investor who does not have much information about the market leaves his investment in the hands of experts. These experts determine where, how and when to invest.

Mutual funds can be invested in many ways. To know more read here

Also, It is very important for you to understand what is NAV if you want to invest in a Mutual Fund

NAV in Mutual Funds and Explanation

It is very important for you to understand what is NAV if you want to invest in a Mutual Fund.

By investing in Mutual Fund Mutual Fund, your investment is in the hands of experts and in this way you can reduce the risk of direct investment in the stock market. Today, we will learn here that what is the NAV in the MF, how it is counted and how important it is.

Net Asset Value, or NAV, means directly the value of the total property. Net asset value, or NAV, in any of the Mutual Fund funds, after deducting the liabilities from the total value of all the shares of the portfolio, including cash, the outstanding balance is obtained by dividing it by the total number of units remaining.

NAV fund is per unit’s total asset value (excluding expenditure) and at the end of each day’s business, it is calculated by the asset management company (AMC) of that fund. On any given day, if that MF is terminated, then the unit holder of that mutual fund will get the price for each unit instead. In a way, the NAV is the book value of any mutual fund unit.

Most of the unit’s base value in the Mutual Fund Mutual Fund is Rs 10 or 100 rupees. In each business day, the NAV curve of the unit increases according to the market value of the fund’s portfolio.

NAV refers to the growth of the unit of a mutual fund mutual fund. If you invest Rs 12 per unit in a fund at NAV and after one year, if the NAV of that unit goes up to 15 rupees per unit then that fund has 25% growth. It is not right to believe that the mutual fund with lower NAV will give good returns and more NAV fund will give fewer returns.

Types of Mutual Funds read here.

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Different Types of Mutual Funds in India

Today we are going to discuss the different type of Mutual Funds,

MFs are categorized on the basis of which type segment we invest, like Equity mutual fund, Debt mutual fund and Hybrid mutual fund.

Equity Mutual Funds

As per name Equity Mutual Funds are those funds which are invested in the stock market, It is also divided into

Large Cap Fund

Mid Cap Fund

Small Cap Fun

Sector Fund

Diversified Equity Fund

Dividend Yield Fund

ELSS

Thematic Fund

Two Different Mutual Fund Structures

More than above Mutual Fund schemes have different style investment options, which are

Open Ended Fund:- A user can invest or withdraw units anytime that’s the advantage.

Interval Fund:-

Close Ended Fund:- After first investment time, it has a maturity period, in between this period no one can invest or withdraw the funds.

There are International Fund, Real Estate Funds, Gold Funds, Exchange Traded Fund categories as well for MFs.

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What are the best ways to find best mutual funds for beginners

Usually, people find best mutual funds schemes by looking into star ratings through websites like moneycontrol or valueresearchonline. Or sometimes we look into rankings of the best fund schemes which has given best returns in the previous 3 to 4 years.

But such cases for highly rated fund scheme managers need to be more responsible for such huge investments from customers and this leads him to compromise on the stocks he selects in the future.

So it is not predictable that the schemes which have the good track record till date will perform better in the future.

To pick the best mutual fund schemes go through these points mentioned below,

  1. The fund which has the best track record on the basis of consistency, with which safe track record rather than risky.
  2. Check for the fund manager previous track records also check if the fund manager changed for a particular mutual fund scheme. If a fund manager handles 5 funds and he is managing 3 or 4 funds better out of 5, then we can consider him he is good at managing fund schemes.
  3. Best return without risk track records are important.
  4. Large caps with a big percentage of return is more important than mid-cap/small-cap fund with a small percentage of returns.

 

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Vijay Kedia

Story of Successfull Investor Vijay Kedia and his Strategies

Vijay Kedia born into a stockbroking business family. From childhood itself, he was aware of the stock market.

He was interested to start a business but there the as no sufficient capital. Later he joined the family business of stock broking but he was not that much interested in this broking business.

Vijay Kedia

At the age of 19 he started share trading, then he thought that it is easy to make the profit, but after some successful trades, he faced a lot of losses. With some experiences, he learned that stock market investors need patience, on these timings he lost a lot of money. After huge losses, he left the share trading.

A couple of bad trades made him into losses. Once with Hindustan Motors, he faced a loss of 70000/-. At that time he didn’t have much capital, but at that time his mother told him to sell her jewellery. But before going into that situation his losses went into profit. Because of all these incidents, he decided to stop trading and started a logistics supply business. But this was also a failure, then he started trading again.

After he realised that his wealth creation is not much successful even after 10 years of trading he decided to concentrate only on investing. On that timings, there were no sources to learn on how to invest and also major investors don’t want to share their knowledge. Hence Vijay Kedia started to read magazines and newspapers. Also, he is interested in knowing the company annual reports and interviews with company CEO and managing directors.

In 1989 Kedia invested 35000 INR in Punjab Tractors and after 3-4 years later the stock becomes 4 times bigger than the buying price. At that time MR Kedia sold all stocks and bought ACC LTD at price of 300 and it became 3000 within less duration of time. After selling all of the ACC shares he bought an apartment in Mumbai and also invested in some shares with the remaining money.

After Harshat Mehta scam Mr Kedia faced big correction in his stock portfolio, according to him because of not buying stocks which had quality management he faced big correction in his shares.

But he made a decision to invest in Aegis Logistics at a price of 14 INR and sold at 500 price level which means 4000% times return. After that Mr Vijay Kedia invested in many multi-baggers like Atul Auto (Purchased at 5-10 average price) and because of his patience after 4 – 5 years the price started to grow in the upper circuit and sold Atul Auto at 500 level.

Mr Vijay Kedia’s 3 mantras are

  • Knowledge
  • Courage
  • Patience

According to him, company management is the driver for the firm, if a company have the power to grow even in a bad background of market condition. That company will have the fast growth possibilities.

Whenever the company changes its focus or if the company at its high valuation then Mr Kedia always planned on selling those shares.

He advises new investors to try to create a  fixed income first and then only enter into sstock marketbecause of its volatile nature.

Currently, his net worth is more than 1000 Crores.

MP Subramanyan Swamy Reveals that CSA had the Pressure from Central Government

In a meeting with Chartered accountants at Ahmedabad BJP MP revealed that the CSO (CENTRAL STATISTICS ORGANISATION) had the Pressure from BJP government regards to INDIAN gdp and growth statistics.

Fake GDP Reports

He also added that the GDP values announced which are not real. It is easy to influence international statistics organisations as well as national associations.

According to Mr.Swamy the recent quarterly reports all have influence from the current government and its not real fact.

 

Adhaar linking with trading accounts

Why Adhaar is mandatory for Your Trading Account

The stock broking firms requested its customers to link the Adhaar card with the demat account as per the circular from SEBI.

According to current updates every client’s who have trading accounts should fetch their Adhaar with the account in before next year.

Every brokerage firms announced the requirements in these Nov – Dec months.

There are limited conditions for people who joined recently or from the month of June 2017 that they have given 6 months of time.

Adhaar linking with share trading account

The deadline shall be a difficult task for the stock broking firms and the customers. Anyway let see whether any hope of exception who delays to submit the adhaar details.

As per rule there are chances of ceasing the trading account who delays to submit it.

 

Future Supply Chain IPO Opens By Tomorrow

The third part logistics company FSC IPO opens tomorrow at price band of 660-664. Shares will be available in BSE and NSE both.  It will list by December 6th and End By 8th. Secondary market listing expected by 18th of December. The issue will raise 650 crore INR.

FSC IPO By December 06

The company do contract logistics and express logistics and temperature controlled logistics. It operates 42 distribution centres and have revenue of 561 Crores in the financial year 2017. It was 519 and 407 crore revenues in the year 16 and 15 respectively.

In the coming year the GST structure may benefit the firm. The average P/E value of the company is 48. The valuation of the stock is not expensive and may be it can have a bright future depending on the company performance.

Future Supply Chain is 56.10% subsidiary of Kishore Biyani’s Future Enterprises Ltd. Sector wise the future is bright valuation wise it is not. So please study the IPO in details and invest.

Happy Investing.

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