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BUILD LONG TERM WEALTH

We all know that any money in our pocket gets spent immediately. You always have a feeling of running short of cash. Then how do you build wealth?

  • Answer is simple - save first and then spend.
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We recommend you to start systematic investment plans (SIPs) of top performing equity / balanced mutual funds to build wealth. A fixed amount of money gets debited to your bank account automatically every month creating forced saving for you. In few months, you will see your money pot growing and then you will start enjoying the process!


This is what your elders always recommended SIPs help you in multiple ways:

  • Leveraging Power of Compounding: Returns generated by your investment further get reinvested and start generating more returns.
  • Tax Free Wealth: If you remain invested for more than 1 years in equity schemes, then no tax is payable on withdrawals as per current income tax laws.
  • Lower Market Risk: Investing at regular intervals reduces your risk as compared to one-time investment, as you are investing even when markets are down, which reduces your average cost of investment.
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SAVE TAX

Tax saved is money earned!

Equity Linked Saving Schemes (ELSS) are great ways to save tax, as you earn tax free returns along with tax saving. Here is why you should consider ELSS mutual funds schemes for saving taxes:

  • ELSS comes with dual benefit of tax saving and capital appreciation for investors.
  • ELSS funds give an option of investing in both dividend and growth schemes. While the dividend one ensures regular income even during the 3-year lock-in period, the growth one comes with a lump sum amount at the end of the lock-in period.
  • Investment in ELSS schemes can start from as low as Rs 500 per month; this is something that helps the person save without any major impact on monthly budget. Tax saving mutual fund schemes have generated superior returns in the past as the lock-in for 3 years enables the fund managers to manage the investment process better.
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MEET SHORT-TERM GOALS

You are likely to have financial goals or expenses coming up in next 1 to 3-4 years. You want to save and invest in a way that it helps you meet these expenses in time. Equity Savings Funds are great options for these needs of yours.

What are Equity Savings Funds

Equity Savings Funds invest in a mix of Equity, Arbitrage and Debt securities. Allocation is generally between 20% to 40% for Equity, 30% to 45% for Arbitrage and up to 35% for Debt. Arbitrage and Debt portions ensure stable returns, while Equity portion ensures overall superior returns. Fund managers also have flexibility to change allocations depending on current market conditions, i.e. higher Equity allocation in case of stock market correction.

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Benefits of Equity Savings Funds

  • Less volatility: Returns from Equity Savings Funds display more stable returns due to comparatively lower allocation to Equity
  • Lower downside risk in case of significant decline in Equity markets
  • Tax Benefits: Dividends from Equity Savings Funds are 100% tax free. Capital gains after one-year holding are also completely tax free.

You can either invest lump sum or systematically in Equity Savings Funds to meet your financial needs over next 1 to 4-5 years!

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PLAN FOR RETIREMENT

Retirement may seem far away but believe us, time flies away! Investing in a retirement plan will ensure you gradually build a kitty to take care of you after retirement. You can also choose how the money will be invested - whether in debt or equity or a combination.

Mutual funds retirement plans are more flexible compared to other options like NPS or Insurance based retirement plans. Lock-in for these plans is only 3-5 years and you can withdraw funds in case of emergencies (subject to scheme specific exit load).

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Also after the age of 60, you are not forced to buy annuities. You can use systematic withdrawal option for regular cash flow where there is more flexibility to stop such withdrawal if not required.

Moreover, you can take benefit under section 80C for amount invested in such mutual fund retirement plans.

SAVE FOR CHILDREN

Parents are always concerned about meeting two major financial needs of their children once they grow up - education and marriage. No better way than buying mutual fund plans specifically created for this purpose.

Investing in child plans of mutual funds helps you sticking to your financial goal and clearly identifies why you are saving and investing the funds. You get options to choose between equity and debt funds in most of these plans.

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Elders always want to leave their legacy for their grandchildren in the form some gift. There are some child gift plans where grandparents can invest on behalf of their children from their own bank accounts.

Such investments are more tax efficient as returns are taxable in the hand of children when they turn 18 and withdraw the money for their use. They are likely to have far lower tax liability at that age and in case of debt oriented investments, benefits of indexation will reduce the tax liability to negligible.

REGULAR INCOME PLAN

If you are in need of regular cash flow for meeting your monthly expenses, then you can opt for monthly dividend option in hybrid equity funds or balanced funds.

Mutual funds can pay dividend only out of the profits booked on the investments. The dividends received from equity oriented mutual funds are tax free for the investor. Hence, this option can be used for managing cash flows.

Please note that there is no guarantee by mutual funds that they will maintain these dividends in future, in accordance with applicable laws.

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LIQUID FUNDS

Make money in current account earn for you. Our special plans let you invest even for a day!

The liquid funds invest in short maturity government and corporate debt securities resulting in safe and highly predictable returns.

These funds are ideal for investing your surplus funds ranging from 1 day to 30 days.

We also have an option where you can simultaneously put a Sell order for your investment in these funds, and the order will get executed on the particular day automatically, thereby eliminating the need to remember.

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LIQUID FUNDS - INSTANT CASH

Make money in current / savings account earn superior returns for you.

Our Instant Cash option lets you get your investment upto Rs. 50,000 in your bank account instantly. This ensures that you have your cash available to you in case of any urgent requirements. So you earn high returns compared to savings and current accounts, with peace of mind of being able to withdraw whenever required.

The liquid funds invest in short maturity government and corporate debt securities resulting in safe and highly predictable returns.

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These funds are ideal for investing your surplus funds ranging from 1 day to 30 days.

BETTER THAN SHORT-TERM FDs

Park your short term surplus funds in tax efficient arbitrage funds or ultra short-term debt funds!

These funds are idea for investment horizon of upto one year.

Arbitrage funds take hedged positions in cash and derivatives equity markets to ensure stable returns to the investors. Dividend received from arbitrage funds are completely tax free, so it is advisable to take monthly dividend option while investing in arbitrage funds.

Ultra short-term debt funds invest in short maturity debt securities.

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BETTER THAN LONG-TERM FDs

Park your long term surplus funds in corporate debt securities to earn superior tax adjusted returns over time horizon of 3 years and more.

These funds work on the principle of accrual which ensures a more predictable return if the investment is held until the required holding period.

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