Wealth Web- An Investment Guide to Success

Tax saving is one of the important aspect of our financial planning , managing tax efficiently is an art. When it comes to saving taxes most of us wait till the month of March because we continue our habits to push everything to the last day of submission like our college time assignments. So when it comes to tax planning, assessee majorly focus on taking maximum benefit of Deductions under Chapter V1-A of Income Tax Act, 1961.  Based on this tax planning and co-inciding our financial goals, this blog will provide exhaustive knowledge of ELSS investments, its features, taxability along with recommendation for best ELSS plan to choose. Apart from ELSS Investment, the blog will also provide detailed knowledge on other tax saving investments. What is ELSS Mutual Funds? Equity-Linked Savings Scheme (ELSS) is an equity mutual fund investment that invests at least 80% of its assets in equity and equity-related instruments. Investments in an ELSS qualify for tax deductions u/s 80C of th...

The investment in mutual funds can be done in two ways i.e. directly via company website or through a distributor/advisor of mutual fund. Investing directly via company website is classified as Direct Plan whereas investment through a distributor/ advisor is classified as Regular Plan . Due to rise in financial awareness and easy access to market has encouraged many individual investors to make their own investment decisions. Also, growth of online investment platforms and technological advancements has allowed investors to purchase, sell and get other mutual fund services with no need of human intervention. Considering such financial awareness, technological advancement and elimination of agents, Direct Plan was launched on 1st January, 2013 for all new and existing mutual fund schemes. Thus Direct Plan is popularized with the concept of “DIY” i.e. Do It Yourself . Investing in a Direct Plan is like buying a product from the manufacturer directly, whereby the cost to customer wou...

  “Successful investing is about managing risk, not avoiding it”- By Benjamin Graham. The biggest risk is not taking any risk . Due to plethora of investment options ranging from debt funds to equity funds, mutual funds have been successful in diversifying the risk based on one’s risk appetite. Mutual Funds generate income from its investment portfolio and is distributed proportionately amongst the investors after deducting applicable expenses.  Every individual by ITSELF or with the help of mutual fund advisor/distributor can invest in mutual funds even if he does not have requisite knowledge.  This investment can be for short term to long term based on one’s investment horizon. Even you can invest for few days. These mutual funds are associated with various benefits, lets have a glance to it: Higher Returns - Mutual Funds has ability to provide returns greater than fixed deposits. It can provide returns ranging from 7%-30% based on ones risk appetite. Liquidity - Ex...

It is a known fact that Indians have vested their trust in Fixed Deposits as it is considered safe as capital invested doesn’t fluctuate and the maturity value is predetermined due to fixed rate of interest during the time of investment. These fixed deposit provides rate of interest just over the prevailing rate of inflation. More-over if the interest earned from these fixed deposit is withdrawn for consumption, the capital invested will gradually lose its purchasing power, although the principal amount will remain intact. The other investment options which Indians also rely the most is investment in Public Provident Fund (‘PPF’) and Post Office Deposits. Undoubtedly these investments are safe but it has failed to beat inflation and provide the real returns. The specified lock-in-period of fixed deposits, PPF and Post Office Deposits is also a matter of concern during liquidity crises. The below table depicts the rate of interest over period of years from Fixed Return Investment option...