Home Loan EMI Refund Concept.

Many home buyers are buying property or there first Dream House via Home Loan and pay EMI every Month.

Is there a way to get all this EMI back ?

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If you avail of Home Loan of 10 Lakhs for 20 years with Interest rate : 9.5% then

Monthly EMI       :Rs.          9321.31
Principal Amount : Rs. 10,00,000.00
Interest Payable   : Rs. 12,37,144.00
Total Amount       : Rs. 22,37,115.00
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Now to get back your Interest Just start an SIP of 0.10% of your Home Loan aside till tenure of your Home Loan.
For Ten Lakhs do an SIP in Diversified Equity Fund of Rs.1000. for 20 years.

SIP Amount : Rs1,000
Principal Amount : Rs. 1000 * 240 months =Rs 2,40,000

Returns @15% = Rs. 14,97,239
Returns @18% = Rs. 23,43,487

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So if you invest in Good Diversified Equity Funds and get 18% return you will Get Back all your Principal amount + Interest + some Gains.

Think about it. It does Work.

Top Performing Mutual Fundsfor period ending 31/03/2016

Following is the list of few Top performing Funds over last financial year ending 31/03/2016

LARGE CAP Funds
1. SBI BlueChip Fund
2. Kotak Select Focus Fund
3. Franklin Bluechip Fund

MIDCAP and SMALL CAP Funds
1. SBI Small and Midcap Fund
2. DSP-BR Microcap Fund
3. Mirae Emerging BlueChip Fund
4. Reliance Small Cap Fund

DIVERSIFIED EQUITY Funds
1. PPFA Long term Value Fund
2. Kotak Equity Savings Fund
3. SBI Magnum Multicap Fund
4. Franklin Prima Fund

TAX Saving ELSS Funds
1. DSP-BR Tax saver Fund
2. Franklin India Tax Shield
3. Birla SL Tax Plan 96
4. Axis Long Term Equity Fund

BALANCED Funds
1. ICICI Pru Balanced Advantage Fund
2. SBI Balanced Fund
3. Franklin India Balanced Fund
4. Reliance RSF Balanced Fund

Budget 2016 Tax slab remains same

Few Things to note in this budget.

Tax slabs remain the same. They’re still at

• Less than 2.5 lakh: no tax
• 2.5L to 5L: 10%
• 5L to 10L: 20%
• >10L: 30%

If your income is less than 5L, you got a rebate of Rs. 2000 thats now increased to Rs.5000 (you had to pay that much less). 

Dividends received from listed companies was not taxed in the hands of the shareholders (Individuals/ HUF/ Resident of India). The company paid dividend distribution taxes before dividend was paid out. 

 Effective 1 April, 2016 any dividend income (from equities or bonds) received by an individual or a HUF in excess of Rs. 10 lakhs shall be taxed at a rate of 10%. This is only limited if the dividend income is greater than 10 lakhs in a year. However first Ten lakh of dividend is still tax free.

It also applies to mutual fund dividend payouts and private company dividends. 

This shall be applicable from the 1 April, 2016 which means that the dividends declared before 31 March, 2016 would not be taxable.

The big blow to everybody is the Service tax being raised from 14.5% to 15% on all services. It sounds so small but it pinched you an all the services.

Bank FD vs Liquid Fund Taxation

FIXED DEPOSIT
Amount Invested Rs. 100 Lakh
Tenure : 3 years
Interest Rate : 7.5%
Maturity Amount : 124.35 Lakh
Tax Rate : 34.61%  {30% + surcharge 12% + 3% cess}
Tax Liability : 8.43 Lakh

Net Amount : 115.93 Lakh


LIQUID FUND / FMP / DEBT FUND
Amount Invested Rs. 100 Lakh
Tenure : 3 years
Return Rate : 7.5%
Maturity Amount : 124.35 Lakh
Indexed Cost : 122.50  (Assuming Inflation 7%)
Capital Gain : 1.86 Lakh
Tax Rate : 23.07%  {20% + surcharge 12% + 3% cess}
Tax Liability : 0.42 Lakh

Net Amount : 123.94 Lakh

You can save a whopping Rs.8 Lakhs by simply taking wise deciscion.

Note: This calculation are done to simplify the understanding of the tax calculations. you might consult your C.A for exact calculation and Tax rates applicable in that particular year.

Indexation Benefit of DEBT Fund vs Bank FD

Following table shows amazing Tax Benefit you can take in DEBT Mutuals, FMP vis a vis investing in Bank FD.

Top performing Mutual Funds of year 2015

Below is the list of Top performing Mutual Funds of various category.

Large Cap Mutual Funds
1. SBI Bluechip Fund
2. Kotak 50
3. IDBI India Top 100 Equity Fund
4. Franklin Bluechip Fund
5. Reliance Focused Large cap fund

Midcap Mutual Funds
1. SBI Small and Midcap Fund
2. Birla SL MNC Fund
3. Motilal Focused Midcap 30
4. SBI Midcap Fund
5. Reliance Small Cap Fund

Diversified Equity Mutual Funds
1. Motilal Focused Multicap 35
2. UTI MNC Fund
3. SBI Magnum Multicap Fund
4. Reliance Growth Fund
5. Kotak Equity Savings Fund

ELSS Tax Savings Mutual Funds
1. Tata Long Term Equity Fund
2. Axis Long Term Equity Fund
3. Birla SL Tax Relief96
4. IDFC Tax Advantage
5. SBI Magnum Taxgain

Balanced Funds
1. Reliance RSF Balanced Fund
2. ICICI Pru Balanced Advantage Fund
3. SBI Magnum Balanced Fund
4. Tata balanced Fund
5. Franklin India Balanced Fund

Property vs Mutual Funds excellent analyis

This is nice piece of work of point to point comparision of properties across various location and various time frames vs performance of various Mutual Funds for the same time horizon.

This transcript is really an eye opener.

www.wealthforumezine.net/InvestorsMeetTranscript110415I.pdf

Dividend declared by various Mutual Funds

Dividend declared by various Mutual Funds in last few days.

HDFC Top 200 - Rs. 5 per unit.
Reliance Growth Fund - Rs. 6.5 per unit
Axis Equity Fund -  Rs. 1 per unit

Links to Invest online in Mutual Funds

Invest online in UTI Mutual Fund

Invest online in SBI Mutual Fund

Tax 0n Debt Mutual Funds

Taxes on Debt Mutual Funds currently is

1. If holding period is less then 36 months then Marginal rate applicable to the investor.

2. If holding period is more then 36 months then the Tax is 20% after Indexation as LONG TERM CAPITAL Gains apply.

3. Dividend Distribution Tax on Debt fund is now 28.32%

Download Mutual Fund Application Forms 2015

SBI SIP Application Form

HDFC SIP Application Form

UTI ULIP Application Form

KYC Form Individual

SIP by SIP ; Square Feet by Square Feet; FINALLY bought a house in south mumbai

South Mumbai is one of the most expensive place in entire India. To buy a real estate in Mumbai will cost a you a fortune. The real estate prices have been rising like crazy for last couple of years and being a Middle class person cant even think of buying a house to stay. Housing loans and EMI are a scary thought.

We had to buy a house and that too in South Mumbai then whats the way out. As they say NECESSITY IS MOTHER OF ALL INVENTION. The thought occur journey of thousand miles start with first step. so I thought to save and put aside 2 square feet worth of money in a Mutual Fund (Ideally to buy 1bhk of 400 sq ft will take 200 months almost 16 years but anyways started a SIP for an amount which was equivalent to 2 square feet at that time.

Now its almost 100 months (near about 8 years )so practically I bought 200 square feet worth of amount but as they say FORTUNE FAVOURS THE BRAVE. The amazing that happened markets supported and the appreciation in last one year is more than 50% and the amount comes to nearly 300 square feet and with few borrowed money from relatives and some old jewellery. The Target is achieved way ahead of the time and Finally bought a house in SOUTH MUMBAI. Its such an amazing feeling and confidence builder.

SIP by SIP ; Square Feet by Square Feet ; 

     

UTI Mastershare declares Dividend for 28th year in a row

UTI Mastershare declares dividend for the 28th year in a row.
Record date for the dividend is 05/11/2014 and the quantum of dividend is Rs. 2.75 per unit.

Android Apps to track Mutual Fund investments through cams and karvy

Nice Android Apps used to track your Mutual Fund Investments made through Karvy basically Investments made in Reliance Mutual Fund, UTI Mutual Fund etc.

KTrack
https://play.google.com/store/apps/details?id=com.karvy


Beautiful Android App used to track your Mutual Fund Investments made through Cams basically Investments made in HDFC Mutual Fund, SBI Mutual Fund etc.

myCams
https://play.google.com/store/apps/details?id=com.KCamsApp

Property return Vs Market return

Property and SENSEX compare

Film actor Rajesh Khanna bought a bungalow in iconic Carter Road in Mumbai for Rs.3.5 lakhs in 1970. His heirs sold it recently for Rs.85 crores. The property has multiplied by 2428 times or an annualized return of 19.38% over 44 years. 

Samudhra Mahal in Mumbai is another expensive property. A flat purchased in 1970 at Rs.700 per sq.ft was sold at Rs.1,18,000 per sq.ft in 2013. Money multiplied by 168 times in 43 years. This works out to an annualized return of 12.66%

In 1963, Godrej paid Rs.1 lakh to buy his first house, a 2916 sq.feet apartment at Usha Kiran, Carmicheal road, in South Mumbai. In 2011 he sold it for Rs.25 crore. Money multiplied by 2500 times over 48 years or an annualized return of 17.70%

In Dalal Street, Mumbai a sq.feet was Rs.100 in 1980. After 34 years, it sells at Rs.27,000 per sq.ft. Money multiplied by 270 times in 33 years. This works out to an annualized return of 17.90%.

The first three properties can be bought and owned by cream or elite of the society who are worth at least tens of crores, mostly hundreds of crores.

The last property in Dalal street; your father could have bought with whatever money available at his disposal. You can buy it even now. Your son or daughter would be able to buy it even 20 years down the line.

The last property is Sensex. A sq.feet is a metaphor for one unit. If dividend yield is also included (assuming 2% CAGR), Sensex would have delivered 20% annualized returns over last 34 years, higher than the most expensive prime properties in the country.

Good mutual funds and many stocks have delivered returns far superior to Sensex itself.

Power of equity is least understood in this country.

If you can withstand notional loss (if you don’t book) in portfolio during bear markets, not worry about daily price movements, it is possible to make much better money than what can be made out of best of real estate.

Give at least the same importance to equity as you give to real estate.

You don’t mind holding real estate for 20 or 30 years. Please do the same for equity ignoring bull and bear markets, notional profits and losses.

Many of you have been investing for last couple of years. Stay the course for at least another 15 to 20 years completely ignoring market fluctuations. You would be amazed at the fortune created for your retirement or to pass on to your children.

Note: This article was circulating on whatsapp

UTI announces bonus units in hybrid schemes

UTI announces bonus units in ratio of 1:10 each under following schemes

1. Retirement Benefit Pension Plan
2. Unit Linked Insurance Plan
3. Childrens Career balanced Fund

Record date is September 01, 2014

Simple Financial Planning everybody MUST Do !

The most simplest of financial plan at least this must be done by every Individual.

1. Medical Insurance : Take a Family floater plan for medical emergencies (Bank of Baroda, Bank of India provides the cheaper solution for family of four)

2.TERM Insurance : Take Pure Term Life cover (Term Insurance is the CHEAPEST form of insurance). Ideally you should have Insurance cover of around at least 15 times of your annual income.

3. Emergency Funds : Put around 3 months of expense amount in liquid fund or savings bank account.

4. Investments Funds:
    a) Do SIP in a TAX savings ELSS Equity Mutual. /  PPF Investment can also be done.
    b) Do SIP in a 2 or 3 Large cap Funds / 1 Midcap Fund
    c) Park Lump sum money in short term funds for Asset Re balancing and Asset Allocation.

5. If you cannot do above then simply do SIP in a Balanced Fund.
 
NOTE:
Important Goals you need to consider.
1. Retirement Planning for SELF and wife
2. Childrens Marriage
3. Childrens Higher Education
4. own House

TIP: Learn to say 'NO' to all complicated insurance products promoted by Bank Manager, RMs, sales call,and tele marketing.

15 years Sip returns of ICICI Top 100, SBI Magnum Multiplier, HDFC Top 200 with graphs

Sip returns of the following funds have been taken for 15 year period starting May 1999 till April 2014

If somebody invest Rs 3000 per month starting from May 1999 in following funds you can see how the funds would have grown with investments of Rs 5.4 Lakhs  (3000 * 12 months * 15 years)  to Rs 24 Lakhs in ICICI Top 100 and Rs 24 Lakhs in SBI Magnum Multiplier Fund and a whopping Rs 34 Lakhs in HDFC Top 200 Mutual Fund. 

ICICI Top 100

SBI Magnum Multiplier

HDFC Top 200

Blue line shows your Investment and Red line shows your returns.

Reference :  advisorkhoj

banks delay one days interest on savings account while clearing cheque

http://moneylife.in/article/bank-customers-deprived-interest-income-due-to-delay-in-cts-clearances/37252.html

Top Performing Mutual Funds for the year 2013-2014

Top performing funds for the year ending 2013-2014 are as follows

LARGE CAP FUNDS
1. Reliance Focused Large Cap Fund - 26.6%
2. ICICI Pru Top 100 Fund               - 26.1%
3. Birla SL Top 100                           - 25.9%
4. Birla SL Long Term Advantage      - 25.7%
5. Motilal Most Shares M50 ETF       - 25.7%


MIDCAP FUNDS
1. UTI Midcap Fund            - 41.4%
2. SBI Midcap Fund            - 41.0%
3. HSBC Small cap             - 35.7%
4. Franklin Smaller Cos        - 34.9%
5. Mirae Emerging Bluechip - 34.1%


ELSS FUNDS
1. Axis Long Term Equity     - 36.5%
2. Reliance Tax Saver ELSS - 32.6%
3. ICICI Pru Right fund         - 31.6%
4. SBI Tax Advantage sr-2    - 29.7%
5. ICICI Pru Tax Plan            - 27.9%

However in this period broader indices has grown as follows.
Nifty    - 17.5%
Sensex - 18.7%
Midcap - 13.9%