Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Read this interesting article......
I live in a centrally located area of Bangalore. A canal bifurcates the main road into the 'rich' and 'poor' areas. On the affluent side of the canal, hotels, restaurants and high rises dot the street. The real estate rates hover between Rs 12,000 and Rs 15,000 a square feet. On the other side — home to a garbage dump — the rates are about Rs 3,000 a square feet. I clearly know which side of the street offers a better quality of living, but how does one decide which side of the street is a better investment for the future? Pay a bomb and buy an apartment in one of the high rises, and expect high rental income, or invest low and hope that the eventual development of the locality and capital appreciation on the property will work in one's favour?
Unlike a stock market index, which captures the market conditions based on a basket of stocks, it is difficult to benchmark the performance of real estate, where the variations in real estate prices are alarming even within the same neighbourhood.
Many people are of the view that land can only appreciate in value. This is far from true. Just like demand and supply dictate market economics, so is the case with real estate. There are factors that can go beyond one's control in determining the true value of a property.
Even if a property has appreciated significantly in value, we tend to ignore frictional costs such as maintenance charges, registration costs, stamp duty, property tax, capital gains tax, lawyer fees, broker fees and other associated costs with real estate sales and purchases.
Another common misconception is that rental incomes can fund expenses after retirement. Apart from the hassles of finding a good tenant and maintaining the apartment on a regular basis, rental yields in India are on average between 3% and 5% pre tax. With inflation hovering between 6%-8%, rental incomes will seldom beat inflation.
Unlike financial instruments, real estate is also a very illiquid asset. In an emergency, it is difficult to sell a property in a pinch. If the property is sold in a hurry, the buyer takes advantage of the distress sale and bargains for a lower price. And the fair value of a property is not realized.
Equities, over the long run, tend to deliver average returns of about 16-17% annually, while some of the best real estate appreciations in cities have been in the range of 10-15%, excluding taxes and other costs. What's more, gains on equity are tax free after a year. They do not have the high frictional costs of real estate associated with them. Stocks or mutual funds can be bought and sold within a day at their actual prices on that day. Redemption proceeds can be in your bank within a week. In an emergency, financial assets like equities are much easier to access than real estate. With a high level of transparency in assets that they have invested in, no entry loads and low cost structure, mutual funds offer an efficient way to invest in equity. Over time, equities will outperform all asset classes by a significant margin. Get real about this, your estate value will grow faster.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
2.Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
No comments:
Post a Comment