DSP BlackRock Focus Fund

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HOW HAS DSP BlackRock Focus Fund PERFORMED? 
At 11.30%, the fund's 7-year return mirrors the benchmark index (11.41%) and has marginally outperformed the category average (10.60%). 

Should You Invest in DSP BlackRock Focus Fund? 
DSP BlackRock Focus Fund has executed its mandate of running a focused portfolio fairly well over the years. It takes a distinct large-cap tilt, investing at least 75% of its corpus in the segment. 

Currently, it has an even heavier exposure to largecaps.

The emphasis remains on picking businesses with healthy cash flows, return on equity and earnings visibility. The fund sticks with its focused approach, taking large positions in its top picks that allows meaningful contribution to the fund's returns. 

It is also heavily invested in the financials segment, which makes up around 40% of its portfolio. The fund's approach may results in bouts of underperformance, evident by its poor showing over the past year. Aggressive investors seeking a focused play on large-caps may find it a worthy long-term bet 

 

SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

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How to submit Form 15H, Form 15G

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How to submit Form 15H, Form 15G to avoid TDS on interest income

If you invest in a taxable investment like a bank fixed deposit (FD), recurring deposit or company deposit, the interest you earn gets taxed.

In most fixed-income products, unless it's a tax-free investment, since the interest income earned during the year has to be added to your income it will be taxed. In other words, the interest income is entirely taxable as per the individual's income tax rate of 5.2 percent, 20.8 percent or 31.2 percent including a surcharge of 4 percent.

The tax will be deducted at source (TDS) by the institution when the interest is paid to the investor. The amount of TDS can be adjusted later by the taxpayer while paying the annual taxes or at the time of filing the income tax return (ITR).

Here is how you can avoid paying TDS on your fixed income investments.

TDS limits
The institution will deduct tax at source only when the interest income exceeds a certain limit. If your interest income exceeds Rs 10,000 in a year, the bank will deduct 10 percent as TDS on the entire interest amount. At times, there could be more than one deposit in different branches of the same bank. In such cases, the interest amount is to be added up for TDS purpose. The TDS limit for interest income earned in company deposits is Rs 5,000.

What's new: From April 1, 2018, a new section has been inserted in the Income-tax Act, 1961, 80TTB, that allows a deduction up to Rs 50,000 in respect of interest income from deposits held by senior citizens. However, no deduction under section 80TTA shall be allowed in these cases. The Section 80TTA provides a deduction of Rs 10,000 on interest income from savings account in bank deposits and post office. For them the TDS, therefore, gets deducted only when interest income exce ..

Nature of deposits
The frequency of interest i.e. monthly, half-yearly or cumulative payments will not impact the incidence of TDS. The moment TDS accrues in the case of cumulative deposits or gets credited to the savings account of the taxpayer in the case of half yearly deposits, TDS is deducted by the bank provided the interest paid exceeds Rs 10,00 across all branches in aggregate during an FY

How to avoid TDS
You can submit a declaration Form 15G or 15H to avoid TDS on interest income. While Form 15G is for individuals below 60 years, Form 15H is for individuals above 60 years of age. One can submit these forms only when the tax on total income is nil and the aggregate of the interest received during an FY does not exceed the basic exemption slab of Rs 2.5 lakh and Rs 3 lakhs for senior citizens and Rs 5 lakhs for super senior citizens.

Penalty for wrong information
If you furnish these forms to the bank even if you are not eligible to submit them, you will be penalised. If a taxpayer makes a false declaration in Form 15G or Form 15H, and the tax sought to be evaded exceeds Rs 25 lakh, he could be subject to rigorous imprisonment which could range from 6 months to 7 years accompanied by a fine. In any other case, a taxpayer would be subject to rigorous imprisonment ranging from 3 months to 2 years with a fine under Section 277 of the Income-tax Act.

The table below shows the eligibility conditions.

Online filing
One can file these forms online as well instead of submitting them at a bank branch. Find it from your bank if your bank allows filing of Form 15G/H online through Net banking.

Steps to file Form 15G/H online ( May vary across banks)
Step 1. Log in to the bank's Internet banking portal with your User ID and Password
Step 2. Select Tax Section
Step 3. Click on Form 15G/H
Step 4. Fill in the necessary details
Step 5. Click on Submit
Step 6. Download the acknowledgment slip
Step 7. Save the Service Request number for your future.

What you should do
If you have held the deposit for more than a year, you need to submit a fresh form 15 G/H each financial year. And this should ideally be done at the start of every financial year. More importantly, remember that the interest earned is entirely taxable and hence, fixed deposits will work more like a wealth protection tool rather than one for wealth creation. Stay away from them unless your goal is 1-2 years away or if you are a senior citizen depending on r ..

 

 

 

 

SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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SBI Magnum Balanced Fund

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SBI Magnum Balanced Fund is now called SBI Magnum Equity Hybrid Fund

Earlier known as Magnum open-end, the scheme seeks capital appreciation from a balanced portfolio of equity and debt securities.

An old timer in the category, this fund has managed a consistent improvement in performance since 2012. This has enabled a strong climb in the rankings, from two to four stars recently.

SBI Magnum Balanced Fund maintains a steady state 75-25 equity-debt mix. The equity part is multi-cap, with a higher exposure to mid-cap stocks than that of the peers. The portfolio over time has featured a 68 to 70 per cent equity portion, with the rest in debt. Usually half of the equity portfolio is large caps and the rest is mid and small-caps. But the proportion has climbed to two-thirds in favour of large-caps lately.

In the debt portion, the fund invests both in G-secs and corporate bonds for higher accrual income. A portion of the debt portfolio is deployed in high-yielding credits (minimum rating of A-) with an aim to provide stability and increase the overall portfolio yield. The balance is managed more dynamically having exposure to government bonds and liquid AAA rated credits, keeping in mind the view on interest rates. The average maturity was at about seven years as of January 2018.

SBI Magnum Balanced Fund has kept ahead of both the benchmark and the peers over three and five years perod, beating the index by 1 to 4 percentage points and just about matching peer performance. After a slip-up in relative returns in 2016, the fund was back with a bang in 2017. The fund's long track record suggests that it has been a big outperformer in bull markets but trailed the indices in bear phases, with the NAV taking a sharp knock in 2008 and 2011. But the change in strategy since 2012 could help it in the future.

SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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EXCHANGE TRADED FUND VS INDEX FUND

Index fund

It is a type of mutual fund whose portfolio of stocks tracks an exchange index like the Sensex. So it is a passively managed fund with stocks in the same proportion as the index it's tracking and has a low operating cost and low portfolio turnover. However, it may not reflect the same returns as the index due to what is known as `tracking error'. This is because these funds also have a certain percentage of cash and other assets for liquidity.

Exchange traded fund

These are also mutual funds that track an index, commodity or bonds and have stocks in the same weightage as those in the index it tracks. However, the main difference is that these can be traded on the stock exchange during the day like other stocks and, hence, one needs a demat account to operate these. ETFs typically have higher daily liquidity and are more transparent.

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

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Historical Volatility

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Volatility most frequently refers to the standard deviation of the change in value of a financial instrument with a specific time horizon. It is often used to quantify the risk of the instrument over that time period. Volatility is typically expressed in annualized terms, and it may either be an absolute number ($5) or a fraction of the initial value (5%).

For a financial instrument, the volatility increases by the square-root of time as time increases. Conceptually, this is because there is an increasing probability that the instrument's price will be farther away from the initial price as time increases.

Historical volatility is the standard deviation of a financial instrument based on historical returns. This phrase is used particularly when it is wished to distinguish between the actual volatility of an instrument in the past, and the current volatility implied by the market.

Volatility of returns of a fund is measured by standard deviation which is a measure of total risk of a fund. Volatility indicates the tendency of the funds NAV (Net Asset Value) to rise and fall in a short period. It measures the extent to which the NAV fluctuates as compared to the average returns during a period.

A fund that has a consistent four year return of 3 %, for example, would have a mean , or average, of 3 %. The standard deviation for this fund would then be zero because the fund's return in any given year does not differ from its four year mean of 3 %. On the other hand, a fund that in each of the last four years returned -5%, 17%, 2% and 30% will have a mean return of 11%.The fund will also exhibit a high standard deviation because each year the return of the fund differs from mean return. This fund is therefore more risky because it fluctuates widely between negative and positive returns within a short period.

A higher standard Deviation means that the returns of the fund have been more volatile than a fund having low standard deviation. In other words high standard deviation means high risk.                              

SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com