How to Calculate Mutual Fund Returns?

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EVERY investor looks at the returns that they earn from mutual funds but often do not realise the importance of what the numbers say. Even more opaque is the situation about the manner in which the returns are actually calculated and how the details change with a change in some of the market conditions. It is important to understand what each of the figures actually mean and how they can be interpreted. Here is a closer look at the issue.

Returns:

 

Most people look at the returns from their mutual fund holdings and then decide about the performance of their fund.

These returns are often for a short time period and people tend to ignore the way in which they are calculated. The time period related to the returns matter because they will determine the way in which these are actually calculated. The actual figure is less important as compared to the manner in which these are calculated. There are two ways in which this is actually done.

Point to point returns:

As the name suggests, these returns are calculated from a certain point to another point. This means that there would be two time periods between which the figure would be calculated.

For example, if you are looking at a one-year return then you take the last net asset value and the figure for one year before and the value now. This is a clear example of a point-to-point return and it is a very simple way to calculate. What is important is that this return can be shown in a couple of ways. One is the absolute figure, where this route is used usually for a period that is less than a year. This will ensure that the returns for this period are actually what is seen so here there is a change of the amount that has been actually earned in the time period. So for example, a 15 per cent actual change over nine months represents the absolute return.

Annualised return:

Another way of showing the return is to make this annualised in nature. This is done when the time period is more than a year. For example, if the investor has invested for a period of three years, then at the end of this period if he is told that the returns that you earned in absolute terms was 55 per cent then this might not give a complete picture. In such a situation, if the investor is told that this is a certain annualised rate then it becomes easier to understand as the figure is actually brought down to an annual figure. The annualised figure is the return figure compounded over the specific time period. Also this can then be compared with other figures that are present in terms of the other instruments that are available in the market. The annualised return makes it easier to look at the various figures and it brings an element of standardisation to the returns

Selection of period:

 When it comes to the actual return, the selection of a certain time period is important because of the way in which market conditions can affect the situation. In case of a sudden rally or a slump in the equity markets, the immediate as well as the overall returns would be impacted. This can distort the figure and hence, the time period for which the returns have been calculated are important. This will enable the investor to understand how the situation has actually shaped up and what they have actually earned. A comprehensive look will also enable them to make better decisions with respect to their investments.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief ‘96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

Invest in Returns higher than Inflation after Retirement

Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

Allocate funds keeping higher life expectancy in mind, do not forget to prepare a will

The prospect of retirement often brings some people face to face with the hard reality that in some months they will not be working anymore. For many, retirement also means that from then on they have to be careful about having enough funds that will outlast them. With the rate of inflation going up at high single digits or, at times, in low double digits, this could be a daunting task for many as they fail to take judicious steps just at the time of retirement or may be a few months before that happens.

Here we will discuss some of the issues that just-retired people or who are on the verge of retirement face and how they should address them.

 

People who are about to retire or have just retired have several things on their mind which for some reason they could not take up during their working years. During their entire earning phase, they may not have availed the services of a financial planner but have some savings which they think are enough to outlast them in their sunset years. However, there’s a checklist why those savings may not be enough.

One wants to keep up with inflation but the cost of living — like energy, housing, food, etc — has dramatically increased, often outpacing retirement income and savings. The result is a lot of people heading into retirement need to supplement their income to cover expenses.

How to maintain the pre-retirement lifestyle, and not willing to forego things that one was used to. It is assumed that financial needs decrease after retirement. However, this may be an overstatement and by most estimates one would need at least 70-80% of the final working years’ income each year to maintain the same lifestyle after retiring.

In addition, the pension income may become inadequate, which offers a return of just about 6-7% and does not beat inflation. There could be pending obligations such as a daughter’s wedding or some debt to pay off or simply one did not start saving early enough.

Gandhi pointed out that since people are living longer and much healthier than before, after retirement one may seek new challenges and invest into a new business to stay active physically and mentally. But starting a business requires capital and that can have some impact on your post-retirement corpus.

According to Mukund Seshadri of MSVentures Financial Planners, there is also a checklist of dos and don’ts that just-retired people should follow. Firstly, the person should complete the full and final settlement with the organization where he/she was working. This may bring out some hidden funds and that will give the complete picture of the financial situation of the individual. The individual should fill up all the relevant forms immediately and get these funds transferred to his/her account as soon as possible.

Then comes the time to sit with the spouse and decide on the future plans which, in turn, would give some idea about future expenses of the two. The next step is to check all the current investments, make proper nominations to all the investments, update your KYC (know your client) formalities, check if all the names and addresses are correct or not, and keep all documents in order and up to date.

And finally, which is very important, Seshadri advises every retired person to make a will. It is not necessary to register a will but it should have at least two witnesses — preferably the family doctor and a financial planner/ advisor — and the witnesses should not be the beneficiaries in the will, financial planners said.

Making a will may be a very sentimental thing, but it also has huge legal and practical implications.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief ‘96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

Know the Status of Land

Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

You all know the price of land in India particularly in the metro’s .Isn’t it phenomenally high? In India isn’t land encroachment and land grabbing a common phenomenon? .Let us consider the city of Bangalore. A few years back the real estate mafia had grabbed even landfills. An area of 53 acres costing Crores of rupees was encroached upon. At least 35000 acres of land has been encroached upon such as government land, agricultural land, garbage land and even lakes. Even Lakes… You Must Be Shocked? .You must have heard of the Kadugodi Lake at Whitefield. This lake has a huge catchment area which is encroached upon .The water from this lake is extracted ,filled in tankers and sold to the residents of Whitefield at about INR 2000 per tanker. A new compound and a building have come up in the catchment area of the Kadugodi Lake .The water mafia has dug up a number of bore wells on the lakebed to extract water. Planting of Eucalyptus trees is done by these mafias in the catchment area’s whose roots suck up the water and turn the land barren. This land is then sold to commercial establishments. A number of concerned citizens have joined together and raised awareness about this problem. “Save Our Lakes Campaign” was launched by the esteemed citizens of Bangalore in order to protect the Kadugodi Lake and other lakes of Bangalore

 

Land Disputes And Land Grabbing: A Common Occurrence In Bangalore:

Let us consider the following case which had occurred in Bangalore a few months back .A J P Nagar Resident had relinquished his land for the Bangalore Metro Project. This property was part of the Bangalore Development Authority Layout and was measured at 1500 square foot .The city survey department then surveyed the land and measured it as 1530 square feet. The Karnataka Industrial Area Development Board agreed to compensate him for the excess land provided he got the BDA approval. We have the famous Balasubramanian report of the Karnataka task force for recovery and protection of public land, the “Laughing Waters” residential complex at Whitefield was built on 40 acres of stolen Government land with the original grant given for a Chicory plant. Similarly there are a number of cases in Bangalore where accurate land records do not exist. This leads to disputes of ownership and property.

A Stitch In Time Saves Nine:

In order to resolve the land encroachment problem the government has a grand plan to start surveying and creating records for all properties in Bangalore. The Urban Property Ownership Records are being implemented in Bangalore and the project will start at the beginning of next year. The Department of Survey, Settlements and Land Records will be in charge of this project. Under the UPOR each property will be surveyed, the records verified and the owner will be issued a property records card. A unique Plot ID will be assigned to each property .It will have details such as Plot area, Owner’s name, Mortgage Details, History Of Transactions, and an Overview map. Unlike the khatha and sale deed which are documents of property tax and registration, the Property Registration Card will establish the title to the property and is a solid document to establish ownership of the land.

How Will The Property Registration Card Work?

·         This card will have details of the Property liabilities, The property map, The property boundary, Details on the lease deed and so on. This project will be completed in about 3 years and about 16 Lakh properties will be registered. There would be disputes with about 30% of the cases .The remaining 70% will be issued the Property Registration Card.

·         The property card issuing process will involve leading banks so that the liability status of the property is up to date.

·         All the property data is computerized and this helps to eliminate fraud.

·         We have noticed rapid urbanization and development of the rural land areas in Bangalore. All villages on the border of the city are being converted to urban lands. This leads to confusion in property demarcation and boundary mapping. A property registration card will provide owners of all properties in the city a clear boundary demarcation of land and eliminate frauds.

·         Once this UPOR is in place no registration process can be done without handing over or showing the Property Registration Card. All details are available pertaining to the land in the property registration card. If the property is in an area where agricultural land has been used for non agricultural purposes without obtaining land conversion permission the PR card is still issued but the remarks section will mention the violation of the land. Nothing can be hidden from the buyer.

·         To get the property registration card the owner must provide the khatha (tax certificate) issued by the local body, Registration certificate issued by the Registration Department, Title deeds and other documents necessary during the Property Registration and Verification process in order to get the PR card. Those who do not have the necessary documentation will not get the PR cards.

·         Property Owners can buy cards at INR 400-500 depending on the size of the property. Houses in slum areas may be charged around INR 250 and high end areas an amount of INR 600.

 

The Bhoomi Project:

The Bhoomi project is the land record management project of Karnataka. This project is jointly sponsored by the State Government of Karnataka, Government of India, and the Ministry Of Rural Development. The project involves computerization of land records. This project has computerized 20 Million records of land ownership of 6.7 Million farmers in the State .Farmers can track and access this database and know the status of their land .The Rights, Tenancy and Crop Inspection Register can be obtained online by providing the name of the owner or plot number at the computerized land record kiosks in the 177 Taluk Offices for a fee of INR 15.If the revenue inspector does not complete the registration process within 45 days the farmer can approach a senior officer.

Important Features Of The Bhoomi Project:

·         An Excellent Software is available for printing records of land ownership.

·         Real time updating of RTC records keeps farmers updated on the position of their agricultural land.

·         A Biometric system for farmer land record data registration and updation is available mainly using fingerprint data.

·         The original records are scanned and the signatures of the Revenue Inspector are recorded and responsibility is fixed on the concerned Revenue Inspector not only by showing the original documents signed by him but a digital copy is also maintained.

·         Based on this software the topography of the land, land size, type of soils, types of crops grown is recorded and real time information is available for the administrators to take the necessary decisions.

·         We have computer centers where land mutation mainly records pertaining to transfer of title deeds to the buyer is done in an online fashion. We have finger print recording and scanning of the relevant documents.

·         We have land record kiosk from where the farmers can collect the relevant data by paying INR 15.Farmers can see their land related information without anybody’s aid or assistance.

 

The Role Of Bruhat Bangalore Mahanagara Palike:

·         The BBMP has developed a GIS (Geographic Information System) Based property tax system in the BBMP Jurisdiction area.

·         BBMP has provided a unique Property Identification Number (PID) to each and every property in Bangalore.

·         A unique street number has been assigned to each and every street.

·         BBMP has launched a web based search engine which will provide the PID for each property.

·         Updated systems to calculate property tax.

·         A khatha registration system has been implemented.

·         Online scanning and storing of Documents to maintain the authenticity of the certificates.

 

I would like to end this article with the famous saying” If Men Were Angels No Government Would Be Necessary”. You know that this is not true. Any opportunity to usurp land is taken with both hands. Wouldn’t it be prudent if we protect and safeguard our property using these online systems which the government has provided? So what are we waiting for? Let us get moving towards protecting our loved and prized land assets.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief ‘96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund