Tax planning has changed radically over a period of time. Since its time for filling income tax returns for 2007-2008 as the end date (31st march 08) is approaching. As a tax payer you need to understand the best way through which you can make use of the exemptions provided by the government. Earlier people had limited choice of tax saving instruments to be used for the purpose of tax planning. But now with the ELSS (Equity Linked Saving Schemes) launched by most of the mutual fund companies, the whole approach towards tax saving has changed. With mutual funds tax planning had become more important part of over all investment planning. With equity linked saving schemes the tax exemptions can be used in a manner such that you not just disciple your investments but also create good corpus through equity investment.
Tax planning for resident Indians
We recommend tax saving funds, also referred to as Equity-Linked Saving Schemes (ELSS). One such reason is that their benefits are too much to ignore as they hold almost all the benefits of an equity mutual fund.
For one, they do not have any restrictions. If you choose to, you can invest the entire Rs 1 lakh available under Section 80C in these ELSS funds.
They give you the benefit of higher returns. You can get 8 per cent with your PPF and NSC. But if you can get a 40-50 per cent return, coupled with a tax benefit, whats wrong with it?

How do you invest in an ELSS scheme? It is as simple as investing in any other mutual fund schemes. You just need to fill the form of particular ELSS scheme in which you want to invest. Submit it through any transaction point with the required document i.e. usually PAN card and KYC form. Thats it your work is done. You can know more through website. In this you can get the understanding of selecting any scheme and filling the form.
The benefit 3 Years lock in period for ELSS schemes.
Secondly, if you hate blocking your money for years on end, then this one surely made for you. The lock-in period for ELSS funds is just three years. When you sell after three years, you pay no capital gains tax. So, you get the tax benefit when investing and you pay no tax on your profits.
The best way to invest in a mutual fund is investing systematically through out the year using SIP. So you commit to putting away a fixed amount every month in mutual funds. This is an automatic savings habit that will hold you in the long run and help you not only to save but also invest regularly and continuously in the capital market through equity linked saving schemes (ELSS).
You need to be consistent in your investments to do well. The wonders which a disciplined investment can do cannot be replicated by even the best of investment strategies.
Want to know about the top mutual funds for Tax Saving?
Most of the Mutual fund companies have come out with tax saving funds. They are Equity Linked Saving Schemes (ELSS). The funds collected under this tax saving schemes are invested in equity instrument, thus providing better returns. Many of these ELSS funds generate as much returns as a diversified equity fund. With the awareness been increasing among the investor class, the equity linked saving schemes are gaining popularity among the investor class. To know more you can visit Godmind and get the collection of recommended tax saving fundswhich is been provided by Godmind advisors. Also you can ask the Mutual fund Advisors on which ELSS (Equity linked saving scheme) fund to invest in.
Take step towards informed mutual fund investment by investing with care and due diligence.

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Investing in mutual funds has emerged as the new buzzword amongst consumers in order to save money. But, for first time investors it requires a little bit of knowledge about the current market scenario. You need to keep in mind that when you are buying mutual funds you are actually investing in the shares of a corporation. You need to master the art of maximizing returns and minimizing risks to benefit most by investing in mutual funds. In terms of variety, flexibility and liquidity mutual funds are perhaps the best option.

A recent media poll confirmed that mutual funds are the most popular choices amongst investors primarily because of its risk-free nature. Mutual funds have its own share of advantages, which make it a preferred choice amongst most investors, big or small. Many people see it as an effective tax saving tool. Mutual funds have infact, took precedence over the traditional options of national saving certificates and public provident fund to save money.

If you are a starter, there are many courses which will provide you a veritable mine of information on how you can buy and sell your mutual funds to extract the maximum profit and save money through investing.

Higher risk mutual funds, however, work best when you want to make short-term investments. The Internet these days is replete with information on mutual funds. Even investors with no investment experience go for mutual funds to save money. Many consider award-winning funds as the most suitable investment option for people. But you need to bear in mind that the funds falling in the award-winning category may not suit your interests best.

Careful fund management and proper market survey can go a long way in helping you to save your taxes through mutual funds. Do not be hesitant to take the help of mutual fund brokers in case you are not sure about whether you are taking the right move or not.

Winning the battle of life becomes all the more easier with investing in mutual funds. So it makes sense to invest in mutual funds to make you capable enough to sail through even the worst financial situations of life without having any tension.

If retirement blues is haunting you or you are worried about your kid’s future take heart. With investing in mutual funds you can save enough money to lead a happy and peaceful life. Let mutual funds ensure that you do not work for money, instead the money works for you.

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Segregated funds offer the following major benefits that are not offered by the traditional mutual fund.

1. Segregated funds offer a guarantee of principal upon maturity of the fund or upon the death of the investor. Thus, there is a 100 percent guarantee on the investment at maturity or death (this may differ for some funds), minus any withdrawals and management fees – even if the market value of the investment has declined. Most segregated funds have a maturity of 10 years after you initial investment.

2. Segregated funds offer creditor protection. If you go bankrupt, creditors cannot access your segregated fund.

3. Segregated funds avoid estate probate fees upon the death of the investor.

4. Segregated funds have a “freeze option” allowing investors to lock in investment gains and thereby increase their investment guarantee. This can be powerful strategy during volatile capital markets.

Segregated funds also offer the following less important benefits:

1. Segregated funds issue a T3 tax slip each year-end, which reports all gains or losses from purchases and redemptions that were made by the investor. This makes calculating your taxes very easy.

2. Segregated funds can serve as an “in trust account,” which is useful if you wish to give money to minor children, but with some strings attached.

3. Segregated funds allocate their annual distributions on the basis of how long an investor has invested in the fund during the year, not on the basis of the number of units outstanding. With mutual funds, an investor can invest in November and immediately incur a large tax bill when a capital gain distribution is declared at year-end.

There has been a lot of marketing and publicity surrounding segregated funds and how much value should be placed on their guarantee of principle protection. In the entire mutual fund universe, there have been only three very aggressive and specialized funds that lost money during any 10-year period since 1980. Thus, the odds of losing money after ten years are extremely low. If you decide you need a guarantee, it can cost as much as 1/2 percent per year in additional fees.

However, with further market volatility these guarantees could be very worthwhile. In addition, most major mutual fund companies also offer segregated funds.

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Investing in mutual funds has emerged as the new buzzword amongst consumers in order to save money. But, for first time investors it requires a little bit of knowledge about the current market scenario. You need to keep in mind that when you are buying mutual funds you are actually investing in the shares of a corporation. You need to master the art of maximizing returns and minimizing risks to benefit most by investing in mutual funds. In terms of variety, flexibility and liquidity mutual funds are perhaps the best option.

A recent media poll confirmed that mutual funds are the most popular choices amongst investors primarily because of its risk-free nature. Mutual funds have its own share of advantages, which make it a preferred choice amongst most investors, big or small. Many people see it as an effective tax saving tool. Mutual funds have infact, took precedence over the traditional options of national saving certificates and public provident fund to save money.

If you are a starter, there are many courses which will provide you a veritable mine of information on how you can buy and sell your mutual funds to extract the maximum profit and save money through investing.

Higher risk mutual funds, however, work best when you want to make short-term investments. The Internet these days is replete with information on mutual funds. Even investors with no investment experience go for mutual funds to save money. Many consider award-winning funds as the most suitable investment option for people. But you need to bear in mind that the funds falling in the award-winning category may not suit your interests best.

Careful fund management and proper market survey can go a long way in helping you to save your taxes through mutual funds. Do not be hesitant to take the help of mutual fund brokers in case you are not sure about whether you are taking the right move or not.

Winning the battle of life becomes all the more easier with investing in mutual funds. So it makes sense to invest in mutual funds to make you capable enough to sail through even the worst financial situations of life without having any tension.

If retirement blues is haunting you or you are worried about your kid’s future take heart. With investing in mutual funds you can save enough money to lead a happy and peaceful life. Let mutual funds ensure that you do not work for money, instead the money works for you.

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When you invest in mutual funds you are investing in not only funds but full time management of your funds by knowledgeable brokers. These managers you will take care of all of your investments from buying, selling and trading so all you have to do is sit back and watch your investment grow because the mutual fund mangers handle all of the work for you. Also, your mutual fund manager will make the best possible investments for you because the mutual fund companies are always working with analysts to get the most up to date information on companies and the investment world.

When you invest in mutual funds you will also be able to access your money quickly and easily if you need to. In most cases individuals make an investment for a long period of time, however sometimes emergencies develop where you need money quickly. In these instances you will be able to sell all or most of your shares for the market price and get the money immediately. That is good to know.

Also, when you invest in mutual funds your money will be invested in a wide variety of investments which would be nearly impossible for you to do on your own. The reason it is good to have your money invested in hundreds of different of investments is that the ups and downs of the market do not affect you as much and also your risk of loss decreases. So, investing in mutual funds is really a good option for people who want to make the most of their investment and the return on their money.

In addition to all of these benefits, when you use a mutual fund company to make your investments for you then you will also receive additional services. In general, these benefits include automatic reinvestment, transfer of funds electronically, and other services as well.

If you have investments that are not performing as you would like or are considering making some investments, then go ahead and look into investing in mutual funds. You will be amazed at the ease of investing in mutual funds and the potential growth you will see on your investments. However, make sure you use a credible mutual fund company to make your investments for you.

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Tax planning has changed radically over a period of time. Since its time for filling income tax returns for 2007-2008 as the end date (31st march 08) is approaching. As a tax payer you need to understand the best way through which you can make use of the exemptions provided by the government. Earlier people had limited choice of tax saving instruments to be used for the purpose of tax planning. But now with the ELSS (Equity Linked Saving Schemes) launched by most of the mutual fund companies, the whole approach towards tax saving has changed. With mutual funds tax planning had become more important part of over all investment planning. With equity linked saving schemes the tax exemptions can be used in a manner such that you not just disciple your investments but also create good corpus through equity investment.
Tax planning for resident Indians
We recommend tax saving funds, also referred to as Equity-Linked Saving Schemes (ELSS). One such reason is that their benefits are too much to ignore as they hold almost all the benefits of an equity mutual fund.
For one, they do not have any restrictions. If you choose to, you can invest the entire Rs 1 lakh available under Section 80C in these ELSS funds.
They give you the benefit of higher returns. You can get 8 per cent with your PPF and NSC. But if you can get a 40-50 per cent return, coupled with a tax benefit, whats wrong with it?

How do you invest in an ELSS scheme? It is as simple as investing in any other mutual fund schemes. You just need to fill the form of particular ELSS scheme in which you want to invest. Submit it through any transaction point with the required document i.e. usually PAN card and KYC form. Thats it your work is done. You can know more through website. In this you can get the understanding of selecting any scheme and filling the form.
The benefit 3 Years lock in period for ELSS schemes.
Secondly, if you hate blocking your money for years on end, then this one surely made for you. The lock-in period for ELSS funds is just three years. When you sell after three years, you pay no capital gains tax. So, you get the tax benefit when investing and you pay no tax on your profits.
The best way to invest in a mutual fund is investing systematically through out the year using SIP. So you commit to putting away a fixed amount every month in mutual funds. This is an automatic savings habit that will hold you in the long run and help you not only to save but also invest regularly and continuously in the capital market through equity linked saving schemes (ELSS).
You need to be consistent in your investments to do well. The wonders which a disciplined investment can do cannot be replicated by even the best of investment strategies.
Want to know about the top mutual funds for Tax Saving?
Most of the Mutual fund companies have come out with tax saving funds. They are Equity Linked Saving Schemes (ELSS). The funds collected under this tax saving schemes are invested in equity instrument, thus providing better returns. Many of these ELSS funds generate as much returns as a diversified equity fund. With the awareness been increasing among the investor class, the equity linked saving schemes are gaining popularity among the investor class. To know more you can visit Godmind and get the collection of recommended tax saving fundswhich is been provided by Godmind advisors. Also you can ask the Mutual fund Advisors on which ELSS (Equity linked saving scheme) fund to invest in.
Take step towards informed mutual fund investment by investing with care and due diligence.

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Investors as a whole are primarily allocating their new investments to a small number of mutual funds and to a smaller number of mutual fund companies. Investors have invested over $400 billion in the 2843 different mutual funds, but one-third of those assets are invested in only 50 of those funds and one-half of those assets are invested in the largest 100 funds.

There are benefits to following the market leaders. Larger mutual fund companies and larger funds have the ability to reduce costs and attract the best professional money managers. However, the biggest limitation is that today’s better-selling mutual fund may not be tomorrow’s winner. This is true for any mutual fund but it seems to plague the best seller, and the one that garners the most attention, the most often.

So buying the equity fund that was yesterday’s best-seller isn’t a strategy that produces excellent returns. You do not have to go fully in the opposite direction and ignore these hot funds, but you should understand their limitations and strengths. They became best-selling funds because they have merit, but you have to access that merit within your own well-diversified portfolio, and not the crowd’s current investment trend.

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A hedge fund is thus a private investment fund, which invests in a variety of different investments. The general partner chooses the different investments and also handles all of the trading activity and day-to-day operations of the fund. The investor or the limited partners invest most of the money and participate in the gains of the fund. The general manager usually charges a small management fee and a large incentive bonus if they earn a high rate of return.

While this may sound a lot like a mutual fund, there are major differences between mutual fund and hedge fund:

1. Mutual funds are operated by mutual fund or investment companies and are heavily regulated. Hedge funds, as private funds, have far fewer restrictions and regulations.

2. Mutual fund companies invest their client’s money, while hedge funds invest their client’s money and their own money in the underlying investments.

3. Hedge funds charge a performance bonus: usually 20 percent of all the gains above a certain hurdle rate, which is in line with equity market returns. Some hedge funds have been able to generate annual rates of return of 50 percent or more, even during difficult market environments.

4. Mutual funds have disclosure and other requirements that prohibit a fund from investing in derivative products, using leverage, short selling, taking too large a position in one investment, or investing in commodities. Hedge funds are free to invest however they wish.

5. Hedge funds are not permitted to solicit investments, which is likely why you hear very little about these funds. During the previous five years some of these funds have doubled, tripled, quadrupled in value or more. However, hedge funds do incur large risks and just as many funds have disappeared after losing big.

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