Earlier no Entry Load was imposed on SIP's, now most of the Leading funds have imposed it, I think its a bit too much and severy affects the advantages of SIP investments.
If some charges were made quarterly or in 6 months it would have been better, rather than charging for each month investments, takes out the attraction of SIP.
sir my income tax is around Rs50000.i have CPF&VPF around Rs40000 .i have already invested Rs10000 in icicilife line-IIpension plan.i want to invest anoter Rs 25000 in taxsaving mutual funds.pleas tell me what are te best funds wit minimum risk & maximum return.
RE:best tax saver mutual funds
by Investment Opportunity on May 04, 2007 01:24 PM Permalink
Ideally you should invest in ULIPs that help you to save a great deal on taxes and simultaneously the fund gets the opportunity to grow depending upon the fund types that your risk profile allows you to choose. Swaps mwealth@rediffmail.com
Can you give me an advice ? Which will be better option?
1. SIP from an NRE account to an Equity fund of Mutuial Fund like Franklin Templeton Prima Fund. 2. STP from a liquid fund invested from an NRE Account to Equity Fund like Templeton Prima Fund.
In both the cases Tax implication need to be looked into. If SIP in considered then I presume there will be no TDS for the amont transfered from NRE account.
But if the amont is first invested in a liquid fund from NRE account and then if STP is adopted then every month TDS will be deducted from the installment being transfered to Equity Fund.
Please let me know as to which option is likely to yield better result in long term perspective?
I was able to understand SIP. what it is all about. But, i didn't understand the Entry and Exit Load. How they are calculated and how they cost more over a longer period of time. any clarification plz?
RE:SIP is great but I can't understand Load
by Investment Opportunity on May 04, 2007 01:16 PM Permalink
Hi Brajesh, Mutual Fund Companies add sales charges (or called loads) on their funds (entry load and/or exit load) to compensate for distribution costs. Funds that are purchased without a sales charge are called no-load funds. Entry load is charged at the time an investor purchases the units of a Mutual Fund scheme. Exit load is charged at the time of redeeming (or when exiting the Mutual Fund scheme). The entry / exit load percentage is deducted from the NAV. Swapan mwealth@rediffmail.com
