Friday, April 13, 2007

Mutual Funds Investment to save tax

This is little late I guess but I could not stop myself from scripting down my thoughts on it. I called up Mr. Sunil Joshi, finance manager of multinational company for an appointment I could not get through his secretary. I sought to meet a hot shot fashion designer for my cousins weeding dress; she didn’t have time to meet for 3 days. I called up my old school principal, he also was busy for next 1 week. I register a complaint for my new Washing machine buzzer problem, the service engineer was nit available. I asked my maid to come little early for work , even she replied to me in negative. This all was during the month of March. The reason for all this was just one. No not that they all are getting married or are on vacation; all had to fill up the Income Tax. Yes it’s March ending as they say from other side of phone. It seems that whole country is busy in this month to save tax , OOPS! Pay tax, I should say. And I am no exception to it. As a good citizen I also pay tax every year.

My discussion with several mutual fund manager make me feel that every one want to save their funds and avoid paying tax. Your fund manager will present you with some top tax saving mutual fund scheme. Talking to these fund managers I got some ideas of top mutual fund in the market. So in the end even I ended up in investing my money in some open ended mutual fund scheme. There are several pros and cons that one has to look into while investing in these mutual fund. I would share some of my experience with mutual fund with you.

Basically there are two types of mutual fund scheme, i) open-ended and ii) closed ended fund. Mutual funds that save you from paying tax have 3 years of locking period. It means your money is at least block for min. 3 years. These mutual funds are subjected to market risk. All these funds are then invested in buying equity shares and other investment ground. The fund value is calculated on NAV (Net Asset Value) . Your profit depends upon the NAV of that particular mutual fund. In all these the most important factor is the Mutual Fund Manager. He is the one on whose decision the end performance depends. So while investing in mutual fund please get full information of the Fund Manager and also look out for NAV along with last 3-4 years performance of the fund manager. Some of the better knows Asset Management Companies are ICICI Prudential, Reliance Fund Management, Birla Sun life, ING VYSYA, ALLIANCE CAPITAL, HSBC, KOTAK MAHINDRA etc. But please do good research before investing your hard earn money in any of these mutual fund scheme.

In the end I would like to request you all to pay your taxes. It’ this taxes that government utilizes for our benefits by building infrastructures and providing subsidies on important thing.

Your comments and suggestion are welcome.



sandeep said...

hey what a coincedence even some mutual fund guys meet me this week hey do we knw each other or what ..??? and i like ur last line we need to pay taxes so that Govt needs money i dont mind it as long its withing range and as long it serves its purpose

Narendra said...

where u stay?
what kind of info u will put in ur blogs?
Do u like spirituality?
if SO, u can mail me

c u

suhas_bpt said...

Your article was nice. But it is focused only on tax savings which create impression that Mutual Fund investment are used only for tax saving purpose. But the fact is that Mutual Fund is a good option for those who afraid to invest DIRECTLY in stock market but wish for higher returns. For them also investment in Mutual Fund is a good option, especially in open-ended scheme.
What are your other areas in which you write?

velu said...

hi stella how are you.i received your mail. you are so beautiful. shall we become friends.
this is velu from Mangalore. i am working in HCL.
ok bye bye keep in touch

chaitu said...

The article is good - Could you be more specific to companies - We have Max New york Life and Standard Chartered and Franklin Templeton (Pioneer)

There was an Policy that LIC has issued against IRDA rules and its cancelled - this will be useful for the readers

govind said...


stella your views are good, your views give insperation to others .keep writing

Yogesh N said...

Hi Stella,

Hope you are well and fine. I understand what you said
about the marriage of Abhi and Ash. Apparently it
seems that neither media nor people are left with much
of work rather than talking of things which are talk
of the town. We ourselves make it happen stella. What
I mean to say is that, theres no point in
unnecessarily discussing about the marriage of Abhi
and AsH, leave apart what they gonna wear. Lol, it
feels and sounds so funny that media which is said to
be one of the pillars of society rather being involved
in int's basic work of bringing things which are
necessarily to be brought to light is working on
marriages and covering it. Whther it's not publicity
stunt??? Is media really meant for this??? As of
common man, though they understand they are wasting
their time, but then it has become habit now to waste
time and somehow to kill it so as to drag the day till
it's end, then go back home and sleep. May be I may
sound a bit harsh, but then I can't help it. Its
surprising what ultimately people will gain discussing
abt Abhi and Ash's marriage. Some kind of gain????
No!! But then it's habit now. Can't help it.
It's nice to receive your mail. Sure, I would love to
be friends.

Take care and stay in touch!


senthil said...

hi Stella,
Your thought is good, and your comment is informative

Anonymous said...

thanks for the information your providing to all the friends.bye.


Anonymous said...

hi stella u are so smart pls take care and injoy ur beautiful life

amarnadh said...

Hi Stella

Nice are nice thoughtful girl.your giving your all expressions here.
have a nice day .see by some where..........

giri said...


I have invested in mutual funds this is the first time am investing in something.I have few doubts can anyone help me in those.If i get a good feed back i wil shoot my doubts


Anonymous said...

Hi Stella,

I would like to add one more point
If u like to invest in MF that's good but don’t go for ULIP plan
In ULIP plan they invest 50% of your money only other rest will be used as there service fee and taxes
Go for pure insurances policy for your feature plan

If u have quires please write to me

Sigamani said...


Your last part of this blog, sounds good(about paying taxes) our country only salaried ppl are forced to pay taxes through TDS, otherwise only some will left out paying taxes... So government should take steps to increase the percentage of tax paying people..


indianist said...

How to select a Mutual Fund? and Pls give some information on mutual fund, which mutual fund is good to invest?

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