Articles by ryan crown on ArticleSnatch.com

Pension Plans with Mutual Fund Investments.

Wed, 28 Jan 2009 00:00:00 -0500

Pension Plan helps the average investor to accumulate wealth over the period in order to meet his/her expenses after retirement. Usually it is the insurance companies that draw customers with the array of pension plans that they provide, but the lesser known fact is that Mutual Fund also manages pension products. Currently only one private sector mutual fund has a pension plan catering to the investor and there is more than one reason for you to look at this plan seriously. The Plan is none other than Templeton India Pension Plan (TPP), the countryâ€™s first and only central government approved private sector pension scheme under Section 88. In other words, investing in this pension plan will also provide you with tax saving benefits similar to tax saving Mutual Funds (ELSS) and other investing instruments such as National Saving Certificate (NSC) and Public Provident Fund (PPF). Though both tax saving mutual funds and pension plans are in the same investment genre as they offer tax-deduction benefits, both have varying rates. The investment amount on which tax benefits can be claimed by investing in tax-saving funds is restricted to a maximum permissible limit of Rs 10,000 (approximately). **End Summary** Topics: Pension Plan]]> Pension Fund]]> Tax Saving Mutual Fund]]> Tax Saving]]> Mutual Fund Investments]]>]]> About the Author: ]]> Investment and Financial Planner for a leading Mutual Fund House in India. To read more about Pension Plan with Mutual Funds click here .

Investments through Mutual Fund SIP Systematic Investment Planning.

Thu, 22 Jan 2009 00:00:00 -0500

There are a couple of ways that you can invest in a Mutual fund; one is a one time payment and the other through periodic investments. The later is termed to be Mutual Fund SIP. When you go for one time investments, you just hand over the cheque and you get your fund units depending on the value which is called Mutual NAV (Net Asset Value) of the units on that particular day. When you go in for this kind of investments a couple of factors creep in that determines the number of units you get. A small percentage of your investment is charged as an administrative fee and is termed as entry load. The other charge that is levied is the Mutual Fund NAV, which is the price of the unit of a fund. Say if you are investing Rs 9000/ and if one particular unit costs Rs 30/, then the total number of units that you get to purchase is 300. The other type of investment is done periodically instead of a one time down payment. This kind of investment planning is called Mutual Fund SIP (Systematic Investment Planning). **End Summary** Topics: Investment Planning]]> Mutual Fund SIP]]> Systematic Investment]]>]]> About the Author: ]]> Investment and Financial Planner for a leading Mutual Fund House in India. To read more about Investment planning with Mutual Fund SIP click here .

ELSS Secret of Tax Saving with Mutual Fund Investments.

Sat, 17 Jan 2009 00:00:00 -0500

As the name suggests ELSS (equity linked savings scheme), invests primarily in equity shares of companies. As per financial regulations, the scheme Fund manager has to invest 80% of the total amount in the equity shares and the remaining 20% per cent can be invested in other instruments like bonds, debentures, government securities and others. When you invest in ELSS your money is locked for a period of three years (minimum). Once you invest in tax saver funds you cannot withdraw the amount for three years, this acts as a blessing in disguise as tax saving funds generally yield high returns during a 3year period. The common man is basically afraid of investing his money in equity shares as he is afraid of loosing money. But a look at the recent past shows that investors who have invested in tax saver funds have never lost out on their money, rather tax saver funds have been the front runners in terms of returns to investors. A small illustration will clarify comprehensions. If you make an investment of Rs 1,00,000/ ( 1 lac), then under section 80c this complete amount is deducted from your gross income for that particular year. **End Summary** Topics: ELSS]]> tax saving]]> tax]]> mutual fund investment]]> mutual funds]]>]]> About the Author: ]]> Investment and Financial Planner for a leading Mutual Fund House in India. To read more about tax saving with ELSS click here .

Best Mutual Funds.

Wed, 29 Oct 2008 00:00:00 -0400

What are the criteriaâ€'s that comes in mind when an investor decides or chooses the best mutual fund to invest upon? A couple of important factors come into play here. The first is the total number of assets that are under the management of the fund manager for that particular fund: i.e the asset allocation and growth or yield of that fund with due course of time. Mutual fund investments are generally low risk investments when compared to individual stock investments. Hence when you create your investment strategy it is necessary that you define your goals and objectives and if you opt for mutual fund investments, itâ€'s necessary that you include it in your investment portfolio. Once that is done the next step would be determining the choice of the find. Other than the criteriaâ€'s mentioned other important factors include performance of fund, fund manager, fund family and buying and redeeming shares. Also prior to making a mutual fund purchase, review your account statements and those of your family to find amounts of investments in a particular mutual fund or family of funds to see if these transactions can be combined to obtain a breakpoint discount. **End Summary** Topics: Mutual Fund]]> Mutual Fund Investments]]> Best Mutual Funds]]> Ass]]>]]> About the Author: ]]> Investment planner and Fund Manger from India"'s leading Mutual Fund house. To read more about Best Mutual Funds click here .

Mutual Fund NAV

Thu, 28 Aug 2008 00:00:00 -0400

Mutual Fund Investments are subjected to Market risks, please read the offer document before investing”. This message is generally splashed on the screen after a commercial advertisement or printed in small letters beneath a banner advertisement. To put it in Layman’s words, funds vary and fluctuate with market conditions. If the market is on an incline then the value of the fund soars high, where as if the market is on a decline the value of the same fund dips considerably. Hence diversification or Asset Allocation is important. Say if you invest in three assets/ commodities at a time & you loose out on your dividends from the first investment you would still have the other two Assets to gain back your dividends and in the process balance your profits. It is here that the concept of Mutual Fund Nav (Net Asset Value) comes to play. On technical or pure professional terms Mutual Fund NAV’s are defined as the value of a Mutual Fund Investment, that is usually determined by computing the share of the Mutual Fund at the close of the Financial Market. It is also termed as Bid Price, NAV/Share, NAV/ Unit. **End Summary** Topics: Mutual Fund Investments]]> Asset Allocation]]> Mutual Fund NAV"s]]> Investment Planning]]> Financial Planning.]]>]]> About the Author: ]]> Investment Planner and Financial Advisor for Franklin Templeton India. To read about Mutual Fund NAV and Asset Allocation in detail click here and here

Growth Mutual Funds

Wed, 30 Jul 2008 00:00:00 -0400

A Growth Mutual Fund is more risky to be invested upon compared to an ordinary Mutual Fund but the premium or dividend that is derived is much higher then what is obtained from a normal Mutual Fund. Its performance is proportional to the performance of the Stock Market. That is when the Stock Market undergoes losses the value and price of the Fund falls rapidly compared to other Funds and similarly when the Market hits a high the price of the fund shoots up. People basically invest on Growth Funds keeping in mind long term goals. The reason, the logic behind the investment is that the companies, firms or organizations invested upon will grow in value, thereby allowing the fund to reap the benefits of large capital gains. Basically a Growth Mutual Fund is categorized into 1) Aggressive Growth Fund, 2) Capital Appreciation Fund, 3) Balanced Fund and 4) Crossover Fund. An aggressive growth fund basically aims for the highest capital gains and its investments are comparatively risky compared to the other Growth Funds. **End Summary** Topics: Mutual Fund Investments]]> Mutual Fund NAV]]> Growth Funds]]> Growth Mutual Funds]]> Asset allocation.]]>]]> About the Author: ]]> Financial Advisor and Fund Manager for Franklin Templeton India. To read about Growth Mutual Funds and Mutual Fund NAV in detail click here and here .

The Role of a Fund Manager.

Fri, 04 Jul 2008 00:00:00 -0400

The Prime Goal of a Fund Manager is to monitor and manage the securities (in the form of stocks, bonds amongst others) to meet the investment goals and objectives of the customers (investors). The services include financial analysis on the investments, the assets that are invested upon and the stocks selected. The plan and strategy that is implemented is also to be closely monitored so that in the longer run, risks on loosing out on major dividends can be avoided. A certified company investment advisor should conduct an assessment of each client's individual needs and risk profile. The advisor then recommends appropriate investments. The art of managing investments is an important aspect in it’s own right and involves a lot of money at a single moment taking care of trillions of dollars, euro, pounds and yen and other major Global economies. The budget of an investment management firm directly depends on the Asset Allocation that is made by the Fund Manager for the investors. Asset Allocation involves a lot of money at stake at a go, because at one time you are investing one more than one commodity. **End Summary** Topics: Fund Manager]]> Mutual Fund Investments]]> Asset Allocation]]> Best Indian Funds]]> Mutual Fund.]]>]]> About the Author: ]]> Fund Manager and Investment Planner for Franklin Templeton India. For more information on Fund Manager click here .

Asset Allocation

Fri, 20 Jun 2008 00:00:00 -0400

Asset Allocation primarily involves categorizing an investment option amongst various asset categories that is offered. It could be in the form of a stock, fund or a share and the option that you choose is thoroughly a self made decision that will decide the time you could go about tolerating the risk. Any major investment involves some amount of risk. It could be you come out thoroughly victorious, or it could be that you loose some amount of your investment or the complete amount. Hence prior to investing it is advisable get the complete market report on the asset you purchase or invest upon. Well if we overlook the negativities and focus on the positives then the reward for taking on risk is the potential for a greater investment return in the longer run. For short term investments it is advised that one tries cash investments. By having an in-depth knowledge regarding the asset that the investor wishes to invest upon he becomes aware of the possible losses he could incur in case of a wrong initiation that he takes during the investment part. **End Summary** Topics: Asset Allocation]]> Mutual Fund NAV]]> Mutual Fund Investments]]> Best Indian Funds.]]>]]> About the Author: ]]> Fund Manager and Investment Planner Employed with Franklin Templeton India. To read more about Asset Allocation in detail click here .

Why prefer Mutual Fund Investments

Fri, 13 Jun 2008 00:00:00 -0400

A Mutual Fund is a channelized financial hub, usually governed by a third party that permits a group of investors to invest their money together with an objective. The mutual fund basically has a fund manager who undertakes the responsibility of investing the gathered amount into specific securities such as bonds and stocks. When you invest in a mutual fund, you basically buy portions or shares of that particular fund and accordingly you are entitled to become a shareholder. Mutual Fund Investments are considered to be the most cost-effective investment and are highly popular due to its diversification. Diversification is the art of bi-bifurcating your financial investments and investing in various schemes such that when one investment is down you can always bank on the other for your dividends. The basic level of diversification is to buy multiple stocks rather than just one stock. Now to the promotional offers. Look it is very obvious that anyone who runs a business will definitely promote it aggressively and claim it to be the best. But there is a statement that is made after a promotion that reads "Mutual Funds Investments are subjected to market risks, kindly read the offer document before investing". **End Summary** Topics: Mutual Fund investments]]> Fund Manager]]> Mutual Fund NAV]]> Best Investments]]> Best Mutual Funds.]]>]]> About the Author: ]]> Mutual fund investor and Fund Manager for Franklin Templeton India.

The Benefits of Investing in Growth Funds.

Mon, 26 May 2008 00:00:00 -0400

A Growth Fund is basically a mutual fund that is made or compiled by a stock of companies in order to yield better dividends. They do re-present the potential for superior growths but then it is a bit risky. On a whole investors prefer to invest in a growth fund over a general income fund as they offer better greater return potentials. Moreover their basic aim is to strive for both dividend income and capital appreciation as they invest in companies that are reputed for dividend payments and capital gains. They are also termed as equity funds as the goal is to achieve long term capital growth rather then regular income. It is always wise to invest in a diversified Growth Fund that not only covers a group of companies but a variety of sectors as well as this investments enables the investor to bifurcate their resources hence opening them up to a wide range of options. Say if you are investing in a Growth Fund that has five stock options namely IT, cement, steel, pharmaceuticals and FMCG (Fast Moving Consumer Goods). **End Summary** Topics: Growth Funds]]> Growth Mutual Funds]]> Best Mutual Funds]]> Mutual Fund Investments]]> Best Indian Funds.]]>]]> About the Author: ]]> Financial adviser, investment planner and fund manager employed with Franklin Templeton India .To know more about growth funds click here .