https://www.icofp.org/ - Blog #Investment Planning

Top mutual funds to invest in 2018

Mon, 08 Oct 2018 08:16:03 +0000

Investing in stock markets is a tricky business and not everyone has the time, inclination or most often the knowledge to invest freely in stock markets. For those of us who feel so there exists the beauty of the mutual fund. So, what exactly is a mutual fund? A mutual is a trust which collects money from a number of investors who have a common goal for their investments. Once they have collected these funds they then proceed to invest it on behalf of the investors through a professional set up which will be backed up by trained professionals to process the information being put up. So, in this way it becomes beneficial to the investor who wants to put his money in an investment vehicle but lacks the time or inclination to do the research but these days the number of mutual funds available to you are many. There are mutual funds for every goal and time period. So, in such a scenario where do you put your money? We have come up with a list to help you with this decision. Following are few of the top performing mutual funds in no particular order.

Motilal Oswal Long Term Equity Fund

The fund’s objective is to predominantly invest in equity and equity related securities at which they have been quite successful over the past few years considering their three-year rate of return is at 13.60%. This scheme has been primarily made for investors seeking potential growth of equities with the added advantage of tax savings.

Invesco India Tax Plan

Another solid fund with a very similar set up like the previous fund. This fund has outperformed the market constantly for the past 10 years. This is encouraging enough for you to invest your hard-earned savings with them.

Aditya Birla Sun Life Tax relief 96

An open-ended fund with a minimum buy in of ₹500. The only drawback which is possible with this fund is that there is a 3-year lock in period. One you could ignore if your aim is long term growth combined with tax benefits. With a 3-year return over 12% it is a fund which definitely deserves your attention.

IDFC Tax Advantage Fund

Another stellar performer which will rival the performance of the funds before this but keep in mind this list is all about the best in the market. The projected return over a period of five years is close to 24%. This is fund to definitely consider if you looking for something long term.

Importance Of Portfolio Management

Fri, 05 Oct 2018 05:51:09 +0000

Imagine a situation where the technology sector is booming in a record manner. You feel sceptical in the first month, start to have a lot more hope in the second month and by the third month, you feel bad that you aren’t riding the boom. So in the fourth month, you decide to take the plunge and make some significant investments in the sector. Next month, you are richer by quite a margin and feel extremely happy with your decision. As a result, you then go ahead and make additional investments in the sector. By the twelfth month, you are neck deep in the one industry, but see no harm in doing so, as you also have sky high profit margins. On the thirteenth month, however, it turns out that the meteoric rise of the industry was based on a bubble, and in a span of days, almost the entire worth of your investment is wiped out. This is an unfortunate but realistic story. This is where the importance of portfolio management comes in. So, what exactly is a portfolio in the first place? A portfolio is basically a collection of investment tools like stocks, mutual funds, commodities and such. Simply put, it is a comprehensive record of what you have done with your investments and what your current investments are. The importance of maintaining and managing a portfolio therefore lies in planning for the future. What is portfolio management then? It is basically the process of choosing the right investment policy to make sure that you maximise profit while at the same time minimising the chance of any possible risk.To elucidate, let’s boil down the most important reasons to manage your portfolio.

Better investment planning

A better look at your past investment strategies can give you a slightly better indication regarding your future investments. Not only this, but you can also plan more holistically while taking into consideration your age, propensity for risk, budget and your income. Once you consider all of these factors before making an investment decision your chances of loss significantly go down.

Minimises the risk

This is just a reiterating a point but a very necessary one. Portfolio management reduces the risks of your investment strategy to an extent which should not be ignored.

Customisable investment solutions.

Portfolio management gives you the opportunity to plan and account for specific goals you may have in mind and customise your strategies and expected returns and risks to your benefits.

Tax planning

Taxes are usually a drain on your income and most people do everything they can to avoid any excess tax paid. A sound plan and well managed portfolio can thus go a long way for that.So don’t just sit idle!!Go ahead, give your portfolio some time and build a wealthy one.

Investment in Fixed Deposit

Sun, 16 Sep 2018 23:21:22 +0000

Fixed deposit, a term which our seniors have tried their hardest to acquaint you with! But in the era of supercomputing and complicated financial instruments, which make it seem like fantastic riches are almost within grasp, and there is no actual way to lose money, there still exists the good old fixed deposit with its humble rate of interest. So, why should we look at something old fashioned and apparently not as profitable as others? Reliability is one major factor. Fixed deposits do not behave in the same unreliable manner in which other instruments work. They are more or less secure and this makes them a very reliable choice. Another major reason is that of an assured pay-out. In a fixed deposit you know the interest rates and the expected outcome right when you make the investment. This gives you a peace of mind which is very rare in the financial business. So, what exactly is a fixed deposit in the first place? It is a kind of financial instrument in which you can invest your funds for a set tenure which will then provide you with a rate of interest in return. The benefit is that it is as simple as opening a savings account and equally risk free but with a higher rate of interest. Now, there are two types of fixed deposits available to the investor.

Traditional / Non-cumulative plans

These are the traditional plans you know about. In this case, the principal gets invested for a specific duration and the frequency of the interest pay-out is one which is determined by you.2. Reinvestment / Cumulative plansAs the title suggests the interest in this plan is added to the principal and compounded; the sum total of which is handed out during maturity.Now what are the things you should keep in mind before making a fixed deposit?

Try Opting for company FDs

Fixed deposits offered by companies have a higher rate of return and usually have more flexible tenures compared to that offered by banks.

Choose your tenure carefully

To avoid the monetary penalty most fixed deposits levy on you if a premature withdrawal is made, make sure that you choose your tenure very carefully

Compare different banks

Remember to compare different banks offering different interest rates and options before you make your choice, as an intelligent investor always looks at all his options before making a decision.

Split your money

There is a small but a sometimes useful benefit of splitting your money across different banks and different fixed deposits. If you may need to liquidate one of your deposits for an inconceivable reason, then you also have to make sure that there is a deposit you can liquidate immediately without incurring any significant penalties. So don’t forget to check out the meek and silent fixed deposit before you decide to go through with an investment. But remember no investment is infallible and the same is with fixed deposits.

CFP Certification Program

Sun, 08 Feb 2015 12:06:50 +0000

Are you looking for a bright carrier opportunity in the finance sector? If yes, it is necessary for you to know about CFP course. It is an international level prestigious certification program that helps you to get a unique recognition among all graduates in finance. The certification enhances your resume and helps to start a great career in the sector. Your job opportunity is not only based in the country level but you can try your luck for international job opportunity.

There are more than 30 countries where CFP is valid. The program stands for Certification in Financial Planning. It means you will get the certification for achieving higher level of efficacy in financial planning. A CFP exam that is organized by the Financial Planning Standards Board of India (FPSB) for Indian youth only. Likewise, there are several other committees of CFP in different nations that regulates the exam. Once the certification is granted, international level banks, MNCs, insurance agencies and many other respected institutions offer prestigious job positions such as finance manager, team leader etc. A challenging work environment is offered that requires to handle various types of finance related planning including insurance planning, retirement planning, employee benefits, tax planning and estate planning. Today, CFP has more than 1 lakh qualified members working across the world. If you wish to qualify CFP, here are some guidelines to follow. There is a certain eligibility that every applicants has to prove. Regular and Challenge Status are two pathways that applicants can choose.

In Regular, a candidate must be registered under the CFP Regular Pathway and should have 12th pass certification during the time of enrolment. It is must to qualify four level of examinations that covers:

Risk Analysis & Insurance Planning
Retirement Planning & Employee Benefits
Investment Planning
Tax & Estate Planning

Any 12th pass students can also apply to the Challenges Pathway. The exam has 4 papers and those who qualify these papers can look forward for final paper that is the 5th paper. Examination preparation in both the pathways is not easy. Special attention is required to give for preparation of the course. The exam level is tough. Applicants have to do systematic planning for the program preparation. Joining a coaching institute for special guidance is required. Applicants can join a special CFP course that prepares students for the exam. Some leading finance management colleges organize CFP Certification course. The course of study covers with illustration and practical training. Applicants can join for MBA in Financial Planning or Diploma in Financial Planning for the preparation of the certification. MBA program that includes the curriculum of CFP can be beneficial as it offers dual benefits. Applicants prepare well for the certificate exam and at the same time, they get a degree. It would be a wise choice goes with. The CFP course is your top source to enter to the world of higher level of financial degree. It prepares students for tomorrow’s challenges.