enthusiastindia-blog

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Let’s start with what ELSS is all about. ELSS, also called Equity Linked Saving Scheme, is a particular separate type of Mutual Fund from other kinds of MFs. It is solely focused and used for tax saving and deduction purposes with a 3 years lock-in period. It falls under Section 80-C of the Income Tax Act, giving deduction up to Rs. 1.5L per financial year. It sounds great, especially for payers falling in high tax brackets who can save every penny from tax.

ELSS is “Thanda Thanda Cool Cool” powder to Indian taxpayers through which not only the investors can enjoy the benefits of a tax deduction but also tax-free (or itch-free) returns during withdrawal. Unlike most extended lock-in period of PPF and 5-year FD schemes, ELSS is the shortest route to save the tax with just 3 years. That’s the significant benefit of investing in ELSS Mutual Funds.

You can either invest as small as Rs. 500 per month – minimum investment in case of SIP [Systematic Investment Plan] or Rs. 5,000 in case of lump sum investment. There is no restriction to withdraw after the end of 3 years lock-in period of investment. You can either stay long for 10 years or withdraw after 3 years of investment, thus enabling greater flexibility.

The biggest plus point for investing in ELSS is the wealth builder or power of compounding. Your investment multiplies even greater for a longer period of time [if you understand what compound interest is all about.]

From the above points, we can conclude that not only if it offers the best and shortest tax saving option, but also gives better returns as compared to all other financial instruments with minimal risk.

Here are some quick FAQs about ELSS investment to clear up the common doubts.

Q: Is ELSS giving guarantee returns? A: NO! ELSS MF operates with market risk.

Q: Is ELSS giving better returns? A: YES! Usually, it gives the minimum of 12-15% CAGR or 36-45% absolute returns for 3 years of investments.

Q: Does ELSS ever end in a loss for more than 3 years of investment? A: Not really if you pick one of the good funds like the suggested answer below.

Q: What are the top 3 ELSS funds in 2019? A: Axis Long Term Equity Fund, Aditya Birla Sun Life Tax Relief 96’ Fund, Mirae Asset Tax Saver. [Suggestions only]

Q: Which are the best brokers or advisors for investing in Mutual Funds? A: Finvasia, 5Paisa, Bajaj Capital

Q: Can I withdraw the entire amount after 3 years? A: Yes in case of lump sum investment, you can withdraw all units/amounts after making one investment. However, in case of SIP, you can withdraw all amounts only if all the monthly investments you made have completed 3 years in the fund.

Q: Can I withdraw within 3 years lock-in period? A: No! You can’t withdraw once you made an investment. Note that you can stop the investment anytime, but there is no option for withdrawal if less than 3 years. In case of emergency, you can take a loan against ELSS.

Disclaimer: ELSS Mutual Funds are heavily dependent on the equity market, subjecting to the market risk.

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High time to talk about 𝐁𝐮𝐝𝐠𝐞𝐭 𝟐𝟎𝟏𝟗.   A Must-Read: 18 experts shared their expectations with ET Assessment.

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How safe is Mutual Fund in the long term?

There is one hard core proof that Mutual Funds are in very safe place for the long run until India dies. But it comes under combining two pictures. One after one below.

FIRST: INDEX BENCHMARK

Mutual Fund always compare/compete/correlates with its benchmark index (Sensex/Nifty). Take Reliance Large Cap Fund Direct for an example.

From the chart below from MoneyControl, yellow line belongs to Index – Sensex Top 200, and blue is MF – Reliance Large Cap.

It’s clearly seen that the gap is getting higher from the beginning of fund and MF is always winning in all years.

SECOND: SENSEX PERFORMANCE

Since Mutual Fund is winning, we can check if index is safe in the long term or not.

Take Sensex performance for example, these data below are the historical returns of Sensex.

If you are layman in these stuffs, you don’t have to read all data except “Probability of loss”. You will notice that if you kept investing for more than 10 years, there is zero probability of loss.

Conclusion:

That’s the beauty of Sensex. But what about Mutual Fund!!!? You tell me in the comment section below and see if you understood what I’m trying to show you.

CAUTIOUS: I’m not saying that all Mutual Funds are same and safe. You will need to do some work to find the good funds based on some parameters. I’ve written an answer in Should we invest in mutual funds based on their past records/returns? Why?

Must read for your benefit. Happy investing!

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What the heck is share market?

I’m trying to shape the answer concisely in layman’s term here.

People nowadays wonder and worrying how to become rich while seeing other people making really good money in share market. But hey, what the heck is share market? You might be in that position.

Share Market is nothing but a place (or exchange medium) where investors buy or sell the shares of listed companies. But when you buy shares of a company, you become the ownership of the company.

“What?? Tim Cook is the ownership of the Apple, not mine.” you might raised in your thoughts.

“Ofcourse but you are helping or raising the company’s fund, and this is how Apple company has built or upgrades. Otherwise Apple would never exist when Tim Cook doesn’t have enough money. But know this, your value of ownership is based on the amount of investing.”

Share Market sometimes called Stock Market (or Equity Market) but there is small difference (easy to identify). The main difference between these two comes under the instruments:

Stock market helps one to trade in various instruments like Bonds, Mutual Funds, Derivatives and also Shares of the companies. On the other side, Share Market only allows trading of shares.

 “Why do we study and need to invest in stock or share market?”

One of the important reasons why we needs to invest in stock market is to meet cost of inflation.

Inflation, in simple term, is the rate at which the cost of living increases (or increases in prices of goods and services). If the inflation is 6%, one needs to earn more than 6% to ensure that your money does not decrease in value.

The one who study the picture and process of stock market will manage the risk properly while investing, he/she will earn much better than the traditional style of savings or able to defeat the inflation in order to get the real purchasing power returns.

From Stock Market, there are two independent segments called Primary Market and Secondary Market.

PRIMARY MARKET

The Primary Market is a market where a company gets registered to issue a certain amount of shares and raises its capital. It is listed in stock exchange. The main purpose to enter primary market is to raise the capital fund. If the company is selling shares for the first time, then it is known as Initial Public Offering.

SECONDARY MARKET

Secondary Market is where the shares of a company are traded after being initially offered to the public in the primary market or listed on the Stock Exchange. Most the of the trading is done in secondary market. Usually, broker facilitate the process where investors can buy or sell transactions.

Now who controls these stuffs apart from banks regulated by RBI?

It’s in the hand of “The Securities and Exchange Board of India” [SEBI].

Since Stock Markets are risky for individuals or institutions and can be manipulated by third person called stock brokers, SEBI is there to ensure that the end investors gets benefit from safe and transparent dealings in securities.

What is the main job regulator SEBI do for me or for India?

The main roles or objectives of SEBI are:

Protecting the interests of investors in stocks

Promoting the development of the stock market

Regulating the stock market

Learn more in this video below or any that you like in my website but don’t listen to those who wants your numbers for stock tips or guides, or anything. Beware!

Visit ZeroBrokerageBrokers.com for finding a good broker to start with, depending on your style.

If you found this useful resource adding to your learning, sharing is the only way that can help many people like you to find this very answer today.

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What is the best portfolio investment in India?

It’s a high time to diversify your investment portfolio. Recent stocks fell sharp or even MF seen reds (but that’s not the reason that you should sell). That might make you ask question here.

Can good (not necessarily best) investment portfolio save us from loss? Yes but partially.

One must consider both risks indulged in stock market, namely systematic and unsystematic risks. 15–20 stocks from different sectors can ELIMINATE unsystematic funds, but cannot remove systematic risks at all.

Mutual fund itself a diversified funds which one should not miss. The good no. of portfolio of MFs ranges from 5–6 benchmark funds, including heavy weight on equity funds, remaining liquid and short term debt funds.

Gold! But why gold? International commodity is a plus point. It helps in hedging against rupee depreciation.

If you invest in these three, and look at chart below, your overall portfolio (including 2008–09 crash market) won’t hurt your money (but can hurt your profits sometimes).

So it’s possible to create wealth with good investment diversification. From the insight of above chart, 10 years of investment gives 500%+ return (including unrealized profits)

Note: None of my passages here encourage risk-free part. Those rewards are ranging from low to high risk.

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C'mon just breathe.

All the negativity will come into positive outlooks.

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Role of money in your life?

Money is money, life is life. It has its own independence. If you mix your life with money wholeheartedly, there can be serious consequences, mostly done automatically, such can end in becoming person with:

More of ego

Lack of true love

Zero honest

Poor trustworthy

Ugly pride

Short-tempered

Greed

Covetousness

so on...

If you think money is the only reason that you’re alive, you just lost the true definition of real life. You’re gifted in this world, be gifted to people around you, you are not meant to beg from the world. People need you to spark the light, talent(s) or an example.

Often time, people misunderstood me saying that we don’t have to make money. No, we MUST have to work, invest, trade (optional but with skills) and make money, lead a life for self and family but if our hearts are closely slave to money, then life isn’t looking good and lost its balance. 

You know why I’m trying to separate two important entities, because what you see problems around the world, 90% of all the problems fall into money issues. If you put your life in those areas by following the crowd or by your heart, it isn’t looking good and it saddens my heart.

Use your money for your liabilities, future planning and legacy. Use your life for others through love, joy and light.

“Those who love money will never have enough. How meaningless to think that wealth brings true happiness!” ~ Solomon, the Wealthiest King of Israel, 970 - 931 B.C.

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Undoubtedly true

~ Maza-Dohta #mazadohta #lovequotespost #love #lovequotes #quotes https://www.instagram.com/p/BpzyIwXhkEf/?utm_source=ig_tumblr_share&igshid=1mbigzicsol3u

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Introduction to Zero Brokerage Brokers

I thank to the Creator of universe for giving a gift of billions opportunity to the world, with billion updates to improve and billion ways to be new every year.

Let me introduce one of the billion sites, Zero Brokerage Brokers, with a simple purpose: Reduce the burden of traders/investors.

Zero Brokerage Broker is a purely internet company without any physical branch. We focus on industry of stock brokers available in India for selling platforms or offering trading account with three main filters: best quality, cheap commissions, satisfactory review. (We’re not selling anything). Additionally, I will also share the necessary posts out of stock brokers including humor, quote of the week, recommended books, education, news, etc.

Everything we do is for your benefit and possible to lower the burden of people. We started this company because we were pained by seeing the traders or investors who fell trapped or cheated by the hands of stock brokers.

With this initiative to avoid these upcoming painful issues, we offer crystal review of stock broker firms and also pick the right one for you in lists. You might have seen most reviews available in most sites, but we have made it very brief and most of the articles/stories are done in tabular form.

Our digital locations are available at (click to explore): Website, Facebook, Twitter, GooglePlus, Medium, Quora, Tumblr

Looking forward to interact with you our beloved people in India. Good day folks.