Diversify in 2006 - Mutual Funds
Of all the tax saving options for people, Equity-Linked Savings Schemes(ELSS) are by far the most exciting of all the tax-saving schemes. The Year 2006 will the of year of innovations as finacial companies will keep comming out will newer and more innovative products, as the experts are still positive on the long term growth story. We have a plethora of category of funds in the market, expamle: ELSS,Diversified Funds, Mid cap funds, Commodity funds, Infrastructure Funds...etc.
ELSS are the best bets to start investing in funds. Only that the Lock in period is 3 years. I would suggest anyone to invest in equities at this stage through the mutual funds route using the SIP (Systematic Investment Plan) options which helps you to not to worry about timing the market.
If you can handle risk and have an decent risk appetitie, you can try Mid-cap Funds. These smaller, but well managed companies can grow to large caps.
But before investing is any funds it's important to track the funds performace for the last 5 years. This is imporatant to get a clear idea of the future prospects of the fund.
Whats Experts Recommend: (Funds)
1. For ELSS- HDFC Tax Saver.
2. Diversified Funds- Franklin Blue chip.
3. Midcaps Funds- Franklin - Prima Fund.
4. Balanced Funds- Prudential ICICI Balanced Fund.
ELSS are the best bets to start investing in funds. Only that the Lock in period is 3 years. I would suggest anyone to invest in equities at this stage through the mutual funds route using the SIP (Systematic Investment Plan) options which helps you to not to worry about timing the market.
If you can handle risk and have an decent risk appetitie, you can try Mid-cap Funds. These smaller, but well managed companies can grow to large caps.
But before investing is any funds it's important to track the funds performace for the last 5 years. This is imporatant to get a clear idea of the future prospects of the fund.
Whats Experts Recommend: (Funds)
1. For ELSS- HDFC Tax Saver.
2. Diversified Funds- Franklin Blue chip.
3. Midcaps Funds- Franklin - Prima Fund.
4. Balanced Funds- Prudential ICICI Balanced Fund.
posted by Sensex-Blog Admin at 12:16 PM
2 Comments:
Hi, I like your commentary and some of the good things you have mentioned. Also If you can suggest some good sites and reference materials, it will be helpful to your readers.
Thanks for the appreciation vivek.Give me a couple of days. I will compile a List and post it on the blog. In the mean time you can go to www.sensex.in and Subscribe to sensex.in NewsLetter.
Jigar
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