PowerMF Blog – Empower Yourself

Draft Direct Tax Code has come out and there are a lot of areas where an Individual Tax Payer has reasons to be happy including the proposed slabs and exemption limits.

However, when it comes to Mutual Funds,  keeping up with the continuous spate of changes and concerns faced by the industry, DTC adds one more: removal of ELSS from the approved investment options for tax saving.

Currently, ELSS schemes have around Rs. 23,700 cr. under management in May 2010, up from around Rs. 11,800 cr. in May 2007. This represents around 60 lacs to 120 lacs investors using the ELSS as a tax saving route which is expected to be foregone by the industry.

Sure, this is probably not the most important issue in the minds of most Industry players only owing to the spate of other immediate issues to grapple with. But one sigh of relief the industry will probably have is that ULIPs may also be treated the same way as ELSS.

Mutual Fund as an investment vehicle is one which will enables retail investors, who do not have either knowledge or time or both for managing their investments to pool in the investments which is managed by professional fund managers. In light of the above, equity investments with its complexities and time Read the rest of this entry »

My hearty wishes for a healthy and wealthy New Year to you and your near and dear ones.

The year 2010, brings along a new decade and it is appropriate for us to look at the decade that went by and also identify the trends and changes that will not only provide us insights of what went by but also will give an understanding of what is in store.

The period 2000-2009 is an important Read the rest of this entry »

Like any building, which requires 4 pillars to stand on, personal wealth creation also requires 4 strong pillars. All financially successful people have gotten their success thanks to their understanding of these 4 pillars. They are

1.    Nothing happens without a Plan

2.    Knowledge your only weapon

3.    Risks & Return Trade Off

4.    Importance of Liquidity

Nothing happens without a Plan

Planning is the most important part of any activity. Wealth Creation and Investments are no different. The areas which need to be planned include:

a.    Income, Expenditure and Savings

b.    Investments

c.     Tax

d.    Insurance

e.    Retirement

f.      Goal Setting

The most important part of the Plan is to define your Goals in an un-ambiguous manner. There are various Financial Planners available who provide a comprehensive plan. However, it is your responsibility to articulate your goals in life and more importantly for implementation of these plans. Hence, a clear commitment to these plans as well as the Goals is a pre requisite for success in your journey towards financial independence and wealth creation.

Read the rest of this entry »