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Track Your Mutual Fund Investments Real Time

Till some time ago, every family had a relationship manager who would periodically come and meet our parents and discuss his mutual fund investments with him. And that was the only time our parents could get to know how their funds were doing. This is similar to those times when the only way to send money to someone was to visit a bank branch and deposit some cash/cheque.

With the onslaught of technology, everyone is seeking more convenience in everything that they do. So we don’t want to visit bank branches anymore and neither do we want to depend on our advisor to tell us how our money is doing. At CAGRfunds, we realized this urge for independence and therefore provided our clients with the convenience of tracking their investments on their own personal CAGR dashboard.

Once you register and start investing through the CAGR platform, you are assigned your own login details with which you get access to your own dashboard. Not only can you invest in mutual funds online but also track how your funds are performing.

But you do get a bunch of statements on your email, right? So what is there to track? Well, three reasons why our dashboard helps:

Comprehensive Data:

Some reports give you the value of how much your money has grown while others show you the list of transactions you have made. We give you everything relevant at one place. We show you how much you have invested, the current invested value, the absolute return and the annual return.Not only that, we show you the individual funds that you are invested in and what is the return you are making both at the fund and portfolio level. We also show you how your investments are split between asset classes and if it is in sync with your decided asset-allocation.

Simple Enough For Anyone To Get It:

The fine print and numbers overload on the statements you get on email makes it all the more complicated. Either you sift through all the information yourself or stay uninformed. We obviously don’t want that and hence our dashboard and reports are quite simple. Our clients told this to us! Don’t believe? Read here.

Any Time Visibility:

Reports generally come to you at the end of the month or when you transact. But with us, the next time you are discussing investments with your friend, just log in, check your current portfolio value and returns and have a more informed discussion!

We, therefore, ensure that you stay in complete control of your portfolio. So the next time you call us, it is only to discuss your portfolio, not to get data – because your dashboard gives you all the data you need!

If you have been facing trouble tracking your investments and want to switch to a truly delightful investing experience, do not hesitate to call / Whatsapp us on +91 97693 56440. You can also comment on this post or email us on contact@cagrfunds.com.

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Our Investment Experts Cater To The Minutest Of Queries

This post is quite close to our hearts. Because in many ways, it defines who we are.

Let us talk about two recent examples.

Example 1

The other day, we met a 35-year-old salaried individual who had not started investing yet. He knew it was high time he should start deploying his surplus money to better use, but who has the time with a 12-hour job! While we were discussing his financial goals, he gave us a pile of 5 booklets (call them policies). And he smiled and said – “Can you please go through them and tell me what to do?”

And so we did. We not only analyzed the policies for him, we ended up giving him some useful advice, based on our expertise.

So, trust us when we say we go beyond our job description, to help clear those small doubts in your head, which you never ask or share with others!

Example 2

A month back, we met a 22-year-old female who wanted to start saving. It was a usual savings-discussion we were having when she mentioned, how she had no idea about what her tax liability would be that year.

This was of concern because she had just received her salary slip where tax had been deducted for the very first time. She asked if we could help her. And there we were, helping her calculate her tax.

The point we are trying to make is – we are always there for you.

We can never promise to do just everything for you, but if it is within our realm of possibility and knowledge, then we go all out to help you.

You must be thinking why on Earth do we do it? Well, we believe in getting married to our clients. We are not just a platform where you can begin investing or a set of people who will list out 3 funds to invest in.

We are a bunch of financial experts who treat our clients like family. And we do that in our style!

Did a financial query just pop up in your mind? Do not hesitate to call / Whatsapp us on +91 97693 56440. You can also comment on this post or email us on contact@cagrfunds.com

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How CAGRfunds Makes Investing Simple For You

How CAGRfunds decodes the complexity of financial planning for you?

When we first started this business, we went out to talk to our friends about what they thought about investing and financial planning. May we say, we were surprised with the kind of responses we got?

While some of them knew bits and pieces of what financial planning means, most of them were upfront about why they never thought about it. Or rather, thought about it but kept on delaying any action. It was just too complex. That is when we decided to keep investing simple. Whether it was the concepts, the terminology, the planning or the transactions, we were absolutely sure that everything about financial planning needs to be simple.

So we started spending time with every such person we met. Our conversation never started from “How much do you want to invest?” We almost always just asked, “What do you do with your salary or earnings?” As we got answers to what people did with their earnings, we asked more questions, and then more answers. We think we are very good listeners. So that helps us to understand how best we can simplify your finances for you. And thus started the journey of decoding or let us say de-jargonizing the process of financial planning.

Likewise, we never get into terms like CAGR, ROI, risk profile, net worth etc. At CAGRfunds, we believe that there is always a simple layman-way of explaining things. So we generally pick up situations from your life to explain every relevant term to you. For example, if you are an entrepreneur and are wondering how risky will equity mutual funds be, we will perhaps take instances of how you set up your company to give you a sense of what risk in equity means.

Being able to de-jargonize and break down financial planning into simple concepts has helped us a lot in connecting with people who have limited understanding of finance and numbers or who are unable to take the right decisions about managing their money. And hence, we love to interact with people.

If you are one of them who wants to grow their wealth but is confused about how to go about it, maybe you should befriend us. We don’t charge you for a conversation, so no harm giving it a try!!

Whatsapp / Call us on +91 97693 56440 or email us on contact@cagrfunds.com.

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Is your fixed deposit making you wealthier?

Last week, I met a lawyer on my flight to Delhi. Since I had nothing better to do, I broke the ice and soon, we started discussing about my favorite topic – how do we get wealthier over the long run.

So I asked my new found lawyer friend, what does he do with his surplus funds? Immediate response – “Fixed Deposits!” So I then asked him why? And with a very perplexing look, he said – “My money grows at 6.5%. Do I need another reason?”

That is when I realized the lack of awareness that is prevalent even amongst the learned breeds of lawyers. I therefore introduced him to the concept of Debt Funds.

Debt Funds are those mutual funds which invest in debt instruments like bonds, debentures and money market instruments. But why are we comparing debt funds to fixed deposits?

Fact 1: Debt funds on an average give an annual return of 7.0% – 8.5%. SBI 1 Year Fixed Deposit yields 6.9% interest annually, and a 3 Year Fixed Deposit yields 6.50% annually.

Fact 2: If money stays invested in a debt fund for more than 3 years, then you end up paying considerably lower tax on the returns from such debt funds. This is because of the indexation benefit. Indexation implies to inflating purchase cost to account for inflation. As a result, returns which are subject to taxation is reduced. Also, such reduced returns are taxed @20%. However, in case investments are held for less than 3 years, the gains are added to the income of the investor and taxed as per the income tax slab rate applicable.

Fixed deposits are taxable as per the applicable slab rate of the investor, irrespective of the holding period of investment. That doesn’t sound good at all!

Let us understand by examples:

Consider an investor with income of INR 15lacs. He is willing to invest INR 1lac. The tax slab for this investor is 30% as per the income tax slab.

Case 1: Comparison of FD vs Debt Fund, assuming different rate of returns (as per Fact 1 above)

 

The net gain from investing in Debt funds exceeds in both the holding periods, so the investor is better off by investing in debt funds after taxes.

Due to indexation benefit, the purchase price has been inflated from ₹100,000 to ₹119,808, thereby reducing the tax liability from ₹6,238 in FD to ₹539 in debt funds. This benefit is available when the holding period is 3 years or more.

Case 2: Let us consider a scenario where returns from debt fund are the same as that of FD

An investor is better off by ₹6,051 even if the returns are same, in case holding period exceeds 3 years. Hence, debt funds are more tax efficient than fixed deposits in every scenario.

Time you think about the funds lying in your bank account?

Read More: Will Debt Funds help your create wealth?

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Is tax eating away a major chunk of your salary?

A few years back, a text message popped up: “Dear Customer, salary of Rs. ABCDE for the month of May 2017 has been credited to your account XXXXXXXXXXXXX”.

Happiness?? Not for me. Not when I was expecting a six figure salary but ended up with a five figure one, all thanks to the tax that I had been paying so diligently.

The emotional impact was of a nature that I felt compelled to consult a tax consultant. And to my absolute horror, I discovered that I was solely responsible for the reduction of a digit in my monthly pay package. Before I could get into any further depression, my consultant served me with the much needed ray of hope – several ways of saving tax to increase my income in hand.

1. If you live in a rented accommodation, you can save some tax

A salaried employee living on rent can save some tax by presenting the rent bills to his organization. Such expenses can be claimed under the House Rent Allowance (HRA) offered by the company.

2. Did you know you can reduce taxes by holidaying??

Leave Travel Allowance (LTA) can be claimed twice in a block of every four years. You can get your actual travel bills reimbursed for any travel that you might have done. However, every company has policies relating to what qualifies for LTA. If unclaimed against travel, LTA becomes fully taxable.

3. Check if your salary includes medical allowance

More often than not, medical allowance is part of the CTC. Medical expenses to the extent of Rs. 15000 are exempted from tax in any financial year. However, one usually needs to submit actual medical bills to one’s company to get the same reimbursed. So now you can worry a little less about the rising medical costs!!

4. Save tax as you invest your money under section 80C

Under section 80C, we can make investments into several instruments and the amount of investment made is deductible from our taxable income. However, the upper cap of such benefit is Rs. 1,50,000. Public Provision Fund (PPF), Employee Provident Fund (EPF which is part of your salary) and Tax Saving mutual funds are a few such instruments which fall under this category.

5. Planning for retirement can help reduce tax further

While section 80C gives benefits of up to Rs. 1,50,000, section 80CCD(1B) gives a further benefit of up to Rs. 50,000. This benefit accrues by way of investing in the National Pension Scheme or NPS. Also, investing in NPS helps generate better returns as compared to bank deposits as they have a diversified exposure across asset classes. But, the only consideration with NPS is that you cannot withdraw your  money till you attain the age of 60.

 How do we help?

At CAGRfunds, we help you plan your tax outgo by making you aware of expenses that you can claim as deduction. We also apprise you of various investment avenues which either help reduce tax or earn tax free returns. For example, after studying one’s profile, we recommend the best tax saving (Under section 80C) mutual funds. We also help plan tax by educating our investors about benefits of equity and debt mutual funds vis-à-vis other products.

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Everything that you wanted to know about an SIP

SIP or Systematic Investment Plan – A term which has off late been doing the rounds in the world of investing. Every financial advisor you meet will recommend a few SIPs to you. Do you often feel bogged down by the what(s), why(s) and how(s) of these SIPs? Read on to find out everything you need to know about SIPs before you move on to start one.

  1. Mode of investment and not a fund: SIPs are a mode of investment and not the fund or the instrument where you invest. Therefore SIPs don’t represent any asset class. They are a way of investing in any of the asset classes. In other words, they are more of an approach to investing.
  2. Defined periodic instalments: As the term indicates, SIPs are defined instalments which get invested on a pre decided date every month or quarter. For example, you can decide that Rs. 10,000 should get invested on the 10th of every month.
  3. ECS / Deducted directly from bank: Every SIP application is accompanied by a NACH mandate also known as an ECS mandate. By signing the mandate you authorize your bank to debit the pre decided amount on the specified date. This means that you do not need to put a separate transaction every month to make your investment. For example, when you sign the mandate, your bank automatically debits Rs. 10,000 on the 10th of every month and this gets invested without any action on your part. At CAGRfunds, we have introduced the concept of 1 mandate, which means you do not need to sign separate mandates for separate SIPs. One mandate for any number of SIPs across any number of mutual funds.
  1. Pre decided funds: When you make an application for registering a SIP, you also decide the funds where the investment shall happen every month or quarter. O every month, Rs. 10,000 gets automatically deducted from your bank account and gets invested in the fund you had selected.
  2. Start date and end date: You can choose the start date and end date of your SIP. Most funds have a criteria for minimum number of instalments (wither 6 or 12). However, having a perpetual SIP is beneficial for those who want to create wealth in the long run and want to follow a disciplined approach for the same.
  3. Any number of SIPs: You can have any number of SIPs. Each SIP is for a particular fund that you decide and hence you can have as many SIPs as the number of funds you decide to invest in.
  4. ELSS SIP: Taxation is a necessary evil and none of us should leave an opportunity to save our taxes. Section 80c of the IT Act gives us a benefit of Rs. 1,50,000 which we can deduct from our taxable income. Some of us who are more aware and believe in the potential of wealth creation through equity investment, choose to invest in ELSS funds (Tax saving mutual funds). However, very few of us choose the SIP route. ELSS investments if made through SIPs, helps reduce the risk arising out of market volatility to some extent. For example, you need to invest Rs. 60,000 to cover your 80C investments and you choose to invest in ELSS funds. You should invest Rs. 5,000 every month over a period of 12 months rather than invest Rs. 60,000 as a lump sum investment at one go.

How do we help?

At CAGRfunds, we help you with all your financial queries. Whether it is about a SIP or otherwise, we promise to give an answer to each one of them. For any query, post a comment to this article. Or whatsapp us on +91 9769356440