Confessions Of An Investor

I have decided to turn my blog into a confession space. Ah don’t worry, I will not bother you with my personal issues and please am not going through any life crisis hence no agony aunts invited! But if you are Uncle Sam, do let me know what you are doing to your economy and thus mine and thus thus my funds!

Happy New Year Everybody!

But every year with the New Year, one is boggled with the issue of where to invest? Well, had I invested over a period of time, I would not have been writing this post. But again, mistakes, confessions, repent, rants, vents and “truths” make it to autobiographies and books…blogs too!

So, yes I have not made my investments as yet. I know March 31st is the last day of this financial year but my company shall declare war by February 14th (By Jove, what a date to choose!). Hence, here I am looking at various options I could have evaluated or still can to save my tax liability. Please feel free to drop in your suggestions.-

Maximum deduction under section:–

80C = Rs 1, 00, 000

–This includes life insurance premium paid for self, spouse and children
–Premium paid for Ulips with a lock-in period of five years
–Principal amount repayment of a home loan (only from approved lenders and if you possess the —-property and hold it for at least five years after completion)
–Equity-linked savings schemes with a lock-in period of three years
–PPF contribution with an annual limit of Rs 1,00,000 (it has been raised from by Rs 30, 000 this year) and a lock-in period of 15 years
–Monthly contribution towards PF
–National Savings Certificates with a lock-in period of six years
–Investment made in five-year bank fixed deposits
–Tuition fees paid for children for full-time education in India

80CCF (infra bonds) = Rs 20, 000 ( I believe the last date is already over)

80D (health insurance premium) = Rs 35, 000 (Caveat – Rs 15, 000 for self, spouse and children;
Rs 15, 000 for parents and an additional Rs 5,000 for parents above 65 (not for both, either of them).

80DD (medical treatment on disabled/handicapped dependent) = Rs 50, 000

80E (interest repayment of education loan) = Rs 40, 000

80G (donation to Prime Minister’s National Relief Fund) = Rs 20, 000

80GGC (donation to political parties) = Rs 10, 000

And what will help me:–

–Let me first have a look at my PF contributions. That should take care of a certain portion of my 80C

–My life insurance premium will in any case be there and have already paid it

–Have already invested in infrastructure bonds

— I can save extra through the PPF this year as the limit has been raised from Rs 70, 000 to Rs 1, 00, 000 but will this really help?

Now I need to look for ELSS. Any recommendations here?

  1. 1.       Canara Robeco Equity Tax Saver Fund
  2. 2.       Fidelity Tax Advantage Fund
  3. 3.       Franklin India Taxshield Fund
  4. 4.       HDFC Taxsaver Fund
  5. 5.       Religare Tax Plan

(As recommended by analysts)

My question is, the market might just go down a bit more with worries over lower quarterly corporate earnings results that will be announced later in January 2011. Should I wait and watch for the NAVs to go down before investing?

Btw, watch out for this space, I have identified a few funds in the markets that give better returns than the benchmarks and fell marginally when the markets came crashing. A dream? Not really, but let me get back with my full analysis!

Adios till then and be good!

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7 thoughts on “Confessions Of An Investor”

  1. @Kalyan.
    I think the infra bonds have an exempt limit of 20k only. Do you have any link which states 30K.
    It will be good to verify and the blog audience might benefit if we can verify the numbers and edit the post.

  2. Lavanya,

    No money so no investments. Happiness, isn’t it? You should choose on previous performance of funds you wish to invest in.

    Take care

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