February 2021



The start of new financial year approaches while you just got done with your last year’s tax investments. However, what about getting a jump-start this year? You can plan and execute your tax-saving investments from now itself. A smart investor is always cautious about saving money and has a long-term investment horizon. You may want to invest in mutual funds, as is one of the most economical ways to grow your money in the long term. But when it comes to tax saving, then you can think of investing in ELSS funds.

Equity Linked Saving Scheme or ELSS is an ideal scheme for investors who want to save tax. ELSS mutual fund scheme invests a majority of its corpus in equity or equity-related products. ELSS is not just a tax saving option bus also a wealth creation opportunity. Under Section 80C of the IT Act, ELSS helps you to utilise Rs 1.5 lakh tax deduction. Here we share how and why you should start to invest in ELSS funds to save taxes.

Start SIP Early On

When you start early, it gives you have the option to invest via SIP (Systematic Investment Plan) from April itself. This will help to avoid you the hassle of investing a lump sum in January or February. Let us understand this with an example. If you want to invest Rs. 50, 000 for tax saving under section 80C, you can start by investing Rs 5,000 a month from April to January in the next year. This is a better way rather than investing a larger chunk in one go. Moreover, when you start early, you put your money to work sooner than later.

Lock-In Period

Among all the Section 80C options, ELSS has the shortest lock-in period of 3 years. Traditional investment options such as PPF and FDs have a lock-in period of 15 and 5 years respectively. Hence, ELSS mutual funds provide more liquidity as compared to other tax-saving investment options. Moreover, the lock-in period also helps you embed a good habit to stay invested for a certain period.

Save Tax and Create Wealth

ELSS funds are nothing but equity mutual funds that invest in companies of all sizes such as large, mid or small across a variety of sectors. Hence, ELSS funds allow you to create wealth over a long-term investment plan through equities. If you fall under the highest income tax bracket of 30%, then with investments in ELSS tax saving mutual funds you can save Rs 46,800, including 4% cess in income tax. Moreover, after the 3-year lock-in period, your long-term capitals gain of up to Rs 1 lakh from ELSS mutual funds are exempted from taxes. So, here you can say that with ELSS you get the opportunity to create wealth but with an added advantage of saving taxes.

ELSS is a great investment choice owing to its tax saving feature, convenience for investing as a mutual fund and a potential for long-term wealth creation. However, make sure to choose the apt ELSS fund for your financial goal. Happy investing!

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How the Newbies Can Become A Pro Trader?

When traders are involved in Forex trading, they do not know all the activities which could be useful for the further development of career.  In the very beginning of their career, they often make some mistakes and face some common difficulties. But they are overcoming this situation so quickly. There are varieties of methods that can be useful for identifying the pro and newcomers. Today, we will discuss strategies that can be helpful for newbies who want to become a professional in this substantial financial industry.

1.      The professionals should be conservative

Sometimes we can see that newbies do not follow the rules and method to get the desired success.  But they can avoid these behaviors. The professionals should be conservative. They will not take part in multiple deals and gather various information in a single time. Investorscan have an attitude similar to professionals. Pro traders should be conservative, and most of the time, they should focus on their career. Newbies can follow these steps for becoming a pro in this industry.

2.      Managing the funds an account carefully.

There are a lot of traders who lose their money due to the inability if managing the account. If the newbies want to make themselves as a professional, they can try and learn to manage the statements carefully. There are a lot of ways that can help them to manage the accounts. It is not such an easy process, but some simple rules should be followed. As this is a volatile market, they should always try to capture the target market because the condition can change at any moment.

In this case, the whole process will be extremely complicated. But traders must try to stick to tactics that can help you become a professional in this sector.  An amateur can also follow those steps.

3.      Managing the risk in a single trade deal

If amateurs want to become experienced, they should learn about managing the risk. Many experienced traders tell that managing only the risk can increase the percentage of winning the deals. So try to manage your capital and risk, as it will be more helpful in attaining the success you wish for. Try not to risk more than two percent of the capital. If the amount of risk is higher, then the risk of losing the whole money is also higher. So, the amateurs should take care of the issue and make a better result for their upcoming career.  Those who buy bonds online, always follow the same technique to manage their risk. To them, risk assessment is the ultimate weapon that they use succeed at trading. If you want to beat the market, keep the risk factor very low.

4.      Follow the specific strategy.

Here are a lot of strategies like day, position, swing trading etc. All these methods have specific styles and tactics for managing the deals. The newcomers must follow one of these strategies. Then the output will be positive for the strategic future. Strategic management will be the critical issue for improving the performance of newbies as well as enhancing the performance in this sector.

5.      Adaptability to the changing condition

It is a vital characteristic that should be acquired by the amateurs to become a pro. The market condition can change at any time and then some old methodology and strategies will not work. Therefore, being adaptable can help someone overcome this issue. Both the average and changing condition should be known by the investors. It will not be the same for an extended period of time.  So, amateurs have to learn how to be adaptable if they want to become a pro.

Becoming a pro is not so easy. A lot of dedication and hard work is needed for gaining that position.  Every newcomer should follow the above-mentioned steps turn themselves into a pro in this industry.

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