Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd
 
 
News Headlines »
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C
 These four expenditures can help you save tax under section 80C
 How to avoid excess deduction of TDS from salary income
 Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961

Tax-saver schemes lag diversified funds
March, 17th 2010

It seems that taxsaving mutual fund schemes are on the verge of losing their unique selling point. Mutual fund advisers hardsell these schemes to prospective investors claiming that they have the potential to outperform other category of equity schemes especially diversified schemes.

Advisers are unlikely to make such claim this financial year-end , as an analysis of data shows that tax-saving schemes from leading mutual fund houses have been lagging their diversified counterparts in onethree- and five-year periods.

It is no longer a big secret that tax-saving schemes are not being able to live up to their reputation. Earlier, they used to beat diversified schemes in the long-term and even used to outperform them regularly in the short period, says an investment adviser, who doesn't want to be named. However, that doesn't seem the case anymore .

Hemant Rustagi, CEO, Wiseinvest, a wealth management firm, says: A pointto-point comparison of returns of tax-saving scheme and diversified schemes doesn't give you the complete picture . In fact, tax-saving schemes are more volatile than diversified schemes.''

A look at the performance of tax-saving schemes and diversified schemes in the same fund house reveal that tax-saving schemes have been lagging even in the short period of one year. Rustagi says the small and midcap stocks in the portfolio of tax schemes could be a reason for their underperformance .

Tax-saving schemes tend to bet more on these stocks because the fund manager has the time to realise their full value because of the mandatory lock-in period of three years. However , it doesn't seem to have paid off. Another reason for the underperformance of these schemes could be that they witness inflows typically towards the financial year end. Probably, they are not able to capitalise on the opportunities because of lack of inflows,'' says Rusgai.

A Balasubramanian, CEO, Birla Sun Life MF, says taxsaving schemes still has the potential to beat diversified schemes in the long term of five years and more. A pointto-point comparison could be misleading because sometimes the rally would led by large cap and followed by mid and small caps.

The picture may differ depending on when you are looking at performance ,'' he says. As long as the composition of the portfolio is fine and the volatility is not very high, a marginal underperformance shouldn't be a great concern,'' he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions