What is Blockchain?

This is the common assumption that the most of the people think of blockchain as the technology that power bitcoin. While this was its original purpose, blockchain capable to do much more. despite the sound of the word, there's not just one blockchain. The blockchain is process for a whole suite of the distributed ledger technologies that can be programmed to record and track anything of value from land or property deal, financial transition, and even medical records.

You might be thinking: we already have processes in place to track data. What's so special about blockchain? Let's break down the reason  why blockchain technology stands to revolutionize the way we interact with each other:

Reason 1: The way it tracks and stores data. Blockchain stores information in batches, known as blocks, that are linked together in a proper order to form a continuous line, a chain of blocks. If you make a change to the information stored in the specified block. You don't rewrite it instead, the change is stored in a new block showing that x changes are made at particular time and date.

It's is a non-destructive way to track data changes over the period of time. Here's one example. 

Let's say there was a dispute between Tony Stark and Capt. America over who found a piece of Tesseract cube that been in the shield for years because blockchain technology uses the ledger method, there is an entry in the ledger showing that Capt. first found the cube in 1942. Later on, cube passed to another person but particular date and time are stored.

Now, here's where things get really interesting. Unlike the age-old ledger method specifically a book. The blockchain is designed to be decentralized and distributed across a large network of computers. This decentralizing of information reduces the ability for data tampering.

Reason 2: It creates trust in the data. Before a block can be added to the chain, a few things happen. First, a cryptographic puzzle must be solved thus creating a block. Second, the computer that solves the puzzle shares this solution to all the other computer in the network, this is known as the Proof of work. Third, the network will then verify this proof of work and, if correct the block will be added to the chain. 

Reason 3: Blockchain technology is such a game changer that No more Intermediaries.

Read More »

Equity Linked Saving Scheme (ELSS)- Overview

ELSS is the part of Mutual Fund Investment. Equity Linked Saving Scheme(ELSS) directed as per the ELSS mutual fund guidelines issued by CBDT under section 80C of the Income Tax Act 1961. The purpose of recommending ELSS is to encourage investments in equities by providing tax rebate or exemption.

The maximum Tax amount up to Rs. 1.5 Lakhs (for the current financial Year), is to be exempted by investing in ELSS scheme.

Investors who invest in ELSS funds are investing in a fund where minimum part of their investment means 80% of the invested amount can be in equities and equity-related securities. If we are comparing the return on investment(ROI), ELSS gives the higher performance than other tax saving instrument.

ELSS investments come with a locking period of three years, where the long-term capital gains and dividends are tax-free.

The lock-in period is only of three years making it the best option with the shortest lock-in period in tax saving options/scheme.

Benefits OF ELSS Investment

1. Tax exemption: Investor by investing Rs. 1.5 Lakhs (current financial Year) in ELSS mutual funds are eligible for tax exemption under SECTION 80C.

2. Minimum Lock-in period: ELSS mutual funds come with the lock-in period of three years. ELSS has the least lock-in period compared too other 80C options.

3. Tax-free Returns and dividends: It is the fact that there are the limited tax saving instruments like PPF, ELSS, ULIP and tax-free bonds. Each instrument has different benefits with some limitations.  Corporate Fixed Deposit, NSC, Bank FD, Post office scheme, etc. all these tax saving options’ returns are taxable based on individual tax slab that means whatever the interest you get in that year will be club in income slab. Let's have a look at the interest earned by Public Provident Fund(PPF); Returns are tax-free, but with a limitation that, there is 15-year lock-in period, means you cannot withdraw (apart from certain exemptions to withdraw in between). The best tax saving investment option that provides tax-free returns and high return on investment for a short period is ELSS Mutual funds.

4. Growth with Good Returns: Since an ELSS mutual fund invests in equity related instruments so these schemes would help you to grow your invested money with better returns when the stock market grows over a period.

Top ELSS Mutual Fund (As on 6th Oct 2017)

1. Axis Long Term Equity Fund (G): 

1 Year return- 15.3%, 3 Year return- 14.6%, 5 Year return- 22.2%.

2. Kotak Tax Saver - Regular (G):

1 Year return- 14.7%, 3 Year return- 15.4%, 5 Year return- 15.9%.

3. Reliance Tax Saver (ELSS) (G):

1 Year return- 18.8%, 3 Year return- 13.1%, 5 Year return- 20.8%.

4. IDFC Tax Advantage (ELSS)-RP (G):

1 Year return- 25.5%, 3 Year return- 16.5%, 5 Year return- 20.9%.

5. Franklin India tax Shield(G): 

1 Year return- 10.2% Year return- 13.1%, 5 Year return- 18.1%.

6. HDFC Tax Saver (G): 

1 Year return- 16.5%, 3 Year return- 10.4%, 5 Year return- 16.3%.

Hope you find the article helpful.

For any query, comment us below.

Previous - How to change the address in the mutual fund folio?

Next - Top Mutual Funds

Click imagination hunt to read latest blogs.

Posted By - +Nitin Gautam +LIVE VIAR +ASP.NET SOLUTIONS 

Keep learning and sharing...

Read More »

Top Mutual Funds

Today we compare “Thematic Infrastructure” Mutual Fund with their yearly returns. We daily update returns of the best mutual fund in industry. As we earlier discuss Small and mid-cap mutual fund and Pure Large Cap mutual fund. 

Mutual funds are among the best favorites with all investor. Today Investing in the mutual fund is highly recommended by direct companies or brokers. As said, "Start Investing early for better wealth creation."

Top Pure Mid Cap Mutual Fund (As on 06th Oct 2017)

A. L&T Midcap Fund (G): 

1 Year return- 29.6%, 3 Year return- 23.5%, 5 Year return-28.0 %.

B. SBI small & mid-cap fund – Direct (G):

1 Year return- 33.6%, 3 Year return- 30.3%, 5 Year return- %.

C. IDFC Sterling Equity Fund - RP (G): 

1 Year return- 30.4%, 3 Year return- 17.8%, 5 Year return- 20.8%.

D. Reliance Small Cap Fund (G): 

1 Year return- 27.9%, 3 Year return- 21.8%, 5 Year return- 30.4%. 

E. Mirae Emerging Bluechip Fund (G):

1 Year return- 23.2%, 3 Year return- 24.4%, 5 Year return- 29.9%.

F. ABSL Small and Midcap Fund (G):

1 Year return- 23.4%, 3 Year return- 24.0%, 5 Year return- 26.0%.

G. Kotak Emerging Equity - Regular (G):

1 Year return- 15.8%, 3 Year return- 20.8%, 5 Year return- 24.3%.

H. ICICI Pru MidCap Fund (G): 

1 Year return- 17.8%, 3 Year return- 16%, 5 Year return- 23.7%.

Top Thematic Infrastructure Mutual Fund (As on 06th Oct 2017)

A. Franklin Build India Fund (G): 

1 Year return- 14.2%, 3 Year return- 17.0%, 5 Year return- 24.9%.

B. Kotak Infrastructure & Economic Reform-Standard (G):

1 Year return- 17.3%, 3 Year return- 15.5%, 5 Year return- 18.6%,

Top Pure Large Cap Mutual Fund (As on 06th Oct 2017)

1. SBI Blue chip fund(G): 

1 Year return- 10.2%, 3 Year return- 13.7%, 5 Year return- 18.3%.

2. Reliance Top 200 Fund-RP(G): 

1 Year return- 16.1%, 3 Year return- 12.8%, 5 Year return- 16.7%.

3. ICICI Pru Top 100 Fund (G): 

1 Year return- 13.6%, 3 Year return- 10.8%, 5 Year return-   16.0%,

4. BNP Paribas Equity Fund(G): 

1 Year return- -12.1%, 3 Year return- 10.4%, 5 Year return- 16.8%. 

5. Kotak Select Focus Fund - Regular (G): 

1 Year return- 17.3%, 3 Year return- 16.9%, 5 Year return- 20.6%.

6. Reliance Vision Fund - RP (G): 

1 Year return- 18.5%, 3 Year return- 12.3%, 5 Year return- 15.4%.

Hope you find the article helpful.

For any query, comment us below.

Previous - Equity Linked Saving Scheme (ELSS) - Overview

Next - Top 5 Mutual Funds

Click imagination hunt to read latest blogs.

Posted By - +Nitin Gautam +LIVE VIAR +ASP.NET SOLUTIONS 

Keep learning and sharing...

Read More »