Interim budget

This is the third budget in the last few months with the world hit by a slowdown. This is the last stimulus budget before the elections. So what to expect from it. The previous two budgets are an indication of it. This one since it is the last one before elections maybe the best in terms of tax exemptions etc. Anyway the expections are very high and it doubtful if it will live upto it.

Anyway, the share market is down as I had mentioned yesterday in my blog. Even after the budget is announced it is doubtful if it will come up. Anyway good luck.

Top tax saving funds

This is that time of the year when you will look at investments. I prefer ELSS mutual fund tax saving investments while compared to others like insurance. It gives better returns ofcourse this has not been the case who invested in the last few years.

All the tax saving funds needs to be continues for more than 3 years. Expecting that the recession hit stock market will recover before that time, I feel its a good time to invest in ELSS tax saving funds.

So while investing in these funds better go for the funds that have been performing well for a long time. While considering this criteiria of proven records the ones the funds that come to my mind are :-

1. SBI magnum fund
2. Birla sun life tax saver 96
3. sundaram tax saver

We need to consider proven records while investing in any mutual fund because you are going to hand over your money to be managed by a fund manager who needs to have a good record. If he is new to this field then its a big risk you will be taking. Not worth it...

Another advise I would like to give is that while investing in mutual funds dont bother to look at NAV's because that hardly matters. After you invest all that matter is by what percentage the funds go up or down. Since the percentage is what matters your money in either funds doesnt hardly make any difference

How market will behave today

Tomorrow the market is expected to fall. For the last one week it has been good and the market was on a upswing. But it has never been the case that market been good for more than a week in recent times. So if possible make some profit booking on monday early morning, before it goes down. Anyway this is just my prediction, have to see whether it actually does work or not ;)