Handle Global Slowdown in Economy

What Govt. should do to handle global slowdown:

1. Aggressive interest rate cut by RBI by 0.75%

2. Big Personal Income tax cut

3. Stimulus package for Real Estate and Auto sector

4. Income disclosure scheme to bring liquidity into business

5. Remove long term capital gain tax and reduce tax on dividend.

Investment Option (SIP & STP)

SIP - Systematic Investment Plan

• The regular transfer of funds from your saving account to a Mutual fund that allows you to invest systematically.
• Benefit:
• Simple, Smart and Stress-free
• Build discipline
• Long term gains of compound interest
• Less vulnerable to market volatility
• Beats inflation better than fixed deposit or saving account

Lets you start low and progress at you own pace.

Systematic Transfer Plan

• Let's you transfer funds from one MF to another, so that you can spread your investment over a specific term, with the desired balance of risks and return.
• Generally no standard minimum investment amount.
• Lets you move from risky asset classes to other categories (an vice versa) whenever you want.
• Helps investors reap the benefits of a lump sum investment and an SIP
• Lets you average out your investment over a specific time period.

What to remember when investing Via STP:

• Pick funds based on your risk profile
• Read up on exit load and taxation
• Every transfer here can be constituted as a redemption or new investment.
• Do not make impulsive divisions in times of volatility.