| Mutual Fund Application Forms | Download Any Applications |
| Invest in Tax Saving Mutual Funds | Invest Online |
| Infrastructure Bond Application Forms | Download Applications |
Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Single Premium Insurance Policies
It is not the tax-saving season, but don't be surprised if you see a deluge of calls and SMSes exhorting you to buy a single premium policy. The sales pitch could follow the time-tested script -`the product offers triple benefits of insurance, investment and tax savings'. Most importantly, it is a one-time investment, which does away with the hassle of paying premiums every year, you'll be told. The launch of single premium traditional insurance plan by public sector giant Life Insurance Corporation of India (LIC) has once brought single premium plans into focus. Should you buy their argument? The answer to that question would depend on a careful assessment of pros and cons of these plans, probable returns and their suitability. This is applicable not only to the product being sold by LIC, but also by other firms.
The obvious advantage is of one-time commitment -once you've paid the premium, you need not worry about policy getting lapsed due to missed premium payments. If you have made a windfall profit from say a sale of property or have earned a bonus, you can look at making the premium payment at one go. "In fact, many employees would be expecting a Diwali bonus by October and this (LIC's) product could be aimed at them. It would also be ideal for those with seasonal or irregular income streams, who may find it difficult to make recurring annual payments.
Moreover, the ceiling on commission paid to agents is 2% in single premium policies, which means that a larger share of your premium will be towards the actual investment. You will not have to pay annual fees like policy administration charges either.
However, since the primary thrust of such single-premium products is investment, rather than insurance, you need to evaluate their return generating capacity, too. Most traditional endowment products invest in secured debt instruments like government securities and offer a return of between 5-7%, with single premium plans faring a shade better. If you are an informed investor, you should consider investing in a tax-free bonds instead and buy a term cover for your protection needs. Therefore, if you are seeking higher returns, you should evaluate other options too, particularly if you have adequate life cover and are looking at single-premium policies only as an investment avenue. After all, the life cover needs to be at least ten times the premium to claim the tax benefit on the entire amount paid.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Domestic Travel Insurance
After the recent floods in Jammu & Kashmir led to widespread devastation, tourists who sought to return from that state were asked to pay higher charges for airline tickets, according to reports. These were costs the tourists could have avoided if they had travel insurance policies.
The penetration of domestic travel insurance is quite low. The attitude among people is nothing untoward will happen to them in their own country. In case of foreign travel, many are forced to take insurance, as this is compulsory in some countries. For instance, you will not get a Schengen visa ( which allows travel between 25 European countries) till you have insurance. For travel to the US, people take this because medical costs there are very high," he says.
In case of group tours, operators buy insurance policies for any unforeseen expenditure. But this is usually in the case of international travel.
The premia for domestic travel insurance aren't very high — between ₹ 150 and ₹ 2,000, depending on the tenure and coverage. Mishra says for regular travellers, there are annual insurance policies. " If you buy annual insurance, the rates will be cheaper. For those who travel regularly, annual insurance is advisable," he says.
The shortest duration for which one can buy travel insurance is seven days. For an annual policy, which allows unlimited trips of less than 30 days each, the premium is ₹ 2,687 — ₹ 1,790 for the core product and ₹ 897 for the add- on.
Such policies offer a number of benefits. First, medical insurance, which covers expenses incurred on hospitalisation due to illness or an accident, is part of travel insurance. This will be covered if you have a regular medical insurance policy. Other expenses covered by travel policies include costs on missed flights or delay in flights, alternative accommodation, misplaced baggage, and evacuation in case of an accident due to natural calamities. In addition, these policies offer additional amounts for accidental death, transportation for family and accommodation for extended stay.
Given the rising popularity of adventure sports such as motor rallies, bungee jumping and rafting, insurance companies offer policies for such holidays, too, albeit at higher premia. Accidents or death resulting from these sports aren't covered under a basic travel policy. Add-ons include home insurance coverage ( to protect your house while you are travelling) and daily cash reimbursement in case of hospitalisation. The higher the number of add- ons one opts for, the higher the premium.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Arbitrage & MIP Funds
Once upon a time, a type of mutual fund called monthly income plan (MIP) used to be a great favourite among conservative investors who wanted slightly better returns than one could get in fixed income alone. The basic idea of such funds is that they are essentially conservative fixed income funds with a garnish of equity . That garnish could be 10 to 25%, and its intent is to boost the returns of the fund to above what can be earned from a fixed-income fund alone. Essentially , such funds encapsulate the entire portfolio of a conservative investor who wants a little bit of equity returns in exchange for a little bit of equity risk. Over any period longer than three to five years, the equity risk becomes minimal.
The fly in this ointment is taxation. Long-term capital gains on equity fund investments if held for over a year is zero. However, to qualify as an equity fund, at least 65% of a fund's assets have to be invested in stocks. Clearly, MIPs do not qualify and are thus exposed to the same tax levels as non-equity funds. Now, after the recent Budget, this tax load has become even more onerous.
In fact, the tax situation is quite adverse. Having a little bit of equity in what is mostly a fixed-income fund means that equity returns are taxed as non-equity . This is actually quite ridiculous, since long term investments in equity are practically the only kind of investments that are genuinely tax-free in India. To generate any equity gains and then get them taxed as non-equity gains sounds like the worst kind of tax inefficiency.
Nevertheless, in the traditional MIP fund, this is unavoidable. Interestingly, the recent adverse tax changes on non-equity mutual funds seem to have triggered some innovation in this area. One of these is the use of arbitrage between equities and their derivatives to run funds with the low risk and returns level of fixed-income investments, but the tax treatment of equity. Such funds have been around for many years, but have gained new attention in the new tax dispensation. And now, Kotak Mutual Fund has even launched an MIP-equivalent fund that uses equity-derivative arbitrage to offer investors the stability of an MIP with the favourable tax treatment of an equity fund.
How does this magic work?
The idea is quite simple. The fund manager looks for opportunities where there is a price gap between a stock price and its futures price. For example, let's say the market price of a stock is 100, the price of its futures a month hence is ` . 101. Then, the fund manager could buy the stock and simultaneously sell the derivative. Effectively, this is a predictable and safe gain of 1% over the month. However, it is an equity trade, and therefore a fund composed of such investments would get classified as an equity fund, and its investors would pay no long-term capital gains tax.
In principle, this kind of an investment does not have the safety level of the kind of investments that short-term debt mutual funds make, and definitely not of bank fixed deposits. However, in practice, they offer a much higher post tax return in exchange for a small technical increase in risk. The MIP-equivalent arbitrage fund that Kotak Mutual Fund has launched is slated to dedicate 40-75% of its assets to equity arbitrage, 10-35% to debt investments and 10-25% for normal (non arbitrage) equity investments.
To ensure tax efficiency, the fund will ensure that total equity and equity derivative investments that it has stays within the prescribed limits.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
| Mutual Fund Application Forms | Download Any Applications |
| Invest in Tax Saving Mutual Funds | Invest Online |
| Infrastructure Bond Application Forms | Download Applications |
Popular Posts
-
Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 83...
-
Invest Birla Sun Life Debt Funds Online Scheme The Average Maturity Of Complete Portfolio YTM Mark to Mkt Modified ...
-
Bajaj Allianz Life has launched Young Assure, a non-linked, participating plan to help people fund their children's education....
-
Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 83...
-
Birla Sun Life Mutual Fund has announced dividend under the dividend option of Birla Sun Life MNC Fund. The quantum of dividend shall b...
-
Top SIP Funds Online The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat B...
-
Top SIP Funds Online Mirae Asset Focused Fund (MAFF ) is a new fund from the stable of Mirae Asset Mutual Fund. It is an open-ended ...
-
Invest Mutual Funds Online Download Mutual Fund Application Forms Buy Gold Mutual Funds Gold Savings Funds An int...
-
Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300...
-
Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Ca...
| Mutual Fund Application Forms | Download Any Applications |
| Invest in Tax Saving Mutual Funds | Invest Online |
| Infrastructure Bond Application Forms | Download Applications |
Posts
