Thursday, September 8, 2011

Prajna Capital

Prajna Capital

Mutual Fund Review: LIC Nomura MF Equity Fund

Posted: 08 Sep 2011 04:56 AM PDT

Objectives:
An open ended pure Growth scheme seeking to provide capital growth by investing mainly in mix of equity instruments.

Issue Price:
Sales will be at NAV related prices.

Liquidity:
The scheme has no lock-in period. Units for sale will be available on an on going basis, on all business days.

Entry/Exit Load:
The scheme has an entry load of 2% and no exit load at present.

Options:
The Scheme is totally growth oriented .

Flexibility:
The Scheme offers the flexibility to switch among the various other schemes and options offered by the LIC Mutual Fund, keeping in mind the changing investment needs.

Transparency:
Disclosure of NAV on a daily basis at the end of each business day. Periodical disclosure of portfolio as well as publication of yearly and half-yearly accounts.

Minimum Investment:
Minimum investment Rs. 2000/- .There is no upper limit on investments.

Other Schemes

LIC Nomura MF Index Fund Nifty Plan
LIC Nomura MF Index Fund Sensex Advantage Plan
LIC Nomura MF Index Fund Sensex Plan
LIC Nomura MF Tax Plan
LIC Nomura MF Dhanaraksha 1989

 
 

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Also, know how to buy mutual funds online:

 

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Invest in Birla Sunlife Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

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Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

Credit Opportunities Funds or Crop Funds

Posted: 08 Sep 2011 03:54 AM PDT

 

It's a classic higher-return higher-risk game. Or rather, that's what it should be. Credit opportunities (crop) funds are intrinsically designed for risk-taking investors since they are supposed to invest in high-return, low-rated paper. Though frankly, in India, none of them are true to their character and are reluctant to take risks - either on the credit side or liquidity aspect.

 

In the more developed debt markets in the West, such funds have the ability to change the allocation among investment grade and non-investment grade paper to take advantage of market dynamics. The fund's assets are generally not required to meet any minimum quality rating although they play it safe by putting some parameters such as not more than 50 per cent of the of net assets in below investment grade securities (or the unrated equivalent). Back home, such funds have been around for just a few years, the oldest being DWS Cash Opportunities which was launched in June 2007. The latest entrant being such a scheme from Kotak Mutual Fund launched in April 2010. Yet, such funds have not really gained in popularity in India. The average assets under management currently are around Rs 5,397.55 crore. With Rs 4,180.78 crore under management, Templeton India Income Opportunities fund stands heads and shoulders above the rest, cornering more than 77 per cent of the total assets of all such funds.

 

They really should not be called credit opportunity funds because they have a play-it-safe mentality. None of them take very high risks and tend not to go below A-rated paper, the most daring probably stretching it to AA-. When we looked at the portfolios of all the seven funds to check out the exposure to instruments that are rated AA or below, the range is between 1.45 per cent and 52.75 per cent. Kotak Credit Opportunities and ICICI Prudential Regular Savings top the list with allocation to such instruments standing at 52.75 per cent and 38.26 per cent, respectively.

 

On the other end of the spectrum, we have Religare Credit Opportunities playing it extremely safe with an exposure of just 1.45 per cent, respectively, to instruments rated AA or below. Though in all fairness, Religare Credit Opportunities did take a bit more risk in March 2011 when more than 17 per cent of its portfolio was in such securities.

 

If we move on from the credit risk, these funds also have the option to consider liquidity risk, though logically their focus should be on the former. Where liquidity is concerned, these funds have the option of moving across the maturity spectrum. In reality, you don't find huge swings. Currently, the safest of the lot is Religare Credit Opportunities Fund where the average maturity is 0.15 years. DWS Cash Opportunities follows closely behind with an average maturity of 0.23 years and 9.86 per cent exposure to paper rated below AA. Both funds are not consistent outperformers.

 

On the performance parameter, some of these funds have put in good numbers . Birla Sun Life Short Term Opportunities Ret leads the pack in terms of returns. Templeton Income India Opportunities Fund, the largest amongst all these funds, is also a pretty good performer. Not only does it beat its category average, but even compared to other crop funds is a decent offering.

 

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Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

Tata Monthly Income Fund

Posted: 08 Sep 2011 03:22 AM PDT

Tata Monthly Income Fund

 

Objective
To provide reasonable and regular monthly income along with possible capital appreciation to its unit holders.

Option Available
Monthly Income Option, Quaterly Income Option & Growth Option

Minimum Application Amount
Monthly Income and Quarterly Income: Rs.25,000/- and in multiples of Re.1/- thereafter.
Growth Option: Rs.10,000/- and in multiples of Re.1/- thereafter.

Tata Dynamic Bond Fund

 

Objective
To provide reasonable returns and liquidity to the unitholders.

Option Available
A (Retail Plan) with Bonus/ Income and Growth options.
Option B (Institutional Plan) with Bonus /Income and Growth options.

Minimum Application Amount
Option A: Rs.5,000/- & in multiples of Re.1/- thereafter.
Option B: Rs. 1,00,000/- and in multiples of Re.1/- thereafter.
 

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Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

Critical illness rider helps supplement your health cover

Posted: 07 Sep 2011 10:50 PM PDT

It can be bought as an add-on cover with a basic health policy

TO EXPAND the scope coverage of your health insurance, opt for a critical illness rider at a lower cost.


Critical illness policies can be bought as an add-on cover with a basic health insurance policy or as a separate standalone policy.

For instance, a 30-yearold person will have to pay Rs 14,242 to buy a regular health insurance policy from HDFC Ergo General Insurance and Rs 11,288 to buy it from Bharti Axa General Insurance. This policy will cover him up to Rs 10 lakh against normal illnesses as well as critical illnesses. However, in order to save costs, the person can buy a basic health insurance policy with coverage of Rs 5 lakh to take care of normal ailments as well as critical illnesses and an additional Rs 5 lakh coverage specifically for critical ailments. This way the policyholder will have to pay a significantly lower premium of Rs 8,500 (Rs 7,121 for the basic health policy and Rs 1,379 for a critical illness policy) to get the policies from HDFC Ergo and Rs 7,288 (Rs 5,644 for the basic health policy and Rs 1,644 for critical illness policy) for Bharti Axa policies.

Generally, critical illnesses are covered under plain-vanilla health insurance policies as well. However, since critical illnesses treatments are expensive and hampers the earning capability of the policyholder, an add-on cover is recommended to the customer.

Critical illness riders are generally fixed benefit covers, wherein if diagnosed for the ailments mentioned in the policy document, the company pays a fixed sum to the policyholder. Some common illnesses, which are covered under such policies, include cancer, kidney failure, heart attack, liver disease, major burns, coma, major organ transplant, paralysis and multiple sclerosis (damage to brain and nervous system).

However, these policies do not include serious medical conditions such as Alzheimer's disease, HIV/AIDS and Parkinson's disease. Also, the policyholder should go through the fineprint of the policy documents since some early symptoms or precautionary treatments related to critical illnesses might not be covered. Coronary bypass surgery, angioplasty and key hole surgery are generally excluded. Similarly, initial stages of prostate cancer and paralysis due to Guillain-Barré syndrome from which the patient may recover completely with proper medical attention, might not be covered. The insurers are generally hesitant to provide coverage to defence personnel in active duty or people who are regularly participate in dangerous activities like mountain climbing, scuba diving or racing.

There is a waiting period for such covers. Coverage under a critical illness policy typically starts after 90 days of policy issuance, while it is 30 days in case of normal health insurance policies.


Also, claims are rejected if the insurer finds out that the policyholder was already suffering from the ailment before taking the policy.

Under critical illness policies, the sum insured is only paid to policyholder in case he survives for more than 30 days after the diagnosis of the illness.

Most insurers pay a lumpsum of the sum insured at first diagnosis of the disease irrespective of actual hospital and treatment expenses, except a few insurers like Iffco-Tokio General Insurance, which processes cashless claims or reimburses the hospital bills and treatment charges up to the sum insured as in the case of any basic medical policy.

In case a policyholder is diagnosed with a critical illness, he should inform his insurer at the earliest, so that the claim process can be completed quickly. After the claim is settled and payment is made, the policyholder may utilise the amount for his treatment as well as for any other purposes.

Submitting treatment documents is mandatory to make a claim. Maintaining old medical reports is also advisable since the insurer might ask for these documents while processing the claim. To make sure the claim is legitimate and control insurance frauds, insurers may also ask the policyholder to visit their empanelled doctors.

Irda is planning to standardise definitions of critical illnesses and their coverage, so that it becomes easier for the policyholders to compare products. Incorporating new illnesses is a continuous process and in order to cover a few additional diseases, premium might go up by 15-20 per cent.

sagarsen@mydigitalfc.com Helping hand Critical illness riders are generally fixed benefit covers, wherein if diagnosed for the ailments mentioned in the policy document, the company pays a fixed sum Some common illnesses, which are covered under such policies, include cancer, kidney failure, heart attack, liver disease, major burns, coma, major organ transplant Policyholder should go through the fineprint of policy documents since some early symptoms or precautionary treatments related to critical illnesses might not be covered

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Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

 

DSP Black Rock MF Introduces My Target Value Savings Account

Posted: 07 Sep 2011 10:20 PM PDT

 

 

DSP Black Rock Mutual Fund has introduced a new facility – My Target Value Savings Account, with effect from August 01, 2011. Through this facility, investors can define a specific target value of savings and invest in any of the existing schemes of the fund either by way of systematic investment plan or by way of lump sum investment, in a unique account – "My target value savings account" created for the purpose. On reaching the pre-specified target amount, the units will be switched into DSP Black Rock Money Manager Fund - Regular Plan – Growth by default. Switching to other schemes of the fund is also possible through intimation.


The facility is currently available only for individuals, Non-resident individuals, sole proprietors, minors and HUFs. However, investors holding units in demat form can't avail this facility.

 

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Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

 

UTI Mutual Fund, Canara Bank Securities tied up for distribution

Posted: 07 Sep 2011 07:44 PM PDT

 

UTI Mutual Fund on Monday said it has tied up with Canara Bank Securities for distribution of its schemes.

Under the strategic agreement, Canara Bank Securities will offer various schemes of of UTI Mutual Fund through its online platform, UTI MF said in a statement.

With this tie-up, customers of Canara Bank Securities will be able to invest online in the various schemes of UTI Mutual Fund.

"The tie-up with Canara Bank Securities will give UTI Mutual Fund an opportunity to reach out to a wider segment of the society," UTI AMC group presi dent and chief marketing office Jaideep Bhattacharya said. A wholly-owned sub sidiary of state-owned h lender Canara Bank, Car nara Bank Securities, offers online trading facility c through its portal `Cank money' in the cash, futures s and options and currency l derivative segment.
 
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