| Insurance - Free Rides? Posted: 23 Sep 2011 07:38 AM PDT
During festivals and even during low sales period, car dealers dole out free car insurance offers.
This is just the regular car insurance policy. We offer it so that the customer doesn't have to run around for insurance. Most of these schemes are for one year, however; for the products of select auto manufacturers, a two year insurance is also being given free of cost.
When car manufacturers or dealers want to offer discounts, they say we will offer you insurance for free. So, instead of reducing the price on the vehicle, the dealer will tell you to pay the value of the car and that the insurance part will be taken care of. You don't pay the premium and the manufacturer or the dealer pays it in the form of discount. Remember, however, that such covers' ambit is restricted only to mandatory car insurance coverage.
So, if you want any add-on covers, you can buy that separately. If you want the person in the car who is injured to be taken to the hospital or that the vehicle price does not depreciate, then these add-on covers can be taken on the same policy.
If you are keen on buying such policies, don't forget to scrutinise the policy document and ask for the detailed policy wordings. For instance, keep an eye on the IDV (insured declared value); it should not be lower than 15% to 20% of the invoice value. Also, check how the dealer will pay for the second year's insurance coverage as car insurance policies are to be renewed after a year. Ask for the breakup of car registration fee, as some dealers may charge higher registration fee to camouflage the free insurance offer.
----------------------------------------------------------------- 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 IDFC Mutual Funds Online Invest in UTI Mutual Funds Online Invest in SBI Mutual Funds Online Invest in L&T Mutual Funds Online Invest in Edelweiss Mutual Funds Online  |
| Value Averaging is Effective way of Creating Wealth Posted: 23 Sep 2011 05:02 AM PDT
Equity investment is an art as well as a science. The selection of an underlying is an art and selecting the right strategy to participate is a science. Clients often ask us: 'How do I participate in equities? Markets are near all-time high. Should I invest now or wait for the markets to correct? There is a lot of uncertainty in the markets', etc. My reply to them is that equity markets are always going to be uncertain, that there will always be volatility. But that is why equities give higher returns than other asset classes. Play smartly and take the benefit of volatility.
The objective of every investor is to buy low and sell high or invest more when the markets are low and invest less when the markets are high. This often sounds simple but in reality it is practically impossible to time the market. To achieve the above objectives, I suggest the 'value averaging strategy', as it smartly plays out in different market conditions.
Let us first understand what value averaging is. It was developed by former Harvard University professor Michael E Edleson. The value averaging investment plan is a powerful investment concept that provides considerable safety from market volatility, discipline and reasonable guarantee of returns. It is an averaging technique where the portfolio's balance increases in a defined way irrespective of the market movement.
In a value averaging investment plan, the amount invested each month is not fixed, but varies with the fluctuations of the market. Investors have a target portfolio value that they desire over a certain period of time. With each passing month, the plan adjusts the next month's contribution as per the relative gain or fall of the portfolio value from the target portfolio value. When the market declines, the investor contributes more and when the market goes up, the investor contributes less. This way the anticipated return remains more or less constant for the investor.
To check the superiority of this logic, we back-tested the value averaging concept in three different market cycles, ie, a falling market, a flat market and a rising market. We have considered a three-year analysis for each market cycle. We assumed 15% as the target return from equity and set the formula accordingly. Let's evaluate the investment results in different strategies:
DURING THE GLOBAL CRISIS OF 2008:
For our analysis, we took the data for Nifty from December 31, 2007, when the Nifty was 6138. It fell all the way to 2524 on October 28, 2008 and come back to 6134 on December 31, 2010. So, there was in effect no returns from Nifty for three years. In the same time period, the value averaging concept (VAP) in Nifty generated an internal rate of return (IRR) of 25.34%, compared with the 0% CAGR return from a lump sum investment in Nifty and IRR of 23.86% from investments through a systematic investment plan (SIP).
FALLING MARKET ANALYSIS (TECH MELTDOWN):
For our analysis, we took data from January 31, 2000, when the Nifty was 1546 and fell all the way to 1041 as on January 31, 2003. Nifty lost 32% in the above period. If anybody would have employed the value averaging strategy for investment, the returns would have been -4.24% IRR as compared with -6.69% IRR through SIP and -12.33% CAGR in case of lump-sum investment.
RISING MARKET ANALYSIS (DREAM BULL RUN):
For our analysis, we took data from December 31, 2004, when the Nifty was 2008, to December 31, 2007, when it touched 6138, generating 195% absolute return, ie, 43.43% CAGR. But with the value averaging strategy (VAP), the IRR would have been 52.48%, and for SIP strategy, the IRR would have been 50.89%. In a constant rising market, the absolute returns from lump sum would look better.
CONCLUSION:
Value averaging as an investment strategy is superior to the systematic investment strategy as it combines the benefits of relative valuation due to market movements and a disciplined investment approach for averaging. In the current state of directionless market it makes sense to apply this investment strategy for allocation in equities. Just be patient and give more time to your investments.  |
| Term Insurance Plan - Price is not the only criteria Posted: 23 Sep 2011 04:21 AM PDT New policies charge less premium, but there're many factors you need to consider before deciding to dump your old policy
Should I dump my old term insurance plan and buy a new, cheaper one? This is the question quite often being asked by yuppie insurance customers these days. Term insurance — pure life cover, in insurance parlance — is the choice of informed customers as it allows them to buy a large insurance cover for a small premium. And the good news is that the premiums have been falling over the past few years. Lately, the premiums have gone down further after many private life insurance companies introduced cheaper versions of term covers that can be bought online.
Now, coming back to the query, it is not rocket science to figure out that if you can save money on the premium, you should consider switching to the new plan. One can consider switching to a new term life insurance policy, as term life insurance policies do not offer any carry over benefit. For beginners, pure term life insurance policies pay the sum assured (or insurance cover) only on the policyholder's death. The policies don't have any investment component. That means, if the insurance buyer survives the term of the policy, he doesn't get anything. However, one has the option to add additional benefits such as accidental death and disability benefits and health riders with the basic term insurance policy.
WHAT DETERMINES PREMIUM RATE
Term life insurance premium depends on the mortality experienced by a life insurance company. As the mortality experience of the insurer improves over a long period of time, it is passed on to the customers in the form of lower life premium for the new customers.
For regular premium policies, the premium once fixed at the time of purchase of the policy remains the same throughout the premium paying term of the policy. If the insurance company experiences adverse mortality – that is more deaths than what it has assumed at the time of product filing – the company may choose to increase the premium for the new customers. In India, over a period of time, the mortality experience has been improving for the life insurance companies, which is getting reflected in the lower premiums for term life insurance covers.
FALL IN PREMIUM RATES
The new term life products filed by life insurance companies are available at lower rates for two reasons. As mentioned earlier, the improved mortality has helped the life insurance companies. The second reason is the improving efficiency over distribution – online distribution of such basic covers. When you buy a product online, you do not engage an agent, which leads to savings in distribution costs for the insurance company. The company passes this on to you in the form of lower premium.
On the online platform, for the younger individuals, especially those below 32 years of age, the savings in premium payable towards a term life insurance policy could be as high as 35% compared with the old term life insurance policies. With the rise in age, the savings, however, falls since there is limited scope for improvement in mortality.
SHOULD YOU SWITCH?
From the cost point of view, it makes sense to switch to a low premium product, given the possibility of savings on the premium payable.
You can either use the money saved to invest in your portfolio and earn some return or just spend that money the way you like. However, not all advocate dumping the old policies.
With the rising age, the premium also goes up, which may, in turn, nullify or reduce the savings on costs towards the premium. This is especially true if you are above 40 years of age since the premium rise is rather steep for that age bracket.
If your existing policy also has a health rider, such as critical illness benefit, attached to it, it is better to consider the change in premium for that benefit too. Given the limited experience on hand, the rider premiums have not materially changed yet. With rising age, the premium payable towards a critical illness rider will also go up. It is better to check the actual total premium payable on the existing as well as new products and calculate the savings, if any, before you decide to move on to a new product.
The second factor that acts as a hindrance is the state of health. If you are in good health and can go through the battery of medical tests, you may consider buying a new term life insurance policy. Since term life insurance policies are high risk business compared with the other investment oriented plans, underwriters are rather strict with the acceptance of risk. With rising age, the number of tests also goes up and if the buyer is not in good health he may be charged extra premium or in some cases even denied cover. The worst thing to happen is to let go an existing cover before the buyer gets a new policy in place.
THE WAY OUT
If you are sure that you don't want to continue with your existing policies, it is better to take a calculated decision. The first thing to do is to arrive at the amount of insurance you need. (See table) "First, buy a new term life insurance policy and let it run for some time, since the new policy may have some waiting period for certain benefits. For example, the critical illness benefit typically has a waiting period of three to six months. Also, life insurance policies do not cover suicide in one year from the date of issuance of the policy.
It makes sense to run the existing policies till the time the new policy is two years old. This is primarily due to Section 45 of Insurance Act, which deals with 'indisputability of a claim'. A claim under a policy that has completed two years cannot be contested on the grounds of suppression of material facts.
But it may not be entirely true. Insurance company can still contest the claim but the onus of proving a fraud is entirely on the insurance company after the policy completes two years.
The decision of paying the claim rests entirely on the full disclosure of facts in good faith. There are many cases that have been decided by various competent courts in both the insurer and insured's favour. Section 45 is meant to limit disputes in insurance business. If you act in good faith and disclose all material facts known to you, the insurance company will pay the claim. Better buy adequate term life insurance for peace of mind and secure future of your family.
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| Mutual Fund Review: DSP BlackRock World Energy Fund Posted: 23 Sep 2011 03:21 AM PDT If one looked at the one-year return of DSP BlackRock World Energy Fund as on April 30, 2011, it impressed. It was way ahead of the Sensex and Nifty. In fact, it was higher than the category average of most of the equity funds. DSP BlackRock World Energy Fund is essentially a fund of funds (FoF) that invests in two international funds: BlackRock Global Funds - World Energy Fund and BlackRock Global Funds - New Energy Fund. The cumulative result on combining the portfolios of both funds is that one can get an exposure to companies in the energy sector across the entire globe. When the fund was launched in India in July 2009, the allocation between the two funds was much different. Between August and December 2009, the exposure to the New Energy Fund hovered at 30 per cent levels. A sudden and dramatic change took place the very next year. In March 2010, exposure to the New Energy Fund dropped to 4.70 per cent from 26 per cent in the previous month. Since then it has stayed low. But while the allocation to the funds has differed, investors need not fret about large cash exposures. The fund has always been fully invested in the two global funds. Portfolio Construction
In the World Energy Fund, investments are made across the full range of fossil fuel-related companies including oil exploration, refining, marketing and service businesses, coal, and gas. The exposure to each sub-sector varies depending on the energy cycle.
The New Energy Fund invests in companies at the global forefront of developing and commercialising new energy technologies. The fund diversifies across renewable energy (wind, hydro, geothermal); alternative fuels (biodiesel, coal-to-liquids); automotive and on-site power generation (fuel cells, electric vehicles); energy storage (hydrogen storage, flywheels); materials technology (superconductivity); and enabling energy technologies (emissions trading, metering). Intra-sector exposure is also kept diversified.
In the case of both the funds, stock selection is based on primary research and the fund managers follow a bottom-up approach. Company meetings and on-site visits are an important part of the research process and are viewed as essential in understanding management strategy and product development. While the criteria would differ between sectors, the focus is on efficient operating companies, sound financials, strong management and on companies with commercial products (specially in the case of the New Energy Fund).
Having said that, the bottom-up approach is framed by using clear top-down themes and market-related assessments. Top-down factors such as the price and direction of crude oil, the global scenario in terms of economic recovery, government policy, security and diversity of energy supply and environmental pressures are all taken into account, though the weightage given to each factor will depend on the fund in question.
The portfolios tend to be very well diversified and are not seen to take undue risks in terms of very strong bets. Besides the number of stocks, they are even well diversified in terms of sector exposure.
The good thing about such a portfolio is the global exposure. For instance, amongst the top 10 stocks, Anadarko Petroleum Corporation is a US-based company, Talisman Energy is headquartered in Canada while Schlumberger Ltd is a French company. The diversification is not just geographical but even sector oriented. Anadarko Petroleum Corporation is an exploration and production firm. Schlumberger Ltd. provides technology and information solutions to oil companies. US-based National Oilwell Varco is a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production.
Before you bit the bullet
This fund is a good option if you want a portfolio exposed to energy-related companies across the world. The brand is extremely well known. As of March 31, 2011, BlackRock's assets under management totalled US$3.65 trillion across equity, fixed income, cash management, alternative investment, real estate and advisory strategies, making it the world's largest asset manager.
Despite the global exposure and the well diversified portfolios, end of the day it is a thematic fund. At Value Research, we have always been consistent in our view on this aspect - limit the exposure to such a product to not more than 15 per cent of your overall equity exposure.
Why the hike in crude does not work for Indian companies
The oil and gas industry is broadly divided into Upstream and Downstream. The upstream sector, also referred to as Exploration and Production (E&P), includes the search for oil and gas wells and fields and the subsequent drilling operations. The downstream sector relates to refining, marketing, selling and distribution of the products.
A rise in the price of crude should translate into a profit growth for upstream companies due to increased realisations and for downstream companies by improving refining margins. However, the public sector companies are bogged down by under-recoveries, which are losses incurred due to the selling of petrol, diesel, kerosene and domestic LPG below cost. While oil companies have been free since June 2010 to set the petrol price, decisions on increasing diesel, LPG and kerosene prices are taken after a go-ahead from an empowered group of ministers.
Upstream oil and gas producing companies (ONGC, Oil India, GAIL) are asked by the government to give discounts to the oil marketing companies (OMCs) on the ground that they benefit from an increase in global crude oil prices since their crude is benchmarked to international crude. While downstream refiners-cum-OMCs (Indian Oil Corporation, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd) bear the first-line impact of the under-recoveries, the net realisations of upstream oil majors are capped because of discounts on crude supplied to the downstream companies.
----------------------------------------------------------------- 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 IDFC Mutual Funds Online Invest in UTI Mutual Funds Online Invest in SBI Mutual Funds Online Invest in L&T Mutual Funds Online Invest in Edelweiss Mutual Funds Online  |
| UTI Mutual Fund - Its Schemes Posted: 23 Sep 2011 01:24 AM PDT |
| How to Choose a good financial advisor? Posted: 22 Sep 2011 11:51 PM PDT
Gone are the days when one would walk into the neighborhood shop that sells mutual fund units and insurance policies and asked for advice on what to do with one's money. Sure, the shop owner – who may sport disparate titles such as investment consultant, financial advisor, mutual fund advisor, insurance agent and so on -- was always helpful. He always knew the best mutual fund scheme, insurance policy, fixed deposit… everything you were looking for but didn't know where to find them. However, individuals are increasingly abandoning this ancient practice of signing a financial advisor. These days everyone wants a holistic advisor, who would offer wholesome advice that is tailor-made for every individual.
It is absolutely impossible for anyone to suggest a mutual fund scheme or an insurance plan by just looking at you. The so-called advisor or consultant was purely recommending schemes and policies that fetch him the maximum commission. It was a pure miracle if some of his recommendations really worked for the client. However, it would be foolish to opt for such a generalized advice anymore. The financial world is getting extremely complex and you should pick and choose investments that would suit you the best. It is not competition that draws such derisive remarks. Even customers are waking up to the problem. I wanted someone who would devote a lot a time to my investments. But, I realized only after a year and a half that I have to hire someone better if I want that kind of attention. A smalltime advisor won't have that kind of time or resources.
Deciding to hire someone qualified just doesn't solve the problem. In fact, hiring an advisor has become a problematic exercise for many investors. This is because depending on your pocket, you can get service of professionals who can offer your solutions that would range from simple to most complex. For example, if you have a mere one or two lakh rupees at your disposal, you can get an advisor who would give you vanilla solutions. However, if your pocket is a little deeper, the expert can offer you products that would range from safeguarding your capital to offer your returns that would be so many times your capital. "It is all about the individual, his wallet and his goals. The advisor or the manager can always design a portfolio to suit his needs," says a wealth manager.
Sure, one can always argue that not everyone needs such customization of portfolio. Still, there is no denying the fact that if your advisor knows you a little better, he would be in a better position to guide you. That is why the first thing you have to do is to ask yourself whether the advisor knows you at all. This is because if you are one of those people who sauntered into an advisor's office and bought a few products in a span of 15 minutes, chances are that you may have bought a few bad products. To explain, you may think the equity mutual fund scheme you bought is a simple product. But that need not be the case. For example, if you are a conservative equity investor who wants to play safe (yes, there are people who prefer to play it safe even when they invest in equity), your advisor would have given you a scheme that invests predominantly in large cap stocks. Alternatively, he would have given you a small or mid cap scheme if you are ready to take more risk. He would have even suggested a scheme that invests mostly in a sector that is witnessing a lot of action. In short, you need to communicate better.
Okay, you have started speaking to your investment advisor as if he was your best buddy in school. What next? Obviously, he will start suggesting financial solutions to your problems. Keep your ears open and ask questions whenever you feel he is speaking Greek. Don't be nervous. You are not a financial geek and don't try to hide it. You advisor knows that you are hiring him precisely for that reason. This is an usual problem faced by most people. They don't understand the product but would still sign up for it because they think it is embarrassing to ask for more explanations. The rule of the game is very simple: don't buy it if you don't understand it.
Need a stick to beat the advisor who is speaking gibberish? Simple. Listen carefully whether he claims the returns are guaranteed, assured and so on when it comes to investing in the stock market. Always remember the stock market just doesn't assure you any returns. So when the advisor is telling you the market has given 50% last year and the performance is going to be repeated this year, look him in the eye and repeat the statutory disclaimer to him that past performance is not an indication of future returns. Another red flag is
when your advisor starts speaking about quick gains. The moment you hear him promising huge returns (that is, substantially higher than the prevailing rates) from mutual funds and insurance plans in a quarter, head to the door. According to experts, these tall claims are used by some advisors to lure customers who wouldn't sign him otherwise. If the advisor gets to know you are not looking to get rich overnight (and lose your shirt in the process), he may offer genuine solutions.
Always place emphasis on professional qualifications of the advisor, his client base and his performance record for at least five years. Remember, someone is always looking to change his profession and that person could be the advisor you have just spotted. Sadly, most of these wannabes shut shop in no time, leaving their clients in the lurch. So, it is always better to speak to one of his client first before engaging with him. If he is new to the profession, it is always better to look for someone more seasoned. The exception to this rule is if he was previously employed in a solid financial institution and trying to strike it out on his own. Lastly, negotiate the fee with him. There are professionals who give you advice for a fee. Also, there are others who would do it free for you if you buy financial products from them. It is always better to pay for the fee as it would ensure that the person is not trying to push products that would earn him good commission. However, you can opt for mix of both provided you know when to say no to a product.
HOW TO SPOT THE RIGHT ADVISOR?
Ø Don't just settle for a neighbourhood mutual fund or insurance sales person as your advisor. Ø Look for a qualified professional with good client base and a long track record in the business. Ø Always ask questions if you don't follow the advice; don't try to conceal your ignorance about financial products Ø If the person assures you returns that are well above the prevailing market rates, you should be extremely careful Ø Don't fall for short term performance of schemes, always look at the performance record for at least five years  |
| Schemes from Birla Sun Life Mutual Fund Posted: 22 Sep 2011 09:55 PM PDT The fund offers a range of investment options, which include diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds.
BSLAMC follows a long-term, fundamental research based approach to investment. The approach is to identify companies, which have excellent growth prospects and strong fundamentals. Equity Schemes Diversified Fund Birla Sun Life Pure Value Fund Birla Sun Life Pure Value Fund is a fund that seeks to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy. Birla Sun Life Frontline Equity Fund Birla Sun Life Frontline Equity Fund is an open-ended diversified equity fund, which invests in handpicked frontline stocks (i.e. stocks which have the potential of providing superior growth opportunities) such that it is representative of all leading sectors of its chosen benchmark. Birla Sun Life - Tax Relief'96 This fund aims at achieving long term growth of capital along with Income Tax benefits for investors under section 80C. Birla Sun Life International Equity Fund Plan A-100% Intl. allocation
Capitalizes the strengths of individual countries all across the world.
The fund identifies top performing stocks even in markets that post low growth figures.
Plan B-30% Intl. allocation
Capitalizes the strengths of individual countries all across the world.
The fund identifies top performing stocks even in markets that post low growth figures. Birla Sun Life Advantage Fund This fund ensures that your hard-earned savings are invested in a way that earns superior returns. Birla Sun Life Long Term Advantage Fund Objective
Long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity related securities. Birla Sun Life Tax Plan The fund offers superior growth opportunities and avail benefits under Section 80C of the Income Tax Act, 1961. Birla Sun Life Equity Fund This Fund enables investors to capitalize on the immense growth opportunities provided by the stock market while at the same time minimizing the risk. Birla Sun Life Midcap Fund Birla Midcap Fund is an open ended growth fund which focuses on investing in the Midcap segment of the market with a disciplined investment approach.
The fund seeks to achieve long-term growth of capital at controlled level of risk by primarily investing in Mid Cap Stocks. Birla Sun Life Special Situations Fund The objective of the scheme is to generate long-term growth of capital by investing in a portfolio of equity and equity related securities. The scheme would follow an investment strategy that would take advantage of special situations and contrarian investment style. Birla Sun Life Top 100 Fund Birla Top 100 Fund is an open ended growth scheme which will focus on investing predominantly in a diversified portfolio of Large Cap stocks. Birla Sun Life Long Term Advantage Fund - Series 1 The objective of the fund is to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities of companies considered to be small and mid cap. Birla Sun Life Dividend Yield Plus Birla Dividend Yield Plus has a portfolio that seeks to provide a combination of high dividend yield, Substantial capital protection and strong possibility of capital gains Birla Sun Life Index Fund Birla Index Fund is an open ended Index Linked Growth Scheme with an objective to generate returns that are commensurate with the performance of the Nifty. Theme Based Fund Birla Sun Life India GenNext Fund The basic theme of the Birla India GenNext Fund is to target growth of capital by investing in companies that are expected to benefit from the changing consumption patterns in India. Birla Sun Life India Opportunities Fund Birla India Opportunities Fund (BIOF) is an open-ended scheme that invests in foreign exchange earning companies. BIOF aims to identify companies that seek to utilize India's low cost and high quality resources to service the needs of global customers. Birla Sun Life MNC Fund The fund invests exclusively in securities of multinational companies in order to achieve long-term growth of capital with relatively moderate levels of risk. Birla Sun Life Basic Industries Fund Birla Sun Life Basic Industries Fund is an open-ended equity fund investing in basic and core sector industries like Banks, Capital goods and Automobiles. Birla Sun Life Infrastructure Fund Birla Infrastructure Fund seeks to provide medium to long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity related securities of companies that are participating in the growth and development of Infrastructure in India. Sectoral Fund Birla Sun Life Buy India Fund Objective
Birla Sun Life Buy India Fund is a multi sector open-end growth scheme with the objective of long-term growth of capital through a portfolio with a target allocation of 100% equity, focusing on investing in businesses that are driven by India's large population and inherent consumption patterns. The secondary objective is income generation and distribution of dividend.
Minimum subscription amount
Rs.5,000/- and in multiples of Re. 1/- thereafter
Entry Load
For Purchase / switch in of units less than Rs. 5 Crores in value: 2.25% For Purchase / switch in of units equal to or greater than Rs. 5 Crores in value: NIL
Exit Load
For Purchase / Switch in of Units, less than Rs. 5 crores in value, an exit load of 1.00% is payable if units are redeemed / switched out within 12 months from the date of allotment. For Purchase / Switch in of Units, equal to or greater than Rs. 5 crores in value, no exit load is payable. Birla Sun Life New Millennium Fund Objective
Birla Sun Life New Millenium Fund is a multi-sector open-end growth scheme with the objective of long-term growth of capital through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. The secondary objective is income generation and distribution of dividend.
Minimum subscription amount
Rs.5,000/- and in multiples of Re. 1/- thereafter
Entry Load
For Purchase / switch in of units less than Rs. 5 Crores in value: 2.25% For Purchase / switch in of units equal to or greater than Rs. 5 Crores in value: NIL
Exit Load
For Purchase / Switch in of Units, less than Rs. 5 crores in value, an exit load of 1.00% is payable if units are redeemed / switched out within 12 months from the date of allotment. For Purchase / Switch in of Units, equal to or greater than Rs. 5 crores in value, no exit load is payable. Debt Schemes Long Term Fund Birla Sun Life Income Plus Birla Income Plus (BIP) is an open-ended debt scheme with the objective to generate consistent income through superior yields on its investments at moderate levels of risk through a diversified investment approach. Birla Sun Life Income Fund Birla Sun Life Income Fund (Formerly: Alliance Income Fund) is an open-ended income scheme with the objective of generating income and capital appreciation by investing 100% of the corpus in a diversified portfolio of debt and money market securities. Birla Sun Life Dynamic Bond Fund Birla Dynamic Bond Fund is a scheme with an investment objective to generate optimal returns with high liquidity through active management of the portfolio by investing in high quality Debt and Money Market Instruments.
Gilt Fund Birla Sun Life Gilt Plus • Liquid Plan
• PF Plan
Its Objective is to generate income and capital appreciation through investments exclusively in Government securities.
• Regular Plan
Birla Gilt Plus invests exclusively in Central Government Securities with an objective of generating income and capital appreciation for the investors. Birla Sun Life - Government Securities Fund (LTP) The Scheme seeks to provide investors investors current income consistent with a portfolio invested 100% in securities issued by the Government of India or the State Government and the secondary objective is capital appreciation. Short Term Fund Birla Sun Life Liquid Plus The primary objective of the scheme is to generate regular income through investments in debt and money market instruments. Income may be generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The scheme will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents. Birla Sun Life - Short Term Fund Birla Sun Life Short Term Fund aims to generate income and capital appreciation by investing 100% of the corpus in a diversified portfolio of debt and money market securities with relatively low levels of interest rate risk. Floating Rate Fund Long Term Plan The primary objective of the Scheme is to generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments. The scheme may invest a portion of its net assets in fixed rate debt securities and money market instruments. The scheme will endeavour to minimize interest rate risk and act as a hedge against increase in interest rates. Short Term Plan The primary objective of the Scheme is to generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments. The scheme may invest a portion of its net assets in fixed rate debt securities and money market instruments. The scheme will endeavour to minimize interest rate risk and act as a hedge against increase in interest rates. Cash Fund Birla Sun Life Cash Plus Its objectibe is to provide reasonable returns at a high level of safety and liquidity through judicious investments in high quality debt and money market instruments. Birla Sun Life - Cash Manager Birla Sun Life Cash Manager aims to provide current income, which is consistent with a portfolio that offers superior liquidity by investing 100% in a diversified portfolio of debt (fixed income) & money market securities. Fixed Maturity Plan Birla Sun Life FMP Birla Fixed Maturity Plan is specifically designed to control price risk. It is ideal for risk averse investors seeking stable returns over a fixed period similar to bank fixed deposits. Fixed Term Funds • Birla Sun Life Fixed Term Plan Series Interval Income Funds • Birla Sun Life Interval Income Fund Series Hybrid Schemes Balanced Funds Birla Sun Life Balance Birla Balance strikes a balance between the growth that equity offers and the safety that debt provides, thus seeking to maximize returns on your investments at moderate levels of risk. Birla Sun Life 95 Fund Birla Sun Life 95 Fund strikes a balance between the growth that equity offers and the safety that debt provides, and thereby helps you achieve the best of both worlds. Thus fund seeks to maximize returns on your investment at moderate levels of risk. MIP Birla Sun Life MIP Birla MIP is an open-ended income scheme which seeks to generate regular income through investments in fixed income securities so as to make monthly payment or distribution to Unit-holders with the secondary objective being growth of capital through investments in equity. Birla Sun Life MIP II Saving 5 Plan
Its objective is to generate regular income through investment in fixed income securities so as to make monthly payment or distrbutions to unit holders with the secondary objective being growth of capital.
Wealth 25 Plan
Its objective is to generate regular income through investment in fixed income securities so as to make monthly payment or distrbutions to unit holders with the secondary objective being growth. Birla Sun Life - Monthly Income Birla Sun Life Monthly Income is an open-end regular income scheme with the primary objective to generate regular income so as to make monthly and quarterly distributions to Unit-holders and the secondary objective being growth of capital. Fund of Funds Birla Sun Life Asset Allocation Fund Conservative:
It provides a convenient and inexpensive way of creating a basket of funds for the investor, which is rebalanced monthly. The scheme has the option of investing upto 30% of its assets in schemes managed by other Mutual Funds.
Moderate:
It provides a convenient and inexpensive way of creating a basket of funds for the investor, which is rebalanced monthly. The scheme has the option of investing upto 30% of its assets in schemes managed by other Mutual Funds.
Aggressive:
It provides a convenient and inexpensive way of creating a basket of funds for the investor, which is rebalanced monthly. The scheme has the option of investing upto 30% of its assets in schemes managed by other Mutual Funds. Capital Protection Fund Birla Sun Life Capital Protection Oriented Fund Birla Sun Life Capital Protection Oriented Fund is a capital protection oriented scheme with an objective to seek capital protection by investing in high quality fixed income securities maturing in line with the tenure of the scheme and seeking capital appreciation by investing in equity and equity related instruments.  |
| What is a credit history? Posted: 22 Sep 2011 07:59 PM PDT Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing their loans and repayments will find that this is captured in their credit history, and their past behaviour can adversely affect their ability to get loans in the future. Let us understand this better with an example. There are two credit card customers — Shubham and Diven who are colleagues at a software company and have an identical salary package. Shubham has been very cautious of making timely payments on his card and has regularly paid all the bills. After a year, Shubham applied for a Rs. 3 lakh personal loan and the loan got approved quickly since Shubham had a good repayment track record. Diven, on the other hand, used his credit card carelessly and was always late in paying his dues, and even defaulted on his outstanding balance, after which he moved residences as he thought it would be difficult for the credit card company to track him After a few months when Diven applied for a personal loan, his application was rejected. The lender reviewed Diven's credit history and observed that his past repayment behaviour was poor, and so the lender did not want to risk giving him a fresh loan. Why have a clean credit history? Good borrowers who repay their debt on time and in full over time develop the reputation of being lower risk. Lenders will be willing to offer such borrowers such concessions that they will not give to riskier borrowers who have a bad credit history. - Better bargain with the lender: If you have a clean credit record, then you can bargain with the lender for slightly cheaper rates for home, car, personal or any other loan. You might also find that the lender is willing to get give you better terms such as a slightly higher loan amount, or better repayment tenure.
- Loans will be processed faster: If the credit bureau's databases show that you have a good credit history, the lender will have no reason to delay processing and thereafter sanctioning your loan. This can give you a lot of peace of mind and save you a lot of time and running around, especially when your need to get a loan is time sensitive (for instance, where you need a home loan approved to apply for a property transaction before a certain deadline).
Where can you find your credit history? You can find your credit information report from credit reporting agencies like Credit Information Bureau India Ltd (CIBIL), Equifax India and other such credit bureaus. Each of these credit agencies captures your credit history by means of a score. If you wish you see your score, you can apply to one of these agencies and get your credit history by paying a fee that could be as low as Rs 150. They usually take up to 2-3 weeks to despatch it to you. What are the good habits for a clean credit history? Every one can work towards building a clean credit record with a little bit of effort. So whether you have a lot of debt outstanding or have never had debt before, building and maintaining a credit history is totally within your control. Some good habits that you should follow are: - Pay your bills on time: Maintain a good repayment record on all your payments due as that is the first step to a clean credit history. These payments can be monthly instalment towards your house or car, a personal loan or a credit card. Sometimes, credit bureaus might even track how timely you are in paying your utility bills like for water and electricity, as these can serve as a proxy for how you behave when you owe money to someone.
- Check your credit score: If you are going to be in the market to apply for a loan, it might be worth your effort to get your credit score from one of the bureaus. If you see that something has been captured in error or is wrong, you can ask for it to be corrected or at least you can ask for a clarification before you make your loan application
- Keep the number of loans to a minimum: Credit is easily accessible in India now, but just because its available does not mean that you should take multiple loans. Credit bureaus also track the number of loans you have outstanding and if its seen that you take a loan for everything then it will suggest that you are living beyond your means. Clear off existing debts before you take on fresh loans. If you take too many loans you might enter a vicious cycle of having to take fresh loans just to pay off old debts.
- Maintaining account balance to avoid cheque bounces: If certain EMI payments or bills are due, make sure you have enough in your savings account to meet these payments. The last thing you want is to suffer from late payment just because of a cheque bounce.
What are the bad habits that you should avoid that could impact your credit history? Some common habits to should avoid are: - Using credit card to withdraw cash: Don't use your credit card to withdraw cash, use only your debit card. This way you know you are accessing only that cash that is within your means by virtue of being in your account.
- Avoid too many loan applications: Lenders track the loan applications that you make. If one lender has rejected you, doesn't mean you apply to a dozen other lenders so that you can improve your chances of getting a loan. Credit agencies also capture the number of times you make loan applications. The more applications you make, the more is suggests that you are desperate for a loan and this can be interpreted that you might be high risk
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| I-T returns: Refunds may take time Posted: 22 Sep 2011 11:31 AM PDT Individuals should file their returns as soon as possible after 1st April. However the income tax department does not publish revised forms and related instructions until well past that date. Therefore although in theory, the individual is entitled to file his returns as early as he chooses, in actual practice he is officially hindered from doing so until much later. COLLATING DATA Tax payers are asked to collect their personal financial data before the end of the financial year. Each year, many people do maintain details from 1st April onwards each year through a spreadsheet. But, one has to struggle to finalise this information after 31st March mostly because banks do not provide interest certificates for the previous twelve months sometimes until well into May. This inhibits correct accounting of both, income and TDS deducted, particularly relating to cumulative deposits. FORM 16A Both banks and other investment institutions do not provide Forms 16A often until June of the following year, despite being urged to do so much earlier. According to them, income tax authorities have given them liberty to finalise such documentation only by end May, how can one file one's returns well before the final date. ONLINE DATA Tax authorities have been touting the introduction of direct access to information provided in the Form 26AS, on its website. But there have been instances when the information displayed therein, regarding interests and tax deducted at source (TDS), from a leading private sector bank, were erroneous. This, even while the data on the physical interest Certificate which the branch gave was correct. Since the IT Department refuses to accept documentary support to returns, the individual in this case was told, that the assessment would be based only on what appeared on his 26AS display. This reduced the refund due to him. It took the bank over two months to remedy their faults. In the process, the returns could be only in the third week of July. PAYING CAPITAL GAINS Individuals are required to pay the due capital gains taxes, within the end of the quarter in which these are generated. Indexation of Long Term Capital Gain (LTCG)is permissible, but the department does not provide the index figure for the current financial year usually until almost its end. Thus, compute of dues is an issue. Ideally, this data should be available before August end each year. Currently, tax payers have to pay an interest on tax shortfalls, if their indexation figures are more favourable than the department's. MAJOR EXPENSES The returns filed should report major expenditures. But, any such requirement is known only through the design of the form and the attached instructions which are published well after the end of the financial year. By then, an individual might not have recorded the previous twelve months' data. Unless, any such requirement is made known before the end of April of the financial year for which it will apply, it isf difficult to gather such data. Ideally, failing such an announcement, such requirement should be prohibited from being mandatory until the following financial year. QUICK REFUNDS Early submission of returns are supposed to result in quick issue of any due refunds. But, this really hasn't been the case for many tax payers, who are still awaiting refunds.  |
| Schemes from Tata Mutual Fund Posted: 22 Sep 2011 09:22 AM PDT Tata Mutual Fund manages around Rs. 20,443.00 crores (average AUM for the month) as on July 31, 2008 worth of assets across its varied offerings. Tata Mutual Fund offers an investment option for everyone, whether you are a businessman or salaried professional, a retired person or housewife, an aggressive investor or a conservative capital builder. Equity Schemes Tata Equity Fund Objective
To provide income distribution and/or medium to long term capital gains while at all times emphasizing the importance of capital appreciation.
Option Available
Growth and Dividend
Entry Load
For investment amount greater than or equal to Rs.1 crore: Nil.
For investment amount less than Rs.1 crore: 2.25%.
Exit Load (as a % of the Applicable NAV)
For each investment amount of less than Rs. 1crore: 1% if redeemed on or before expiry of 6 months from the date of allotment;
For each investment amount greater than or equal to Rs.1 crore: Nil
Minimum Application Amount
Rs.5,000/- & in multiples of Re.1/- thereafter. Tata Tax Saving Fund Objective
To provide medium to long term capital gains along with income tax relief to its unitholders while emphasizing the importance of capital appreciation.
Option Available
Dividend
Entry Load
For Each Investment amount < Rs. 2 Crores - 2.25%.
For Each Investment amount >= Rs. 2 crore - Nil.
No entry load will be charged on investment made by the Fund of Fund Scheme.
Minimum Application Amount
Rs.500/- and thereafter in multiples of Rs.500/- Tata Select Equity Fund Objective
To provide income distribution and/or medium to long term capital gains while at all times emphasising the importance of capital appreciation.
Option Available
Growth & Dividend
Entry Load
For Each Investment amount < Rs. 1 Crores - 2.25%.
For Each Investment amount >= Rs. 1 crore - Nil.
No entry load will be charged on investment made by the Fund of Fund Scheme.
Exit Load
For investment amount greater than or equal to Rs. 1 crore: NIL.
For investment amount less than Rs. 1 crore: 1% if redeemed within 6 months from the date of allotment.
No exit load will be charged on investment made by the fund of fund scheme.
Minimum Application Amount
Rs.500/- and thereafter in multiples of Rs.500/- Tata Life Sciences and Technology Fund Objective
To provide medium to long term capital gains and/or income distribution along with capital gains tax relief to its unitholders, while at all times emphasising the importance of capital appreciation.
Option Available
Growth & Dividend
Entry Load
For Each Investment amount < Rs. 2 Crores - 2.25%.
For Each Investment amount >= Rs. 2 crore - Nil.
Exit Load
For investments greater than or equal to Rs.2 crore: Nil
For investments less than Rs.2 crore: 1%, if redeemed with in 6 months from the date of allotment.
No exit load will be charged on investment made by the fund of fund scheme
Minimum Application Amount
Rs.5,000/- and in multiples of Re.1/- thereafter. Tata Equity Opportunities Fund Objective
To provide medium to long term capital gains and/or income distribution along with capital gains tax relief to its unitholders, while at all times emphasising the importance of capital appreciation.
Option Available
Growth & Dividend
Entry Load
For Each Investment amount < Rs. 2 Crores - 2.25%.
For Each Investment amount >= Rs. 2 crore - Nil.
Exit Load
For investments greater than or equal to Rs.2 crore: Nil.
For investments less than Rs.2 crore: 1%, if redeemed with in 6 months from the date of allotment.
No exit load will be charged on investment made by the fund of fund scheme.
Minimum Application Amount
Rs.5,000/- and in multiples of Re.1/- thereafter. Tata Index Fund Objective
To provide medium to long term capital gains to its Unitholders.
Option Available
NIFTY Plan & SENSEX Plan
Entry Load
Option A-1%
Minimum Application Amount
Option A: Rs.5,000/- & in multiples of Re.1/- thereafter.
Option B: Rs.10 Lakhs & in multiples of Re.1/- thereafter. Tata Growth Fund Objective
To provide reasonable and regular income along with possible capital appreciation to its unitholder.
Option Available
Dividend Option, Growth Option & BonusOption.
Entry Load
For investment amount > = Rs 5 crores or more: Nil.
For investment amount < Rs 5 crores: 2.25%.
No entry load will be charged on investment made by the Fund of Fund scheme.
Minimum Application Amount
Rs.5,000/- & in multiples of Re.1/- thereafter. Tata Equity P/E Fund Objective
To provide reasonable and regular income along with possible capital appreciation to its unitholder.
Option Available
Dividend Option, Growth Option.
Entry Load
For investment amount > = Rs 5 crores or more: Nil.
For investment amount < Rs 5 crores: 2.25%.
No entry load will be charged on investment made by the Fund of Fund scheme.
Minimum Application Amount
Rs.5,000/- & in multiples of Re.1/- thereafter. Tata Dividend Yield Fund Objective
To provide income distribution and / or medium to long term capital gains by investing predominantly in high dividend yield stocks. Tata Infrastructure Fund Objective
To provide income distribution and / or medium to long term capital gains by investing predominantly in equity / equity related instrument of companies in infrastructure sector. Tata Service Industry Fund Objective
To provide income distribution and / or medium to long term capital gains by investing predominantly in equity / equity related instrument of companies in the service sector Tata Mid Cap Fund Objective
To provide income distribution and / or medium to long term capital gains by investing predominantly in equity / equity related instrument of mid cap companies. Tata Contra Fund Objective
To provide income distribution and/or medium tolong term capital gains while at all times emphasizing the importance of capital appreciation. However there is no assurance that the investment objective of the scheme will be achieved.Contrarian investing refers to buying into fundamentally sound scripts that have been overlooked by the market (for reasons of short term trend) and waiting for the market to give these stocks their real value in course of time. Tata Tax Advantage Fund 1 Objective
To provide income distribution and/or medium to long term capital gains while at all times emphasising the importance of capital appreciation. income distribution and/or medium to long term capital gains while at all times emphasising the importance of capital appreciation. Tata Equity Management Fund Objective
To seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related instruments and the secondary objective is to generate consistent returns by investing in debt and money market securities. The fund will have the flexibility to invest in a wide range of companies with an objective to maximize the returns, at the same time trying to minimize the risk by reasonable diversification and using derivative as a risk management tool. Tata Capital Builder Fund Objective
To generate capital appreciation over a period of 3 years by investing predominantly in equity & equity related instruments of companies across large, mid and small market capitalisations. Tata Indo-Global Infrastructure Fund Objective
To generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated to have their area of primary activity, in India and other parts of the World. Tata Growing Economies Infrastructure Objective
Plan A: Investment objective of the scheme is to generate capital appreciation / income by investing predominantly in equities of companies in infrastructure and other related sectors in the growing economies of the world and in India. The investment focus would be guided by the growth potential and other economic factors of the countries. Atleast 51% of the net assets would be invested in geographies outside India.
Plan B: Investment objective of the scheme is to generate capital appreciation / income by investing predominantly in equities of companies in infrastructure and other related sectors in India and other growing economies of the world. The investment focus would be guided by the growth potential and other economic factors of the countries. Balanced Schemes Tata Balanced Fund Objective
To provide income distribution and / or medium to long term capital gains while at all times emphasising the importance of capital appreciation.
Option Available
Growth & Dividend
Entry Load
For each Investment amount less than Rs 2 crores : 2.25%
For each Investment amount equal to or more than Rs. 2 crores : Nil.
Exit Load
For investment amount greater than or equal to Rs. 2 crores: NIL.
For investment amount less than Rs. 2 crores: 1% if redeemed within 6 months from the date of allotment.
Minimum Application Amount
Rs.5,000/- and in multiples of Re.1/- thereafter Tata Young Citizen' Fund Objective
To provide long-term capital growth along with steady capital appreciation to its unit holders, while at all times emphasising the importance of capital preservation.
Option Available
Growth Option
a). Anytime Exit Option: Under this option parent/guardian will be allowed to redeem/switch the investments before the child attains 18 years of age.
b). Lock-in Option: Under this option investment will be locked in till the child attains 18 years of age. No repurchase/switch will be allowed before the child attains 18 years of age.
Entry Load
2.50%
Exit Load
If Child attains majority after 7 years from the date of allotment:-
Less than 3 years - 3%
Between 3 & 7 years - 2%
More than 7 years - 1%
No load after the child attains majority
If Child attains majority before 7 years from the date of allotment:-
Less than 3 years - 3%
Between 3 & 7 years - 2%
More than 7 years - NIL
Minimum Application Amount
Rs.500/- & in multiples of Rs.500/- thereafter. Tata SIP Fund Scheme-1 Objective
To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments.
Option Available
Growth & Dividend
Minimum Application Amount
Rs.5,000/- & in multiples of Re.1/- thereafter. Debt Schemes Tata Short Term Bond Fund Objective
To provide reasonable returns and high level of liquidity by investing in short- term debt instruments.
Option Available
Dividend Option and Growth Option
Minimum Application Amount
Rs.10,000/- and in multiples of Re.1/- thereafter. Tata Gilt Securites Fund Objective
To generate risk-free return and thus provide medium to long term capital gains and income distribution to its unitholders, while at all times emphasising the importance of capital preservation.
Option Available
Regular Plan
Short Maturity Plan
High Investment Plan
Retirement Planning Series
Under each plan there is Dividend / Bonus and Growth options
Minimum Application Amount
Rs.10,000/- & in multiples of Re.1/- for Regular & Short Maturity Options .
Rs. 50,000/- & in multiples of Re.1/- for High Investment Plan & Retirement Planning Series Tata Income Fund Objective
To provide income distribution and/ or medium to long term capital gains while at all times emphasising the importance of safety and capital appreciation.
Option Available
Half-Yearly Dividend Option / Quaterly Dividend / Periodic Dividend / Bonus/ Growth Option.
Minimum Application Amount
Rs.5,000/- & in multiples of Re.1/- thereafter for Half Yearly, Growth, Periodic Dividend & Bonus Options.
Rs.25,000/- & in multiples of Re. 1/- thereafter for Quarterly Option. Tata Income Plus Fund Objective
To provide income/ bonus distribution and / or medium to long-term capital gains while at all times emphasising the importance of safety and capital appreciation.
Option Available
Plan A and Plan B
Each Plan has two options - Bonus / Income and Growth
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. Tata Fixed Horizon Fund Series-5 Objective
To generate regular income and / or capital appreciation by investing in wide range of debt and Money Market instruments.
Option Available
Plan A : 6 months
The plan offers Dividend option and Growth option. Dividend will be compulsorily re-invested.
Minimum Application Amount
Minimum of Rs.10, 000/- and in multiples of Rs 1/- thereafter. Tata Fixed Horizon Fund Series-6 Objective
To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments.
Option Available
Plan C/Plan D : 13 months
The plan offers Dividend option and Growth option
Plan E/Plan F : 18 months
The plan offers Dividend option and Growth option
Minimum Application Amount
Minimum of Rs.10, 000/- and in multiples of Rs 1/- thereafter. Tata Fixed Horizon Fund Series-13 Objective
To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments.
Option Available
Plan B / Plan C: 371 days
Plan D / Plan E: 18 months
Minimum Application Amount
Plan B / Plan C / Plan D / Plan E:- Regular Plan:- Minimum of Rs.10, 000/- and in multiples of Rs 1/- thereafter.
Institutional Plan:- Minimum of Rs.10,00,00,00/- and in multiples of Rs 1/- thereafter. Tata Fixed Horizon Fund Series-14 Objective
To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments. Tata Fixed Horizon Fund Series-17 Objective
To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments. Tata Fixed Horizon Fund Series-19 Objective
To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments. 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. Tata Floating Rate Fund Objective
To generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments.
Option Available
Short Term Option, Long Term Option, Institution Plan.
Each option has Bonus/ Income and Growth plans.
Minimum Application Amount
For Long term and Short Term Rs 10, 000/- and in multiples of Re 1/- thereafter.
For Institutional Plan Rs 1 crore and in multiples of Re 1/- thereafter. Tata Liquid Fund Objective
To create a highly liquid portfolio of good quality debt as well as money market instruments so as to provide reasonable returns and high liquidity to the unitholders.
Option Available
Regular Investment Plan(RIP : Offers Daily / Fortnightly Dividends and Growth Option.
High Investment Plan (HIP): Offers Daily / Weekly / Monthly Dividends and Growth Option.
Super High Investment Plan (SHIP): Offers Daily / Weekly / Monthly Dividends and Growth Option.
Minimum Application Amount
Regular Investment Plan (RIP): Rs.10,000/- and in multiples of Re.1/- thereafter.
High Investment Plan (HIP): Rs.10 lakhs and in multiples of Re.1/- thereafter.
Super High Investment Plan (SHIP): Rs.1 crore and in multiples of Re. 1/- thereafter. Tata MIP Plus Fund Objective
To provide reasonable and regular income along with possible capital appreciation to its unit holders. Other Schemes Are: • Tata Floater Fund
• Tata Liquidity Management Fund
• Tata Treasury Manager Fund
• Tata Fixed Income Portfolio Fund
• Tata Fixed Investment Plan 1
• Tata Fixed Investment Plan 2 ----------------------------------------------------------------- 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 IDFC Mutual Funds Online Invest in UTI Mutual Funds Online Invest in SBI Mutual Funds Online Invest in L&T Mutual Funds Online Invest in Edelweiss Mutual Funds Online  |
| Mutual Fund Review: Principal Monthly Income Plan Posted: 22 Sep 2011 07:27 AM PDT Name: Principal Monthly Income Plan-G
Type: Open-Ended Debt-MIP
Fund Manager: Mr. Sandeep Bagla & Mr. Shyam Bhat
Inception Date: May 23, 2002 Principal Monthly Income Plan an open ended monthly income plan from Principal Mutual Fund seeks to generate regular income through investments in debt securities to enable periodical income distribution and also to generate long-term capital appreciation by investing a portion in equity related instruments. It could invest upto 100% in debt and money market instruments with yield between 6% and 9% and upto 15% in equity and equity-related instruments. As on May 2006 it has allocated 81.08% if its assets in debt, 12.59% in equities and rest in cash & equivalent. Its equity component has been fluctuating in the range of 8% to 14% in last one year with average allocation at 10.57%. The scheme had a good start but higher maturity profile, lower equity allocation and frequent churning of the portfolio hauled the returns of the fund in later years. During last one year period it has posted an absolute return of 4.75% while its benchmark and peers were much ahead with returns of 8.07% and 8.17% respectively. The scheme manages the corpus of Rs 63 crore as on May 2006 and has gone down by 56% compared to the previous year. The debt portfolio has been invested in floating rate funds, asset backed securities and non convertible debentures. It has allocated 36.36% of net assets in commercial bonds, 6.3% in T-Bill and rest in securitised debt and equities. Majority of the debt portfolio is invested in good quality rated papers with triple AAA and AA+ rated papers accounting for 25.3% and 11.06% respectively. As on May 2006 it had an average maturity of 949 days which is on the higher side compared to the category average. On the equity side its portfolio is spread across 48 stocks which seem to be large looking at present asset base and 13% equity exposure. Top ten holdings account for more than quarter of its equity portfolio with Britannia industries in top spot. Software sector has received highest exposure at 10.16% followed by Housing & Construction and Diversified sector at 9.21 % and 7.62% respectively. The fund has reasonable mix of largecap, midcap and small cap stocks but nothing proved to be the multibaggers as it had large no of stocks with low exposure and frequently moved in and out of the stocks. Minimum investment required to opt for growth plan is Rs 5000 and Rs 10000 for dividend plan. It charges an Exit load of 0.5% for investments upto Rs 10 lakh and if redeemed within 6 months and 0.25% for investment amount above Rs 10 lakh and less than Rs 5 crore and if redeemed within 30 days from the date of allotment.. While no entry load is charged for the scheme. It is benchmarked against Crisil MIP Blended Index. Expense Ratio of the scheme as on May 31, 2006 is 2% and is a bit higher than the category average of 1.96%.  |
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