Sunday, October 9, 2011

Prajna Capital

Prajna Capital

SBI MF Launches SBI Debt Fund Series 367 Days - 7

Posted: 09 Oct 2011 01:57 AM PDT

SBI Mutual Fund has launched SBI Debt Fund Series 367 Days – 7. The new fund offer will be open for subscription on October 11, 2011.

The minimum investment amount will be Rs. 5000 and in multiples of Rs. 10 thereafter. The scheme would have the growth as well as dividend option.

The scheme will be listed on the Bombay Stock Exchange.

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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 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

 

A Good Credit Score can make Access to Loans easier

Posted: 08 Oct 2011 10:43 PM PDT



Since the growth of the credit information industry, the only implemented generic scoring model that has been introduced and is being used extensively by lenders in India is the Cibil TransUnion Score.


Through advanced analytics, this score assigns a number from 300 to 900 to a borrower based on the credit history. The higher the numerical value of the score, the lower is the risk associated with the individual. Here is how you can manage your credit score for deriving maximum benefit for accessing credit and developing this vital reputational collateral.


Almost all the credit institutions in India use the Cibil TransUnion Score while deciding on the loan application of a consumer. It is, therefore, imperative for you to access your credit score before applying for a loan to get a precise understanding of your credit standing and the likelihood of the loan approval. This will enable you to see yourself as loan providers do and make prudent borrowing decisions. Therefore, as a first step to managing your credit score, it is imperative to know what your current Cibil TransUnion Score is.


You can know your score by accessing it from Cibil along with your Cibil CIR for . 450. The payment can be made by following an online payment procedure or through a demand draft. Along with the application form and online payment receipt or demand draft, you will have to submit documents as identity and address proof.


Once you have accessed your score it is important to review it and understand how your credit score has been derived.


Your Cibil TransUnion Score is calculated based on the information in the "accounts" and "enquiry" section of your Cibil CIR. A majority of the score is made up of the following factors:

CREDIT UTILISATION:

How much credit is the consumer using?

DEFAULTING:

How many accounts are past due date – how much and by how many days?

NUMBER OF ENQUIRIES:

Has the consumer applied for additional credit lines?

TRADE ATTRIBUTES:

How old are the consumer's lines of credit? What type of credit does he have? Does the consumer have a good mix or balance of credit or is it all credit cards?
Now that you know your score and the broad factors that determine the credit score, it is imperative to understand how to manage your credit score. Here are some ways to make sure that you are being financially disciplined and, thereby, maintaining a healthy credit score:

EMIS:

Pay your loan EMIs on time. If you have more than one loan running, it is prudent to track it well. Make regular and timely re-payments of your loan to maintain your credit level.

CREDIT CARD:

Never fail to pay the minimum payment on your credit card. Credit card is categorised as revolving credit and it helps in building a good credit score if payments are regular.

CREDIT EXPOSURE:

Do not apply for loans or credit cards if not required, as this would mean more credit exposure. This could affect your credit score. Instead of applying for another loan, try checking for a top-up loan option on your existing loan. This will make your debt burden easier to manage.

REPAYING DEBT:

Use some of your savings to repay some of your debt. Always plough back extra income to reduce your debts.

REVIEW:

Review your credit history and credit score frequently, throughout the year.
For maintaining a good history and subsequently a worthy credit score, you should ensure that you are always in control of your finances.


Remember, a good credit history results in speedier access to credit. It is beneficial to both the credit grantor as well as the borrower.


However, if your credit score is low, don't be disheartened. The credit system always gives chances to improve. You can start improving your credit score by simply paying off your debt and not opting for more until your score improves. Better late than never!

 

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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 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

 

How to Calculate Mutual Funds’ Cost(s)?

Posted: 08 Oct 2011 08:33 PM PDT

Mutual funds entails several costs, payable at different stages. These include:

On investing: Entry load or the upfront fee levied by mutual funds while investing was abolished by Securities and Exchange Board of India (Sebi) from August 1, 2009. In lieu of that, an advisory fee of 1-2 per cent of the investment amount is charged by distributors. This fee depends on the agreement between the investor and the distributor. However, if you invest via a broker (stock exchange platform), instead of the advisory fee, a transaction fee (about 0.5 per cent) is charged, which is similar to brokerage paid while trading in equities. If you approach the fund house directly, no charges are levied.

Recurring cost: Each mutual fund scheme discloses an 'expense ratio'. This signifies the proportion of recurring expenses that a fund charges to its schemes' assets under management (AUM) year after year. This includes fund management fee, administrative costs and marketing and advertising costs incurred by the fund house. The expense ratio varies across fund houses and schemes. However, Sebi has capped the annual charges at 2.5 per cent of the AUM for equity funds and 2.25 per cent for debt funds for the initial corpus of `300 collected. The cap dips as the AUM increases. Reason: as the expense ratio is charged as a percentage of the total AUM, it spreads across a larger corpus. Thus, it reduces by 0.25 per cent with each consecutive tranche of `300 crore collected for equity as well as debt schemes. It is finally capped at 1.75 per cent for equity schemes and 1.5 per cent for debt funds, each with a corpus exceeding `900 crore .

So, those who enter a fund with a smaller corpus, effectively pay a higher fee. Whereas, those entering with a larger corpus pay lower charges. For index funds and exchange-traded funds, the expense ratio is capped at 1.5 per cent of the AUM, irrespective of the corpus accumulated. You do not have to pay these charges separately. The net asset value of the units held by you is declared after deducting these charges.

On redemption: Conventionally, an exit load of about aper cent of the total redemption amount is levied for premature withdrawals, usually made within a year of the investment. Each company can stipulate this lock-in period independently. However, there is restriction on the exit load charged. Except, if it exceeds one per cent, the excess must be reinvested in the scheme. Investors also have to pay a Securities and Transaction Tax (STT) of 0.25 per cent on redemption. It is applicable irrespective of the investment channel chosen. But the manner of levying the tax varies with your choice of intermediary. If invested via a non-exchange channel, STT will be levied on redemption. But over the exchange platform, STT is divided into two parts of 0.125 per cent each and levied both on investing and redeeming.

 

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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 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

 

Know more about Mutual Funds

Posted: 08 Oct 2011 10:39 AM PDT

A mutual fund is an investment that pools together money from various investors, which are further managed and invested by a professional with a view to achieve more competitive returns. The money collected by the fund manager is thus, invested in different instruments such as shares, debentures and other debt instruments based on the stated objective of the fund. The capital generated from these investments is shared by the holders on the basis of the investments made by them.

Mutual fund investment is the most suitable instrument for most people as it provides an opportunity to invest in a diversified fund through a professional at a relatively low cost. An individual usually finds it difficult to keep a track of his investments, therefore a professionally qualified and experienced fund manager makes the task easy.

The mutual funds industry in India provide investors with a number of products which aim towards shares, debentures, fixed interest securities and many more.

Types of Funds

  • Open and Closed ended funds


An open ended fund does not have a fixed maturity and is always available for subscription. The distinct feature of an open-ended fund is liquidity where an investor can buy and sell units at net asset value (price of a unit of a fund) related prices.
A close ended fund on the other hand is a fixed maturity period, usually ranging from 3-15 years and the fund is open only during a specific period for subscription. The unit capital in this scheme is fixed.

  • Load Funds and No-Load Funds


Load funds refer to the funds that levy charges at the time of entry or exit to the fund from the investor; whereas a no-load fund as the name suggests does not charge anything from the investor at the time of entry or exit to the fund. Entry load is the load charged at the time of entering into the fund by deducting a specific amount of money from the initial contribution towards a scheme. There are a few funds, charging a management fee, where the initial expenses are borne by the Asset management Company/Fund Manager. Here the individual enters or exits depending upon the NAV (net asset value) of the fund.

  • Debt Funds


Debt funds are fixed interest funds which can invest in long-term or short-term bonds. The main objective of investing in a debt fund is to preserve the investment while getting the best interest available. These funds invest in fixed return investments like bonds. Therefore, the risk borne by the investor is lower than any other equity fund.
Debt funds can be classified into three types which are income/bonds, liquid/money market and gilts schemes. Income/bond schemes are the ones that invest in long and medium term instruments like corporate bonds, fixed deposits, etc. Liquid/money market schemes invest in short-term instruments like treasury bills and commercial paper, whereas Gilt funds invests in papers issued by the government. The maturity in these schemes are either long or medium term depending upon the objectives of the scheme.

  • Equity Funds


Equity fund also known as a stock fund, usually invests in equities of listed companies. They principally invest in the securities in share markets which can be either domestic or worldwide markets. It allows the investor to access a diversified portfolio managed by a professional.

There are different types of equity funds in the market, therefore the level of risk in each fund is different depending upon the fund:

  • Balanced Funds


A fund that has a stock as well as a bond component in a single portfolio.. It targets to provide the investor with growth as well as regular income. A unique feature of such funds is that, they manage the downturns in the stock market without much loss to the investor. But, at the same time, they increase less even in a booming market.
Balanced funds, also sometimes known as hybrid funds, invests in various tools thus avoiding excessive risk.

Benefits of Mutual Funds

  • Diversification

A unique feature of Mutual funds is diversification where there is an option of investing into various schemes depending upon the market situation which keeps the finances safe. The value of all funds keep fluctuating but does not go low at the same time, thus reducing the risk.

  • Liquidity

In an open-ended fund, one can get the money back instantly according to the net asset value of the fund. Also, units in a close-ended fund can be sold at the prevailing market prices on a stock exchange. Thus, providing liquidity to the investor.

  • Choice of Schemes

Mutual Funds provide the investor with a stock of schemes to choose from depending upon the investors needs.

  • Professional Management of Funds

Allows professional management where an experienced professional tracks the investors money along with the performance of various funds. The fund manager also guides the investor to invest in the funds, keeping in view the objectives of each scheme.

  • Affordable
An investor can start investing in mutual funds with as low as Rs.1000. Thus, making it affordable for anyone.
 

HDFC Mutual Fund has launched two fixed maturity plans (FMPs)

Posted: 08 Oct 2011 08:17 AM PDT

 

HDFC Mutual Fund has launched two fixed maturity plans (FMPs) – HDFC FMP 92D October 2011 (2) and HDFC FMP 370D October 2011 (2). The new fund offers will be open for subscription from October 14, 2011 to October 18, 2011 for HDFC FMP 92D October 2011 (2) and from October 14 to October 19, 2011 for HDFC FMP 370D October 2011 (2).


The schemes will be listed on the National Stock Exchange.

 

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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 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

 
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