Tuesday, November 1, 2011

Prajna Capital

Prajna Capital

How to Invest in DSP BlackRock Mutual Funds Online?

Posted: 31 Oct 2011 09:29 AM PDT

 

Benefits of Investing Online:

 

·                           You can purchase, redeem and order any transactions online.

·                           There is no need for you to contact the broker or any intermediate person for the transaction.

·                           You can view all the portfolio details of your folios online.

·                           You can generate Account Statements; view the past transactions and any other details.

·                           You can update your personal details online.

·                            

How to Invest?

 

As a first time investor, you have to understand the procedures and initial steps to invest online in DSP Blackrock Mutual Fund. Guidelines for investing are available in:

Invest Online -

https://dspbronline.com/iol_login.aspx?distcode=ARN-74461

https://dspbronline.com/iol_purchaserequestwop.aspx?distcode=ARN-74461

 

Refer below for more info…….

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

FAQ - http://www.dspblackrock.com/mfonline/faq_getting_started.asp

Banks List – http://www.dspblackrock.com/mfonline/banklist.asp

 

Getting Insured at young age Saves a lot of money

Posted: 31 Oct 2011 08:48 AM PDT



How many of you have received a call from an insurance company or an agent trying to sell you a policy? I am sure that every professional in their 20s or early 30s would have received such a call. But have you ever stopped and thought whether you have adequate insurance cover, especially if you are a young working professional with financial liabilities? In most cases, I would assume the answer is a big 'No'. Insurance in the early years of professional life may sound a waste of money when other lifestyle and personal expenses take priority.

Young professionals today, anywhere in their 20s or early 30s, are financially independent. Many manage their own finances and investments like paying off education loans, buying own cars and investing in property – mostly first homes. The last decade has also seen a major shift in the lifestyle of young professionals with more working hours, higher stress levels and an alarming rise of related lifestyle diseases like diabetes, obesity and cholesterol. In such a scenario, insuring oneself becomes as essential as other expenses.


Additionally, many of these young people provide financial support to their families, either partially or totally. In such a scenario, life insurance as well as health insurance is absolutely critical so that in case of any unfortunate event like an accident or a sudden demise, the family doesn't go through a financial trauma as well. Even if one is not contributing towards family income, a health cover or a rider is a must so that in time of need, the cost of treatment is covered and the family doesn't face a financial setback.


There are various insurance options young professionals can choose from, depending on their needs. From retirement, health to pure protection — there is an insurance cover for all of these. It is advisable to invest earlier than later in insurance products – for example, if you are investing for retirement, the earlier you begin investing, larger the corpus would be on maturity. Term insurance is pure insurance and is very cost-effective. A term plan, coupled with an additional health rider, can give you a 360-degree protection in any exigency. Many insurance companies have also launched online term insurance products that are cheaper and easier to buy. You can log on to any comparator site like policybazaar.com or apnainsurance.com and compare the rates of term plans offered by all the insurance companies.


Another reason why some of you do not buy insurance earlier in life is because your company (in most cases) covers you under a group life and health plan. The key thing to remember is that the group cover may not be sufficient in your case or aligned to your income. Secondly, when one is young and healthy, you are a better risk; hence, insurance companies can offer you a life cover at lower rates. If you apply for a personal life insurance later in life, your application may be rejected or you may end up paying higher premiums depending on your medical history.


Investing early in insurance will also help you save tax and instil in you the habit of saving and financial discipline that ensures peace of mind in the long run. So, if you are a young professional and have not insured yourself yet, the next time you come across any material on insurance or a call from an insurance company, hopefully you will give it a serious thought.

 

Getting the most out of exchange traded funds (ETFs)

Posted: 31 Oct 2011 08:16 AM PDT

 

WORLDWIDE Exchange Traded Funds (ETFs) are gaining in popularity and their numbers as well as assets under management have risen significantly in recent years.

The situation in India is a bit different as these funds have failed to make the kind of impression amongst investors that was expected. There is a need to look at the offerings available in this space in terms of its actual benefits to consider the type of investment possible in this area. Here is a look at this category of funds from this perspective.

Nature: The nature of ETFs is such that they are mutual funds but they also have the features of a stock. These features refer to it being listed on the stock exchanges so being available for trade at various points of time during the day and at various prices instead of a single price dependent upon the net asset value at the end of the day like a normal mutual fund.

These funds are mostly in the nature of an index fund or they follow the price of an asset so there is no active management involved in the management of these funds.

There will not be any outperformance that can be talked about but this is able to provide a varied choice for the investors.

In India out of the ETFs present nearly one third of them are gold funds while the others are based on various indices and hence there is also quite a bit of choice that is available for the investor.

Specific niche: There are a lot of new ETF that are being planned by various fund houses but the existing ETF except gold ones have not found great interest among investors.

This could be on account of the fact that many investors are not very clear as to what are the benefits these funds actually provide. The manner in which one should look at these funds is that they are an option in front of the investor to ensure access to a specific area.

Thus, for example, an investor might be able to buy bank stocks and they might even buy a banking fund where they will depend upon the fund manager to ensure that the portfolio is such that they are able to gain from the investment.

However, might not have access to an investment that will give them exposure to a banking index. This is what the ETF will seek to do and hence there will be a different kind of exposure that will be possible for the investor.

Specific part of portfolio: The whole idea when looking at such funds for the investor is that they are able to fill in the various gaps that exist in their portfolio. There might be different kinds of exposure that is already built up from existing holdings and there would be the need for something more to meet specific individual requirements. However, this might not be readily available or it could be very costly to create that kind of exposure in the portfolio and in such a situation they can use the ETF to get the varied exposure that they require.

ETFs can be used by small investors to broaden their portfolio so it has use for this kind of segment and at the same time even existing investors who have a large portfolio with them will be able to benefit from this position. This is a low cost instrument because costs here will be lower than an actively managed fund.

This can be used as a sophisticated tool to ensure that there is a specific kind of flavour given to the portfolio that might not have been possible otherwise. The increasing choice in front of the investor will be a beneficial factor and help in increasing the choice for selection.

 

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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 you can ensure all tax collected on your behalf has been deposited?

Posted: 31 Oct 2011 07:44 AM PDT


   With just two weeks left to file the income tax returns, many taxpayers are busy making their final calculations, visiting their tax consultant and filling up the returns form. Before filing the tax forms, you need to deposit the balance tax due and interest, if any. This amount is based on your tax liability for the year, after taking into account advance tax paid and tax deducted at source.


   Of late, the scope of tax deduction at source has been increased and includes salary, rent, interest, professional services etc. So, while preparing the tax returns and calculating the tax liability, you should take into account the tax amount already deducted on your behalf. Now, an easy way to do this is to refer to the 26AS statement. This statement is accessible on the NSDL site and is also available online on the websites of many banks.


   According to a recent advice issued by the Income Tax Department, taxpayers should review their 26AS statements to check whether all the TDS deducted is appearing against their accounts or not. This would facilitate faster processing of refunds, if any.

Tax credit statement    

The Income Tax Department facilitates a PAN holder to view its tax credit statement (Form 26AS) online. Form 26AS contains details of tax deducted on behalf of a taxpayer by deductors, details of tax collected on behalf of a taxpayer by collectors, and advance tax, self-assessment tax, regular assessment tax etc deposited by a taxpayers.


   It also has details of refunds received during a financial year and details of high-value transactions involving shares, mutual funds etc.
   A Form 26AS is generated wherever a valid PAN is furnished in a TDS statement.

Accessing Form 26AS    

The tax credit statement (Form 26AS) can be accessed in these ways:

IT website    

You can view your tax credit an https://incometaxindiaefiling.gov.in, and those who are registered on this site can view the Form 26AS by clicking on 'View Tax Credit Statement (From 26AS)' in 'My Account'. The facility is available free of cost.

Bank website    

You can view it on a bank's website through the Internet banking facility. The facility is available to a PAN holder with an Internet banking account with any authorised bank. Form 26AS will be available only if the PAN is mapped to that particular account. The facility is available for free of cost.

TIN website    

This facility is available to a PAN holder whose PAN is registered with the Tax Information Network to view of Form 26AS. The PAN holder has to fill up an online registration form for the purpose. Then, verification of the PAN holder's identity is done by the TIN facilitation centre personnel either at the PAN holder's address or at the TIN facilitation centre that has been chosen by the PAN holder. The verification involves a cost at the prescribed rate. Once authorised, the PAN holder can view his tax credit statement online here.

Credit confirms tax deducted



The credits in the tax statement confirm that:

The tax deducted by the deductor or collector has been deposited with the government The deductor or collector has filed the TDS/TCS statement accurately giving details of the tax deducted or collected on your behalf The bank has furnished the details of tax deposited by you accurately

TIN system

Every entity that has deducted or collected tax at source is required to deposit the tax with the government through a bank. A bank will upload this payment-related information in the TIN central system. The deductors are also required to file a quarterly statement with the TIN giving details of their TDS/TCS.


   The TIN central system will match the tax paymentrelated information in the statement with the tax receipt information from the bank. If they match, the TIN will create a comprehensive ledger for each PAN holder giving details of the tax deducted or collected on the basis of every deductor who has filed a statement.


   In future, you will be able to use this consolidated tax statement (Form 26AS) as a proof of tax deducted or collected on your behalf, and the tax directly paid by you along with your income tax returns, after the need for submission of TDS/TCS certificates and tax payment challans along with income tax returns has been dispensed with by the Income Tax Department.

 
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