Tuesday, November 29, 2011

Prajna Capital

Prajna Capital

Section 80 CCF Tax Saver Infrastructure Bonds for 2011 - 2012

Posted: 29 Nov 2011 04:49 AM PST

 

Following issues are expected this year:

1. LIC Infrastructure bonds.

2. PFC Infrastructure bonds.

3. IDFC Infrastructure bonds.

4. L & T Infrastructure bonds.

5. IIFCL Infrastructure bonds.

6. PTC FINANCIAL SERVICES.

7. REC Infrastructure bonds.

8. IFCI Infrastructure bonds.
 

Download application forms for L&T and IDFC Infrastructure Bonds for year 2011 – 2012.

 

 

Gold Silver ratio helps to predict the price pattern

Posted: 28 Nov 2011 07:57 PM PST

GOLD-silver ratio, which denotes how many ounces of silver are needed at a given point of time to buy an ounce of gold, is a handy tool to understand the direction in which the two volatile metals may move in the near future.

The ratio can help an investor to switch his holdings to gold or silver as the ratio moves up and down, thus, accumulating more quantity of both the metals.

The ratio shows how many times more expensive gold is to silver. Typically, the ratio moves in a pattern, and in normal circumstances, it helps predict which direction the prices shall move in the near future.

Between 1950s and 1980s, the gold-silver ratio has largely moved between 20 and 50. In 1980, however, it touched 100, when global economies were trying to contain inflation and were selling their gold reserves. In 1990-2000, the ratio largely remained stable.

In the past decade, the ratio has been moving gradually, but consistently lower.
The median point has remained at around 54. At the start of the year, the ratio was at 52 levels, down to a low of 32 and is at present back at 52 levels.
 
The ratio has moved significantly higher during times of economic uncertainties as gold is one of the leading safe-haven assets.
Gold is mainly an invest ment tool, while silver serves industrial purposes as well.
During stable times, it is better to invest in silver and shift monies to gold during uncertainties.
The ratio had peaked in recent times during the financial crisis of 2008-09 and the dotcom bust in early 2000. During the dotcom bust, the ratio had touched 80 and in late 2008, it shot up to 84.
How to use the ratio: At the present ratio of 52, an uninitiated investor can start putting his money in gold till it reaches 70. "One need not invest the entire amount in one go, but make a staggering investment as the ratio moves up," said Bitupan Ma jumdar, analyst, commodities and assets, JRG Wealth Management.

Once it reaches 70 and if there is an upward trend, it is time to move the gold holdings partly into silver. Almost 60 per cent of the holdings can thus be moved into silver in phases if the ratio touches 80.

The ratio moving beyond 85 levels has happened only in 1980 and this is not likely in normal situations. From 80, the ratio has come down and silver prices have started rallying.

At 80 levels, the investor should wait for the silver rally to play out and the ratio to once again drop down to levels between 50 and 55.
Between 50 and 35, he can once again accumulate gold as the ratio is only going to move up at around 35.

Along with the ratio, an investor also has to follow the macro economic factors to understand the duration of the cyclical movement in gold and silver.

The ratio can stay at higher levels for a longer period if the financial crises are triggering safe-haven buying in gold. On the other hand, if the financial markets are stable and the industrial output of key economies remain robust, the ratio can remain at lower levels for a longer time.
 

IDFC Tax Saving Infrastructure Bonds Tranche 1 Application Form for section 80CCF

Posted: 28 Nov 2011 07:00 AM PST

  

Download application form for Infrastructure Bond for year 2011 – 2012.

 
http://www.slideshare.net/PrajnaCapital/idfc-long-term-infrastructure-bond-tranche-1-application-form
 
These Bonds are Tax Saving Infrastructure Bonds. By making investment of Rs 20,000 in Infrastructure Bonds, you can avail tax exception under Section 80CCF.

 

Section 80CCF is in addition to Investment of Rs 1, 00, 000 that you can make under Section 80C and Rs 20,000 under Section 80D and Section 80E for Education loans of the Income Tax Act.

 

Find a collection canter:

 

Collection canter near you

 

 

Documents Required:

 

1)      Filled Up Application

2)      Copy of the PAN card (Self-attested)

3)      A Cheque in favour of the

4)      KYC Documents: Self-attested copies of the following documents are required to be submitted by the Applicants as KYC Documents:

a.       Proof of identification for individuals: Any of the following documents are accepted as proof for individuals:

Ø      Passport

Ø      Voter's ID

Ø      Driving Licence

Ø      Government ID Card

Ø      Defence ID Card

Ø      Photo PAN Card

Ø      Photo Ration Card.

 

b.      Proof of residential address: Any of the following documents are accepted as proof of residential address:

Ø      Passport

Ø      Voter's ID

Ø      Driving Licence

Ø      Ration Card

Ø      Society Outgoing Bill

Ø      Life Insurance Policy

Ø      Electricity Bill

Ø      Telephone Bill (Land/Mobile).

 

Procedure:

 

1)      Print the application form, print and Fill it up

2)      Attach the required Documents

3)      Submit the form in a collection canter near you

 

What is Tax Saving Infrastructure Bond?

These bonds are options given to infrastructure finance companies (IFCs) to support their lending to avoid dependence on banks. IFCs are not supposed to take deposits from retail customers.

The bonds would be issued in the dematerialised format and investors can even buy it in physical format if they don't have a PAN card or demat account.

The bonds will be listed on the Bombay Stock Exchange (BSE) and investors can exit the bonds in the secondary market after the completion of the lock-in period.

 

 
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