Prajna Capital

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• Power Finance Corpoation Tax-Free Bonds issue
• IDFC Long Term Infrastructure Bond 2012 Tranche 2
• Birla Sun Life Monthly Income Plan
• L&T Infra Bonds 2012 Tranche 2 launched on January 10 2012 Issue closes on February 11 2012
• Not too many are showing interest in Tax-Saving Infra Bonds
• Tax Saver Mutual Fund Application Form
• HDFC Mutual Fund new FMP
• Canara Robeco Mutual Fund merges Canara Robeco Multicap scheme with Canara Robeco Equity Diversified Scheme
• Muthoot Finance issue fails to mop up Rs 600 crore from HNIs
• REC Infra Bond Application form

Power Finance Corpoation Tax-Free Bonds issue Posted: 11 Jan 2012 06:02 AM PST Download PFC Tax Free Bond Application Forms   Power Finance Corpoation (PFC) has come out with a . 5,000-crore tax free bond issue. PFC is a Navratna Government of India undertaking with the government holding 73.72% stake in it. Allotment will be made on a first-come-first-serve basis and the issue closes on January 16. Details There are two options under which investors can apply. The first option has a tenure of 10 years, and the interest payable is 8.2% per annum. The second option has a tenure of 15 years, with a higher interest of 8.3% per annum. Interest payment will be made annually on October 15, every year. The interest income is tax free in the hands of the investor and there is no deduction of tax at source. Each bond has a face value of . 1,000 and one can apply for a minimum of 10 bonds. There is no put or call option in any of the bonds. The bonds will be listed on the BSE. The bonds have been rated AAA by Crisil as well as Icra, which indicates highest degree of safety in terms of servicing of financial obligations. While 50% of the issue is reserved for institutions, 25% is reserved for HNIs and the balance 25% reserved for retail investors. Investments below and up to . 5 lakh will be considered as retail applications, while investments above . 5 lakh will be considered for allotment in the HNI category. NHAI bonds score well for those in the highest tax bracket. So if you invest. 1 lakh in NHAI bonds, and are in the highest tax bracket, you will get an interest income of . 8,300 per annum for 15 years which is tax free. As against this, even if you earn a 9% interest on a bank fixed deposit and you are in the highest tax bracket (30.9%) you will earn an interest of . 9,000 per annum but will pay a tax of . 2,781, so the net interest you earn is only . 6,219, which is a yield of 6.22% Tax-free interest of 8.3% is the highest available after PPF, and there is no upper ceiling on investment. Though PPF offers you an interest of 8.6%, it is subject to revision and the maximum amount you can invest is only . 1 lakh per annum. Even though the bonds will be listed, one is not sure if there will be an active secondary market for these bonds. Hence, if you need the money in between, you may have no other way out. How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you     ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you     --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Mutual Fund Applications   Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

IDFC Long Term Infrastructure Bond 2012 Tranche 2 Posted: 11 Jan 2012 02:05 AM PST   IDFC Long Term Infrastructure Bond Tranche 2 with Tax Benefit Under Section 80 CCF. The issue is open for subscription between 11 Jan 2012 to 25th Feb 2012.   ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you     --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you       Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Birla Sun Life Monthly Income Plan Posted: 11 Jan 2012 01:36 AM PST   Birla Sun Life (BSL) Monthly Income Plan is a hybrid fund that primarily invests in debt instruments with small exposure to equity securities up to 15% of total net assets. Launched in August 1999, this fund is a pioneer in the Monthly Income Plan Conservative category and maintains the largest AUM in this category with an average asset size of Rs 614 cr as of the quarter ended September 2011. The fund is ranked CRISIL Fund Rank 1 (top 10 percentile of the peer set) over the past seven quarters.   Performance   The fund has managed to outperform its benchmark (CRISIL MIPEX) and peers during the past one year, three years and five years (Chart 1). Over a five-year term, the fund has delivered annualised returns of over 8% as against 7% by peers for the same period and 6.3% by the benchmark. Further, in a 10-year period, the scheme has given over 10% returns versus 8% for its peers.   The duration of the debt portfolio has been actively managed by the fund manager at various interest rate movements across time intervals in the past four years. Reducing the duration when yields are hardening, enables the portfolio to deliver better returns and vice versa.   Chart 2 shows the movement of the fund's average maturity along with the 10-year gilt yield and peers' average maturity. The manager has actively adjusted the maturity of the fund with the increasing yields at various time intervals. When compared with the peer group, BSL Monthly Income Plan has done a relatively aggressive management of the average maturity, thereby enabling the fund to deliver superior returns than its peers.   Consistent Dividend Pay-Outs   The fund has distributed dividends in 137 out of the last 145 months, indicating its consistency in terms of regular dividend pay-outs. Dividend payments were missed mainly in the sluggish market phase, i.e. in 2000 and 2008. The average dividend yield of fund over this period is 0.79% against peer average of 0.52%.   Fund Manager Profile   Satyabrata Mohanty (Fund Manager for Debt Portfolio) is a CA and holds a CFA degree. He has more than 12 years of experience and is engaged with Birla SunLife AMC for past four years.   Nishit Dholakia (Fund Manager for Equity Portfolio) - is a CA and has over 11 years of experience in equity research and fund management. He is with Birla Sun Life AMC for past eight years.   --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications How to apply to PFC Bonds? ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you     Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you     Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

L&T Infra Bonds 2012 Tranche 2 launched on January 10 2012 Issue closes on February 11 2012 Posted: 11 Jan 2012 12:43 AM PST L&T Infra Bonds 2012 Tranche 2 is launched.   L&T Infra Bonds 2012 Tranche 2 launched on January 10, 2012 Issue closes on February 11, 2012       ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you   How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you   --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Not too many are showing interest in Tax-Saving Infra Bonds Posted: 10 Jan 2012 11:40 PM PST Tax-saving bonds seem to have become an opportunity wasted for the government, which is struggling to raise funds for its ambitious infrastructure development programme. The bonds' unattractive structure seem to have found little favour with eligible taxpayers and infrastructure finance companies are hoping the government would do something to enhance product appeal. "The incentive for taxpayers is very little. We have received only ~18 crore till now via tax-saving bonds, although our capacity to raise funds through these bonds is as much as ~6,000 crore," said H DKhunteta, director, finance, Rural Electrification Corporation (REC). "We are requesting the government to increase the tax-saving limit up to ~50,000 or more." An infrastructure finance company can raise as much as 25 per cent of the incremental infrastructure investment of the previous financial year via these bonds. Currently, (unlike completely tax-free bonds), investors can save tax only up to ~20,000 of taxable income in these under Section 80 CCF of the Income Tax Act, over and above the ~1 lakh investment under Section 80C by investing in these bonds. Some firms said the government was not very hopeful about the product. "Many of us had recommended the government make it ~50,000. And, we believe if it does become ~50,000, the response might actually be more. One reason the government had not accepted the demand was that last year the response was not very good. So, the government was not sure about the sustainability of these instruments," said Suneet Maheshwari, chief executive officer, L&T Infrastructure Finance. If the response is good this year, they might increase the limit to ~50,000, he added. Sole reliance on retail participation has also taken a toll on the success of this kind of debt instrument. "For tax-saving bonds, the number of subscriptions required are many, as it is a product targeted at retail investors, to allow their participation in the country's infrastructure development," said Saud Siddique, joint managing director, SREI Infrastructure Finance. Also, as compared to other instruments, the rates of return are much lower. For instance, a completely taxfree bond of the National Highways Authority of India or Power Finance Corporation offers a high coupon and even allows tax exemption on interest income for periods of 10 and 15 years. The gains derived via tax-free bonds are not capped, as the investment limit is very high. In tax-saving ones, investors get benefits on investments of only ~20,000 (~6,600 for the highest income tax bracket). On the other hand, tax-free bonds like NHAI or PFC help investors earn returns of eight-plus per cent for a longer period, and without any tax. In effect, the final rate of return is 11.5-12 per cent. Infrastructure finance companies are also taking small steps at a time with respect to the size of tax-saving bond issues. For example, SREI, which can raise up to ~500 crore via tax-saving bonds,has come out with a maiden issue of only ~300 crore, gauging the market. "We are just testing the response and, thus, have come out with a smaller issue size without a greenshoe (overallotment) option," said Sanjeev Sancheti, chief financial officer. PFC, one of the most successful fund raisers, has raised about ~100 crore so far against its capacity to raise as much as ~5,300 crore through tax-saving bonds. It is planning to issue the second tranche by January end. Many arrangers also said while one got upfront rebate on taxable income, the instrument does not allow benefits to retail investors who do not have savings of at least ~1 lakh. However, many also said that low levels of awareness among investors was a reason for the lukewarm response. A tax-saving bond as an instrument has the potential to raise ~20,000 crore every year, if just about one crore out of the 3.5 crore taxpayers of the country invest. There is enough opportunity for infrastructure companies to raise money but investor awareness needs to be created.   ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you   How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you   --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Tax Saver Mutual Fund Application Form Posted: 10 Jan 2012 07:56 PM PST Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   Invest Tax Saving Mutual Funds Online Mutual Funds Online    ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you     ---------------------------------------------   How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you     Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

HDFC Mutual Fund new FMP Posted: 10 Jan 2012 06:49 PM PST HDFC Mutual Fund has announced to launch HDFC FMP 92D January 2012 (2). The NFO for HDFC FMP 92D January 2012 (2) will be open for subscription on January 12. --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you     ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you     Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Canara Robeco Mutual Fund merges Canara Robeco Multicap scheme with Canara Robeco Equity Diversified Scheme Posted: 10 Jan 2012 08:13 AM PST   Canara Robeco Mutual Fund has announced the merger of Canara Robeco Multicap scheme with Canara Robeco Equity Diversified Scheme, with effect from February 3.   --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you  ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you       Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Muthoot Finance issue fails to mop up Rs 600 crore from HNIs Posted: 10 Jan 2012 07:48 AM PST HIGH NET worth individuals (HNI) appear to have given a tepid response to Kochi-based Muthoot Finance's Rs 600 crore nonconvertible debentures issue that closed last week. Muthoot Finance, the country's largest gold loan firm, planned to mop up Rs 600 crore from investors that includes a green shoeoption of Rs 300 crore. With HNIs showing less than expected interest, Muthoot managed to collect Rs 470 crore, according to merchant bankers handling the issue. The issue closed on January 7. This is around 21 per cent lower than the targeted amount that was to be used by the firm for financing, debt repayment and capital expenditure. The total HNI participation was around Rs 90 crore while we had estimated participation to the tune of Rs 240 crore from them. When reached by Financial Chronicle, top Muthoot Finance officials did not immediately disclose the figures. KR Bijimon, chief general manager and CEO of Muthoot Finance said, Experts tracking debt market issues feel that simultaneous issue of tax-free bonds by NHAI (December 28, 2011 to January 11, 2012) and PFC (December 30, 2011 to January 16, 2012) may have influenced the HNI investment levels. Investors who have already completed their tax savings are attracted by high yielding NCD to take advantage of good returns. While HNIs who are looking to save tax on interest income and pensioners are looking for steady tax free income and are attracted towards bonds issues such as NHAI and PFC tax saving bonds. Both these issues were falling under the category of tax-free bonds where the investor's interest income is tax exempted. Due to heavy over-subscription, the combined mop-up from both these issues was around Rs 35,000 crore. HNI investments in both these issues were more than expected, which might have otherwise gone towards Muthoot NCD issue. However as a silver lining, retail investment in Muthoot Finance NCD was in line with the expectations. The entire Rs 240 crore earmarked for retail investors was fully subscribed.   -------------------------------------------------------- How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you How to apply to NHAI Bonds? You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you     ---------------------------------------------   Application form for Tax Saving Long Term Infrastructure Bond     Current open Long Term Infra Bond Application form     Submit filled up application    Collection canter near you     --------------------------------------------- Invest Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

REC Infra Bond Application form Posted: 10 Jan 2012 06:45 AM PST   Download REC Infrastructure Bond Application Form   REC Infra Bond Application form     Submit filled up application    Collection canter near you   --------------------------------------------- Invest in Tax Saving Mutual Funds Online Mutual Funds Online   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Mutual Fund Applications         Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

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