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ICICI Prudential Capital Protection Oriented Fund II Series VII 24 Months Plan is a close ended fixed income fund with a partial equity orientation. This fund is the latest in a series of similar funds, around 45 so far in the last few years, that have the attractive term `capital protection' in their names. The minimum application amount per investor is Rs 5,000.

FOR WHOM: For all investors who are interested in locking in their investment for two years, mostly in fixed income, and a little bit in equities, but unable to find matching debt and equity investment options.

CLOSE-ENDED FUND: A few days after the NFO (new fund offer) closes on February 27, the allotment will take place. You can not invest in this fund with the asset management company directly after February 27.

Nor can you redeem it directly up to 740 days from the date of allotment. The maturity date will fall roughly around the start of March 2014; although, the alloted units will be listed on the BSE, technically, you could buy or sell it.

ASSET ALLOCATION: The scheme information document (SID) states per that it will invest 88-100 cent in debt securities and 0-12 per cent in equities and equity-related securities. MATURITY: The investment in debt securities will have close to two-year maturity, and will exclude debt securities with a floating interest rate component.

UNTOUCHABLE INVESTMENTS: The fund commits to stay away from securitised debt and real estate debt securities.

CHARGES: Annual recurring charges will be up to the highest allowed by Securities and Exchange Board of India for such funds, that is, 2.25 per cent. No NFO expenses will be charged.

Like every other fund having `capital protection' in their names, this fund too does not guarantee capital protection. This has been stated in the fund's SID. The investment objective is only oriented towards protecting your principal investment through a minimum 88 per cent debt exposure and maximum 12 per cent equity exposure. Assuming a worst-case scenario of equities giving zero return, then a 88-12 debt-equity fund will have to be invested in debt yielding about 13.60 per cent returns, which considering the fact that the fund aims to invest in AAA-rated debt, is an unlikely outcome. The figures work out to be far worse if the equity investments post negative returns. Thus, with the leeway available to the fund manager, the use of the word `capital protection' is misleading. Theoretically, you could still, and easily, lose a part of your principal investment in such a fund.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

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How to apply to REC Bonds?

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UTI Mutual Fund FMP - Fixed Term Income Series X

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Posted: 23 Feb 2012 11:05 PM PST

UTI Mutual Fund has launched UTI Fixed Term Income Fund Series X - IX (368 Days). The scheme will be open for subscription from February 17, 2012 to February 23, 2012.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Reliance Life Insurance - Reliance Life Insurance Classic Plan - II

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Posted: 23 Feb 2012 09:59 PM PST

Reliance Life Insurance has launched a new Ulip, Reliance Life Insurance Classic Plan-II, offering investors dual benefits of protection and market-linked returns.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

DSP BlackRock Mutual Fund FMPs

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Posted: 23 Feb 2012 08:55 PM PST

DSP BlackRock Mutual Fund has announced the new fund offers (NFO) of DSP BlackRock FMP - Series 35 - 3M and DSP BlackRock FMP - Series 36 - 12M. Series 35 will be open for subscription from February 21, 2012 to February 23, 2012 and Series 36 will be open for subscription from February 24, 2012 to February 28, 2012.

Accordingly, the maturity date will be May 24, 2012 for Series 35 & March 4, 2013 for Series 36.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Submit the filled up form to Collection canter near you

MCX IPO

Posted: 23 Feb 2012 07:26 PM PST

Like what the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are for equities, MCX or Multi Commodity Exchange of India is synonymous in the commodities trading space with over 87 per cent market share in the country. However, unlike equities, the potential for commodities trading is high, given the low penetration — which is why the growth prospects of companies like MCX looks promising. That apart, given the cash in the books — besides a healthy business model — makes the offer attractive from a long-term perspective.

Cash cow

Typically, once an exchange and related infrastructure is set up, it starts generating revenues in the form of transaction fees among others with minimal need for capital (or increase in operating costs) even as the business scales up.

MCX, which is in the nascent stage and generating healthy cash, has been paying back almost a third of its profits to the shareholders in the form of dividends. Despite this, it is sitting on ~700 crore of cash and equivalent, which is fairly large for a company with a networth of ~1,100 crore. Globally too, exchanges generate high cash and return on equity (20.5 per cent in the case of MCX) and hence pay huge dividends like in the case of Hong Kong Exchange, which distributes almost 8090 per cent of its profits in the form of dividends.

Annuity business

Not surprisingly, investors thus see exchanges as more of an annuity investment or from a dividend yielding stock. This is also a reason that globally exchanges trade at an average 5 times their book value and 18-20 times earnings.

In the case of MCX, at the upper price band of ~8601,032, its shares are valued at 4.3 times annualised book value and 21 times annualised earnings, which looks fair, considering its business model, leadership and size of growth opportunity relative to its global peers, cash in the books and return profile. Also, some of MCX's investments in other exchanges like MCX-SX, SME and MCX-CCL are in the nascent stage and could add value in future.

Growth strategy

MCX started its operation in 2003. Since then, its revenue and trading volumes have grown strongly. Though competition has also increased and there has been a key risk, the company still enjoys a leadership position on the back of its first mover advantage and technological support provided by its promoter company, Financial Technologies. The company continues to focus on increasing the number of members and terminals through geographical and product expansion. It already has 2,153 members, a total which is almost equal to the trading members in the equity segment of BSE and NSE put together.

So, while there may not be an exponential growth in members, future growth is likely to come from increase in trading terminals and clients. For instance, for the nine months to December 2011, while the company has added 34 new members, the terminal base has expanded by almost 100,000 to 296,896, which should reflect in higher trading volumes for the company.

Besides, the government has yet to pass a bill to amend the Forwards Contracts (Regulation) Act. Once the regulatory changes are in place, trading in options and indices are expected to drive the volumes on the exchange in line with the global trend," said a note on the company by CRISIL, which has given the highest grading to the IPO. Globally, it is considered that options and indices (like Nifty in equity) account for a large chunk of volumes, which is yet to happen in India. To support this, the company has already developed the products and software. That apart, the rating agency also said that the government also been considering allowing foreign and domestic institutions and banks to participate in commodity futures trading. The entry of such participants, whenever permitted, is likely to be a positive for commodity exchanges like MCX, as it would help improve market liquidity. However, any delays (or rejection) of these proposals would lower growth expectation and thus, hurt stock valuations of MCX.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Submit the filled up form to Collection canter near you

Franklin India Taxshield

Posted: 23 Feb 2012 08:28 AM PST

Franklin India Taxshield is a large-cap Fund

This fund is great if you don't want to be too crushed when the market dives. It won't give you an exciting ride when the bulls are rallying, but its excellent downside protection capabilities have resulted in a competitive track record.

Take a look at the returns during the market rallies of 2007 and 2009. This fund delivered slightly lower than the category average. But in 2008 it was the third least hit fund in the category. In 2011 too it managed to find itself at the top of the ladder.

The fund manager claims to adhere to a bottom-up approach and looks for companies whose current market price, in his opinion, does not reflect future growth prospects. "We choose companies that have identifiable drivers of future earnings growth and that present, in our opinion, the best trade-off between earnings growth potential, business and financial risk, and valuation. We also consider such factors as the company's financial strength, management's expertise, the company's growth potential within the industry, and the industry's growth potential," says Radhakrishnan.

The result of his analysis seems to favour large-cap companies. Exposure to large caps has averaged around 70 per cent since launch while it has not gone above 10 per cent in small caps in its entire history of around 11 years. According to Radhakrishnan, "The fund follows a diversified strategy with respect to industry as well as market capitalization. We don't look at the market cap of a stock before investing. The fund has not hesitated to pick up mid- or small-cap ideas where it perceives favourable long-term potential."

Don't expect this fund to chase sectors which are the flavour of the season. In 2007 it remained underweight in Oil & Gas and Power, the top performing sectors. In 2009, allocation to Auto averaged just 3 per cent, a year in which the BSE Auto performed extremely well. To add to it, allocation to FMCG dropped to below 10 per cent - BSE FMCG delivered the lowest among sector indices that year.

What you will find here is a large-cap oriented, quality portfolio where the fund manager refrains from strong cash calls. The portfolio appears more concentrated than its peers but is not more aggressive. The fund doesn't deviate much from the average in terms of performance and is among the least volatile funds in its category. Its ability to stem the downside is its trump card. And that makes it stand out in the long run.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs