Prajna Capital

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• Franklin Taxshield Fund
• Tax planning for Year 2012
• Tax Saving with Life Insurance - Section 80C
• REC Tax Free Bond Form
• Rules before Buying an Insurance Cover
• Download Muthoot Finance NCD Application Form

Franklin Taxshield Fund Posted: 12 Mar 2012 05:18 AM PDT   Tax Saving Mutual Funds Online Current open Infra Bond Application form   Launched in April 1999, Franklin Taxshield Fund has been ranked CRISIL Fund Rank 1 for the quarter ended December, in the Equity Linked Savings Scheme (ELSS) category. The fund has remained in the top 30 percentile of the peer group (CRISIL Fund Rank 1 and CRISIL Fund Rank 2) for the past four quarters. Being an ELSS fund, it benefits investors as investments in such schemes are eligible for deduction up to ~1 lakh under Section 80C of the Income Tax Act. However, these benefits might not continue if the Direct Taxes Code (DTC) becomes applicable in April 2012, as ELSS funds will not attract tax exemption under the DTC. The fund's quarterly average assets under management (AUM) have been around ~800 crore for the past five quarters. For the quarter ended December 2011, the fund's AUM was ~769 crore. Performance The fund has outperformed both its benchmark (S&P CNX 500) and the category across various time periods. It has managed to outperform both the category and benchmark over both six months (absolute) and one year time frames when the equity market saw a volatile market phase. This is mainly due to active management of equity and sector exposures during this period. Over a longer time frame of 10 years, the fund has given an annualised return of 24 per cent vis-à-vis 22 per cent of the category and 19 per cent of the benchmark. An investment in the fund since inception would have resulted in the value increasing 21 times, resulting in an annualised growth rate of 27 per cent. The fund has largely maintained lower volatility (risk) than both the category and the benchmark over the past five years when considered on a monthly basis. Thus, the fund has generated higher returns by taking lower risk vis-a-vis category and the benchmark. Portfolio analysis The fund has predominantly invested in large-cap stocks over the past three years. Its exposure to CRISIL defined large cap stocks has been 78 per cent over this time period. The balance 22 per cent has been invested in small- and mid-cap stocks. The fund is well diversified at the stock level with an average holding of 49 stocks in its portfolio over the past three years, with none of the holdings exceeding nine per cent over this period. A diversified portfolio helps mitigate the risk of concentration. The fund has maintained higher equity exposure compared to the category over the past three years. The average equity exposure of the fund over this period is 94 per cent vis-à-vis 91 per cent for the category. It has reduced equity exposure over the past one year by maintaining a relatively low equity exposure compared to the category. This has helped the fund limit its downside in returns over the past year. However, the fund has gradually increased its equity exposure over the past quarter. In terms of sectors, the fund has reduced exposure to underperforming sectors, such as banks and petroleum products over the one-year period ending December 2011. These sectors had given negative returns of 31 per cent and 29 per cent, respectively, vis-àvis the benchmark's negative 27 per cent during this period. These sectors were among the top sectors of the fund when considered over the past three years. Simultaneously, it has increased exposure to relatively better-performing sectors, such as auto and software. Actively managing exposure to sectors has helped the fund generate higher active returns or alpha.     --------------------------------------------- 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 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 Download Tax Saving Mutual Fund Applications   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 Current open Infra Bond Application form   Submit filled up application    Collection canter near you       ------------------------------------------------ How to apply to REC Bonds? Apply for REC Tax Free Bonds forms below Download REC 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

Tax planning for Year 2012 Posted: 12 Mar 2012 04:14 AM PDT   Tax Saving Mutual Funds Online Current open Infra Bond Application form      The financial year 2011-12 is coming to an end. It is time to finalise your income tax planning and savings. There are many sections under the Income Tax Act that enable you to reduce your income tax liability. These are some sections you need to tap: Section 80C This section allows income tax exemptions and rebate to individuals. You can invest in certain specified instruments and reduce your taxable income by up to Rs 1 lakh under this section. These are some of the major instruments that attract income tax benefits. You can invest Rs 1 lakh in one or more of these instruments to avail tax rebate under Section 80C: Provident funds (Employee Provident Fund and Public Provident Fund) Life insurance (term insurance and endowment plans) Pension plans Equity-linked savings schemes (ELSS) of mutual funds Specified government infrastructure bonds Repayment of housing loan (principal component) National Savings Certificate (NSC) SECTION 80CCF: This is an extension of Section 80C. The Income Tax Act allows you an additional rebate (in addition to the limit allowed under Section 80C) of up to Rs 20,000 when investing in notified infrastructure bonds. This section is a boost for infrastructure development in the country. There is an expectation that the investment limit in this section may be raised for the next year. \HOME LOAN BENEFITS: A housing loan provides relief under the Income Tax Act. The repayment of the principal component of a housing loan attracts rebate under Section 80C of up to Rs 1 lakh. The interest payment on a housing loan attracts rebate of Rs 1.5 lakhs. MEDICAL INSURANCE: The income tax benefit on purchase of medical insurance comes under Section 80D. You can claim a rebate in income tax on the premium paid to buy mediclaim policies. The maximum limit on the income tax rebate under this section is Rs 15,000. You can avail this deduction on medical insurance premiums paid for yourself, your spouse, parents and children. OTHER DEDUCTIONS (salaried individuals): Medical allowance: If an employer of a salaried individual offers a medical expense reimbursement allowance, an income tax deduction of up to Rs 15,000 per year against the relevant expenses is allowed.    LTA: If an employer offers a leave travel allowance (LTA) as a part of the salary, one can avail an income tax deduction on the travel expenses. According to the norm, the LTA benefit can be availed twice in a block of four calendar years. Presently, the block applicable is from 2010 to 2013. Review tax planning     These are some points you should keep in mind while reviewing your investment planning with respect to income tax optimisation:    Check limits: First of all, exhaust the quotas of Section 80C and Section 80CCF. You can analyse the various options and invest to save tax under Section 80C.    Use allowances: Salaried tax-payers should plan expenditure under medical allowance, child education allowance and conveyance allowance for maximum benefit.    Insure: Investing in a medical insurance policy is another option to save tax, if your Section 80C limit is already exhausted. However, it is not advisable to take a medical insurance policy just for the sake of saving tax.     --------------------------------------------- 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 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 Download Tax Saving Mutual Fund Applications   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 Current open Infra Bond Application form   Submit filled up application    Collection canter near you       ------------------------------------------------ How to apply to REC Bonds? Apply for REC Tax Free Bonds forms below Download REC 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

Tax Saving with Life Insurance - Section 80C Posted: 12 Mar 2012 02:26 AM PDT   Tax Saving Mutual Funds Online Current open Infra Bond Application form   Planning is indispensable for life's uncertainties and financial planning is of vital importance across all demography. A person goes through various life stages, in which, he/she would have requirements of different financial products. It is not so difficult to get answers to questions such as — What do you want to do three years from now? Will you own a house? Will you have a family? But everyone stops in their track with one question – What happens to your family if you are not there to provide for them? Are you protected for such an eventuality? A basic financial pyramid structure involves four levels — protection, savings, growth (creation of wealth) and risk (indulge in connoisseur hobbies). Financial planning includes risk management, insurance, asset acquisition and liability management. The most important and vital among them is life insurance. Life insurance, if done properly, will ensure that life will go on smoothly to cater to your needs at different life stages and also for the family with or with out you. It is designed to protect against the uncertainties of life, to ensure a disciplined savings for life stage needs, insures against the risk of living too long and also takes care of inflationary changes. Customers also benefit from the power of compounding by saving in life insurance prudently over a long term. Typically, according to life stage needs, a young professional should first start with building a strong financial base by protecting himself and his family of unforeseen Are you protected for such an eventuality? A basic financial pyramid structure involves four levels -protection, savings, growth (creation of wealth) and risk (indulge in connoisseur hobbies). Financial planning includes risk management, insurance, asset acquisition and liability management. The most important and vital among them is life insurance. Life insurance, if done properly, will ensure that life will go on smoothly to cater to your needs at different life stages and also for the family with or with out you. It is designed to protect against the uncertainties of life, to ensure a disciplined savings for life stage needs, insures against the risk of living too long and also takes care of inflationary changes. Customers also benefit from the power of compounding by saving in life insurance prudently over a long term. Typically, according to life stage needs, a young professional should first start with building a strong financial base by protecting himself and his family of unforeseen circumstances. The reason being, if one lives a normal life, he/she will have all the time to save for the future, but in the case of an eventuality, only life insurance can ensure a life of dignity for their loved ones. In the next stage when he's married and has responsibilities, he should consider traditional endowment policies, savings plans and eventually plan for his children's education/ marriage. Later, when he is also looking at creating wealth, he should invest in investment-oriented plans. One may still ask why life insurance and why not any other financial instrument. Well, apart from the obvious benefits of disciplined and structured life stage based savings and protection, it also provides for coping against inflation. The present rate of inflation is about 9 per cent, and one must understand the inflation is negative compound interest. It is important to follow the above stated route to own a safe financial portfolio. According to a recent study - annual inflation of 7 per cent over 20 years means a sum of Rs 3,00,000 today will have a purchasing power of only Rs 70,271 by 2023. The compounding interest in your life insurance product helps you tackle inflation and help your retirement plans you accumulate wealth. Most people buy life insurance not for life cover or long term wealth creation, but to benefit from tax. Yes, life insurance products also help in tax benefits, but it should be bought not solely for that reason. If tax benefits associated with insurance get taken away, do we stop buying insurance? It is important to realise that life insurance is the only product that provides long-term financial product that provides long-term savings and protection. The goal of buying a life insurance should be to maintain the standard of living and ensuring the dignity of the family in case of any unforeseen situation.   --------------------------------------------- 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 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 Download Tax Saving Mutual Fund Applications   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 Current open Infra Bond Application form   Submit filled up application    Collection canter near you       ------------------------------------------------ How to apply to REC Bonds? Apply for REC Tax Free Bonds forms below Download REC 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

REC Tax Free Bond Form Posted: 12 Mar 2012 01:39 AM PDT How to apply to REC Bonds? Apply for REC Tax Free Bonds forms below Download REC Tax Free Bond Application Forms Submit the filled up form to Collection canter near you   --------------------------------------------- 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 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 Download Tax Saving Mutual Fund Applications   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 Current open 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

Rules before Buying an Insurance Cover Posted: 12 Mar 2012 12:38 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form      It's not even two weeks into the year 2012, but many of your New Year resolutions might have died a natural death by now. But if your insurance resolutions are still alive, be a little more careful in the next two months, otherwise, they may also add to the list of the withered ones soon. This is because you are likely to be swamped by calls from insurance companies and intermediaries exhorting you to buy various insurance products, thanks to the tax-saving season that would end on March 31. Surprisingly, when it comes to insurance, even the most well-informed persons often fall for grandiose sales pitch from insurance advisors and regret their decision later. However, you can make a difference this year and resolve to shed such habits and make a fresh attempt to put your finances in order by sticking to some simple rules. Plan As Per Your Life Stage Like any other financial product, age, dependents, short-term and long-term goals should play a key role in determining the suitability of any life policy. The policy you choose would depend on your age and situation in life. If you are looking at life cover and are single with no dependents, you should consider a term policy. Later, once you are married and have kids, you can move on to buying child insurance plans to arrange for education funds. Simultaneously, one also needs to plan for one's retirement and hence can look at pension plans. Your future earning capacity and current net worth should also influence the sum assured. Tap The Net For Big Savings Since the last couple of years, many life insurers have launched pure protection covers that can be bought only through the internet. The USP is that they cost just half of what the offline term plans do. Earlier, only three life insurers offered term plans online. Now, this number has gone up to 11. This is the best way to buy a term policy as a . 1-crore cover can cost just . 10,000 a year Fortify Protection Portfolio Very often, accidental death and disability covers are offered as rider benefits along with many life insurance policies. Opting for such covers is critical to provide comprehensive financial protection for your dependents in the event of your death. Such covers are also available as standalone policies. Buy A Health Cover While those who are young without responsibilities can afford not to buy a life cover, but a health policy is simply indispensable. Buying an insurance policy early ensures that the insurer will cover all illness, as there are likely to be no exclusions if you are in good health at a young age. Further, you can accumulate bonus sum insured of up to 50% of the basic sum insured on account of no claims in most insurance policies. Those with dependents can consider family floater options. You would also do well to assess your sum assured every year to ensure that it is adequate to take care of medical costs that keep going up. Compare Key Features At the time of choosing or porting a health policy, ensure that you carry out a thorough comparison of products in the market. "Run a check on renewability clause, exclusions and the waiting period while evaluating the products. Policies with lifelong renewability, fewer sub-limits and exclusions and shorter waiting period for covering preexisting illnesses should be preferred. "Once you shortlist products that offer similar features, you can move on to comparing the premiums. Consider New Policies Unlike a couple of years ago, when all health policies followed a template when it came to offerings; today, several innovative ones have hit the market. While buying a health policy this year, you should consider the new products — those offering large covers for the entire family, life-long renewability, restoration of sum assured in case of unrelated illnesses and so on. What You Shouldn't Do Avoid Last-Minute Purchases You should strictly avoid buying a life insurance policy only to save tax. After all, you need to service the premiums year after year and should you skip these payments, the policy could get terminated, leaving you with nominal corpus. Also, steer clear of buying one through your friend, relative or the boss' wife just to oblige them. It entails a long-term commitment, so stay away if you don't really need it. Do Not Ignore MFs While Ulips and pension Ulips are highly popular, it would also make sense to consider other products available in the market before zeroing in on one. If wealth creation is your objective, you can evaluate equity-linked savings schemes (ELSS), diversified equity funds and balanced funds. If your goal is creating a neat retirement corpus, you can consider PPF first, as it offers 8% per annum tax-free returns. NPS is another option that can be looked at. Do Not Outsource Information-Sharing One of the key reasons for claim rejection – for life as well as health policies – is non-disclosure of vital information. Often, the tendency is to leave the task of entering such details to agents, who may not be acquainted with your health history, so ensure that you fill the form yourself. Don't buy an insurance policy by providing incorrect information or by suppressing some material information. Your claim can be repudiated later. This will also help you understand terms and conditions of the policies. Do Not Skip Renewals Indemnity-based health insurance plans, which are typically sold by general insurers, necessitate annual renewals. So, don't forget to renew the same, lest you are deprived of continuation of the cover. Also, never assume that the policy you are renewing carries exactly the same terms as the expiring policy, as insurers may make small changes. So check the terms and conditions at every renewal.   --------------------------------------------- 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 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 Download Tax Saving Mutual Fund Applications   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 Current open Infra Bond Application form   Submit filled up application    Collection canter near you       ------------------------------------------------ How to apply to REC Bonds? Apply for REC Tax Free Bonds forms below Download REC 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

Download Muthoot Finance NCD Application Form Posted: 11 Mar 2012 07:50 PM PDT Apply for Muthoot Finance NCDs forms below Download Muthoot Finance NCD Application Forms Submit the filled up form to Collection canter near you --------------------------------------------- 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 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 Download Tax Saving Mutual Fund Applications   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 Current open Infra Bond Application form   Submit filled up application    Collection canter near you       ------------------------------------------------ How to apply to REC Bonds? Apply for REC Tax Free Bonds forms below Download REC 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

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