SEO Simplified By Gabs Gaurs &amp; Geets

A FEW days ago, I was reading an advertorial by a jeweller brand. A comparison was made between present wedding expenses and expense 20 years later. The amount is six times the present expenses. With the increase in gold prices and at the existing fluctuating 8 per cent inflation rate, it has become almost impossible now to predict how much money would be required to lead a comfortable life two decades later. Life insurance assesses you needs with long-term financial goal perspective, and helps you plan ahead.

We all have different family structures, lifestyle and expenses. But, some things are mostly common with everyone — getting married, buying a house, having a child, child education and eventually marriage of the child. All this is interspersed with health breakdowns and other emergencies. The small ones can be tided over, but the bigger ones pose a problem. During your working life, it is easy to handle such a situation because mostly people would be covered by company medical insurance. But, what if something irreversible happened to you during your working years? Life insurance provides 'term plans' for such exigencies.

The basic feature of life insurance is to provide long-term savings and protection for your family.

It helps you build wealth depending on your present stage in life and your future financial needs. Life insurance has several attributes.

While the loss of the family's main breadwinner is an irreplaceable loss, with a protection plan in place, the family can continue to live with the funds required to be financially independent. No other financial instrument will be able to provide this unique attribute of life insurance and, hence, it should be a key ingredient in an individual's financial plan. As a risk-management tool, adequate life insurance with proper cover in an individual's financial plan is a must-have.

Demand is always more than supply when it comes to money. Education for children and their extracurricular activities take up a large sum in an individual's portfolio. All this, along with financial security, is possible if you can include enough savings and insurance coverage that grows with them and is there for your child when needed.

The most important thing to remember is that life insurance provides a policy for each stage of your life. But, that does not in any way imply that all policies are meant for everyone. Before buying a policy, factors such as age, in come, background and dependants need to accounted for. An unmarried person may just buy a term policy. However, with marriage and increasing financial responsibilities, protection along with long-term savings is required. Long-term savings is also key towards building the much needed wealth kitty.

To predict an exact requirement of a person's life span requirement would be difficult. But, after a broad level assessment of an individual's existing liabilities, expectation of future liabilities, number of dependents, financial goals, lifestyle and inflation rate, it is possible to map your future financial needs with the several life insurance plans available and tailored to suit your changing financial needs and responsibilities.

Apart from long-term savings and protection, life insurance provides additional benefits of systematic savings and the power of compounding which will aid wealth creation for the customer. Endowment and money back plans are as important as long-term pension plans in a portfolio.

There is also another class of additional insurance covers called riders that one can attach to the usual life plans that enhance the scope of the cover both qualitatively and quantitatively.

Riders are mostly ignored by customers as they feel it is a waste of money.

However, niche risk covers such as accidental death or contracting a critical illness are very important. It is imperative for customers to understand the need to buy the right insurance plans at the right time and the need to enhance it to match the changing lifestyle needs.

Life insurance is the most reliable financial tool when it comes to planning for future expenses as well as for emergency situations. Even though there is no instant gratification, such as a sudden gain in the stock market, life insurance provides that financial stability when you actually need it. A policy is available for each stage of life. It is for you to understand your needs and decide after proper discussion with your agent/adviser how much you want to invest under what timeframe.

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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

Download REC Tax Free Bond Application Forms

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

Taxes in India

Posted: 14 Mar 2012 10:38 PM PDT

A) DIRECT TAXES
It's the tax individuals & companies pay directly to the govt.

1) Corporation Tax
It's the tax companies pay (30% at present) on their profits.

2) Taxes On Income Other Than Corp Tax
It's income-tax paid by individuals or 'non-corporate assessees'. This ranges from 10% to 30%, depending on income.

3) Securities Transaction Tax (STT)
Applicable if you're dealing in shares or mutual fund units. It was introduced in the 2004-05 budget, replacing the tax on profits earned from the sale of shares held for more than a year (known as long-term capital gains tax).

4) Minimum Alternate Tax (MAT)
Indian companies pay 30% tax on profits as per the I-T Act. But tax holidays could lower the outgo. If a company's tax liability is less than 10% of its profits, it has to pay a MAT of 15% of book profits. This provision is expected to change once the direct taxes code (explained below) proposals are accepted. Under DTC, MAT will be levied on gross assets.

B) INDIRECT TAXES
It's essentially a tax on expenditure. Considered regressive, this tax does not distinguish between the rich and the poor and hence most governments prefer to raise their revenues through direct taxes.

1) Customs
Anything you bring from abroad comes at a price. By levying a tax on imports, the government achieves twin objectives: it raises revenues and protects local industries.

2) Union Excise Duty
Imposed on goods manufactured in the country.

3) Service Tax
You pay the government when you eat out or visit your hairdresser -- it is a tax on services rendered. Levied on 119 activities.

4) Value-Added Tax
State governments levy this on goods at the point of sale, based on the difference between the value of the output and the value of inputs used to produce it. The aim here is to tax a firm only for the value it adds to the inputs, and not the entire input cost. Thus, VAT helps avoid a cascading of taxes.

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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

Download REC Tax Free Bond Application Forms

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

TATA PE Fund

Posted: 14 Mar 2012 09:52 PM PDT

The fund's strategy is to invest at least 70 per cent of its assets in stocks that have a trailing P/E less than that of the Sensex at the time of investment. With the balance 30 per cent, the fund manager has a free hand. According to Sethi, "Buying good companies at an attractive/low PE is not the only anchor. We use other qualitative and quantitative screens such as quality of management, capital efficiency exhibited by the company, earnings growth, free cash flow generated by the company, valuations and liquidity."

With around 60 stocks and the allocation to the top five amounting to around 21 per cent (1-year average), the portfolio is not too aggressive with individual bets though strong sector exposures have been a norm. For instance, allocation to Metals touching 29 per cent (May 2008) and a similar move in Financial Services (May 2009). Such bets could turn out to be risky if they fail to deliver the desired results.

The relatively small size of the fund helps. For instance, the 6 per cent allocation to Technology was increased to 23 per cent in just four months in 2009. Similarly, the 29 per cent allocation to Financial Services was brought down to around 10 per cent within three months.

Although current allocation to large caps is around half the portfolio, in the past it has gone to as low as 20 per cent (November 2009).

The fund's strategy requires patience and investors should not get disheartened by underperformance over the short-term. "If one looks thematically at 2011, consumer oriented companies with visible near term earnings growth but trailing PE ratio ahead of the Sensex have done quite well. This fund cannot invest more than 30 per cent of the fund in stocks that have a trailing PE ratio higher than the Sensex. This relatively disadvantaged the fund last year," says Sethi.

During the market run-ups of 2007 and 2009, the fund beat its category by an impressive margin of over 20 per cent. During the meltdown of 2008, the fund registered a fall close to its category. In 2011, the fund's fall was pretty much in line with that of the average. But if we look at the returns over a five-year period, it is among the top three in its category.

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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

Download REC Tax Free Bond Application Forms

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

Who should invest in bonds?

Posted: 14 Mar 2012 09:15 PM PDT

All investors should have some exposure to bonds. The percentage of allocation to bonds can vary based on the risk profile of the investor. Including debt-based instruments brings stability to the overall investment portfolio of an investor.

Some bonds also qualify for tax rebate and hence their overall returns net of taxes become quite attractive.

Advantages of debt instruments

Interest rates have reached their peak levels and expectations are the Reserve Bank of India (RBI) will go for some monetary softening, going forward. Investments in debt based instruments seem quite attractive from many perspectives such as capital preservation and risk returns ratio. Capital appreciation is intact even if interest rates go down in the future.

Investors with a low risk appetite can reduce exposure to equity and rebalance the portfolio by investing in debt based instruments.

Here are some options in bonds:

Debt funds

These instruments are good options for investors with a low risk appetite. These funds invest in debt based instruments and government bonds.

Therefore provide safety of principal with decent returns. These funds come without any lock-in such as bank fixed deposits. They offer quick liquidation and hence come in handy for those wanting to invest with a short to mediumterm perspective without any investment risk.

Since interest rates are up, debt-based instruments are attractive from many perspectives such as capital preservation, low risk, high returns and the possibility of capital appreciation if the interest rates go down in future.

Liquid funds

Liquid funds are good for investors who want to park their funds for a short term. These funds invest the corpus mainly in money market instruments, short-term corporate deposits and treasury. Liquid funds can be liquidated on a very short notice. Therefore, they score over other short-term deposits.

Returns from bank fixed deposits are taxable depending on the tax bracket of the investor, which pulls down the actual returns considerably. Dividends from liquid funds are tax-free in the hands of the investor. This increases their effective returns.

Tax-saving bonds

There are various bonds available in the market that qualifies for income tax rebate. These tax-saving bonds come with a lock-in period of five years or more. The returns from these bonds, including the income tax savings, are attractive for investors in higher income tax brackets.

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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

Star Union DAI-ICHI - Defined Growth Endowment Insurance Plan

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

Posted: 14 Mar 2012 08:06 PM PDT

Defined Growth Endowment Insurance Plan (DGEP) is an endowment product from Star Union Dai-ichi Life Insurance with fixed policy terms of 15, 20 and 25 years. The scheme offers to pay guaranteed additions ranging from 5% to 8% depending on the policy term. The additions accrue each year and are paid to the policyholder at the time of maturity along with the sum assured. In the event of death of the policy holder before maturity, the nominee is entitled to receive the entire amount of sum assured along with guaranteed additions accrued till the date of death.

Key Features

The guaranteed additions are phased-in in an ascending order of the policy term, ie, 5% of the sum assured to be paid during the first five policy years, 6% during the next five, 7% for the next five years, and so on. The scheme also provides for a one-time payment of loyalty addition, ranging from 2.5% to 7.5% of the sum assured, payable on maturity.

Star Union Dai-ichi - Defined Growth Endowment Insurance is a comprehensive endowment plan with insurance cover and investment gains on maturity. While one might assume the guaranteed returns of 5-8% throughout the policy term to be an attractive proposition, the fact remains that these returns fall short of expectations when compared with the up to 10% returns being offered by many other guaranteed investment products available in the market today.

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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