Prajna Capital

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• Bonds are for risk averse investors
• Buy health insurance when you are young
• What is a bond?
• Max New York Life Gain
• Birla Sun Life International Equity Fund Plan A
• Templeton India Equity Income

Bonds are for risk averse investors Posted: 19 Mar 2012 11:33 PM PDT    The equity markets have gone up by almost 20 percent over the last six weeks, and are consolidating close to crucial levels. The markets are expecting a direction from the global markets for a decisive breakout from the current range. Since the markets are in a consolidation mode, investors are advised to review their portfolios and make the necessary changes in terms of profit booking, and cutting loss. Investors can also rebalance their overall investment portfolios with respect to investments in equity and debt instruments. What is a bond?     A bond is a debt instrument issued by the government or a corporate house to raise funds from the markets. A bond has a specific maturity date which can range from a few days to many years. Based on the maturity period, it can be a short-term bond or a long-term bond.    A bond has a fixed maturity value. It is based on the type of bond. There may or may not be regular interest payments, known as coupon payments. Large institutions such as banks, mutual funds and foreign funds are some of the large investors in government and corporate bonds.    Individual investors mainly invest in bonds taking the debt-based mutual funds route, or directly in corporate bonds or tax-saving bonds. Who should invest in bonds?     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.     --------------------------------------------- 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 Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Buy health insurance when you are young Posted: 19 Mar 2012 09:00 PM PDT YOU may be aware that having health insurance is essential, but have you ever wondered just how much insurance would be enough for you and your family? It may have been a mind-boggling decision until now, but it no longer has to be. A few tips may help you decide just what the right health insurance amount for you is. Take into account your age: Your age is the first thing that must be taken into consideration since it is one of the most important factors that affect your health insurance. An early start is, therefore, best advised. For instance, if you start at age 35 years or below, then you should start with a sum insured of Rs 1.5 lakh and increase it by 10-15 per cent every year. Taking a health insurance policy when younger, simply means, that you get a better deal while paying a lower premium, as you would usually have fewer pre-existing diseases. In addition to that, some insurers also offer plans that are designed specifically for senior citizens or people aged 46 years and above. Such plans come with special features such as a shorter waiting period than the normal health plans. These are, therefore, some options you can consider, since they meet age specific requirements. Consider the life stage that you are at: Insurance requirements change as you progress in your life. This is why you should consider your life stage, so that you can have the right amount of health cover. If you are married, you have the responsibility of your spouse, and perhaps children too. In such a case, you will have to get a plan that caters to the possibility of their health problems as well. Thus, you can consider a family floater plan that would cover the entire family under a single policy. As a result, it will also be easy to manage rather than having separate plans for each family member. Consider extra health insurance cover also: The company you work at may offer you insurance facilities. While this is definitely a convenient benefit offered by employers, it most often is not sufficient, nor is it for long-term. You could lose these benefits upon quitting the job, thus leaving you without any cover, especially in a situation where the group cover is the primary health insurance option. It is, therefore, advisable to have an individual health insurance plan too. Also, considering the rising medical costs, especially with new and advanced procedures being available in India, it is advisable to consider a product that can be taken as a top-up policy (with some deductions applicable). Such a plan would give you continuity benefits over your existing policy at a reasonable premium. Think beyond your basic health cover: While your basic health cover will offer standard hospitalisation benefits, you should think beyond that too, and get something that would cater to specific needs for your family. Certain plans that can enhance your health cover, thus making it a comprehensive cover, are good options for you to choose from. Some of the choices avail able in the market today that you can consider for a com plete health cover are: Hospital cash, which pro vide you with a daily al lowance to meet incidentals that are not covered under the health plan. Critical illness covers, which also include women specific illnesses. Covers for a second medical expert. on with a medical expert. Personal accident cover. A special plan for senior citizens. Tax benefit: As per the existing tax laws, the premium paid towards health insurance is eligible for tax deduction under Section 80D of the Income Tax Act. This can be a maximum of Rs 35,000 including premium paid for both parents above 60 years. Hence, this is another reason for you to consider a health insurance.     --------------------------------------------- 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 Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

What is a bond? Posted: 19 Mar 2012 08:25 PM PDT A bond is a debt instrument issued by the government or a corporate house to raise funds from the markets. A bond has a specific maturity date which can range from a few days to many years. Based on the maturity period, it can be a short-term bond or a long-term bond.    A bond has a fixed maturity value. It is based on the type of bond. There may or may not be regular interest payments, known as coupon payments. Large institutions such as banks, mutual funds and foreign funds are some of the large investors in government and corporate bonds.    Individual investors mainly invest in bonds taking the debt-based mutual funds route, or directly in corporate bonds or tax-saving bonds. Who should invest in bonds?     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.   --------------------------------------------- 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 Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Max New York Life Gain Posted: 19 Mar 2012 09:52 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form     Max New York Life's Life Gain Plus is an endowment plan with a limited premium paying term. The policyholder can choose a policy term of 20 or 25 years and a premium paying term of 6 or 10 years for a 20-year plan and 6, 10 or 15 years for a 25-year plan Key Features The plan pays double the amount of sum assured to the nominee in the event of the death of the policyholder after five years of taking the policy. In case the death occurs within five years of taking the policy, only the basic sum assured is paid to the nominee. The survival benefit or amount payable on maturity to the policyholder is, however, assured at 110% of the basic sum assured. ADDITIONAL Feature In case the policyholder is diagnosed with a terminal illness with life expectancy of 6 months or less, the policyholder is given 50% of the sum assured subject to a maximum of Rs 5 lakh. The balance amount of the sum assured is paid to the nominee on death of the policyholder. PREMIUM Table Assuming a policy term of 25 years for a sum assured of Rs 10 lakh, the annual and total premium payable by a healthy male individual at various age groups is illustrated herewith:      Being an endowment policy, the premiums payable under Max New York Life Gain Plus are much higher than what are otherwise payable in case the policyholder opts for a term plan for a similar or even higher sum assured. However, what we like about this plan is its additional feature of providing immediate aid to the policyholder in the event of the diagnosis of a terminal illness. And though the plan's key feature of double death benefit to the nominee is impressive, the fact that the same kicks in only after completion of five policy years is a let down. The survival benefit / amount receivable on maturity in case of the above illustration will be 11 lakh (ie, 110% of the sum assured of 10 lakh). The company may also declare periodic bonuses, but the same are not guaranteed.     --------------------------------------------- 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

Birla Sun Life International Equity Fund Plan A Posted: 19 Mar 2012 09:17 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form   Birla Sun Life International Equity Fund Plan A was launched in October 2007. Since its inception, the fund's performance has been volatile. However, in times when the Indian markets have been in the red, the fund has managed to offer decent returns. Essentially, the fund invests in companies comprising Standard & Poor's global index, which is made up of 1,200 stocks. Of these, the fund invests in companies, which are given four-and-fivestar ratings by S&P research. These being the leading companies in their respective sectors, they have posted decent revenues even in times of a slowdown. In the past the fund has had higher exposure to Chinese and Hong Kong markets. During the slowdown, the fund performed poorly in 2008. However, since 2009 the fund has become defensive and increased its exposure to developed markets, especially the US.   At present, fund has 55-60% exposure to the US markets. We believe these multinational companies, which derive revenues from different geographies, play a strong role in enhancing the performance of the fund even in times of a slowdown in the US markets   --------------------------------------------- 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

Templeton India Equity Income Posted: 19 Mar 2012 08:27 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form    Though the mandate is to invest up to 50 per cent of its assets in foreign equity, it has peaked at 35 per cent with majority of the investments in Asian stocks.   The fund employs a value-based investment approach and looks for stocks that have an attractive dividend yield. According to Chetan Sehgal, CIO - India, Emerging Markets Group, Templeton Equity, "the bottom-up, value oriented approach is driven by three principles - value, bargain hunting and long-term orientation. The investment selection process focuses on finding companies that are mispriced relative to their potential five years in the future." The fund maintains a fairly compact portfolio of around 31 stocks (average over past year), out of which around 22 are listed in India.   Don't expect to see a portfolio here which bears similarity to its peers. First of all it stands out in its international allocation. Since it specializes in a value based style of investing, there could be some bets viewed as contrarian. The 13 per cent (average) allocation to Metals since launch is a case in point, even during the market meltdown of 2008. And barring a miniscule allocation for a few months in 2008 and 2009, the fund has steered clear of Pharma and has barely dabbled in Power.   The sector allocations are just the by-product of the stock picking process. For instance, for the 14 months ended August 2010, the fund had an average allocation of around 14 per cent to Chemicals, the only stock owned being Tata Chemicals. "Tata Chemicals has a diversified business portfolio with interests spanning soda ash, fertilizers and salt. It has a global footprint and holds investments in various Tata group companies," explains Sehgal. Barring this one, no Indian stock has accounted for more than 8 per cent of the portfolio; foreign stocks have not exceeded the 5 per cent mark.   Since 2010, the fund has been classified as 'Equity: Multi Cap' from its earlier positioning as 'Equity: Large & Mid Cap'. From being an average performer for two years, from 2009 onwards the fund's performance began to significantly improve. However, its long-term returns put it in a good light.   --------------------------------------------- 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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