Prajna Capital

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• Rajiv Gandhi Equity Scheme
• UTI Mutual Fund NFO Fixed Term Income Series
• BNP Paribas Dividend Yield
• ING STAR LIFE - An endowment plan
• Section 80CCF Income Tax benefit
• What Is your investment approach ?
• Advantages of Investing in bonds
• Why You Should Stay with Ulips ?

Rajiv Gandhi Equity Scheme Posted: 21 Mar 2012 04:19 AM PDT It is not a mutual fund. It is a onetime scheme which basically promotes opening a demat account and getting a little promoting, equity investment promoting scheme.   It has been structured is that it's going to be a once in a lifetime tax rebate on a Rs 50,000 investment. It'll apply only if your income is less than Rs 10 lakh and if you've never invested in equity again, and then you will get a tax rebate of Rs 25,000.     --------------------------------------------- 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

UTI Mutual Fund NFO Fixed Term Income Series Posted: 21 Mar 2012 03:24 AM PDT   UTI Mutual Fund has announced the launch of UTI Fixed Term Income Series XI - VII (367 Days). The NFO will be open for subscription from March 20, 2012 to March 26, 2012.   The maturity date will be March 28, 2013. --------------------------------------------- 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

BNP Paribas Dividend Yield Posted: 21 Mar 2012 02:26 AM PDT   Tax Saving Mutual Funds Online Current open Infra Bond Application form     In the first year of its existence (2006), it was the worst performer in its category. Since then, it has put up a decent performance. It made its mark in the downturn of 2008 with a top quartile performance. Therein lies the success of the fund. It impresses during market downturns. Though its performance in 2010 was not disappointing, it fails to impress during rallies.   The reason for such erratic behaviour could be discontinuity at the helm; five fund managers since August 2005. However, Anand Shah took over as CIO in March 2011 and after that Shreyash Devalkar replaced Amit Nigam as the fund manager. Going by Shah's earlier stint at Canara Robeco, this could be good for investors.   The fund utilises the agility that its small size provides. A case in point: allocation to Financial Services (14%) in August 2011 was halved in September and again increased in October (13%). Back in January 2008, allocation to Diversified was brought down to 4 per cent from 25 per cent (December 2007). Similarly in 2009, allocation to FMCG was halved between June and August that year. But Devalkar puts these moves down to disciplined bottom-up stock picking. "Dividend yield is the starting point for stock selection for this fund, ensuring that the stocks are picked at reasonable valuations. We select the companies based on strength of business model, sustainable competitive advantage and its ability to generate free cash flow, today and in future. Subsequently, management capability and corporate governance of the company are critically evaluated. And lastly, we evaluate the valuations to see if it is at a discount to its intrinsic value.   No longer is the fund as aggressive as it was when single stock bets have gone up to 10 per cent. Since 2007, it has not exceeded 7 per cent and the portfolio holds around 37 stocks (1-year average), a far cry from it held around 20-25 stocks.   This fund has not produced any breathtaking returns and no top quartile performance in bull markets. By stemming the fall in bear ones, its decent track record positions itself as a good choice for conservative investors.     --------------------------------------------- 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

ING STAR LIFE - An endowment plan Posted: 21 Mar 2012 01:35 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form  ING Star Life is an endowment plan with limited premium paying term of 3 years for the policy term of 12 years. The scheme ensures annual guaranteed additions, payable at the end of the policy term with the sum assured. Sum assured is determined by the annual premium paid by the policyholder. In the event of the death of the policyholder during the policy term, an amount equivalent to 5 times the annual premium is payable to the nominee. Key Features Annual additions ranging from 8% to 10% of the sum assured p.a., are guaranteed by ING Star Life. This benefit is to be paid to the policyholder on maturity, ie, after 12 years. The sum assured as such shall be paid in two equal installments - 50% at the end of the 10th year and 50% towards the end of the 11th policy year. Maturity / Death Benefits Assuming the age of the policyholder to be 30 years, the maturity and the death benefits that will accrue at various slabs of sum assured are illustrated herewith     Our View Being an endowment scheme, ING Star Life offers ease of investment along with insurance cover. Between the two, however, it is the insurance cover that appears more appealing. Unlike most endowment schemes, where sum assured (SA) is the death benefit, here the nominee is given 5 times the annual premium (AP) as death benefit. As APs here are quite high (being a limited premium plan), the death benefit is nearly double the amount of SA. The scheme, however, is a let down on the investment aspect. Though prima facie, the returns of 8-10% look impressive, these are calculated on a simple basis and not compounded like bank fixed deposits which make bank fixed deposits more lucrative even at 8.5% pa, post tax and net of premiums payable on a pure term plan.     --------------------------------------------- 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

Section 80CCF Income Tax benefit Posted: 21 Mar 2012 12:41 AM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form   The bonds have been classified as long term infrastructure bonds and are being issued in terms of Section 80CCF of the Income Tax Act, 1961. In accordance with Section 80CCF, an amount, not exceeding Rs 20,000 per annum in the year of investment, paid or deposited as subscription to long term infrastructure bonds during the previous year relevant to the assessment year beginning April 01, 2012, shall be deducted in computing the taxable income of a resident individual or hindu undivided family (HUF). In the event that any applicant applies for tranche 3 bonds exceeding Rs 20,000 per annum in the year of the investment, the aforesaid tax benefit shall be available to such applicant only to the extent of Rs 20,000 per annum in the year of the investment.   --------------------------------------------- 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

What Is your investment approach ? Posted: 20 Mar 2012 11:53 PM PDT With the financial year about to end, most investors will be reflecting on their investment plans. If you don't find yourself any closer to your financial goals, it is imperative that you evaluate your investment decisions. Here are a few pertinent questions you may want to consider while reviewing your investments: Are investments helping achieve your dreams? The first and foremost step is to define your goals. Many a time, investors do not map investments according to goals. Even if they do, few translate these to numbers. It is vital to remember that your investments are merely the means to realising your dreams. For instance, if your objective is to purchase a car a year later, you should be conservative in your approach due to paucity of time. However, if you are planning for your retirement (twenty five years away), you can afford to invest in instruments that would give you better returns over the long term (though these could be risky in the short term). Losing sight of your goals may lead to ill-suited investment decisions. Have you created a long term financial plan? A financial plan that puts all your investment goals on one canvas will empower you to make informed decisions tailored to your financial situation. The relevance of a financial plan is truly understood when you start to lay out your entire financial future in perspective. For instance, you may want to buy a car in one year, take your family for a vacation every year, buy a dream house in five years, provide funds for your children's education in eight years and plan for a comfortable retirement in twenty years. Now, each of these goals may be equally dear to you, however a comprehensive financial plan would allow you to prioritise and invest accordingly. Your investment vehicles could differ, as the underlying factors for each goal are different. Have you invested keeping in mind your risk profile? A vital element of a successful investment approach is to understand your risk appetite. Risk can have different implications for different individuals. While we all intuitively want high returns, some of us do not have the appetite to bear the downside that may come with high-return (high-risk) instruments. Always dig deeper to understand what you are getting into and the possible risks associated with it. For example, lured by attractive terms, you may not want to park funds in an exotic investment product, without fully understanding the implications or your ability to absorb the risk. Do you understand your investment products? Did you purchase a product just because your friends made money on it? While its good to be aware of what others are buying, remember your financial decisions should be based solely on your financial situation. Interestingly, according to a recent market research conducted, Investment decisions are often influenced by the geography in which one lives and the people one regularly interacts with. Have you allocated your wealth across asset classes? Spreading your investments across asset classes is one of the most critical factors in determining your portfolio performance. By dividing your investible surplus among asset classes that do not respond to the same market forces in a similar manner, you may be able to minimise the effects of market volatility and maximise the chances of return in the long term. You would benefit from unbiased advice provided by a financial planner. It is critical to decide the liquidity you require. The sooner you will need your money, the wiser it is to keep it in investments with lesser volatile price movements. Therefore, the most important aspect in making an investment decision is to follow a structured plan, developed keeping in view the long- and short-term goals. Also, be prepared to meet the uncertainties that may arise in life.     --------------------------------------------- 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

Advantages of Investing in bonds Posted: 20 Mar 2012 10:44 PM PDT 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

Why You Should Stay with Ulips ? Posted: 20 Mar 2012 08:43 PM PDT   Life Insurance is a long-term product and Unit-Linked Insurance Plans (Ulips) are no different. Unfortunately, some customers have bought Ulips with a short-term objective in mind, and in the volatile market conditions, they press the panic button and surrender the policies or discontinue payment of premiums. This action is detrimental to the financial health of the policy holder. It is important to keep the Ulip policy in force for the entire term by paying premium regularly. Importance Of Cover You will lose the insurance cover on discontinuance or surrender of the policy. Please remember that you are losing not only the investment benefits, but also the insurance cover. To keep your insurance cover at the same level, you need to purchase another insurance policy, which may come at a higher cost than the mortality charges deducted from units. Another option frequently exercised is discontinuing paying the premiums after the mandatory period and continuing to hold the policy. In such cases, you have to remember that the sufficient fund value should exist in the policy to cover the mortality charges for life cover to be maintained. The policy will be terminated if the fund value goes below the threshold limit prescribed by the insurer. The mortality rates will be available in the policy document. Persistency/Bonus Units Some of the Ulip plans offer bonus units in the form of additional units. They will be credited to your fund account at the time of maturity or after keeping the policy in force for a certain period. Discontinued policies are not eligible for this benefit. No Short-Term Play Do not treat Ulips as high yielding short-term investments. Investment returns can turn negative in the short term, thereby reducing the value of your portfolio. Purchase Ulips by aligning them with your long-term objectives and stay put in the policy for the entire term. Don't Surrender If Market Crashes Most policy holders surrender their policies while the market has crashed. On the contrary, it is the best time to pay the premium for a long term product. Premiums paid while the market is at lower levels, purchase more units at a lower NAV. As the market goes up and NAV increases, the fund value increases. Higher Charges In Initial Yrs Insurers incur high costs for policy acquisition. These costs are recovered from the premiums paid during the initial years. As the tenure increases, these costs reduce drastically. As the higher costs have already been paid, it will be beneficial for you to reap the benefits of higher allocation to invest in the later years. Use Partial Withdrawals For Emergencies Another reason for discontinuance or surrender of Ulips is emergency fund requirements. Look for alternative financing options rather than surrendering a Ulip. If no other alternative is available, use options like partial withdrawals and keep paying premiums. This will maintain the risk cover and also keep you aligned to your goal. Spread Your Investible Amount Across The Funds Ulips offer various fund options to select. If you are not an aggressive investor, spread your funds across equity, balanced and debt funds as offered by the insurer. Also remember to align your fund portfolio to suit your investment profile and Life Style.   --------------------------------------------- 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

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