Prajna Capital

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• Personal Accident Cover
• Implications of a mutual fund not paying dividend
• Taxability of Home Loans and Property Income post DTC
• How to make Extra medical provision for parents
• Principal Mutual Fund
• Canara Robeco Infrastructure
• DWS Twin Advantage & DWS Money Plus Advantage - Change in Fund Manager
• KYC Registration Agency (KRA)
• Bharti Axa Life Power Kid Insurance Plan
• Bank FDs
• LIC Jeevan Ankur

Personal Accident Cover Posted: 09 Apr 2012 03:57 AM PDT Tax Saving Mutual Funds Online When we take the newspaper in the morning, we see at least two pieces on road accidents, everyday. Apart from the mental trauma, such incidents can lead to terrible financial trauma. Therefore, one should be prepared to compensate such losses, if they arise as medical and hospital costs are very high. And most individuals do not have a plan if faced with this trauma. A study suggested premiums from personal accident covers account for less than three per cent of the total market premiums of ~30,000 crore as on 2008-09. This, when it is a must for everyone and is available at affordable premium. One reason for individuals not buying this cover is that it neither offers any investment opportunities nor helps save taxes. Individuals mostly cover the risk of death by buying life insurance. However, the same is not true when it comes to covering the risk of an accident. Such individuals may face the risk of getting disabled and losing their capability to be actively employed. Not only would the recurring medical costs keep increasing, the loss of income earning opportunity would also loom high. To illustrate, a 35-year old individual, earning approximately ~15 lakh per annum, today on an average should have a life insurance cover worth anywhere between ~50 lakh to ~1 crore. And, it is also important to cover the risk of loss in income due to an accident. Considering a life expectancy of another 25 years after meeting with an accident at the said age, the individual would require approximately ~90 lakh to provide for a monthly expense of ~30,000. Further, considering increased medical expenditure of ~15,000 a month, the corpus required would add up to another ~45 lakh. No support would be received from the life insurance covers in such an eventuality and the gap will need to self-funded. What is covered? These policies cover the risk of death / disability arising due to an accident. Accident, for this purpose, means unforeseen and unexpected events caused by external, violent, visible means and that led to physical bodily injury. As a corollary, bodily injury or death arising solely and directly as a result of such events are settled under this policy. How much cover should be bought? In case of life insurance contracts, the underwriters determine the maximum insurance cover that can be granted to an individual. In case of personal accident policies, the extent of coverage is based on the current level of income of the policy proposer (one who has proposed to buy the policy). Across companies, the maximum coverage varies anywhere between 6-10 times of the annual income of an individual, as per the income tax returns records. Individuals, proposing to take a personal accident cover, should also note that this policy is an annual renewable policy. And at every renewal supporting income documents need to be submitted to justify the cover taken. If required, you could increase your cover as well at renewal, provided your income supports it and you can pay a higher premium. It is also preferable that individuals have a standalone cover for personal accident over and above a rider that he/she might have added to his/her life insurance policies. From the insurance company's perspective, as long as the bodily injury or the death is a direct result of an accident, fitting well as per the definition, the claim procedures are also quite simple. With added benefits, now possible, the traditional personal accident cover has come along way and definitely merits a place in one's insurance portfolio. Benefits under the policy Death due to an accident Permanent and/or total disability in an accident Loss of both limbs / one hand and one foot / loss of limbs and eyes / complete loss of eyesight, speech Any permanent but partial disability (subject to limits) Temporary and total disablement - Fixed sum will be paid (based on the sum assured), weekly for a fixed tenure Additional benefits: With a number of private players entering the insurance space, a lot of innovative benefits are now offered under this cover along with the traditional cover. Here are some of the extra benefits that are provided by many general insurers Education benefit: The policy will bear the education cost of maximum two dependent children, up to the age of 23, subject to limits. Employment benefits: The policy provides financial compensation up to a specified limit in the event of loss of employment of the insured following an accident resulting in loss of limbs/eyes or permanent total disability. Ambulance benefits: If the insured has used an ambulance to reach a hospital, the policy will pay the necessary charges up to a specified limit. Funeral expenses: In case of accidental death, funeral expenses can also be covered Hospital / Daily cash benefits: The policy provides payment of a fixed allowance on a daily basis on hospitalisation in India for accidental bodily injury, if the hospitalisation exceeds a specified number of days. The rate of allowance and the minimum period of hospitalisation qualifying for payment of this allowance would depend on the plan. Other benefits: The policy also covers expenses for transportation of dead body, reimbursement of medical expenses incurred for treatment following an accident, cost of supporting items used like crutches, wheelchair, artificial limbs are also reimbursed.   Move surplus to high growth options The annual ceiling on investment in the Public Provident Fund (PPF) scheme has been increased to ~1 lakh from ~70,000. Also, the interest rate has been hiked to 8.6 per cent from the present 8 per cent. While a tax free 8.6 per cent annually is good news for investors, this rate is applicable only for the current financial year. In other words, the rate of interest on PPF is going to be aligned with the rate on government securities (G-Sec), of similar maturity, with a spread of 25 basis points (bps). Hundred basis point is equal to one per cent.   In other words, the rate of interest on PPF, is no longer fixed. It is now floating or market linked. It's going to change every year and the applicable rate will be notified in the beginning of each financial year.   Needless to say, the changes brought about are extremely significant for investors. So far, long term instruments like PPF were largely being used to build one's retirement corpus or to meet other long-term financial goals such as marriage and education of children. Till now, it was easier to plan with instruments like PPF, because there was an element of certainty involved - a specific amount growing at a specified interest rate for a specific number of years will compound to reach a specific goal. Now, the 'growth rate' will not be specified and hence investors will require some recalibration in the financial plan.   A case in point is the Mehta family. Mr Mehta and his wife, in their mid-thirties, are parents to a three-year old daughter. Their combined income is ~1 lakh a month. After catering to household and other expenses like home loan repayment, they save around ~26,000. One of their key goals is to provide for their daughter's education and marriage. For this, a PPF account in the child's name. As the child is only three, the need for spending on higher education would arise 18-20 years later.   Planning wise, upon the expiry of the initial 15 years, the Mehtas plan to extend contributions by another five years. At the rate of 8 per cent a year, till now the Mehtas were assured of a sum of ~32 lakh, 20 years hence. But now, as the interest rate will be reset each year, the maturity value of the PPF corpus 20 years from now could be lesser than ~32 lakh or could be more. It all depends upon the interest rate movement over the next 20 years or so.   Due uncertain interest rates on PPF, the Mehtas may need to contribute to some other high growth instrument, which may help them if returns on PPF fail. And given that education cost is sky rocketing, they will be better off with some extra contribution towards equity funds - diversified or index. With time in hand, they can easily fulfil their monetary needs 20 years later.   In case of 42-year old Mr Shah, PPF was a part of his retirement planning. Shah is a senior manager in a pharmaceutical company and his wife is a home maker. For his retirement corpus, Shah planned to augment his provident fund (PF) proceeds with PPF. He recently also started a PPF account in his wife's name where he contributes ~70,000 a year. His plan was to primarily use his PF proceeds during retirement and have the PPF balance as reserve.   As the PPF account can be extended beyond its initial term, Shah's plan would have converted his wife's PPF into what would really become a five year fixed deposit, the funds of which were accessible at any given time. Assuming that PPF account can be continued for 25 years, the Shahs would have had a sum of over ~51 lakh at their disposal (apart from the PF proceeds) during their retirement. To put it simply, the PPF money was meant as a retirement safety net.   Now since the structure of PPF hasn't been changed, the Shahs can still carry out their plan of keeping on extending the PPF account. However, they are faced with the same dilemma as the Mehtas. They are no longer sure as to how much they would manage to salt away come the time. Will it still be over half a crore? Or, could it be more? What if the money turns out to be much lesser? Will a smaller safety net provide the same kind of security? Well, there are no definite answers. Like they say, the only thing certain nowadays is uncertainty. And investors would do well to accept this uncertainty instead of fighting it. In other words, it is important to continue working along with the uncertainty, at the same time devising ways and means whenever possible of working around it.   For instance, just like in case of the Mehtas, Shahs could also look at diverting any surplus to equity diversified funds and/or index fund. Closer to the goal, both families can start moving the money to debt systematically.   An example of working along with the uncertainty is to continue your PPF investment. Just because the interest rate has become marketlinked doesn't mean that you should abandon the instrument altogether. At the same time, a way of working around the unpredictability of the instrument would be to review and relook at the calculations every couple of years and make the necessary adjustments accordingly. If necessary, by all means seek the help of a professional financial planner and re plan your strategy to fulfil future goals.   At the end of the day, one just has the feeling that regardless of the actual rate, on a pure riskreturn basis, PPF will continue with its significance and efficacy in any investor's portfolio. The writer is director, Wonderland Consultants   Being market-linked, the public provident fund corpus can no longer be predicted over the long term         --------------------------------------------- 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

Implications of a mutual fund not paying dividend Posted: 09 Apr 2012 03:07 AM PDT Tax Saving Mutual Funds Online A COMMON problem that a lot of people face is how to handle the dividend received from mutual funds and the impact this would have on their finances. Investors worry whether the dividend should be reinvested or should be taken out and used elsewhere. When there is no dividend declared by a mutual fund, an investor could get worried. What does the entire situation mean for investors and how should they actually handle such a situation? Regularity in the past: The first thing that should be done in case there is no dividend declared by the mutual fund in the current year is to look at the regularity of the dividend declaration by the fund in the past. It could be that there is a specific time of the year when the fund regularly declares a dividend. The time period has to be seen on a longer term basis to establish that there is a specific period when the dividend is actually declared. There are times when the fund could be declaring multiple dividends during the year in equity-oriented funds and if this is the case, then there would be a one-time payout, which would be the regular time, with the rest of the declarations being additional ones, so the right time has to be focused on. Change with respect to the past: Once the regular dividend time is known and the history of the past several years is obtained, it is time to see how the present situation actually stacks up. There have been some market crisis in terms of negative returns in the past and due to this reason, there is also some history as to how funds have reacted during such tough times. If the fund actually follows the practice of holding back on the dividends when the times are tough, then this should not be any cause for worry. The present situation could actually rank in that category for the fund, and, hence, it may have decided to play safe for the moment and not declare dividends. This is something that has to be taken into consideration. In other situations, it could be that the dividend is delayed for some time when the times are tough or it could be a reduced figure, so a possibility of these occurrences should be reviewed. Fund position: The dividend that is declared by a fund is not something that comes out of mere workings or paper entries. Everything here is based on the performance of the fund, therefore, this is something that needs primary focus. The investor has to look at the kind of performance that the fund has actually generated and if this is strongly negative, then the expectation also needs to be aligned with the actual position. If there are no earnings, then it not going to be possible for the fund to actually declare dividends because this needs to be paid out of the gains that have been recorded by the fund. The position for the future also needs to be analysed so that the expectations are also controlled going forward. One cannot just expect dividends to flow in when the portfolio languishes due to poor performance of the equity markets. Therefore, there has to be an improvement in this area first after which there will be changes that will be witnessed down the line. Planning for this kind of `no dividend' situation will help an investor manage cash better and also reduce constant worries about 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

Taxability of Home Loans and Property Income post DTC Posted: 09 Apr 2012 02:29 AM PDT Tax Saving Mutual Funds Online   The implementation of the proposed Direct Taxes Code (DTC), which seeks to replace the current Income-Tax Act, 1961 (the Act), is expected in April. While there are speculations on whether this deadline would be met, it certainly is on the anvil. We will take a look at the provisions on taxability of house property income under the revised draft of DTC which was released in August 2010 (DTC 2010) vis-à-vis the current Act. Scope Of Income Under the current provisions of the Act, there is a perennial debate over the classification of rental income whether it should constitute as income from house property or as income from business when the renting is in nature of trade or business of the owner. This is not clearly specified in the Act and the interpretations have been based on judicial precedents. The DTC 2010 seems to clarify this by stipulating that income from house property let out in nature of trade, commerce or business is to be taxed as income from house property. Further, the DTC also clarifies that income from letting out of properties used as hospitals, hotels, convention centers, cold storages or forming part of special economic zones, which are taxable as business income, will not be taxed as house property income. Taxability Of Let-Out Property As per the current provisions, in case of let-out property, annual value (that is, reasonable expected rent) or actual rent per financial year (FY) whichever is higher is subject to tax. Where the actual rent of a let-out property is low in a FY due to vacancy during any part of the FY, annual value is restricted to actual rent. Under the DTC 2010, annual value is substituted by a concept of gross rent. Gross rent represents the amount of rent received or receivable from the property during the FY. Similar to the current law, where let-out property is vacant during any part of the FY, only gross rent for the period of occupation is to be considered. The DTC 2010 also specifies that the rent received in advance is to be included in the gross rent of the FY to which it relates while no such specific provision exists in the current Act. Under the current provisions, where property has been acquired under a housing loan, deduction towards actual interest outgo without any monetary limit is allowed, subject to certain conditions. The same is also allowed in the DTC 2010. In case of under-construction property, the deduction towards interest pertaining to the pre-construction/ pre-acquisition period continues to be split in five equal instalments beginning from the FY in which the property is constructed or acquired. Deemed To Be Let Out Property Presently, only one house can be considered as self-occupied and all subsequent houses owned by a taxpayer which may not actually be let out are taxed on a notional basis as "Deemed to be let out property (DLOP)". DLOPs are taxed in the same manner as actual let-out properties. Under the DTC 2010, the concept of DLOP is proposed to be discontinued. Accordingly, if a property is actually not let out during a FY, then it shall not be taxable. Also, no deductions shall be allowed against such property. This is in line with international practice of taxing real income vis-àvis notional income. Accordingly, in the above example, while Property 1 and 2 will continue to be subject to tax under DTC 2010, Property 3 will not be taxable and correspondingly no deduction will be available. Taxability Of Self Occupied Property Currently, with respect to one self-occupied property, the annual value is considered as "Nil". Further, a deduction towards interest paid on housing loan taken for such property is available up to a maximum of . 150,000 per FY resulting in a loss from house property. The DTC 2010, much to the respite of the taxpayers, also contains similar provisions with respect to gross rent and allows the deduction of . 150,000 per FY. However, the deduction is allowable from gross total income (GTI) and hence restricted to GTI, instead of being regarded as a loss from house property. Repayment Of Housing Loan Under the Act, deduction up to maximum . 100,000 per annum (as a part of other eligible investments under Section 80C of the Act) can be claimed from gross total income towards principal repayment of housing loan. However, under the DTC 2010, no tax deduction from the gross total income is available towards repayment of principal amount of a housing loan. Individuals who do not have other eligible investments such as provident fund contributions, life insurance premiums etc. would need to look for other avenues to invest to avail of maximum deductions. --------------------------------------------- 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

How to make Extra medical provision for parents Posted: 09 Apr 2012 01:46 AM PDT Tax Saving Mutual Funds Online Planning for parents' expected health problems can be quite a tough task. It is mainly because there is no assurance about the amount that one might require — a truism for any health problem at any age but with ageing people this risk is much higher. As a result, many of us face situations where we helplessly have to divert funds from our savings' kitty to fund an emergency. The expenses for a common disease today, even if you opt for a normal nursing home in metro cities, is almost a lakh. Hence, it is always advised you have medical insurance. This, not only is an easier way of funding medical needs, paying smaller premiums also saves you from eroding your savings for the future. But it may not be enough. With an insurance cover, you pass on the risk to another, by paying a premium. Most salaried individuals have a health cover from their employers. These covers sometimes are for their parents, too. But these days many companies are doing away with covering parents or are providing lesser cover / benefits for parents. This is because the cost of covering employees has risen sharply due to higher claims from their parents. If you have an employer provided health insurance, the most important thing is to estimate if the cover is sufficient for all the family members. Some, who do not get a cover for their parents from their employers, need to work towards setting a contingency fund to take care of such situations. This is a good substitute to a medical insurance policy. But again, it may not suffice a md may not be a replacement for a proper cover. This is so, because an elderly may require medical attention several times and in quick succession. The costs, consequently, can be rather steep. Moreover, when you save a part of your salary towards these expected expenses while taking care of other goals also, there is only so much you can save. But the patient could require much more. Therefore, there is just no alternative to an adequate medical cover for everyone. Fortunately, there are many options available. For one's parents, the options may be limited and an appropriate policy needs to be carefully chosen. What is it that one needs to look at when parents have to be covered? Coverage age: Check the age till which the policy covers the insured parents in this case. Is it till the age of 70 or 75 or 80 or is it lifelong. This is a very important parameter. If the policy terminates at 70 or 75, your parents will be required to be covered for the later years. And the chances of dipping into the emergency fund is also less. Of course, schemes for continuous renewal for life is a perfect situation. However, remember that the premiums are quite expensive in the later years. Claim history: Opt for an insurer with a good claim history, as you will not want hassles at the time of filing a claim. This is a very important aspect and needs to be given due importance. Entry age: Every policy has an entry age or the age till which one can buy the policy. Typically, it is capped at 65 years. Hence, this will determine if one is eligible to take a policy or not. Obviously, higher the age higher will be the premium and lower the coverage. Exclusions: Some policies exclude pre-existing diseases for life. Some cover after a mandatory exclusion period of two-four years. Policies, which have the least amount of exclusion or lower exclusion periods, should be preferred. Coverage amount: Some of the policies, especially meant for senior citizens limit the coverage to ~ 1.5 - 2 lakh. This would be a serious limitation given the medical costs today. Network hospitals: Are the network hospitals in a nearby vicinity? It will help if there is an emergency. Also, if there is a co-payment system, check what will be the percentage you need to shell out. Pre- and post-hospitalisation charge: Payments made towards expenses incurred on medicines, tests and so on, before and after hospitalisation, is covered by many policies. Also check the number of days that are covered. Some provide cover for 30 days pre-hospitalisation and up to 90 days later on. Co-payment: In the case of senior citizens, some insurers impose a compulsory copayment of 30 per cent for all claims and up to 50 per cent for pre-existing diseases, even after the mandatory waiting period. Sub-limits: There could be sub-limits up on certain expenses. The more onerous the limitation, more restricted benefits the policyholder will get. For instance, some policies impose a sub-limit of one per cent of sum assured on the room rent. So even if one has a sufficient cover, some portion of the expenses may have to be borne by the insured. Premium: Last, but not the least. While it is important to have a good policy for your parents to ensure your savings are not used up for medical costs, one has to look at the premium as well. Do proper research before buying cover. --------------------------------------------- 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

Principal Mutual Fund Posted: 09 Apr 2012 12:33 AM PDT Tax Saving Mutual Funds Online   Principal Mutual Fund has been functioning successfully with the principal goal of mobilizing savings from the public, providing investment expertise and achieving optimal returns to its members. The Fund was initially set up by Industrial Development Bank of India (IDBI) in 1994 and on March 31, 2000, Principal Financial Services Inc. USA became its sponsor. The Principal Financial Services Inc. USA thereafter became the sole sponsor by acquiring 100% stake in IDBI-PRINCIPAL Asset Management Company Limited. In May 2004, Principal admitted Punjab National Bank and Vijaya Bank into the venture. The Mutual Fund has been growing at an enviable rate and unfailingly rewarding its 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 Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Canara Robeco Infrastructure Posted: 08 Apr 2012 11:54 PM PDT Tax Saving Mutual Funds Online As indicated in the Budget, investment in roads, construction, power and other segments of the broad infrastructure sector is likely to go up. This would boost the performance of infrastructure funds, and in particular, Canara Robeco Infrastructure Canara Robeco Infrastructure Fund has been the best performer in its category. Its fund manager Soumendra Nath Lahiri joined in April last year. In this period the road sector has seen strong business activity. This boosted cement companies' business.The fund, which had increased its exposure to the sector benefited from this. At present, the fund has 20% exposure to the cement sector. This has helped the fund temper its decline as compared to its peers in the last one year. While its peer funds fell by 11.52% in the last one year, the fund fell by 2.5% --------------------------------------------- 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

DWS Twin Advantage & DWS Money Plus Advantage - Change in Fund Manager Posted: 08 Apr 2012 11:28 PM PDT Tax Saving Mutual Funds Online     Deutsche Mutual Fund has appointed Mr. Aniket Inamdar, currently Chief Investment Officer, as the fund manager of DWS Twin Advantage & DWS Money Plus Advantage with effect from March 30, 2012. He will manage the equity portion of these funds. So, Mr. Jignesh Barsara will cease to be the fund manager of these funds. ------------------------------------------- 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

KYC Registration Agency (KRA) Posted: 08 Apr 2012 10:41 PM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form   INVESTORS would soon be able to avoid repeated Know Your Client (KYC) procedures every time they register with a capital market intermediary. Market regulator Securities and Exchange Board of India (Sebi) has framed the guidelines for a KYC Registration Agency (KRA) that could see depositories setting up subsidiaries to function as registration entities. More than four months after it gave its go-ahead for KRA, Sebi has allowed stock exchanges, depositories or any other self-regulatory organisation (SRO) to form wholly owned subsidiaries that could be registered as a KRA. While exchanges are not expected to get into the KYC arena, there are hardly any SROs in the capital market segment. This leaves only the depositories, CDSL and NSDL, to launch operations as KRAs. At present, if an investor trades through brokerage 'A' and wants to open a new account with brokerage 'B', he will have to fill all the KYC forms again with the new brokerage. The fact that the old brokerage has already completed the KYC requirements becomes immaterial. Once a KRA is in place, intermediaries can use the existing KYC database of any individual. The move is also expected to reduce the overhead costs for brokerages that have to maintain back-office staff for carrying out KYC requirements. The role of a KRA will be to complete the KYC procedures for a client and make it available for all capital market intermediaries that avail of its services. If there is more than one KRA, then inter-operability will be put in place so as to avoid any kind of duplicity. The KRA will have to maintain a net worth of at least `25 crore on a continuous basis. According to the norms, any entity that applies to Sebi for recognition as a KRA will initially be granted registration for five years. After which, a permanent registration can be granted. Meanwhile, KRAs will have to retain the original KYC documents of the client, in both physical and electronic form, which would be inspected by the market regulator when required. The regulator can also inspect the books, records and infrastructure systems of a KRA to ensure the privacy of clients' data is maintained and not shared with any other agency/associates. --------------------------------------------- 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

Bharti Axa Life Power Kid Insurance Plan Posted: 08 Apr 2012 10:08 PM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form   The unit-linked insurance plan is designed to meet the future needs of your child. The parent will be life assured and the child will be the beneficiary. Features & Benefits There are two options — A and B. Option A comes with the benefit of an education allowance. 10% of the sum assured will be paid on every anniversary of the policy until the policy matures in case of the death of the life assured (parent) during the term of the policy. Child Development Allowance: 15% of the fund value will be paid out at the beginning of each of the last five policy years. This will be considered as a partial withdrawal from the fund. Premium Funding: If something unfortunate happens to parents during the policy term, insurer will pay the future premiums to keep the policy in force. Sum Assured: The sum assured will depend on the age of the life assured at the time of entering the plan. It will be 25 times the annual premium if you are aged between 21 and 34, and 20 times the annual premium if your age is between 35 and 40 years at the time of buying the plan. The policy also comes with an additional accident death benefit equal to the basic sum assured but limited to . 1 crore. An amount of . 1 lakh will be paid as emergency allowance in case of the death of the life assured subject to the policy being in force and premiums for two consecutive years having been paid. In case a claim is settled subsequently, the sum assured will get reduced by the emergency allowance paid. Secure Fund Transfer: To reduce the risk of market volatility, the fund will be moved to the 'safe money fund systematically during the last four policy years. Loyalty Addition: 1% of the average fund value of the preceding 36 months will be added to the fund value at the end of the 10th policy year and subsequently after every five years. Choice Of Investment Fund: You can choose from six investment funds and you can switch between them. 12 switches in a policy year are free. The policy also offer systematic transfer plan. Minimum Premium & Policy Term The minimum premium under the plan is . 26,000. There are two policy terms: 15 years and 20 years. Charges The premium allocation charge will be 8% in the first year and 5.5% from the second to the fifth policy year. There is no premium allocation charge from the sixth policy year. The administration charge will be . 90 per month, and will be increased by 5% every year. Fund management charges will range from 1% to 1.35% depending on the fund chosen. There are also mortality, accident death benefit and education allowance charges. This will push up the policy's cost. The death benefit — minimum of 20 times the sum assured — will serve the purpose of insurance and protection. Various charges under the plan make it an expensive policy. --------------------------------------------- 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

Bank FDs Posted: 08 Apr 2012 09:03 PM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form   Reserve Bank of India's (RBI) pause on the rate hike front has been a welcome move. But, if interest rates for advances were to fall, it is but obvious that deposit rates too will follow. Consequently, senior citizens are rushing to lock in their funds before high yielding bank fixed deposit (FD) schemes go off the shelf. However, if one prefers bank FDs, then he should focus on deposits, with a lock-in period of five years, that offer deduction under Sec 80C of the Income Tax Act. The nominal return of around nine per cent from a tax saving FD, seems low when you compare it with instruments that offer around 10.5-11 per cent per annum (p.a). Yet, the real effective rate is much higher. In case of individuals who fall in the 30 per cent tax bracket, the effective return is as high as 14.15 per cent p.a. This is primarily because of the tax deduction. Remember that the initial investment saves you tax. And since a penny saved is a penny earned, the saving in tax payable works akin to having invested that much lesser in the first place. For example, let us assume that an individual in the highest tax bracket, deposits Rs 1 lakh in a fixed deposit under section 80C. What this means is that because of his investment, his tax outgo will be lower by `30,000 ( `1lakh x 30 per cent). Or in other words, he will be receiving an interest of `9,000 (9 per cent of `1lakh) on an outlay of just 70,000 ( `1lakh – `30000). This, as the table shows, ups the effective return. It is assumed that a deposit of `1lakh made on 1 January 2012 will mature after five years (31.12.16) and earn an annual interest of 9 per cent. This is very similar to National Savings Certificate (NSC VIII) as far as the structure is concerned. In case of NSC VIII the interest accumulates and is not paid to the investor every year. The interest that accumulates is treated as invested in NSC VIII. Hence it qualifies for an exemption under Section 80C for the first five years. In the last year, the interest is handed over to the investor and does not qualify for a deduction and therefore is taxable. Tax experts are of the view that if the investor opts for a reinvestment of interest option in case of fixed deposits, the accumulated interest should also be eligible for a tax deduction under Section 80C as it is in case of NSC VIII. However, since there is no clarification from the tax authorities on this issue, in the example, the interest is treated as fully taxable. An initial investment of 70,000 (as explained earlier), grows to an after-tax 1,35,727. Consequently, the effective return works out to be 14.15 per cent p.a for those in the 30 per cent tax slab. For those in the 10 and 20 per cent tax slab, the return works out to be 16.08 p.a. and 15.12 per cent p.a respectively. These numbers should make even those investors who reject fixed income investments for potentially higher returning equity oriented products sit up and take notice. Because, this is like saving tax and getting paid for it. With a dearth of good fixed income avenues, the tax saving FD offers a high effective rate. However, this window will be open only until the Direct Tax Code (DTC) is introduced. Scheduled to be operational with effect from April 2012, chances are it will be postponed. Under the DTC, the Exempt Exempt Taxed (EET) system of taxation would be applicable. It is a tax system where an investment and interest, in a tax saving plan is deductible from income but the maturity amount is taxable. The tax saving FD has an effective rate since the tax deduction is available on the invested amount and the amount on maturity is completely tax-free. Under EET, the maturity amount will be taxable rendering the effective rate equal to the coupon rate of 9 per cent (post tax 6.3 per cent p.a.)  However, for investments made before the advent of DTC, the maturity amount will continue to be tax-free even in the DTC regime. So do make hay when the sun shines. --------------------------------------------- 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

LIC Jeevan Ankur Posted: 08 Apr 2012 08:00 PM PDT Tax Saving Mutual Funds Online Current open Infra Bond Application form   LIC Jeevan Ankur is predominantly a policy meant to provide financial aid to the child in the unfortunate event of the death of the earning parent. Thus, while the policy covers the life of the parent, the term of the policy is designed to coincide with the age of the child. The maximum policy term under is this plan is capped to the period when the child attains 25 years of age. For example, if the parent buys this policy when the nominee child is 2 years old, the maximum policy term allowable will be 23 years. Key Features The main highlight of Jeevan Ankur is the kind of death benefit that it provides. In the event of death of the policyholder during the policy term, an amount equivalent to the basic sum assured is paid immediately to the nominee. Thereafter, an income benefit equal to 10% of the sum assured is payable to the nominee each year until the end of the policy term. On maturity, the entire amount of sum assured is once again payable to the nominee. LIC Jeevan Ankur scores well on the death benefit. The scheme has been structured to meet not only the immediate, but also regular financial needs of a child like education. A regular income of 10% of sum assured is provided each year in the event of the death of the earning parent. In case the policyholder dies within a few years of taking the policy, the total amount payable to the nominee through the policy term can turn out to be more than four times the amount of the basic sum assured. This payout will vary depending on the policy term and the date of the death of the policyholder. This impressive feature, however, comes at a price. The premiums are high, especially when compared with those of pure term plans (even after taking into account four times the sum assured under this plan). Jeevan Ankur is thus meant for those seeking a hassle free and systematic arrangement to take care of all the financial needs of their growing children. Policy Benefits If we assume the age of the policyholder to be 30 years and the age of the nominated child to be 2 years, the policy and premium paying term would work out to 23 years --------------------------------------------- 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

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