Prajna Capital

---

• Choose mutual funds for investing based on your life stage and goal needs
• Get Personal loan at a lower interest rate
• How to save tax by investing in Bank FD?
• Star Health Insurance - Family Health Optima
• ICICI Prudential FMCG
• For Life Insurance Cover opt for Term Plans
• Cash Back Credit Cards

Choose mutual funds for investing based on your life stage and goal needs Posted: 21 May 2012 04:24 AM PDT Invest Mutual Funds Online Download Mutual Fund Application Forms AT LAST count, there were about 1,300-odd mutual fund products in India. For any new investor wanting to invest in mutual funds, the number of funds available to choose from may be baffling. The types of mutual funds are also large and meet different investment needs and profiles. How can one choose the right mutual fund product? Mutual funds are broadly classified into debt funds, equity funds and balanced funds. In equity funds, a majority of the funds collected is invested in stocks. Debt funds invest your money in debt products like bonds or debentures, while balanced funds invest in a mix of both debt and equity instruments. Mutual funds based on investment objective: Based on the investment objective of an individual, mutual funds are classified into growth funds, income funds and money market funds. There are also equity-linked savings schemes (ELSS) that provide tax benefits and exchange-traded funds. Know your fund manager: One of the most popular advice given to a first-time investor is to check the past performance of the fund manager. But, that alone will not help, experts say. One should not blindly invest in a product because the fund house is well established or the fund manager handling the fund has been very successful. Big fund houses do not always come out with great products and fund managers may move out. The investor should ideally invest in an existing, well-performing fund, rather than a new fund where the performance is uncertain. New funds are not cheaper: It is a misconception that it is cheaper to invest at the start of a fund when the net asset value (NAV) is Rs 10. There is no difference between holding 10 units of 1 gm gold coins or one unit of a 10 gm gold coin. The returns will be the same for both based on price appreciation. Even if the NAV of a fund has increased, one can invest since the returns you get are the same. How often should investors check NAV: Once in a quarter is an appropriate time to check NAV. If a decision on changing or liquidating a fund is to be taken, the investor should ideally wait for at least a year's performance of the fund. Investing in debt funds directly or through mutual funds: Since many debt instruments like tax-free bonds, tax-saving bonds or non-convertible debentures are also open to retail investors for investment, why should the investments be done through a debt route? When investing in bonds or debentures directly, the investor has to stay put through the entire lock-in period of three years or five years. When investing in debt products through the mutual fund route, the investor can liquidate as and when he requires funds. Additionally, the investor gets to spread his investments in a variety of products that minimises risk and maximises investments. Avoid equity mutual funds after crossing 50 years of age: Post 50 years of age, one has to look at safer returns and shorter exits in investments. Equity mutual funds are long-term investment products and returns are variable and are not appropriate for those above 50 years. ------------------------------------------ Invest Mutual Funds Online Transact Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms   Some of the Top performing Mutual Funds are HDFC Top 200 Fund ICICI Prudential Dynamic Plan DSP BlackRock Top 100 Fund Birla Sun Life Front Line Equity Fund Reliance Equity Opportunities Fund IDFC Premier Equity Fund SBI Magnum Contra Fund Sundaram Select Midcap UTI Dividend Yield Fund Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Get Personal loan at a lower interest rate Posted: 21 May 2012 04:00 AM PDT Invest Mutual Funds Online Download Mutual Fund Application Forms WHENEVER there are big expenses to be met in life, like making a down payment for new home, paying fees for higher education or a wedding in the family, a personal loan comes in handy. But getting a personal loan has become more difficult now because banks are very choosy about the borrowers to whom they lend these unsecured loans. Here is what you must remember when taking a personal loan. High interest rates: The interest rates on personal loans are one of the highest, ranging between 14-21 per cent. Additionally, many banks charge a processing fee of 1-3 per cent of the loan amount. Even if you wish to prepay your personal loan, you would have to pay prepayment charges of 2.5-4 per cent of the outstanding loan amount. Rate of interest in personal loans is a matter of negotiation and how the lender perceives your credit profile. If you have a good track record of repaying your other loans on time, you could bargain for a cheaper rate of interest. Contact your existing banker: The easiest way to get a personal loan is to check with your existing banker, whether it is the bank with which you have your salary account or the bank with which you have taken your home or car loan. This way, the formalities like getting a guarantor for your loan or the income verification process can be skipped. In fact, many banks do not give you a personal loan unless you have an account with them, or, have already borrowed with them and have a proper repayment record of over six months. How much can you borrow? The size of the loan that you are eligible for would depend on your ability to repay. According to the loans comparison portal, deal4loans.com, your EMI should not exceed 30-40 per cent of your net salary or two-three times of your income tax returns. The interest rate that you get would also depend on the company that you work for. Those working for large, renowned companies could get a lower interest rate on their loans because they are less likely to shift jobs, and, hence, less likely to default.   Personal loans or gold loans? Gold loans increasingly have emerged as a great alternative to personal loans since they are much faster to get, have lower interest rates and the gold in many cases would only be an idle asset lying at home and it could be put to better use for raising money. But now, with the new regulatory changes you may not be able to get huge sums of money with a gold loan. The Reserve Bank of India has restricted the value of loans that can be raised to 60 per cent of the value of gold. So if you are pledging gold worth Rs 2,00,000 you would be able to get a loan of just Rs 1,20,000. The number of credit cards and personal loans that the person has taken can have an impact on the credit score of an individual. More number of loan applications show the credit hungry behaviour of the individual and it will be viewed with caution by a lender, the next time he seeks a loan. ------------------------------------------ Invest Mutual Funds Online Transact Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms   Best Performing Mutual Funds Largecap Funds: DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds DSP BlackRock MicroCap Fund Sector Funds Reliance Banking Fund Reliance Banking Fund Gold Mutual Funds Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund   Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

How to save tax by investing in Bank FD? Posted: 21 May 2012 01:28 AM PDT Invest Mutual Funds Online Transact Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms   Best Performing Mutual Funds Largecap Funds: DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds DSP BlackRock MicroCap Fund Sector Funds Reliance Banking Fund Reliance Banking Fund Gold Mutual Funds Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to five years and above. Investor gets a lump sum (principal + interest) at the maturity of the deposit. The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income. However interest received on the FD is taxable. Summary of 5 Yr Bank FD Details Return (p.a.) Typical interest rate is 8.00 to 8.50% with an additional 0.25 to 0.5% for senior citizens. The interest rate varies between banks and with time. Risk NIL Lock In 5 years Income from Investment Interest received is taxable Maturity Proceeds Includes interest which is already taxed NRI/PIO eligible Yes Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

Star Health Insurance - Family Health Optima Posted: 21 May 2012 12:30 AM PDT Invest Mutual Funds Online Download Mutual Fund Application Forms Buy Gold Mutual Funds Family Health Optima from Star Health Insurance The auto restoration of sum insured is applicable only for a sum insured of Rs 3 lakh and above THE PRODUCT: Family Health Optima is a family health insurance policy, which provides coverage for the entire family on the payment of a single premium and single sum insured. WHO CAN BUY THE PRODUCT: Married individuals with one or more dependent children. WHAT IT PROMISES: Hospitalisation cover, including room rent, fees for nursing, surgeons, anesthetists and consultants and emergency ambulance services up to a sum of Rs 750, with an overall limit of Rs 1,500. WHAT IS SPECIAL: The highlight of the product is the auto restoration of the sum insured. If the sum insured in the policy has been exhausted by various claims and new medical expenses crop up, the policy allows the sum insured to be doubled at no additional cost. The doubled sum insured, however, can be used only for illnesses or diseases unrelated to conditions for which claims were made earlier. Also, the auto restoration of sum insured is applicable only for a sum insured of Rs 3 lakh and above. of age People above 45 years would be required to undergo pre-acceptance medical screening, but, the cost would be borne by the company. WHAT ARE THE EXCLUSIONS? Conditions like cataract, hysterectomy and knee-joint treatments are excluded in the first two years, while hernia, hydrocele, piles, sinusitis and gall stone/renal stone treatments are excluded in the first year alone. WHAT YOU SHOULD NOTE: The policy does not cover any daycare procedure. The hospitalisation limit is not applicable for 101 daycare procedures. Additionally, the premiums also differ across different cities. The premium amount to be paid by those in Mumbai, Delhi and Gujarat is 5-8 per cent higher than those paid by people in other regions for the same level of coverage. Any family member with one or more children could consider this policy. The auto restoration of sum insured at no additional cost may appear very attractive. But, one should remember that the cost of the auto restoration facility has been factored in while pricing the premium of the policy. Depending on the probability of the need for restoration of sum insured, one could consider this policy. Also, the dependents who can be covered by this family policy includes only dependent children and not parents of individuals who are more prone to medical conditions and treatments due to advancing age. -------------------------------------------- Invest Mutual Funds Online Transact Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms   Some of the Top performing Mutual Funds are HDFC Top 200 Fund ICICI Prudential Dynamic Plan DSP BlackRock Top 100 Fund Birla Sun Life Front Line Equity Fund Reliance Equity Opportunities Fund IDFC Premier Equity Fund SBI Magnum Contra Fund Sundaram Select Midcap UTI Dividend Yield Fund Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

ICICI Prudential FMCG Posted: 20 May 2012 11:50 PM PDT Invest Mutual Funds Online Download Mutual Fund Application Forms ICICI Prudential FMCG's sector-specific focus has very been fruitful over the past few years. But being a pure sectoral fund increases the danger of losing out on opportunities that may emerge in other segments in the future   Being a sectoral fund, ICICI Prudential FMCG is high on risk. But what adds to the risk is that its portfolio is far too concentrated, even with respect to its benchmark index. The scheme has invested in only nine stocks, which it has been holding for some time now. The portfolio concentration is the outcome of the fund managers' call to avoid investing in discretionary stocks of the sector and rather concentrate on consumer staples.   With this strategy finding favour with the markets, especially in the past couple of years, this scheme has turned out to be the highest return generator in the equity mutual fund category, surpassing even returns of Gold ETFs over the past one, two and three year periods. But having said this, the concentrated exposure makes the scheme vulnerable to unforeseen events of the stock market. The scheme's performance is thus likely to be subdued, if say, the industrial cycle were to pick up. ------------------------------------------- Invest Mutual Funds Online Transact Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms   Best Performing Mutual Funds Largecap Funds: DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds DSP BlackRock MicroCap Fund Sector Funds Reliance Banking Fund Reliance Banking Fund Gold Mutual Funds Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund   Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications

For Life Insurance Cover opt for Term Plans Posted: 20 May 2012 10:09 PM PDT Invest Mutual Funds Online Download Mutual Fund Application Forms Buy Gold Mutual Funds The no-frills term plans that provide only a basic life cover are the cheapest insurance products available in the market. As term plans take care of the financial needs of the nominee in the event of the death of the policyholder and do not yield any maturity gains if the policyholder survives till the end of the policy term, these are not very popular with the investors who seek not only insurance, but also returns from the insurance investment. These investors, however, fail to understand that if they were to consider insurance as a cost to provide cover to one's life and not as an investment, the yields may turn out to be far better. Insurance cum savings products like unit linked, endowment or money-back plans etc. provide both insurance and investment under a single basket, but at a cost in the form of hefty premiums. Moreover, if one were to analyse the kind of returns that these schemes generate at the end of the policy term, they will turn out to be meager when compared with the returns one could otherwise generate by investing a similar sum of money in products like public provident funds, tax-free bonds or mutual funds. As far as the cover for life is concerned, a simple term plan can provide the same at bare minimum premiums, as illustrated in the table. Interestingly, the premiums charged by private players are far more lucrative than those charged by the biggest insurance player in the industry — LIC, which is one of the costliest term insurance providers. It is also interesting to note that the premiums charged by private players have nose-dived as more and more companies are now trying to reach out to their investors directly bypassing the distributor network through online purchase of term plans. The premiums charged by an online plan are almost half of what are otherwise charged through the distributor route. Insuring one's life for the sake of our loved ones could not be more simple and cheap that this. -------------------------------------------- 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

Cash Back Credit Cards Posted: 20 May 2012 07:47 PM PDT Invest Mutual Funds Online Download Mutual Fund Application Forms Buy Gold Mutual Funds In these inflationary times, small discounts on bills matter a lot. Bankers realise this and take the opportunity to push a credit card in your hands – a credit card that gives you cash back. The proposition is very simple, every time you pay a bill, say your electricity bill, using the cash back credit card, you are eligible for a cash back. Assume you have paid . 2,000 towards electricity bill and the bank offers you a 5% cash back. In that case, your monthly credit card statement will ask you to pay . 1,900 only. Though the opportunity to save on your bills using a credit card is rather attractive, it's better to know the details: Cash Back Item List Some banks offer cash back on utility bills whereas some offer cash back only on discretionary spends such as — three-star rated and above restaurant bills. Always check if the service provider is empanelled with the bank for the cash back credit card programme. Even under utility bills, check if the banks have empanelled the utility service providers you are paying to. For example, your internet service provider or DTH service provider need not necessarily be a 'utility service provider' for your bank as far as the cash back credit card is concerned. Limits And Sub Limits Many banks introduce a limit in rupee terms, say . 2,500, as to how much cash back one can get in a month. Then there are sub limits like no single transaction can get cash back of more than a particular amount, say . 500. Eligibility Of Transactions Banks can also prescribe a minimum transaction value, say . 500, to get cash back. If you pay a bill of . 350, you won't be eligible for cash back on that transaction. Some banks can introduce varying minimum transaction value for different categories, such as utility bills and bills at retail outlets. Charges Cash back credit cards may have a joining fee and an annual fee. Some banks waive such fees, subject to conditions such as using the card at regular intervals or spending a minimum amount in a year, say . 25,000. Also check the interest rate at which the banks are offering you credit, if in case you cannot pay on due date, that should not be a burden. Though the idea of saving on your bills is good, never over spend to ensure that you remain in good financial health.     --------------------------------------------- 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

You are subscribed to email updates from Prajna Capital - An Investment Guide To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610