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| Indian Mutual Fund FMPs Turn Out a Big thing for Overseas Investors Posted: 27 Nov 2012 03:42 AM PST Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)
Indian Mutual Fund FMPs Turn Out a Big Draw for Overseas Investors
Attractive returns, as high as 9.75% in some cases, and safety from currency fluctuations are main draw
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- 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 ) 1.ICICI Prudential Tax PlanInvest Online 2.HDFC TaxSaver Invest Online 3.DSP BlackRock Tax Saver Fund Invest Online 4.Reliance Tax Saver (ELSS) Fund Invest Online 5.Birla Sun Life Tax Relief '96 Invest Online 6.IDFC Tax Advantage (ELSS) Fund Invest Online 7.SBI Magnum Tax Gain Scheme 1993 Invest Online 8.Sundaram Tax Saver Invest Online Best Performing Mutual Funds
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| Non convertible debentures (NCDs) Posted: 27 Nov 2012 02:33 AM PST Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)
NCDs offer high returns with moderate risks while offering investors the flexibility to choose between short and long tenures.
With the equity markets in a flux, investors are increasingly flocking towards the fixed income segment. This is because debt instruments seem to be a safer option in such times.
Making the most of this trend, a number of companies are offering non convertible debentures (NCDs) to mop up funds from the market. NCD is a security that has loans as its underlying assets. It cannot be converted into a stock at the end of its tenure and usually carries a rate of interest that is considerably higher than a convertible debenture.
In the past couple of months, a host of companies (most of which were non-banking financial companies or NBFCs) such as Shriram Transport Finance , Shriram City Union Finance , India Infoline Finance and Religare Finvest have mopped up more than Rs 2,000 crore from investors.
Two more NCDs - one from Muthoot Finance, an NBFC company that doles out gold loans and Kolkata-based Srei Infrastructure Finance are currently open for subscription and plan to raise another Rs 650 crore.
Simplifying NCDs
The DNA of an NCD is that of a corporate bond. This means the company raises money from you and you in return earn regular interest as income against your investment.
These NCDs are listed on the stock exchange, which means you are free to trade in it like any other secondary market instrument. As an investor it is your choice to either accumulate more debentures or sell them before their maturity. The price of an NCD will depend mainly on interest rates.
Though it is a debenture, unlike other debentures you cannot convert it into equity at the end of its tenure. There are two types of NCDs that can be on offer. You can have a secured NCD or an unsecured NCD. Secured NCDs, as is evident from the name itself, is an instrument that has underlying assets that can be liquidated to repay holders of this security in case there is a problem.
An unsecured NCD on the other hand is a financial instrument that does not offer any such guarantee. Therefore, if something goes wrong, then the investor will not get back the investment. Understandably, this is a kind of instrument that carries a higher rate of interest.
What to look out for
Interest rates may be the biggest incentive that draws an investor towards NCDs. However, as an investor there are certain things he/she needs to watch out for while opting for NCDs.
First and foremost the investor must look at the financial strength of the company. But looking at the profitability of the company is not enough. The investor should also check other factors such as sources of revenue of the company and whether the company has a diverse portfolio or it is majorly dependent on just one source. Since it is mostly NBFCs that are issuing NCDs now, also look out for the asset quality of the NBFC.
The asset quality of the company may be judged from its level of non-performing assets or NPAs. This is particularly relevant in case of gold loan NBFCs or companies that have a high exposure to sectors such as real estate, which is subject to volatility.
The credit quality of the company issuing an NCD may also be judged from the ratings it receives from credit rating agencies such as ICRA, CRISIL or CARE. All NCDs are assigned a rating before they make a debut and you can be assured of the safety or credibility of the company and even a guarantee of the rate of interest if the NCD has received a high rating from such rating agencies.
Are NCDs the right thing for you?
For those who are in the lower tax bracket and want to earn or are looking for an opportunity to diversify their debt portfolio, NCDs are a good choice. However, financial advisors advise their clients to tread carefully where NCDs are concerned. This is because there are a large number of NBFCs that are making a beeline to raise money from NCDs and their underlying assets have always been a cause of concern in the financial world.
Adequate amount of research needs to be done before choosing an NCD, say experts. And the NCD should not exceed more than 10% to 15% of their overall exposure to debt.
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- 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 ) 1.ICICI Prudential Tax PlanInvest Online 2.HDFC TaxSaver Invest Online 3.DSP BlackRock Tax Saver Fund Invest Online 4.Reliance Tax Saver (ELSS) Fund Invest Online 5.Birla Sun Life Tax Relief '96 Invest Online 6.IDFC Tax Advantage (ELSS) Fund Invest Online 7.SBI Magnum Tax Gain Scheme 1993 Invest Online 8.Sundaram Tax Saver Invest Online Best Performing Mutual Funds
Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now  |
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