Tuesday, January 22, 2013

Prajna Capital

Prajna Capital


Mutual Fund FMP Tax Structures

Posted: 22 Jan 2013 03:57 AM PST


Fixed maturity plans (FMPs) don't levy any securities transaction tax (STT). However, capital gains tax will be liable on the earnings from any FMP of 366 days or more. As far as dividend distribution tax (DDT) is concerned, FMPs have to pay that to the tune of 11.9 per cent.

 

The growth option of an FMP would be better for someone in the highest tax bracket, because gains that are over a year old will considered as capital gains and won't be added to your taxable income. Hence, your tax liability will be lesser if you go for the growth option.

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
  9. Edelweiss ELSS Invest Online

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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 Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap FundsInvest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap FundsInvest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap FundsInvest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap FundsInvest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector FundsInvest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

BNP Paribas Mutual Fund

Posted: 22 Jan 2013 03:14 AM PST

BNP Paribas Mutual Fund

 

Till 2004, this AMC used to be known as ABN Amro Mutual fund. In 2007, a consortium, including Fortis Investments, bought into ABN Amro resulting in the AMC changing its name to Fortis Mutual Fund. To complicate matters further for this AMC, global financial realignments lead to Fortis being bought by BNP Paribas in 2009. BNP Paribas was already present in India through a joint venture with Sundaram Asset Management. It had to either sell Fortis Mutual fund's India operations or merge the same into itself. BNP Paribas exited the joint venture with Sundaram and the Fortis AMC was renamed BNP Paribas.

 

The impact of such changes, including the fund management team, has been multi-pronged, with the inability of the management to steer the operations. Despite several changes, the AMC has a fair mix of funds in its stable, though the tilt is towards debt schemes. On the performance front it has been a mixed bag with some badly faring funds along with some good ones.


With BNP Paribas now taking over the reins, it brings with itself a ray of hope, which should also lend stability to the fund offerings.
 

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

 

 

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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 Plan  Invest 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
  9. Edelweiss ELSS Invest Online

 

Debt Mutual Funds Will See Capital Gains on RBI Rate Cut

Posted: 22 Jan 2013 02:43 AM PST

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Call 0 94 8300 8300 (India)

 

A lower interest regime will allow investors of these schemes to gain from rising NAVs



In India, mutual fund investors are aware of equity schemes that invest a major part of the corpus in stocks. In comparison, awareness about debt funds — which invest in government securities, bonds, money market instruments, etc — is less.


Even then, there are quite a few investors who put their money in these schemes, which work like a substitute for bank fixed deposits as they score more in terms of tax efficiency. As a debt scheme investor aiming to earn a steady stream of income, you also need to be aware of another aspect of these funds: The price appreciation of debt instruments in your scheme's portfolio.


In debt instruments like bonds, the price and yield are inversely related, that is when prices go up, the yields of the bonds go down, and vice versa (for a better understanding of this


Given the current situation in the economy, there is a strong expectation that the rate of interest would come down over the next few months. If that happens, your debt funds
would see capital appreciation in their portfolio. This, in turn, would also lead to a rise in the net asset values (NAVs) of your schemes. Usually, it is observed in the debt market that the longer the tenure of an instrument, the higher its price sensitivity to interest rate fluctuations, and vice versa. So, if interest rates in the economy are expected to fall, the fund manager would usually buy bonds with a longer tenure and sell the ones with shorter tenure.


Based on the interest rate scenario, the fund manager decides whether he should invest in long duration papers, with maturity of over 10 years, or short duration papers with maturity of around six months or so.


But his decision simply depends on the interest rate scenario. When the interest rate is expected to go up, the debt fund manager would invest in shorter duration papers, but if the rate of interest is expected to come down, he will invest in longer duration papers.


Interest rates usually go up when the Reserve Bank of India (RBI) hikes key policy rates like repo and reverse repo rates (repo rate is the rate of interest at which banks borrow money from RBI, and reverse repo rate is the rate of interest that these banks get when they keep money with the central bank), while a cut in these rates by the central bank leads to a decline in the rate of interest.


In its policy review meeting later in the day, there is a 50-50 chance that RBI will cut key policy rates to signal a lower rate in the economy. If that happens, the prices of bonds would rise, leading to a fall in yields from those debt papers.


The chance of a decline in interest rate in the near future also presents investors with opportunities to go for higher accrual and the potential for locking in yields at current levels, says a fund manager. It also gives investors the potential for capital appreciation once the interest rate starts falling, the fund manager adds.


Another important aspect you should be aware of as a debt fund investor is the credit ratings of the instruments that are in your fund's portfolio. The simple rule of the game is that for higher rated instruments that carry lower risks the rate of interest is lower than those instruments that have a lower credit rating (and carry higher risks).


Now, if for some reason the credit rating of an instrument goes up, people rush to buy that instrument, the price goes up and the yield goes down.


The reverse happens if the credit rating for an instrument is downgraded. Often fund managers also take a view on the ratings of debt instruments and try to get a higher return in their funds.

 

If you want to invest in debt funds for twothree years, you can opt for long-term income and gilt funds to gain from capital appreciation when interest rates start falling and bond prices go up. And if you are looking to invest for an even longer duration, then you should gradually increase your allocation of funds in open-ended bond funds instead of getting locked in FMPs

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
  9. Edelweiss ELSS Invest Online

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

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

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