Prajna Capital

---

• Track your Mutual Fund SIPs
• 5 points to consider for NRIs buying life insurance in India
• ICICI Prudential dividend

Track your Mutual Fund SIPs Posted: 22 Feb 2013 04:06 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Five years is a fairly long time. During this period, you could climb a few rungs of the corporate ladder, upgrade from a hatchback to a luxury sedan or move into a bigger apartment. You could even generate substantial wealth by investing intelligently. However, as the past five years have shown, your investments could also earn absolutely nothing. Had you invested in a large-cap equity mutual fund at the beginning of 2008, your money would be worth roughly the same, or even less, today. Meanwhile, inflation has galloped at 8-10% per annum. Some of those who had entered in early 2008, when the market had peaked, hung on to their investments, waiting patiently for their funds' NAV to recover. They got their chance when the market touched an all-time high in November 2010, only to slide down in 2011. When the market recovered in 2012, many mutual fund investors redeemed their investments. Now that the indices are again at higher levels, many more small investors will be anxious to head for the exit. According to Computer Age Management Services (CAMS), nearly 11.5 lakh SIPs in equity funds have been terminated in the past year and another 4.93 lakh were not renewed. Although the SIP cancellations continued throughout the year, they gathered steam after the Sensex broke out decisively above the 17,000 level in August 2012. Today, the Sensex is hovering close to the 20,000 mark, which means that many small investors have lost out on an opportunity to create wealth. Why stick to your SIP As mentioned earlier, the investors who entered the equity market at the peak in early 2008 have hardly made any money. Many of those who invested lump sums are either sitting on losses or have barely recovered their principal. The SIP investors, however, have a different story to tell. Their investments have earned handsome returns. The Quantum Long Term Equity fund has been the best performing large- and mid-cap equity fund in the past five years. If you had invested 3 lakh in it at one go on 1 January 2008, your investment would have grown to 4.35 lakh, a return of 7.72%. However, if you had invested through monthly SIPs of 5,000, the value of your investment would be higher at 4.76 lakh, a return of 17.16%. Stopping your SIP when the market is doing badly is perhaps the worst investing decision you can make. If you invest when the market is subdued, your SIP will buy more units because the prices are low. By terminating your SIP, you forfeit the opportunity to buy low. Over time, the purchase cost per unit is averaged out, which reduces the risk of investing a large amount at the wrong time and at a high price. However, SIPs are not a panacea for all stock-related risks. They only inculcate investing discipline and take away emotions from investing. SIPs may not always work in your favour. In some market conditions, lumpsum investments score over a staggered strategy. Even so, investors must remember that lump-sum investment is not an option that everyone has. For the small investor, who earns an income in monthly intervals, a lump-sum payment is not possible. Managing your SIP Initiation: Starting an SIP in a mutual fund is not complicated. It is even simpler if you are an existing investor. All you have to do is fill up the SIP form and give an ECS mandate to your bank to start the monthly payment. An SIP mandate takes time to start and you will have to pay the first instalment by cheque. If you are a new investor, you will have to fulfill the KYC formalities as well. Be sure to mention the desired tenure of the SIP investment in the application form. Termination: If you want to discontinue your SIP, you will have to intimate your decision to both the fund company as well as your bank. You need to fill up a form, mentioning your folio number, bank account details, scheme name, SIP amount a n d the date from which the plan has to be stopped, and submit it to the fund house. If you want to stop the SIP temporarily, you can give a stop payment instruction to the bank for that period. However, keep in mind that if the SIP is stopped for more than two months, the fund house will terminate the SIP. Renewal: If your SIP is nearing the end of its tenure, you have the option of extending it for a specified period of time. You will simply need to give details of the bank account from which the SIP instalment has to be debited and give a fresh ECS mandate to the bank. To ensure that there is no break, send the renewal instruction at least 30 working days before the last date. If the existing SIP expires, the renewal can be done by quoting the same folio number. Monitor your SIP Starting a SIP investment is only half the work done. Although an SIP should be for a long period to harness its full potential, don't continue with it indefinitely without checking on its performance. An SIP should not be taken as a 'fire and forget' investment. One needs to keep track and review periodically to ensure the realisation of goals.   While monitoring the fund, compare its performance over different time frames with other schemes in the same category. Only if the fund consistently underperforms the category should you consider switching over to another scheme. If the chosen vehicle is underperforming, shift to another, but stay committed to the market. Also, keep an eye out for any undesirable change in the fundamental attributes of your scheme, such as a rise in the expense ratio, revision in the investment mandate, investment style or changes in its stewardship. In this way, you can keep a watchful eye on how your SIP investments are faring without getting worked up over the direction the broader market is taking. One should have a clear time horizon in mind while investing in the equity market. Do not bother about intermittent volatility. If you give in to the market's mood swings and exit your SIP midway, you will not gain from the low prices. Remember, the stock market rewards those who are patient. 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

5 points to consider for NRIs buying life insurance in India Posted: 22 Feb 2013 03:10 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   LIFE insurance is undoubtedly the most attractive long-term savings and protection option today. While it has traditionally been among the favourite investment options in India for non-resident Indians (NRIs), high economic growth in India combined with customer-friendly regulatory atmosphere in the insurance space has significantly upped the ante. With every passing year, more and more NRIs and persons of Indian origin (PIO) are buying life insurance products in India.   However, non-residents by virtue of their being separated in space and time from fast evolving local realities need to bear in mind the following aspects while investing into this lucrative space. Are you eligible? NRIs and PIO are allowed to buy life insurance in India, subject to fulfillment of certain conditions. While NRI refers to an Indian national resident abroad for certain duration, PIO refers to a foreign national with an Indian root and this definition is important. FEMA notification No. 5/RB-2000 defines a PIO to mean a citizen of any country other than Bangladesh or Pakistan, if:   (a) the individual has at any time held Indian passport; (b) the individual or either parents or grand-parents were a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in clauses a or b. Eligibility can also be based on age. Most insurance policies have a ceiling on the entry age and it is vital to know this to avoid being mis-sold to. Besides, if one has already reached the maximum insurance limit, which is calculated as a factor of net worth, one may not be eligible to buy additional insurance. Select a product that suits your needs: Once you are eligible, the next step is to select a product. Depending on your investment objectives and risk appetite, you could select from traditional products, unit-linked insurance products (Ulips) or term plans. Each of these product categories fulfills different customer needs and requirements. Ulips: In Ulips, individuals professionally manage exposure to equity, which, as an asset class, offers the highest return. They are normally opted by more aware investors, willing to take calculated risks. Ulips offer a choice of funds to choose from based on one's investment needs and risk appetite. However, since they invest in market instruments, the risks they hold are higher. Traditional plans: Investors with conservative risk profiles could choose traditional plans. Traditional plans are feature-based products that normally have a larger insurance component than Ulips. They provide higher death benefits and conservative growth of investments over the policy term. In these plans, it is the insurer who, as per relevant regulations, makes the investment choices, which in the past have predominantly been in debt instruments. Term plans: Investors seeking only pro tection could opt for pure term plans. Since there is no investment component, these are comparatively inexpensive and offer higher covers for lower premiums. Know the rules and regulations: Purchase and payments: Insurance companies are allowed to issue policies denominated in either Indian rupees or foreign currency to non-residents. If the policy is foreign currency-denominated, the premiums are to be collected in foreign currency from abroad or out of NRE/FCNR accounts of the insured or insured's family members in India. For rupee denominated policies issued to NRIs, funds held in NRO accounts are to be used to pay premiums. While one can purchase a policy from abroad, almost all insurers stipulate a medical examination of the insured for underwriting purposes. Insurance companies bear this expense if the examination is undertaken in India. Non-residents have the option to do it overseas and send the report to the insurance company in India. Some insurers have also introduced non-medical policies, whereby, a medical test is not mandatory, but the higher risk assumed on books results in loading of premiums. Taxation: NRIs are advised to take into consideration tax laws in force both in India and the location where they are resident of before buying a policy. Check for tax implications at all three stages of policy life cycle ­ investment, accumulation and maturity. While current tax laws in India exempt all three stages from tax, it could be different in your location. At present, maturity or death proceeds are repatriable to the extent of premium paid in foreign currency in relation to the total premium paid. Select the right insurance company: There are over 23 life insurance companies offering a wide range of products to choose from. Investors are advised to consider factors such as the pedigree of the management, company track record, company's claim settlement ratio, parent group's experience and demonstrated ability in the broader finan cial services sector since logic suggests that organisations that have a track record of managing monies successfully may be able to replicate that success in their insurance business too. Never hide or misstate facts: An insurance contract is based on the principle of Uberimae Fides or `utmost good faith' and underwriting decisions are based on the faith that disclosures made by an investor are true and correct. Selective disclosures or non-disclosures affect underwriting decisions. It not only undermines the very basis of the insurance contract, but also alters the risks the insurer assumes on its books. Non disclosures, partial disclosures or wrongful disclosures of significant and material facts could result in claim rejection. When a claim is rejected on sound grounds, there is often little room for appeal. 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

ICICI Prudential dividend Posted: 22 Feb 2013 02:43 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) ICICI Prudential Mutual Fund has announced dividend under the following schemes: The record date has been fixed as February 22, 2013. 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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