Prajna Capital

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• Fixed options for senior citizens
• DSP BlackRock FMP
• LIC Jeevan Sugam Review

Fixed options for senior citizens Posted: 18 Mar 2013 07:18 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     With banks reducing rates on FDs and Budget doubling dividend distribution tax, things don't look so good If you are close to retirement or just retired, a financial planner is most likely to tell you this: Move your corpus to debt funds or fixed deposits for safety and invest part of the money, 10- 20 per cent ( depending on your risk- taking ability), into equities for better returns. Now, the same financial planner is likely to advise you to invest a little more in equities. The reason: Falling rate of return, in the case of both fixed deposits and debt funds. In the past few months, many public sector banks, including State Bank of India, Punjab National Bank and United Bank of India, have reduced the premium paid to senior citizens on retail term deposits, by at least 25 basis points ( bps). Earlier, the banks were offering between 50 and 75 bps higher than the rack rates on fixed deposits ( FDs) for those above 60 years. Now they are offering only 25 bps more. In addition, while the Union Budget did not hand out any concessions to senior citizens by way of tax exemptions, it imposed adividend distribution tax (DDT) of 25 per cent ( up from 12.5 per cent) on debt schemes. While the tax authorities might claim that it is simply to remove an anomaly between liquid and other debt funds, the fact remains that returns from these instruments will suffer because of this. For the retired, monthly income plans are good instruments to get regular income. Even financial planners propose this instrument because it reduces the need to dip into your savings on a regular basis. However, with the increase in DDT, the returns will fall to that extent. A majority of retired people are dependent on returns from their investments, which are largely in bank FDs and debt mutual fund products. Debt is the most preferred investment for senior citizens since it offers stable and regular returns, though it rarely beats inflation. Equities, beat inflation but the returns are volatile. Hence, senior citizens are advised to stay away from equity investments. Someone in the higher tax bracket will definitely feel the pinch since the post- tax returns on bank FDs will come down to around 6- 6.5 per cent. Since the long- term capital gains tax is 10 per cent without indexation and 20 with indexation, choosing the growth option for debt funds should become a better option. After this tax rule, the planning has to be better. According to one financial planner, one can put money in the growth option of a monthly income plan for one full year, then opt for a monthly systematic withdrawal plan from the next year. But remember to withdraw only the gains. For instance, if you invest ₹ 10 lakh and it appreciates to ₹ 11 lakh in a year, then you must not withdraw over ₹ 1 lakh. There will be long- term capital gains tax of 10 per cent, but not DDT, dabble a little more in equities in the initial years of retirement to ensure the corpus becomes much bigger. 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

DSP BlackRock FMP Posted: 18 Mar 2013 04:22 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) DSP BlackRock Mutual Fund has announced the launch of new fund offer (NFO) of DSP BlackRock FMP series 89 12M. The scheme will close on March 14. 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

LIC Jeevan Sugam Review Posted: 17 Mar 2013 09:28 PM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) A single premium plan is less cumbersome for those who want to avoid paying regular premium WHAT IT IS: Jeevan Sugam from Life Insurance Corporation of India (LIC) is a single premium plan. The risk cover under the plan is 10 times the premium paid for a fixed period of 10 years only. At the end of 10 years, the policy will mature and be ready for redemption of guaranteed sum. Only those aged between eight and 45 years can take this product. ISSUE PERIOD: The policy can be subscribed till March 31. DEATH AND MATURITY BENEFIT: The life cover, on death before policy expiry, is 10 times the single premium amount after deducting service tax. In case of death after five years of the policy term, loyalty addition will also be paid, although that amount is not specified upfront. On maturity, the survivor will be paid sum assured along with loyalty benefits. Minimum maturity sum assured under the plan is Rs 60,000 on single premi um of Rs 33,759. There is no upper limit. SURRENDER VALUE: For the first year, it will be 70 per cent of the single premium minus service tax and, thereafter, 90 per cent. This plan suits those who don't foresee a regular income in future but still want to protect themselves by taking a risk cover. But maximum age limit of 45 years will mean it is unsuitable for such individuals. A single premium plan is less cumbersome for those who want to avoid paying regular premium. Maturity sum assured depends on the age of the person. The policy's maturity value is lower for people in the higher age group of 40-45 years, making it expensive. For a person above 44 years, the single premium of Rs 1.99 lakh would fetch Rs 2.84 lakh at maturity, that is a return of 4.27 per cent. Though, inflation-adjusted return is 3.62 per cent, lower than 8.8 per cent return offered by public provident fund (PPF). PPF don't assure any risk cover, but the difference in returns can finance a purchase of a term insurance policy of the same or even higher sum assured. The return on maturity would be higher for person in the lower age group depending on the age but still lower than return on PPF. Although tax benefit is available to policyholders under Section 80C of the Income-Tax Act, there is some confusion on whether the maturity amount gets a tax benefit under Section 10(10D). The benefit under Section 10(10D) on maturity have not been disclosed in LIC's advertisement. Consult a tax expert if you want to be sure of the tax benefit, if any, on the maturity amount.   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

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