Prajna Capital |
- ICICI Prudential Income Fund and ICICI Prudential Dynamic Bond Fund
- All you need to know about E-Gold
- ICICI Prudential VAP (volatility Advantage Plan )
| ICICI Prudential Income Fund and ICICI Prudential Dynamic Bond Fund Posted: 16 Apr 2013 07:23 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
The tide is finally turning as far as interest rates are concerned. After a prolonged spell of being high and rising, interest rates have begun to fall. The following are the five reasons why we feel interest rates will fall going ahead:
Despite a slowing economy and moderating inflation, RBI restrained from cutting interest rates for long. This was despite economic growth for FY13 decelerating to lowest in over a decade! With improving macroeconomic numbers (especially CAD), the case for a steady fall in interest rates is extremely strong.
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 )
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| All you need to know about E-Gold Posted: 16 Apr 2013 02:16 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
E-Gold
A small extra return can have a huge impact on your savings over the years. The debate about physical gold versus gold exchange-traded funds, or ETFs, was settled in favour of the latter a long time ago. Now, e-gold, another product that gives exposure to the gold market, is laying claim to the crown.
E-gold, an electronic way to buy the yellow metal, gives better returns than gold ETFs. In 2012, it returned over 16 per cent compared to the 11 per cent average return given by gold ETFs. In 2011, e-gold and gold ETFs had returned 32 per cent and 31 per cent, respectively.
Experts say e-gold will always beat gold ETFs in returns as the latter's net asset value, or NAV, is computed after deducting the fee of the asset management company plus storage and custodian charges, which vary from fund to fund. The cost of trading e-gold in the spot market is nominal.
The advantage of buying e-gold is cost effectiveness. In e-gold, there are no recurring expenses such as management fee. This reduces the cost and increases returns year-on-year. Thus, e-gold is more effective in the long term.
E-GOLD VS GOLD ETF
E-gold is held electronically in the demat form and can be freely converted into physical gold. In India, e-gold is offered by the National Spot Exchange Limited (NSEL), which gives investors the option to invest in commodities such as gold, silver and platinum online.
Any investor can buy gold in small quantities on the NSEL and sell it after making a profit. He also has the option of taking physical delivery of the metal.
Another way of taking exposure to gold is gold ETFs, financial instruments that track the price of gold. Gold ETFs are the same as mutual fund units where each unit is equivalent to one gram gold, though some funds give the option to invest in lower denominations of 0.5 gram as well.
Gold ETFs can be bought and sold like mutual fund units through the demat account via a depository.
While a few ETFs give the option of taking physical delivery and some don't, investors in e-gold can take delivery anytime they want.
Conversion of gold ETFs into physical gold is possible only after it exceeds a certain size. This can vary from 500gm to 1kg depending upon the fund house.
In gold ETFs, investors track NAVs, which keep changing with gold prices. In e-gold, investors directly track the price of gold.
E-Gold Trading Basics
16 per cent is the average return given by e-gold in 2012 as compared to the 11 per cent average return from gold ETFs.
Brokerage: Trading in both gold ETFs and e-gold involves payment of a brokerage fee. For e-gold, it is 0.25 per cent of the purchase rate. The transaction fee for gold ETFs is Rs 1 per lakh compared to Rs 3.5 per lakh for equities.
Taxation: Gold ETFs have an edge over e-gold here. For gold ETFs, one year is considered as the long term; it is three years for e-gold. Also, e-gold attracts wealth tax.
E-gold is treated like physical gold and qualifies for long-term capital gains benefits if held for three years or more. However, gold ETFs qualify for long-term capital gains treatment after being held for just one year. Gold ETFs are considered financial assets and hence are exempt from wealth tax, which is not the case with e-gold.
Gains from gold ETFs, if sold within one year, are taxed according to the person's tax slab and at 20 per cent (after indexation) if sold after a year. Gains from e-gold, if it is sold within three years, are taxed according to the tax slab and at 20 per cent (after indexation) if sold after three years.
Indexation is adjusting the purchase price with inflation. It leads to a higher purchase price and lowers the tax liability. For instance, if inflation is 6 per cent and the investment is Rs 1,000, the inflation-adjusted price for taxation will be Rs 1,060. This will lower the capital gains. Market Timings: You can trade e-gold till 11.30 pm, while gold ETFs are available in the market only till 3.30 pm.
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 )
------------------ Best Performing Mutual Funds
|
| ICICI Prudential VAP (volatility Advantage Plan ) Posted: 16 Apr 2013 12:18 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Launched on December 30, 2006, ICICI Prudential Equity - Volatility Advantage Fund, is an open ended equity oriented fund that aims at generating risk-controlled equity linked returns.
The fund uses in house asset allocation model to maintain an effective equity investment level, which would be always above 65%. However, the actual equity level may go below 65% after the derivative exposure.
Investment Philosophy- how is the fund managed?
Equity -The fund will invest predominantly in equities and use derivatives to hedge the downside risk of the portfolio
Blend of large and mid-cap stocks
- While the large cap stocks represent established enterprises selected from the Top 100 stocks by market capitalization, the midcaps are smaller business entities with long-term growth potential. The allocation is decided on a tactical basis rather than any predefined ratio.
Asset allocation – The fund uses an in-house model, based on a long-term historical mean price to book value (P/BV), with a view to protect the investments during a falling market, while aiming to capture the upside in a rising market.
Derivatives strategy
- The fund will use derivative instruments for the purpose of hedging or portfolio rebalancing or any other stock and/or index strategies as allowed under the SEBI regulations.
Model Used to decide on Equity Position in VAP Pls find below attached product note and excel containing the following details
1) Matrix to decide on equity position in the fund 2) Last one year Equity Level in the funds with the corresponding P/BV 3) Month on month performance with the peer(Pls also look the Standard deviation in comparison to benchmark) 4) Performance Sheet 5) Portfolio
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 )
------------------ Best Performing Mutual Funds
|
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