Prajna Capital |
| Structured plans in your investment portfolio Posted: 29 Apr 2013 07:12 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
WHAT'S in a name?
That which we call a rose by any other name would smell as sweet." That might be true for Juliet in Shakespeare's famous play but definitely not for the structured products industry, which has seen the name of structured products much tainted by the 2008 crisis.
With investor education and today's search for yield amidst highly volatile markets, structured products are increasingly being included as part of one's portfolio.
The trend, however, has been moving towards the return to simplicity and a growing demand for bespoke products. We explore some of these trends below, as well as shed light on how investors can better understand and use them in their investment journey.
Fixed coupon notes linked to a single or basket of equities have also been popular with investors attracted by the unconditional coupon in the mist of market uncertainty. These notes provide investors with regular income and allow them to get equity exposure for any upside potential.
At the end of the day, besides offering simple structures, it is critical to ensure that investors understand the products they are investing in. For instance, even when providing yield enhancements for flat markets with simple structures (which commonly see a short-put strategy linked to a single underling such as ELNs), it is still important to adapt and explain our of ferings to meet the needs of nervous investors.
Capital protection:
As a result of uncertain market conditions, there continues to be a strong interest in capital-protected products. Investors seek products that allow them the opportunity to tap on a re bound in the underlying markets, while offering downside protection.
The mitigation of issuer risk is also key to the demand for structured products.
Seizing opportunities in the structured products space: It is important for investors to understand the movements of the underlying product and enter into these structures at the appropriate time. Having an understanding of what uying into as an underlying is, they are buying into as an underlying is, therefore, crucial in helping savvy investors to seize opportunities in these markets with the use of structured products.
Overall, we continue to see a healthy demand for structured products, especially in these volatile times when investors seek products that can help them ride a rebound and protect against the downside.
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
|
| Posted: 29 Apr 2013 04:41 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
FEATURES: This is a student travel insurance plan.
The insurance company claims to have designed the policy keeping in mind the needs of Indian students who are planning to pursue higher education abroad and for existing Indian students who are already studying abroad.
COVERAGE: This policy covers risk against unforeseen expenses such as hospitalisation, accidental death, permanent disablement and dental treatment. The policy also provides additional covers such as personal liability, bail bond, sponsors protection, study interruption, loss of passport and loss of checked-in baggage. This policy pays amount incurred in the event of a abroad visit by one immediate family member in case of medical emergency, or vice-versa. Option to include covers like maternity, childcare benefits, cancer screening and mammography examinations and mental and nervous disorders are also included, but you have to pay addi tional premium.
ELIGIBILITY: This policy is meant for Indian stu dents travelling abroad be tween the ages of 16 to 35 years. The existing Indian students who are studying abroad can also be cov ered under this plan.
VARIANTS: The plan is available in four variants bronze, silver, gold, and platinum plans. Standard plan offer coverage of $50,000, silver plan of $100,000, gold plan of $2,50,000 and platinum plan offers coverage of $500,000. In all the plans, policyholders can claim 100 per cent of sum insured for medical emergency. However, there is cap on other insured sub head, such as accidental death, permanent disability and emergency dental treatment.
PREMIUM: The insurance premium for a 30 trip to the US and Canada under platinum plan comes to Rs 3,673 with maximum claimable amount being $500,000 in case of hospitalisation expenses. While in case of bronze plan, where maximum claimable amount is $50,000, the premium will be Rs 879. For students on long study tour to the US and Canada, a two-year insurance will cost Rs 60,227 in case of platinum plan and Rs 12,412 for a bronze plan. Premium falls considerably if you are travelling to rest of the world (excluding US and Canada).
This is a comprehensive student travel insurance and offers to take care of all needs such as medical, loss of baggage and loss of passport arising in a foreign country. The company will pay compensation in the event of interruption of study whilst abroad. This policy also covers the bail amount in case the student is arrested in the travelling country. Premium charged is cheap compared with its competitors. You may look at this plan if you planning to study abroad.
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
|
| Posted: 28 Apr 2013 11:58 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Gold ETFs are funds that invest in physical gold of 99.5 per cent purity. A gold ETF invests 90-100 per cent in physical gold sourced from the RBI approved banks and 0-10 per cent in debt instruments. It is for this reason that Gold ETF returns are mostly in line with the prices of physical gold.
The minimum that you can buy in ETFs, is gold worth at least one unit, which is equivalent to one gram of physical gold, with the exception of Quantum AMC, which offers half a gram option for each unit. The units of gold ETFs are traded in exchanges and hence offer liquidity and the right price for both buyers and sellers. However, this liquidity varies across fund houses, which makes liquidity an important factor when investing in a gold ETF.
On the other hand, a gold fund is an open-ended fund that invests in a gold ETF. For an investor, buying a gold fund is easier because you don't need a demat account, which is required to invest in a gold ETF. However, this convenience comes at a slightly higher cost in the form of annual expenses of about 1.5 per cent of the asset under management, whereas it is around one per cent in case of gold ETFs. Investors in gold funds can invest through the SIP route, which is not possible when investing in the ETF. However, both these forms of investments in gold track the price of gold and have similar returns and little to choose from other than liquidity in case of ETFs.
As for converting gold ETFs to physical gold, most ETFs allow investors to convert only a minimum of one kg of physical gold, except Motilal Oswal's MOSt Gold shares which allows investors to redeem units for a minimum of 10 grams of gold.
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
|
| 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 | |
No comments:
Post a Comment