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- ICICI Bank I Wish - Recurring Deposit (RD)
- Company FDs With High Rates May not be Your Best Investment Option
- Global funds or International Funds to hedge Investment Risk
| ICICI Bank I Wish - Recurring Deposit (RD) Posted: 27 May 2013 01:55 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
ICICI bank I wish is a very interesting recurring deposit product of ICICI bank available for its saving bank account customers who use internet banking. The interesting part of this product is you can create and manage your short and long term goals (in terms of money you want to accumulate) with these savings and also can share it with your friends and family on Facebook. By sharing it with others you can also ask for their contribution in this deposit to help you achieve your goal or fulfil your wish faster. The uniqueness of this recurring deposit product is in the feature of flexibility. Unlike regular recurring deposits , in this flexible product there is no compulsion on the part of depositor to make a month on month contribution into it. You can also make multiple deposits in a particular month. This product can only be invested through internet banking. In this article I will be covering the basic details of "icici bank i wish" and try to figure out the pros and cons of this.
Basic Features of ICICI bank I Wish
This is a recurring deposit product with a feature of flexibility in deposit. To bring excitement in your savings, it has option of Creating and Naming a goal. For e.g. you may want to buy a camera costing Rs 30000/- after a year. You can name your goal as "Camera", tenure as 12 months and after adjusting to the interest rates, portal will calculate how much you need to save per month towards that goal. The flexible feature of ICICI I wish recurring deposit allows you either to put a standing instruction for regular deposits or transfer the funds as and when you have towards this goal. You may also share your Goal/Wish on your Facebook account and ask for contribution into this to your friends and family. Other features are as below:
Should you invest in ICICI Bank I Wish?Well, structure wise it's definitely a unique product. It is a fact that when you map your savings towards a goal, you become very much disciplined in your approach. And nothing can match the excitement of achieving the goal. The flexible aspect of this recurring deposit is also very attractive. But the major drawback of ICICI I wish is that this is a recurring deposit product which by its basic nature is taxable. Whatever you earn out of this saving will be added in your income and taxed as per your slab. I mean if the intention is to save for a short term goal, why not to use alternate options like liquid/short term mutual funds. For short term goals these mutual funds may not be comparable on taxation aspect (due to changes announced in budet 2013) but these funds will definitely provide you with better returns than recurring deposits
Secondly, the penalty charges on pre closure of the account are also a negative factor. This issue can also be answered by investing in liquid/ultra short term mutual funds as there are no penal charges of withdrawing the amount.
ICICI bank I wish can be a perfect product to inculcate discipline of savings among your Kids especially major kids (Above 18 years of age). They can be encouraged to save part of the pocket money for their goals (of going on vacation or buying costly gadgets) from their own pocket money and once that benchmark is achieved you can supplement that savings with your contribution. This way you can teach them the advantage of savings by allocating it to a particular goal and also it will not burden you with more of tax payments. As whatever earnings made on the savings will be treated as your Child income only, also the gift made by you to him/her will not attract any gift tax
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
|
| Company FDs With High Rates May not be Your Best Investment Option Posted: 27 May 2013 12:40 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Manufacturing companies do not need a rating, while NBFCs mandatorily need to get their fixed deposits rated. However, there are exceptions to this rule. There have been instances where even reputed companies pay higher interest rates, especially if they are in a hurry to fund an expansion project or finance a takeover. Very often companies pay high rates temporarily as they would want to complete projects which are stuck in between. However, investors ought to know the reason. For example, in 2008, even Tata Motors paid 11% for three-year fixed deposits to fund its JLR acquisition. That means investors should ask distributors and financial advisors for the reason for such high interest rates. If the reason is genuine and they are convinced with the financials of the company, then they should invest. For those who are risk-averse, simply skip these companies.
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
|
| Global funds or International Funds to hedge Investment Risk Posted: 27 May 2013 12:14 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
INTERNATIONAL funds are schemes of mutual funds that invest their corpus into assets abroad.
Today, there is a range of equity-oriented international funds available for investors in the country. Most investors select only those funds that invest in the local equity and debt markets, and hence, there is a similarity that creeps into the portfolio. International funds offer a different perspective for investors and need some consideration.
Here are a few of the variety of goals that can be achieved through these funds.
Geographical diversification: One of the biggest benefits of using international funds is that there is diversification of amounts invested across different markets.
This ensures that the money is spread out geographically and while there is a chance that the world markets take a tumble at the same time, there is also a position, whereby, the situation of specific countries can ensure that there is a different effect that is felt in some parts of the portfolio.
This is another way in which diversification is undertaken because doing it across market caps and sectors might not be enough if there is a situation where the entire money is invested in a particular geographical market. This additional factor can be a plus point, especially when the portfolio is large and there is a need for the reduction of risks that keep rising over a period of time.
Specific country exposure: Looking at international funds also increases the choices for investors as they can select a particular country where they feel that the potential for growth is high for investment using these mutual funds. The good part is that investors in India have a choice with respect to choosing developed nations and even smaller countries for their investments through various international fund schemes available in the country.
There is a slightly higher bit of risk in this strategy because of the fact that if things do not work out well in this specific country, then your investment could take a hit. The other way in which exposures of various countries is obtained is by through an investment across a basket of countries.
Investors can choose either of the options depending on their risk appetite and ability to understand the manner in which these funds function.
Feeder funds: The choices for investors is very clear in deciding between funds that directly invest into equities abroad or those that invest in a feeder fund. The former has to select the investments on their own, which is where it is important for individuals to look at the fund manager. The experience of the fund manager to ensure that they are able to build and run a good portfolio is of paramount importance and needs the highest attention.
On the other hand, when it comes to a feeder fund, the situation is a bit changed due to the fact that there is already a foreign fund that is in operation.
The Indian fund just directs the money that it collects towards this fund. This provides an additional amount of confidence for investors because it is a fund manager who is conversant with the local conditions. They can also go and check in the past about the performance of the fund and how it has managed to tackle different situations. This can be a starting point for several investors who are venturing into this area for the first time, as it will also lead to lower risk and tension while investing.
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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