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| Investing in Dynamic Bond Ffunds Posted: 20 Jun 2013 04:44 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Dynamic Bonf Mutual Funds
These flexi bond funds are safe but do not assure best of returns
THERE is perhaps no other investment instrument that confuses investors seeking exposure in that asset class more than the debt mutual funds. The number of categories has baffled, and continues to baffle, a vast majority of investors exploring or seeking a debt asset class exposure through debt funds.
Consider the range of open-ended debt funds -liquid funds, ultra-short term debt funds, short term bond funds, income or bond funds, dynamic bond funds, floating rate income funds and gilt funds.
Till some years ago, it was easy to match a fund type with the average tenure a scheme from that fund type will have in its debt portfolio. So, a long term income fund would definitely have an average portfolio maturity (APM) of more than three years, compared with a medium term bond fund and a short-term bond fund that would have their APMs as one to three years and six to 12 months, respectively.
But over the past few years, debt fund managers have used the leeway available in their broad and flexible investment objectives and allocation patterns to have wide-ranging and fast changing APMs.
Dynamic debt funds would typically have the word `dynamic' or `flexi' in their scheme names and the implication of the word is that the fund manager gets to invest in debt paper having outstanding maturities from as low as a few days (as in the case of CBLO instruments), to as high as 10 years (as in the case of G-secs).
With this wide range available upfront, the relationship between interest rates and investment tenures can be managed by dynamic bond funds far better than other debt fund types. Investors can legitimately expect a dynamic bond fund manager to optimise returns across fluctuating interest rates and their cycles.
This approach does not necessarily guarantee highest returns among all debt fund types but it frees investors from having to actively juggle his debt corpus among ultra-short term funds, and bond funds ranging from short-term to long-term.
Close-ended FMPs: Funds remaining after deployment in open-ended dynamic bond funds can be invested in close-ended FMPs. FMPs come in varying maturities from three months to five years. This, coupled with the fact that their closeended nature allows them to lock in their corpus at a tenure matching the duration of the scheme, allows investors to choose the maturity periods according to the periods for which they want to have a debt market exposure. So, if a part of an investor's deployable debt corpus would be needed back in six months, that sum can be invested in a six-month FMP .
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
|
| Know If your Salary Allowance Taxable Posted: 20 Jun 2013 02:25 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) There are a lot of allowances that are often received by an individual while they are in employment. The question that they have is whether this will be taxable and what will be implication be in terms of the tax liability that might arise from these receipts. There is often a lot of confusion that arises on this point and hence it is necessary to be clear about the exact conditions that will affect the total included as taxable income. The other point is that adequate knowledge will also help the individual to plan their salary structure and the manner in which they will get various benefits that are offered by the employer. Here is a closer look at the entire situation and how one should go about tackling it.
Overall situation
Tax free workings
Other allowances
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: 20 Jun 2013 12:40 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
There are limits on most of the benefits it offers and it also has a large number of exclusions
PRODUCT FEATURES: The plan offers reimbursement of medical expenses incurred in a hospital and is available in two variants. You can choose an individual policy or a family floater policy where you can cover spouse, children, parents and parents-in-law. The mode of premium payment can be single premium or annual premium. The sum insured ranges from Rs 3 lakh to Rs 10 lakh depending on the plan option. The minimum entry age is 18 years and is renewable lifelong. The policy term is three years and your premium remains the same during the three-year period even if you have made a claim. Your sum insured doubles after two claim-free years.
PREMIUM: Let's take the example of a silver option plan. For a Rs 3 lakh cover at the age 35, the regular premium excluding taxes would be Rs 4,854 for a male and Rs 5,339 for a female. In the case of single premium option, the amount would be Rs 12,612 for male and Rs 15,064 for a female. The premiums are higher in the gold plan and would change if you opt for a family floater policy with dependents.
Avoid this plan as it is very restrictive.
There are limits on most of the benefits it offers and it also has a large number of exclusions. For instance, it would apply a co-payment of 20 per cent in case you take treatment in a non-network hospital. On the same lines, in case of a cataract operation, the company will pay up to Rs 20,000 for a single eye. The room rent too has been capped at 1 per cent of the sum insured in case of a regular ward and 2 per cent of the sum insured in case of an intensive care unit.
You should instead buy a health insurance policy from a non-life insurance company, which will cover your hospitalisation expenses and not cap your room rent.
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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