Monday, December 16, 2013

Prajna Capital

Prajna Capital


Birla SL Banking & Financial Services Fund

Posted: 16 Dec 2013 04:08 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

WHAT IS IT:

 

Birla Sun Life Banking and Financial Services Fund is an open-ended scheme. It will attempt to give long-term capital appreciation from investing in shares of companies engaged in banking and financial services.


NFO PERIOD:

 

The NFO period is from November 25 to December 9. Minimum subscription in the NFO period is Rs 5,000.


BENCHMARK:

 

The fund will be benchmarked to the performance of CNX Finance index.


EXIT LOAD:

 

Exit load for redemptions within a year is 2 per cent and between one and two years is 1 per cent.


There is no exit load after two years.


INVESTMENT STRATEGY:

 

Other than banks and NBFCs, the scheme will invest in promising companies within the financial services sector, such as housing finance, insurance, rating agencies and stock broking, microfinance companies and wealth management com panies, among others.

Investing in this scheme would be meaningful only if one has over an investment horizon of three years because of high exit loads in first and second year.

Investing in a sector specific fund could poten tially involve greater volatility and risk. Also concentration risk is expected to be high. The scheme being sector specific will be affected by the risks associated with the banking sector and investments in financial services. However, banking and financial services sectors have potential for growth. As on October 31, fund's benchmark CNX Finance index has given a compounded return of 17.3 per cent, against 12.9 per cent given by Nifty, but that may not be replicated in future.

Birla SL MF's past track record in managing sectoral equity funds is limited to its IT fund, Birla SL New Millenium Fund. This and two other IT sectoral funds of other mutual funds are benchmarked to BSE Tech Index, as per Capitaline NAV database. Performance of Birla SL's fund is discouraging. As of NAV of November 21, for the three IT schemes, it was ranked last on fiveyear returns with a CAGR of 20.67 per cent, lower than 21.77 per cent of DSPBR Technology and 36.43 per cent of ICICI Pru Technology Fund. On three-year returns, however, Birla SL New Millenium Fund was ranked second, with a three-year CAGR of 6.87 per cent. On oneyear returns comparison, the fund was again ranked second, with a one-year return of 39.04 per cent. The benchmark BSE Tech index's CAGR was 19.63 per cent (five years), 9.28 per cent (three years) and 40.19 per cent (one year). Thus, Birla SL MF's performance in thematic equity funds is not encouraging.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Hospital network for cashless insurance scheme

Posted: 16 Dec 2013 02:42 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 


One of the features that health insurance companies highlight while selling a policy is the cashless scheme. Under the scheme, in case of hospitalisation, the customer does not have to spend a single penny from his or her pocket (within the insurance cover), since the hospital would recover the amount from the insurance company directly. But before you sign up for a policy, check if the hospital that you want to go to, or is convenient for you in case of a medical emergency, is part of the hospital's cashless network. A few years ago, public sector health insurance companies had completely stopped cashless schemes citing over- billing by hospitals in case of such companies. While the issue has been resolved to some extent, and PSU insurers have again started offering cashless schemes, the list of preferred hospitals has come down drastically. And as a customer there is not much you can do.
 

The advantage of a cashless scheme is that hospital charges typically tend to be lower than in case where the customer has to claim reimbursement.

It is an agreement between the insurance company and the hospital.

If at any time the insurance company wants to take a particular hospital out of its list, it can. Customers can't do anything about it.

What you can do before buying a policy is to check if the hospital that you prefer to go is part of the company's preferred list. But it might also happen that the particular hospital was part of the list when you purchased the policy but the tie- up ended by the time you needed treatment.

There is no way customers can be sure that the cashless facility with the hospital will be available when they actually need to use it. In case of group policies, customers don't even have this option. In fact, in most cases, they don't even know the details of the policy, such as the cover amount or the list of preferred hospitals and so on.

So, if you want to get treated at a high- end hospital, it is possible that the hospital may not be part of the network offered by your company. If so, you will have to pay from your own pocket and then claim the money from the company. That comes with its own set of problems like excessive queries by the insurance company, delays in paying the claim and so on.

Another issue could be when the doctor treating you practises at a particular hospital but that is not part of the network offered by your insurer, says Laddha. So, customers should check the list of network hospitals on the company's website. If the company has a Third Party Administrator (TPA) for claim processing, then you can ask the TPA for the list of hospitals. According to an official from a PSU insurer, there is a Preferred Provider Network (PPN) for retail customers and a list of network hospitals for corporate customers. In Mumbai, for instance, Breach Candy hospital is not part of the PPN but for some corporate customers it has been included in the network. Although the number of hospitals in the PPN list had fallen for some time, it is slowing increasing,

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

What Is The Taxability Of Rental Income Of That Second Home?

Posted: 16 Dec 2013 01:06 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

One wonders what are the tax implications of the rental income on the second home which is rented out .Let us assume Mr Mahesh 40 Years of age owns two houses in Mumbai. One at Vashi in Navi Mumbai and the other home at Borivali West in Mumbai. Mr Mahesh stays at the Borivali flat and gives the Vashi Flat for rent at the rate of INR 3 Lakhs per annum after deducting municipal and other standard taxes. So What Are The Tax Implications In This Case? Mr Mahesh will have to pay the tax on his rental income earned on his Vashi Flat .If Mr Mahesh a salaried employee earns INR 8 Lakhs and receives rent of INR 3 Lakhs the total income earned by Mr Mahesh is INR 11 Lakhs per annum and he is taxed at the rate of 30%.Mr Mahesh makes use of deductions of INR 1 Lakh under Section 80 C for investments made in the Public Provident Fund and deductions of INR 35000 under Section 80 D for the health policies taken for himself his elderly parents and his spouse. Now his taxable income is INR 9.65 Lakhs and this amount is taxable at 20%.

Let us consider the notional rent for the Borivali Flat is INR 5 Lakhs per annum and the notional rent for the Vashi Flat is INR 3 Lakhs per annum. In this case Mr Mahesh has the option to select any of the properties as self occupied. The other property will be treated as deemed to be let out and taxed as per the estimated annual rent. Mr Mahesh stays in the Vashi flat and his family stays in the Borivali Flat. Mr Mahesh has the option to treat either of the two flats as self occupied and the other is deemed to be let out. The Flat considered to be let out will be taxed as per the estimated yearly rent. Mr Mahesh will treat the Borivali flat as self occupied because the notional rent is INR 5 Lakhs which is higher than the notional rent of the Vashi apartment which is INR 3 Lakhs. So Mr Mahesh will have to pay tax on the estimated rental income of INR 3 Lakhs after deducting municipal and standard taxes on his Vashi Flat. Let us assume a third case in which one of the flats is self occupied and the other flat is vacant .Then even though this Flat does not generate any rental income Mr Mahesh has to pay taxes on the estimated rental value of the unoccupied flat.

Deductions are available as per the Income Tax act 1961 for the municipal taxes paid during the year. All expenses such as insurance, repairs and annual maintenance of the house avail a deduction of 30% as a flat standard deduction irrespective of the expenses actually incurred If a loan is taken for purchasing the second property then the annual interest paid on the loan is available as a deduction. This deduction is available irrespective of whether the property is given for rent or not. In case the property is given on rent the entire interest amount is tax deductible irrespective of whatever this amount is. In case the second house is not rented and kept vacant then the interest amount on your home loan which is deductible is INR 1.5 Lakhs .One needs to note that wealth tax has to be paid on the second property as only a single unit is exempt from wealth tax. However if the second house is given on rent for a minimum period of 300 Days in a year no wealth tax needs to be paid.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

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