Prajna Capital

---

• Use credit cards reward points for gift vouchers
• Invest in Capital Protection Funds if you are risk avorse Investor
• Mutual Fund Mergers

Use credit cards reward points for gift vouchers Posted: 03 Dec 2013 05:30 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     They can be used to buy anything from any store. A bank's gift list will be limited to select items   One can't argue on the convenience and advantages of credit cards. It is much safer than carrying bundles of notes each time you step out, of course with due caution. Credit cards prove useful when making high value transactions. But one advantage that most people overlook is the reward points, and how to use them. Reward schemes are the oldest form of credit card benefits. Depending on the card that you have, points are rewarded on your spends. Gold, platinum card or privileged cards generally award more points per spend. While, anormal card would earn one point on spend of ₹ 125 or ₹ 150, privileged cards would earn one or two points for every ₹ 100 spent. Reward points are redeemed against some benefit after having been accumulating them in sufficient numbers. One of the main questions for cardholders is: for what should the reward points be used? The broad choice lies between using them to purchase gifts or a gift voucher. The two encompass many similarities and differences. Several factors will help you make the correct decision. Manner of utilising reward Points: The simplest way to utilise the accumulated reward points is to redeem them against the various gifts listed in the bank's catalogue. The various categories listed by banks range from apparel to magazines, with the number of points stated against the specific item listed. Thus, a subscription to a magazine could carry 1,200 points or a hot iron 850 points and so on. Different categories of credit cards (gold, platinum, signature) could have different redemption structures — in terms of points required and kinds of gifts. Your bank's relationship manager will be able to provide the exact details. The other way of redeeming the points is to purchase a gift voucher at one of the several leading stores both single brand and multi- brand across the country. Thus, the reward points are exchanged for gift vouchers ( for instance, a ₹ 500 voucher for 750 points) to be utilised for purchases at that store. Obviously, a gift item can be purchased using a gift voucher or through redemption of reward points. Here are some parameters to consider while redeeming these points. Choice: In the matter of choice, in terms of the number and variety of items available, utilising a voucher would turn out to be better. This is because a list at a bank would be rather restricted. With a gift voucher the possibilities are unlimited in the sense that one can purchase virtually anything stocked in a store. This would make a difference when a decision about what needs to be purchased is uncertain and browsing through what is available is necessary. Hence, a person in such a case is free to choose and buy what he likes amongst the various choice available. Availability: This can be an important parameter while planning to utilise the reward points. If a decision has already been made about something that needs to be purchased and if it is available in the list with the bank, the situation is made easy. It is good because it may so happen that if you choose to take the gift voucher route there are chances that you may not find a particular item when you go to buy it. Hence, there is alevel of uncertainty whether an item would be available in a store and the one you had been wanting to buy. The reverse could also be true; so this is a factor that can change the overall decision about the manner of purchase. Reward points spent: The whole idea for any individual should be to obtain the most from their reward points. An easy way to do this is to look at comparable items and see how many points are spent. For instance, a specific shoe from a leading brand available for, say, ₹ 2,000 could be redeemed against the reward points already secured. Against this, the cost of the shoe in the open market might be ₹ 1,500. If the store for this brand offers a voucher of ₹ 500 for 600 points, the same item can be purchased by spending 1,800 points to obtain a voucher for ₹ 1,500. In this case, the voucher route leads to spending fewer points while one still ends up with the same item one was looking for. In this sense such comparison is important as it enables one to get a proper view of the whole situation and make a sound decision. Hence, make sure what is on offer on your card and how the reward point is structured. Additional expense: In the search for a specific gift at redemption, an added element could arise along with reward points in the form of the extra amount to be paid. To get a gift of, say, a perfume, the requirement is to redeem 1,500 points plus pay ₹ 249. This extra amount should be included in overall calculations. Compared to this, any payment for redemption of a gift voucher would also include calculation of the amount of the actual item and any additional amount to be paid over the voucher amount. So if the value of an item is ₹ 1,600 and gift vouchers of ₹ 1,500 are taken, there is an additional ₹ 100 involved. In effect, the final cost using both the points and the additional amount would need to be taken into consideration for a right decision. Points are rewarded depending on the type of card you have Gift voucher offers greater choice of items for redemption Look at the actual number of points spent for redemption Any additional amount spent should be included in the calculations 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 ) ICICI Prudential Tax Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFunds Invest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Invest in Capital Protection Funds if you are risk avorse Investor Posted: 03 Dec 2013 04:48 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Invest in Capital Protection Funds if you are risk avorse Investor Capital protection-oriented funds help conservative investors avoid undue risks and earn higher returns than traditional fixed-income products Should you try to preserve your capital or should you resort to value investing to make money in the long term? Even as the markets are hovering around all-time high, many investors are pondering over the question these days as they see conflicting signals emerging from the mutual fund houses. For example, ICICI Prudential AMC and LIC Nomura AMC have recently opened their new fund offers (NFOs) of capital protection-oriented funds (CPOF) for subscription. Axis and Pramerica MFs are coming out with schemes that would invest in shares of small and mid-sized companies. NFO of ICICI Prudential Value Fund closed recently after collecting . 645 crore. As you can see, one set of offerings look to preserve capital in anticipation of a market fall, whereas the other theme is trying to explore value investing. Markets may remain volatile in the short term. But it is time to allocate some money to equities with 3-5-year time-frame, given the attractive valuations of the broader market. A Case for Capital Protection Funds That settles the matter in favour of value investors. However, conservative investors who don't want to take any extra risk can still explore capital protection-oriented products. These schemes are primarily meant for conservative investors with 3-5 years' investment time-frame. Investors like investment avenues that provide higher returns than traditional fixed income products without taking any additional undue risk with their principal. CPOF offers investors the benefit of upside in equities in limited manner without any risk on capital, he adds. If you find that argument convincing, you can check the universe of CPOFs. They are essentially closed-ended schemes that invest in a mix of equity and debt. They come with two-, three- and five-year tenures. In a five-year fund, around 75% of money is invested in good quality bonds that would ensure return of capital at the end of five years. The remaining 25% is invested in equities to boost returns. While we expect markets to remain volatile till the polls, equities definitely look a better asset class compared to real estate and gold. Valuation of equities is attractive, especially in the midcap space. Generally, we have seen equities provide healthy returns when bought during periods of low GDP growth and we feel we are close to the bottom in that respect. Realistic Expectations The funds promise the best of both — equities and debt — but experts advise a realistic approach. These funds can be considered to start allocating some capital to equities by conservative investors who have remained out of the markets for last few years, but the returns expectations must be realistic. Though most of the fund managers invest the equity component of these schemes in high conviction ideas that are expected to deliver over the tenure of the scheme, the returns cannot be exceptional given the small allocation to equities. Consider a situation: if the fund manager has invested 20% of the money in equities and it doubles over three years, the effective portfolio return at the end of the third year is in the range of 11-12%. Expect a bit more than AAA-rated three-year fixed deposit. Taxation is another issue with these schemes, which are taxed like a debt fund. 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 ) ICICI Prudential Tax Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFunds Invest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Mutual Fund Mergers Posted: 03 Dec 2013 03:44 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     It's merger time for mutual funds (MFs). As many as 14 schemes have merged since July this year, which is more than double the pace at which mergers took place between February and May. The reduction in securities transaction tax (STT) has helped fund houses merge their schemes at significantly lower costs. STT has been reduced from 0.25% to 0.001% for MFs and exchange-traded funds with effect from June this year, making merger costs almost negligible. For instance, fund houses were paying an STT of Rs 25 lakh for a merger in which the combined AUM (assets under management) of the merged and surviving scheme was Rs 100 crore. They have to pay just Rs 1 lakh for such mergers now. The reduction in STT has helped scheme mergers. Mergers in equity MF schemes are done either to bury below average performance or cut down the number of offerings. Such mergers result in a change in the objective of the scheme that is getting merged and also aim at slowly pushing out unpopular themes. While IDFC merged two of its schemes – IDFC India GDP Growth Fund and IDFC Strategic Sector Equity Fund into IDFC Classic Equity Fund – Reliance has merged its Natural Resources Fund into its Vision Fund. The rise in markets in the past two months is also pushing fund houses to merge schemes, industry officials said. Fund houses are using the buoyancy in markets to merge schemes. Investors also don't want multiplicity in schemes. They would rather invest in high performing funds. Investors should, however, watch out for the tax implications of such mergers. In case of a scheme merger, there is a fresh issue of units of the surviving scheme in lieu of units in the merging scheme(s). While the amalgamation is treated as redemption for unit holders of the scheme that is being merged, the issue of new units is considered as a purchase. Investors of the scheme that is getting merged are liable for capital gains tax as it is considered a withdrawal. If an investor stays with the scheme for less than one year, he/she is liable to pay short-term capital gains tax for an equity scheme. Simply put, investors, who are invested for less than one year with some capital gains in a fund either have to pay taxes and exit or continue with the surviving scheme, which may not necessarily be consistent with their investment need/ strategy. Market regulator Sebi has mandated that investors in the scheme that is getting merged should be given 30 days time to exit at the existing NAV (net asset value) without paying any exit load.    STT was reduced from 0.25% to 0.001% for MFs and ETFs exchange-traded funds in June, making merger costs almost negligible  Investors should watch out for the tax implications of such mergers ä Investors of the scheme that is getting merged are liable for capital gains tax as it is considered a withdrawal 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 ) ICICI Prudential Tax Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFunds Invest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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