Tuesday, February 25, 2014

Prajna Capital

Prajna Capital

What is monthly Reducing Balances method of Bank Loan?

Posted: 25 Feb 2014 04:12 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Monthly Reducing Balance

Borrowers benefit more from a loan that's calculated on a monthly reducing basis than on an annual basis. In case of monthly resets, interest is calculated on the outstanding principal balance for that month. The principal paid is deducted from the opening principal outstanding balance to arrive at the opening principal for the next month and interest is computed on the new, reduced principal outstanding. In case of annual resets, principal paid is adjusted only at the end of the year. Hence, you continue to pay interest on a portion of the principal that has been paid back to the lender.

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


Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

How to evaluate Mutual Funds?

Posted: 25 Feb 2014 03:17 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 


For most investors, the process of evaluating and selecting a mutual fund is rather straightforward. It begins with a visit to any website that has data related to mutual fund returns. Funds are sorted based on their returns to identify the best performers. A discerning investor is likely to go a step further and assess the risk-adjusted performance too. Funds that make the grade on both the return and risk-adjusted return fronts are earmarked for investing.


The trouble with this approach is that it focuses solely on the past. In other words, the investor assumes that the future will mirror the past. But that may or may not be true. For instance, if the factors that drove the impressive showing have changed, then the past performance might be of little relevance.


Hence, there is a need to go beyond performance and instead focus on forwardlooking aspects, i.e. factors that can be predictive of performance.


We list five such factors that investors should focus on while evaluating a fund:
People: Find out more about the individuals responsible for running the fund, i.e. the portfolio manager and the investment team supporting him. Focus on the manager’s experience and his/her areas of expertise. Ideally, one should seek managers who are experienced and have successfully navigated a market cycle. Assessing the analyst and research resources available to the manager is important too.


Process: This entails evaluating the investment strategy being plied on the fund. Broadly speaking, a process which is simple, well-defined and repeatable is preferable. Furthermore, the manager’s ability to execute it is no less important. Simply put, investors must find out if the strategy is robust and can be consistently executed with skill by the manager.


Parent: This is an assessment of the asset management company (AMC). The policies put in place by the AMC have a bearing on fund performance. For instance, an AMC that fails to retain talent could struggle on the fund performance front as well. If the investment team is incentivized for short-term performances, that will influence their investment style. An AMC which recklessly launches trendy funds is typically likely to be more interested in its bottom-line rather than investors’ longterm interests.


Performance: Evaluate if the fund’s perfor mance matches what one expects given the process being plied. For instance, a valuation-conscious process is unlikely to deliver at a time when markets are rewarding expensive stocks. Also, while returns are important, greater emphasis must be laid on the risk-adjusted showing over time.


Price: Expenses charged to the fund can and do have a bearing on its long-term performance. In debt fund categories where margins can be wafer thin, the importance of keeping expenses low is further accentuated. Find out how the fund compares to its category peers on the expense ratio front. All other factors being equal, an inexpensive fund should be preferred over an expensive fund.


The aforesaid factors should be considered in combination (and not individually) while forming an opinion on the fund. Lastly, investors must remember that they are investing their monies for the future and hence the need to focus on more than just the past performance.

Here are five risk-return ratios that investors can learn

Standard deviation (SD):

 

This is a statistical measure of risk which indicates how much the return of a fund has deviated from its average return. When a fund has a high SD, the range of returns is wider, implying greater volatility. This makes the fund more risky than one with a lower SD.

 

Sharpe ratio:

 

A measure of risk-adjusted return, it is indicative of how a fund has performed relative to the risk it took on. Since it measures risk-adjusted return, a higher Sharpe ratio is a positive.

 

Sortino ratio:

 

Another measure of risk-adjusted return, but unlike Sharpe ratio it considers downside risk or ‘bad’ volatility. A higher Sortino ratio indicates that the fund has suffered lower downside volatility versus a fund with lower score.

 

Up-capture/down-capture ratio:

 

The upside-capture ratio measures how a fund performs in a rising market relative to a relevant index. The ratio demonstrates how much of the benchmark index’s or peer group’s up movement the fund has been able to capture. Similarly, the downside-capture ratio is a measure of what percentage of the index’s or peer group’s fall was captured by the fund.

 

Information ratio:

 

This measures excess returns clocked by a fund versus relevant benchmark index, and the consistency with which they were clocked. So, higher the information ratio, the better it is.

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


Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Cashless Insurance can get you cheaper hospital rates

Posted: 25 Feb 2014 02:13 AM PST

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 



When 59- year- old Uma Khetan underwent a gall bladder surgery in August, her family wasn't unduly worried about the expenses — she had a ₹ 2- lakh cashless health insurance policy, in addition to ₹ 50,000 accumulated as no- claim bonus through two years. The policy was from New India Assurance.

Yet, she had to pay the greatest part of the expenses from her own pocket.

Though the final bill was ₹ 1.3 lakh, the approved amount was only ₹ 60,000. Khetan was prepared for a marginally higher bill, as she had opted for a single room, while her policy allowed only a shared room. But the huge bill took her by surprise.

From the beginning, it was clear only 80- 85 per cent of the cost will be paid. What I didn't realise was the cost of all services such as the doctor's visiting fees, the surgeon's fees, tests, etc, were linked to the room category. This led to the final bill being inflated.

Today, most insurance companies, have caps or limits for room rent. You must be aware of this when you buy the policy because all subsequent charges are linked to the cap. This is something you can't negotiate later.

So, even if you have a cashless policy, it might not be entirely cashless.

You would have to pay a deposit to the hospital before being admitted. After this, the hospital would verify the sum assured and the limit for room rent and each ailment with the insurance company or the third- party administrator (TPA) concerned.

Only after the hospital receives this information would the patient be admitted.

The policyholder's deposit is used to pay for items the policy wouldn't cover. Also, if the final bill exceeds the amount approved, the hospital reduces the balance from the deposit.

Earlier, many complained patients with health insurance policies were charged higher rates by hospitals. This led to disputes between the insurance company and the policyholder while the claim was being reimbursed, with the company questioning the high charges. But in the case of cashless policies, as a patient is admitted only after the amount is approved, it is possible for companies to fix the limit beforehand, says Gandhi.

Today, insurance companies bargain with hospitals to offer better packages to their customers, says Vivek Desai of HOSMAC, a healthcare management consultancy. This is possible because insurance companies promise huge volumes in return for lower rates. In the long run, it is good for consumers.

For a hospital, this is attractive because usually about 30 per cent of the patients could have serious complications for which treatment costs might exceed the cost of the package previously negotiated and entered into.

Big hospital chains apart, smaller hospitals, too, are signing such agreements with insurance companies.

For their customers, insurance companies are able to negotiate and secure discounts of at least 10 per cent.

For instance, in the case of an appendicitis surgery, if the rack rate is about ₹ 30,000, a patient with a cashless package could be charged ₹ 25,000.

In some cases, even if a policy does not cover out- patient- department charges, a company might recommend ahospital for treatments that don't require hospitalisation, provided they are offered a good deal. This is a valueadd for customers; for the hospital, it means an assured number of patients.

For customers, a lower amount under the package means a lower claim and, therefore, alower premium during policy renewal. While the direct beneficiary is the insurance company, the indirect beneficiary is the patient

But there is a catch. It is possible not all hospitals under the rates, says Sanjay Dutt, ICICI Lombard General Insurance.

There are agreed rates between the hospital and the company. But these are available only for cashless treatment, not for reimbursement. Even then, it may not be available in all networked hospitals. It would be offered by hospitals that have more traffic because the number of claims would be higher. Discounts could be five- 20 per cent and would vary from hospital to hospital.

Sometimes, the rate could vary depending on which TPA is handling the claim, says Gandhi of Emkay Insurance Brokers. " The negotiating power of the TPA also comes into the picture because some of them have large networks and, therefore, can negotiate better. The TPA is also crucial to how quickly your approval or final bill settlement comes through. It depends on the systems used by the TPA.

With more and more companies switching to in- house claims processing and settlement, there are fewer cases of delayed claim settlements.

Even public sector health insurance companies have set up a joint inhouse TPA for claim settlements.

But despite all these benefits, there could be cases in which the patient is overcharged or charged for aprocedure that wasn't necessary. For instance, some of Khetan's expenditure was unanticipated— there were two co- surgeons for the surgery, while the insurer approved only one. My family or I were not consulted. But frankly, we would never have gone against the decision of the surgeon, since we, as patients, feel doctors know best.

However, all network hospitals might not offer this and you have to pay more if you exceed the cap on 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 )

  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


Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

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