Prajna Capital

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• Non-Convertible Debentures
• Pre paid Gift Cards
• What are Hybrid Funds?

Non-Convertible Debentures Posted: 11 Mar 2014 04:35 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Non Convertible Debentures   Most of us are conservative when it comes to investing hard earned money. We prefer to invest in secure investment options. But for higher returns we need to take risk. As it is rightly said - no risk no profit. There are financial instruments such as Non-Convertible Debentures, which work better than fixed deposits when it comes to returns. Before we research into the factors that make Non-Convertible Debentures more attractive than other fixed income instruments let us look at what Debentures are. A debenture is an instrument used for borrowing by companies, which may be secured or unsecured by physical or collateral assets. It means if the company fails to pay its obligations, these assets can be liquidated to pay investors’ money in case they are secured. Independent rating agencies like ICRA, CRISIL rate the companies as AA or A+. It is advisable for investors to invest in companies with higher rating and not go solely by the interest rates offered on the debentures. Following are the points which one should keep in mind before investing in Non- convertible debentures:- Liquidity: Fixed Deposits by banks can be liquidated at any time for a small penalty. However, this may not be possible when it comes to debentures. Nevertheless, from a returns perspective, debentures are better compared to other fixed income instruments. Risk: Risks are high in case of non-convertible debentures as companies might face loss at any time. Further, unsecured Non-Convertible Debentures have no underlying assets as security that is the reason why unsecured Non-Convertible Debentures give more returns than secured ones. Consider the rating of the issuer and the issue itself before investing, especially if you do not have much knowledge about the business model of the company issuing the debentures.  Tax: From income tax point of view, rate of interest on debentures is income from other sources, which is clubbed under ‘Income from other sources’ head and charged at slab rate applicable to an individual. If an investor is selling this debenture before maturity, capital gains tax is attracted on the premium. Traded in Stock Exchange: Non convertible debentures are listed on stock exchanges and can be traded as shares. However if the market interest rate is higher than the coupon rate then the debenture must be sold at a lower price and vice versa if the market rate is higher than the coupon rate. These instruments can also be converted into cash. Maturity: Maturity of debentures varies from one issue to another. As per RBI stipulations, minimum time for maturity must not be less than 90 days and maximum can be 20 years. You can invest either in a short term debenture or one with a long maturity period as per your preference, in line with your financial goals. History Of Company: As mentioned earlier, it is advisable to base your purchase decision based on ratings given by independent agencies. However, you must do your own research on the company’s health before investing in its issue. If the company has defaulted in payment earlier it is  not advisable to invest in its offering. Investment in debentures must be considered after taking into account your risk-return profile, liquidity preferences and the period for which you want to stay invested. Think wise and invest wise.     For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 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 Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. 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Pre paid Gift Cards Posted: 11 Mar 2014 03:36 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     Most of us have faced situations in life when we are stumped as to what to gift our loved ones. A pre-paid gift card which essentially works like a gift voucher is an excellent option if you face a tough time in choosing gifts.  A pre-paid card has a magnetic strip and looks no different from a debit card and credit card. However, the amount spent is not linked to your bank account. You also cannot accumulate debt on the card. Pre-paid gift cards are available in banks, which work in association with Visa, Mastercard or American Express. You can purchase the card from a bank by simply paying the card value. Some banks also charge joining fees. Other than banks, some online portals also sell pre-paid gift cards. When you make the payment, the card is loaded with this amount, which you can then gift to anyone. The recipient can use the card across merchant outlets which accept that particular type of card (Visa, Mastercard or American Express). When the gift card is used, the transaction amount is reduced from the card balance. Like a credit card, the user signs on the charge slip after the purchase and signatures are matched by the merchant. The card can be used till the entire amount is exhausted. Banks charge a nominal fee of Rs.50 - Rs.100, exclusive of service tax as joining fee when you purchase the pre-paid gift card. Some banks charge similar amounts towards other services like replacing a lost card, cancellation, requiring physical statements, regeneration of the PIN etc. Pre-paid gift cards are issued in denominations of Rs. 500, Rs. 1000, Rs. 2000 and Rs. 5000. Some banks also issue in multiples of Re.1. Most Indian banks issue non re-loadable pre-paid gift cards in Indian rupees. Pre-paid gift cards have a validity period. Banks generally issue it with a validity of 1 year. The balance on the card can be found out by contacting the respective bank. In some cases, you also have the option to check the balance and transaction history using a secure PIN. If the purchaser of a pre-paid gift card is already a customer of the bank, the purchaser can simply pay for the card to purchase it. However, in case the purchaser is not a customer of the bank, a full KYC is generally needed, which includes providing an ID proof and a residence proof along with the completed gift card application form. The biggest advantage of a pre-paid gift card is that it gives the receiver the freedom to decide how he wishes to spend the card amount - either on shopping, dining or other entertainment. It is also safer, more durable and easier to carry compared to cash or any other type of gift voucher, as each card carries a unique number which can be used to trace the card. Pre-paid gift cards have become quite popular in recent times in India due to the ease of use and various other benefits. For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 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 Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap FundsInvest Online DSP BlackRock MicroCap Fund 2.Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

What are Hybrid Funds? Posted: 11 Mar 2014 02:00 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   They are close ended funds that have allocation to different asset classes. They mostly invest in equity and debt. Some of them invest in other assets like Gold. Hybrid Funds are good investment options that can help us achieve the objectives of good returns and risk diversification. What are the different types of Hybrid Funds? Hybrid funds can be classified into different types – - Balanced Funds – They invest 65% of the amount in equity and the rest of the amount in debt oriented instruments. - Regular Plans/MIPs – They are debt oriented mutual funds that allocate 25% to equity and the balance in debt oriented instruments. - Equity Oriented Hybrid Funds – These are similar to balanced funds but invest more aggressively in equity. Around 80% of the money is allocated to equity which makes the risk quotient higher. - Capital Protection Funds – These funds are close ended funds with a lock-in period. Majority of the investment is in debt and their aim is to protect the investment when the markets are volatile. They give fixed returns. But they are costly and there is no guarantee for capital protection. For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 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 Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap FundsInvest Online DSP BlackRock MicroCap Fund 2.Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF 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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