Prajna Capital

---

• Invest Your Cash in Liquid Funds
• Draft on home loans
• JP Morgan India Banking and PSU Debt Fund Exit load change

Invest Your Cash in Liquid Funds Posted: 11 Apr 2014 05:09 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 can help earn returns till you require money or generate regular cash flows   Liquid funds, which are usually the best bet for parking idle money for the short term, are a good substitute for savings bank accounts. In addition to this advantage, liquid funds could also be used for a variety of other purposes, but the underlying idea in all the cases is to use these schemes for parking money for a very short duration, say for a few months. Here are some of the options and situations that, according to financial planners and advisers, you can make use of the advantages that these schemes offer: flexibility, tax efficiency and liquidity. Park short-term funds when utilisation time is uncertain There are payments of various types that one may need to make over different intervals of time and prepares in advance for them. These may include EMI for a house, children’s yearly school fees at the beginning of the academic year, some social commitments and other payments. While in most cases the exact time of payment is known, it may not be so on certain occasions. And in such instances, a bank or a company FD may not be the ideal place to park your money which you have earmarked for those payments. However, liquid funds would suit the bill. You can put your money in bulk or in as many lots as required. In addition, it would earn more than double the savings bank rate of interest, which is similar to a bank FD rate, and can be taken out in as many lots as required. It takes about 1-2 days to take out money from a liquid fund, and the funds redeemed from these schemes can go directly to your bank account, thus bringing ease of transaction to the whole process ” he said. To match cash flows You may be faced with a situation in which when you get your money is not fixed, but your spends are quite regular and at pre-fixed times. For example, a large number of retired and retiring persons have subscribed to the tax free bonds over the past two financial years. Their returns will come as annual interest on a fixed date. However, he/ she may require the money on a monthly basis. These annual interest payments can be invested in a liquid fund and then you can go for a systematic withdrawal plan (SWP) so that you receive your money on a monthly basis. Setting up a monthly pension plan At retirement, an individual gets the bulk of the retirement corpus in one shot. T here are chances the person may not get a monthly pension or may require to supplement the pension being received. In such situations, the first year’s pension requirement can be put in a liquid fund and a SWP is set up. The balance could be suitably deployed in short-term / long term debt funds and equity funds as per the risk analysis, fund requirement and the time when such requirement would trigger. Every year’s requirement can be shifted to a liquid fund at the beginning of the year, and this could work as a pension plan. Spreading investments in equity funds It’s never advisable to invest a large chunk of money in equity funds at one go. So even you have a substantial amount of money to put into equity funds, invest a major portion in a liquid fund of the same fund house where the equity investment is to be done, create a weekly systematic transfer plan (STP) over the next few months according to the advice of your financial planner and let the bulk money go in small lots into the equity fund like an SIP. While the money gets deployed in equity fund in small lots, the undeployed amount earns liquid fund returns, currently which is about 8.5-9% per annum. In case, the market scenario changes and there is a need to shift larger or even the whole amount to equity funds, this can be very easily done since liquid funds have no exit loads. The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014. For further information contact Prajna Capital on 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 Funds Invest 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

Draft on home loans Posted: 11 Apr 2014 04:48 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 It seems challenging age old traditions and norm is the new trend these days. As kids we were taught that one cannot have a cake and eat it too but new products by the banking industry seem to be changing the rule.   Select banks in the country are offering an overdraft facility on home loans which enables a customer to earn optimal yield on their saving by reducing interest burden on home loans. All an individual needs to do is to create an account linked to the home loan, here one can park surplus funds, and one need not pay any interest on the home loan equivalent to the amount parked in this account. For instance, if one has taken a loan of 1 crore then one has to approximately pay interest of 1 lakh per month. In-case of a overdraft product, if one has parked an average monthly balance of 6 lakhs in the overdraft account one need not pay interest on the same amount, which means paying interest only on 94 lakhs and saving a virtual interest on 6 lakhs. The benefit on this product is similar to achieving a tax free return equivalent to one’s home loan interest. At present, this facility is being offered by State Bank of India under its Max Gain home loan account, Citibank's Home Credit, Standard Chartered Bank's Homesaver and HSBC's Smart Home loans. IDBI Bank has also launched the product recently.   On one hand though advisors specifically tabulate and check the profile of customers they offer this product to, on the other this product guarantees customers, who have excess liquidity, to get the interest waived. Banks in turn can rotate this fund. Though a little expensive than other home loan products , but it is still a better investment to make than other alternative to fixed investments or even pre paying the loan. This is primarily because even after reducing his interest outgo, a customer still manages to avail a tax break under Section 24 of Income Tax Act.   Under this section, the interest on home loans (for self occupied properties) up to 1.5 lakh is exempted from tax and gets the interest waiver on the funds parked in the current account. With the recent surge in the real estate prices, an average borrower pays out interest on high value loan which is more than double the amount for which tax breaks are available. This product gives enough opportunity to reduce the interest liability without losing tax benefits.   Bankers are able to extend this facility by treating the loan as a credit line. This means for the purpose of calculating interest the outstanding amount will vary depending on the balance maintained in the account. It is integral for customers to understand that the surplus amount parked in the account will reduce the interest liability, but it will not reduce the outstanding amount. It hastens the repayment as a larger portion of the EMI goes towards principal repayment.   Salaried individuals can use the account as their primary account and issue cheques or make regular payments out of this account. On an average, an individual’s salary lies in his/her account for seven days in a month. Even if that money is spent subsequently, he can earn interest for the time the money is in the account. A loan with overdraft facility works well even for those with uncertain earnings.    There are many instances where people who do not have a fixed salary have large balances lying in their savings account or fixed deposit. Parking these funds in the overdraft account enables them to reduce interest costs which is approximately 10.5% to 11%, much higher than one they can earn in a bank post TDS deductions. In a nutshell, though this facility is a big step by the banking industry to make home loans a convenience rather than a deb, it is advisable that funds which are set aside for not investing in ‘high risk-high return’ should only be parked in these accounts. Any investment like savings/ fixed deposit amounts, debt funds etc gives an individual lesser return than the home loan rate should be parked in this account. The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014. For further information contact Prajna Capital on 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 Funds Invest 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

JP Morgan India Banking and PSU Debt Fund Exit load change Posted: 11 Apr 2014 03:47 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   JP Morgan India Banking and PSU Debt Fund Exit load change   JP Morgan India Mutual Fund revised the exit load of JP Morgan India Banking and PSU Debt Fund to 1.50 per cent for redemption within one year and 1 per cent for redemption between one to two years. Presently there is no exit load.   The change will be effective from April 11, 2014. The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014. For further information contact Prajna Capital on 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 Funds Invest 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

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