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| Posted: 17 Jun 2014 02:01 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Car Insurance Riders
A comprehensive motor insurance policy might be of little use in the monsoon season, especially if you have an expensive car. A standard motor policy only pays for direct damages like an accident.
Also spare- part replacement will fetch you a fixed amount with a standard policy when you might have spent more. Say, you need to replace your car's wind shield, you may get only ₹ 3,000 from the insurance company when the new windshield would have cost you around ₹ 10,000.
That's where add- on covers or riders step in. And, there is no waiting period applicable to motor insurance riders. So, these can be bought and used whenever there's a need.
One should definitely have the engine protector cover ( also called hydrostatic lock cover). During the monsoon, many areas get flooded. Trying to start the car while it is submerged in water could be damaging. Repeated tries may break down the car. This phenomenon is known as hydrostatic lock. Repairing the engine is costly.
Engine damages aren't payable under a regular motor insurance policy. Cost: 0.5 to two per cent of the insured declared value (IDV) of the car. So, if a car's IDV is ₹ 5 lakh, you will have to spend ₹ 2,500 to ₹ 10,000 for this cover.
In case of water logging, not only one or two parts but the entire electrical circuit could need replacing. This could be expensive and hence, an add- on policy would help.
In case of flooding, you might find yourself stranded due to engine damage.
Roadside assistance cover comes to the rescue and the car is taken to the nearest garage by the insurance company's vendor. The cost of this add- on cover is also in the range of 0.5 to two per cent of the cars IDV.
Then there are small expenses ( 5- 10 per cent) that consumers have to bear against wear and tear of parts —nuts and bolts, screws, washers, grease, lubricants, clips, AC gas, bearings, distilled water, and so on. The company agrees to cover expenses incurred towards "those items or substances of specific use which at the time of loss are either totally consumed or rendered unfit for further consumption" arising out of damage to the vehicle insured and/ or to its accessories caused by any peril as covered under the policy. This will cost another 0.2 to 0.4 per cent of the car's value.
After a car is damaged in the monsoon, the difference between the invoice price and the insured value of the car is higher than the price of a new car. The return to invoice cover bridges the gap and makes an investment in a new car of similar model easy.
Over a period of time, no claim bonus (NCB) can be accumulated to claim a discount of up to 50 per cent.
But even a single claim can bring this down to zero. To protect this, you could buy an NCB retention cover. Here, the customers status of a no claim will be restored.
Always carry a copy of the policy document and the toll- free number in your car. Most car manufacturers offer free pre- monsoon check- ups, which prepare your car better. You could get anti- rust treatment and an under- body coat before the monsoon season starts. This will cost about ₹ 4,000 to ₹ 8,000 each, depending on the model.
Many add- on are bundled as a package by insurance companies. If you end up buying all of these, you will pay a high premium. Understand your needs and buy accordingly.
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 | ||||||||
| Posted: 17 Jun 2014 01:03 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Investing in NCDs
Experts advise individuals to take a call on NCDs only after considering their ratings and post-tax returns, If a company goes bankrupt, secured NCD holders will be paid off first
Two non-convertible debenture (NCD) issues from Muthoot Finance and ECL Finance are available in the primary market. ECL Finance offers 12% for its 70-months NCD and Muthoot Finance offers tenures ranging from 24 to 75 months, with interest rates varying between 10.5% and 11.75%.
If you have a time frame of 70 months and above, opt for ECL Finance as it pays higher interest rates. If you have a shorter time horizon, go for Muthoot Finance. He feels these NCDs make better sense for investors whose income is not subject to tax, or are in the 10% or 20% tax bracket, and they can allocate 1015% of their debt portfolio to NCDs to earn higher returns. Investors to consider other factors like the rating, liquidity and post tax returns before finalising investment in NCDs.
If a company goes bankrupt, secured NCD holders will be paid off first by selling the company's assets, and then whatever is left will be used to pay unsecured debtors. He prefers secured NCDs of Muthoot Finance and ECL Finance. Also, NBFCs carry higher risk. Muthoot Finance is primarily a single-prod uct company de uct company dependent on gold loans. Fluctuations in the price of gold could impact its earnings, while ECL's is primarily into businesses relating to the capital markets business. Any slowdown in the capital markets could affect its earnings. That is why many advisors caution against going overboard on these NCDs. If you have already have invested in the earlier issuances of Muthoot and ECL Finance and do not have a further appetite for unsecured and AA rated NCDs, you could avoid these issues.
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 | ||||||||
| Multicap Mutual Funds - Flexible Funds Posted: 16 Jun 2014 10:20 PM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Multicap Mutual Funds - Flexible FundsFor a compact yet all-weather portfolio, multi-cap funds are a superior alternative to large-caps These are funds where the fund manager can move investments between large-cap, mid-cap and small-cap funds as required by his perception of how the equity markets are going to behave.
Sometimes, it explicitly states that one should not invest in a large-cap fund because it limits the fund manager to just one kind of investment, thus placing artificial limits on the portfolio. This is actually the same argument that is valid with regard to any specialised fund, whether sectoral or thematic, or indeed, capitalisation based. The underlying principle is that one should never invest in anything but a completely diversified fund. As the market twists and turns, your fund manager must have the freedom to move to invest in any sector, theme or size of company. When you invest in a mutual fund, you are paying a fund manager to make investing decisions for you. It's his or her job to figure what type of investment is best at the moment. Whether its large-cap or small-caps or infrastructure or technology--or all of them--which are the right areas to invest in, that's part of the service that you are supposed to get when you invest in a mutual fund. However, when you get tempted by a fund that's supposed to limit itself to a particular subset of the market, then you are pre-empting the fund manager and making an investment choice yourself. Without fail,, the time period over which a specific type of investment does well is a subset of the time period over which the entire market does well. This may not appear to be the case over a short timeframe but in the long run it is always true. At almost every specific point of time, it looks foolish to have invested in a completely diversified funds rather than a limited mandate one. However, it's only when you take a long period into account, you realise that the identity of the type of fund that is doing well keeps changing in unpredictable ways.
It comes as a surprise to many investors to hear large-cap equity funds being described as having a limited mandate, which is something we normally say about sectoral funds. However, that's the way it works. There are prolonged periods in the equity markets during which large cap investments do worse (or less well) than mid-cap or small-cap investments. The last few weeks have been such a phase and this has simply drawn attention to this fact. A fund that is limited to large cap investments can fall far behind during these high-growth phases of the markets. It can also miss out, by design, many good investments.
The apparent contradiction arises from the difference between a portfolio and a single fund. Till a few years ago, there weren't too many flexible, multi-cap funds from which an investor could choose. The default way to achieve a balance was to invest separately in good large-cap, mid-cap and small-cap funds. However, things have changed now. Investors have a good choice of multi-cap funds with long track records. Staying invested in a flexible way no longer requires investors to invest in a combination of different types of funds.
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 |
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