Prajna Capital |
- How much insurance does one need?
- MNC Funds
- Wholesale Price Index (WPI) and Consumer Price Index (CPI)
| How much insurance does one need? Posted: 28 Jun 2014 06:28 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Life insurance penetration in India is very low, primarily because of the low level of financial literacy in the country. But, it is surprising that even high income earners are not adequately insured.
Life insurance is meant to provide financial support to your family and dependants if something untoward happens to you. So, the life insurance cover should be big enough to generate an income for the family of the insured person. This would take care of the living expenses of the family. But, the cover should also settle all outstanding loans as well as provide for big-ticket one time expenses, such as a child's higher education and wedding.
The study by the online portal shows that despite the popularity of online term plans offering huge cover at low rates, individuals in the high income bracket of `35 lakh-40 lakh per annum are inadequately covered. We also noted that the insurance cover did not increase in the same proportion as the increase in income.
Adequate life cover won't cost the earth if you buy the right type of policy. Traditional plans offer a smaller cover because they are essentially investment vehicles. At the age of 3035 years, a person will be required to pay a premium of almost `8 lakh-10 lakh a year for a cover of `1 crore.
One should not be lulled into thinking that the life insurance cover he has is enough. A sum of `1 crore might sound big, but even an inflation-adjusted monthly withdrawal of `50,000 will deplete the entire corpus in less than 20 years. This is when we have assumed annual returns of 9% from the corpus and an inflation of 8%.
Traditional life insurance policies, which offer very low cover, but charge a high premium, are the focus of insurance agents because they fetch higher commissions. An agent will pocket `30,000-35,000 if he sells a traditional policy with an insurance cover of `10 lakh. A term insurance policy with a cover of `50 lakh, on the other hand, barely earns him `1,0001,500. The study finds that protection is a lower focus area and a larger portion of the premiums are going into savings-cum-insurance plans.
The good news is that insurance companies are not only offering big covers, but are actively encouraging buyers to take larger covers. Some even offer a discount if the buyer takes a high-value cover. Apart from that, when an online buyer keys in his income details, he is prompted by the website to go for a cover commensurate with his income.
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: 28 Jun 2014 03:14 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online MNC funds
Mutual funds ( MFs) which have concentrated on the multinational corporation ( MNC) theme have done exceedingly well in the past five years, as as well as the top sector funds. Birla Sun Life MNC Fund and UTI Fund have returned 26 per cent and 23 per cent annually in the past five years. These two schemes manage about ₹ 750 crore. The best performing fund category, fast- moving consumer goods (FMCG), returned 29 per cent annually in the same period. The pharmaceuticals and information technology categories returned 27 per cent and 22 per cent, respectively, according to Value Research. In this period, the Sensex returned 12 per cent annually. What makes MNC funds different from others? As the name suggests, their portfolio is loaded with pure MNC or joint venture stocks. For instance, the top three holdings of UTI MNC Fund are Maruti Suzuki, Bosch and Eicher; all three are automobile and components companies. Birla Sun Life's MNC scheme has ICRA, ING Vyasa and Honeywell Automation – two financials and one engineering firm. HDFC Top 200, one the top performing funds, has State Bank of India, Infosys and ICICI Bank as top picks. Mahesh Patil, co- chief investment officer at Birla Sun Life MF, says the biggest advantage of MNCs is their transparency in terms of management, cash flow, balance sheet and an absence of corporate governance issues. "These funds are meant for those looking for less volatility and steady returns from their portfolio," he adds. The other advantage of these funds is that these don't focus on any one sector and, hence, are less risky than sector funds. But investors should have a horizon of three to five years. As these funds can perform in both bull and bear markets, experts believe there is more upside to these. One could take 10 per cent exposure in these. The investor interest in these funds, beside the performance, is because there are expectations that some of these might delist, after the Securities and Exchange Board of India said listed private sector companies needed a public shareholding of at least 25 per cent. This means promoters of listed entities need to bring their stakes to below 75 per cent, by diluting their holding or delisting the stock. Last year, the parents of three MNCs – Hindustan Unilever, GlaxoSmithKline Consumer Healthcare and McGraw Hill Financial – had announced voluntary open offers to increase their stake to 75 per cent. The delisting story might, however, take a back seat for two or three years. Given the sharp rise in share prices and the rupee wobbling around 60 a dollar, the parent company will have to cough up a higher sum if it wants to delist. Analysts believe many companies which announced open offers might delist over the next two to three years. Says Vidya Bala, head of MF research at FundsIndia. com: "There's a renewed interest in these funds also because they have started investing in cyclicals ( engineering and capital goods) now as opposed to defensives ( FMCG and pharmaceuticals) before the current rally. That's why these funds have been able to perform well in this rally
Leave a missed Call on 94 8300 8300
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 | ||||||||
| Wholesale Price Index (WPI) and Consumer Price Index (CPI) Posted: 27 Jun 2014 08:07 PM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Wholesale Price Index (WPI) Consumer Price Index (CPI)
The sustained increase in general prices of goods and services over time is called inflation. WPI and CPI are two primary measures of inflation.
WPI reflects the average change in price of goods that are bought and sold in the wholesale market. The various commodities taken into consideration for computing the WPI can be categorized into primary articles, fuel, power and manufactured goods.
An important point to make note of is that WPI does not include the cost of services.
CPI is computed by executing a weighted average on a set of goods and services. The computation of CPI takes into account the actual inflation that affects the end consumer. CPI is thus a reflection of changes in the retail price of goods and services.
As WPI accounts for changes in prices of goods at a wholesale level, it fails to reflect the actual burden borne by the end consumer.
However, WPI is the primary measure that is used by the Indian central government to measure inflation.
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
2.Franklin India Smaller Companies 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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