Prajna Capital

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• You can cast your vote for AGM online
• Consider your risk appetite when investing in equities
• How to avoid rejection of life insurance claims

You can cast your vote for AGM online Posted: 02 Jul 2014 04:49 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     A growing number of companies are allowing shareholders to cast their votes online. Here's how you stand to benefit from this new facility Reliance Industrial Infrastructure will have its annual general meeting on 2 July. If you don't want to travel to Mumbai, but still want to be heard, and rightfully so, you can exercise your rights even before the AGM gets underway. Between 26 and 29 June, RIIL shareholders will have the opportunity to cast their votes online on all proposed resolutions. More and more companies are tying up with online agencies to provide e-voting facility to their shareholders. Now, all you have to do is to point and click from within the comforts of your home to be a part of the decision making process. To another city where the meeting is being held to cast their vote. e-Voting is an electronic system where shareholders can vote on resolutions in electronic form. You have to log on to a secure online platform by using a unique ID and cast your vote. In June 2012, Sebi had made it mandatory for the top 500 listed companies to facilitate e-voting for all resolutions that demand postal ballots in accordance with the Companies Act or other relevant regulations. Come 1 October, all listed companies will be required to provide this facility. Experts say shareholders must make most of this opportunity. "The mechanism makes it so much more easy for investors to cast their votes. There is no reason why shareholders should not exercise their rights now, highly empowering system and insists retail investors should participate. With this facility, the access available to the shareholder is very high. The facility is available to those holding How e-voting works Shareholders need not register for eVoting. If your email id is in the records of the issuer or agent, you will automatically receive an email from the depository. It will contain the user ID and password for logging into the online portal. If your email ID is not available with them, the login details will be dispatched to your address in a PIN mailer. All you have to do is to login to the portal using these details. At the first login attempt, you will be prompted to change the password. Then you will be asked to select the company you hold shares in. Once you enter the voting section, you will be able to cast your votes against each resolution, to the extent of the total voting rights (shares) you hold. Each resolution will be accompanied by a choice: 'for', 'against' and 'abstain'. You can vote on all or select topics. You can also split votes, 'for' or 'against', a resolution in any proportion within the total voting rights held by However, votes once cast cannot be modified and will be considered final. At the end of the voting period, the scrutinizer will collate the votes downloaded from the e-voting system and the votes received from other sources to declare the final results. The results of the voting will be declared within two days after the resolution is passed at the company's shareholder meeting. 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. 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Consider your risk appetite when investing in equities Posted: 02 Jul 2014 03:16 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 Consider your risk appetite when investing in equities The question most investors ask these days is: Is it too late to invest in equities? The enthusiasm and optimism in the markets unnerve the investor who has just about recovered from a severe bear market. He is unwilling to join in despite the mood being so upbeat. How does one invest in a market like this one? There are three layers to the play of prices in equity markets. The obvious and evident layer is 'sentiment'. The more solid layer is the fundamentals of businesses. The overarching macro economic cycle is the deepest layer. 'Sentiment' is a loosely defined term on the street but, in reality, refers to the flow of money. However promising the prospects for a market may be, without liquidity to back it, the market will remain low. The return of liquidity-driven buying interest in the market is almost always owed to leverage or borrowings. Speculators as well as a large number of investors do not stake their own money in stocks. They borrow to take a position. When the markets move up, they make a disproportionate gain for the amount of money they have staked. When markets begin to move up, and predictably post gains over sustained periods, borrowing is so worthwhile. Lenders are also more than happy to take risks, since they have the collateral in the form of the equity shares being bought. They will adjust the interest rate or the margin (10% in the above case) depending on how the prices behave. Almost all sharp increases in the price of assets, defying underlying fundamentals, can be attributed to leverage and the amount of liquidity it makes available to the market. The real estate and gold markets in India defy fundamentals systematically, since unaccounted, borrowed cash flows into it. More funds are available to borrow when prices move up, and prices move up because more borrowed money is being funnelled into the market. And, sometimes, this takes on sinister proportions and leads to fraud. This cycle is broken only when prices fall. When prices fall from 100 to 99 in the above example, the borrower repays the money but is left with a dent on his capital due to the loss. Lenders will not offer an open-ended source of funds. They will lend for short periods from a day to three days, going at the most to a week. This is because the lender will need so much more capital if lending is for longer periods. Lending for short periods means the same amount can be recycled once it is repaid. What we know in the market as profit-bookings are simply positions of borrowers who wind it up to repay the lender and take fresh positions. Margin lending by brokers works on the same principle, and is limited by the amount of money they are able to lend. It is the second layer of business fundamentals that can arrest an unbridled increase in prices purely owed to the flow of funds through leveraged operations. Stocks markets are not merely speculative dens for money to flow in and out, but also price discovery mechanisms for the fundamental value of a business. There are also a large number of investors who take informed decisions on stocks, based on the prospects for future earnings of a business. It is the presence of these players that brings balance into the markets. When leveraged players take prices to unreal highs, these players may step in to sell and book out when they believe the stock is overvalued. Both global and domestic players include such informed investors who put a check on prices. Market cycles, driven by macro fundamentals, ensure that asset bubbles driven by borrowings are punctured either by increase in interest rates, or by drop in sales and profits of unsustainable businesses. How should investors take their decision in the current markets? First, any market that corrects itself from time to time, is relatively safer than the one that only moves up every day . Every correction signifies there is no unlimited money behind the prices and, therefore, there is no fraud. It also means that leveraged players are being checked by unexpected fall in prices. Second, price is not an indicator of future prospects of a business. Unless fundamental strength is evident, there is no point in buying only because prices have moved up. Investors will find the opportunity in the next few quarters as fundamental business information moves from negative to positive. This gap between price and fundamentals is a risk and an opportunity over the next few quarters. Third, a change in economic cycles is triggered by low interest rates, supported by macro-policies, and sustained by expanding businesses. This plays out over a long period of time. Investors have all the three choices: borrow and punt to make money sometimes, or lose it sometimes; run with fundamentals and invest at every correction; or, shoot for the cyclical change and take a secular long position. Which one you choose will depend on how much money you have, how much risk you can take, and how long you can wait. Every equity story, as it turns out, is so much about what you can do rather than about what the market is doing. 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. 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How to avoid rejection of life insurance claims Posted: 02 Jul 2014 01:58 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   Life Insurance i s essential for the financial protection of your family in the event of an unfortunate death. However, insurance buyers often focus on other considerations like tax savings, premiums or investment returns, and ignore this important objective. If death claim of the insured is rejected, then the whole purpose of life insurance is defeated. In this article, we will discuss some important steps that you should be diligent about, when buying your life insurance policy. There are several reasons why life insurance companies reject death claims. We will discuss them in our article today. It is also a fact that, some life insurance companies have a better track record of settling death claims than others. Here are some important steps that insurance buyers should be diligent about, when buying their life insurance policies and even during the policy term:- Fill out the policy proposal form yourself: Insurance buyers are sometime too busy to fill out the proposal form themselves. They just sign the form and ask their insurance agent to fill out the form. This is a mistake. After all, life insurance is a critical requirement in our lives. If the agent does not fill out correct details about you, then the claim, in the event of an untimely death may get rejected, if the insurance company determines that the information in the form is incorrect. You should always ensure that you fill the proposal form yourself. You should make sure that, you fill in correct information like your age, height, weight, occupation, income, existing policy details and other details. If you have not taken your weight for some time, it is always a good idea to know what your actual weight is and fill it our correctly in the proposal form. Sometimes we do not reveal the details of other life insurance policies we hold because it takes a bit of an effort to collate all the details about these policies. However, we should furnish all these details in our proposal form. If you need clarifications then you should consult with your insurance adviser. Even if the insurance agent fills out the proposal form for you, you should peruse the form to verify that all the details are correctly filled out in the form. You should pay careful attention to the medical history section in the proposal form and ensure that all the information is correctly stated. Even if we exercise adequate diligence in filling the proposal form, errors are still possible. You should take a photocopy of the proposal form submitted to the insurance company, and verify the details again. If you come across any discrepancy, you should immediately notify the insurance company for rectification.   Do not hide medical history: Sometimes the insurance buyer or proposer does not disclose correct information about the medical conditions of the proposer and his or her family. Medical conditions like heart disease, diabetes, asthma, chronic kidney disease etc of both the proposer and his or her family must be disclosed. Sometimes we do not disclose the correct information because we fear that the premiums may go up. It is true that, the insurance company will compute the premium based on the medical history of the proposer and / or his or her family. If the medical history is unfavourable, it is quite likely that the premium will go up. But isn't it better to pay a slightly higher premium, than have your claim arising from an untimely death, rejected. If the insurance company determines that the medical history is not disclosed correctly, then it may reject the claim. If you have a habit of consuming of alcohol or tobacco or both, you should declare it honestly, otherwise your claim may be rejected   Do not avoid medical tests: Some life insurance companies may require the insurance buyers or proposers to undergo medical test for certain policies, like for example, term insurance plans. The proposers sometimes try to avoid medical test, either because they do not want to spare the time, or they fear that the tests may uncover a medical condition which may be both emotionally distressful and may cause the insurance company to raise the premium. However, it is not wise to avoid medical tests. Probably everything will be fine in the medical tests, and even if some medical conditions are identified, it will be prudent from a health perspective to undergo treatment for such conditions. From a life insurance perspective, the possibility of claims being rejected on account of pre-existing medical conditions reduces, if the proposer undergoes the medical test.   Select an insurance company with good claims settlement track record: Claims settlement ratio is an important metric to consider when choosing a life insurance provider. The metric tells us how many insurance claims were made to the insurer in a financial year and how many were fulfilled or paid, and gives you a broad sense of the probability that your insurance claim will be paid. This metric is critical in determining the reliability of the life insurance company. The table below shows the claims settlement ratios for the some of the biggest life insurers in FY 2012 – 2013. You can find the same information for all insurers in the death claims table in the IRDA annual report or on the website of some of the life insurance companies.   We can see from the table above that while LIC has the highest claim settlement ratio (97.7%). ICICI Prudential and HDFC Standard also have claim settlement ratios higher than 95%. You can see from Tables 1 and 2 that, while Aviva has the lowest term insurance premium among the insurers in consideration, its claims settlement ratio is also one of the lowest. What is a good claims settlement ratio? There is no straightforward answer. However, it suffices to say that, a repudiations percentage of more than 10% warrants further analysis. There may be genuine reasons for repudiations to be high. Therefore, one needs to look at this data over a 4 to 5 year period. If repudiations are generally low over a 4 to 5 year, with occasional spikes, one may treat the spike as an outlier. However, if the repudiations are consistently high, then it is a cause of concern. In my opinion, as far as term insurance is concerned, claim settlement track record is more important than cheaper premiums. One should always select a life insurer with an excellent record of claims settlement. Make sure your nominees are updated in your policy: Another reason from problems in realization of death claims is that, the beneficiary of your life insurance policy may not be updated in the records of the insurance company. Often we buy our life insurance policy, when we are single and name our parents as nominee. If, however, your personal situation changes and you want your spouse or child to be the beneficiary of your life insurance policy, you should make a written application, as per the procedures of the insurance company to ensure that the correct nominee is updated in the records of the insurance company. If your nominee passes away before a death claim arising, a lot of legal processes need to completed, which consume both time and effort, before your legal heir can receive the claim. Therefore, it is very important that you make sure that your nominee is updated in the records of the insurance company   Do not let your policy lapse: The insurance company will reject your claim, if your life insurance policy has lapsed before the claim. Therefore, you should always pay your premiums on time, so that your policy does not lapse. Usually insurance companies allow a grace period in which the premium must be paid, if not paid within the due date. If you fail to pay your premium within the grace period, your policy will lapse. The consequence of a policy lapsing is even more grave, if you have a term insurance policy, because your nominee or beneficiary will not get anything if your term insurance policy lapses. Pay careful attention to premium payment. Do not just rely on your insurance agent to tell you when your premium is due. Make a note in your personal calendar to remind you when your life insurance premium is due and make sure you pay the premium promptly, whenever it is due. Conclusion Life insurance is one of the most important elements of your financial plan. We must remember the essential purpose of life insurance. Life insurance is first and foremost a protection for your family, in the event of untimely death. Tax saving, return on investment and premium rate (as a percentage of sum assured) are only secondary considerations. In this article, we have discussed some important, but simple steps that insurance buyers should be diligent about when buying their life insurance policies, in order to ensure that the claim in the event of an untimely death is fulfilled by the insurance company. If you pay due attention to these steps, then you will be able to provide your family adequate financial security, even in an unfortunate event. 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 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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