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| Arbitrage Funds – Invest Online Posted: 12 Oct 2014 07:35 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 Arbitrage Funds – Invest Online
Following an increase in the tax on debt mutual funds, corporate and other wealthy investors have turned to arbitrage funds. Those in the sector say since Budget 2014- 15 announced a higher tax for debt mutual funds, about ₹ 10,000 crore has made its way into arbitrage funds. A single mid- sized fund house alone is said to have accounted for about ₹ 5,000 crore. The ' bonus- stripping' feature in these schemes ( buying a security ahead of a bonus and selling the original units to book short- term capital loss; the loss booked is offset against a short- term capital gain) is proving to be a big draw for investors, as it helps them save on taxes. Those in the sector said about half the ₹ 10,800 crore of inflows into equity schemes in July could have gone into arbitrage schemes. And, these inflows were set to increase, they added. Experts say at least 10 asset management companies ( AMCs) are offering schemes with bonus stripping features, adding assets under such schemes could worth about ₹ 25,000 crore. Some fund houses, however, aren't offering such schemes due to concern they might come under the regulatory scanner. Bonus- stripping has become a way for AMCs to gather assets. Technically, there is nothing illegal in this practice, according to current income tax guidelines, but at some point, income tax authorities may feel this is a way of avoiding tax Such schemes try to exploit an anomaly in taxation, but aren't in violation of laws, experts say. There was nothing illegitimate about such schemes as long as the information on bonus announcement wasn't leaked. However, some say information on bonus declaration is leaked to select investors more than 90 days in advance. According to the provisions of the Income Tax Act, if original units are acquired three months before the record date and bonus units are allotted based on the holding of original units, the losses ( if any) on sale of the original units within nine months of the record date will be ignored in the computation of a unit holder's taxable income. Prior information on bonus announcement helps investors circumvent the restrictive rule against bonus- stripping by timing their investment and redemption date in the scheme. Through this, investors make a killing, as original units are sold after the allotment of bonus units, which are sold after a year to save on capital gains tax. For instance, an investment of ₹ 100 on a ' bonus- stripping' plan with an assumed bonus of 85 per cent and returns of 8.5 per cent will result in a gain of at least ₹ 20, which is tax- free for a typical holding period of 15 months. On a tax- adjusted basis, the returns could be as high as 35 per cent. Bonus- stripping provides a tactical way of reducing tax pay outs. More, since fund houses offer this strategy within the regulatory framework, it turns out to be a win-win situation for both AMCs and investors. Many say to save such schemes from the regulatory axe, fund houses should avoid divulging bonus information to investors. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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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 |
| Unit Linked Insurance Plan - ULIPs Posted: 12 Oct 2014 03:20 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Unit Linked Insurance Plan
· 1. What is unit linked insurance plan?
ULIPS provide for benefits of protection and flexibility in investment, it is insurance cum investment plan. The allocated premiums will be applied to purchase units as per the fund type based on the ongoing NAV . NAV is the value per unit of the scheme. They provide multiple benefits like life protection, investment and savings flexibility, options to take additional covers, tax planning, etc. but they are riskier compared to other schemes.
· 2. Who can buy a unit linked insurance plan?
You can buy a ULIPS as an investment purpose, policyholder have a right to choose between an investments options of debt and equity. It should balance with both your investment and insurance needs.
· 3. What is difference between investing in ULIPS and Mutual fund?
Both ULIPS and mutual fund carry market risk and depend on market returns
· 4. What are the types of ULIP plans available in market?
Types of ULIPS depend on the purpose of it such as ULIP for retirement, ULIP for wealth creation, children education and health benefit.
· 5. How to choose a best ULIP plan to get maximum benefit?
You should know the percentage of risk that you can take, understand the charges of different plans, compare the past performance of your plan, decide the amount of premium to be paid and risk cover you need, know about how much premium is being insured and how much is invested, find out if any tax benefit is being offered, check if there are any switching options available and charges on it.
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: 11 Oct 2014 10:55 PM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 Term Insurance Plan · What is a term insurance plan? Term insurance plan is a form of life cover, it provides coverage for defined period of time, and if the insured expires during the term of the policy then death benefit is payable to nominee. Term plans are specifically designed to secure your family needs in case of death or uncertainty. It provides specific amount of coverage for specific period of time. · 2. Why is the preimums charged for taking a Term Insurance Policy very low? The premiums for Term insurance policies are the lowest among all the types of life insurance policies. The premiums are low since there is no investment component and the entire premium goes for covering the risk. So if the policy holder expires during the insured term, the death benefit is paid to the nominee. There is no survival or maturity benefit once the policy term expires. There may be some plans that offer to return the premiums paid by the policy holder if he survives. · 3. How to choose a best term plan? To choose best term plan you should consider important factors like: · 4. Is there much difference in premium across term plans? The premium in the term plan could vary from one company to another and as the tenure of your policy increases, the premium for the same sum assured increases. · 5. Are there any eligibility criteria for term insurance plan? The eligibility criterion for term insurance plan varies according to the insurers, the minimum age of entry is 18 years and the maximum age limit is 65 years. · 6. Do term insurance plan have an option to convert it to other traditional plans? The convertible option is provided to you in term insurance plan, and you can convert it to the whole life insurance policy or the endowment plan any time during policy tenure without additional charges. · 7. If I missed a premium, is there a chance that my policy may lapse? If you miss the premium then the first thing is to know the status of your policy through your agent or insurance company. According to Life Insurance Corporation of India (LIC) a grace period of 30 days is allowed where the mode of payment of premium is yearly or half yearly and 15 days in case of monthly payment. · 8. Can I surrender an insurance plan? Yes, you can surrender an insurance plan that is to exit from a plan before maturity. From this the surrender charges would be deducted which varies from policy to policy. No charges are levied if the surrender is done after five years. · 9. What are the risks involved in surrendering an insurance plan? You should only terminate the policy if you feel that it does not fulfil your requirements and if you are in need of cash with no other options left. If you surrender the policy early i.e. three years from its inception then surrender value would be at least 30% of premiums paid, and some insurance companies also eliminate the premium paid in first year. · 10. What are the smokers and non-smokers criteria in the term plan? It includes the smokers or users of any tobacco products, such as chewing tobacco etc. Some smokers who have quit smoking are also eligible for favourable premiums. However the period varies among insurers. · 11. What is difference between a participating and non-participating policy? A participating or profit policy would enable the policyholder to share in the profits of an insurance company which depends on the investment returns of the insurance company. In non-participating policy there is no profit sharing with the insurance company. · 12. Will I get a tax benefit on the insurance premium? Premiums paid for all life insurance policies are exempted from tax up to a maximum of Rs 1.5 lakh under Section 80C of the
1961. The claim amount received by the beneficiaries or bonus in the hands of the policyholder is tax free under Section 10 (10D) of the Income Tax Act. 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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