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| Single Window into your MF Holdings Posted: 22 Nov 2014 11:35 PM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 Single Window into your MF HoldingsSEBI is looking to come up with a single account statement for every investor to tackle the problem of monitoring one's investments
For an industry which prides itself on being very investor-friendly on transparency, disclosures and costs, Indian mutual funds have failed to address one long-felt need of their investors - that for a single-window investment experience. Anyone who owns a number of mutual fund schemes would, at one time or another, have been thoroughly frustrated by the difficulty of completing KYCs and dealing with multiple fund houses when making their investments.
Monitoring your investments spread across different fund houses is even tougher, with each fund issuing a separate accounts statement, that too in a non standardised format. If you own many funds, as most people do, you are deluged in a mass of email or paper statements that you have to file away like a Government office.
This is in sharp contrast to stock market investments, where from day one, you receive a single consolidated demat statement that neatly captures your transactions as well as month-end holdings in all shares.
SEBI is now looking to tackle this problem (of monitoring your funds) by directing all fund houses and mutual fund registrars to coordinate with the stock market depositories (NSDL and CDSL) to come up with a single account statement for every investor's shares as well as mutual fund investments. In a circular issued on November 12, it has directed depositories, AMCs and mutual fund registrars to come up with a consolidated accounts statement for all their investors from the month of March 2015. These accounts statements will have the following features: · The CAS (as the consolidated account statement is called) will give you, a single view of all your shares and mutual fund investments · If there are transactions in shares or funds every month, you will receive CAS at every month-end. If there are no trades, the statement will be given at half yearly intervals · The consolidation across schemes will be done on the basis of the investor's PAN. Sharing of your PAN number is thus essential to get this facility · Where you have both a share demat account and mutual fund investments, it is the depository (NSDL or CDSL) which will send you this statement. If you don't own shares at all, it is the AMC/mutual fund registrar who will send you this statement · If you opted for email statements, the statement will come to you through email. But you can opt for a physical statement too · All investors will be given an option in January 2015 to opt in or out of this facility
Now, tech-savvy investors may wonder why anyone needs this once-a-month CAS at all. For people who store their portfolios (both stocks and mutual funds) in professional tracking tools on the web, this 'innovation' of a consolidated statement comes several years too late.
Not only do these investors already have a live update on the performance of their investments, any time they log on, most portfolio tracking tools also offer a host of analytics that slice and dice their portfolios for them. So you have alerts on fund and stock dividends, bonuses and splits, sector wise breakups of your funds/stocks and a host of other utilities.
But CAS can certainly be a useful tool for the thousands of Indian mutual fund investors who either aren't tech-savvy (many senior people are extremely investment savvy but not internet-savvy) or lack good internet connections that are essential to use such services. One does encounter scores of readers, who painstakingly track their mutual fund returns by picking up the NAVs from newspapers and then working out their funds' return each week or month. The CAS may prove a godsend to such investors.
In fact, the main problem that many of these investors face today is that of 'financial exclusion'. Because most mutual fund transactions have moved to the online mode and customer services to email, such investors find it extremely difficult to obtain even a reasonable level of service from the fund houses. Their requests for physical statements often fall on deaf ears.
It would be good if SEBI takes special care to ensure that physical CAS does reach out to all these investors. 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 | |||||||||||||||||||
| HDFC Life Click 2 Protect Plus Posted: 22 Nov 2014 10:02 PM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 HDFC Life Click 2 Protect Plus
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 | |||||||||||||||||||
| Fixed Deposit Investment Strategy Posted: 22 Nov 2014 06:03 PM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300 Fixed Deposit Investment Strategy
The rapid fall in inflation in the last couple of months is the first indication that the tide is slowly turning in the debt market. Interest rates are now expected to start their downward move and it's now only a question of when this happens. This requires a specific strategy for debt investments. A key component of this entire exercise would be the fixed deposit ( FD) investments that would require the investor to take a measured call on how they would actually go about the whole process. Here is a closer look at how investors can gain from effectively by planning for their bank FDs. Why FDs? For someone who does not want any kind of uncertainty with regard to his or her investments, FDs would be the right choice. Once the initial investment is made, there is little to worry about and one can then concentrate on other aspects of the whole portfolio. Lock in for a longer time One of the key points with a bank FD is that the investor can lock themselves into a specific rate of interest when they make an investment into the instrument. This means that if they invest in, a three- year FD at 9 per cent per annum, then the interest rate remains at this level for the entire duration of the deposit even if rates change in the interim period. The changes in the FD rates will impact only prospective investors. Those who are already invested in FDs will get rates that were applicable when the investment was made. Since interest rates are expected to go down, the smart strategy for investors today is to ensure that they lock themselves into a fixed deposit for a longer time period so that they continue to earn higher rates of interest even if rates were to go down. The trend on the inflation and interest rate front can change very quickly and, hence, investors should ensure that they are able to earn a higher rate of return for the maximum time period that is possible. How long is preferable? The next question is how long should investors lock in their money in FDs? Usually a period of two to three years is taken for a longer- term view. But given that interest rates could move down from the current levels, one can look at a longer time period, of say five to seven years. If you are getting a good rate of interest for this time period then it makes sense to invest the money and enjoy the benefits. The worry with taking a shorter- term deposit is that you would have to reinvest the amount as the deposit matures. The rates prevailing at the time of reinvestment may be less, which could lead to a future loss of income. However, by locking into higher rates now, you can ensure a positive real rate of return at a time when inflation starts to ease. Outlook on interest rates Currently, a three year FD would fetch you anywhere between 8.5 per cent and 9.25 per cent, depending on which bank you choose. In case of some banks, a five- year term deposit offers a higher rate than a three- year deposit, while in case of others, the three- year deposit may be offering the peak rate. The rates offered by banks depend on the liquidity available with each bank, their requirement for funds of that tenure as they try and match the loans of the same tenure and competition. So, research the rates offered by various banks before choosing which bank to put your money in. As the inflation situation eases, interest rates are likely to fall in the coming months. There already has been a realignment of the rates by several banks. They have reduced rates in some time buckets, while increasing it in some others. Most of the realignment is taking place in the shorter- term tenures. For instance, State Bank of India has raised the rate on FDs of one to three years, but reduced it on FDs of 180- 210 days by 25 basis points. More banks are likely to follow suite. And a rate cut by the Reserve Bank of India would put further pressure on FD rates. So, the overall outlook is pointing towards a fall in interest rates in the coming months. Taxation One important factor to consider when it comes to investing in FDs is the taxation. The interest earned on FDs is taxable, as per the income slab of the investor. The interest earned is added to the income tax, under the head income from other sources and this gets taxed at the applicable tax- rate for the investor. For example a person who falls into the highest tax- bracket would find that the tax rate would work out to 30 per cent plus surcharge. Earlier taxation was a big drawback for FDs. But post this year's Budget, FDs are more- or- less on par with debt MFs when it comes to taxation. Now any debt MF that is redeemed before three years attracts short- term capital gains. This would be taxed as normal income at the marginal rate of tax and, hence, this would be as per the slab that the individual falls under. At the same time the long term capital gains, which is for investments held for a period of more than three years, the tax rate would be 20 per cent with the benefit of indexation. This could help investors who fall in the highest tax bracket and want to invest for a longer period. For the dividend option the dividend distribution tax burden works out to slightly more than 28 per cent. However, there is no certainty about the earnings from debt MFs, since they are marked- to- market and could offer higher returns than FDs. Hence, a direct comparison with the fixed deposit rates would not be possible as returns here would depend upon the market conditions. Also, remember than even if bank cuts Tax Deducted at Source ( TDS), you will still have to pay tax on the interest as per your income slab. The bank will cut TDS at 10 per cent. If you fall in a higher tax slab, you will have to pay the difference. Those of you who have no other source of income can submit Form 15G stating the same. The bank will then not cut TDS on the interest. Senior citizens must submit form 15H to avoid TDS. 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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