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| What is Sovereign Credit Rating? Posted: 07 Feb 2015 03:31 AM PST The credit rating of a country, given by a rating agency, is called the sovereign credit rating or more simply sovereign rating. Such ratings aim to help investors gauge the level of risk that they will take if they invest in a particular country. These ratings usually take into consideration economic as well political risks for each country. `AAA' (pronounced triple A) is the highest rating that a country can get. Getting a high sovereign rating usually makes it easier for the country to borrow in the international markets. A high rating also helps the country to attract more foreign investment since a large number of investors require their investments to go only to countries rated at a certain minimum level. However, lately sovereign ratings have come under severe scrutiny. Often a country which gets a rating below its expectation, also criticizes ratings agencies. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
| Posted: 07 Feb 2015 02:36 AM PST Agents like to project traditional insurance plans as instruments that offer triple benefits: life insurance cover, long term savings and tax savings. The reality is quite different. Traditional policies are not the best form of life insurance. A term plan can give a 10 times bigger cover at a fraction of the cost. Nor are they a good investment because the returns are barely 5-6%. But they are certainly the worst way to save tax. They require a multi-year commitment and are not very liquid. Last year, the insurance regulator tweaked the charges on traditional insurance plans and introduced some customer-friendly rules. Traditional products will now offer an insurance cover of at least 10 times the annual premium. The surrender value will depend on the premium paying term of the policy and the minimum surrender value now stands at 30% of all the premiums paid. Despite these changes, the plans don't qualify as good investments. The only benefit is that the income is tax-free, but then, so is the income from the PPF and tax free bonds. Another positive feature is that you can easily get a loan against such policies. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
| Invest in NCDs for Capital Appreciation Posted: 06 Feb 2015 10:57 PM PST With interest rates likely to come down in the next few months, investors might find fixed income instruments to be a good option. The longer the term, the better it is. One such option could be the non- convertible debentures issued by non- banking financial companies ( NBFCs). IFCI's secured NCD issue, open for subscription till February 4, is offering 9.45 per cent to retail and high net worth individuals ( HNIs) for five years – 100- 150 bps more than bank fixed deposits of similar tenure. The NCD with a tenure of five years and annual coupon pay out option has a coupon rate of 9.35 per cent for corporates and institutional investors. In the 10- year tenure NCD, the coupon is 9.4 per cent for institutional investors and 9.5 per cent for retail and HNIs. The NCD issue has a rating ' A' ( stable) by rating agency ICRA. The NCDs are being offered for tenors of five and 10 years, with the option of annual coupon or premium on redemption. The face value of the NCDs is ₹ 1,000. In the case of the five- year NCDs, the value at maturity will be ₹ 1,563.87 for institutional investors and ₹ 1,571.04 for retail and HNI ones. In the case of 10- year NCDs, the value at maturity will be ₹ 2,457.5 for institutional investors and ₹ 2,480.08 for retail and HNIs. The NCDs will be listed on the stock exchanges. Another way investors can benefit is through capital appreciation. According to experts, investors can expect five- eight per cent capital appreciation over the next one to two years, given that interest rates are head down. Ideally, one should not hold these till maturity. Since these will be listed on stock exchanges, if you sell after a year, you can get long- term capital gains tax exemption and have to pay only 10 per cent tax. In that sense, they are a better option than debt MFs, where one has to wait for three years to get long term capital gains tax exemption,. The coupon offered by the IFCI NCD is 1- 1.5 per cent higher than bank FDs. However, the after- tax returns are lower than those offered by tax- free bonds. Hence, waiting for tax free bond issuances, which typically come out later in the year, might be a better idea. The post- tax returns from NCDs work out to 6.5- 7. If the coupon was higher at 11.5- 12 per cent, then maybe they would have been attractive. In comparison, tax- free bonds are offering 7- 8.5 per cent. However, keep in mind that allotment could be an issue for retail investors. The advantage of IFCI's issuance is that it is totally risk- free. However, there are other instruments offering higher returns. Corporate FDs offering higher rates would be a better option for senior citizens looking for interest income. For instance, company FDs of three year tenures are offering 9.5- 10 per cent. " A rate cut of up to 50 basis points would not affect the interest rates on debt instruments much, since it has already been factored Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
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