Prajna Capital

L&T Mutual Fund AMC
BNP Paribas Income and Gold Fund merge with Monthly Income Plan
Get Tax Benefit on Second House

Posted: 24 Nov 2015 04:00 AM PST

I believe one of our biggest strengths is our brand name. Secondly, our comprehensive product bouquet offers a wide choice to investors and is complete in most respects. Another strength is our extremely well-experienced team to manage the respective functions. We have been expanding our geographical presence to almost 60 cities.

On the growth path Kailash Kulkarni, CEO, L&T Mutual Fund As far as our weaknesses are concerned, we are a relatively new player. In contrast, our peers have been around for more than 15-20 years and have been more established. Having that said, we are amongst the top 15 players in the mutual fund industry. Another weak area for us is that various distribution entities prefer longer track record for mutual fund players. Not being in the industry for long does work against us at times, but given our strong fund performance this is not a big deterrent. Lastly, we do not have an international presence as compared to some of our competitors.

Challenges

From a business perspective, a key challenge is bringing a larger number of investors to invest in mutual funds. We have run investor-awareness programmes across the length and breadth of the country, both in English and in the regional language of respective cities. We are also engaging with non-mutual-fund investors/first-time investors, and in smaller cities we have been working with distributors and local trade bodies that are keen on increasing awareness and education on mutual funds. This, I believe, should help in the long run. Another challenge is that the number of active distributors is roughly 15,000, which makes penetration of mutual funds very low. As such fewer people are covered vis-a-vis insurance. On the investment side, till the economy does not kick off or grow, increasing volatility on account of global factors will continue to make managing investments that much challenging.

Competition

In a developed market like the United States, there are thousands of mutual funds, each having their own niche and specialty and catering to a large investor base. In contrast, India only has 44 asset management companies. I believe that as the market grows in size and investor base, we could see more players entering the mutual fund industry.

Retail reach

As a business, growing the retail reach is one of our key focus areas. Retail assets bring in many benefits such as longevity of assets and stability to the portfolio. We are now in close to 60 cities and will be opening few more branches in this financial year to expand our presence. We believe that mutual funds are a convenient product for any individual investor; they give you all benefits of flexibility and choice of investments, liquidity and reasonable post-tax returns. Every investor should invest in mutual funds and that too for the long term.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

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

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

BNP Paribas Income and Gold Fund merge with Monthly Income Plan

Posted: 24 Nov 2015 03:25 AM PST

BNP Paribas Mutual Fund has decided to merge BNP Paribas Income and Gold fund into BNP Paribas Monthly Income Plan. The merger shall be effective from 31st October. There will be no change or alteration in the fundamental attributes of BNP Paribas Monthly Income Plan.

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 -

Invest Online

Download Application Forms

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

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

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Download Mutual Any Fund Application Forms

Get Tax Benefit on Second House

Posted: 24 Nov 2015 03:06 AM PST

Many people with a second non- rented property resign themselves to the fact that they have to pay income tax on the amount they have supposedly received. This amount is the higher of the municipal rates and the market rate of a similar property in the same locality.

There is a way out. According to tax experts, if you have not rented out the property and can provide sufficient proof that you tried but did not get a tenant, the taxman may give you relief.

If a person has tried to let out the house but failed to do so despite genuine efforts, he or she can claim deduction as vacancy allowance under Section 23( 1)( c) of the Income Tax Act. " To ensure that such claims are accepted, a person needs to preserve the proof of efforts made. For example, a clipping of an advertisement in a newspaper, listing details of the house on property websites, and pictures of signboard that was used to advertise

Tax experts say that income tax ( I- T) department is stringent about this deduction which has led to several litigations.

Instead of claiming the entire amount, chartered accountants suggest claiming part deduction, so that the assessing officer sees it kindly.

Divakar Vijayasarathy, co- founder of MeetUrPro. com, says calculating the deduction is complicated. A person needs to compute rent under various conditions to arrive at an annual value, which is the inherent capacity of the property to earn income. The taxpayer needs to calculate ' municipal value'. This is 12.5 times the annual property tax. The owner also needs to get the ongoing rents for the similar property in the area from brokers and arrive at ' fair rent'.

Then, there's actual rent received. In some cases, property is governed by Rent Control Act and for this the I- T department has a ' standard rent' value.

For example, a person had let out a property for four months at a monthly rent of ₹ 50,000. The fair rent is ₹ 40,000. The municipal value is ₹ 35,000 and standard value is ₹ 30,000.

To calculate the annual value, he will need to follow three steps. In step one, he will first take the higher of municipal value and fair rent. In the example, it will be ₹ 4.8 lakh (₹ 40,000 × 12). In step two, he will need to compare this with the standard rent and take the lower of the two, which will be ₹ 3.6 lakh (₹ 30,000 × 12).

Finally, he will need to check the higher of step two figure and the actual rent, which is ₹ 6 lakh (₹ 50,000 X 12). This is the annual value of the property. Based on this, the income tax department gives specific formula to calculate the deduction aperson can claim and arrive at the income from house property.

To arrive at the tax liability, the owner can deduct municipal taxes and 30 per cent standard deduction ( money spent on repair and upkeep) from the income from house property.