Prajna Capital

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• Investing in Diamonds
• Reliance General Insurance
• Capital Gains Tax from Mutual Funds Investing

Investing in Diamonds Posted: 26 Nov 2015 03:32 AM PST       Diamond prices have come down in the past three years. If you plan to invest these rocks, here's what you should keep in mind.   It is the season of festivals and weddings, and consequently, jewellery shopping. While gold remains a favourite in vestment-cum-consumption option, in recent years, many have opted for diamonds over the yellow metal. The Diamond Insight Report 2015 released recently by DeBeers ranks Indians amongst the top buyers of the precious stone in the world. "Driven by a widening consumer base, economic development and increasing volumes, India's diamond consumer market is now one of the world's largest," it says. And demand is only growing. The Indian economy is in a growth phase and therefore, demand for a luxury item like diamond is bound to grow. What's more, DeBeers forecasts a golden run for the stone. So should you head to the nearest jeweller right away? Diamonds as investment How should retail investors rate diamonds as an investment avenue? In India, diamonds are bought for adornment. However, people can consider investing in diamonds from a long-term perspective as demand is only likely to grow. He says certifications from independent laboratories has played a big role in instilling confi dence in retail investors, spurring demand for diamonds. The DeBeers report, however, paints a subdued picture for the industry in 2015 on the back of a strong US dollar and low demand in China. But the long-term prospects remain bright. "Challenges faced by the sector in 2015 are expected to be short-term Going by the probability of demand going up, diamonds present an attractive investment opportunity. This apart, the abolition of wealth tax has added to the glitter this year. Note that diamond prices depend on the global economic scenario. A bleak outlook could result in a fall in prices. For instance, the diamond index has declined to 127 in September 2015 from 145.13 a year ago (see table). Under the magnifying glass Though prospects for the `girl's best friend' look good, there are other parameters you need to consider while buying diamonds. Despite certifications, buying diamonds continues to be tricky as unlike gold, there is no hallmarking to assuage concerns. Financial planner Harshvardhan Roongta says retail investors should venture into this territory only if they have the know-how to spot the genuine stuff or have acquaintances in the industry who can help them to do so. "Even in case of certified diamonds that come with a report on price, investors must negotiate.This is because diamonds are sold at a discount on the price," he says. You need to focus on the 4 Cs--Cut, Clarity, Colour and Carat weight. One of the biggest drawbacks is the lack of transparency in determining the buy-back value of diamonds. The buyback policy will vary from jeweller to jeweller. In an ideal situation, a solitaire will fetch up to 95% of the market value. This figure could come down to 85-90% in case of smaller diamonds. While established jewellers could offer a buy-back value of around 85% for diamonds purchased from them, the returns could be much lower in other cases. If you were to buy diamonds from X and sell it to Y, the discount could go up to 30-35%, depending on the buyer's opinion of the stone. Therefore, it is best to enquire about your jeweller's buy-back policy before making the purchase even if you do not intend to sell. Lack of transparency in pricing is more acute when it comes to smaller diamonds. Compared to gold and financial products, transparency and liquidity in diamond pricing have a lot of catching up to do. If you are absolutely keen on buying diamonds with investment as the objective, you should look at buying diamonds one carat and above. Smaller diamonds are unlikely to fetch worthwhile prices 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 --------------------------------------------- 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 in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Reliance General Insurance Posted: 26 Nov 2015 12:07 AM PST   Reliance General Insurance Co Ltd Reliance General Insurance is private general insurance company of India. It offers different category of products like Motor insurance, Travel insurance, Health insurance, Home insurance and Student travel insurance. Most of the products are also available online. With the help of Reliance automated policy production and billing, it helps in faster claim settlements. Products offered by Reliance General Insurance Company: Motor Insurance:- Reliance motor insurance offers two-wheelers and car insurance. Reliance car insurance covers accidents, theft, natural calamities and personal accident. As per the Motor Vehicle Act, third party liability is compulsory and Reliance car insurance covers liability for property damage, injury and death. Some of the key features of car insurance are: you can buy online policy, cashless facility over 2100 network garages, online renewal of policy and no claim discounts. Like the car insurance, two-wheelers policy also covers accidents, theft, natural calamities, personal accident and third party liability cover. Health Insurance:- Health insurance generally covers the hospitalization expenses. Health policy comes with two options of individual and family floater policy. Individual Health policy generally covers each individual separately and family floater policy covers group of members in one policy with one sum assured. Some of the key features of Reliance health policy are no room rent sub limits, no co-payments, no claim bonus, pre-existing diseases get covered after 4 claim free years and no loading in premiums because of claim. ICICI Pru also provides for critical illness plan which covers major disease like heart attack, kidney failure, stroke and cancer etc. Health insurance is yearly contract with the insurance company, so every year sum assured get renewed after the payments of renewal premiums, but in case of critical illness, policy gets stopped after happening of any of the mentioned critical illness. Policyholder receives lump sum amount on happening of the mentioned critical illness. Travel Insurance:- Travel Insurance come into picture whenever we are traveling to foreign countries. Travel insurance covers policyholder against loss of luggage, passport or other belongings, Flight delays, accidents and theft. This insurance is also compulsory when you travel abroad. Whenever any person plans to visit abroad he should take one. If a person is planning to take more than one trip in a year then Reliance comes with Annual Multi Trip Travel Insurance and separate policy for senior citizens who cover the unexpected illness and accidents with medical and non medical expenses. Student Travel Insurance:- Like the normal travel Insurance policy, such types of policies are available for students who are studying abroad. Student policies are available as per the university requirements. Student policy tenure available as per the course duration is upto 2 years. Student policy also covers personal accident, loss of passport, loss of checked baggage, bail bond and study interruption. Home Insurance:- Home Insurance covers if any damage happens to essential things from fire, lightning , earthquake, storm, flood and inundation. Comprehensive Home insurance covers the building and the content of the house. Home insurance comes with some exclusions like willful destruction of property, damage by war, pollution, contamination and loss of cash. 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 --------------------------------------------- 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 in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Capital Gains Tax from Mutual Funds Investing Posted: 25 Nov 2015 11:41 PM PST   Capital Gains from Mutual Funds Equity and Equity-oriented Hybrid Funds Short-term holdings (less than one year) Long-term holdings (more than one year) Taxed as short-term capital gains, currently 15 per cent Not Taxed All Other Funds Short-term holdings (less than three years) Long-term holdings (more than three years) Taxed as per applicable marginal rate of tax 20% with indexation Dividend Income from funds Type of investment Dividend tax Equity and Equity-oriented Hybrid Funds None All Other Funds 25%* * for individuals and HUF, plus surcharge as applicable and 3% education cess                               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 --------------------------------------------- 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 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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