Prajna Capital

SBI Magnum Midcap Fund Online
Stock Options
Public Provident Fund Online

Posted: 28 Jun 2016 04:42 AM PDT

Invest SBI Magnum Midcap Fund Online

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

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 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

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Stock Options

Posted: 28 Jun 2016 02:16 AM PDT

To the lay stock investor, derivatives are an unfamiliar, and somewhat, forbidding universe. However, for a few uninitiates , the mystique of options, at some point, has an irresistible pull which compels them to dabble in the products without fully comprehending their structure.

1. What are the types of options?

Let us consider here options on Nifty , the knowl edge of which can be ex trapolated to stock and other types of options.

Those with a bullish view, but low-risk appe tite, prefer to buy a call option on Nifty , while the bearish among traders prefer buying a put on Nifty . A bull can also sell puts confident that the market won't fall in a cer tain time horizon.

Similarly a bear, with a converse view, can sell calls on the index. But here, we only will consid er option purchase.

2. When do call and put buyers gain ?

A call buyer gains when the Nifty breaks above the strike of the option purchased plus premium paid. A put buyer gains when the Nifty falls below a strike purchased plus premium paid. Premium refers to the price the buyers of options pay to sellers.

3. Is there anything more one needs keep in mind?

Yes, options are of three types: in the money , at the money and out of the money .An in the money call refers to an option whose strike price is lower than the current market price. For example, the 8100 call is in the money considering Nifty closed last week at 8220.8. An in the money put is an option whose strike is higher than CMP . For example, 8300 is an in the money put given Friday's closing. An at the money callput is an option whose strike is close to or at the CMP , for example 8200. An out of the money call is an option whose strike is higher than CMP , for example 8300 call given Friday's closing. An out of the money put is an option whose strike is below CMP , for example 8100.

4. What is intrinsic value of option?

Generally , only in the money op tions have inherent value. For example, given Friday's closing at appx 8221, the 8100 call has an intrinsic value of `121. Similarly , intrinsic value of the 8300 put is `79.

5. What is time value?

It is the premium minus intrinsic value. At Friday close, the premi um of 8100 call was `200. That means time value of the option equals 200-121, the intrinsic value, or `79.Similarly , 8300 put price was `151. So, time value will equal 151 minus 79.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds
Top 10 Tax Saver Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 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

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Public Provident Fund Online

Posted: 27 Jun 2016 10:43 PM PDT

Invest Public Provident Fund Online

The benefits of assured returns, power of compounding and tax free withdrawals on maturity have fuelled the popularity of this systematic savings plan

Warren Buffett said, 'Only buy something that you'd be perfectly happy to hold if the market shut down for ten years.' For tax savers, the public provident fund does one step better; it guarantees returns. This systematic savings plan, works on the dual benefit of power of compounding and regular investments.

Features
Eligibility You need to be a Resident Indian

Entry Age

No age is specified for account opening

Investments

Minimum: Rs 500 per annum
Maximum Rs 1.50 lakh per annum
A maximum of 12 deposits allowed in a financial year

Interest

8.10 per cent compounded annually
The interest for the month is calculated on the minimum balance available in the account from 5th of a month to the last date of the month

Tenure

15 years.
On completion of 15 years, the account can be extended by 5 years
The PPF account matures after 15 years but the contribution has to be made for 16 years in all. The 15-year period is calculated from the financial year following the date on which the account is opened, effectively the PPF account matures on the first day of the 17th year

Account holding categories

Individual
Minor through the guardian

Nomination

Facility is available

The public provident fund (PPF) is a long-term savings instrument established by the central government, which offers tax concessions on savings as well as withdrawal after the lock-in period. This scheme came into force from July 1, 1968 and is backed by the government with the objective of providing old-age income security to the self-employed and those working in the unorganised sector. Though the scheme is voluntary, the assured return and tax deduction on savings has fuelled its popularity.

Investment Objective and Risks
The primary objective of saving in the PPF account is to avail tax deduction on deposits, guaranteed returns on investment and tax free withdrawal on maturity.

Capital Protection
The capital in a PPF account is completely protected as the scheme is backed by the government of India, making it fully risk-free with guaranteed returns.

Inflation Protection
The PPF account is not inflation protected, which means whenever inflation is above the current guaranteed interest rate of 8.10 per cent; the deposit earns no real returns. However, when the inflation rate is below 8.10 per cent, it does manage a positive real rate of return.

Guarantees
The interest rates on this deposit will be notified before April 1 of that year, and is aligned with G-Sec rates of similar maturity, with a spread of 0.25 per cent. Currently the interest rate on PPF deposits is 8.10 per cent per annum which is guaranteed for the deposits made between 1/4/16 to 30/6/16.

Liquidity
The PPF is liquid, despite the 15-year lock-in stipulated with this account. The liquidity is offered in the form of loans and withdrawals subject to conditions.

Credit Rating
As the PPF is backed by the government of India, it does not require any commercial rating.

Loan can be sought by the PPF account holder from the third year of opening the account to the sixth year, wherein the loan amount will be up to a maximum of 25 per cent of the balance in the account at the end of the first financial year. However, the loan has to be repaid with interest at 1 per cent interest per annum within 36 months.
PPF accountholder can withdraw after the end of 6 years from the opening date of PPF subjected to the condition that maximum withdrawal allowed is 50 percent of the amount present in his account at the end of 4 years or the end of the year prior to which withdrawal is to be made, whichever is lower. For example, if the account is opened in 2010-11, and the first withdrawal is made during 2016-17, the amount one can withdraw is limited to 50 per cent of the balance as on March 31, 2013, or March 31, 2016, whichever is lower. Thereafter one withdrawal in every year is permissible.

Exit Option
Premature closure of a PPF account is not permissible except in case of death of the account holder.

Other Risks
Savings in this product is completely risk free because of the government-backing.
The balance amount in the PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.

Tax Implications
The sum invested in PPF account is eligible for tax deduction under Section 80C subject to a maximum savings of Rs 1.50 lakh in a financial year. On maturity, the entire amount including the interest is tax free. The deposit is also exempt from wealth tax.

Where to Open an Account
You can open the account at various places such as:

Any head post office or general post office.
State Bank of India or branches of it's associated banks like the State Bank of Mysore.
Branches of nationalized banks permitted to collect direct taxes.
Private sector banks such as ICICI Bank, Axis Bank, IDBI Bank.

How to Open an Account
Once you have selected the location to open an account you will need the following documents:

An account opening form.
Two passport size photographs.
Address and identity proof such as copy of the passport, PAN (permanent account number) card or declaration in form No 60 or 61 as per the Income Tax Act 1961, driving license, voter's identity card or ration card.
Carry original identity proof for verification at the time of account opening.
Choose a nominee and get a witness signature to complete the formalities to get started.

How to Operate a Deposit

You need a pay-in slip with the initial account opening sum to be credited into your account.
You get a PPF passbook with your photo affixed stating the nominee you have selected.

The PPF account rules can be read in the passbook

Types of Transactions

Cheque
NEFT transfer
Electronic clearing service (ECS)

Points to Ponder

Minimum sum needed to start an account
Penal provisions in case of loans and withdrawals

Tips and Strategies
Exhaust the full investment of Rs 1.50 lakh permissible to avail tax deduction on the first day of each financial year. This will ensure that your yearly investment of Rs 1.50 lakh earns interest for the complete year and enjoys the compounding effect of interest in PPF and accumulates significant sums over long term. For example investing Rs 1 lakh per year into PPF will accumulate Rs 36.81 lakh at the end of the 15-year PPF tenure of which the investment contribution is only Rs 18.50 lakh; the rest is the advantage of compounding.

Going Online
Online access to the PPF account is yet to completely take-off. Some banks such as SBI and ICICI offer online access to PPF accounts opened through them. With this facility you can make online deposits to your account.

PPF accounts opened at post offices do not have online access facility yet.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds
Top 10 Tax Saving Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 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

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