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| Posted: 12 Jul 2016 04:36 AM PDT 1. What is Bank Nifty? An index com prising 12 state owned and pri vate sector banks. Like the Nifty , those bullish on banks can buy Bank Nifty futures compris ing 30 shares, or buy a call option on Bank Nifty. Bears can similar ly short or sell Bank Nifty futures or buy a put option on the index. 2. What is the current level of Bank Nifty ? On Friday , Bank Nifty for May expiry closed lower by 1.4% at 16743. 3. At that level, what's the contract value and the approximate margin one has to put up to trade? Basis that level, contract value was `5.02 lakh. The margin to trade could vary from 7-10%. 4. What's the risk? Since these are leveraged posi tions -one puts up a fraction of the contract value to trade -adverse price movement can cause huge losses to traders. Also, Bank Nifty has a higher beta (is more volatile) than Nifty futures contract. 5. Can this be illustrated. Assume you went long Bank Nifty futures at 16743 by paying a margin of 7% (`35,160). If, on Monday , the Bank Nifty closes at 16500, the loss will be `7,290 (243x30). If one has taken multiple positions, the loss will be even greater. 6. How to minimise losses? By putting a stop loss while di recting the dealer to execute the trade. Say going long at 16743, if the trader put a stop loss at 16643, the loss would be restricted to `3,000 instead of at `7,290. 7. Is there another way to do this? Yes, losses can be minimised by buying calls or puts for May ex piry on Bank Nifty . Then the maximum loss will be limited to the premium paid to the seller for the call or put option. For instance, the most active 17000 call option was priced around `151 at Friday closing. A bull who buys the call would have had to pay a premium of `4,530 -that's the max he could lose. Similarly , a bear could buy the 16500 put by paying `4980. In options, profit's unlimited while loss is limited to the premium paid. In futures, a trader can have unlimited profits or unlimited losses, if stop loss is not placed. In the case of call and put option sellers, the profit is limited to premium received but losses can be unlimited. ----------------------------------------------- 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 2016Best 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 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 ----------------------------------------------- |
| Freight Insurance - Marine Insurance Posted: 11 Jul 2016 11:44 PM PDT Buy Freight Insurance Online The concept of Insurance probably started with marine cargo insurance. It is indeed one of the oldest lines of insurance. Getting marine insurance is extremely important if you transfer physical products either through rail, road, train, air or sea. It essentially protects against damages/loss of goods during transit. Marine contracts are highly customizable and can be tailored as per needs. The contracts can be broadly classified into 2 types:
Specific policy is required if you are insuring a particular voyage. For example, if you are transferring your car from one location to another. In most businesses where frequency of voyages are high, this type of policy is not preferred as it becomes operationally challenging to get a seperate policy each time your goods are transferred. Open cover policy is kind of blanket policy which covers your marine risks for a certain sum assured. Say for example, you are transporting goods worth Rs 1 Cr everyday to different parts of the country. So instead of taking 365 specific policies, you can take a single policy for a sum insured of 365 Cr. As you send goods, the limit on your policy will keep reducing. You just need to show the invoices for shipped goods. Clauses: Marine insurance policies are usually either ITC-A, ITC-B, or ITC-C. The types of risks covered under each of these is as mentioned in the table below. ITC-A is the most preferred type of policy. Institute Cargo Clauses:
Inland Transit (Rail/ Road Clauses):
Who should Insure: Marine policy is a transferable policy, meaning that if the owner of the goods takes a marine policy and hands over the goods to the transporter, the insurance policy is still valid. The principal of indemnity applies…which essentially means that the insured will be compensated for the extent of loss incurred to him. Say for example, the goods worth Rs 1 Cr is lost in transit. The transporter had an agreement with the owner that 40% of the damage incurred while transporting will be borne by the transporting company. In this case, even though the owner had bought a marine policy of 1 Cr, he will be compensated by the insurer by only 60 Lacs and the remaining will be borne by the transporting company. Insurance company will typically pay the entire 1 Cr to the owner and recover the 40 lacs from the transporter. Therefore, in this case, if the owner had an agreement with the transporter, he should have mentioned to the insurance company which would have helped him reduce the premium. Also, the logistics company can take a separate insurance policy to the extent of their loss which in this case was 40 lacs. Premium: Premiums in marine policy are typically in the range of 0.05% to 0.15% depending on the type of goods, packaging, location, per location limit, per voyage limit, in transit storage. Data Required: The company typically requires the following information before underwriting marine risks: Marine Open Cover Inland Policy
Risk Details:
----------------------------------------------- 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 2016Best 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 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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| Posted: 11 Jul 2016 08:23 PM PDT Investments in Equity Linked Savings Schemes, or ELSS, are eligible for a tax break under Section 80C of the Income Tax Act. What this means is that the amount you invest gets you a tax deduction. You can go up to Rs 1.50 lakh which is the limit under this section. Since the minimum lock-in period of ELSS is three years, investors end up paying zero tax since long-term capital gains in equity is nil. So there is no tax to be paid on the returns and at the time of investment, the investor gets a tax break under Section 80C. ----------------------------------------------- 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 2016Best 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 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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