Prajna Capital |
- National Automated Clearing House (NACH)
- Applying for a Home Improvement Loan
- EPFO will Invest through ETFs
| National Automated Clearing House (NACH) Posted: 05 Jul 2016 02:13 AM PDT Do you know how much time it takes to start a systematic investment plan (SIP) in a mutual fund (MF) scheme? Typically, it takes about 30 days. But not anymore; thanks to a system change in the banking industry. MF investments have moved to the National Automated Clearing House (NACH) system, from National Automated Clearing House (NACH)Here is what it means. Faster process through computerisation
This used to take days, depending on the distance the mandate had to travel. Worse, although the bank would verify, it would not confirm or deny your mandate to the fund house. As a result, fund houses had to assume that the mandate is registered unless a specific rejection was received. It was possible that once the fund house made your SIP instalment, it would get rejected because the bank would have rejected the mandate earlier. This entire process was manual and physical movement of forms was necessary.
The new system is more advanced. Now, all you need to do is fill up an NACH form, which your MF will submit to National Payments Corp. of India (NPCI), which was formed by the central bank to handle retail payments. Once NPCI gets your mandate from the fund house, it sends it electronically to your bank. The bank verifies it, confirms it to NPCI and the SIP can start. Since the process is computerised, and works on scanned images on the Cheque Truncation System, the SIP starts sooner. In this way, the mandate format is also similar to a cheque. Through the new system, it takes about 15 days to get your SIP going.
One-time mandate
Under NACH, you need to give the mandate only once. Each fund house will require a mandate, but these will hold for all schemes within a single fund house. This is called the one-time mandate (OTM). For a fresh investment, you need to fill up the OTM and specify a maximum amount that you think you might invest cumulatively in that fund house. Once NPCI registers the OTM, whenever you decide to invest in that MF, all you need to do to make additional investments is submit a form or send a text message. You do not need to give a fresh cheque or transfer the money using Net banking. ----------------------------------------------- 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
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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 ----------------------------------------------- | ||
| Applying for a Home Improvement Loan Posted: 04 Jul 2016 09:28 PM PDT Apply for a Home Improvement Loan Online Renovating and refurbishing your home involves a huge expense. So, it makes sense to evaluate some options to fund it. Banks and NBFCs offer home improvement loans, which can be up to 80-90% of the estimated cost of repairs.These loans are available at attractive interest rates and repayment options.Here's how to apply for one. Who can apply? Owners of the property can apply for a home improvement loan. If there is more than one owner, all owners must jointly apply for the loan. However, all co-applicants need not be a co-owner. Documents Application form must be filled and signed by all co-applicants. Documents required are identity and address proof of co-applicants, proof of income and employment and photographs. Property papers All original title deeds of the property Proof of no-encumbrances on the property Estimate of proposed work from an architect or civil engineer. Processing fees The finance company may charge processing fees as a percentage of the loan amount. The cheque for processing fees must be given at the time of applying for the loan. Security Security for the loan is generally the security interest on the property financed and or any collateral or interim security as may be required by the financing institution or bank. Process On submission of application, the loan may be sanctioned if found in order and a repayment term of up to 15 years may be provided for repayment of the loan.
Such loans are not offered for external home improvement, which intends to increase the living space. Eligibility for the loan also depends upon applicant's age, source of income and credit history. ----------------------------------------------- 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 ----------------------------------------------- | ||
| Posted: 04 Jul 2016 07:46 PM PDT EPFO set to invest more through ETFs Labour minister says decision on increasing investments from 5% to 15% of deposits to be taken this week. Retirement fund body EPFO will this week decide on in creasing investments in stock markets through ETFs, as they have started giving returns, Labour Minister Bandaru Dattatreya has said. "A report will be presented before the Central Board of Trustees on (ETF) investments of the EPFO on July 7. Now the report is positive. We will decide quantum of percentage increase. According to the percentage (increase), the amount of investment will also increase," Dattatreya said.
An ETF trades like an individual stock in the market and is generally a basket of various securities such as shares, bonds, commodities and indices. The EPFO started investing in ETFs last August. It had started by investing 5% of its investible deposits in ETFs last fiscal. Now, there is a move to increase the pro portion of such investments in this fiscal.
The minister said: "The EPFO trustees will take a decision regarding increase in proportion of its investment in ETFs after consultations with stakeholders."
He added, "After deliberating on the report, as Chairman, I will discuss it with other members of the CBT about increase in percentage of ETF investments. Last year, it was 5%. It can go up to 15% as per the Finance Ministry's investment pattern." According to the minister, as on 31 March 2016, the amount invested was `6,577 crore, which gave a return of `6,601 crore. As on 30 April 2016, the amount invested was `6,674 crore and this gave a return of `6,786 crore. The proposal will go to the law department and then to the Cabinet for approval.
The minister also spoke about introducing a new provision for having safety auditors for ensuring occupational safety and health in the Factories Act.
A senior Labour Ministry official said that the tripartite consultations for introducing the concept of safety auditors were completed as there were two rounds of discussion on that.
Meanwhile, an advisory body of EPFO has rejected a proposal to engage private banks--ICICI, Axis and HDFC--for collecting PF contribution from employers.
"The proposal to engage private banks--ICICI, Axis and HDFC Bank --was rejected by the Finance, Audit and Investment Committee (FAIC)," EPFO trustee and Bharatiya Mazdoor Sangh Maharashtra General Secretary P.J. Banasure said. At present, SBI collects PF dues on behalf of EPFO. Work on authorising other nationalised banks to collect PF dues is on.
The FAIC has recommended that these three banks should not be allowed to collect PF contribution on behalf of the retirement fund body. Its recommendations will be placed before the Central Board of Trustees on 7 July. As per practise, FAIC's recommendations are accepted by the CBT.
The proposal stated that such a step would cut down the float available with the payment aggregators by two to three days and lead to an earning of `15 crore for the EPFO every year. ----------------------------------------------- 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 ----------------------------------------------- |
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