Prajna Capital

Why should you Invest Mutual Funds in India
Critical illness Plan
Systematic Withdrawal Plan

Why should you Invest Mutual Funds in India

Posted: 18 Aug 2016 02:28 AM PDT

Why Mutual Funds in your Portfolio?

Benefits of mutual funds?

Buy n Sell with Great Convenience: Investors who have the time and the money can build their portfolio by buying one security at a time. But identifying, researching and monitoring securities can be a full-time job that requires a lot of commitment. Alternatively, investors can simply buy a mutual fund in the market that will save them a lot of time and regular monitoring of the performance of the individual securities that make up the fund.
Do not Put all Eggs in One Basket, Be Diversified: A single fund can hold securities from 100s of different issuers or companies, far more than what an individual investor can realistically manage to hold in their individual portfolios. This diversification reduces the risk of a loss due to problems in one particular company or industry.
Mind your Own Business, let it manage by Professionals: A mutual fund is managed by professional investors who do this full time. The resources available to them like traders who have practical experience in when to buy and sell securities, research team and access to company management is far more than what an individual investors can achieve on his own.
Get Your Money When You Want, It's Liquid: Like shares, mutual funds are also liquid investments that can be bought or sold freely so that investors have access to their money when needed. However, certain shares might not trade freely because there is not market for them, and then the investor is stuck. Mutual funds do not face this problem of illiquidity.

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

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

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

Critical illness Plan

Posted: 18 Aug 2016 12:26 AM PDT

Buy Critical illness Plan Online

Health insurance Plans are termed as such insurance products which are devised to provide financial coverage during medical emergencies. With the tremendous increasing medical research every individual aims to provide the best medical facility to his/her family members. Buying and comparing Health insurance plans makes this objective much easier. There are many variations to the health insurance plans, critical illness plan is one such variation added to the health insurance segment which can be bought as a standalone product too. It would be interesting to compare the health insurance with the critical illness plan, although this should be understood that critical illness plan cannot be considered a replacement to the Health insurance plan. Low cost mediclaims are also widely adopted options which people opt for to minimize cost of the policy and maximize their returns.As the name suggests, health insurance plan covers the critical illnesses such as cancer, kidney transplant, coronary artery bypass, major organ failure, paralysis etc. These are the diseases generally covered under this plan, but the exact list of diseases covered might vary amongst different insurers.

Untitled1

When we talk about this plan, it cannot be considered alternative to the mediclaim or the health insurance policy. In comparison to health insurance ,this plan has certain unique features or benefits. If we talk about health insurance plan it provides cover in case of hospitalization, whereas the critical illness plan covers the expenses incurred both during the hospitalization and otherwise. Also, there is no precondition when reimbursing the expenses to provide for only the maximum of cost of treatment or the sum assured. The critical illness gives the added benefit of covering all other extra costs incurred during the treatment of the disease.

Critical illness plan:

The number and type of diseases covered by the insurance company differs from company to company, hence a thorough study of what one needs is required before the purchase of any such plan.

This plan generally does not cover any pre existing diseases. Also, it does not cover any congenital diseases either. There is generally a clause of waiting period of 2 to 4 years depending on the insurer. Any disease detected during this phase which would require medical treatment cannot be claimed under this plan.

Critical illness plan also offers the maturity benefit in case the policyholder survives the term of the policy for a specified number of years after being detected with the critical illness. In case the policyholder survives the number of years mentioned, there would be no such payment to the family or nominee.

There are two types of critical illness plans in case this plan has been bought to complement the existing health insurance cover. Accelerated plan and the non accelerated critical illness plan. Now, in case of a non accelerated critical illness plan the sum assured paid to the policyholder does not affect or reduce the sum assured offered under the base health insurance plan. Whereas for the accelerated critical illness plan, the amount paid as the critical illness cover reduces the base cover to be paid as and when required.

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

Systematic Withdrawal Plan

Posted: 17 Aug 2016 10:44 PM PDT

Systematic Withdrawal Plan

Many retired individuals are now using SWP in mutual fund schemes as a tool to meet their monthly cash flow requirements.

SWP provides the investor with a regular income and returns on the money that is still invested in the scheme.

It can be used on any open-end MF scheme.

1. What is a Systematic Withdrawal Plan (SWP)?

SWP is a facility using which investors can withdraw a fixed amount of capital appreciation from a mutual fund scheme. The frequency of withdrawal could be monthly or quarterly .

An investor can customise the cash flows as desired; he can either withdraw a fixed amount or just the capital gains on his investments.

2. How does SWP score over the dividend option?

SWP scores on the reliability front. It offers an investor the advantage of withdrawing a fixed amount of money from his or her investment at the same date of every month for a designated tenure period. It works better than relying on MF dividends for regular income. In the dividend plan of an equity fund, the quantum of dividend is not guaranteed & depends on market movements.

3. How important is the taxation aspect in SWP?

Since SWP is a redemption of units from the scheme, the tax treatment of each withdrawal will be the same as is applicable to equity and debt funds.Hence, for units where the period of holding has not crossed 12 months for equity-oriented funds, investors will have to pay a short-term capital gains tax. For debt funds, there will be a tax liability (short-term capital gains on holding for less than 36 months and long-term capital gains on longer holding periods). In addition, investors also need to keep in mind the exit load of the scheme before running SWP on it.

4. How do you start an SWP?

You can start an SWP anytime after you invest in a mutual fund. To activate it, you need to simply fill out an instruction slip with the AMC stating the folio number, the withdrawal frequency , date for the first withdrawal and the bank account to credit the proceeds.

5. Any disadvantage of SWP?

Financial planners believe that the only disadvantage of SWP is that there is a probability of it eating into your capital or eroding your capital, which has been accumulated over a period of time

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

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

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