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Health insurance agnostics often cite the lack of cover for small or over-the-counter medical expenses to justify their scepticism. Their grouse is that though visits to a doctor and the associated medicine bills entail sizeable costs, these are not reimbursed by health policies.

At a conference held recently, the Insurance Regulatory and Development Authority (Irda) chairman urged insurers to launch more 'day-care' based covers, highlighting the fact that non hospitalisation expenses amount to almost twice the hospitalisation spends. He pointed out that advancements in medical technology have helped many treatment procedures throw off the 24-hour hospitalisation yoke.

Day-Care Is An Inclusion

As mentioned earlier, many mistakenly believe that their standard policy does not cover expensive treatment procedures pertaining to critical illnesses, since these do not necessitate 24-hour hospitalisation. If you buy an outpatient department (OPD) health policy instead under this incorrect impression, your decision would be faulty, as regular policies do cover several day-care procedures. 'Day-care' is the term used to describe treatment procedures that require hospitalisation of less than 24-hours. These include chemotherapy, radiation, dialysis, cataract, lithotripsy, tonsillectomy and so on. The list of such treatment procedures can be found in the policy documents as well as on company websites. With the Irda putting its weight behind more product innovation, the list is likely to grow further in the coming days.

Day-Care As A Comparison Tool

If you are comparing policies with 'day-care' as a key parameter in mind, don't go simply by the number of procedures covered. Instead, the emphasis should be on the definition of procedures under the scope of coverage. The broader the definition, the better the chances of your purpose being served. Some products may offer to pay for say eye correction surgery, which is a wider definition; while another company may segregate this further into several illnesses. As a result, the number of ailments covered will go up, but certain illnesses could be left out in the process. Public sector insurers, for instance, use a broader definition even though the number of procedures covered is smaller. As far as the claim process is concerned, it is largely similar to that of treatments entailing hospitalisation, since the coverage of 'day-care' procedures is an in-built feature. At best, some companies may ask for prior intimation to activate the cashless facility.

OPD And Maternity Covers

A clutch of companies offer policies whose USP is coverage of outpatient department (OPD), dental and maternity expenses. These products cover treatments that neither require 24-hour hospitalisation nor do they form a part of the 'day-care' procedures list. The difference between OPD and 'daycare' procedures lies in the type of procedures covered. While the former relates primarily to small-time expenses, the latter pertains to expensive procedures which would have entailed at least 24-hour hospitalisation, but for advancements in medical technology. For instance, cataract surgery is a 'day-care' procedure, while dental treatment will fall under the OPD category. OPD plans are primarily seen as tools for utilising the entire Rs 15,000-limit allowed under Section 80D towards health insurance premiums.

Apart from tax benefits, there isn't much differentiation you can bring to the table. This is one reason why there aren't too many OPD products available in the market today. Also, the usage is not easy to control. When the insurer receives pharmacy bills, it is difficult to tell whether they pertain to cosmetics or actual medicine costs.

The Workings

Barring the scope of coverage, OPD covers' functioning is largely similar to regular indemnity-based health plans. The hospitalisation expenses incurred by the policyholder are reimbursed by the company – either through the cashless route or after submission of the required documents. The ambit of coverage also includes specified 'day-care' procedures like radiation and chemotherapy, as well as pre- and post-hospitalisation expenses.

Unlike standard health plans, however, these products also pay for consultation fees, dental treatment, maternity expenses, diagnostic tests and pharmacy bills. However, remember, that these reimbursements are subject to sub-limits mentioned in the policy.

Should You Go For Opd Plans?

The answer to the question lies in your needs and expectations from the policy. If maximising tax benefits is important to you, even if it means shelling out a much higher premium, you can probably consider buying such products. But keep other factors, too, in mind. "With the additional cost charged being almost equal to the OPD Coverage, the current OPD products in the market are mere tax-saving instruments, without creating any real value for the customer. Health insurance should be part of one's longterm financial planning, and not just another tax-saving tool. If one can afford paying a premium of . 1,5000, in our opinion, it is more sensible to buy a larger coverage for your family, than go for such plans. After all, you can always buy a cheaper, regular health cover and invest the money saved elsewhere. This kitty can be used for funding your OPD expenses.

With the tax-saving season in full swing, it is likely that you could be approached to buy such products. Tax benefit-cum-additional-coverage may seem like an irresistible combination. But it would be unwise to go for a product based solely on these two aspects. The company's claim settlement record along with the product's premium, features, benefits as well as terms and conditions should make up the main factors influencing the decision.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

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How to apply to REC Bonds?

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Pre-approved loan

Posted: 28 Feb 2012 03:48 AM PST

THERE are a lot of occasions when an individual will receive details about a pre-approved loan. This might seem to be a good route to get some money instantly, but the situation is not so simple. There is a need to take a careful look at several conditions related to the loan and see whether there are some benefits that comes into the picture. Here is a look at the pre-approved loan and what are the kinds of positions that can actual impact the borrower.

Reason for loan: Pre-approved loan can be given for the purpose of the purchase of an asset like a car or it could be a personal loan. The reason for taking the loan is important, as it will set the agenda for the situation that will follow from then on.

There will be several other conditions that will come along with the loan depending on the nature of the loan. A small distinction here has to be taken into consideration because of the fact that the amount of the loan is what is pre determined.

The nature of the loan might also put some restriction on the usage of the funds. So, the borrower should think about the loan only if their needs match the conditions of the loan.

Past experience: The key part in the pre-approved loan is the amount of the loan that is actually determined in advance based on the information available with the bank. The bank after looking at the transaction history and other fixed factors will fix a certain amount of loan to be offered. This is a situation where the working is not final, so, there will be various details that will be called for and then the loan will be confirmed.

The other point is that for this kind of feature, if the conditions related to the loan are not very strict, the interest rate charged on the loan will be high, translating into a higher cost for the borrower.

Additional documents: The entire presence of the pre-approved loan does not make this a free loan or one without any procedure to complete, as there are several things that need to be done on this front.

There will have to be the submission of some documents at some stage of the process so that there is some security that is built up, and the bank is also confident of the ability of the individual to actually repay the amount of the loan. This requires some normal work that needs to be done while taking a loan, and in the end, the loan might not seem to be very different from many other types of loans.

Cosmetic appeal: At the end of the day, there could be a situation where the cosmetic appeal of the entire loan is greater than the actual benefit. So, there could be a lot of disappointment in store for the individual.

The loan might be preapproved, but the entire process that is done for getting the loan could lead to some loss of confidence about the procedure. The final amount of the loan could also be different from what the earlier figure might have looked like. Keeping these factors in mind will help in getting the required benefits for the borrower.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

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How to apply to REC Bonds?

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Buying Insurance – Price is not the only criteria

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Posted: 28 Feb 2012 02:03 AM PST

The cheapest and best offers are always alluring. Be it a branded LED, gadgets, apparel or even a holiday, we want the lowest possible rate. However, the theory can backfire if applied everywhere, especially in insurance. Buying the cheapest term cover, car insurance or even health insurance can be a great temptation but it could be of little or no use if there is a problem at the time of making a claim for the benefits. Even if you have to pay few bucks more, it is important to identify the right insurer as much as the right product.

In fact, a recent survey on customer awareness conducted by the insurance watchdog Insurance Regulatory and Development Authority (Irda) has pointed out that a customer should not merely choose a product because of its pricing or features. "In today's context, though the customer has a variety of products to choose from, wise choices are possible only with requisite awareness. Besides, it is not enough for the customer to have knowledge only of the various policies available. It is possible that a customer has problems with a particular policy and should ideally be aware of organisations that look into grievances and make prompt payment of claims," says Irda in the survey.

Claim Settlement Ratio Of A Company

This is not a publicly declared figure by the company or the agents. You can access this data in Irda's Annual Report for 2010-11, which was released in December 2011 and is on its website. Every year, the report lists claim settlement, repudiation (rejection) and pending ratios for all life insurers. In case of life insurance, death claims are usually accepted, except in the most egregious of cases or if death occurs under suspicious circumstances within the first year or so of the policy. This ratio may, however, be more pertinent in case of general insurance companies with respect to health, motor or home insurance, which are more claim intensive in nature. But still this figure cannot be overlooked given the sensitivity quotient of the insurance. An individual buys insurance to protect his/her family in unforeseen circumstances such as death of the policyholder. At that point of time, the family cannot undertake any stress related to claim settlement. Sadly, the settlement ratios for such policies are not publicised as much as those for life insurance companies. Moreover, the claim settlement ratios of general insurers are usually over 100%, which can be misleading.

In such cases you should look at claims repudiation ratio which measures the amount of claims rejected as against the total number of claims. Also note the claims pending ratio which refers to the outstanding claims of the company.
There are number of new life and general insurance companies and the claim settlement history of such companies cannot be comparable to other life insurers which have been in the business for a long time. Hence, claim settlement ratio, although an important parameter, cannot be the sole criterion to decide on the company.

Financial Stability

Solvency margin is one of the strongest indicators of a company's financial stability. This financial figure helps you understand the company's ability to meet unforeseen contingencies such as claim settlements. It is an extra capital/provision an insurance company has to maintain to meet the claim requirements. This excess amount of asset which an insurance company has to maintain over its liabilities is a cushion. Hence, thicker the cushion, better it is from a company's perspective. A terror attack or a major accident is a tremendous liability on the insurer but a higher solvency margin should cushion such extreme situations comfortably.

Solvency margins are declared to Irda by every company. Insurance companies also share such data on public domain such as media or newspapers at times to reassure their customers.

Secondly every company shares data related to fresh premium, renewals and the policies with the IRDA. Based on this data, the IRDA ranks all the insurance companies both on the monthly and yearly basis. There is a break up of data as per the different kinds of products, which can also act as a good indicator. This simply means the insurer has a constant inflow of funds in terms of new premium growth and renewals.

Customer Service

Customer service is a critical aspect. However, many times we can only experience it once we sign up with a company. That is why I believe that people choose a company after inquiring about the experience of their friends and acquaintances regarding the quality of customer service of various companies, and not go by the element of low premium alone. There are also certain other thumb rules...For instance, in case of a health insurance policy, it is better to choose a company which handles claims themselves rather than outsourcing to a Third Party Administrator.

Grievance Redressal

Here too, the experience of your acquaintances could be useful. One may also check out by reading third-party insurance related blogs and websites such as jagoinvestor.com, policymantra.com, insurance.blogs201.info where contributors share their experiences.

Willingness To Share Policy Wordings

The company/agent may not initiate to share the policy wordings. However, if you ask for a copy they should not deny the same. Often in a price war, you may miss out on the finer details of the policy. If we have mentioned any medical family history, the policy may include a cooling-off period with respect to those medical conditions. These would be over and above the general terms and conditions related to pre-existing conditions of the health policy offered by the insurer. Similarly, in case of accident riders, different companies may follow different definitions which can again work against you in case of lack of clarity. Hence read the policy wordings before signing the proposal form.

Reliable Brokers Over Agents

Approach a broker who deals with multiple companies. Agents who sell products of a single company may limit your choices. Get the necessary information from the broker, but cross check the details with some online portals before taking the final decision.

Ease of paying one's insurance premium (offline and online), stress on product simplicity rather than complexity and the company's history of dealing with 'Orphaned Policies', so that you are not adversely affected in case your agent suddenly stops servicing you, can be some other the key factors. Ensure the agent answers all your questions and you must read every word of the policy before you sign on the dotted line. "The customer must not only choose a product which is suitable, but also engage with a company in which the agents provide correct information," said the Irda in the survey.

Before Buying Insurance

Cheapest covers are not always the best

Read the policy document before you buy one as it is a long-term contract

It is as important to identify the right insurer as much as identifying the right product

Irda suggests customers should identify insurers that look into grievances and settle claims promptly

Look at the claims repudiation ratio which measures the number of claims rejected as against the total number of claims

Also consider the claims pending ratio which refers to the outstanding claims of the company

Solvency margin is the company's ability to meet unforeseen contingencies such as claim settlements. It indicates the company's financial stability

You can ask for the policy wording before buying the product

Cross check with brokers who sell products from different insurers and portals before you buy the product

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Axis Mutual Fund FMP - Axis FTP Series 18

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Posted: 27 Feb 2012 11:23 PM PST

Axis Mutual Fund has extended the new fund offer (NFO) period of Axis FTP Series 18 (15 Months). Now, the NFO will close on February 27, 2012 instead of February 24, 2012.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Mutual Fund Account Statements

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Posted: 27 Feb 2012 10:46 PM PST

Investors, typically, take advice from friends, relatives or brokers to buy stocks or mutual fund plans—often, out of sheer laziness. Even informed investors commit this mistake. But those who do their homework and conduct due diligence before putting in their money could stand to gain significantly.

In the case of companies, it is their balance sheet which contains the relevant details. But, for mutual fund investors, it is the fact sheet of the fund. This is a booklet containing vital information about each of the schemes of that particular mutual fund. One should read it not only before investing, but also after investing. People should ask for fact sheets from their advisors and respective fund houses on a regular basis. It updates the investor on the funds performance and any changes that take place. For instance, any change in the schemes expense ratio is something the investor would want to know about

After the circular sent by the Securities and Exchange Board of India (Sebi) to fund houses in this regard, mutual fund firms have been issuing new fact sheets since September 2011.

Performance scorecard: The fact sheet walks investors through the performance of the scheme through boom and bust periods. Currently, fund houses provide data on performance over four one-year periods, compared to a single one-year performance data earlier. Second, the returns have to be shown in percentage form, and the manner in which an investment of ~10,000 grew during the one-year periods. Earlier, most equity funds showed their past one-, three and five-year returns only.

The new fact sheets help compare like with like in a time period. Earlier, fund houses gave returns earned since inception, which was misleading, as every scheme had started at a different stage. Investors, instead of blindly investing, should know what fact sheets indicate. More, the portfolio turnover ratio that only the fact sheets show is an important matrix to compare schemes.

Track the fund manager: The fact sheet announces its fund managers and chief investment officers — another important indicator globally. However, in India investors are yet to begin the practice of actively keeping track of their fund manager.

The portfolio: This is an extremely important part, as it tells you the exposure of the fund to different sectors. The objective and ratings for equity and debt funds are stated separately. Although ratings are important, these cannot be the sole deciding factor. But with this, one is sure of not being mis-sold.

Standard deviation and Sharpe ratio: Standard deviation indicates the manner in which returns have deviated from the average, whereas the Sharpe ratio shows how well the portfolio has performed in relation to the risk borne. This is again very useful. Reason: Although one portfolio can reap higher returns than its peers, it is a good investment only if those returns do not come with too much additional risk.

The fact sheet is a booklet containing vital information about each of the schemes of that particular mutual fund.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

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------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Tax Saving with Health Insurance – Section 80D

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Posted: 27 Feb 2012 09:23 PM PST

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

WITH the tax planning season on, are you considering of buying a health insurance policy to save tax and are confused about which policy to buy? In most cases, people compare the premium being charged and opt for the cheapest policy. However, since insurance companies revise the premium rates based on their loss ratios, this should be the last factor for deciding your health cover.

Consider the following key factors to choose a good product: Benefits being offered: Though you may mostly come across plain vanilla health insurance policies, there are several policies that offer maternity benefits, hospital cash on contracting a critical illness or in case of accident. Also, check on the discounts given for not claiming. Though many offer 5 per cent of your sum insured as a no-claim bonus, there are others who offer 10 per cent or more.

In case you are young, consider a cover that offers high discounts for not claiming and covers maternity expenses. Also, check number of day care procedures and critical illnesses covered in the policy.

Deductibles: Most health insurance products cap the room rent at 1 per cent of the sum insured per day, while a few policies pay a room rent that is 2 per cent of the sum insured per day. So, assuming you have chosen a sum insured of Rs 3,00,000, your insurer will pay you not more than Rs 3,000 as room rent charge per day.

If you stay in a small town, a cap of 1 per cent may be fine. But, if you stay in a metro, it is advisable to go for a policy that pays higher room rent charge or has no caps on room rent.

All top hospitals in Mumbai charge Rs 8000-10,000 for a single room. If you have chosen a Rs 5,00,000 policy, you will get only Rs 5,000 from your insurer and will have to shell out the remaining cost.

Also, many charges such as surgeon's fee, anaesthetist fee, consultant's fee, OT charges will be linked to the cap on room rent

How much of the sum insured can be enhanced?

Choose a health cover that allows you to enhance your sum insured to the maximum. Policies offered by some private insurers allow a person to increase his sum insured from 10 per cent to up to 50 per cent of his existing sum insured.

Renewability: With rising life expectancy, there is a high probability that you may outlive the age till which the policy can be renewed. Ensure that the cover has high renewability. Most public sector insurers allow policyholders to renew their cover till 70-75 years. Also, some standalone health insurers have introduced plans that offer lifetime renewability.

Time excesses for different diseases: Insurance companies do not cover certain diseases such as cataract, hernia, fistula, piles, fibroids in the initial years of the policy. Also, certain diseases are completely excluded from the policy. "A person should check the waiting period of the diseases that are hereditary.

Age for undergoing medical tests: Most insurers do not ask a prospective policyholder to undergo medical tests if he is below 45 years of age. The higher the exemption age, the better it is.

Network hospitals: One should also check if the hospitals close to his residence are there on the insurance company's list for providing cashless hospitalisation,".

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

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------------------------------------------------
How to apply to REC Bonds?

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Download Tata Capital NCD Application Forms

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Tata Capital NCDs

Posted: 27 Feb 2012 08:28 PM PST

In 2009, most investors favoured the five-year secured non-convertible debentures (NCDs) of Tata Capital, a non-banking finance company (NBFC) of Tata Sons. Pune resident Ketan Gandhi was no different. He invested ~10,000 to cash in on the 12 per cent returns the company, the only one then, was giving on its annual interest payout option.

However, there was a put-call option that came with the issuance after three years, which ended in January 2012. This is when Tata Capital decided to reduce its coupon rate on the NCDs to 10.5 per cent. The downward rate revision is effective from March 6, 2012 for monthly, annual and cumulative interest payment options and September 6 for the quarterly option.

A Put option gives the opportunity to the investor to redeem his NCDs and a Call option gives the right to the company to call back the NCDs (or redeem investors' money). The company's NCD holders last week approved the resolution in majority, said a company spokesperson.

Obviously, if your decide to stay invested, you will have to take a cut in the interest income. For instance, Gandhi will earn 1.5 per cent or 150 basis points less if he wants to continue holding the NCDs. The other option is to exit.

If you wish to exit, Tata Capital will provide you with a one-month window when you can redeem the NCDs. "The NCD holders will be sent an option letter, latest by next week. They will then have to reply to the same specifying their decision. Those who wish to redeem the NCDs will get time, starting the second week of March," said a senior Tata Capital executive. Industry experts say investors can tender their NCDs between March 23 and April 5. And the company would pay interest also for the period between March 5 and redemption.

You are most likely to be unsure about your action. Common knowledge says the revised rates, though lower by a per cent, are in line with the rates available in the market. And those looking for a higher rate will be disappointed. Tata Capitals decision is just a sign of the interest rate cycle reversal, according to industry experts. And they feel these rates will find takers.

Assuming most invested in the issue for assured returns. The first option for those wanting to exit could be bank fixed deposits. But, Tata Capitals 10.50 per cent is higher than most fixed deposit rates. Consider this: State Bank of India is giving 9.25 per cent for one- to ten-year deposits. ICICI Bank is offering 7.75 to 9.25 per cent across similar tenures.

Company deposits may be another options that would yield high returns, But here, not many issues are AAA rated and hence not dependable. HDFC is offering 9.50-9.75 per cent for one to three-year deposits, ICICI Home Finance is giving nine per cent for the same tenures and LIC Housing Finance nine to 9.50 per cent. (Source: Bluechipindia.com).

But, some others don't favour retaining the NCDs on the back of rate surprises. Sell out of the NCDs and invest in some other products giving fixed returns for the investment period, depending on your goals. You should not commit to long-term investments as medium- and short-term ones are offering a better opportunity with a good mix of liquidity and high returns. Short-term debt funds have given 9.74 per cent returns in a year, as on February 17, 2012

A cut in interest rates will push up bond prices and NAVs of short- to medium-term debt funds. Otherwise, he suggests buying tax-free bonds that come without put options. For instance, NHAIs bonds selling at ~1,036.88 (8.20 per cent) on the Bombay Stock Exchange and ~1,039.74 (8.30 per cent).

But, these rates are only pre-tax. If Gandhi retains the NCDs, his real return will work out to be 7.35 per cent in the highest tax bracket (for 10.50 per cent). The same will apply for deposits, the interest will be added to your income and taxed.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

List of Tax Saving Mutual Funds in India

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Posted: 27 Feb 2012 09:04 AM PST

Below is the entire list of Tax Saving Mutual Funds available in India as of Mar 2012

https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss

APOLLO Hospitals NCDs

Posted: 27 Feb 2012 08:05 AM PST

Download Application Forms

APOLLO Hospitals will issue non-convertible debentures (NCD) to close a bank loan secured at high interest rate.

The company will raise Rs 100 crore using the NCDs, which will be issued to corporate entities and investment firms. An interest rate of 9.5 per cent to 10 per cent will be offered for a term of five to seven years. The funds will be used to close a loan, which was availed earlier at an interest rate of 12.5 per cent for a three-year period.

The board of directors of the company has approved the NCD issue and the company has engaged merchant bankers to identify investors. The issue is likely to come into the market over the next 10 to 15 days..

This is just an arrangement to save on the higher outgo on interest rates.

Currently we are not looking for external funding for our expansion activities.

The company is setting up 13 new hospitals and expanding capacity of four of its existing facilities at a total cost of Rs 1646 crore.

This will be done through internal accruals and debt and for any additional funds, warrants have been issued to the promoters.

The new projects will add a total of 2860 beds by FY15," a company official said on condition of anonymity

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

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How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

UTI Fixed Term Income Fund Series X

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Posted: 27 Feb 2012 07:39 AM PST

UTI Mutual Fund has launched UTI Fixed Term Income Fund Series X X (367 Days)

The NFO will be close for subscription on February 28.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below