Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Wednesday, October 18, 2017

Know your Debt Instruments


There are different kinds of debt instruments. Some are riskier than others. Here's what you need to know


Habitual investors may be familiar with conventional debt instruments - NCDs, commercial paper, G-secs, treasury bills and the like. Of these, Government of India bonds are obviously the safest, while all corporate instruments carry credit risks in some measure.


But the world of debt is lately getting more complicated, with some new-fangled instruments cropping up. Watch out for the acronym 'SO' or 'structured obligation' against debt instruments in your fund's portfolio. This indicates that the rating agency has rated the instrument not on the strength of the issuer alone but on a guarantee provided by a reputed company/government/financial institution to meet this obligation in case the issuer fails to cough up. In SO ratings, the creditworthiness of the guarantor matters more than that of the issuer of the bond.


Similar risks exist with securitised vehicles such as pass-through certificates (PTCs), where lenders bundle a pool of loans and sell them to third-party buyers. PTCs pose challenges even for rating agencies because they need to make judgement calls about multiple borrowers and their aggregate credit worthiness, while assessing these securities.


For long, Indian investors have treated state government loans (SGLs) as 'sovereign' loans on par with G-secs issued by the Centre. But with the financial position of many state governments in a far more precarious state than the Centre, in recent years, smart investors have begun to make distinctions between sovereign bonds from the central government and those from the states. Lenders now demand a significant risk premium over the G-sec rate from individual states with shaky finances or high deficits.


Saddled with bad loans, many public-sector banks are now flooding the debt market with AT1 bonds offering attractive yields of 8-9 per cent and debt funds are investing in them. What can go wrong with a bond from a public-sector bank, you may ask. But AT1 bonds, intended to shore up the capital base of banks, allow the bank to skip interest payments, write down the bonds or convert them into equity shares. In short, they are akin to equity and can subject debt investors to a capital loss if the bank has big write-offs. They can be pretty illiquid, too, as apart from mutual funds, few other debt market participants have the wherewithal to take them on.


How well do you know your debt instruments?





Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300





L&T Emerging Business Fund


L&T Emerging Business Fund Online

 

 

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Tax Saver ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Tuesday, October 17, 2017

Bharat 22 ETF

 
    Best SIP Funds to Invest Online 


It is the second Exchange Traded Fund (ETF) that will be launched by the Union Finance Ministry. ICICI Prudential Mutual Fund will manage the fund.

 ETFs are essentially index funds that are listed and traded on stocks exchanges just like regular shares.

They are a basket of stocks with assigned weights that reflects the composition of an index.

 Bharat 22 comprises 22 stocks including those of central public sector enterprises, PSU banks and holdings under the Specified Undertaking of Unit Trust of India.

 Bharat 22 is a welldiversified ETF spanning six sectors -basic materials (4.4%), energy (17.5%), finance (20.3%), industrials (22.6%), FMCG (15.2%) and utilities (20%).

 The ETF is aimed at helping speed up the government's disinvestment programme.






Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Monday, October 16, 2017

Health Insurance Strategy


Health Insurance ensures that a medical catastrophe does not damage your financial health. But it may not cover all your medical bills. What can you do?



When you invest for the long term, it is important to make sure that the returns your portfolio gets are ahead of inflation so that you get a real return. Buying health insurance is not much different in this regard-it is important to inflation-proof your health insurance strategy because medical inflation continues to be in double digits. Medical inflation is around 15-17% and will continue to rise unless the state intervenes to build more affordable infrastructure. How expensive is healthcare today? A cardiovascular surgery can cost upwards of Rs3 lakh in corporate chain hospital in metros. And even dengue can set you back by Rs90,000. And these costs are bound to go up. We advise individuals to have health insurance, even if they are covered by their employer. But can health insurance be the answer to all your medical needs? Is there a strategy that can give you maximum benefits at little cost? We find the answers here


The need for health insurance
You need insurance because you don't want to pay hospital bills out of your pocket. A health insurance policy pays for hospitalization, which includes expenses such as room rent, surgical procedures, nursing expenses, doctors' fees, cost of medicines and diagnostic tests. This policy is renewable for life, so you pay a premium every year, and the premium increases as you age. Even if you make a claim on your policy this year, the original insurance cover is available to you when you renew it next year. This means, if you keep renewing your policy, it will continue to cover your medical tabs till you live. It's very important to be insured against huge losses and hospitalization falls in that category. You may not make use of the policy at all in your lifetime, or realise that you paid more than you claimed, but the risk of being uninsured is far more catastrophic


What mediclaim does not cover
But can you depend on your health insurance policy to pick up every rupee of your healthcare cost? No. A few medical costs are excluded, such as: some out-patient procedures. Cosmetic surgeries and dental treatment are excluded unless they are required due to an accident and require hospitalization. Hospitalization for evaluation and diagnostic purposes is also covered. Even when you are hospitalized, the policy will not cover investigations or treatment that are not relevant to the ailment for which you were hospitalized. Also excluded are expenses on about 200 items such as: toiletries, cosmetics, specified medical items (like prescription glasses, contact lenses, hearing aids and crepe bandages) to administrative expenses (like admission kits, discharge procedure costs, and visitors pass expenses). "The non-payable items can add up to about 10% of the in-patient cost...health insurance saves you from blowing a hole in your pocket, but it doesn't pay for everything. If treatment is prolonged, the policy may not cover all expenses. For example, in the case of cancer, even after the patient is discharged, he may need to be on medicines for extended time and there could be exclusions and co-payment for many expenses


Managing health insurance
For this you need to answer two important questions. Is health insurance all that I need? How much health insurance do I need? To answer the first, health insurance is the shock absorber, which you need, but you also need to provision for incidentals that the policy won't pay. Just like you create an emergency fund...and park it in liquid funds, we recommend you save an amount that you can comfortably apportion for medical emergencies. Some countries offer tax-friendly health savings accounts, to encourage people to save for healthcare costs. On an average, an individual ends up paying more than the benefit he gets from health insurance. Of course, those with more frequent or big-ticket instances of hospitalization end up benefitting a lot. It's advisable that you look at a cover that you can easily afford and also save on the side


A cost-effective way of buying health insurance is through a combination of individual policy with a floater and a top-up plan. A floater considers the entire family as one unit and so it is cheaper than individual options. A top-up cover comes with a deductible-the portion of claim amount that needs to be paid by you. You can, of course, use your base health insurance policy to pay the deductible amount and use the top-up for payments over that. Higher the deductible cheaper is the top-up cover. You can also buy a critical illness plan that pays a lump sum to supplement your income when diagnosed with a critical ailment. And, you need to buy the insurance as early as possible. We have observed that underwriting is getting stricter and the rate of rejections is increasing. People with hypertension, for instance, are being denied a cover

.

The importance of health insurance can't be stressed enough, but it's equally important to create an emergency corpus that will only aid your health insurance policy.




Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Equity Market Update - June 2017

 

Equity Market Update - June 2017

Indian equity markets corrected for the first time in 2017 and were down ~1% in June.

Performance of global equity markets was mixed with Asian indices outperforming the European indices. The table below gives the details of performance of key domestic and global indices.


 

Performance of key commodities was also mixed during the month, Brent crude being the worst performer down 5%. Lead and zinc were up 8% and 6% respectively.

INR depreciated marginally by 0.1% against USD in June and closed at 64.6, INR has appreciated by 5.2% between December 16' and June 17'.

FII's bought Indian equities worth $0.6bn in June. Net inflows in domestic equity oriented mutual funds in May were ~Rs 16,000 crores. The chart below gives the net monthly inflows in equity oriented mutual funds for last 12 months:



During the month few states announced farm loan waiver and 12 large stressed accounts were referred to National Company Law Tribunal (NCLT). May CPI came in at a record low of 2.2% and 4QFY17 CAD came in at 0.6% of GDP.

Equity market have lagged nominal GDP growth for several years now. Profit growth is now improving and earnings growth for next 2-3 years is expected to be strong (Bloomberg consensus NIFTY EPS growth – 16% in FY18 and 22% in FY19). NIFTY 50 is currently trading at ~14.9xFY19E EPS which is reasonable in a low interest rate and strong earnings growth environment. In our opinion therefore, there is merit in increasing allocation to equities (for those with a medium to long term view) and to stay invested.




Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




 

Jeevan Umang

 

Life Insurance Corporation of India recently launched `Jeevan Umang', a plan that offers cover up to the age of 100. The policy offers annual survival benefits from the end of the premium-paying term till the age of 99, and a lumpsum payment at the time of maturity, or on the policyholder's death. The product, which covers life up to 100 years, is called a whole-life product. ET digs deep into whole-life products and finds out who should buy it.

1. How does a whole-life policy work?

A whole-life plan is a life insurance policy that remains throughout the lifetime of the insured. Some companies have launched whole-life policies that offer maturity and death benefit under such a policy . The advantages are fixed costs and low premium payments. LIC's product offers maturity benefit after 40 years from the date of commencement of the policy , provided the insured becomes 80.

2. Who can buy it?

Though different companies have different age limits of buying this policy , LIC's Jeevan Umang can be bought by anyone between 90 days and 55 years. Though the maturity age is 100 years, companies have launched products with 80 years maturity . If the insured lives past the maturity age, the policy will become a matured endowment. The insured will get the benefit as maturity benefit in any money back or endowment plan.

3. What is the return?

Return varies depnding on insurers.

LIC's product offers survival benefits equal to 8% of basic sum assured and paid-up sum assured, respectively . The policy pays first survival benefit at the end of the premium-paying term and thereafter on completion of each subsequent year till the life assured survives, or till the policy anniversary prior to the date of maturity . There's no upper limit to the basic sum assured, but it has to be in multiples of `25,000, with premium paying term options of 15, 20, 25 and 30 years. Income tax benefit is available provided all premiums have been paid.

4. What if a premium is discontinued?

If the payment of premium is discontin ued after three years, a paid-up policy for reduced sum assured is secured.However, these reduced paid-up policies are not entitled to participate in the bonus declared thereafter. But the bonuses already declared on the policy will remain attached, provided the policy is converted into a paid-up policy after the premiums are paid for five years.




Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




 

Future Generali New Assure Plus


Future Generali India Life Insurance Company has launched New Assure Plus. It is a simple and flexible, non-linked, participating insurance plan, which means the maturity payouts can be enhanced by way of bonuses. One can choose between two death benefit options. Customers can choose a policy term and premium payment term as per their financial needs.


Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




 

Friday, October 13, 2017

DSP BlackRock Balanced Fund Details

    DSP BlackRock Fund Online 


DSPBR Balanced Fund below the following;

1.       Investment Illustration since inception of this scheme, 27th May 1999.

2.       Portfolio as on 30th September 2017.

 

1. Scheme information

Inception date

27th May 1999

AUM

5922 crores

Equity

72.96%

Debt

27.04%

Average maturity

3.75 years

Modified duration

2.91 years

Fund Managers

Equity

Atul Bhole

Fixed Income

Vikram Chopra, Pankaj Sharma

Exit load

< 12 months- 1%:

> 12months - Nil

 

 2.  Equity composition (percentage allocation)

Large Cap

Mid Cap

Small Cap

Micro Cap

48.4%

12.2%

6.6%

5.8%

 

3.Dividend history & dividend yield

Date

NAV

Dividend

Div yield

28-Sep-17

25.01

0.21

0.84%

28-Aug-17

25.55

0.21

0.82%

28-Jul-17

25.79

0.21

0.81%

28-Jun-17

24.99

0.21

0.85%

26-May-17

25.67

0.21

0.83%

28-Apr-17

25.61

0.21

0.82%

28-Mar-17

24.66

0.21

0.83%

28-Feb-17

24.21

0.21

0.85%

27-Jan-17

24.50

0.20

0.82%

28-Dec-16

22.71

0.21

0.92%

28-Nov-16

23.65

0.21

0.90%

28-Oct-16

25.40

0.23

0.92%

28-Sep-16

25.46

0.25

1.00%

26-Aug-16

24.85

0.25

1.00%

28-Jul-16

24.49

0.24

0.98%

28-Jun-16

23.31

0.23

1.00%

27-May-16

23.20

0.23

0.98%

28-Apr-16

22.84

0.23

1.00%

28-Mar-16

22.19

0.22

1.01%

26-Feb-16

20.94

0.21

1.02%

22-Jan-16

22.91

0.75

3.27%

 

4. Performance of the fund

Performance as on 30th September

1 Month

3 Months

6 Months

1 Year

2 Years

3 Years

5 Years

8 Years

10 Years

YTD

Since Inception

DSP BlackRock Balanced Fund - Growth

(1.52%)

2.63%

6.17%

11.06%

13.91%

13.81%

15.22%

12.13%

11.16%

17.86%

15.43%

CRISIL Balanced Fund - Aggressive Index

(1.41%)

2.48%

6.03%

11.87%

10.75%

8.63%

10.90%

8.80%

7.94%

14.60%

12.54%

*inception date 27th May 1999


Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Tax Saver ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now
Related Posts Plugin for WordPress, Blogger...

Popular Posts

Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now