Prajna Capital - An Investment Guide

  SBI Mutual Fund has announced the launch of new fund offer (NFO) of SBI Debt Fund Series 90D – 50. The new fund offer will be open for subscription from October 3, 2011 to October 5, 2011. The minimum subscription amount will be Rs. 5000 and in multiples of Rs.10 thereafter. It will have both growth as well as dividend option. The scheme will be listed on the Bombay Stock Exchange. -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online    

     Major mutual fund houses have been paying out dividends, especially on investments in equity and balanced fund categories. The gains netted by a mutual fund scheme are reinvested in the fund with the growth option. On the contrary, in a scheme with the dividend payout option, the gains are periodically distributed as dividend. Consequently, the NAV falls to the extent of the dividend paid out. A good dividend payout in uncertain markets will reassure investors and encourage them to stay invested longer.    How efficiently can the recent harvest of dividends be used by small investors? Can this haul be made to work harder for you? This largely depends on an investor's liquidity needs, financial constraints and risk appetite. The money can be used to clear unpaid dues, saving for contingency fund and meeting other personal financial obligations.     Some investment options for dividends you can explore: Fixed maturity plan     They are predominantly debt-oriented schemes flo...

Objective To regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity related instruments Option/Plan Growth Option,Quarterly Dividend Option,Monthly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment Facility. Exit Load (as a % of the Applicable NAV) In respect of each purchase / switch-in of Units upto and including Rs. 10 lakhs in value, an Exit Load of 0.50% is payable if Units are redeemed / switched-out within 6 months from the date of allotment. In respect of each purchase / switch-in of Units greater than Rs. 10 lakhs in value, an Exit Load of 0.25% is payable if Units are redeemed / switched-out within 3 months from the date of allotment. Minimum Application Amount For new investors : (Growth & Quarterly Dividend Option) – Rs.5000 and any amount thereafter under eac...

Keeping a note of card details and helpline numbers helps You must also erase the last three digits, the CVV number, on the back of your card YOUR credit card is your cash on the go, but if not handled carefully, it can lead to complications in the future. Losing a credit or debit card is a common thing that can happen to any one of us at some point of time. But, it is important to react immediately when you notice your card is missing. Always keep a list of your credit cards, credit card numbers and customer care toll-free numbers handy, in case your card is stolen or lost. Inform your credit card company/bank immediately: You should store the 24hour helpline number of the lender on your phone. In case you haven't done that and lost your card, look up the number from sources such as a website or number search companies. Credit card companies advise customers to report loss of card within 24 hours, but it is better to inform the lender promptly because the bank can then blo...

  Here are the consequences of inaccurate information furnished while applying for an insurance policy    Insurance is based on the accuracy of the information provided by the insured to the insurance company. In case of wrong information given in the documents, the chances of getting a claim are reduced. A life insurance company offers a policy on the basis of a proposal. This is the first step to get a policy. The form seeks basic information of the proposer and the life assured. This includes name, age, address, education and employment details of the proposer, and medical history of the life to be assured.    There are also questions pertaining to the health status of family members. The proposer and the life to be assured have to mention their incomes in the proposal form to satisfy the insurer about their ability to pay for the insurance, and the need for the insurance.    The proposal form also has questions pertaining to the existing insurance policies of both the propos...

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

  You can choose from the retirement products offered by insurance companies and mutual fund houses. You can also opt for New Pension Scheme GOLFER Chi Chi Rodriguez once said when a man retires, his wife gets twice the husband but only half the income. Retirement isn't only about gardening or playing with grandchildren. If not planned right, life can become a pain. While on the other hand, if planned well, it can be the best stage of your life. Financial Chronicle shows you how you can use a variety of retirement products to enjoy your golden years. Peaceful retirement ll life insurance companies have a strong A focus towards retirement or pension products. Insurers offer two kinds of retirement products. One in which the corpus is built over the years by regular investment and the corpus is then annuitised (breaking of corpus into monthly instalments). The pension amount depends on the age when monthly pension is to begin and average life expectancy. The other kind of pr...

What is a PMS?   A PMS (Portfolio Management Service) is a service offered to investors wanting to invest in the Indian stock markets on the basis of expert knowledge, research and experience.   Who can use a PMS?   A PMS service can be used by an investor who wants to invest in the Indian stock markets and benefit from India's economic growth, but doesn't have the necessary time, knowledge or experience to do so.   How is a PMS different from a Mutual Fund?   A PMS is more transparent than a Mutual Fund as the stocks purchased are in your name. The cost structure of the PMS is also more competitive and thus give you the opportunity to make higher returns.   Can everyone invest in a PMS?   While a Mutual Fund is open to everybody, a PMS is more selective and the minimum amount needed to invest is higher. It is meant for more sophisticated investors looking for exponential returns.   What are the types of returns I can expect?   Returns vary on t...

While investing in a debt mutual fund, there are two factors one should look at — average maturity and yield to maturity of the portfolio. These are the two variables most fund fact sheets and aggregators generally provide. AVERAGE MATURITY: It is the average of the maturities of all the debt instruments held in a fund portfolio. A debt mutual fund invests in various fixed income instruments such as government securities, government bonds, corporate papers and certificates of deposits. Each instrument has its own maturity date – the date on which the holder of the security is paid the original amount of money borrowed. Average maturity tells the investors how sensitive a bond fund is to change in interest rates. When interest rates move down, the prices of the bond move up. That results in capital appreciation for the investors and boosts the returns on their debt fund portfolios. On the other hand, when the interest rates move up, the prices of bond move down. This leads to a los...