Skip to main content

All new financial world

INSURANCE    

MEASURE: Insurers cannot front load costs
EFFECTIVE DATE: September 1
IMPACT: Policyholders who have to exit early (after the 5th year) will not lose a large chunk of their investment to charges as they did in the past. MEASURE: Three-year lock-in period for all Ulips increased to five years EFFECTIVE DATE: September 1 IMPACT: Insurers cannot sell Ulips as short term plans MEASURE: Minimum cover doubled on all life ulips EFFECTIVE DATE : September 1 IMPACT: Out of every Rs 100 invested in Ulips, a larger component will go towards life insurance. MEASURE: Stipulation of 4.5% guaranteed return on pension and annuity plans EFFECTIVE DATE: September 1 IMPACT: Insurers will direct major part of the investments to safe avenues like government securities, reducing the scope for earning higher return from equityoriented products. MEASURE: All limited premium unit-linked insurance products, other than single premium products, shall have premium paying term of at least 5 years EFFECTIVE DATE: September 1 IMPACT: Insurers cannot position Ulips as mutual funds. Policyholders can look forward to better returns as regular premium payment with the cap on charges will compound returns better.
   

MUTUAL FUNDS

MEASURE: NFO (new fund offer) subscription period reduced from 30 days to 15 days, except for equity-linked saving schemes).
EFFECTIVE DATE: July 1
IMPACT: The time taken to process applications will decrease. The truncated subscription period will mean that unsuccessful applicants will get their refunds faster.
MEASURE: Ban on distribution of dividends out of unit premium reserve

Already in operation

IMPACT: Earlier, fund houses did not hesitate to dip into fresh funds from new investors for distributing dividends, instead of realised gains. This directive will put an end to this practice.

MEASURE: Extension of Application Supported by Blocked Amount (ASBA) facility to NFO investors.
EFFECTIVE DATE: July 1
IMPACT: Since, under ASBA, application money is debited from the applicant's account only after allotment is finalised, the tiresome task of waiting for refund is eliminated. Also, investors do not stand to lose out on the savings bank interest to be earned during the period.

MEASURE: Valuation of money market and debt securities with maturity of over 91 days, on marked-to-market basis
EFFECTIVE DATE: August 1
IMPACT: Those investing in liquid-plus schemes, which invest in such securities, could see volatility in returns going forward. However, since such schemes predominantly attract institutional investors, retail investors' portfolios may not see a major upheaval.

BANKING

MEASURE:
Implementation of Base Rate – the new benchmark below which banks cannot lend
EFFECTIVE DATE: July 1
IMPACT: The aim is to bring in more transparency in pricing of loans and also, ensure that benefits of any rate cut by banks are passed on to existing home loan borrowers too, and not just new ones, as was typically the case until now. Banks will offer existing home loan borrowers an option to migrate to the new structure. Those who have availed of loans under teaser schemes will see their rates being linked to the lending bank's Base Rate once the fixed-rate period expires. Several banks have announced their Base Rates, ranging from 7.5-8.25%.

MEASURE: Dishonouring of cheques with alterations. The directive is applicable only to cheques cleared under the cheque truncation system (CTS)
EFFECTIVE DATE: July 1
IMPACT: CTS is currently operational only in New Delhi, with the Chennai project set to become functional soon. The RBI has similar plans for Mumbai and Kolkata in future, which means account holders across the country will have to get used to exercising caution while entering details on the cheque leaves or ordering additional cheque books, over a period of time.

 


Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now