Prajna Capital - An Investment Guide

Below are current open New Funds Offers (NFOs) from various AMCs: Scheme Name Mutual Fund Close Date Birla Sun Life Fixed Term Plan - Series DI - Dividend Birla Sun Life Mutual Fund Aug 3, 2011  Birla Sun Life Fixed Term Plan - Series DI - Growth Birla Sun Life Mutual Fund Aug 3, 2011  ICICI Prudential Multiple Yield Fund - Plan C - Dividend ICICI Prudential Mutual Fund Aug 12, 2011  ICICI Prudential Multiple Yield Fund - Plan C - Growth ICICI Prudential Mutual Fund Aug 12, 2011  IDFC Fixed Maturity Plan - Yearly Series 45 - Dividend IDFC Mutual Fund Aug 3, 2011  IDFC Fixed Maturity Plan - Yearly Series 45 - Growth IDFC Mutual Fund Aug 3, 2011  Kotak Fixed Maturity Plan - Series 55 (24 Months) - Dividend Kotak Mahindra Mutual Fund Aug 9, 2011  Kotak Fixed Maturity Plan - Series 55 (24 Months) - Growth Kotak Mahindra Mutual Fund Aug 9, 2011  L&T Fixed Maturity Plan - IV (July24M A) -...

While riders come cheap, stand-alone policies provide comprehensive insurance Riders cost less than standalone policies. Riders from life insurers do not have any expense loading on the rider premium as the same has already been claimed for the base policy. However, expense loading is charged separately in a standalone policy, making it expensive. In case of critical illness riders and policies, age is a deciding factor for the premium you end up paying. Those in the lower age group, or, with a clean medical history can buy it cheaper. However, even here, a rider will cost you less than a standalone policy So, for a 25-year-old, when bought from a non-life insurer, a critical illness cover for five years will cost ` 2,534 for a coverage of ` 5lakh. In contrast, the same bought as a rider will cost ` 1,355 for a period of 10 years. Also, premiums for riders remain constant for the full term of the policy, unless specifically mentioned in the contract. Most non-life insurers o...

    THE policy, as the name suggests, provides term insurance to senior citizens.The minimum and the maximum entry age are 50 and 85, respectively. Though the product offers a whole life cover, it does not ask buyers to undergo medical tests. The premium paying term, though, will end at age 90. The company offers a maximum sum assured of ` 5lakh. The minimum sum assured is as low as ` 2,338. Both these apply only two years after the policy has been bought. If the policyholder dies before two years, the dependents will be paid 125 per cent of the total premium paid till date. But despite the bonus of 25 per cent over the premium paid, the product is expensive, as compared to other term plans available. The annual premium for a 50-year male seeking maximum cover under IDBI's Termsurance Seniors Insurance Plan is 18,195. If the same cover is bought at the age of 85, it will cost ` 213,890. The same person can buy a 10-15 year simple term from other insurers at 6,000 annu...

STANDARD Chartered Bank's alleged sale of debentures to its private banking clients with an illegal buyback option has put the spotlight on debentures. Issuing debentures is one way by which companies raise loans for themselves. Although the money raised by it becomes a part of the company's capital structure, it does not become share capital. Those who buy debentures are repaid the amount, along with an interest. Typically, when the capital markets are down and companies find it difficult to raise cash from the equity markets, they would tap alternate sources such as debentures and corporate bonds. Companies find it cheaper to issue debentures, since it does not require any registration cost, like bonds do. There are different types of debentures, including non convertible debentures ( NCD ), partly convertible debentures, fully convertible debentures and optionally convertible debentures. Typically, debentures come with some guarantee — either on returns, both on the...

Helps in applying for a loan, travelling abroadWith just two days left to file income tax returns, taxpayers falling in the `5-lakh bracket and earning less than the 10,000 limit, have the option of not filing their returns. However, there are a number of reasons why you should file. An Income Tax Return (ITR) receipt is an important document because it is more elaborate than Form 16 — the other important document for salaried individuals. Reason: Form 16 shows salary from only one employer and the tax deducted by it. Whereas, ITR also shows income from other sources also, including investments, which one might not have disclosed to the employer. In effect, is a more realistic depiction of the individuals monetary position.   If you have decided not to file returns on or before July 31, here's why you should revisit your decision: Borrowing: While applying for a home loan, many banks make do with your Form 16. But, according to industry experts, if you aren't getting a loan...

   The domestic stock markets have been volatile. Both internal and external factors are having an impact on the markets. The markets are no longer insulated. Any development across the globe has an impact on the domestic markets. FII funds     Foreign institutional investors ( FIIs ) are dominant players in the domestic markets. Their funds' inflows and outflows affect market sentiments. The FIIs invest or sell here based on their global strategies, and the macro and micro economic factors here. It is in this context that you need to understand the reasons behind the volatility in the markets. Inflation     Internally, a significant factor affecting the markets is inflation. It is affecting corporates due to the increased costs, higher prices and lower sales volumes. The continuous interest rate increases by the Reserve Bank of India ( RBI ) is another factor. This has led to an increase in interest costs for the corporates. So, the profits of leveraged companies are directly af...

  Ulips give you option to switch funds depending on risk appetite ONE of the important features offered by life insurance companies in their unit-linked insurance plans or Ulips, as they are popularly called, is the option to switch funds. Companies offer their customers a certain number of free fund switches, usually four in a year. However, some companies such as Tata AIG Life Insurance and Bharti Axa Life Insurance offer as many as 12 free switches in a year. But statistics given by insurance companies reveals that hardly 3-5 per cent of customers switch funds in their entire policy tenure. In a unit-linked insurance plan, risk of investment lies with the customer. Therefore, the customer decides asset class where she/he wants to invest. Companies have four to five fund options, mainly equity, debt and a mix of both. Customers choose a fund depending upon their risk appetites. Any switch over the limit prescribed companies is chargeable. Insurance companies charge between ...