Finance Trading Times

Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details

noreply@blogger.com (Financial Advisors) — Wed, 18 Jan 2012 08:17:00 +0000

Details about Morgan Stanley Multi Asset Fund: Review, Analysis, Details & Investment Opinion.
Another mutual fund house is going to make an entry into the multi-asset fund offering. This time it is the world renowned Morgan Stanley Mutual Fund India which is going to launch its mutual fund called the Morgan Stanley Multi Asset Fund.

In this article, we will analyze how good is this Morgan Stanley Multi Asset Fund NFO, whether this Morgan Stanley Multi Asset Fund offers anything new or unique for the investors and whether the investors should invest in Morgan Stanley Multi Asset Fund.

Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details

Let's begin with some basic details about Morgan Stanley Multi Asset Fund.

What are the NFO dates for Morgan Stanley Multi Asset Fund?

The NFO period for Morgan Stanley Multi Asset Fund is from 17th January 2012 and will close on 31 January November 2012. After the NFO period, the regular buying and redemption of fund units will start.

What is so unique about this Morgan Stanley Multi Asset Fund?
The unique thing about this mutual fund is that it is offering a mix of 3 different assets for investments - Equity (Stocks), Debt and Gold. So basically, when an investor invests his money in this Morgan Stanley Multi Asset Fund, his invested money will be allocated to 3 different asset classes - Stocks, Debt and Gold - in the proportion as mentioned by the fund managers. Hence, this Morgan Stanley Multi Asset Fund offers a good option for diversified investing. However, investors should note that this kind of product is not the first one to be offered in the Indian markets. There already exists similar triple asset funds - examples are Axis Triple Advantage Fund and Taurus MIP Advantage Fund NFO: Review Analysis & Details, which can also be looked on by the investors. Specially in the way how these existing funds with 3 asset classes have performed in the recent past.

What are the other competitor products available in comparison to Morgan Stanley Multi Asset Fund?
As of now, we are aware of atleast 2 such triple asset funds already available in the market.
1) Axis Triple Advantage Fund and

2) Taurus MIP Advantage Fund NFO: Review Analysis & Details
However, there can be more similar products offerings from other fund houses.

What are the risks of investing and trading Morgan Stanley Multi Asset Fund?
Diversification is good - but it comes at a cost. Investing in more no. of assets will mean more brokerage and transactional costs and fees.
Diversification also leads to limiting the profit, apart from limiting the losses. For e.g., if gold prices shoot up, but returns from stocks is negative, all the profits from increase in gold prices will be nullified by the loss in stocks.
The proportion in which your invested money will be split across the 3 assets will also matter.

Final Thoughts about Morgan Stanley Multi Asset Fund?
Another multi-asset fund offering which may appeal to investors looking for diversification. Although it comes with its own set of risks as mentioned above.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Morgan Stanley Multi Asset Fund.

There will be 2 plans for investors to choose from:

Plan A: Debt and Money market instruments: 80-100%; Equity and Equity Related Instruments: 0-20%.
This plan will NOT have any exposure to Gold.

Plan B: Debt and Money market instruments: 65-100%;[i] Equity and Equity Related Instruments and [ii] Gold Exchange Traded Funds: 0-35% where each of [i] and [ii] will not exceed 20% of net assets.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Morgan Stanley Multi Asset Fund Entry Load:
Morgan Stanley Multi Asset Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? Yes, but only through ECS mode.
The benchmark for Morgan Stanley Multi Asset Fund will be a Composite benchmark depending upon the plan:

Plan A: 80% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty

Plan B: 70% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty + 15% Domestic Price of Gold*

Mr. Jayesh Gandhi and Mr. Ritesh Jain will be the fund manager for Morgan Stanley Multi Asset Fund.

Coal India Wage Hike: Latest News of 25% Pay increase

noreply@blogger.com (Shobhit) — Fri, 13 Jan 2012 06:44:00 +0000

The management of the largest coal miner of India, Coal india Limited, has finally come to agreement with the workers union about the Wage Hike or Salary Hike for its 3 Lakh Workers (300,000 employeees). The reports say that the wage hike agreement has been for 25% increase in the salary of the non-executive employees of Coal India Limited.

Coal India Employee Salary Hike: Latest News

Although the unions were demanding around 100% wage hike (i.e. double the existing salaries), and the various analysts were of the opinion that hike would be in the range from 15% to 30%, the management is reported to have settled it for 25% increase.
How many employees of Coal India will benefit from this Wage Hike?
It is reported that around 300,000 (3 Lakh) employees of Coal India will benefit from the Pay hike decision

How much will this Wage Hike cost Coal India ?
If 25% wage hike is what is agreed on, then it will cost around Rs. 3,360 crore - which will not impact the company financials much as it is in line (or somewhat lower) with the majority of estimates by the stock analysts.
Overall, The employee cost for coal India in FY'12/13 is expected to remain in-line with the estimates.

Coal India's wage bill is Rs 15,000 Crores per year. With this additional 25% increase, another additional 4000 crore per year will be required for the wage bill.

What is the current basic salary of Coal India Workers?
As of now, the basic salary of a Coal India worker is around Rs 8,320 per month.
Add around 25% hike to it and it will reach around 10,400 or so. However, exact figures will be available later.

Related: Coal India IPO

From which date will the Coal India Wage Hike be effective?
Coal India Wage Hike be effective is reported to be effective from July 2011. That means workers can expect some lumpsum amount payment in form of arrears payment. This new increased wage will be for 5 years.
Coal India Wage Hike

Budget Date 2012 India: Expected after 6 March 2012: Railway Budget to follow

noreply@blogger.com (Shobhit) — Wed, 11 Jan 2012 10:21:00 +0000

Like last year we had provided the information about the Indian Budget Dates 2011, this year again we provide the information as available at this moment about the Budget Dates.

In this article, we cover details about Indian Budget Date for the year 2012-2013 for the General Annual Union Budget. Also covered are the details for expected dates of Railway Budget for India for the year 2012-2013

General Union Budget 2012 Date India:

The elections are going to be held in 5 states of India spanning the months of February and early period of March. The last day of elections is slated to be 6th March 2012 and hence there will be no possibility of any budget coming out before 6th March because of the code of conduct applicable by the Election Commission of India. Hence, it is certain that the budget will be announce only after 6th of March when the polling ends.
Most of experts believe that the General Union Budget for India will come out on some date around 7 to 10 March 2012. Although the Finance Minister Mr. Pranab Mukherjee avoided mentioning any precise date when the TV reporters surrounded him with this question, but most probably the India Budget Date will be around the above mentioned dates.

Railway Budget 2012 Date India:

Along with the general budget, the Railway budget is also eagerly awaited, especially by the people whose businesses are dependent on Railways for goods transfer. The railway budget is usually announced a bit earlier than the general union budget, but this time it can be either early or later than the general budget. Ultimately, its the government to decide the precise dates, but both the budgets should be out within the period of 7 March 2012 to 10 March 2012.
In terms of the general expectations from the Budget, here is the list:
- Clarity & implementation about Direct Tax Code (DTC)
- Goods and Services Tax (GST)
- Sustainable Growth as the inflation nos are looking smooth
- New banks allowed to get banking licences
- Reforms are high on agenda
- Tax reduction

SREI Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

noreply@blogger.com (Shobhit) — Tue, 03 Jan 2012 05:03:00 +0000

This article covers the details about SREI Infra Bonds for Tax Saving (Long Term Infrastructure Bonds) from Srei Infrastructure Finance Ltd (SIFL). Calculations for Tax saving in SREI Infra Bonds as per the different income tax brackets is also covered..

High on the heels of PFC, IDFC, L&T and IFCI who recently opened the subscription for their respective long term infrastructure bonds, SREI has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

Let's start with some basics first for the SREI Infrastructure bonds issue:
What is the business of SREI which is offering these Tax Saving Infrastructure Bonds?
SREI is a leading company in infrastructure financing in India and has been in operations since last 22 years.

SREI Infra Bonds for Tax Saving

What are the products and services offered by SREI Power Finance Corporation ?
The company offers
- Infrastructure Project Financing
- Advisory and Development
- Infrastructure Equipment Finance
- advisory and other services to power sector
- SREI also claims to be the first Indian infrastructure NBFC to be listed on the London Stock Exchange

How do the SREI Power Finance Corporation Tax Saving Infrastructure Bonds work?
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of SREI Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IFCI, PFC, IDFC or L&T or SREI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the SREI Infra Bonds for Tax savings in more detail:

The issue size for the SREI infra bonds is Rs. 300 Crores, although the company was eligible for 500 crores of fund raising.

The bonds are being offered in 4 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 & 2 - is for 10 year long bonds paying an interest rate of 8.90% per annum - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)

Series 3 & $ - is for 15 year long bonds paying an interest rate of 9.15% per annum - again, - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)
Exit option available after 5 years and 10 years period. Lock in period is 5 years.
The bonds will be listed on BSE or the Bombay Stock Exchange.

Each bond will have a face value of Rs. 1000.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

Each SREI Infra Bond has a face value of 1000 Rs. Upper limit is not there i.e. one can apply for and buy any no. of bonds from SREI.
Allocation is on first come first serve basis.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the SREI Infra Bonds.

How will the funds or capital raised by SREI infra bonds be used by the company?
The capital or funds raised by the company will be used for infrastructure lending.

What differentiates SREI Infra Bonds from the other issues like PFC IFCI, L&T & IDFC Infra Bonds which are currently open?
The main differences between SREI infra bonds and IFCI, IDFC & L&T infra bonds are the credit rating assigned, coupon rate offered and the price per bond. See details below:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) IFCI Infra Bonds for Tax Saving
4) PFC Infra Bonds for Tax Saving

Other then the above, investors can also check the NHAI Bonds for Tax Savings

What is the security rating for the SREI Infra Bonds ?
The issue has 'AA' rating (indicating high degree of safety) from Care Ratings

How much will I effectively save by investing in SREI Infra Bonds ?
The calculations will be similar to what we covered for SREI Infra Bonds. Please see IDFC Infra Bonds for Tax Saving: Calculations, Review and Details
Also note that Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961 and shall not form a part of the total income

What are the investment dates and period for SREI Infra Bonds ?
The SREI Infra Bonds subscription date was opened on December 31, 2011 and will close on January 31, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings.
Srei Capital Markets, Karvy Investor Services, ICICI Securities & RR Investors Capital Services are the BRLM or Book running lead managers to the SREI Long term Infrastructure Bonds issue for tax savings

PFC Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

noreply@blogger.com (Shobhit) — Mon, 02 Jan 2012 05:43:00 +0000

This article covers the details about PFC Infra Bonds for Tax Saving (Long Term Infrastructure Bonds) from PFC. Calculations for Tax saving in PFC Infra Bonds as per the different income tax brackets is also covered..
It was in the last financial year in the month of around Februrary 2011 when we saw the Power Finance Corporation or PFC came out with its PFC Long Term Infrastructure Bonds issue. This year too, the company has decided to cash in on the tax saving buzzword just before the close of this financial year and has come out with a fresh issue of similar PFC Long Term Infrastructure Bonds for Tax Saving.
High on the heels of IDFC, L&T and IFCI who recently opened the subscription for their respective long term infrastructure bonds, PFC has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

Let's start with some basics first for the PFC Infrastructure bonds issue:
What is the business of PFC Power Finance Corporation which is offering these Tax Saving Infrastructure Bonds?
PFC is a leading financial institution in India focused on the power sector.
It works closely with the Government of India, State Government and Power sector utilities as well sa power sector provate companies for the development and implementation of policies and structural and procedural reforms for the power sector in India.

PFC Infra Bonds for Tax Saving

What are the products and services offered by PFC Power Finance Corporation ?
The company offers
- various financial products to pwer sector and projects
- advisory and other services to power sector
- project conceptualization for generation (conventional and renewable), transmission and distribution projects as well as for related renovation and modernization projects
- provides funding and financing, long and short term loans, rebt restructuring services
- Provides fee-based technical advisory and consultancy services for power sector projects

What are the details about the financial performance of PFC Power Finance Corporation ?
The company being a government run "Nav-Ratna" company is known for its solid and consistent financial performance. Both Total Income and Profit After Tax for the company has increased in the recent past.
Moreover, the credit rating agencies have provided a good stable rating to the issue of tax saving bonds. (see details below)

How do the PFC Power Finance Corporation Tax Saving Infrastructure Bonds work?
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of PFC Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or PFC. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the PFC Infra Bonds for Tax savings in more detail:

The issue size for the PFC infra bonds is Rs. 4033.13 Crores.

The bonds are being offered in 2 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 - is for 10 year long bonds paying an interest rate of 8.20% per annum - coupon rate is lower than that offered by earlier issues of IFCI, IDFC and L&T which are at 9% and more (see details below)

Series 2 - Is for 15 year long bonds paying an interest rate of 8.30% per annum - again, coupon rate is lower than IFCI, IDFC and L&T which are at 9% and above
Exit option available after 5 years and 10 years period.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

Each PFC Infra Bond has a face value of 1000 Rs. Upper limit is not there i.e. one can apply for and buy any no. of bonds from PFC.
Allocation is on first come first serve basis.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the PFC Infra Bonds.

What differentiates PFC Infra Bonds from the other issues like IFCI, L&T & IDFC Infra Bonds which are currently open?
The main difference between PFC infra bonds and IFCI, IDFC & L&T infra bonds is the credit rating assigned, coupon rate offered and the price per bond. See details below:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) PFC Infra Bonds for Tax Saving

Other then the above, investors can also check the NHAI Bonds for Tax Savings

What is the security rating for the PFC Infra Bonds ?
The issue has been rated 'CRISIL AAA/Stable' by CRISIL and 'ICRA AAA' by ICRA.

How much will I effectively save by investing in PFC Infra Bonds ?
The calculations will be similar to what we covered for PFC Infra Bonds. Please see PFC Infra Bonds for Tax Saving: Calculations, Review and Details
Also note that Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) o! f the Income Tax Act, 1961 and shall not form a part of the total income

What are the investment dates and period for PFC Infra Bonds ?
The PFC Infra Bonds subscription date was opened on December 30, 2011 and will close on January 16, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings

LIC Bima Bachat Policy: Review Analysis & Details

noreply@blogger.com (Shobhit) — Fri, 30 Dec 2011 10:26:00 +0000

This article contains details about LIC Bima Bachat Policy with Review Analysis & Calculations
In the print media one can easily spot ads by LIC for their Bima Bachat Policy. Occassionally the ads also appear on TV. This is being advertised as a single premium money back policy which claims to offer insurance for sum assured amount to the nominee/family members in case of death of the policy holder. The policy also offers assured returns in case of survival of the policy holder during the policy period. Overall, it sounds good, but let's see the numbers involved to get the clear picture of the policy details.

What actually is the LIC Bima Bachat Policy?
LIC Bima Bachat Policy literally means "Insurance Saving Policy".
If an investor or insured or policy buyer decides to buy this LIC Bima Bachat Policy, he needs to pay only ONE-TIME SINGLE PREMIUM. The premium to be paid depends upon the age of the policy holder, the required cover (sum assured) and the duration of the policy (see details below).
What this LIC Bima Bachat Policy offers is 2 scenarios:
1) In case of death of the policy holder during the policy period - the nominee or family members will get the sum assured or insurance cover as selected by the policy holder
2) In case of survival of the policy holder - at the end of policy period, he/she will receive back the entire premium paid at the start of the policy, plus 15% of the sum assured value every 3 years (excluding the last year), plus a variable amount (loyalty bonus), as decided by LIC.

Hence this LIC Bima Bachat Policy appears to be offer a good product with a mix of investment plus insurance, at the first glance (although we do not receommend mixing insurane with investment - see details below).

LIC Bima Bachat Policy: Review Analysis & Calculation Details

What are the policy duration period offered by LIC Bima Bachat Policy?
The LIC Bima Bachat Policy offers 3 options for duration period - 9 years, 12 years and 15 years.

How is the single premium determined for purchasing the LIC Bima Bachat Policy?
The premium to be paid depends upon the age of the policy holder, his/her desired sum assured amount (insurance amount) and the duration of the policy. Please see the table below:

The sample premium rates are as under: -

Age	Annual Premium per 1000 SA
	9	12	15
15	716.40	771.35	804.00
20	717.20	771.85	804.40
25	717.55	772.25	804.95
30	718.45	773.35	806.10
35	721.05	775.75	808.55
40	725.80	780.25	812.95
45	734.10	787.60	819.60
50	746.60	797.90	828.95
55	762.65	811.95	841.75
60	784.80	831.30	859.35
65	816.25	-	-

And that's not all - if you happen to take insurance cover (sum assured amount) for more than 50,000 Rs., you will be eligible for a rebate/discount in the premium you pay as per the table below:

The higher amount you select for your insurance cover, the higher rebate you get in paying your premium amount for the LIC Bima Bachat Policy.
Hence, you as a policy holder get to select your choice of insurance cover and policy duration. Depending upon your age and duration of policy, the single premium to be paid is arrived at.

If I select a high value of sum assured taking rebate in LIC Bima Bachat Policy, does that rebate reduce my 15% bonus and/or overall return?
Yes and No - The rebate percentage will not reduce your 15% return calculations every 3 years because it is based upon the sum assured amount. But it will reduce your final return guaranteed amount as that is dependent on the premium you pay.

Can I see an example of death and survival benfit for LIC Bima Bachat Policy?
Yes. LIC does provide a good illustration for the same.
Assume that there is a policy holder 35 years old who bought a 9 year duration policy for a sum of Rs One Lakh.
He pays a single premium of Rs 67058.
Here are the death and survival benefit illustrations:

End of year	Total premiums paid till end of year	Benefit on death during the year
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1 to 9	67058	100000	0	0	100000	100000

Survival Benefits :

End of year	Total premiums paid	Benefit payable on survival at the end of specified year
		Guaranteed	Variable		Total
		Guaranteed	Scenario 1	Scenario 2	Scenario 1	Scenario 2
3	67058	15000	0	0	15000	15000
6	67058	15000	0	0	15000	15000
9	67058	67058	0	24300	67058	91358

Is this LIC Bima Bachat Policy really useful ?
That's the million dollar question - One needs to look at it from both the scenarios of returns it is offering.
Let's take 2 extreme cases - one of a 35 year old person and another of a 65 year old person - in both cases sum assured selected is 1 Lakh and policy duration is 9 years.

For the 35 year old case, he will pay a one time premium of Rs. 67058, while For the 65 year old will pay a one time premium of Rs. 75911.

- in case of death, either of their nominees will get only 1 Lakh Rs. as sum assured
So from an insurance point of view, I dont think this high cost they are paying as a premium (Rs. 67058 or Rs. 75911) justifies the 1 Lakh insurane benefit.

- in case of survival, the 35 year old will get Rs. 97,058 (67,058 + 15,000 + 15,000) guaranteed (plus any additional loyalty additions); while the 65 year old will get Rs. 105911 (75911 + 15000 + 15000).
Hence for the 35 years old, the effective percentatge return over a 9 year long period is 97058/67058 = 44.75% while for the 65 years old, it is 105911/75911 = 39.52% over a 9 year period.
The nos. may be looking big, but do remember that they are over a 9 year long period.
Today, even if you invest the same amount in a Bank Fixed deposit for a period of 9 years, the 67,058 for 35 years policy holder case will become 104028.96 Rs. and the Rs. 75911 for the 65 year old case will become 117,762.
Hence, in case of survival, this LIC Bima Bachat Policy is not offering any special returns.

One can say that this is offering insurance, but given the high amount of premium to be paid upfront for the relatively small insurance cover, it does not look appropriate.

So what are the other options for investors other than LIC Bima Bachat Policy?
As illustrated, both on the insurance front and the returns front, this LIC Bima Bachat Policy fails to provide proper benefits. True that it offers both insurance and returns, but both of the scenarios appear inadequate. Please note that the calculations mentioned are based on only Guaranteed Returns - additional loyality values are not considered as they are not guaranteed.

Instead, how about taking a pure term insurance where you dont get any returns but get life cover for a small amount of premium. Rest of the money can be either dumped into a Fixed deposit at even a moderate interest rate of 5% (although interest rate offering currently are at high rates of 9% to 10%). You will be able to claim good coverage on insurance side as well as assured returns on returns side.
Other option is to dump the money into an ETF instead of the fixed deposit, if you are willing to take a chance on the stock market for a long horizon of 9, 12 or 15 years. Here is an example of Here is an Example of Nifty based ETF
If you want to see investment, insurance and tax saving be treated seperately, do ensure to read this eye-opening article Insurance v/s Investment v/s Tax savings

What are the other Policies from LIC other than LIC Bima Bachat Policy?
Here is a list of All LIC Policies

NHAI Bonds for Tax Savings: Review, Analysis & Calculation for NHAI Bonds 2011-12

noreply@blogger.com (Shobhit) — Tue, 27 Dec 2011 05:51:00 +0000

High on the heels of other government infrastructure companies issuing Long term infrastructure bonds offering tax benefits to investors, the National Highway Authority of India (NHAI) has come out with its own issue of Tax Saving Bonds to tap into the benefits of long term capital raising thereby offering investors another option for tax savings.
Let's see some basic details of these NHAI Tax Saving Bonds first:

Calculations for effective returns from NHAI Tax Saving Bonds

What is the actual instrument being offered in the name of NHAI Bonds for Tax Savings
The issue offered by NHAI are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

What is the business and function of NHAI?
NHAI or National Highways Authority of India is an autonomous body under the minitry of Road Transport and Highway, Government of India which was operationalised in the year 1995. Primary functions are to survey, develop, maintain and manage the National Highways. It also builds offices or workshops, establish and maintain hotels, restaurants and rest rooms at or near the highways vested in or entrusted to it and similar functions associated with it.

What are the opening and closing dates for NHAI Bonds for Tax Savings
The NHAI Tax Saving Bond issue opens on 28 December 2011 and closes on 11 January 2012.

What are the tax benefits avaialble for investors in the NHAI Bonds for Tax Savings
The income earned as interest from the NHAI tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of NHAI Bonds for Tax Savings
The issue constitutes of Rs. 5000 Crores with an option of extending it to 10,000 Crores in case of over-subscription.

Are the NHAI Bonds for Tax Savings available only in demat form?
NHAI bonds will be available both in demat and physical form, so all kinds of investors can apply for these bonds irrespective of whether they have demat account or not.

What are the credit ratings assigned to NHAI Bonds for Tax Savings
CRISIL has awarded "CRISIL AAA/Stable" ,CARE has assigned "CARE AAA" and "Fitch AAA(ind) with stable outlook" by FITCH.
All these indicate good stable outlook.

Where will the NHAI Bonds for Tax Savings be listed?
The NHAI bonds will be listed both on BSE and NSE.

What are the other options available for tax savings to investors other than NHAI Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) IFCI Infra Bonds for Tax Saving

What are the investment details about NHAI Bonds for Tax Savings?
Each NHAI Bond will cost Rs. 10,000 and that is also the minimum amount to be invested.
NHAI Bonds have a maturity period of 10 and 15 years and interest will be paid annually.
The coupon rate on the bond 8.20% for 10 years and 8.30% for 15 years.
For individuals in the highest tax bracket of 30.9%, the 10-year 8.2% tax-free bond gives an effective return of about 11.87%, and the 15-year 8.3% bond 12.01%.

How can one apply for NHAI Tax saving bonds?
Interested investors can apply through the paper based applications available at the branches of Union Bank of India, IDBI Bank and Selected Branches of other Bank.
Also, trading sites like icicidirect.com are offering online applications for these NHAI bonds.

Final Thoughts about NHAI Bonds for Tax Savings?
NHAI is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Although the coupon rate of 8.2% and 8.3% may look a bit on the lower side as compared to the high coupon rates offered by other Long term infrastructuer bonds, one also needs to account for the tax free interest income - Interest earned on Long term infrastructure bond is NOT tax free, while the interest earned on these NHAI bonds is tax free. Taking into account the tax benefit of non-taxable interest payment, the effective coupon rate will increase.
Investors looking for tax savings options with shorter maturity can apply for these NHAI bonds

Muthoot Finance NCD: Non-Convertible Debentures Issue Review, Analysis & Details

noreply@blogger.com (Shobhit) — Fri, 23 Dec 2011 05:44:00 +0000

Details about Muthoot Finance NCD Non-Convertible Debentures Issue Dec 2011-January 2012
It was not long time back when the Gold Loan company named Muthoot Finance had come out with its IPO Muthoot Finance IPO in April 2011.
Now, the same Muthoot Finance company has come out with its NCD issue or Non-Convertible Debentures issue which is currently open and claims to double the investors money in five and a half years.
Let's start with the basics first.
What is a NCD or Non-Convertible Debentures?
NCD or Non-Convertible Debentures can be termed as a kind of special category of loan, which cannot be converted to a stock (hence the name Non-Convertible).
NCD's usually offer a higher rate of return as compared to Bank Fixed Deposits as well as FMP or Fixed Maturity Plans (What is a FMP: Explained).
Important thing for investor to note here is that NCD are kind of unsecured bonds, which are not backed by any collateral. Hence, when you are investing in an NCD, it indicates that you are actually offering a kind of unsecured loan to the NCD company. Since it is unsecured, it offers higher rate of interest (more risk-more return). Also, since it is non-convertible, these NCD's cannot be converted to stocks or equity of the company.

Muthoot Finance NCD: Review, Analysis and Calculations

What are the NCD dates for Muthoot Finance NCD?
The Muthoot Finance NCD is open from 22 Decemeber 2011 and will close on January 7, 2012.

What is the issue size of Muthoot Finance NCD?
Muthoot Finance NCD issue is expecting to raise around 600 Crore Rs. through the Muthoot Finance NCD issue. This includes an over-subscription of Rs. 300 Crore.

What is the minimum investment amount requried for investing in Muthoot Finance NCD?
Each debenture is having a face value of Rs. 1000 and minimum five debentures can be applied for. Hence, the minimum application amount comes to Rs. 5000.

What are the various investment options available in Muthoot Finance NCD?
There are 4 options available for investing in Muthoot Finance NCD - coming with 4 different maturity periods of 24 months, 36 months, 60 months and 66 months.

What is the effective interest rates offered by Muthoot Finance NCD?
Depending upon the various maturity period listed above, the effective yield on the Muthoot Finance NCDs will vary from a low of 13% to 13.45% per annum.
The 66 month or 5.5 year maturity period option claims to double the investors money in 5.5 years period.

How will the capital collected through Muthoot Finance NCD will be used by the company?
The money or capital collected through the Muthoot Finance NCD will be used for repaying existing loans as well as financing other business activities.
These activities will include investing as well as lending.
There are plans to increase the no. of branches which currently are at 97.

What are the ratings assigned to Muthoot Finance NCD?
Both CRISIL and ICRA have assigned AA-/ Stable ratings to the Muthoot Finance NCD issue.
As claimed on the company website, the ratings indicate stability regarding the financial obligations on part of the company.

Where will the Muthoot Finance NCD be listed?
The Muthoot Finance NCD will be listed on the Bombay Stock Exchange or BSE.

How can I directly apply to invest in Muthoot Finance NCD?
Interested investors can apply by downloading forms from the following site Muthoot Finance NCD Application Form

Will there be any tax benefit available in Muthoot Finance NCD?
No. There will be no tax benefit available in Muthoot Finance NCD.
Instead, all the income that you will earn as interest from the Muthoot Finance NCD will be taxable. Company will NOT deduct any TDS while paying the interest - it will be the responsibility of the investor to declare that income and pay taxes on it.
Hence, the investors should take into account the post tax effective returns calculation before jumping onto investing in these Muthoot Finance NCD based upon the high double digit interest it is offering.

IFCI Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

noreply@blogger.com (Erica Hull) — Wed, 14 Dec 2011 06:59:00 +0000

This article covers the details about IFCI Infra Bonds for Tax Saving (Long Term Infrastructure Bonds from IFCI. Calculations for Tax saving in IFCI Infra Bonds as per the different income tax brackets is also covered..
High on the heels of IDFC who recently opened the subscription for their IDFC Infrastructure Bonds for Tax Saving and then closely followed by L&T Infra Bonds for Tax Saving, IFCI has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

The market & the investors can expect to see more offerings for Long Term Infrastructure Bonds from various other organizations in coming few months as tax savings will be the buzz word since the financial year is going to come to a close in March 2012 and hence tax savings will be on the minds of investors. Now with so many different types of infrastructure bonds coming to the market, investors will be confused about what is the difference among them and which one to subscribe to? Basically, it all boils down to the interest rates offered and the credibility of the organization offering them. Usually, a good stable organization having a good credit rating (are they reliable?) will offer good enough interest rates, while organizations having a bit lower credit ratings may like to offer somewhat better interest rates to attract investors despite their low credit ratings.
Let's start with some basics first for the IFCI Infrastructure bonds issue:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of IFCI Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or IFCI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the IFCI Infra Bonds for Tax savings in more detail:

Relatively small issue size for the IFCI infra bonds, trying to collect around 100 Crore Rs. from the market - compare that to L&T infra bonds which are looking for 1100 Crores.

Green shoe option is there with the IFCI infra bonds but the green shoe option details remain unspecified.

The purpose & capital raised through the IFCI infra bonds will be used to finance the infrastructure projects all across the country.

The bonds are being offered in 2 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 - is for 10 year long bonds paying an interest rate of 9.09% per annum - coupon rate is higher than IDFC and L&T which are at 9%
Investors have the option to redeem the bonds after the mandatory 5 year lock-in period. They can also exit after 7 years period.

Series 2 - Is for 15 year long bonds paying an interest rate of 9.16% per annum - coupon rate is higher than IDFC and L&T which are at 9%
Exit option available after 5 years and 10 years period.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

One needs to invest a minimum of 5000 Rs. to buy a IFCI infra bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from IFCI.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IFCI Infra Bonds.

What differentiates IFCI Infra Bonds from the other issues like L&T & IDFC Infra Bonds which are currently open?
As of now IDFC Infra bonds issue is open (See details: IDFC Infrastructure Bonds for Tax Saving) and (L&T Infra Bonds for Tax Saving is open), but very soon we expect more infrastructure companies to line up with their issues as there are still 3.5 months to end of financial year.
The main difference between IFCI infra bonds and IDFC & L&T infra bonds is the credit rating assigned and the price per bond.

What is the security rating for the IFCI Infra Bonds ?
'BWR AA-' by Brickwork Ratings India Pvt. Limited
CARE 'A+' by CARE Ratings (Credit Analysis & Research Ltd.)
'LA' by ICRA Limited

How much will I effectively save by investing in IFCI Infra Bonds ?
The calculations will be similar to what we covered for IFCI Infra Bonds. Please see IFCI Infra Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for IFCI Infra Bonds ?
The IFCI Infra Bonds subscription date was opened on November 30, 2011 and will close on January 16, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good.
It is not mandatory to have a PAN no. for buying these bonds. Also, one can buy these bonds in both demat as well as physical format.

NSE-BSE Holidays 2012: List-India Stock Exchange (Stock Market) Holidays 2012

noreply@blogger.com (Shobhit) — Mon, 12 Dec 2011 10:23:00 +0000

Details about BSE Holidays List 2012 / NSE Holidays List 2012
The year 2011 is coming to a close. Traders as well as Investors across the globe would like to now know the holidya calender for the year 2012 for planning their leaves and trading activities.
Like last year 2011, where we provided the NSE-BSE Holidays 2011: List-India Stock Exchange (Stock Market) Holidays 2011, once again here we provide the holiday list for the year 2012 for the Indian Stock exchanges.

Bombay Stock Exchange (BSE) Holidays 2012

National Stock Exchange (NSE) Holidays 2012

Wishing all the readers, traders and investors a happy and frutiful New year 2012.
BSE Holidays List 2012 / NSE Holidays List 2012

	Holidays	Date	Day
1	Republic Day	26th January 2012	Thursday
2	Mahashivratri	20th February 2012	Monday
3	Holi	8th March 2012	Thursday
4	Mahavir Jayanti	5th April 2012	Thursday
5	Good Friday	6th April 2012	Friday
6	Maharashtra Day	1st May 2012	Tuesday
7	Independence Day	15th August 2012	Wednesday
8	Ramzan Id	20th August 2012	Monday
9	Ganesh Chaturthi	19th September 2012	Wednesday
10	Mahatma Gandhi Jayanti	2nd October 2012	Tuesday
11	Dussera - Vijaya Dashmi	24th October 2012	Wednesday
12	Diwali Amavasya (Laxmi Pujan)*	13th November 2012	Tuesday
13	Diwali Balipratipada	14th November 2012	Wednesday
14	Gurunanak Jayanti	28th November 2012	Wednesday
15	Christmas	25th December 2012	Tuesday

Muhurat Trading will be held on Tuesday, November 13, 2012 (Diwali Amavasya – Laxmi Puja)

The Exchange may alter / change any of the above Holidays, for which a separate circular will be issued in advance.

Please note that this information is as sourced from the exchange websites.
Wishing all the readers, traders and investors a happy and frutiful New year 2012.

L&T Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

noreply@blogger.com (Erica Hull) — Fri, 25 Nov 2011 08:28:00 +0000

This article covers the details about L&T Infra Bonds for Tax Saving (Long Term Infrastructure Bonds from Larsen & Toubro Ltd. Calculations for Tax saving in L&T Infra Bonds as per the different income tax brackets is also covered..
High on the heels of IDFC who recently opened the subscription for their IDFC Infrastructure Bonds for Tax Saving, L&T has come out with their issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012. Same L&T had issued similar infrastructure bonds for tax savings in last financial year and here are the details of the same: L&T Infrastructure Bonds for Tax Saving - Feb 2011
The market should expect to see more buzz for Long Term Infrastructure Bonds from various companies in coming few months as tax savings will be on the minds of investors. So what's the difference between the bonds already available from other organizations and the one now offered by L&T? Bascially nothing except the interest rates offered and the organization which is offering them.
Let's start with some basics first:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of L&T Infra Bonds for Tax Savings 2011-2012 (Similar offering L&T had last year and the details of that can be seen on L&T Infrastructure Bonds for Tax Saving - Feb 2011. Last year L&T Infra bonds managed to raise around 450 Crore Rs. through the infra bond issue.

Review of IDFC Long term Infrastructure Bonds for Tax Saving

The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or IDFC or IFCI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the L&T Infra Bonds for Tax savings in more detail:

The aim is to collect around 1100 Crore Rs. from the market through the same of these infra bonds.

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 9% per annum (annual interest payment) - Maturity Amount is 1000 Rs. as interest is payable annually.

Series 2 - Is for 10 year long bonds paying an interest rate of 9% per annum (cumulative interest payment) - Maturity Amount is 2367.36 Rs.

The bonds will be listed on BSE only (Not NSE) and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit. These bonds will come with a buyback option after 5 years i.e. IDFC holds the right to buy back the bonds after 5 year period.

The face value of each bond is set to Rs. 1000 but a minimum of 5 bonds need to be bought - i.e. you need to invest minimum 5000 Rs. to buy a L&T infra bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from L&T.
Annual interest payment bonds will be bought back at the rate of Rs. 5000 while cumulative interest payment bonds will be bought back at the rate of Rs. 7695 per bond.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the L&T Infra Bonds.

What differentiates L&T Infra Bonds from the other issues like L&T Infra Bonds which are currently open?
As of now only IDFC Infra bonds issue is open (See details: IDFC Infrastructure Bonds for Tax Saving), but very soon we expect more infrastructure companies to line up with their issues as there are still 4 months to end of financial year.
The main difference between L&T infra bonds and IDFC infra bonds is the credit rating assigned and the price per bond.

What is the security rating for the L&T Infra Bonds ?
Fitch has given a AA+ rating, ICRA has given AA+ rating to the L&T Infra Bonds.
These are the highest credit ratings awarded by these rating agencies

How much will I effectively save by investing in L&T Infra Bonds ?
The calculations will be similar to what we covered for L&T Infra Bonds. Please see L&T Infra Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for L&T Infra Bonds ?
The L&T Infra Bonds subscription date was opened on 25 November 2011 and will close on 24 December 2011. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good.
It is not mandatory to have a PAN no. for buying these bonds. Also, one can buy these bonds in both demat as well as physical format

IDFC Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

noreply@blogger.com (Erica Hull) — Tue, 22 Nov 2011 12:51:00 +0000

This article covers the details about IDFC Infrastructure Bonds for Tax Saving (Long Term Infrastructure Bonds from Infrastructure Development Finance Company Limited (IDFC Ltd). Calculations for Tax saving in IDFC Infrastructure Bonds as per the different income tax brackets is also covered..
Last year, around this time, there was a wave of lot of infrastructure bonds coming to the market for tax saving purpose. We'd covered them extensively in deep details. Now that the financial year is coming to a close in India in next few months, the same companies are again lining up with a new fresh issue of similar long term infrastructure bonds.
The market should expect to see a buzz for Long Term Infrastructure Bonds from various companies in coming few months. There were Infrastructure Bonds from IDFC, IIFCL and L&T already available in the market during this time last year. Today, IDFC has come out with a new fresh issue of similar bonds and it is currently open for subscription, under the name IDFC Long Term Infrastructure Bonds for Tax Saving. So what's the difference between the bonds already available from other organizations and the one now offered by IDFC? Bascially nothing except the interest rates offered and the organization which is offering them.
Let's start with some basics first:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of IDFC Infrastructure Bonds for Tax Savings 2011-2012 (To check what offering IDFC had last year, one can read more about the details IDFC infrastructure Bonds that was available in last financial year)

Review of IDFC Long term Infrastructure Bonds for Tax Saving

The basic working of these bonds from any issuer, whether it is IDFC or L&T or IDFC or IFCI, remains the same. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructe Bonds Investments.
Now, once you are clear about the fundamental details, let's see the IDFC Infra Bonds for Tax savings in more detail:

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 9% per annum (annual interest payment)

Series 2 - Is for 10 year long bonds paying an interest rate of 9% per annum (cumulative interest payment)

The bonds will be listed on NSE and BSE and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit. These bonds will come with a buyback option after 5 years i.e. IDFC holds the right to buy back the bonds after 5 year period.

The face value of each bond is set to Rs. 5000 - i.e. you need to invest minimum 5000 Rs. to buy a bond - cost of 1 bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from IDFC.
Annual interest payment bonds will be bought back at the rate of Rs. 5000 while cumulative interest payment bonds will be bought back at the rate of Rs. 7695 per bond.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IDFC Infrastructure Bonds.

Depending upon your income tax slab, following tab benefits are available, in case of Maturity and in case of Buyback:

Tax Benefit adjusted rate of returns (pre-tax) to Investors on Maturity
Tax Slab – 30.90% 15.2% 13.1%
Tax Slab – 20.60% 12.8% 11.5%
Tax Slab – 10.30% 10.7% 10.2%

Tax Benefit adjusted rate of returns (pre-tax) to Investors on Buyback
Tax Slab – 30.90% 19.1% 17.4%
Tax Slab – 20.60% 15.2% 14.2%
Tax Slab – 10.30% 11.8% 11.4%

What differentiates IDFC Infrastructure Bonds from the other issues like IDFC Infrastructure Bonds which are currently open?
The difference is in the interest rate or coupon rate offered on IDFC bonds.

What is the security rating for the IDFC Infrastructure Bonds ?
Fitch has given a AAA Stable rating, ICRA has given AAA (Stable Outlook) rating to the IDFC Infrastructure Bonds.
These are the highest credit ratings awarded by these rating agencies

How much will I effectively save by investing in IDFC Infrastructure Bonds ?
The calculations will be similar to what we covered for IDFC Infrastructure Bonds. Please see IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for IDFC Infrastructure Bonds ?
The IDFC Infrastructure Bonds subscription date was opened on 21 November 2011 and will close on 16 December 2011. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good

Religare Gold Fund NFO: Review Analysis & Details

noreply@blogger.com (Erica Hull) — Wed, 16 Nov 2011 12:07:00 +0000

Details about Religare Gold Fund: Review, Analysis, Details & Investment Opinion.
There comes another so-called "Gold Fund" from a new mutual fund house. Everyone is hopping on Gold for their investments so the mutual fund houses are going on launching Gold funds one after the other in the already over-flooded market. Just search for Gold Fund using the search box on this site and you can see how flooded the market currently is.
In this article, we will analyze how good is this Religare Gold Fund NFO, whether this Religare Gold Fund offers anything new or unique for the investors and whether the investors should invest in Religare Gold Fund.

Religare Gold Fund NFO: Review Analysis & Details

Let's begin with some basic details about Religare Gold Fund.

What are the NFO dates for Religare Gold Fund?

The NFO period for Religare Gold Fund is from 15 November and will close on 29 November 2011. After the NFO period, the regular buying and redemption of fund units will start. This will be a passively managed fund of funds (What's this?) or better to say fund of a single fund.

What is so unique about this Religare Gold Fund?
Nothing - absolutely nothing is unique in this Godl fund. Like any other Gold fund or Gold saving fund already available in the market, the Religare fund managers will collect money from the investors, and invest that into their own Gold based ETF called Religare Gold ETF or Religare Gold Exchange Traded Fund.
The benefit these kind of investments claim to offer is no requirement for a demat account, exposure to gold in small amounts of investments, easy SIP facility and so on. However, if you are reading this article on a computer, that means you are computer savvy and with a good probability you will have a demat account. Anyways, see the next section on why this Religare Gold Fund is not unique.

What are the other competitor products available in comparison to Religare Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Religare Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE

HDFC has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.

Other Gold Schemes: Quantum Gold Fund

What are the risks of investing and trading Religare Gold Fund?
The benchmark for Religare Gold Fund is the physical price of gold. Since this is a fund of fund, it will be the Religare Gold ETF which is expected to track the gold prices and then those End of the prices will be reflected in the returns of this Religare Godl Fund. Being an End of the Day pricing product, the fund manager will attempt to give similar returns like the tracking gold price but the tracking error will surely creep in.

Final Thoughts about Religare Gold Fund?
Another Fund of Funds in the Gold investment arena, nothing new compared to what other Gold funds or Gold Saving Funds (already available in the market ) are offering. This fund just adds to the list and gives investors more choice of investment in Gold through a new fund house.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Religare Gold Fund.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Religare Gold Fund Entry Load:
Religare Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? Yes. Minimum SIP tenure is 6 months, with minimum SIP amount of Rs. 1000 and in multiples of Re. 1 thereafter.
Physical Gold Prices in India will be the benchmark for tracking the performance of Religare Gold Fund

Mr. Nitish Sikand will be the fund manager for Religare Gold Fund

Union KBC Tax Saver ELSS Fund NFO: Review Analysis & Details

noreply@blogger.com (Erica Hull) — Thu, 03 Nov 2011 13:34:00 +0000

Details about Union KBC Tax Saver ELSS Fund: Review, Analysis, Details & Investment Opinion.
After a long time, we are seeing an ELSS or Equity Linked Savings Scheme NFO coming out. Recent;y, the joint venture between Union Bank of India and KBC asset management came out with their first offering called Union KBC Equity Fund and now this ELSS Tax saver fund will add another product to their portfolio.

The Union KBC Mutual Fund House is launching their Union KBC Tax Saver ELSS Fund. In this article, we will analyze how good is this Union KBC Tax Saver ELSS Fund NFO, whether this Union KBC Tax Saver ELSS Fund offers anything new or unique for the investors and whether the investors should invest in Union KBC Tax Saver ELSS Fund.

Union KBC Tax Saver ELSS Fund NFO: Review Analysis & Details

Let's begin with some basic details about Union KBC Tax Saver ELSS Fund.
What actually is an ELSS or Equity Linked Savings Scheme Fund?
An ELSS is a special mutual fund which invests the money collected from the investors in the equities listed in the stock market like any other mutual fund. However, ELSS comes with the advantage of tax benefit - i.e. the invested amount qualifies for tax deduction under section 80(C) (Section 80C Tax Savings: Complete List of Qualifying Investments) with a sum total limit of 1 Lakh Rs.
Since it is offering tax benefit, it comes with a condition - there is a lock-in period of minimum 3 years for an investor to get tax benefit on the invested amount. For e.g., if I invest Rs. 50,000 in an ELSS and claim tax benefit on that, then I am not supposed to withdraw this money atleast for next 3 years. I can withdraw that money by redeeming the fund units before 3 years, but I will loose out on the claimed tax benefit.
You can find more info on ELSS scheme in the article: Tax saving By Equity Linked Saving Schemes ELSS

What are the NFO dates for Union KBC Tax Saver ELSS Fund? The NFO period for Union KBC Tax Saver ELSS Fund is from 8 November and will close on 9 December 2011. After the NFO period, the regular buying and redemption of fund units will start, on date 19 Dec 2011.

What is so unique about this Union KBC Tax Saver ELSS Fund?
Nothing special, it's just another ELSS Mutual Fund offering investments in equity market with the advantage of tax benefit on the condition that you stay invested atleast for 3 years. There are lot many other competitor ELSS products already available in the market - like SBI Tax Advantage fund.

What are the other competitor products available in comparison to Union KBC Tax Saver ELSS Fund?
Lots and lots are availble, here are a few: Principal Personal Tax Saver Fund (ELSS), then SBI Tax Advantage fund, Reliance Equity Linked Savings Fund and many more

What are the risks of investing and trading Union KBC Tax Saver ELSS Fund?
The benchmark for Union KBC Tax Saver ELSS Fund is the BSE 100 Index. The fund manager will attempt to give similar returns like the tracking index but the tracking error will surely creep in.
By investing in any mutual fund, you are risking your money as per the will and wish and investment decisions of the fund house and fund manager.

Final Thoughts about Union KBC Tax Saver ELSS Fund?
Another ELSS scheme from a relatively new mutual fund house which has just started fund management business. Offering a tax saving ELSS might allow them some more money collection as compared to a normal mutual fund. The timing appears to be a bit early as tax year in India comes to a close in April. My thought is that possibly lauch in January would have given them more capital collection, as that is the time people really start looking for tax saving investments.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 500 and in multiples of Rs 500 afterwards.

Tax benefit will be available in Union KBC Tax Saver ELSS Fund, subject to lock in period of 3 years from the date of allotment.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Union KBC Tax Saver ELSS Fund Entry Load: No info available
Union KBC Tax Saver ELSS Fund Exit Load: No info available 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? No info available.
BSE 100 Index will be the benchmark for tracking the performance of Union KBC Tax Saver ELSS Fund

HDFC Gold Fund NFO: Review Analysis & Details

noreply@blogger.com (Vilas N) — Mon, 10 Oct 2011 11:50:00 +0000

Details about HDFC Gold Fund: Review, Analysis, Details & Investment Opinion.
High on the heals of recently launched Gold funds like ICICI Gold Savings Fund and Axis Gold Fund, another renowned mutual fund house, HDFC Mutual Fund house, has joined the bandwagon of so called Gold Saving Funds and come out with a new fund offer or NFO, for its newly launched fund called HDFC Gold Fund
Looking at the flood of these Gold based Funds coming in the market in the recent times, we've been feeling a bit tired to write about them one after the other :-), but looks like the mutual fund houses are tired in bringing the same products which works in the same way as other similar products from other fund houses, again and again in the market. Who doesnt like to get a share when the entire world is going crazy with gold prices highs (and recent lows). Dollar isn't looking good, Gold looks promising, add some "saving fund" terminology, pitch in for investors to go with small amounts of SIP and there you have a new Gold Based Fund.

The HDFC Mutual Fund House is launching their HDFC Gold Fund. In this article, we will analyze how good is this HDFC Gold Fund NFO, whether this HDFC Gold Fund offers anything new or unique for the investors and whether the investors should invest in HDFC Gold Fund.

HDFC Gold Fund NFO: Review Analysis & Details

Let's begin with some basic details about HDFC Gold Fund.
What are the NFO dates for HDFC Gold Fund?
The NFO period for HDFC Gold Fund is from 7th October and will close on 21 October 2011. After the NFO period, the regular buying and redemption of fund units will start, on date still not known by us.

What is so unique about this HDFC Gold Fund?
Nothing special, if you are already aware of exactly the similar products available and being flooded in the market since last many months by various fund houses. The concept is simple - Mutual Fund houses have a product called a "Gold ETF". On top of that, they lauch another product called a "Gold Fund". What then happens is that money invested through this Gold fund is actually routed to Gold ETF. The Gold ETF prices keep moving as per the prices of actual physical gold and hence the returns of this Gold fund also keeps moving. So, in essence, this is actually a Fund of Fund (What's this?). What it means is that this fund will not invest in any Gold companies or Gold stocks diectly, instead it will invest in other fund, Called HDFC Gold ETF or Exchange Traded Fund. It is this ETF which will actually invest in physical gold.
Now, we've written a lot about these so called "Gold Funds" or "Gold Savings Funds".
They offer low amount investments in gold (although this HDFC Gold Fund requires minimum 5000 Rs. investment, other Gold Funds need only Rs. 100). They do not require demat account, etc. SIP requries only 500 Rs. per month and 1500 per quarter for a quarterly SIP.
But they do come with disadvantages like you cannot trade in them on real time basis as this pricing in based on End of the day NAV kind of model. See more articles in next section about competitor products to better understand this gold fund business.

What are the other competitor products available in comparison to HDFC Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to HDFC Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE

HDFC itself has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.

Other Gold Schemes: Quantum Gold Fund

What are the risks of investing and trading HDFC Gold Fund?
The benchmark for HDFC Gold Fund is the Domestic Price of Gold. By investing in such a fund, you are taking the risk on gold price fluctuations. If the price of gold fluctuates, so will the returns from this fund will change.
Also, since this is fund of (single) fund, the tracking error will surely creep in - although it will be based on end of the day pricing.

Final Thoughts about HDFC Gold Fund?
Another Gold Fund or Gold Saving fund offering investments in gold which are similar to the so many different products already available in the market. One can go for investment in this HDFC Gold Fund if they believe that gold prices will continue to rise and trust Axis fund managers to generate accurate returns on gold prices with minimal tracking error.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.

No tax benefit will be available in HDFC Gold Fund. There is no lock-in period for this Gold Fund i.e. investors can enter and exit anytime they like, but they need to pay exit load charges as mentioned.

Mr. Anil Bamboli will be the fund manager for HDFC Gold Fund.

Only Growth Option is available for HDFC Gold Fund.

HDFC Gold Fund Entry Load: Nil
HDFC Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? Yes.
Minimum SIP is Rs. 500 per month and Rs. 1500 per quarter and further in multiples of Rs. 100 per month.

Domestic Price of Gold will be the benchmark for tracking the performance of HDFC Gold Fund

Real Estate Market Effect on Country's Economy

noreply@blogger.com (Vilas N) — Fri, 07 Oct 2011 13:06:00 +0000

Detais about How real estate market can cause a blow to the Indian Economy
We've seen subprime in US, we've seen similar problems in European Countries, and the very latest at home, State Bank of India was downgraded by one of the rating agencies in a reported stress test because of its NPA's (Non Performing Assets) which are suspected to increase from the present 3.4% to a high of 12%, in case of a stress test situation as reported by CNBC news channel.
Still, we all sit with a belief that nothing will go wrong in India. India offers cheap labour options from unskilled streams to highly skilled IT streams so outsourcing will never stop to India. So it is OK to take loans for house, cars, etc. and live peacefully under the assumption that job will stay, economy is tightly controlled by government so nothing will go wrong.

However, one simple issue takes no time to become a nation-wide problem. Let's see how the real estate market of India (sometimes called over-regulated, sometimes uner-regulated) can cause problems to the economy.
First, is the real estate sector over-regulated as quoted by many builders? The answer is yes, but this yes is limited to only getting various permissions from multiple authorities to get into and continue the real estate business.
Is it under-regulated? Again, Yes (in fact a big YES), because there is absolutely no control on prices quoted or randomly raised by the builders. Take this example, a friend of mine in Pune has been looking around for a 2 BHK apartment since last 7-8 months. In an area like Balewadi which is like the western outskirts of Pune with no proper infrastructure, the prices have risen from a low of 3700 to 4500 in a matter of 7 months.
Who controls these prices and what regulation we have there? Absolutely nothing.

So, the rates keep going north, for few months, few years. Everyone believes its all looking good and assumes that it will all remain good, so people take loans. Not just the private banks, even government banks are willingly offering loans freely. No one ever dares or takes any effort in questioning the rationale behind the high property prices. Builders want high price, Banks want high interest high amount loans, and who is left at the other end - its you and me, the common man - highly talented, service class, worked hard for studies, now toiling hard in the MNC job, and will continue doing the same to repay the EMI's for the rest of his life for his dream house or dream car.

And this is where the problem lies - Since no one questions why there has been a steep price rise, say from 3700 to 4500 in a matter of 6-8 months, and banks keep awarding loans, it might turn out to be a problematic situation for the bank.

Assume this - X started looking for a home 8 months back when the rates quoted were 3700. He thought its high, so he waited and explored more. However, instead of rates coming down, they sky rocketed, for no reason, to 4500. After toiling hard in search of home, X finally gives in and books an under-construction flat at high cost of 4500, whose possession is promised to be in 2 years time. So his Home Loan EMI's start. Since the flat is not ready, he is paying rent also. It's hitting him double hard, and this will continue for atleast 2 years till he gets possession of his own flat when he can start saving the rent.
Now comes the problem - The builder has constructed all the 12 floors of the building in 1 years time. X is happy seeing this progress - he is even assuming that since all 12 floors are ready in just 1 year, he might get possession early. However, even then there is a lot of work left in the building. Water connection, Electrical wiring, Electrical supply, Gas supply, plaster work, windows, etc. etc. etc.. The bad part - the builder might even stop the work because of his own reasons or delay it further.
And then comes the worst part - there is a downturn in global economy. X looses his MNC job or his salary is reduced. However, his EMI's are continuing and so is his rent because his flat is not yet ready. After remaining jobless for 6 months, X cannot afford anymore payments anymore and decides to give up. He moves back to his native town/village foregoing whatever he paid as pre-EMI's and downpayments. Now, the bank is left with a property which is under-construction. Since X is no longer in scene, it now taken over by the bank (an under-construction property). It is now the bank which is going to take the hit because it is the one which has given the loan money. X is out with his foreclosure, Bank is now liable. All that the bank is left with is a not-ready property on paper which it has the right to sell.
But where can it find buyers? When there is global economic problems, there are lots of layoffs, high interest rates, then there are no buyers. And note that it is an under construction property. Who would buy an under-construction property from a bank in such a time? Ultimately, the banks take the hit.

Another scenario - X does not loose his job but interest rates keep rising. X took home loan at interest rate of 8% and now it is at 12%. It has caused a big rise in EMI for X. X may not be able to afford it and the bank is not willing to increase his lona tenure considering his age. So ultimately, X may default. It's again the bank which is left with such a property which may not have much value.

To see more on Home Loan related Tax Benefits, please check Home Loan Tax Benefits and All Home Loan Articles

It is these kind of global/local scenarios which lead to a complete and big set of problems for the banks. As long as there is no one to question the random real estate price hikes, as long as the banks (both private and government) freely lend out loans to individuals without considering the actual price worth of the mortgaged property, these problems will continue. The home loan provider banks simply pass on the liability to the individuals. All that is based upon the understanding and assumption that individual will be able to keep on bearing the cost of high interest rates, longer loan durations and higher EMI payments.
Unless there is some proper regulation in place to check the menace of abrupt and high cost prices quoted by builder lobby, the risk of real estate on national economy will always remain

Axis Gold Fund NFO: Review Analysis & Details

noreply@blogger.com (Vilas N) — Tue, 04 Oct 2011 09:13:00 +0000

Details about Axis Gold Fund: Review, Analysis, Details & Investment Opinion.
Another renowned mutual fund house, Axis Mutual Fund house, has joined the bandwagon of so called Gold Saving Funds and come out with a new fund offer or NFO, for its newly launched fund called Axis Gold Fund

The Axis Mutual Fund House is launching their Axis Gold Fund. In this article, we will analyze how good is this Axis Gold Fund NFO, whether this Axis Gold Fund offers anything new or unique for the investors and whether the investors should invest in Axis Gold Fund.

Axis Gold Fund NFO: Review Analysis & Details

Let's begin with some basic details about Axis Gold Fund.
What are the NFO dates for Axis Gold Fund?
The NFO period for Axis Gold Fund is from 30 September and will close on 14 October 2011. After the NFO period, the regular buying and redemption of fund units will start, on date 28th October 2011.

What is so unique about this Axis Gold Fund?
Investors should undestand this very clearly that this is actually a Fund of Fund (What's this?). What it means is that this fund will not invest in any Gold companies or Gold stocks diectly, instead it will invest in other fund, Called Axis Gold ETF or Exchange Traded Fund. It is this ETF which will actually invest in physical gold.
What this Axis Gold Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in Axis Gold Exchange Traded Fund - the Gold ETF from Axis MF.
Now, we've written a lot about these so called "Gold Funds" or "Gold Savings Funds".
They offer low amount investments in gold (although this Axis Gold Fund requires minimum 1000 Rs. investment, other Gold Funds need only Rs. 100). They do not require demat account, etc.
But they do come with disadvantages like you cannot trade in them on real time basis as this pricing in based on End of the day NAV kind of model. See more articles in next section about competitor products to better understand this gold fund business.

What are the other competitor products available in comparison to Axis Gold Fund?
The recently lauched ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Axis Gold Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE

Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details

Then there is the good old Quantum Gold Fund (Gold ETF)

and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme

Other Gold Schemes: Quantum Gold Fund

What are the risks of investing and trading Axis Gold Fund?
The benchmark for Axis Gold Fund is the Domestic Price of Gold. By investing in such a fund, you are taking the risk on gold price fluctuations. If the price of gold fluctuates, so will the returns from this fund will change.
Also, since this is fund of (single) fund, the tracking error will surely creep in - although it will be based on end of the day pricing.

Final Thoughts about Axis Gold Fund?
Another Gold Fund or Gold Saving fund offering investments in gold which are similar to the so many different products already available in the market. One can go for investment in this Axis Gold fund if they believe that gold prices will continue to rise and trust Axis fund managers to generate accurate returns on gold prices with minimal tracking error.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.

No tax benefit will be available in Axis Gold Fund

Mr. Anurag Mittal will be the fund manager for Axis Gold Fund.

Multiple options available for investments in Axis Gold Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities

Axis Gold Fund Entry Load: Nil
Axis Gold Fund Exit Load: 1% if exit within 1 year
NIL beyond 1 year.
SIP or systematic investment plan? Yes.
Minimum SIP is Rs. 1,000 and in multiples of Re. 1 per month. However, a minimum SIP of 36 months or 3 years is required.

Domestic Price of Gold will be the benchmark for tracking the performance of Axis Gold Fund

DSP BlackRock World Agriculture Fund NFO: Review Analysis & Details

noreply@blogger.com (Vilas N) — Tue, 04 Oct 2011 08:26:00 +0000

Details about DSP BlackRock World Agriculture Fund: Review, Analysis, Details & Investment Opinion.
Another renowned mutual fund house, DSP BlackRock, has come out with a new fund offer or NFO, for its newly launched fund called DSP BlackRock World Agriculture Fund

The DSP BlackRock Mutual Fund House is launching their DSP BlackRock World Agriculture Fund. In this article, we will analyze how good is this DSP BlackRock World Agriculture Fund NFO, whether this DSP BlackRock World Agriculture Fund offers anything new or unique for the investors and whether the investors should invest in DSP BlackRock World Agriculture Fund.

DSP BlackRock World Agriculture Fund NFO: Review Analysis & Details

Let's begin with some basic details about DSP BlackRock World Agriculture Fund.
What are the NFO dates for DSP BlackRock World Agriculture Fund?
The NFO period for DSP BlackRock World Agriculture Fund is from 30 September and will close on 14 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.

What is so unique about this DSP BlackRock World Agriculture Fund?
Investors should undestand this very clearly that this is actually a Fund of Funds (What's this?). What it means is that this fund will not invest in any companies or stocks diectly, instead it will invest in other fund, Called BlackRock Global Funds-World Agriculture Fund. It is this fund which will invest in stocks/companies in the agriculture sector at a global level.
A related NFO for a Fund of Funds is offered by DSP Merrill Lynch but it is in the energy sector. It is DSP BlackRock World Energy Fund. Another example is Blackrock Absolute Return Strategies Fund

So investors should be aware that they are actually putting their money into the Global Agri fund and that exposes them to the forex currency risk. What if the return of the BlackRock Global Funds-World Agriculture Fund is 25%, but because of currency fluctuations, the net returns you receive comes down to just 12%.
The main idea behind investing in agricultural sector through this fund is that there is imbalance between food supply and demand. And being a basic need, there is a lot of good return opportunity by investing in agriculture sector. All these assumptions are based upon increasing world population needing more food, thereby making good profitable opportunitites for agriculture based businesses and hence the companies in the agri sector which this fund will choose to invest. Ultimately, its the skills of the fund managers to pick the right company for better returns.

What are the other competitor products available in comparison to DSP BlackRock World Agriculture Fund?
There are no agriculture fund details available with FT Times as of now, but there are other commodity funds which may provide some exposure to agri sector in India like Mirae Asset Global Commodity Stock Fund or SBI Magnum COMMA Fund

What are the risks of investing and trading DSP BlackRock World Agriculture Fund?
The benchmark for DSP BlackRock World Agriculture Fund Fund is the DAX Global Agribusiness Index. By investing in such a fund, you are taking the risk on forex as explained above.
Also being fund of funds, If the returns from the end fund fluctuates, so will the returns generated from this fund will keep fluctuating in either direction.

Final Thoughts about DSP BlackRock World Agriculture Fund?
Another fund of fund which is focussed on the Agriculture sector. A good option for investors who believe that this fund of funds will enable them to get good returns besides the forex risk and global exposure risk.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.

No tax benefit will be available in DSP BlackRock World Agriculture Fund

Mr. Mehul Jani will be the fund manager for DSP BlackRock World Agriculture Fund.

Multiple options available for investments in DSP BlackRock World Agriculture Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities

DSP BlackRock World Agriculture Fund Entry Load: Nil
DSP BlackRock World Agriculture Fund Exit Load: 1% if exit within 1 year
NIL beyond 1 year.
SIP or systematic investment plan? No specific details available

DAX Global Agribusiness Index will be the benchmark for tracking the performance of DSP BlackRock World Agriculture Fund

IIFL Nifty ETF NFO: Review Analysis & Details

noreply@blogger.com (Vilas N) — Wed, 28 Sep 2011 08:00:00 +0000

Details about IIFL Nifty ETF: Review, Analysis, Details & Investment Opinion. We've been giving a lot of advice about investing in ETF or Exchange Traded Funds. Here is an Example of Nifty based ETF.
Adding to the list of existing Nifty based ETF's, the

India Infoline Asset Management Company Ltd (IIFL AMC) has come out with its own Nifty based ETF called the IIFL Nifty ETF

The IIFL Mutual Fund House is launching their IIFL Nifty ETF. In this article, we will analyze how good is this IIFL Nifty ETF NFO, whether this IIFL Nifty ETF offers anything new or unique for the investors and whether the investors should invest in

IIFL Nifty ETF.

IIFL Nifty ETF NFO: Review Analysis & Details

Let's begin with some basic details about IIFL Nifty ETF.

What are the NFO dates for IIFL Nifty ETF? The NFO period for IIFL Nifty ETF is from 28 September and will close on 12 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.

What is so unique about this IIFL Nifty ETF? All funds- whether they are ETF or Mutual Funds have a cost attached to it - it can be in the form of fund management charges, fund adminsitration charges and so on. What appears to be unique about this IIFL Nifty ETF is that it claims to be the lowest on cost structure for fund management. As per the details available, this IIFL Nifty ETF will have only 0.25% fees and expenses for fund management charges - claimed to be the lowest in the MF industry. Other than that this is another Nifty based Exchange Traded Fund or ETF with the usual ETF benefits of low cost, precise tracking of the underlying index with minimal tracking error, benefit of intra day price movements to take advantage of trading on an index with the flexibility of stock trading and so on. See all advantages here Advantages of Nifty based ETF

What are the other competitor products available in comparison to IIFL Nifty ETF? Apart from that, there are many other Nifty or Sensex based ETF's or Index funds which are available for investments as well as intraday trading for betting your money on the movements of Nifty and Sensex: 1. Religare Nifty ETF Exchange Traded Fund
2. Sahara Sensex ETF
3. Quantum Index Fund (Nifty) ETF
4. Nifty Benchmark ETF
5. Birla SunLife Nifty ETF
6. Motilal Oswal MOSt Shares M50 ETF and many more

What are the risks of investing and trading IIFL Nifty ETF? The benchmark for IIFL Nifty ETF Fund is the S&P Nifty 50 Index. By investing in such a fund, you are taking the risk on overall Indian Markets, as included the 50 shares of Nifty 50. If the Nifty fluctuates, so will the returns generated from this fund will keep fluctuating in either direction. But overall, the index based index funds and ETF's are learnt to have outperformed the rest of the mutual funds in better probability.

Final Thoughts about IIFL Nifty ETF? Another Nifty based ETF adding to the list of Nifty (and Sensex) based index funds and ETFs already available in the Indian markets. You can look for investing in this if you believe the Nifty index will generate better returns and this ETF will closely match the performance of Nifty, with minimal tracking error.

See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit

Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.

No tax benefit will be available in IIFL Nifty ETF

Mr. Manish Bandi will be the fund manager for IIFL Nifty ETF

ICICI Gold Savings Fund NFO: Review Analysis & Details

noreply@blogger.com (Erica Hull) — Tue, 27 Sep 2011 08:22:00 +0000

Details about ICICI Prudential Regular Gold Savings Fund: Review, Analysis, Details & Investment Opinion. Gold, Silver, Precious metals are appearing to be the most sought after commodities. With the high volatility in the USD exchagne rates as well as that in the crude oil prices, the investors, traders as well as the big institutions like the central banks of the world are running for gold to be in their reserves. Right from common man to big central banks, everyone has been dancing to the tunes of Gold investments, and so the prices have gold have shot up the roof in last 5 years. However, one must not forget what happened in last 2 days. Gold prices have tanked down with the biggest intra day fall again raising the speculation that is going on in gold and silver.
India, being one of the biggest consumers of gold, has a big festive season ahead and asset management companies are trying to attract the investors to get into gold products with an assurance that gold prices have given good returns in the past so investors must invest in gold products. Already, there were lot of gold products in the market, the most recent one was SBI Gold Fund and now ICICI Prudential MF AMC has come out with so called

ICICI Prudential Regular Gold Savings Fund. I still have objection to the use of word "Savings" because there is no guarantee of positive returns, but that's something the investors should note and be careful about.
The ICICI Mutual Fund House is launching their ICICI Gold Savings Fund. In this article, we will analyze how good is this ICICI Gold Savings Fund NFO, whether this ICICI Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in

ICICI Gold Savings Fund.

ICICI Prudential Regular Gold Savings Fund NFO: Review Analysis & Details

Let's begin with some basic details about ICICI Gold Savings Fund.

What are the NFO dates for ICICI Prudential Regular Gold Savings Fund? The NFO period for ICICI Gold Savings Fund is currently open and will close on 4 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.

What is so unique about this ICICI Gold Savings Fund? Investors and traders would know that there is a Gold ETF already available in the market from ICICI MF, it is

ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF). What this

ICICI Gold Savings Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in ICICI Prudential Gold Exchange Traded Fund - the Gold ETF from ICICI MF.
So, this new Gold Fund from ICICI will work exactly the way the Reliance Gold Savings Fund (See Review & Details), SBI Gold Fund and Kotak Gold Savings Fund works. They too pool in money from investors, and invest in their own respective Gold ETF's.
In my honest opinion, I dont see any special benefits of such Gold Funds or Gold Savings Funds - (SBI has been good atleast not to use the word SAVINGS in their product, which I was not happy about with Reliance, Kotak and now with ICICI). My take is that it is much easier for investors to directly invest in Gold ETF's rather than going through the Fund route.
However, there are a few advantages of these so called Gold (Savings) Fund. They allow you to invest in small amounts. You dont need to worry about the intra-day high low prices of Gold ETF or similar products with intra day trading. One does not need to have demat account which is mandatory in case of Gold ETF.
At the same time, the above advantages come with disadvantages - you cannot benefit from intra-day price movements (but is that required? you are inevsting in this gold fund for long term saving purpose), you pay fund management charges (you pay brokerage to broker for Gold ETF trading) and son on.
Although the investment objective of the ICICI Gold Savings Fund is to generate returns similar to ICICI Gold ETF, I wonder what actually this fund is going to really do instead of just being a channel to route investor's money into their own Gold ETF.

What are the other competitor products available in comparison to ICICI Gold Savings Fund? The recently lauched SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to ICICI Gold Savings Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available: List of Gold ETF India available for trading on NSE Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes: Quantum Gold Fund
Want to know how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF

What are the risks of investing and trading ICICI Gold Savings Fund? The benchmark for this Gold Savings Fund from ICICI is the domestic prices of gold. By investing in such a fund, you are taking the risk on overall Gold price movements. If the Gold prices start going down after you invest in this fund, so will the price of ICICI Gold ETF and hence this ICICI Gold Savings Fund investments values will also go down.

Final Thoughts about ICICI Gold Savings Fund? Nothing special, just another gold based fund adding to the long list of Gold based funds already available in the Indian markets. If you are reading this article, that means you are aware about the computer and demat and things like that (no paper based application), so my advise will be to directly invest in ICICI Gold ETF (or any other Gold ETF) instead of this fund. Let the ICICI Gold Savings Fund be for those who dont want to get into the hassles of demat and such things or for those who are really looking for very small SIP investments like Rs. 100 and so on.
See List of All Mutual Fund and NFO Articles here During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in ICICI Gold Savings Fund
Mr. Chaitanya Pande will be the fund manager for ICICI Gold Savings Fund.
Multiple options available for investments in ICICI Gold Savings Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
ICICI Gold Savings Fund Entry Load: Nil
ICICI Gold Savings Fund Exit Load: 2% if exit within 1 year - this is much higher compared to what SBI Godl Fund and Reliance Gold Savings Fund is charging (they have it at 1%)
NIL beyond 1 year.
SIP or systematic investment plan? Yes with minimum 1000 Rs. - That's again much higher minimum SIP amount requried. Reliance and SBI are offering minimum SIP at 100 Rs.

Domestic Price of physical gold will be the benchmark for tracking the performance of ICICI Gold Savings Fund

Flexituff IPO: Review Analysis & Details of Flexituff IPO

noreply@blogger.com (Erica Hull) — Tue, 27 Sep 2011 05:54:00 +0000

In this article we'll talk about the Review, analysis, details and information about Flexituff IPO.

Flexituff international Ltd. which manufactures

flexible intermediate bulk containers (FIBCs) is about to come up with its

Initial Public Offering (IPO) in the month of September. First let's start with the

review analysis and details of the

Flexituff IPO.

Flexituff IPO: Review, Analysis and Details

The size of the IPO is 67.5 lakh of equity shares. This comprises of a sale of 22.5 lakh shares by Clearwater Capital Partners (Cyprus) Limited. The rest 45 lakh equity shares will be as fresh issue. Company is planning to raise about 100 crore from this IPO. IPO will contribute about 25.97% of its total income and Clearwater Capital Partners (Cyprus) will add about 15.77% to there total income.

What are the primary reasons for Flexituff International Ltd. to come out with the Flexituff IPO? The primary reason behind this IPO is to collect money from public and use it in expansion of the manufacturing capacity of its present industries. Another reason is that, the company wants to improve manufacturing facilities by implementing latest technologies in its present industries.

So what is the needs of Flexituff International Ltd. to come out with the Flexituff IPO? The company officials mentioned that the amount contributed by this IPO will be used for the following causes: 1) Expansion of facilities at SEZ and DTA units at Pithampur. 2) Company wants to set up Dripper project at Kashipur. 3) To meet the working capital requirements.

What is the issue size of the Flexituff IPO? The issue size of the IPO is 67.5 lakh equity shares. This is distributed in two parts: 1) 45 lakh of equity shares for fresh issue. 2) 22.5 lakh of equity shares for Clearwater Capital Partners (Cyprus) Limited.

What is the price band of Flexituff IPO? The price band of this IPO is fixed between Rs 145 to Rs 155.

How many shares will be sold in the Flexituff IPO? 45 lakh of equity shares will be sold under Flexituff IPO.

What are the IPO dates for Flexituff IPO? The issue date for the Flexituff IPO will be from 29th September till 4th October.

How will the capital raised by L&T Finance IPO be used? The company officials mentioned that the amount contributed by this IPO will be used for the following causes: 1) Expansion of facilities at SEZ and DTA units at Pithampur. 2) Company wants to set up Dripper project at Kashipur. 3) To meet the working capital requirements.

Any ratings given to Flexituff IPO? No information about that as of now.

What are the analysts' recommendations and business results for Flexituff IPO? At the end of 31st march, 2011, the net profit reported by the company was Rs 30.97 crore. Whereas the total income was 618.39 crore, which is very good as compared to other companies.

Plastene India IPO: Review Analysis & Details of PIL IPO

noreply@blogger.com (Shobhit) — Fri, 23 Sep 2011 09:50:00 +0000

Plastene India IPO Details, Review, Analysis, Opinion and information on Plastene India IPO
In this article we will look upon the Details, Review, Analysis of the Plastene India IPO.

Plastene India IPO: Review Analysis & Details

Let's start with some basic details first:
- The size of Plastene India Limited (PIL) is 105,00,000 shares.
- The capital collected through these shares will constitute about 29.34% of the total income.
- This amount will be utilized in the vast spread business of manufacturing flexible intermediate
bulk containers, woven sacks, fillers, granules, tarpaulin, flexible packaging, woven fabric, master-batches, multi-filament yarns and webbings.

What are the primary reasons for PIL to come out with the PIL IPO?
Plastene India is planning to expand its manufacturing capacity to 69,000 MTPA and for this
the estimate cost calculated is Rs 55 crore. This expansion will help in fulfilling the growing demands of Jumbo Bags and BOPP woven sacks.

So what is the need of PIL to come out with the PIL IPO?
Plastene India is planning to purchase plant and machinery for its latest product Block Bottom Valve Bag.
And the place chosen by company is at NaniChirai, Gandhidam.
The second motive of this IPO is to expand its existing manufacturing facilities at Rajpur, Gujarat.

What is the issue size of the PIL IPO?
The PIL IPO size is of 105,00,000 shares.

What is the price band of PIL IPO?
The Face Value of each Equity Share is Rs. 10 each.
The price band and the minimum bid lot will be decided by the Company in consultation with the book
running Lead Manager and advertised at least two working days prior the BID/ISSUE opening date.

How many shares will be sold in the PIL IPO?
The total no. of shares to be sold through this IPO is not known precisely. However, it is known that there will be 25% stake dilution.

What are the IPO dates for PIL IPO?
The final bidding dates have not came yet. Opening dates will be in September.

How will the capital raised by PIL IPO be used?
The capital raised will be used in:
1) Purchase of plant and machinery for its Block Bottom Valve Bag.
2) For the expansion of its existing manufacturing facilities.

Any ratings given to PIL IPO?
ICRA assigns grade 3 to PIL IPO.

What are the analysts recommendations and business results for PIL IPO?
Plastene India Limited was initially called as Oswal Agloimpex Limited. Earlier owners were
Mr. Prakash H. Parekh and Mr. Champalal G. Parekh. Year of incorporation of PIL was 2004.
At that time it started at Gandhidham, Gujarat. Initially its capacity was 21,000 tpa for polywoven
sacks and flexible packaging products. The current capacity is now increased to 55,000 tpa at
Gandhidham and Rajpur in Gujarat. Overall this IPO is given an average rating.

FT Times Help - Answers on Money Matters, Insurance, Mortgage, Loans & all finance matters

noreply@blogger.com (Shobhit) — Thu, 22 Sep 2011 10:14:00 +0000

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LIC Endowment Plus Policy: Review Analysis & Details

noreply@blogger.com (Erica Hull) — Wed, 21 Sep 2011 10:35:00 +0000

This article contains LIC Endowment Plus Policy Review Analysis & details.
You must have seen the ad on TV about a kid asking his young elder brother about the kind of girl he wants to marry, and he replies that he wants to marry a girl who is in government job (with job security), so that atleast one person keeps earning forever. The kid then replies that instead of looking for such secure job girl, its better to take LIC Endowment Plus Policy. Let us see whether this Endowment Plus policy really helps to achieve the kind of financial security which the ad claims to offer or is there something better to do.

LIC Endowment Plus Policy offers investment-cum-insurance during the term of the policy and is available for people under 7-60 years for a policy term between 10 years and 20 years.

LIC Endowment Plus Policy: Review Analysis & Details

The minimum annual premium under the policy is Rs 20,000 for regular modes and a risk cover of up to 11-30 times of annualized premium or 1.25 times of single premium.
The policy holder, it said, has the option to choose any of the 4 funds namely - Bond Fund, Secured Fund and Balanced Fund Growth Fund.
The option of switching within the funds is available any number of times during the duration of policy. The first four switches every year are free of charge and Rs 100 is levied thereafter per switch.

What are the unique features of the LIC Endowment Policy?
Endowment Plus Policy Features :
- It is a Unit Linked Endowment plan.
- Minimum Risk Cover is guaranteed.
- Entry age: 7 to 60 years.
- Maturity Age: 18 to 70 years.
- Term: 10 to 20 years.
- This plan has facility for Loan after 3 years from commencement.
- Partial Withdrawal is possible after 5 years from commencement.
- Plan can be availed on the life of a child, above the age of 7 years.
- It has 2 optional riders, which means extra protection.

What are the available options in the LIC Endowment policy?
for basic plan

a) minimum basic sum assured:
Regular Premium policies: (Policy Term +1) times the annualised premium
single premium:
For age at entry below 45 years: 1.25 times the single premium
For age at entry 45 years and above: 1.10 times the single premium

b) maximum basic sum assured:
Regular Premium policies:
30 times the annualized premium, if age at entry is upto 45 years
25 times the annualized premium, if age at entry is 46 to 60 years

Single premium policies:
If Critical Illness Benefit Rider is not opted for:
5 times the Single premium, if age at maturity is upto 65 years.
3 times the Single premium, if age at maturity is 66 to 70 years.
If Critical Illness Benefit Rider is opted for:
5 times the Single premium, if age at maturity is upto 55 years.
3 times the Single premium, if age at maturity is 56 to 60 years.

c) minimum premium:
Regular premium (other than monthly (ECS) mode): Rs. 20,000 yearly
Regular premium (for monthly (ECS) mode): Rs. 1,750 p.m.
Single premium: Rs. 30,000

d) Maximum Premium:
Regular premium: Rs. 1,00,000 p.a.
Single premium: No Limit
Annualized Premiums and single premium shall be payable in multiple of Rs. 1,000 for
other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-
e) minimum entry age: 7 years last birthday
f) maximum entry age: 60 years nearest birthday
g) policy term : 10 to 20 years
h) minimum maturity age: 18 years completed
i) maximum maturity age: 70 years nearest birthday
Age at entry for the policyholder is to be taken as age nearest birthday except for the
minimum age at entry i.e. 7 years.

For Accident Benefit
a) Minimum Sum Assured: Rs. 25,000
b) Maximum Sum Assured: Rs. 50,00,000 taking all existing policies of the Life Assured under individual as well as group schemes taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.
c) Minimum / Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 60 years nearest birthday
f) Policy Term: 10 to 20 years
g) Maximum Maturity Age: 70 years nearest birthday

Sum Assured shall be available in multiples of Rs. 5,000
For Critical Illness Rider Benefit
a) Minimum Sum Assured: Rs. 50,000
b) Maximum Sum Assured: Rs. 10,00,000 taking Critical Illness riders availed under all existing policies of the Life Assured with the Corporation and the Critical Illness Rider Sum Assured under the new proposal under consideration.
c) Minimum /Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 50 years nearest birthday
f) Policy Term: 10 to 20 years
g) Maximum Maturity Age: 60 years nearest birthday

What are the age limits for LIC Endowment policy?
Age limit is 7-60 years for LIC Endowment Policy.
How can I pay premium for LIC Endowment policy?
Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments.
Min. premium Rs. 20,000/- yearly or Rs.1750 per month by ECS mode.
Single Premium is also allowed under LIC Endowment Plus plan. Minimum onetime investment Rs.30,000/-

MCX IPO: Review Analysis & Details of Multi Commodity Exchange (MCX) IPO

noreply@blogger.com (Erica Hull) — Thu, 15 Sep 2011 10:44:00 +0000

MCX IPO Details, Review, Analysis, Opinion and information on MCX IPO
The MCX or Multi Commodity Exchange of India which is the leading commodity exchanges of India, has received approval from SEBI for it IPO and is now planning to come out with its Initial Public Offering or IPO. Once listed, MCX will be the first stock exchange in India which will have the prriviledge of being a listed stock exchange company. The approval from SEBI for the MCX IPO was received on date 9th September 2011.
In this article, we will look at the Review, Analysis and Details of the MCX IPO.

MCX IPO: Review Analysis & Details

Some basic details first about the MCX IPO, which are available as of now: Image sourced as screenshot from official website of MCX
- The size of MCX IPO is not known as of now. Will be updated as soon as the details are available
- Being a stock exchange, it derives its income from transaction fee, subscription fee, brokerage fee and similar related modes of a typical stock exchange.
- It is learnt to be the largest commodity exchange in India and sixth largest commodity exchange in the world

What is the issue size of the MCX IPO?
The issue size of MCX IPO is not known as of now.

What is the price band of MCX IPO?
The price band for MCX IPO is not yet decided, it will be available just prior to the IPO opening dates. Final price will be decided through 100% book building process. Face value of each share will be at the standard INR Rs. 10 per share

How many shares will be sold in the MCX IPO?
The total no. of shares to be sold through this IPO is around 64.3 lakh equity shares - that 6.43 million shares. That makes around 12.6% of the total equity of the company.

What are the IPO dates for MCX IPO
The IPO dates for MCX IPO are not yet decided - will be updated as soon as the details are available.

How will the capital raised by MCX IPO be used?
MCX is currently held by many financial institutions. Among them, some like FTIL or Financial Technologies, GLG Financials Fund, State Bank of India, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance and Bank of Baroda are selling a part of their shares through this IPO.
FTIL which is the largest stockholder currently holding 31% shares will sell out a large portion of its holding and post IPO its share will come down to 26%.

How the capital raised through this IPO will be used is not known as of now - will be updated as soon as the details are available:

See List of All IPO Articles here

Any ratings given to MCX IPO?
Yes - CRISIL, the rating agency, has assigned a grade of 5 out of 5 to the MCX IPO, which indicates the best possible rating any company can get.

What are the analysts recommendations and business results for MCX IPO?
Stock exchange business is known to be profitable - they make money even if the market participants trading on their markets loose. So it is considered to be a very safe business. However, one must not forget the intense competition that is going on even in the stock exchange space. There are lots and lots of stock exchanges coming up in India, that too in the space of commodity trading.
A stock exchange can continue to be in business only if it provides a reliable platform for trading and manages to capture bulk of trading activities onto it. MCX curently has the lead position in commodity trading in India. Backed by the largest shareholder, Financial Technologies, it is well placed to scale upon the high volume of trading that is expected to expand in near future.
Apart from that, there are other requirements like lauchning of innovative products like e-gold, e-silver, etc. which any stock exchange will have to continously come up with. Same goes with launching of various indices, like sector specific, country-region specific indices, which form the basis of other financial products like ETF's and the exchange derives licence fee from the asset management companies which launch such products.
It is also learnt to have global as well as domestic alliances with other stock exchanges like London Metal Exchange, TAIFEX - Taiwan Futures Exchange, Baltic Exchange, New York Merchantile Exchange, etc.
Currently as well, MCX is the known to be the largest stock exchange for silver contracts trading in the world. For gold contract trading, it is the second largest stock exchange in the world.
Not all countries in the world have stock exchanges listed as companies. USA, UK, HongKong, Singapore, Australia and Japan are the only countries at present which have allowed stock exchanges as listed entities. India will soon join the league once the MCX IPO opens and MCX shares start trading.

Edelweiss Capital, Citigroup Global Markets India and Morgan Stanley India are the BRLM or Book Running Lead Manager to the MCX IPO

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