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Mutual Fund News for Today (January 29th 2010) -- Morning Edition
Mutual Fund News for Today (January 29th 2010) -- Morning Edition
| Mutual Fund News for Today (January 29th 2010) -- Morning Edition DIVIDEND 1.Religare Mutual Fund announces dividend under its Banking Fund. Religare Mutual Fund has declared dividend under its scheme, Religare Banking Fund (open ended scheme). The quantum of dividend decided for distribution is 25 per cent that is Rs 2.5 per unit on the face value of Rs. 10 per unit. The record date decided for distribution of dividend is 29th January, 2010. GENERAL 2.After MF load ban, Distributors push Portfolio schemes With a major source of income in the form of entry loads on mutual fund (MF) schemes having died down, distributors are pushing PMS (portfolio management services) products. For, distributors can charge as much as 2.25-2.50 per cent commission in PMS schemes, whereas all loads on MF investments have been banned, and service charges are based on the investor's discretion. Market players said some MFs had been paying higher commissions to distributors to market their PMS schemes. News Source - BUSINESS STANDARD. |
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Mutual Fund News for Today (January 28th 2010) -- Evening Edition
Mutual Fund News for Today (January 28th 2010) -- Evening Edition
| Mutual Fund News for Today (January 28th 2010) -- Evening Edition NEW FUND LAUNCH 1.Religare Mutual Fund launches Religare Gold Exchange Traded Fund. Religare Mutual Fund has launched a new open ended ETF scheme Religare Gold Exchange Traded Fund. The new fund offer would remain open from 28th January 2010 to 23rd February 2010. The scheme seeks to generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error. It will allocate 90 per cent to 100 per cent of assets in physical gold with medium risk profile. |
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Mutual Fund News for Today (January 28th 2010) -- Morning Edition
Mutual Fund News for Today (January 28th 2010) -- Morning Edition
| Mutual Fund News for Today (January 28th 2010) -- Morning Edition DIVIDEND 1.LIC MF Declares Dividend. LIC Mutual fund has announced 29 January 2010 as the record date for declaration of dividend under LICMF Index Fund-Sensex Advantage Plan. The fund house has decided to distribute 17.5% as dividend on the record date. LICMF Index Fund-Sensex Advantage Plan is an open ended index linked equity scheme seeking to provide capital growth by investing in index stocks and growth stocks. News Source - NAV INDIA.GENERAL 2.Fund's future is directly linked to govt policies. Whenever fund managers, equity analysts, brokers or institutional investors hold forth on their investment theme for the season, it invariably includes infrastructure. This year has been no different. This is despite companies in the core sector underperforming in the rally, unlike, say, companies that are a part of another popular theme, Indian consumption. |
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You've earned hard, now let money do the same for you
You've earned hard, now let money do the same for you
| They say that money is on the top of everyone's mind. That's really true. The fact is that it stays right there, and it requires a big trigger to get moving on it. We then rationalise, and justify our inertia. While my personal view is that financial planning is a universal requirement, there are some show-stoppers which we must recognise. If these thoughts are there in your mind, banish them and achieve financial freedom. The top reasons for procrastination are: "I have too little money" Financial planning is required when the goals you have are more than the funds that you possess. Waiting for the great day when we have accumulated a sizeable corpus to start planning is like living for today, without any plans for tomorrow. "I don't have enough to spend" Even if you are thinking this, you need a plan, manage credit (or debt) judiciously. Invest the money you receive in a liquid fund and keep a minimum amount in the bank. Prepare a budget and stick to it, you may be surprised with how much you can save. "After I complete my house..." I have come across clients who have used marble-tops in their kitchen and granite on their floors as they had funds in their bank account. Only later they realised that their son's education was of greater priority. "I can't afford planning" It's the same as refusing to consult a specialist doctor even when you are seriously ill and advised to do so. Constructing a financial plan is as important as getting the blueprints to build your home. Paying for these services also makes your advisor accountable to you, so don't hesitate on this count. "I can do it myself" Some people have an inborn flair for numbers and are organised enough to keep regular track of all their investments. Now the question is: are they emotionally cut off from their investments enough to take the right decisions? A financial advisor has the requisite qualifications and training that a layman can only master to a small extent. "I only invest in FDs" Most of India's domestic savings are heading to bank deposits. However, with inflation soaring and interest being taxable, you need an avenue which enhances the value of your investments, after inflation and tax. "I don't need advisors" There is an information overload: the media and the internet make investing look like child's play. There are many factors to consider: financial goals, cash flow, risk-taking ability. If this seems overwhelming, take the help of an advisor, who can recommend changes not for the entire mass, but specifically for you. "I don't trust advisors" If you lack trust, because of an awful experience previously, the mistake was probably made while hiring the advisor. Make sure you do your homework before choosing your advisor. Remember, you need to exercise the same care as you would while selecting your life partner. "I don't have the time" This is the most popular reason that people give for procrastinating. Take one step at a time. Talk to people you know and trust, and ask them who manages their finances. Talk to a few advisors, look for the 3 Es — empathy, ethics, education. Invest some time to know your advisor and you can save yourself a lot of time, effort and money! But do it today. Source: Economic Times Regards Visit us at: http://www.InvestmentKit.com Join my SMS network Free! at http://labs.google.co.in/smschannels/subscribe/InvestmentKit *Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing. *Insurance is the subject matter of solicitation. Disclaimer: The content in this email is purely for Information purposes only and is not an offer or solicitation of any kind. This content should not be acted upon without consulting or without the prior advice of your financial advisor. Nothing in this email should be considered personalized advice about your investment, real estate, insurance or other personal finance decisions. The information in this email is confidential, and intended solely for the addressee. Access to this email by anyone else is unauthorized. Any copying or further distribution beyond the original addressee is not intended, and may be unlawful. |
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Mutual Fund News for Today (January 27th 2010) -- Evening Edition
Mutual Fund News for Today (January 27th 2010) -- Evening Edition
| Mutual Fund News for Today (January 27th 2010) -- Evening Edition DIVIDEND 1.Sundaram BNP Paribas Mutual Fund announces dividend in ELSS scheme. Sundaram BNP Paribas Mutual Fund has declared dividend under its ELSS scheme, Sundaram BNP Paribas Taxsaver Fund (open ended equity linked savings scheme). The quantum of dividend decided for distribution is 20 per cent that is Rs 2 per unit. The record date decided for distribution of dividend is 29th January, 2010. |
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Let insurance battle cost of medical treatment
Let insurance battle cost of medical treatment
| A cardiac treatment could cost anywhere between Rs 2 lakh and Rs 4 lakh. For a cancer treatment, you may end up paying Rs 10,000 per week. Treatment for a gastric problem could cost up to Rs 50,000 or even Rs 1 lakh if the situation warrants a surgery. Though mere estimations, these numbers would not be comforting at all if you were to foot the bills. A more discomforting fact is that the cost of medical treatments is steadily going up. Says Deepak Mendiratta, managing director, Health and Insurance Integrated, a health insurance consultancy: "New technologies, drug discoveries and limited supply of medical infrastructure are pushing up medical costs by about 18-22% every year." A 22% hike is more than the average salary hike or the return on investment you may get. But there is a way to battle such costs. Buy health insurance. By paying around Rs 3,000 per year, you would get a cover of roughly Rs 5 lakh. In other words, your insurer will pay up to Rs 5 lakh for your medical expenses. You will also get a tax benefit on the premiums you pay. Under section 80D of the Income-tax Act, your premiums qualify for tax deduction up to Rs 15,000. If you are a senior citizen, you can claim up to Rs 20,000. But tax benefit is not the reason why you should buy health insurance. Says Sumeet Vaid, MD and founder, Ffreedom Financial Planner Pvt. Ltd: "Health insurance should be seen as a risk management strategy and not as a tax planning strategy." PLANS ON OFFER Regular indemnity plans: Your basic health insurance policy is an indemnity cover that reimburses expenses incurred during, before and after hospitalisation. Nowadays, policies offer the cashless facility for claims. To avail it, you just need to inform the hospital, which will take it up with your third-party administrator, who will settle your claim. The minimum age requirement for this policy is about three months. Insurers, typically, insure a child as a dependant of his parents. This can be done either through an add-on to the parent's individual policy by paying an extra premium, or by adding the child under a family floater plan. Family floater plans: Here, the sum insured is the same for all the members of a family. If one member makes a claim, the sum insured is reduced for the entire family, to that extent. Defined benefit plans: There are many hybrid plans on offer. Critical illness plans are the most popular among these. These give you a one-time benefit if you suffer from any specified critical illness such as a heart attack, cancer, diabetes, kidney failure, major organ transplant or paralysis. Hospital cash policies work as a buffer and provide you a pre-defined daily cash benefit, irrespective of hospital costs. Health-cum-savings plans invest a part of your premium or return the premium at the end of the policy tenure. Most defined benefit policies are long-term, have a standard premium for a certain number of years and are offered mostly by life insurers. A typical health insurance policy offered by a life company is a bundled policy that combines the benefit of critical illness plan, hospital cash plans and surgical benefits. In some plans, a death cover is also available. These policies qualify for tax deduction both under section 80D (up to Rs 20,000) and under section 80C (up to Rs 1 lakh). WHAT TO CONSIDER? You are spoilt for choice with different policies offering different benefits. But buying a health insurance policy is not simple. Here, there are caveats, which could result in serious financial loss. For instance, a critical illness plan would give you a hefty lump sum, but only for pre-defined critical illnesses and that too after a waiting period. After buying the policy, you need to wait for about six months before you can make a claim. In some policies, if you are diagnosed with an illness, you need to have survived the illness for a month before getting the benefit. Says Antony Jacob, CEO, Apollo Munich Health Insurance Co. Ltd: "Before buying a policy, one must read the exclusions. Go through the waiting period, sub-limits, and excluded ailments. Understand how the benefits are paid out." YOUR STRATEGY Keep it simple: Just like life covers, keep these policies simple and cheap. Typically, health insurance is meant to take care of expenses in case of hospitalisation. Buy a basic health insurance and top it up with a floater for your family. Do not rely entirely on the group cover offered by your employer as a job change or retirement could leave you uninsured. And with portability still some time away, you may not be able to carry over the benefits to any new policy you may buy. Buy early: When you are young, the premiums would be cheaper, you are unlikely to have any pre-existing diseases and your cover would keep increasing on its own. Buy the policy late and your pre-existing ailments are not covered, premiums are very high or you may have to settle for a lower insurance cover. In some cases, the cover may be denied altogether. Rahul Aggarwal, CEO, Optima Risk Brokers, says: "A basic health insurance should be bought as early as possible. You can then top it up with benefit policies." Take benefit policies last: Most benefit policies can easily be given a miss if you are sufficiently insured. If your family has a history of serious ailments or your lifestyle is stressful, you can take a critical illness plan. But it is no substitute for health insurance or life insurance as it is meant to support your loss of income if you are diagnosed with a serious ailment. Says Vaid: "Insurance is meant to cover you for three losses: income, health and assets. We recommend our clients to avoid bundling products." This tax season, take a step-by-step approach towards health insurance. Source: Yahoo |
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Mutual Fund News for Today (January 27th 2010) -- Morning Edition
Mutual Fund News for Today (January 27th 2010) -- Morning Edition
| Mutual Fund News for Today (January 27th 2010) -- Morning Edition DIVIDEND 1.UTI MF declares dividend. UTI Mutual Fund has announced 1 February 2010 as the record date for declaration of dividend under UTI Fixed Term Income Fund-Series V-X (12 months) (closed ended income scheme). The fund house has decided to distribute 100% distributable surplus as dividend on the record date on the face value of Rs 10 per unit. GENERAL 2.New strategy: Mutual funds turn focus on retail investors. The Mutual fund industry is passing through testing times, with assets dwindling owing to withdrawals by banks and investors showing little faith in the long-term prospects of MFs. Fund houses are now going back to the basics: serving individual investors rather than chasing banks and companies for showing impressive figures of assets under management, something that the Securities and Exchange Board of India has been advocating. |
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Mutual Fund News for Today (January 25th 2010) -- Evening Edition
Mutual Fund News for Today (January 25th 2010) -- Evening Edition
| Mutual Fund News for Today (January 25th 2010) -- Evening Edition DIVIDEND 1.Birla Mutual Fund announces dividend under equity schemes. Birla Mutual Fund has declared dividend under two of its schemes, Birla Sun Life Midcap Fund and Birla Sun Life India Frontline Equity Fund. The quantum of dividend decided for distribution under Birla Sun Life Mid Cap Fund & Birla Sun Life India Frontline Equity Fund are 25 per cent that is Rs 2.50 per unit and 20 per cent that is Rs.2 per unit respectively. The record date decided for distribution of dividend is 29th January, 2010. GENERAL 2.Party's over, MFs keep NFO launches simple. Tough times call for tougher measures. Gone are the days when fund houses threw lavish distributor parties, extensive advertisements and countrywide roadshows to sell new fund offerings (NFOs). Post-entry load ban, fund marketers have been striving hard to keep expenses under control, cutting down on paraphernalia's which were earlier considered basic necessities for fund-selling. |
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Mutual Fund News for Today (January 25th 2010) -- Morning Edition
Mutual Fund News for Today (January 25th 2010) -- Morning Edition
| Mutual Fund News for Today (January 25th 2010) -- Morning Edition DIVIDEND 1.Religare MF Declares Dividend For Banking Fund. Religare Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit under dividend option of Religare Banking Fund (open ended banking sector scheme). The record date for dividend has been fixed as 29 January 2010. The fund house has decided to distribute dividend of 25% subject to availability of distributable surplus as on the record date. News Source - NAV INDIA.GENERAL 2.DLF exits mutual fund JV with Prudential Finance. Reality firm DLF on Saturday said it has sold its entire 39 per cent stake in mutual fund joint venture DLF Pramerica Asset Managers to partner Prudential Finance as its participation is not in conformity with SEBI's modified guidelines. "DLF's decision to exit from this area of business was triggered due to changes by SEBI in its evaluation criteria for getting approval to the joint venture mutual fund to commence its business," a release said in New Delhi. 3.MF trading volumes low on exchanges. It's been more than a month since mutual funds (MF) were made available on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). However, the size of transactions have been low till date. The average value of subscription at the NSE and BSE have been Rs11.03 lakh and Rs26.27 lakh, respectively. |
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What is the process for buying and selling stocks?
What is the process for buying and selling stocks?
Any purchase of shares through a stock exchange needs to be routed through brokers registered with the exchange. Hence, for buying and selling shares on a regular basis, you need to register with a broker. This can be done by approaching a broker and signing up a client agreement form. It is also essential for a person to open a demat account through which securities are delivered and received. This demat account can be opened with a depository participant which again is a Sebi-registered intermediary. A broker asks his client to deposit money with them and then buys shares for you. The shares you buy from the broker will be transferred to your demat account after which you own the shares. Similarly, when a person sells shares, he has to transfer shares to the broker's account through his demat account. What is a settlement cycle? Whatever shares you buy, you need to get delivery of those shares. While if you sell shares, you need to get payment or cash for the same. The time taken to conclude both legs of the transaction is called a settlement cycle. In India, stock exchanges follow a T+2 days settlement cycle. Trading of securities happen on the first day while the settlement of the same happens in two working days after that. This means that a security bought on Monday will be received by the client earliest on Wednesday, which is called a payout day by the exchange. If a person has bought security, he is supposed to pay money to the broker before paying on deadline, which is two days after the trading day, but the second day is considered till 10:30 a.m. How does a broker identify which shares are to be transferred to his client? Brokers identify their clients by a unique code assigned to a client. After the transaction is done by a client, the broker issues him a contract note which provides details of transaction such as time and date of the trade. Apart from the purchase price of security, a client is also supposed to pay brokerage, stamp duty and securities transaction tax. In case of a sale transaction, these costs are reduced from the sale proceeds and then the remaining amount is paid to the client. Who is responsible for settlement of trades? Settlement of securities is done by the clearing corporation of the exchange. Settlement of funds is done by a panel of banks registered with the exchange. Clearing corporation identifies payable/receivable position of brokers based on which the obligation report for brokers is created. On T+2 days, all the brokers who have transacted two days before receive or give shares to the clearing corporation of exchange. This is an automated process undertaken by the depository which is either the NSDL and CDSL. Is my trade guaranteed by the exchange? If you deal through a stock exchange, this risk is reduced due to trade/settlement guarantee offered by the stock exchange mechanism. Further, you also have certain protections against defaults by your broker. How many times can one buy and sell within a settlement cycle? It's possible to buy and sell the same stock several times within a day, unless the stock is in the trade-to-trade category. Hence, you can settle only your net outstanding positions at the end of the day. If you buy 200 Reliance shares and sell 100 shares, you will have to pay only for 100 shares at the end of the settlement. Source: Economic Times Join my SMS network Free! at http://labs.google.co.in/smschannels/subscribe/InvestmentKit *Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing. *Insurance is the subject matter of solicitation. Disclaimer: The content in this email is purely for Information purposes only and is not an offer or solicitation of any kind. This content should not be acted upon without consulting or without the prior advice of your financial advisor. Nothing in this email should be considered personalized advice about your investment, real estate, insurance or other personal finance decisions. The information in this email is confidential, and intended solely for the addressee. Access to this email by anyone else is unauthorized. Any copying or further distribution beyond the original addressee is not intended, and may be unlawful. |
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Know the basics before buying a health cover
Know the basics before buying a health cover
| GENERALLY, while buying a health cover, insurance seekers tend to rely on their agents to understand the nuances of the policy. Many policyholders get acquainted with what their policy doesn't cover, only if their claims are rejected. Consequently, while the awareness of health insurance is growing, so is the number of disputes on claim settlement. Here are a few tips to ensure a relatively hassle-free claim settlement procedure Scrutinise your policy document Before signing up for the policy, you need to ascertain the terms and conditions specified. If you are aware of exactly what your policy covers, that would nip many potential disputes in the bud. "What usually happens is, individuals are dependent on their agents or brokers and take their views at face value. The intermediaries are mainly concerned about their commission. Therefore, neither the insured nor the broker adequately analyses the policy's content," informs Raksha TPA chief executive Pawan Bhalla. Declare pre-existing ill Some policyholders tend to avoid declaring pre-existing illnesses while buying a health cover, which is an unwise approach to adopt. Individual policies typically exclude pre-existing illnesses. After all, you will have to reveal the same to the doctor who is attending you, in order to ensure appropriate diagnosis and treatment. If the third party administrator (TPA) stumbles upon this fact while studying your medical history, your claim could be rejected, leaving you with a huge burden of cash outgo to deal with. Know the exclusions While getting a health cover, you should focus on the exclusions — illnesses and ancillary expenses that are not covered. Usually, insurers do not agree to pay expenses incurred for piles, cataract, etc., in the first year. Pregnancy too is not covered under standalone mediclaim policies. "The same goes for dental treatment, crutches, etc. Some other insurers exclude the cost of external aids like pacemaker and wheelchair, or tonics and vitamins prescribed by the doctor," informs Meena Nair of India Insure Risk Management & Insurance Broking Services. This apart, claims pertaining to outpatient department and diagnostic costs are also not entertained in India. Reasonability clause Keep an eye for the reasonability clause in your policy, which states that only those expenses that are 'reasonably and necessarily' incurred will be reimbursed. Insurance companies are using this clause to restrict payments, wherever they feel that the hospital has overcharged under a particular head. For instance, you could have received a treatment from a doctor who has charged a fee of Rs 1 lakh. Now, if it so happens that other hospitals or doctors provide the same treatment for a lower amount — say Rs 50,000 — the TPA will sanction a claim of only Rs 50,000. Sub-limits, deductibles, co-payments Most policies prescribe a ceiling on the expenses that can be approved under the policy. For example, your insurer could put a cap on operation theatre charges, room rent, etc, even if the total claim made does not exceed your policy's sum insured. Similarly, some policies could ask the insured to share a part of the costs incurred. It is also advisable to check whether the extent to which expenses incurred during the pre- and post-hospitalisation periods can be reimbursed. Typically, claims pertaining to 30 days prior to hospitalisation and 60 days post-discharge are admissible. Keep the TPA in the loop If you are opting for the cashless facility, you could inform the TPA in advance regarding your hospitalisation (48 hours before admission), during an emergency. "You could speak to the TPA before admission to understand the procedure and requirements. You can also enquire about the availability of any help desk from the TPA at the hospital," advises NK Kedia, director — marketing, IFFCO-Tokio General Insurance. Get a grip on documentation Make sure you collect the discharge summary, diagnostic reports, medical advice for the post-hospitalisation period and a copy of bill and cash receipts from the hospital. "You should verify the duly completed bill from the hospital and sign the same. Any erroneous entry in the bill could eat away your precious sum insured for the rest of the policy period," adds Mr Kedia. It also makes immense sense to submit all the documents at one go, to avoid any possible delay in claims processing. Source: Economic Times save |
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