|
|
Mutual Fund News for Today (February 11th 2010) -- Evening Edition
Mutual Fund News for Today (February 11th 2010) -- Evening Edition
| GENERAL 1.Total assets of MF increased by 14.07% in January 2010. The mutual fund (MF) industry registered 14.07% increase in total asset under management (AUM) to Rs 7.59 lakh crore as on 31 January 2010 from Rs 6.65 lakh crore as on 31 December 2009. The huge inflow on account of income funds aided the increase in total asset during the month of January 2010. 2.BoI in pact with Birla Sun Life for MF distribution Bank of India has entered into a tie up with Birla Sun Life mutual fund for the distribution of mutual funds products. The bank has signed a memorandum of agreement with Birla Sun Life to use its 3,100 branches to distribute the latter's MF products. |
|
|
How to withdraw money from PF Account
How to withdraw money from PF Account
| The Employee Provident Fund (EPF), or provident fund as it is normally referred to, is essentially a retirement saving plan that is available to salaried employees. Therefore, withdrawing money from one's PF account is not advisable, unless in case of extreme emergency. However, if there is no other option but to withdraw the amount standing to your credit in the EPF account, then you can do so under certain circumstances. Three, it can also be done immediately before migration from India for permanent settlement abroad or for taking employment abroad. Thank you, your business is appreciated! We strive to provide you with the best service possible. If there is anything we can do to serve you better, please let us know. For withdrawing the amount, "an application for withdrawal of provident fund contribution has to be made in Form 19, to be furnished manually, specifying therein personal details of employee, details of employer, period of employment and contribution made for the current financial year," says Sonu Iyer, tax partner, Ernst & Young India. Besides, a cancelled cheque of the bank account maintained in India from the expatriate in order to verify the bank account details also need to be submitted. It, however, need to be noted that the withdrawal of PF contribution is not tax-free in all the cases. In fact, tax implications would arise if the amount standing to the credit in the EPF account is withdrawn by the employee before rendering 5 years of continuous service. Provident Fund would be fully taxable under DTC However, in case the employee has rendered more than 5 years of continuous service (service period includes period with last employer and previous employers), the entire accumulated balance received by an employee would be exempt under Indian tax laws. EPF is a retirement benefit scheme Whatever be the case, it must be understood that EPF is not a saving or investment avenue, but essentially a retirement benefit scheme that is available to salaried employees. 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. |
|
|
Mutual Fund News for Today (February 11th 2010) -- Morning Edition
Mutual Fund News for Today (February 11th 2010) -- Morning Edition
| GENERAL 1.Equity MFs see first revival since entry load ban. The mutual fund (MF) industry saw net inflows in equity schemes in January, the first time since the Securities Exchange Board of India banned entry load on equity schemes in August last year. During the month, sales of equity MFs almost doubled on a month-on-month basis. According to data released by the Association of Mutual Funds in India, the equity segment registered net inflows of Rs 980 crore as against net outflows of Rs 2,185 crore in December. Equity sales during the month stood at Rs 7,837 crore as against Rs 4,047 crore in December as the three new fund offers in the equity segment during the period mopped up Rs 1,590 crore. NEW FUND LAUNCH 2.Sundaram BNP Paribas FTP - Y. This scheme is a Close ended Income scheme. The new fund offer starts from 11th Feb 2010 to 23rd Feb 2010. News Source - AMFI. |
|
|
Mutual Fund News for Today (February 10th 2010) -- Morning Edition
Mutual Fund News for Today (February 10th 2010) -- Morning Edition
| DIVIDEND 1.ICICI Prudential Mutual Fund announces dividend under its FMCG Fund. ICICI Prudential Mutual Fund has declared dividend under its scheme, ICICI Prudential FMCG Fund (open ended equity scheme). The quantum of dividend decided for distribution is 12 per cent that is Rs 1.2 per unit on the face value of Rs. 10 per unit. The record date decided for distribution of dividend is 11th February, 2010. NEW FUND LAUNCH 2.Edelweiss Income Advantage Fund. This scheme is an Open ended Income scheme. The new fund offer starts from 10th Feb 2010 to 17th Feb 2010. News Source - AMFI. |
|
|
Spot check: HDFC's systematic savings plan
Spot check: HDFC's systematic savings plan
| Last week, housing finance major HDFC introduced a recurring deposit scheme that comes with a variable interest rate structure. Termed systematic Industry watchers and analysts are of the opinion that interest rates will move northwards in the near future, as RBI feels obliged to take measures to control the rising inflation. Many depositors, therefore, are wary of locking in their money in deposits of longer tenure, lest they lose out on the opportunity to tap higher interest rates later. This rationale is also reflected in the tendency amongst depositors to withdraw their deposits prematurely as interest rates start inching upwards. This product, thus, could act as an antidote to both; since the rates on offer will be revised upwards as the interest rates trudge higher, the depositor need not be concerned about earning less vis-à-vis the prevalent market rates. Moreover, SSP may also find takers in investors unnerved by the recent volatility in the stock market, as they seek comfort in the relatively stable returns offered by this scheme. Also, according to the mortgage lender, any revision in the deposit rate will apply to existing depositors of matching tenure, ensuring uniform rate for old as well as new investors. On the flipside, depositors may have to take a hit when interest rates see a fall. If you are of the view that interest rates will not go up substantially from here, you might not want to get into a floating rate product. In such a case, you could consider other banks' recurring deposit schemes. For instance, SBI offers a rate of interest of 6.5% per annum for tenures of 2-5 years. Besides, the minimum maturity period and instalment is just 12 months and Rs 100, respectively. Short-term debt funds can be said to be the closest possible comparable product, as they too look at capturing interest movements in the near term. However, the point to be noted here is that such funds are ideal for short-term investments ranging from 6-12 months, whereas SSP prescribes a minimum tenure of 24 months. Also, while mutual funds cannot guarantee, HDFC is a triple A-rated company and guarantees returns as per the declared rate. The former, however, scores over HDFC's scheme in terms of post-tax returns. While the interest earned on the SSP will be added to the depositor's income and taxed as per the slab applicable, returns are unlike debt funds which are subject to capital gains tax. If units are sold after being held for more than 12 months, the profits, if any, are taxed at the lower of 20% after factoring in the indexation benefit, or at 10% without indexation benefit. Why invest: Since interest rates are expected to go up in the coming months, the rate of return on SSP could increase in tandem. Why not to invest: May not be suitable for those looking for stable returns throughout the tenure, as rates could be reset to mirror the low interest rate cycle. Source: Economic Times Regards http://www.InvestmentKit.com |
|
|
Mutual Fund News for Today (February 9th 2010) -- Morning Edition
Mutual Fund News for Today (February 9th 2010) -- Morning Edition
| DIVIDEND 1.Birla Sun Life MF declares dividend. Birla Sun Life Mutual Fund has approved Feb.11, 2010 as the record date for declaration of dividend under dividend option of Birla Sun Life Income Fund 54EA Plan (open ended income scheme). The fund house has decided to distribute 24% (Rs 2.40 per unit) as dividend on the record date. NEW FUND LAUNCH 2.Sundaram BNP Paribas FTP - S Floats On. Sundaram BNP Paribas Mutual Fund has launched a new fund named as Sundaram BNP Paribas FTP - S, a close ended income scheme. The maturity period of the scheme is 367 days from the date of allotment of units. The new issue is open for subscription from 9 February and close on 15 February 2010. |
|
|
Mutual Fund News for Today (February 8th 2010) -- Evening Edition
Mutual Fund News for Today (February 8th 2010) -- Evening Edition
| DIVIDEND 1.HDFC Mutual Fund announces dividend under its ELSS scheme. HDFC Mutual Fund has declared dividend under its scheme, HDFC Long Term Advantage Fund (open ended equity linked savings scheme). The quantum of dividend decided for distribution is 37.5 per cent that is Rs 3.75 per unit on the face value of Rs. 10 per unit. The record date decided for distribution of dividend is 11th February, 2010. News Source - MUTUAL FUND INDIA.2.ICICI Prudential FMCG Fund declares dividend. ICICI Prudential Mutual Fund has declared a dividend of 12% under the dividend plan of ICICI Prudential FMCG Fund (open ended FMCG Sector Scheme). The record date for the dividend is February 11, 2010. |
|
|
Mutual Fund News for Today (February 8th 2010) -- Morning Edition
Mutual Fund News for Today (February 8th 2010) -- Morning Edition
| DIVIDEND 1.Sundaram BNP Paribas Mutual Fund announces dividend under its India Leadership Fund. Sundaram BNP Paribas Mutual Fund has declared dividend under its scheme, Sundaram BNP Paribas India Leadership Fund (open ended equity scheme). The quantum of dividend decided for distribution is 20 per cent that is Rs 2 per unit on the face value of Rs. 10 per unit. The record date decided for distribution of dividend is 11th February, 2010. GENERAL 2.Monthly income plans catch investors' fancy. Monthly income plans (MIP) of mutual funds seem to have captured the fancy of 'riskaverse' investors. Faced with the prospects of shrinking returns from debt schemes, many investors are turning to their financial advisors for help and the advice they mostly get is the same: '' Invest in MIPs, which have a small exposure (mostly 15-25 %) to equity. The equity component will act as a 'kicker' and give you extra returns.'' |
|
|