PPF,NSC,MIS,RD,Post Office Schemes

Mutual Fund News for Today (March 30th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Tue, 30 Mar 2010 07:15:00 +0000

DIVIDEND

1.Religare MF Declares Dividend For Yearly Fixed Maturity Plan - Series I - Plan A.

Religare Mutual Fund has announced the declaration of dividend on the face value of Rs. 10 per unit under dividend option in regular & institutional plan of Religare Yearly Fixed Maturity Plan - Series I - Plan A (375 days) (close ended debt scheme). The record date for dividend has been fixed as 7 April 2010. The fund house has decided to distribute 100% of distributable surplus as dividend as on the record date.

News Source - NAV INDIA.

GENERAL

2.Buy SBI MFs through bank's debit card.

You can now invest in mutual fund (MF) schemes of SBI MF through your State Bank of India's (SBI) ATM-cum-debit card using the MF's Internet transaction facility. This is a first in the industry. Until now, you could invest in SBI MF schemes through the fund's website if you had a bank account with one of the 12 banks that they had tied up with. You needed to have an Internet banking facility with any of the 12 banks. Once you opened an online MF transaction account on SBI MF's website, you could select a fund and you were automatically directed to your bank's website where you could authorize the transfer of funds.

News Source - LIVE MINT.

Mutual Fund News for Today (March 29th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Tue, 30 Mar 2010 07:14:00 +0000

GENERAL

1.Govt banks make a dash to start mutual fund business.

IDBI Bank and Union Bank are the latest entrants. In less than 24 hours, two public sector players-IDBI Bank and Union Bank of India-announced their foray into over Rs 781,000-crore mutual fund (MF) industry, though both have taken different routes. While IDBI Bank decided to go solo, Union Bank has partnered Belgian asset manager KBC. By doing so, Union Bank has followed peers such as State Bank of India, Bank of Baroda and Canara Bank that have tied up with foreign partners.

News Source - BUSINESS STANDARD.

NEW FUND LAUNCH

2.Birla Sun Life Fixed Term Plan - Series CD Floats On.

Birla Sun Life Mutual Fund has launched a new fund named as Birla Sun Life Fixed Term Plan - Series CD (370 Days), a close ended income scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue opens & closes subscription on 29 March 2010.

News Source - NAV INDIA.

GENERAL

1.AMCs, fund distributors seek more time for KYC compliance.

Asset management companies (AMCs) and mutual fund (MF) distributors have sought more time to comply with know-your-client (KYC) norms and will soon make a representation to capital market regulator Securities and Exchange Board of India (Sebi) on the matter. "Fund houses and distributors have approached Association of Mutual Funds in India (Amfi) to take up this issue with Sebi," said an official familiar with the development.

News Source - ECONOMIC TIMES.

NEW FUND LAUNCH

2.Deutsche Mutual Fund launches DWS Global Agribusiness Offshore Fund.

Deutsche mutual fund has launched a new open ended overseas fund namely, DWS Global Agribusiness Offshore fund. The new fund offer under the scheme will be available from 06th April, 2010 to 30th April, 2010. The investment objective of the scheme is to generate long-term capital growth by investing predominantly in units of overseas mutual funds, focusing on agriculture and/or would be direct and indirect beneficiaries of the anticipated growth in the agriculture and/or affiliated/allied sectors.

News Source - MUTUAL FUND INDIA.

Mutual Fund News for Today (March 26th 2010) -- Evening Edition

noreply@blogger.com (Admin) — Sat, 27 Mar 2010 02:41:00 +0000

DIVIDEND

1.IDFC Premier Equity Fund declares dividend.

IDFC Mutual Fund has announced a dividend of 24% and 20% under dividend option of IDFC Premier Equity Fund - Plan A & B respectively (open-ended equity scheme). The record date for dividend has been fixed as March 29, 2010.

News Source - MONEY CONTROL.

GENERAL

2.Union Bank, Belgian KBC to invest 50 mn euros in JV.

Union Bank of India and Belgium's KBC will jointly invest 50 million euros in their planned mutual fund joint venture, the Indian bank's chairman and managing director MV Nair said on Friday. The venture, in which Union Bank will hold 51 per cent stake and KBC the rest, is likely to receive regulatory approval in four to five months, he told reporters at a media briefing.

News Source - ECONOMIC TIMES.

Mutual Fund News for Today (March 26th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Fri, 26 Mar 2010 09:10:00 +0000

GENERAL

1.IDBI Bank gets Sebi nod to launch its MF operations.

IDBI Bank today said it has received final nod from capital market regulator, SEBI, to launch its mutual fund operations. The asset management company, IDBI Asset Management (IDBI AMC) is aiming to launch its products across the equity and fixed income category.

News Source - ECONOMIC TIMES.

2.Reliance Mutual Fund announces dividend under its three schemes.

Reliance Mutual Fund has declared dividend under its open ended schemes - Reliance Diversified Power Sector Fund, Reliance Vision Fund and Reliance Growth Fund. The quantum of dividend decided for distribution is 25 per cent that is 2.5 per unit on the face value of Rs. 10 per unit each. The record date decided for distribution of dividend for all the schemes is 30th March, 2010.

News Source - MUTUAL FUND INDIA.

Mutual Fund News for Today (March 25th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Thu, 25 Mar 2010 15:07:00 +0000

NEW FUND OFFER

1.Edelweiss MF files offer document for Super Select Equity Fund.

Edelweiss Mutual Fund has filed an offer document with SEBI to launch Edelweiss Super Select Equity Fund, an open ended equity scheme. The primary investment objective of the scheme is to generate long term capital appreciation from a relatively concentrated portfolio of predominantly equity and equity related securities including derivatives. The Scheme may also invest in debt and money market instruments for managing liquidity or when the fund manager has a defensive view on the market.

News Source - IRIS.

GENERAL

2.ICRA Online, SWIFT to set up gateway for MF payments.

ICRA Online (ICRON), a subsidiary of rating firm ICRA, and Belgium-based Society for Worldwide Interbank Financial Telecommunication (SWIFT), on Wednesday entered into an agreement for setting up a payment gateway for transactions in mutual funds. The ICRON-SWIFT gateway will help reduce the time span for mutual fund transactions to one day as against the existing three days. This would be operational by early 2011. The platform would enable both institutions and retail investors to make payments against purchase of mutual fund units without writing cheques. PK Choudhury, vice-chairman and group CEO, ICRA, said, "The platform will effectively make use of secured mobile messaging system or the email messaging facility for fund transfer advices."

News Source - BUSINESS STANDARD.

DIVIDEND

1.Bharti AXA MF declares dividend for Equity Fund.

Bharti AXA Mutual Fund has approved Mar.29, 2010 as the record date for declaration of dividend under quarterly dividend option in eco plan and regular plan of Bharti AXA Equity Fund (open ended equity growth). The quantum of dividend under both the plans will be 10% i.e. Rs 1 per unit as on the record date.

News Source - IRIS.

GENERAL

2.Icra Online ties up with SWIFT for sms payments.

Prospective mutual fund and ULIP investors can now use the standard messaging service or SMS to make payments, rather than issuing cheques, while buying units. Icra Online has entered into a strategic tie-up with an international agency for setting up a new payments gateway in India. Credit rating agency Icra's tie-up with SWIFT, or Society for Worldwide Interbank Financial Tele-communication, is aimed at bringing down the turnaround time between making payment and receiving units in hand.

News Source - ECONOMIC TIMES.

Mutual Fund News for Today (March 23rd 2010) -- Evening Edition

noreply@blogger.com (Admin) — Wed, 24 Mar 2010 13:56:00 +0000

NEW FUND OFFER

1.Mirae Asset Indo China Consumption Fund files offer document with Sebi.

Mirae Asset Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Mirae Asset Indo China Consumption Fund, an open ended equity oriented scheme. The investment objective of the scheme is to generate long term capital appreciation through an actively managed portfolio investing in equity and equity related securities of companies that are likely to benefit either directly or indirectly from consumption led demand and should be domiciled or having their area of primary activity in India/China. The securities of these companies could be listed anywhere in the world.

News Source - NAV INDIA.

DIVIDEND

2.Canara Robeco Mutual Fund announces dividend under Canara Robeco Equity Diversified Fund.

Canara Robeco Mutual Fund has declared dividend under its scheme, Canara Robeco Equity Diversified Fund (open ended diversified scheme). The quantum of dividend decided for distribution is 20 per cent that is Rs 2.00 per unit on the face value of Rs. 10 per unit. The record date decided for distribution of dividend is 26th March, 2010.

News Source - MUTUAL FUND INDIA.

Mutual Fund News for Today (March 23rd 2010) -- Morning Edition

noreply@blogger.com (Admin) — Tue, 23 Mar 2010 08:30:00 +0000

GENERAL

1.Sebi moulds MF rules, but they matter little to investors.

Last week, Sebi published a circular with a range of changes in the rules governing the operation of mutual funds. Even though there were as many as six different changes that were made, there isn't anything much that would directly impact mutual fund investors. From an investor's perspective, the most interesting were the changes regarding New Fund Offers.

Unlike stock IPOs, mutual fund offers stay open for a long period, sometimes 30 or even 45 days. Sebi has now asked that this be shortened to 15 days. The reasoning behind this is that over a long period during which the issue is open, investors who apply early in the period find their money locked in unproductively. In the same spirit, Sebi has extended the ASBA (Applications Supported by Blocked Amount) system to mutual fund NFOs. In ASBA, investors apply for IPOs while the application amount stays in their own account and is just blocked from other use. The issuer is able to withdraw the amount when it allots the shares.

News Source - ECONOMIC TIMES.

NEW FUND LAUNCH

2.Reliance Fixed Horizon Fund - XIV-Series 4.

This scheme is a Close Ended Income scheme. The new fund offer starts from 23rd March 2010 to 25th March 2010.

News Source - AMFI.

Mutual Fund News for Today (March 22nd 2010) -- Morning Edition

noreply@blogger.com (Admin) — Mon, 22 Mar 2010 06:22:00 +0000

GENERAL

1.SBI Mutual Fund introduces new payment facility.

SBI Mutual Fund has decided to introduce the new payment facility through State Bank of India (SBI) ATM Cum Debit Card for online transaction of its website for its investors. The facility is available under the all schemes except SBI Magnum Insta Cash Fund, SBI Magnum Insta Cash Fund - Liquid Floater, SBI Premier Liquid Fund and SBI Short Horizon Debt Fund - Ultra Short Term Fund. The facility will be effective from 22nd March, 2010. State Bank of India will be set maximum amount of investment through this facility from time to time.

News Source - MUTUAL FUND INDIA.

2.Mutual fund industry gains in February as markets stabilize.

The Indian mutual fund industry reported a growth of 2.7% sequentially, after witnessing two successive sequential declines of 4.1% and 1.6% in January and December, respectively. It was mainly on account of positive inflow by the financial institutions and stabilization in the equity market. In February, the industry's average asset under management (AAUM) stood at Rs7.8 trillion, an increase of Rs20,200 crore.

News Source - LIVE MINT.

Cashless mediclaim

noreply@blogger.com (Admin) — Sun, 21 Mar 2010 07:09:00 +0000

Cashless mediclaim is not a new concept anymore. As the name suggests, you can get hospitalised, undergo surgery or both without having to pay cash at the time of bill settlement. The insurance company settles the bill directly through its third-party administrator (TPA) whose contacts are usually provided along with the policy. The hospital would require the patients ID card to check the policy details so as to deliver the cashless service. But this easy insurance works only under certain conditions.

Can you avail of cashless mediclaim in all hospitals?

Every insurer has a list of hospitals in which you can use the cashless facility. You can get this information in the insurance company's website and cross check with the TPA. The list, however, is subject to change as hospitals frequently have disagreements with insurers and drop the cashless arrangement. If the hospital of your choice is not on the list, you can still avail of treatment there. However, you will have to pay for the treatment at the first instance and later get a reimbursement from the insurer by submitting your bills. The average time taken for reimbursing bills is 20 days.

Whom should you approach if there is a problem with your cashless mediclaim?

Although the insurance policy would have been issued by some general insurance company, third party administrators play an active role in cashless mediclaim. The payment usually is made by the TPAs. Most of these TPAs provide administrative support to the insurance companies for servicing their insurance policies. As far as you are concerned, TPAs are the main contact point for settling claims. If the insurance company fails to stick to its contract, you can complain to the insurance ombudsman whose contacts are available on the Irda website.

What happens if your cashless mediclaim gets partly reimbursed?

This doesn't mean that the claim has been rejected by the insurance company. The claim has been rejected at the TPA's end. TPAs sanction the claim amount based on a clause called "customary and reasonable charges". They keep a database on average costs of various surgeries across cities. Based on this database, the TPA sanctions the claim amount.

Usually, a surveyor visits the hospital to validate the claim. At times, the TPA approves a part of the amount and the balance has to be borne by you. In extreme cases, the TPAs reject the claim if the surveyor is suspicious of the patient or hospital's credibility. In such cases, you have to settle the hospital bill and take up the case with the TPAs/insurer later.

How can you avoid part-payment or rejection of the claim?

In case of planned surgeries, you should check the approximate bill amount with the hospital. Then, you could check with the TPA on the size of the claim amount and its likely settlement. Often, even hospitals should take an in-principle approval from the TPA to avoid last-minute hassle in the case of planned surgeries. In fact, some TPAs make it mandatory for patients/hospitals to take prior in-principle approval except in case of accident-related claims.

Can you use cashless facility abroad?

Yes, you can, provided you have an overseas students mediclaim or a travel policy. Private insurers have tie-ups with hospitals abroad. Still, it is advisable for travellers or students to take a prior in-principle approval as mentioned above.

Source: Economic Times

How tax benefits work for you

noreply@blogger.com (Admin) — Sat, 20 Mar 2010 13:15:00 +0000

With the introduction of new tax slabs, here's how the income tax slab restructuring and tax benefits on home loan repayments help you save more.

Note: Income slabs in brackets are applicable for financial year 2009-10 (before budget).

Note: Additional cess and surcharges as applicable. Figures in rupees.

Saving after availing deductions on home loan interest and principal repayments

Note: It is assumed that the maximum income tax deduction on home loan repayments under Section 80C and Section 24 are availed.

Section 80C: The principal repayment that you make on your home loan is eligible for income tax deduction under Section 80C. The limit under Section 80C is Rs 1 lakh. This will include investments like provident fund, life insurance premium, equity-linked savings schemes of mutual funds, infrastructure bonds, pension plans and home loan principal repayment.

Section 24: Under Section 24, the maximum amount of interest on a home loan towards a self-occupied house that can be deducted from your income is Rs 1.5 lakhs. As a result, your taxable income decreases by that amount.

Source: Economic Times

Mutual Fund News for Today (March 19th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Fri, 19 Mar 2010 08:24:00 +0000

GENERAL

1.Liquid fund investors to gain from rate rise.

Even as gilt funds lose money when interest rates rise, those that invest in the money market gain. Money market is the shorter-term market where the tenure of instruments is less than one year. Liquid funds are investors' popular choice. They invest in very short-term securities such as commercial papers, short-term treasury papers and bank deposits. These instruments do not lose much value when rates rise. So, if one holds on till the maturity of the product, the investor stands to gain from a rising yield. So, while they are offering returns of around 4-5% currently, this number will rise when the Reserve Bank raises rates later in the year.

News Source - ECONOMIC TIMES.

NEW FUND LAUNCH

2.JPMorgan MF Launches Short Term Income Fund.

JPMorgan Mutual Fund has launched a new fund named as JPMorgan India Short Term Income Fund, an open ended income scheme. The new issue is open for subscription from 18 March and closes on 23 March 2010.

News Source - NAV INDIA.

Health Insurance plans - new types for tax benefits

noreply@blogger.com (Admin) — Fri, 19 Mar 2010 05:11:00 +0000

With the tax planning and investment season coming to an end in another month and a half, many are running around to get the best of the plans available in the market.

Most of the limit available under Section 80C would have been over by now.

Are there other ways to get tax benefits from taking up useful investments/expenses? Yes, there is always the health insurance plans.

Health insurance premium is technically an expense, as it does not buy any assets.

However it does buy one something more precious than any physical or financial asset – 'Peace of Mind'.

We can have the confidence that in case of a medical emergency, there is the insurance plan to take care of the expenses – to a larger extent if not to the fullest extent.

Looking at health insurance from the point of view of stress free living, it is an investment.

Health insurance plans get benefit under section 80D in the form of deduction from taxable income upto Rs.15,000/- for non-senior citizens and upto Rs.20,000/- if senior citizens are covered.

But many a times for a normal household with parents under the age of 45 and 2 children, the premiums may not come upto the levels at which one can maximise the Section 80D benefits.

Several companies have come up with plans to meet the needs of those who which to have health insurance and also make use of the Section 80D benefit to the full.

Companies like ICICI Prudential Life Insurance, ICICI Lombard General Insurance and Star Health Insurance have come up with health insurance plans where the premium is fixed at Rs.15,000 or nearby values.

The benefits from the plans in terms of medical cover and number of people covered can be determined as per the requirements of the insured.

All these plans also give cash-back facility for out-patient treatment. Normal health plans do not cover out-patient treatment except for some special surgeries. The out-patient claim per year is fixed based on the number of people covered and also the overall medical cover for the family. These are useful plans to consider.

Companies like United India Insurance and Star Health Insurance have come up with plans one can take very high covers for health (above Rs.5 lakhs). These companies are offering such plans as extensions to existing plans from their own companies or any other company.

Supposing Ramesh has a cover for Rs.3 lakhs from a company and has had the plan for the past 2 years, he will not want to shift from that company, as he will get cover for any pre-existing disease form the 3rd year onwards, also he would have got no-claim benfits.

Supposing he wants to increase the cover to Rs.10 lakhs now, his original company may not have a plan to give such high covers. This is the place that the new plans come in, they will provide cover to Ramesh for any claim above Rs.3 lakhs till Rs.10 lakhs.

The premiums for these plans are relatively less compared to the base health insurance plans.

Till last year there was not much choice for tax savers to maximise the benefits under Section 80D.

This year a number of companies are offering innovative plans specifically for this purpose. It is no doubt that these plans will be useful in the long run.

Hope the tax savers find the money to spend on these plans. These are expenses to get an asset called 'Peace of Mind'!

Source: Economic Times

Mutual Fund News for Today (March 18th 2010) -- Evening Edition

noreply@blogger.com (Admin) — Thu, 18 Mar 2010 13:19:00 +0000

DIVIDEND

1.Franklin Templeton announces tax-free dividend.

Franklin Templeton Investments (India), one of the largest fund houses in the country, has announced a tax-free dividend of Rs 2.00 per unit, in its Franklin India Flexi Cap Fund. All investors registered in the dividend plan as on March 23, 2010 will receive this tax-free dividend.

News Source - ECONOMIC TIMES.

NEW FUND LAUNCH

2.Bharti AXA Fixed Maturity Plan - Series C - Plan 2.

This scheme is a Close Ended Income scheme. The new fund offer starts from 18th March 2010 to 26th March 2010.

News Source - AMFI.

Read my Ulips, it’s a better long-term bet

noreply@blogger.com (Admin) — Thu, 18 Mar 2010 10:22:00 +0000

Reacting to the criticism against Ulips, the insurance regulator has brought about a number of changes in the way insurance companies structure these plans. At the same time, there have been changes in the tax structure on Ulips in the Union Budget. Both these measures have worked out in favour of the investor. If you are looking at a 20-year term, ULIPS charges work out to be more favourable than mutual funds.

Change in the charge structure: How does it impact you?

In July 2009, IRDA had mandated life insurers to impose a ceiling on their ULIPS charges (except mortality/morbidity charges, which is the cost of providing insurance protection). As per the notification, the difference between the gross return and net return (gross return minus the charges) for policies with tenure of up to 10 years should not exceed 300 basis points, while this gap is to be restricted to 225 basis points for those over 10 years.

The fund management charge for policies across maturities was capped at 135 basis points. Following the directive, insurers filed for revised products and phased out the older products by December 2009. "The recent regulatory cap on charges has enhanced the attractiveness of Ulips for customers through higher IRRs and incentives such as guaranteed loyalty additions for staying invested over the long term," says Vishal Gupta, director of marketing, Aviva Life Insurance.

Change in the service tax: How does it impact you?

The finance minister has tweaked the service tax on Ulips, which could increase the net yield by up to 4%. The cost structure of Ulips include policy administration charges, premium allocation charges, mortality charges and fund management charges besides the surrender and fund-switching charges.

As per last year's Budget, an investor was paying a service tax of 10% on all of these components. Now, this tax would be levied only on the fund management charges. This implies the other cost components would be freed from tax, which in turn would add to the internal rate of return (IRR).

This change would effectively create a level-playing field for Ulips and mutual funds, which are treated as competitors among the financial products, say insurers. In mutual funds, the service tax is charged only on the asset management company's (AMC) fees. This change in the service benefit would be passed onto both the new as well as old customers as the revised service tax would be applicable on every premium amount paid once the finance bill is passed.

Are you investing in Ulips for the right reason?

If you have seen any of the ULIPS advertisements, it refers to child's education or retirement planning. The clear underlying message here is the tenure of the investment. Even insurers define Ulips as a long-term insurance-cum saving instrument and hence, the minimum recommended policy term is 10 years.

Even if the policy has an option for partial withdrawals or surrender, you have to look at least 10 years to make some decent gains. "Under the new charge structure, the insurer earns the bulk of charges within five years as there is no year on year cap in charges. Even if the policy permits early exit, you will see significant erosion in capital," says Suresh Sadagopan, a certified financial planner.

What should be your risk appetite?

Ulips have something to give to all investor categories because of high flexibility in altering asset allocation. "Every Ulip has an all debt to a healthy debt-to-equity ratio to an all equity component. So every investor can identify with a Ulips. But if an investor is looking at a 10-year horizon, I recommend pure equity-oriented ULIPS," says Pranav Mishra, senior vice-president & head — Products, ICICI Prudential Life Insurance.

Are Ulips the best investment option?

If you are investing for less than 10-years, go for mutual funds. For longer-term investments, Ulips are a better option following the reduction in the charge structure. Agents, however, mis-sell Ulips by positioning them as a short-term premium payment instrument.

"It also becomes easier to tap a customer as you are not forcing him to get into a long-term contract. The concept of a lock-in and annual/quarterly frequency in premium payments is not very popular with customers. Hence, most agents find it easier to sell Ulips than a simple term plan," says Gaurang Shah, managing director of Kotak Life Insurance.

Source: Economic Times

Mutual Fund News for Today (March 18th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Thu, 18 Mar 2010 10:00:00 +0000

DIVIDEND

1.HDFC Mutual Fund announces dividend under HDFC Prudence Fund.

HDFC Mutual Fund has declared dividend under its scheme, HDFC Prudence Fund (open ended balanced scheme). The quantum of dividend decided for distribution is 35 per cent that is Rs 3.5 per unit on the face value of Rs. 10 per unit. The record date decided for distribution of dividend is 18th March, 2010.

News Source - MUTUAL FUND INDIA.

GENERAL

2.Mutual funds switching to short-term papers.

Mutual fund houses are rejigging debt portfolios and shifting from longer-term Government securities to shorter-tenor government securities (G-Secs), certificates of deposit (CDs) and commercial papers (CPs), which are providing better returns. Falling prices have made longer duration papers unattractive, as selling them in the secondary market would be a loss-making proposition, said fund managers.

News Source - BUSINESS LINE.

Mutual Fund News for Today (March 17th 2010) -- Evening Edition

noreply@blogger.com (Admin) — Thu, 18 Mar 2010 02:40:00 +0000

DIVIDEND

1.JM Financial MF declares dividend for Mid Cap Fund.

JM Financial Mutual Fund has approved Mar. 19, 2010 as the record date for declaration of dividend option of JM Mid Cap Fund - Dividend Plan (open ended growth scheme). The quantum of dividend will be 20% (Rs 2 per unit) as on the record date.

News Source - IRIS.

NEW FUND LAUNCH

2.Fortis Fixed Term Fund - Series 17 A Floats On.

Fortis Mutual Fund has launched a new fund named as Fortis Fixed Term Fund - Series 17 A, a 15 month close ended income scheme. The new issue is open for subscription from 17 March and closes on 22 March 2010.

News Source - NAV INDIA.

Mutual Fund News for Today (March 17th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Wed, 17 Mar 2010 10:35:00 +0000

GENERAL

1.Sebi banks on fund houses to improve corporate governance.

SEBI has asked MFs to disclose the actual exercise of proxy votes in annual and extraordinary general meetings of investee companies in terms of changes in capital structure, stock option plans, social and corporate responsibility issues, appointment and removal of directors, merger/corporate restructuring and anti-takeover provisions.

To make the NFO process more efficient, Sebi has reduced the timeline from 45 days for close-ended schemes and 30 days for open-ended schemes to 15 days. However, ELSS (equity-linked savings) schemes will continue to follow the government of India guidelines. Fund houses will have to allot units, refund money and dispatch statements of accounts within five business days from the closure of their NFOs.

Sebi has also barred fund houses from entering into any revenue-sharing arrangement with offshore funds as this leads to a conflict of interest. Any commission/brokerage received from the underlying fund will have to be credited into the account of the scheme concerned. Sebi observed that AMCs were entering into revenue-sharing arrangements with offshore funds in respect of investments made on behalf of Fund of Funds' schemes. It clarified that MFs could not collect additional management fees for any of the schemes. Fund houses have also been asked to stop paying dividends from the unit premium reserve. On brokerage and commission paid to associates, Sebi has said that fund houses should disclose the brokerage/commission paid to associates, employees or relatives.

News Source - BUSINESS STANDARD.

Tax 2010-11: Should you invest in infrastructure bonds?

noreply@blogger.com (Admin) — Tue, 16 Mar 2010 14:57:00 +0000

One of the fresh tax reliefs that has come as an outcome of the budget 2010 is the deduction allowed for investing upto Rs 20000 in the infrastructure bonds. Many articles and the FM have said that this is a very positive thing. But how can the same thing be positive for every individual. If not negative it should at least be neutral for many.

Else life would be so boring. This article will try to look the pros and cons of investing in Infrastructure bonds for the sake of tax saving. The analysis will be from the perspective of the different "tax groups" post budget 2010.

Tax group 1: Taxable income Rs. 1.6-5 lakhs

Tax group 2: Taxable income Rs. 5-8 Lakhs

Tax group 3: Taxable income above Rs. 8 lakhs

To understand the pros and cons of any tax saving investment we need to look at 4 major parameters

Actual tax saving (let's take the highest saving possible).

Returns from the investment (during the lock in period at the least).

Opportunity cost (what if the same money had been invested in some other investment?).

Effect of Inflation on the returns on investment (what would the worth of your investment be when it comes to redeem/encash it?).

For the sake of parameter two we will have to take an assumption on the lock-in period (as nothing has so far been announced by the Finance Minister). As is generally the case with most tax saving instruments we can assume two scenarios – 3 year lock-in and 5 year lock-in

Let's assume the rate of return on infrastructure bonds = 5.5% per annum.

Let's consider overall rate of inflation to be 8%. (Food inflation itself is currently at 18 %).

For people in the 1.6- 5 lakh taxable income group, as per the new norms the income will be taxed at a rate of 10%.

Parameter 1: Actual tax saving: 10% of Rs 20,000 = Rs 2000 (if you invest Rs 20000 in the instrument you get to reduce your taxable income by 20,000 thus giving a 10% benefit)

Parameter 2: What will be the returns at the end of the lock in period? For a lock in period of 3 years an investment of 20000 would fetch an income of Rs. 3484. When added to the tax saved we get an effective return of Rs 25485 (Rs 20000+3484+2000) on our investment

Parameter 3: If this same amount were to be invested in a market instrument that fetched a return of 15% (which is very reasonable considering that the benchmark Sensex and many mutual funds have given comparatively higher returns on a long period.) the investment would fetch an effective return of Rs 27, 376 (Rs 20000-2000=Rs 18000 invested @15% per annum for 3 years).

Parameter 4: What would be the minimum amount required to counter inflation at 8%? The amount would be Rs 25, 194.

Thus we see that for a person in the slab of 1.6-5 lakh the benefit out of investing in an infrastructure bond as a tax saving instrument will be only Rs 291 (Rs 25485-25194) whereas the benefit out of paying the tax and investing the balance in any decent instrument would be Rs 2182.

As seen from the table, it makes sense for people in the >Rs 8 lakh taxable income slab to use the infrastructure bonds as a tax saving instrument. For the people in the 5-8 lakh bracket it would be advisable to invest in infrastructure bonds if the period of investment is 3 years but not for five years and for those in the 1.6-5 lakh bracket it would be an absolute no-no to invest in Infrastructure bonds for tax saving purpose.

Source: Economic Times

Mutual Fund News for Today (March 15th 2010) -- Evening Edition

noreply@blogger.com (Admin) — Mon, 15 Mar 2010 16:12:00 +0000

NEW FUND OFFER

1.Taurus Gold-Edged Monthly Income Fund files offer document with Sebi.

Taurus Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Taurus Gold-Edged Monthly Income Fund, an open ended income scheme. The investment objective of the scheme is to generate regular income through a portfolio of fixed income securities, Gold ETFs and equity & equity related instruments.

News Source - NAV INDIA.

DIVIDEND

2.HDFC Mutual Fund announces dividend under HDFC Prudence Fund.

News Source - MUTUAL FUND INDIA.

Mutual Fund News for Today (March 15th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Mon, 15 Mar 2010 06:45:00 +0000

DIVIDEND

1.UTI MF declares dividend for Dividend Yield Fund.

UTI Mutual Fund has approved Mar.17, 2010 as the record date for declaration of dividend under dividend option of UTI Dividend Yield Fund (open ended equity oriented scheme). The quantum of dividend will be 5% (Rs 0.50 per unit) as on the record date.

News Source - IRIS.

GENERAL

2.MFs maintain good inflows on redemption fall.

Though sales from diversified equity schemes have come down sharply in February, a huge fall in redemptions helped the mutual fund (MF) industry to maintain healthy net inflows for the month. While sales from existing equity schemes dropped 36.1% to Rs 5,006 crore, redemptions, which hit a two-year high this January, plummeted 49% to Rs 3,492 crore, data with the Association of Mutual Funds in India (AMFI) shows. Redemptions from equity schemes for February are the lowest since last April.

News Source - ECONOMIC TIMES.

Earn well, but save better

noreply@blogger.com (Admin) — Sun, 14 Mar 2010 04:36:00 +0000

Dear All,

An article titled "Earn well, but save better" has been posted on http://www.investmentkit.com/latestnews/2010/03/14/earn-well-but-save-better/

Please go through it.

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.

Regards
http://www.InvestmentKit.com

Join our 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.

Women, get involved in your family finances

noreply@blogger.com (Admin) — Sun, 14 Mar 2010 04:26:00 +0000

Dear All,

An article titled "Women, get involved in your family finances" has been posted on http://www.investmentkit.com/latestnews/2010/03/14/women-get-involved-in-your-family-finances-2/

Please go through it.

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.

Regards
http://www.InvestmentKit.com

Join our 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 (March 12th 2010) -- Evening Edition

noreply@blogger.com (Admin) — Sat, 13 Mar 2010 03:30:00 +0000

NEW FUND OFFER

1.Taurus Sector Rotation Fund files offer document with Sebi.

Taurus Mutual Fund has filed an offer document with SEBI to launch Taurus Sector Rotation Fund, an open ended equity growth scheme. The primary investment objective of the scheme is to generate long term capital growth from a portfolio of predominantly equity and equity related instruments including equity derivatives. The scheme would normally be investing in a minimum of 4 and maximum of 6 high conviction sectors only. The Scheme may hold a limited number of additional sectors at times such as when the Fund Manager is accumulating new positions, phasing out and replacing existing positions, or responding to exceptional market conditions. The Scheme may also invest in debt and money market securities, for defensive considerations and/ or for managing liquidity requirements.

News Source - NAV INDIA.

GENERAL

2.ICICI Prudential Mutual Fund converts ICICI Prudential Fusion Fund Series II into open ended scheme.

ICICI Prudential Fund has declared that ICICI Prudential Fusion Fund Series II which is a close ended scheme will be converted to an open ended scheme. The change will be effective from 31st March, 2010. Investors who do not agree with the conversion may redeem or switch their units on or before 30th March, 2010 without paying any exit load. After the conversion into open ended, the scheme will not charge any exit load. The scheme is benchmarked against S&P Nifty and is managed by Mr. Sanjay Parekh.

News Source - MUTUAL FUND INDIA.

Mutual Fund News for Today (March 11th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Thu, 11 Mar 2010 14:53:00 +0000

DIVIDEND

1.Birla Mutual Fund announces dividend under its four schemes.

Birla Mutual Fund has declared dividend under its open ended schemes - Birla Sun Life Tax Plan, Birla Sun Life Equity Fund, Birla Sun Life Top 100 Fund and Birla Sun Life 95 Fund. The quantum of dividend decided for distribution are 75 per cent, 50 per cent, 10 per cent and 70 per cent respectively on the face value of Rs. 10 per unit each. The record date decided for distribution of dividend for all the schemes is 12th March, 2010.

News Source - MUTUAL FUND INDIA.

NEW FUND LAUNCH

2.Axis Fixed Term Plan - Series 2(371days).

This scheme is a Close Ended Income scheme. The new fund offer starts from 10th March 2010 to 18th March 2010.

News Source - AMFI.

DIVIDEND

1.Bharti AXA MF Declares Dividend For Tax Advantge Fund.

Bharti AXA Mutual Fund has approved the declaration of dividend in Eco and Regular plan under dividend option (dividend pay-out and re-investment facilities) of Bharti AXA Tax Advantage Fund (open-ended equity linked savings scheme). The record date for the declaration of dividend is 16 March 2010. The quantum of dividend will be 30% (Rs 3 per unit) on the record date.

News Source - NAV INDIA.

2.Benchmark Mutual Fund announces dividend under its three schemes.

Benchmark Mutual Fund has declared dividend under its open ended schemes - Benchmark S&P CNX 500 Fund, Benchmark Derivative Fund and Benchmark Equity & Derivatives Opportunities Fund. The quantum of dividend decided for distribution is Rs. 6.75, Rs. 20 and Rs. 0.10 respectively. The record date decided for distribution of dividend for all the schemes is 15th March, 2010.

News Source - MUTUAL FUND INDIA.

Mutual Fund News for Today (March 10th 2010) -- Morning Edition

noreply@blogger.com (Admin) — Wed, 10 Mar 2010 15:51:00 +0000

NEW FUND OFFER

1.Quantum Gold Savings Fund files offer document with Sebi.

Quantum Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Quantum Gold Savings Fund, an open ended fund of fund scheme. The investment objective of the scheme is to provide capital appreciation by predominantly investing in units of Quantum Gold Fund - Exchange Traded Fund (QGF).

News Source - NAV INDIA.

DIVIDEND

2.Religare Mutual Fund announces dividend under Religare Contra Fund.

Religare Mutual Fund has declared dividend under its scheme, Religare Contra Fund (open ended equity diversified 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 12th March, 2010.

News Source - MUTUAL FUND INDIA.