Saturday, January 26, 2013

Prajna Capital

Prajna Capital


What Are Close-Ended Mutual Fund Schemes?

Posted: 26 Jan 2013 05:50 AM PST

Invest Mutual Funds Online

Call 0 94 8300 8300 (India) 

These are schemes launched by mutual fund houses, wherein, one can invest only during the new fund offer period. Once this is over, one cannot invest. These schemes can have a debt or equity mandate. Also, they have a pre-specified maturity period or a lock-in, after which the scheme may either become open-ended or wind up its operations and return the investment to the investors, calculated in accordance with the net asset value (NAV) on the maturity date. However, the second option is rarely exercised for equity close-ended schemes. These schemes are listed on either the Bombay Stock Exchange or the National Stock Exchange after the NFO period ends. The NAV is generally disclosed on a weekly basis.

 

How can you exit these schemes?

Investors have mainly two options for exiting the scheme prematurely. They can buy or sell the units of the scheme on the stock exchanges where the units are listed or sell the units back to the fund house. The Securities and Exchange Board of India regulations stipulate that at least one of these exit routes is provided to the investor. Fund houses are open to repurchasing the units at NAV-related prices at periodic intervals. This could be done once a quarter or once in six months. It is mostly applicable to equity schemes. Debt schemes, such as fixed maturity plans, rarely offer this repurchase window. Pre-mature exits may be possible. However, investors should be careful as they may have to pay a penalty for premature withdrawal. If selling over the exchange, no exit load is charged. Otherwise, it would differ from scheme to scheme. For equity schemes, it would be about 2-3 per cent. All other charges are in line with those levied for open-ended schemes.

 

What are the advantages?

As far as open-ended schemes are concerned, investors can buy units of these schemes from the fund house any time. There is no mandatory lock-in period and these can be redeemed any time. Thus, there is a constant danger of investors opting out of the scheme. As a result, fund managers have to deploy money in liquid stocks. These are typically large-cap stocks where the chances of appreciation are not huge. This disallows the fund managers to take long-term bets. Comparatively, since closed ended schemes offer limited exit options, fund managers can take long-term calls. They can take bets in mid- and small-cap space, where liquidity is not very high but scope for appreciation is.

Which of the two is better?
Open-ended schemes offer more liquidity to investors compared to close-ended ones. In emergencies, you can exit the former quite easily. That said, fund managers — by investing in mid- and small-cap space —can generate better returns with close-ended schemes. Though, this might not be happen always. This is possible only when the markets are rallying. During downturns, mid- and small-cap stocks slide first as these are high beta stocks. Open-ended schemes with liquid holdings or higher exposure to large-cap scrips will be a safer bet.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

 

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver Mutual  Funds  Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

 

Kotak Life - Child Edu Plan and Child Future Plan

Posted: 26 Jan 2013 05:23 AM PST

Tax Saving Mutual Funds Online

Invest Mutual Funds Online

Call 0 94 8300 8300 (India) 


The life insurance space saw a flurry of launches last month, targeted at children, or rather, their parents. Child plans constitute a major source of premium inflow for life insurers.


Kotak Life introduced two child plans — Child Edu Plan and Child Future Plan — last month. Both these plans fall in the category of endowment/money-back products. These products essentially offer bonuses as declared every year in addition to the basic sum assured. Unlike Ulips (unit-linked insurance plans), there is no scope for directing even a part of your premiums towards equities, limiting their (endowment products') return earning capability. On the other hand, those wishing to avoid fluctuation in returns owing to market movements can look at these products if they are convinced about the insurancecum-investment concept.

Child Edu Plan

This product is meant for parents with kids up to 10 years of age. The plan promises a guaranteed amount (a total of 125% of the basic sum assured) over a period of time to aid the child's education. The payouts — termed 'edu boosters' — will flow in at ages 15, 17, 19 and 21. The life assured (parent) will have to continue paying premium till the child turns 17. Upon completion of the policy tenure, when the child is 21, the reversionary bonus and terminal bonus (if any) will also be paid. The benefits will be payable even in the event of the parent's death or accidental disability and resultant discontinuation of premium payment. The policy will also hand over 200% of the sum assured to the nominee in case of the life assured's death.

Child Future Plan

Most features are similar to Edu plan, except that this product hands out defined benefits when the child turns 23 and 25. It comes with a fixed premium payment term of 10 years from the date of entry. The policyholder has the option of buying rider benefits like term benefit/preferred term benefit, accidental death benefit and permanent disability benefit (PDB) under both the plans. The first two promise lump-sum amount if the event occurs. In case of permanent disability due to an accident, the amount will be paid in instalments.


These products may appeal to risk averse individuals who are convinced about the merit of the insurance-cum-investment concept.


Endowment products lack transparency on charges, creating hurdles for those wanting to make a cost-benefit analysis. Besides, the lack of equity component restricts such plans' return yielding ability.

--------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

 

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver Mutual  Funds  Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Reliance Mutual Fund - Change in Fund Manager - Reliance MIP, Reliance Regular Savings Balanced and Reliance Banking Fund

Posted: 26 Jan 2013 02:21 AM PST

Invest Mutual Funds Online

Call 0 94 8300 8300 (India)
 
Reliance Mutual Fund has announced the change in the fund manager of Reliance MIP, Reliance Regular Savings Balanced and Reliance Banking Fund, with effect from April 2, 2012.

 

Now, Mr. Sanjay Parekh will manage Reliance MIP & Reliance Regular Savings Balanced along with Mr. Amit Tripathi. While Reliance Banking Fund will be managed by Mr. Sanjay Parekh & Mr. Shrey Loonker.

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1.      ICICI Prudential Tax Plan  Invest Online

2.      HDFC TaxSaver   Invest Online

3.      DSP BlackRock Tax Saver Fund   Invest Online

4.      Birla Sun Life Tax Relief '96 Invest Online

5.      Reliance Tax Saver (ELSS) Fund   Invest Online

6.      IDFC Tax Advantage (ELSS) Fund  Invest Online

7.      SBI Magnum Tax Gain Scheme 1993   Invest Online

8.      Sundaram Tax Saver   Invest Online

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

 

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver Mutual  Funds  Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Post a Comment