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 July 31, 2013
 East N.J. Offers Tips to Assist Consumers Who Purchase Auto Insurance OnlineNew Jersey Department of Banking and Insurance Commissioner Ken Kobylowski is offering tips to shoppers to help them make educated choices ... Connecticut Regulator Advises Consumers: Don't Be Fooled by Misleading AdsThe Connecticut Insurance Department on Tuesday issued an announcement urging consumers to be aware of unlicensed businesses promoting on ... USI Appoints Senior Benefits Consultant in New York OfficeUSI Insurance Services appointed Deborah Watters as senior benefits consultant. She is based in USI's New York metropolitan office. Watters ... Midwest Zurich Relocating Chicago Office to Greener Work EnvironmentZurich North America will relocate its Chicago office to a LEED-certified building in a location that accommodates its downtown-based ... New Law Means New Penalties For Minnesota ArsonistsCostly-to-fight wildfires that are intentionally set in Minnesota will soon carry tougher penalties under a new law. The enhanced arson law ... Companies Bringing Safety Technology to Grain StorageThe one sure-fire way to avoid dying in a grain bin is to stay out. That's where Scott Haugan and some high-tech wizardry come in. The Des ... Southeast Florida, Georgia Say Individual Insurance Rates to Spike Under ObamacareFlorida and Georgia, two states where politicians oppose U.S. President Barack Obama's healthcare law, said this week that insurance rates ... West Virginia Man Pleads Guilty to False Mine Safety ReportingA southern West Virginia mine foreman faces up to five years in prison after pleading guilty to falsifying safety reports at four mining ... South Central Agency Releasing Funds For Texas City's Ike RecoveryA Southeast Texas city still recovering from 2008's Hurricane Ike has access to more than $21 million in funds previously frozen in a ... Texas Has not Surveyed Injuries from Plant BlastMore than three months after a Texas fertilizer plant exploded, killing 15 people and hurting hundreds, the state still has not started ... Roach Howard Smith & Barton Adds Noble as Sales ExecutiveDerek Noble has joined Texas-based independent insurance brokerage, Roach Howard Smith & Barton, as a sales executive in its employee ... West Oregon Threatens To Decertify Workers' Comp GroupOregon insurance regulators said that they've taken the first steps toward decertifying a workers' compensation self-insurance trust and ... Las Vegas Sands Appealing $70M Nevada Jury AwardLas Vegas Sands Corp. is asking a Nevada judge to throw out a second jury verdict awarding a former consultant a $70 million settlement in ... Steak 'N Shake Sues Colorado FranchiseeSteak 'n Shake Enterprises has filed a lawsuit against a former franchisee in the Denver, Colo. market amid allegations that Denver-area ... Oregon Man Files Lawsuit Over Inversion Table TryoutA second Oregon lawsuit has been filed this month over an inverted therapy table. The tables allow people to hang upside down, strapped to ... Downgraded Flossie Leaving HawaiiThe remnants of what was Tropical Storm Flossie are currently northwest of Kauai and moving away from the islands at about 15 miles per ... Burnham Benefits Names Thomas Vice President in CaliforniaIrvine, Calif.-based Burnham Benefits Insurance Services named Bill Thomas as its newest vice president. Thomas will focus on business ... International Catlin Launches Next Seaview Survey for Caribbean, Bermuda Coral ReefsCatlin Group Limited announced the launch of its next "Seaview Survey," which it described as a "significant expansion of its study of ... Toronto Dominion Bank Warns of Insurance Losses from Weather ClaimsToronto-Dominion Bank, Canada's second-largest lender, said it will take a third-quarter charge after tax of C$418 million (US$406 million) ... World Fuel Doubts Quebec Rail Crash Cleanup Payment Order is LegalU.S. fuel logistics company World Fuel Services Corp said on Tuesday it has "serious objections" to being ordered by the Quebec government ... Allied World Launches Multinational Product InitiativeAllied World Assurance Company Holdings, AG announced the official launch of Allied WorldWideSM, which it described as "a newly created ... AXIS Capital Posts $72 Million Q2 Net Income; $50 Million OperatingBermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders for the second quarter of 2013 of $72 ... Best Places S.A.C. Re Ratings under Review/NegativeA.M. Best Co. has placed the financial strength rating of 'A-' (Excellent) and issuer credit rating of "a-" of Bermuda-based S.A.C. Re, ... Ratings Roundup: Tower Group (NZ), Grupo MexicanoA.M. Best Asia-Pacific Limited has revised the outlook to negative from stable and affirmed the financial strength rating of 'A'- ...  Insurance Journal Blogs Burand's Agency E&O Blog: Tip #41Accepting Payment After Hours. Many agencies continue to accept premium payments even when closed. Customers put their payments through ... Join the Insurance Journal Network
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New Discussions in the ForumsConstruction - Worldwide Posted: Wed Jul 31 -- I would try Chartis, Ace, Star, & RLI. I'm sure I could think of more but they would be the first to approach. Insproducer Hotels in Ca Posted: Tue Jul 30 -- CIG californiadude Need comp in ca code 5474 painting Posted: Tue Jul 30 -- Have you tried Arrowhead General? californiadude comp in ca for unarmed security firm Posted: Mon Jul 29 -- Hi Trotter! We had to market a similar account, on a smaller scale last month and we were successful! The Workers Comp portion was difficult... pnik33 Why I believe in insurance agents Posted: Sat Jul 27 -- Why don't doctors and lawyers advertise with cheesy cartoon characters? Emma Trying To Place: Public Livery Delaware Posted: Fri Jul 26 -- I have a complete application and loss runs for an account that does non-emergency medical transportation. They have been in business for 12... DIG2013 Reader CommentsDead Farmers Get Millions in Federal Crop Insurance Payouts Posted: Tue Jul 30 -- Now if the headline had been, "Dead Welfare and Food Stamp Recipients received Millions in Benefits," you know this article would be... Celtica Jury Awards Oregon Woman $18.6M Over Credit Report Posted: Mon Jul 29 -- Well deserved- the punitive verdict is necessary to act as a deterrent- Federal Law Mandated corrective action which obviously was ignored... Jack Straw U.S. Court Rejects Firm's Challenge to Obamacare Contraception Mandate Posted: Mon Jul 29 -- My Mom was in a serious car accident in 1982 and has had a total of 23 surgeries since then; many for reconstructive surgery due to injuries... Libby Maryland Court: Bars Not Liable for Patrons' Accidents Posted: Mon Jul 29 -- Wow! 17 beers and several drinks of hard liquor? I'm surprised he could even find his car, let alone start to drive. Libby Halliburton Pleads Guilty to Destroying Gulf Oil Spill Evidence Posted: Mon Jul 29 -- Trashy? Trash talk, maybe. But that doesn't mean it ain't true, Bob! Libby | Subscriber ToolsCurrent IssueJuly 22, 2013  Excess, Surplus & Specialty Markets Directory, Volume II More NewslettersMarket DirectoriesNew Insurance JobsHow to AdvertiseFor information about advertising on this newsletter and Insurance Journal magazines, contact Julie Tinney at (800) 897-9965 x148. View our Media Kit for advertising options in our magazines and online properties. Copyright © 2013 by Wells Media Group, Inc. |
Prajna Capital |
| Can you lose money in debt funds? Posted: 31 Jul 2013 05:29 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Debt, like equity, is an asset class.
And for the purpose of diversification, some amount of your investments must be in this asset class. Having said that, you definitely would have some amount of savings in fixed-return instruments like fixed deposits (FDs) or Public Provident Fund (PPF) or National Savings Certificate (NSC). So if you put money in debt funds, you should do it for specific reasons: either because the tenure of the instrument matches your need, the tax incidence is lower when compared to other fixed returns instruments or the return, in comparison, is higher.
Debt instruments imply a fixed tenure and a fixed return. In that sense, they are assured. However, once you invest in a mutual fund, other factors like interest rate movements, the fund manager's call on their direction, his trading skills and also the intrinsic quality of the portfolio play an important role. The last factor is especially crucial. The greater the magnitude of low quality paper in the portfolio, the higher the returns that the fund manager is in a position to generate. For instance, one could broadly say that the difference between AAA and AA rated paper could vary from 25 to 50bps (100 bps = 1%). Unfortunately, it's not that simple. Let's talk about paper from companies in different industries. The difference in AAA Manufacturing and AA Manufacturing would be 25bps (the lower rated paper giving the slightly higher return despite both being from the same industry). If the industries change to AAA Manufacturing and AA NBFC, the difference could be 1-1.5 per cent. On the other hand, if it was AAA NBFC but AA Manufacturing, the latter would still offer a lower return and the difference could be around -75bps.
In extreme scenarios, the difference between a AAA Manufacturing and AA Real Estate would be around 5-6 percentage points. But if the paper was BBB Real Estate (theoretically speaking), it would give around 12-15 percentage points higher than what a AAA Manufacturing paper would offer. So if a fund is offering fabulous returns, there could be a compromise here. And compromises always leave you vulnerable.
Even if fund managers pack their portfolios with high rated paper, there is the interest rate risk if they get their call wrong. This is all the more prevalent in funds of longer tenure. For instance, let's assume that Bond A has a coupon rate of 8 per cent. Now let's say there is an increase in interest rates and Bond B has been issued with a coupon rate of 9 per cent. Now the price of Bond A will fall (since it is offering a lower interest rate) as the yield of Bond A will adjust higher (since bond yields and prices are inversely related). Consequently, debt funds that hold Bond A will be impacted. If there are many such bonds in the portfolio, the cumulative impact on the NAV would be negative.
While at any given point of time, all these risks exist, there are different phases in the interest rate cycle and in the debt market history where different risks have been played out more prominently. During the period from 1997 right through 2003, huge money was made on interest rates because during this period rates came down from 14 per cent to 5 per cent (10-year yields). From then on till 2008, money was made by taking credit risks when BBB rated companies were borrowing at 14-15 per cent. In 2008, it was liquidity risk that took centre stage, though credit risk was also prominent.
Mid-2009, credit opportunities (crop) funds began to catch the fancy of investors when yield spreads (difference in yields between benchmark sovereign paper and corporate bonds) widened to up to 200-300bps. The credit market presented an attractive risk-return profile as even good companies found it difficult to raise debt. Such funds are designed for risk-taking investors since they invest in high-return, low-rated paper. In such funds, the credit risk and liquidity risk run high.
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 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 )
------------------ Best Performing Mutual Funds
|
| Kotak Equity Arbitrage Fund to accept fresh subscription Posted: 31 Jul 2013 04:13 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Kotak Mutual fund announced to accept fresh applications for subscription of units, SIP, STP and switch ins in Kotak Equity Arbitrage Fund from July 22, 2013. Also, the cap on investment amount for fresh purchases by on a single day has been revised to a maximum of Rs 1 crore effective July 22, 2013.
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 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 )
------------------ Best Performing Mutual Funds
|
| Checklist for Filing IT Returns Posted: 31 Jul 2013 02:19 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
The time for filing of income tax returns is nearing and individuals need to be careful about the various details related to this area. There has to be the correct decisions at this stage so that the entire process is completed smoothly.
It is essential that every individual pays attention to a few factors that are involved in the return filing work so that the end result is proper. Here are a few things that need to be paid attention to in the entire work.
Return Form
The entire work starts with the selection of the return form by the individual. This by itself is a slightly complicated process because the return form selection depends upon the nature of the income earned by the individual.
Thus there could be a situation wherein the return form would change between two years because the nature of the income has changed. Getting and filling in the right return is absolutely necessary otherwise the return would not be considered valid. This first step can prove to be an important part of the process so adequate attention is required here.
Permanent Account Number
The entire working and dealing with the income tax department for the individual for all their tax matter depends only upon a single factor. This is the Permanent Account Number (PAN) and every linkage of the tax details has to be with this specific number.
Thus when you go and file your tax return, the PAN has to be correctly mentioned so that the details therein can be verified. Even before you get to this stage there is the use of PAN as your tax deducted at source will be linked to this number. It is the PAN that is the single factor that keeps various details together enabling the tax authorities to complete their assessment work.
Bank account
Every income tax return now also requires the bank account for the purpose of ensuring that any payment that is to be made to the individual would directly go into this account.
It is not just the bank account that is required in the tax return because the ISFC code, MICR code and branch and branch address ensures that the details are given properly and that this is of the right person.
The bank details assumes the highest importance in case of refunds as the amount need not be given in the form of a cheque that can take a lot of time to come but can be directly credited to the account.
Correct figures
The next part comes with the entry of the right numbers in the income tax return. All the details related to the income have to be seen carefully and then entered into the income tax return.
There are consequences of getting the figures wrong as the entire return would not be considered proper and there would have to be a revised return filed with the rectified figures.
The better alternative would be to take adequate care right at the time of entering and dealing with the calculations at the initial stage so that any mistakes are eliminated right here.
Tax payments
One area that has to be at the forefront of all activities is the amount and manner of the various tax payments that have been made over the year.
There would be several means through which this might have been made and this would include tax deducted at source, advance tax and at the time of filing the income tax return even self assessment tax.
All these need to be considered and seen as to whether they have been made properly so that the right amount of credit is reflected in the account of the tax payer so that there are no problems at the time of assessment.
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 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 )
------------------ Best Performing Mutual Funds
|
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