HappinessWala

Wednesday, February 16, 2011

UTI Fixed Maturity Plan

We saw a review of FMPs and here's an announcement

UTI MF announced the launch of UTI Fixed Maturity Plan - Yearly Series - February 2011 (YFMP 02 / 11) and the details are as given below:

UTI Fixed Maturity Plan - YFMP (02 / 11)

Launch Date/Specified Transaction Date (in case of interval fund)	Last Date	Maturity Date	Minimum Amount	Entry Load
16-Feb-2011	21-Feb-2011	March 23, 2012	10,000 (Retail) 1 Cr (Institutional)	Nil

Who should Invest?

	For all class of investors i.e. Corporates , HNIs , MNIs & Retail who have a pre decided investment horizon. - As a prudent investor one needs to have a proper asset allocation in place and FMPs offer that much-needed stability to the investment portfolio. - Thus, even aggressive investors who normally prefer equity investments should invest a part of their corpus in FMPs.
	Investors who are not satisified with the returns from conventional fixed income avenues
	FMPs are ideal for - Risk-averse investors who seek safe avenues for investment and in the process keep money in the form of bank deposits - Investors who want to park money for a fixed period of time with a view to meeting certain financial goals in near future

The Tax Angle

In the case of FMPs the return can be in the form of dividend or
capital appreciation depending upon the option of the investor
- Dividend is tax free in the hands of the investor while the fund
   has to incur a Dividend Distribution Tax
- In the case of investments for more than a year and under
   growth option, long-term capital gains tax at 11.33% (without
   indexation benefit) and 22.66% (with indexation benefit) is applicable

Ranjan Varma
Blog; Website; Software

Posted via email from Ranjan's posterous

Tuesday, November 23, 2010

Popular Investment Myths Debunked

Making an investment is the best way to save the money an also to grow it securely. But most of the people do not invest their money due to some myths o they try to postpone it. Here are some of the popular myths for investments which should be exposed now.

1. Investing in fixed deposits

Are you among those people who think that fixed deposits are among the safest and best investment options. Well, you are right but only partially. Fixed deposits give you fixed return but that is not the best investment option. You actually lose the purchasing power of the money during inflation term.

2. Only experts can handle investments

Well, if you are among those who believe that only experts can handle the investments properly, you are wrong. It is your money and you know how to handle it. Just invest carefully and keep a track on your money, rest everything will be fine.

3. Too early to plan retirement

When a youngster gets a job and he starts earning, he plans to spend the money for his needs and sometimes for some luxuries. Very few youngsters plan to save money right from the initial days of their job. And from these few youngsters, there would be hardly any who would plan to invest it. Most of them think that it is good to deposit the money in the bank and save it for any need but rarely anyone would plan to grow it. If someone asks you to invest your money for your retirement, you would wonder as there is a lot of time for your retirement. But if you think practically and wisely, you would realize that this is the right time when you should start investing for your retirement so that you may have enough money to fulfill your and your family’s need after your retirement.

4. Stock markets are the best place to invest

You can only earn through stocks if you are patient and calm. This is a long term procedure and you need to invest your money for a long period. Also it is important to keep an eye on the stock market.

5. Working only with timing

Most of the people think that they should purchase stock when the market is low and should sell tem when it is high to gain profits. Reality is that this is not the only factor which affects the price of the stock and so you should be careful.

6. Diversification of funds

Diversification of funds is important while investing in mutual funds and stocks. But if you are investing in more than required, then you are losing your money as you are actually investing on average stocks which will not give you good returns.

7. Investing in the latest option

It is advised not to follow the crowd for investments. Pick your investment plan carefully after doing appropriate research on various plans so that you may not lose your money.

8. Investment made for saving tax

If your only objective for making investment is to save tax, you are certainly doing a wrong thing. Plan your investment carefully without considering if you would get any rebate or not on that investment.

Author Bio:

The author holds a sound knowledge on investment in mutual funds. You can go through his articles which are written to guide you with the best possible way.

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Tuesday, September 7, 2010

Planning For Ups And Downs In Your Monthly Income

Source: Business Standard , Sept. 7, 2010

Professionals with erratic incomes need to make lump sum decisions in terms of buying insurance and investing. Two years ago, Suneer Chowdhary gave up his job as an analyst at Accenture to pursue his passion for cricket. Now, he freelances as a sports writer for websites.

For event photographer Veena Gokhale, the busiest time of the year is during the marriage and festive season. Actors, photographers and writers may belong to different fields but share a lot in terms of uncertain working hours and incomes.

There is a constant pressure of not receiving pay cheques at the end of each month. Says Chowdhary, “Somewhere at the back of your mind, the thought persists...what if I don’t get enough assignments next month?”

Such uncertainty calls for a lot of financial maneuvering if short- and long-term goals are to be met. Financial planner Suresh Sadagopan, says, “People with irregular incomes need to start at the very outset.”

Fact 1: A drop in income for no apparent reason
Planning for such a situation should be an integral part of your back-up plan. Television actor Vibhuti Thakur learned this the hard way. “Several times I have shot but not been paid as one get payments for only the telecast episodes. This taught me to spend only after cash is deposited in my bank account.”

Using those erratic income streams is key.

Buy medical insurance: It must be at least Rs 5 lakh for an adult and Rs 3 lakh for a child.

Buy life insurance: Opt for pure term plans. A one-time premium option can be a good idea when you have enough cash.

Have an emergency kitty: Keep aside cash equivalent to at least six-nine months expenses. This serves as a cushion for an extended lean period.

Fact 2: Lower savings, as meeting the requirements at hand takes priority over saving for the future
For instance, most of Gokhale’s income is spent on buying latest photographic equipment and on her teenage son’s growing demands. Financial planners advise investing and saving in instruments or funds that can be accessed quickly in times of need.

Fixed deposits and debt funds: Both can be accessed at a short notice. Even the sweep-in option offered by banks for a savings bank account can earn you an interest. This facility puts money from your account into a short-term fixed deposit and puts the money back into your account if there is a deficit when you have issued a cheque.

Opt for a systematic transfer plan (STP): Invest lump sums in liquid or liquid-plus schemes, and move the money over time, say six or 12 months. Investing in lump sum will ensure that the money in your hands does not get spent.

Fact 3: Fear about the future of your dependents and building a retirement corpus
Gokhale knows buying a new house will mean working for many more years. “Though I am not the only earning member of my family, I may have to keep working till my son grows up and starts earning”, she says. Planners suggest retiring current liabilities before building a corpus for the future.

Opt for foreclosures: When you get paid for an assignment, ensure you settle your existing loans, even if they are expensive. For instance, despite the fee of 1.5-2 per cent, it is advisable to retire home, car and personal loans as soon as possible.

Public Provident Fund: It is a good investment option to build a corpus for the future. It gives eight per cent after-tax returns, and investment options stretch from a maximum of Rs 70,000 to a minimum of Rs 500 a year, per individual.

Pension schemes: Besides insurance and mutual funds offering pension plans, the New Pension Scheme can also be looked at to collect a corpus for the golden years