Saturday, 30 October 2010
What should we insured?
The first and foremost thing we should know our insurance needs. All countries have some guidelines and also require some minimum basic insurance requirements. One main thing is that the insurance against body injuries and damage while an accident taken place and the second one is property damage insurance. But these two things do not cover all damages and claims. So you have to know more details about the insurance. In some countries there are so many classifications of damage and you must be aware that what should be insured and what not. I personally know one case that in United States, one of my friends, recently migrated to United States, purchased a second hand car with $ 3000 and taken insurance and all. But unfortunately the car collided with another car came from opposite side. He spends around $3000 (almost same amount he paid for the car) to repair, but then only he came to know that his insurance was not covered for collision. He didn’t get any claim for the car. So we must be well aware about the insurance cover as well as the premium we should pay.
Aware the discount we could get for car or auto insurance.
Almost all car insurance companies offer a lot of discounts for car insurance or auto insurance. The important items are multiple car discount, group discount, good grades discount, company discounts, low mileage discount, no claim bonus, multiple policy benefit, discount for safety fittings, discount for safe and expert driving, student discount, discount for senior citizens and retired persons, discount for vehicles using for public utilities, discount for new vehicles etc. etc. Most insurance companies are not disclosing these discounts unless we ask for the same. So be aware about these discounts and try to get maximum discount for your car insurance or auto insurance.
Choosing the right insurance company
Another important thing is that choose the right insurance company to get insured your vehicle. Ask the performance and details of the company, time and procedures for booking and getting a claim etc. If you search online, ask your friends or discuss the matter in an online forum, you can know the cheapest quotes and also can be aware the performance of the company. I mean dealings before and after insure your vehicle. Some companies are very attractive to insure our vehicles and when the claim comes they may be very strict and may arise so many problems. So get aware about the company before being insured.
Get the cheapest insurance quote with high protection
This is one the main thing to reduce the premium that gets insurance quotes from different companies before being committed. Just search online for cheapest auto insurance quotes or car insurance quotes and you can get a lot of them. Choose some of them from your area and make bargain and you can fix a good deal within no time.
In this consumer dominated era you can save a lot of money for your insurance premium and also from the insurance claims, if there is any misshapenness occurred.
In July 2010 it was 11.25 %. This Consumer Price Index is calculated on the basis of the index price in 2001 is 100 and In August 2010 it was 9.88%. This index rate is calculated on the basis of the price difference of essential things like Rice, Wheat Atta, Mustard Oil, Chillies , Clothing, Turmeric powder, vegetable, fish etc. etc.
The Indices in respect of the six major centers are as follows
Ahmadabad - 176
Bangalore - 185
Chennai - 162
Delhi - 169
Kolkata - 176
Mumbai - 178
The difference in consumer price index influences the cost of living. So the Dearness allowance etc. is caculated witht he difference of price index. Dearness allowance (July and January) is calcuated on the basis of avearges consumer price index for the last six months.
Thursday, 28 October 2010
At the time of Launching, the Chief Distribution Officer, ING Life Insurance, said that he is very much glad to announce this ULIP and this unique product gives their customers a complete control over their investment for wealth accumulation, and is priced very competitively. There are five different fund options and one can switch over to any option free of charge.
Minimum and Maximum Annual Premium
The annual premium ranging from 48,000 to 96,000 and the customers can choose to pay on an Annual, Half-yearly, Quarterly or Monthly mode.
The Plan offers a sum assured of 10 times of the annual premium at the inception for the customers those who are not completed the age of 45 years and 7 time of the annual premium for the customers those who are above 45 years.
The five fund options offered by the scheme are ING Prime Equity, Growth Fund, Balanced Fund, Secure Fund and ING Preserver.
Through Automatic Asset Allocation strategy the customer can allocate the asset between debt and equity and can avoid the daily monitoring of funds.
Free partial withdrawals up to 25% of the fund after completing 5 years are allowed and free unlimited switchover between fund options.
The premium paying term can be opted to the entire policy term or half of the policy term.
For those who are interested to invest in financial market and at the same time wish to get a life coverage this may be a good option. The recent guidelines of IRDA makes ULIP more attractive to investors. But when you invest in any financial instruments or with any financial institution study and analyze the performance and also remember that the past performance may not be reflected in future.
The 50% of the arrears will be arranged by the state government and the remaining 50% is supposed to fund by the central government. The arrears will be deposited in GPF and employees can withdraw the amount after certain lock in periods. Different lock in period has been decided for different class of employees.
Class IV employees can withdraw the money in 4 equal installments of in the next four years. Class III employees can withdraw money in five equal installments during the next five years. And class II and Class I employees can withdraw money in six equal yearly installments.
For pensioners the arrears will be given by cash and they will be grouped according to their age. For those who are 80 or above the arrears will be released in three installments and those who are in the category of 70 to 80 in four installments and the pensioners in 65 to 70 group can withdraw in five installments and others who are in the age group of 58 to 70 can withdraw the arrears in six installments.
The payment of arrears was one of the major demands of the nearly five lakh state government employees, who had gone on strike several times over the past two years. Even if it is in installments, the money will be deposited in GPF account the employees can earn interest as per the GPF rules.
Wednesday, 27 October 2010
The brand names and popularity may not lead to profit for the shares of such companies. In case of IPOs the brand name and trade mark of the company may overvalued the IPO and the investors will invest more money in the same and after listing, the performance of the shares may come down normally, if there is no a good support by the performance of the business.
The famous investment guru Warren Buffett says that “an investor needs to buy the stock as if he is buying the whole company down the road”. When you buy a company you will study all aspects of the company like the product of the company, consistency of the sale of product, whether the company is able to change according to the changing taste of the consumer, the competitors of the company and the specialty of the company apart from competitors, risk factors of the company etc. When you wish to purchase a few shares of a company you must be careful as if you are going to buy the company.
If you are vigilant when buying shares, you must not be worry when you sell the shares of that company. No doubt you will get a definite profit.
Let us conclude by remembering another quote of Warren Buffett “If a business does well, the stock eventually follows.”- So follow only good and stable stocks of stable companies. The success also follows you.
Tuesday, 26 October 2010
What is Post Office Time Deposit?
It is an account one can open with a post office with a onetime deposit of any amount of Rs. 200 or multiples of Rs. 200 for a certain period of time. It is just like fixed deposit in Banks.
Time Period of POTD
The time period of Post office Time deposit is 1 year, 2 years, 3 years and 5 years.
Who can open a POTD?
Any resident Indian who is at the age of 10 or more can open and operate a post office time deposit directly. Joint account also can be opened. A minor also can operate an account through guardian. Nonresident Indian and HUF cannot open a post office time deposit account. Nomination facility is also available.
Minimum and Maximum deposit
Minimum deposit amount should be Rs. 200 and multiples of Rs. 200 can be deposited in Post office time deposit. There is no maximum limit in this account. And a person can open any number of accounts.
Rate of Interest and Payment of interest
Interest of this deposit is according to the time period of deposit and calculate quarterly, but payable only annually as per the following rate of interest.
Time Rate of Interest
1 year - 6.25%
2 years - 6.50%
3 years - 7.25%
5 years - 7.5%
Withdrawals and Premature closing of POTD
Withdrawal of Post office time deposit is not permitted before 6 months. The withdrawal after six months and before one year will not get any interest. You can withdraw the deposit after one year, if it is made for 2years, 3years or 5years with a rebate of 2% from the interest applicable to the period of the deposit kept live. For example, if you deposit for 2 years and withdraw after one year, you will get only an interest of 4.35 (2% less for the interest applicable for one year). The account can be reinvested after maturity as per the direction of the depositor.
Income Tax Benefit
Only Post office Time Deposit for five years gets Income Tax Exemption under section 80 C of Income Tax Act. But if the time period is less than 5 years will not get any tax exemption. The interest received from this account is taxable. But there is not TDS deducted at the source. Deposits are exempt from wealth Tax. If the deposit is opened jointly only the first holder will get tax exemption.
Post office time deposit is a safe deposit just like other fixed deposits in banks. But the advantages of this deposit is that we can operate this account from anywhere in India even from rural areas where there is not banking facility and can be transferred from any post office to other.
Sunday, 24 October 2010
L&T Infra issues long term Infrastructure bond from 15th October, 2010 to 2nd November, 2010. This is also same as earlier infrastructure bonds and suitable for getting tax exemption under section 80CCF. Under Section 80CCF, one can invest in permissible infrastructure bonds and get an additional exemption of Rs. 20000.
Buy Back Option and Maturity option
Similar to the previous long term infrastructure bond issues L &T issue will also have a maturity period of 10 years and a lock in period of 5 years. This issue will also have 4 options but little different than IDFC issue.
For Ten years bond there is an 8% interest in cumulative and noncumulative option.
But Buy back option will be available two times once after 5 years and after 7 years. Buy back option after 5 years with annual interest payment, Buy back option after 5 years with cumulative interest, Buy back option after 7 years with annual interest payment and buy back after 7 years with cumulative interest. But the interest rate has a slight difference for 5 years and 7 years. For 5 years the interest rate is 7.5% and for 7 years it is 7.75%. For annual interest payment the interest will be credited in your bank account directly.
Face value of each bond is Rs. 1000. ICRA has assigned a credit rating of LAA+ and CARE has assigned CARE AA+ ratings to the issue, which indicates a stable outlook.
Demat account is not compulsory
You can approach State Bank of India, HDFC Bank Limited, IDBI Bank Limited, ICICI Bank Limited, ING Vysya Bank Limited, Axis Bank Limed, DBS Bank Limited and HSBC Bank for applying the Infrastructure bond. Through these banks you can buy this infrastructure bond in physical form. For purchasing in physical form there is no need to have a demat account. The main advantage of this bond is that demat account is not compulsory for purchasing L&T Infrastructure bond.
If you have an online trading account with Kotak Securities Limited, SHCIL Services Limited, RR Equity Brokers Private Limited, IDBI Capital Market, Services Limited, Anand Rathi Share & Stock Brokers Limited, SMC Global Securities Limited, A. K. Stockmart (P) Limited, HDFC Securities Limited, Reliance Securities Limited, Enam Securities Private Limited, Standard Chartered-STCI capital Markets Limited, Edelweiss Securities Limited, Almondz Global Securities Limited and Eastern Financiers Limited you can apply for the issue online the bonds once allotted will be credited to your demat account in dematerialized form.
According to your tax slab you will get an exemption of tax amount of Rs. 2060, Rs. 4120 & 6180 respectively for the tax slabs of 10%, 20% and 30% for the deposit of Rs. 20000 in this infrastructure bond.
This is a good option for tax savings and better for 20% and 30% tax brackets and facility of deposit without a demat account is eliminating the main disadvantages of bonds under section 80ccf.
Saturday, 23 October 2010
You can take a secured loan by pledging gold in any form such as gold coin or gold ornaments. Different banks allow different sum of loan against the value of gold you are pledging. You have to submit identity proof and address proof with the gold and banks are allowed loan within one hour. Some banks take one working day to complete the paper work and sanction the loan. Normally no EMI payment is necessary for this loan and the loan will be sanctioned without considering the credit history of the borrower. Only a minimum documentation is required for gold loan. The interest rate varies from bank to bank and the minimum interest is around 9% per annum and the interest is calculated on reducing balance only. When you go for a gold loan better to take it from nationalized banks, scheduled banks or form Co-operative banks because the interest rate is comparatively low in these banks than other financial institutions.
LAP or Loan against Property
If you have a freehold residential property or commercial property without any dispute or any liability over it, you can take loan against that property. You have to submit the documents of the property, identity proof, residence proof, and proof of signature, age, and income and bank statements for getting this loan. But the time period of sanction the loan is comparatively high. It may take around 15 days to sanction the loan after verification of the property and documents. Interest rate may be quiet high than gold loan and the amount of loan depends upon the value of property and the income of the borrower. Pre-closure of loan, partial repayment, increasing loan amount and refinancing are also possible as per the terms of the financial institution.
Top up loan
This is also a possible low expense loan from the financial institution where you already have a housing loan or mortgage loan. Read more about Top up loan
Loan against NSC, KVP and Fixed Deposit
You can take loan against all financial instruments such as NSC (National Savings Certificate), KVP (Kissan Vikas Patra), Fixed Deposits etc. For getting loan you have to pledge the certificate with your residence proof and identity. Only the owner of the certificate can take loan against such financial instruments and the loan may be sanctioned within one or two days. The interest rate will be 4% to 5% more that the interest rate of NSC or KVP and in case of fixed deposits it will be 2% more that the rate of Fixed Deposits. The loan amount may be varied according to the time period of the instrument and the years completed after purchasing the instrument. Minimum documentation and the loan should be pay off before the maturity of the instrument. Unless the bank will collect the maturity value and settle the loan. You can payoff in EMIs also.
Loan by Pledging Shares and Mutual Funds
You can take loan against the fully paid up shares of Companies and the units of reputed Open ended mutual funds. Only individuals can take this loan. Banks allow loans only for the shares which are in their approved list. You have to submit the Proofs of identity, signature and address, Transfer Deeds, Demat Pledge Forms, and Power of Attorney. Some banks require the borrower to transfer the shares in the name of the bank. Loan will be sanctioned only after the verification of shares and documents and it takes around one or two weeks to sanction the loan. The main advantage is that you can have money without selling of the shares and the shares can keep for long term.
Loan from your Life Insurance Policy
You can take loan against your life insurance policy from the insurance company or any banks. Interest rate is very low and at present it is around 9% per annum. Within one or two days the loan will be sanctioned and the loan amount depends upon the surrender value of the policy and the policy with endowment nature is suitable for pledging. The original policy document should be submitted for loan and it will be kept by the institution till the loan payment is over.
Loan aginst PPF (Public Provident Fund)
Normally you can withdraw money form PPF only after the 6th year of starting the PPF. But you can take loan from PPF after 3 years and and the tennure of laon is only for 2 years and you have to pay 2% more interest for this loan. After paying off the loan you can take another loan also up to 6th year of the commencement of PPF. Minimum documentation and within one day you can get the loan.
Your investments are not only for getting income or profit but for availing loans in emergencies. If your requirement is only for a short period, better go for these loans and keep the investment intact.
Friday, 22 October 2010
Maturity Benefit and Death Benefit
On maturity the policy holder gets an amount equal to his/her fund value. The nominee shall receive the higher of Sum assured under the basic plan and the policy holder’s Fund value as at the date of booking the liability at the death of the policy holder. You can avail accident benefit as optional rider by paying Rs.0.50 for every Rs. 1000/- But the for accident rider the minimum sum assured is Rs. 25000 and maximum sum assured for accident cover is Rs. 50, 00,000 (This maximum cover including all accidental cover of the insurer with LIC and other insurance companies includes personal and group insurance schemes)
The policy is available in for schemes named Bond Fund, Secured Fund, Balanced Fund and Growth Fund. You can choose any of the schemes as per the risk you can bear.
Minimum and Maximum Premium and mode of payment
Premium can be paid monthly on ECS, half yearly or yearly and a minimum yearly premium is Rs. 20000 or Rs. 1750 on monthly ECS mode. You can pay a single premium also by a minimum onetime payment of Rs. 30000. The Maximum regular premium is Rs. 100000 per year and there is no maximum limit for the single premium mode. In Annual premium mode the premium can be multiple of Rs. 1000 and in monthly ECS mode it the multiple of Rs. 250.
Minimum and maximum age of entry and Term of policy
One can join with the scheme if he or she completed 7 years of age and the maximum age of entry is 70 years. Policy term is 10 years to 20 years and the minimum maturity age is 18 years and the maximum maturity age is 70 years.
Fund Switching, Partial withdrawal and Loan
You can switch over the Fund 4 times within the policy year without any additional charge. No Top up premium is allowed. A policy holder can make partial withdrawal after the fifth year of the policy, but there should not be any dues payment of premium. Loan also can be taken after the third year of policy, only if there is no any dues payment of premium, up to 30% of the fund value and not partial withdrawal is allowed during the loan period. If the fund value is less than or equal to loan outstanding, the policy will be terminated compulsorily. The rate of interest of loan is determined by the LIC time to time and at present it is 9% per year and can be paid half yearly.
- Axis Mutual Fund launched Gold Exchange Traded Fund
- Top Up Loans are Useful For Emergency
- Post Offices to Sell Insurance Products
Note/Disclaimer: This website is just meant for information purpose and it is NOT an official LIC website. For official LIC website, please visit www.licindia.com . Readers are requested not to entirely rely on information available on this website without independent verification of the same and www.investmentsandmoney.com or anyone related to this site will not responsible for any accuracy of the information.
Thursday, 21 October 2010
Axis Mutual Fund launched a Gold Exchange Traded Fund yesterday 20th October, 2010 in the name of Axis Gold ETF. This is an open ended Gold ETF (one can redeem or purchase the fund whenever he/she wishes to do so) Domestic price of gold will be the benchmark for the scheme. It seems as an effective investment instrument to diversify the portfolio.
Opening Date of NFO
One can purchase the Axis Mutual Fund launched a Gold Exchange Traded Fund with a price of Rs. 10 per unit from 20th October, 2010 to 03rd November, 2010.
For a retail investor the minimum application amount at the time New Fund Offer is Rs. 5000 and multiples of Re. 1 thereafter. After the NFO period units of the scheme will be listed on the National Stock Exchange and can be traded like equity shares.
The schemes performance will be benchmarked against Domestic Price of Gold.
Wednesday, 20 October 2010
The top up loan is allowed on behalf of your existing loan and the property which is mortgaged is considered as collateral security. So the loan over the property will be more and you have to pay more for repaying the existing loan and top up loan. The eligibility of getting a top up loan is varying from one financial institution to another. It is according to the time period of loan you have taken, the installments you have been paid off and the punctuality of your payments etc.
You must be aware that the top up loan increases your liability and the property you have already pledged will be more risk. But for emergency situation it is useful that any other loan. Because it is easy to get, so that you already have a loan account with them and also have a collateral security is there, so the documents needed and paper work required for the loan will be very less. The interest rate also will be less than any other unsecured loan.
My opinion is that only in emergency condition go for a loan and if you already have a secured loan ask for a Top up loan.
Tuesday, 19 October 2010
Indian postal service has 22 circles and 155,333 post offices all over India. Each circle can act as Separate Units and can work as independent Corporate Agent and will get independent Corporate Agent License with various insurance Companies.
IRDA permitted each circle to tie up with two non life insurance companies, two life insurance companies, one agricultural insurance company and one stand alone Health insurance company for this purpose. So each circle can act as an agent of 5 various insurance companies for various insurance activities.
However the Head office of India Post will not engage in the distribution of insurance products of any insurance company registered with IRDA in any other capacity.
This is a good movement and our Post offices will help to spread the insurance products and the service of insurance companies to villages as well as urban areas. With this movement poor people also can achieve the benefit insurance products. We can expect the notifications of post offices that your life and your belongings are secure in our hands.
Monday, 18 October 2010
Delhi High Court has ruled that a Government employees cannot be denied the opportunity to appeal against adverse Annual Confidential Reports (ACRs), on the grounds that such reports would not be ignored while considering them for promotion.
This was against the Central Administrative Tribunal’s (CAT) directive to a departmental promotion committee to ignore the adverse ACRs of five Indian Revenue Service (IRS) officers while considering them for promotion.
The CAT wanted the adverse ACRs to be ignored, as they were not communicated to the officers in question at the relevant time. Some of the ACRs were three years old at the time of holding the committee and could not be taken into account in view of the May 11, 1990, Memorandum of the Department of Personnel and Training (DoPT). The CAT said there was no point in making any representation in view of the retirement of reporting and reviewing officers.
However, after analysing the Supreme Court judgments in the cases of UP Jal Nigam, Dev Dutt and Avijit Ghosh Dastidar, the HC said: “The question of ignoring adverse ACRs instead of giving a chance of making representation does not arise.”
The Bench said, “All ACRs are to be communicated to the incumbent.”
It said in the case of ACRs being below the benchmark, the affected person could make a representation that would be considered by the relevant authorit, which would be superior to the authority, which gave the adverse ACR.
The high court said the May 11, 1990 DoPT Memorandum, was issued before the recent SC rulings. A new memorandum has already been issued on April 13, 2010, which made it mandatory to communicate to the employee an adverse ACR.
Coutesy : Staffcorner.com
According to the performance of Open Ended Mutual Funds in all categories, the following mutual funds came in top ranks. Just see the list and NAV of such mutual funds
1.Birla Sun Life Commodity Equities Fund - Gbl Agri - Retail - Growth performed well with an NAV of Rs. 16.42 on 15th October, 2010. The last week itself it has an increase of 6.46% and the overall performance since inception (Inception Date, Nov 7, 2008) of the scheme is 29.19 %.
2. DWS Global Agribusiness Offshore Fund - Growth is the second one with an NAV of Rs. 11.28 in the last week on 14th October, 2010 with 5.62% growth and the overall performance since inception (Inception Date, May 13, 2010) is 33.04%.
3. Mirae Asset China Advantage Fund - Regular - Growth is in third rank with an NAV of Rs. 11.10 on 15th October, 2010 with 3.8% growth and the overall performance since inception (Inception Date, Nov 5, 2009) is 11.70%.
4. DSP BlackRock World Mining Fund - Regular - Growth is in fourth rank with an NAV of Rs. 11.07 on 15th October, 2010 with 3.67% growth and the overall performance since inception (Inception Date, Dec 29, 2009) is 14.63%.
5. Birla Sun Life Commodity Equities Fund - Gbl Multi Comm - Retail - Growth is in fifth rank with an NAV of Rs. 13.39 on 15th October, 2010 with 3.64% growth and the overall performance since inception (Inception Date, Nov 7, 2008) is 14.63%.
- Half Gram Gold Coin Free For the Purchase of 10 Gram Gold Coin from Post Office
- Coal India Limited Issues IPO
- IDFC Infrastructure Bond Extended the Closing date
Note/Disclaimer: This website is just meant for information purpose. Readers are requested not to entirely rely on information available on this website without independent verification of the same and www.investmentsandmoney.com or anyone related to this site will not responsible for any accuracy of the information.
Sunday, 17 October 2010
Indian postal service started so many useful services to general public in addition to the postal related services. It is one of the responsible public services in India. They started small saving services, banking and so many other services. Apart from all these services they started to sell pure gold in association with World Gold Council and Reliance Money Limited with the denominations of 0.5 g, 1 g, 5 g, 8 g and 10 g etc. The gold coins will be packed in a sealed cover with the certification from Valcambi, Switzerland. First they started with selected 102 Post Offices in Delhi, Maharashtra, Gujarat and Tamil Nadu Circles. And they expanded the service later. Now they offer this service from around 700 post offices covering North East, Jammu &Kashmir, Himachal Pradesh, Orissa, Tamil Nadu, Andhra Pradesh and Gujarat etc.
This special offer is really interesting and beneficial offer to the investors. They will get 10.5 gram pure 14 carat gold coins in the value of 10 gram gold. No doubt the people of India accept this offer whole heartedly. This Offer is valid up to 31st December, 2010.
For more information and for the availability of this offer, please visit any head post office in your area.
Friday, 15 October 2010
The Compnay produces non-coking coal and coking coal in different grades for various applications. The production is around 431 million tons in 2010. It is a schedule ‘A’ ‘Navaratna’ Public Sector Undertaking under Ministry of Coal, Government of India. The Head Quarters of CIL is in Kolkata, West Bengal.
As of March 31, 2010, Coal India operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines (includes both open cast and underground mines). They also operated 17 coal beneficiation facilities with an aggregate designed feedstock capacity of 39.40 million tons per annum. Company intends to develop an additional 20 coal beneficiation facilities with an aggregate additional proposed feedstock capacity of 111.10 million tons per annum. Besides this, they provided 85 hospitals and 424 dispensaries.
The Indian Institute of Coal Management (IICM) operates under CIL and imparts multi disciplinary management development programs executives.
Coal India's major consumers are the power and steel sectors. Others include cement, fertilizer, brick kilns etc.
Issue Detail of CIL IPO
Date of Issue
Issue opens from 18th October, 2010 to 21st October, 2010 as 100% Book Built Issue IPO. If you need to apply for the IPO it should be on or between these dates.
100% Book Built Issue IPO
IPOs may be Book-built IPOs or Fixed Price IPOs. In a book- built IPO, IPOs invited bids with a price range. A minimum price range and a maximum price range will be there and the investor can bid as per his decision. But in Fixed Price IPOs the price is fixed at the time of issue. Here Coal India Limited offer the IPO with a price range of Rs. 225 to Rs. 245 per equity shares.
Face Value of Equity Share
The face value is Rs. 10 per equity shares.
Number of equity shares is
Minimum order quantity
Minimum order quantity is 25 shares and listing at BSE and NSE
Note/Disclaimer: This website is just meant for information purpose and it is NOT an official website of Coal India Limited. For more details please refer dtailed notification from Coal India Limited. Readers are requested not to entirely rely on information available on this website without independent verification of the same and www.investmentsandmoney.com or anyone related to this site will not responsible for any accuracy of the information.
Now the investors have 4 more days to take their decision to invest in this infrastructure bond and this bond allows an additional income tax exemption for the investment of Rs. 20000 under section 80CCF of income tax rule. The main disadvantage of this type of infrastructure bonds under Sec 80CCF is that it can be purchased only through a demat account. It makes some inconveniences to common man.
See our earlier post
Infrastructure Bond for Additional Rs. 20000 exemption under section 80CCF
Thursday, 14 October 2010
The loan is allowed for all courses including Graduation, Post Graduation, Professional courses and other courses approved by UGC, Government or AICTE, which has an employment prospects.
The Loan is allowed for the expenses such as fees payable to college, school or hostel, for purchasing Books, Uniform and other study materials, security deposits and other refundable deposits, building fund, travel expenses and passage money for studying abroad The loan is also allowed for Computers (if necessary for study) and for two wheeler (maximum Rs. 50000) and for refundable deposit the limit is up to 10% of the tuition fee, and any other expenses required to complete the course like study tours, project work etc.
The Maximum amount allowed as loan is Rs. 10 lakhs if the study is in India and Rs. 20 Lakhs for studying outside India.
There is no processing fee or upfront charges for the loan, but a deposit of Rs. 5000 is required for the loan for studying abroad and the amount will be adjusted with margin money.
Repayment period is 5 to 7 years and the repayment starts from one year after completing the study or 6months after getting a job whichever is earlier.
No collateral securities required for a loan up to Rs. 400000 and suitable third party guarantee, most probably from parents or guardian according to the net worth of such party’s up to Rs. 750000 and a tangible collateral security is required for the loan amount above Rs. 750000. All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s) or parents-in-law.
There is no margin fee for the loan amount up to Rs. 400000 and a 5% Margin fee is required for studying in India and 15% margin fee for studying outside India, if the loan amount more than Rs. 400000.
The documents required for education loan are Completed Education Loan Application Form, Mark sheets of last qualifying examination, Proof of admission scholarship, studentship etc, Schedule of expenses for the specified course ,2 passport size photographs, Borrower’s Bank account statement for the last six months, Income tax assessment order, of last 2 years, Brief statement of assets and liabilities, of the Co-borrower and Proof of Income (i.e. Salary slips/ Form 16 etc)
For interest rate, concession in interest rate and more details please visit State Bank of Indias Website.
Note/Disclaimer: This website is just meant for information purpose and it is NOT an official website of State Bank of India. For more details please visit www. sbi.co.in Readers are requested not to entirely rely on information available on this website without independent verification of the same and www.investmentsandmoney.com or anyone related to this site will not responsible for any accuracy of the information.
Wednesday, 13 October 2010
This is a profit sharing plan and gets the shares of profit as loyalty addition which is payable with death benefit or with maturity benefit and may be payable from the 10th year onwards according to the experience of the Life Insurance Corporation of India.
Minimum and Maximum Age of Entry
Those who have completed 12 years can join with this scheme and the maximum age of entry is 60 years, but special term riders allowed only from the age of 18 years and the maximum age for special term riders is 50 years.
Payment of Premium
This is a Monty Recurring type Scheme just like Post office recurring deposit or any other recurring deposits. But you can opt for monthly (ECS), quarterly, half yearly or annual payment. If you opt for half yearly payment or yearly payment you will get a rebate of 2% and 1% respectively. The minimum premium for those who are in the age between 12 to 49 is Rs. 250 per month and those who are in the age between 50 to 60 is Rs. 400 per month. There is not maximum limit for premium amount. For accident benefit Re. 1 extra per 1000 sum assured. Term riders are optional and should pay additional for the same.
Term Rider Conditions
For term riders the minimum age of entry is 18 years and the maximum age of entry is 50 years and the minimum sum assured is Rs. 50000 and the multiples of Rs. 10000. There is no maximum limit of sum assured.
The Jeevan Saral plan is suitable for Salaried Persons, for high Net worth Individuals, Person with uncertain income because LIC provides auto cover in case premium due remains unpaid for 1 year and for Person who need money for future contingencies like marriage/education of children etc.
The Sum Assured should be chosen by the individual for the purpose of determine the premium and the Sum Assured is payable on death. But the Sum assured is payable on maturity can be on the basis of age & policy term, Smooth return and Irrespective of age at entry & term death cover will be the same. However, Maturity SA will differ. The Jeevan Saral Policy got the Golden Peacock award for the excellence of the Scheme.
Maturity Benefits: Maturity benefit is Loyalty additions + Maturity Sum Assured, if any.
Loyalty addition: The Loyalty addition will be declared after the policy has been in full force for at least 10 years.
Partial Surrenders: After completion of 3 years or more from the DOC provided full premiums have been paid subject to conditions can be made any time.
4. Auto cover: The auto cover is if the subsequent premiums are not paid after the policy continues successfully for more than 3 years, the risk cover under the main plan will continue for 12 months from the date of first unpaid premium
Death Benefits: Loyalty Additions + 250 times the monthly basic premium (called Death Benefits SA) + Return of premiums paid (excluding 1st year premium & extra/rider premium) if any.
The plan allows partial surrenders or full surrenders. The surrender value may be more than the guaranteed surrender value. You can surrender the policy after 3 years of the commencement of premium payment. The guaranteed surrender value is 30% of the premium paid excluding first years premium and all extra premiums and premiums for accident benefit and term riders.
You can take loan as per the conditions of LIC and can avail housing loan also
Income Tax Benefit
|The Maturity value is fully exempted from Income tax as per section 10 of present Income Tax Rule in India. This policy is suitable as tax saving scheme (section 80C) as per the present income tax rule in India and also as per the proposed new tax code which may be implemented from 01st April, 2010.|
The court dismissed an appeal filed by the Centre against the order of the Central Administrative Tribunal (CAT) which had held that there cannot be discrimination among persons holding same posts vis-a-vis their pay scale while allowing a batch of petitions filed a group of Prasar Bharati employees.
"... where there is complete parity it would be highly discriminatory to treat employees differently merely on account of the two coming from two different sources," a Division Bench of Justices Pradeep Nandrajog and Moolchand Garg said.
However, the court clarified that the pay scale can vary if an employee held higher qualification than others in the same cadre.
Courtesy : Blog Pay Commission
The arrears payable from 01.07.2010 to 30.09.2010 will be credited in the GPF (General Provident Fund) account of the employee. But the arrears of DA from 1.7.2010 to 30.9.2010 to the employees recruited to the Civil Services on or after 1.1.2004 and who are governed under Contributory Pension Scheme shall be paid in cash. In this festival Season it is really a warm up for the State Government employees, even if it is expected.
Tuesday, 12 October 2010
Ensure the Home town is in service records
The first and foremost thing a government servant should do for the Leave Travel Concession (LTC) is that he or she should ensure the home town is correctly entered in the service records, if not or if there is any changes in the home town, take necessary steps to enter it correctly.
Inform to the respective authority
Before the commencement of the journey he/she should inform the Controlling Officer. If you wish to take the LTC to anywhere in India by the youself or with family or for any family member, inform it to the controlling officer before the journey and the person must visit that place to get the LTC. If there is any change in the informed place to visit, inform that change also before the journey to the changed place.
Produce relevant proof
The officer is liable to produce evidence of the journey performed, such as serial numbers of railway tickets etc. to convince that the journey has actually being performed.
Advance for LTC
A government servant can take upto 90% of the amount as advance of LTC. But he should start the outward journey within 30 days of granting such advance; otherwise refund the advance in full. IF you travel by train you can take advance before 60 days. In any case you should submit the ticket within 10 days of the withdrawal of such advance. It is preferable to adjust the bill with advance within one month after the return journey, and if it is not adjusted within 3 months the claim may be forfeited or deemed to have been relinquished.
Controlling Officer for LTC
The controlling officer should keep a record of all assistance granted under LTC scheme and up-to-date the service books with the dates of starting the journey and also should keep a register with the hometowns of all employees under his control. Relaxation in minor cases such as no prior information of journey etc., can be made by the Head of the Department, if the case is genuine. The controlling office should Control over the advances made in this regard and the recovery of the same and issue necessary orders regarding this.
Monday, 11 October 2010
Who can invest in KVP?
KVP can purchase by an adult who is a resident in India. It can also be purchased jointly by two adults. A minor also can purchase this instrument directly or through a guardian. A trust can also purchase KVP. But a Company, Society or any other Institution cannot purchase this post office saving certificate. Non-Resident Indian/HUF are also not eligible to purchase.
Minimum and Maximum amount of Investment
The Minimum amount of investment in KVP is Rs. 100 and it is in the denominations of Rs. 500, Rs. 1000, Rs. 5000, Rs. 10000 and Rs. 50000. The certificate upto Rs.10000 is available from all post offices in India; But for Rs. 50000 is available only from Head Post offices in India.
Rate of Interest and Time of maturity
The Maturity period is 8 years & 7 months. The scheme gives 8.40% compound interest and the amount invested will be doubled in this period (for the KVP purchased on or after 1st March 2003) and the investor will get back the 200% of the investment. Yes the money will be doubled in 8 years & 7 months. Premature encashment is also possible after 2.5 years. Reinvestment facility is also available.
The following Percentage of face value can be received on premature encashment of KVP (for the KVP purchased on or after 1st March 2003)
2 years 6 months or more but less than 3 years 17.05%
3 years more but less than 3 years 6 months 20.79%
3 years 6 months or more but less than 4 years 26.71%
4 years or more but less than 4 years 6 months 31.08%
4 years 6 months or more but less than 5 years 35.59%
5 years or more but less than 5 years 6 months 43.56%
5 years 6 months or more but less than 6 years 48.84%
6 years or more but less than 6 years 6 months 54.33%
6 years 6 months or more but less than 7 years 64.91%
7 years or more but less than 7 years 6 months 71.38%
7 years 6 months or more but less than 8 years 78.10%
8 years or more but less than 8 years 7 months 85.09%
Tax Treatment of KVP
No Income Tax Exemption under section 80 C is available for KVP. Interest accrued on yearly basis will be taken as income for Income Tax purposes, but no TDS will be deductible. A deposit in KVP is exempt from Wealth tax.
Other features of KVP
KVPs are encashable at any Post office before maturity by way of transfer to desired Post office. It is transferable to all post offices in India. The Certificate (KVP) is transferable from one person to another person before maturity. Duplicate certificate can be issued in case of lost, stolen, destroyed, Mutilated or defaced certificate. KVP can be pledged as security against a loan to Banks/Govt. Institutions. Nomination facility is also available. KVP can be purchased or reimbursed through power of attorney also. The Govt. of Maharashtra has declared the KVP as a "Public Security" under the provision of Mumbai Public Trust Act. 1950.
Friday, 8 October 2010
Who can operate a MIS account?
Only a resident Indian citizen can open an account under this scheme. An HUF (Hindu Undivided Family) or an NRI (Non Resident Indian) or a foreign national cannot open an account under this scheme. A minor can also open an account under this scheme through a guardian. But if the minor completes his/her 10 years of age can open this account in his or her own name directly. This account can be opened as single account or joint account with more than one person.
Maximum and Minimum limit of investment
The minimum amount can be invested in this account is Rs. 1500. Multiples of thousand can be deposited and the maximum amount can be deposited in a single account is Rs. 450000 and in a joint account it is Rs. 900000. Any number of accounts can be opened by a person but the total amount invested in all accounts should not be overcome the maximum limit.
The rate of interest is 8% per year and can be collected monthly. The facility of direct credit of interest in saving account is limited to those have a savings account is in the same post office. If there is not such savings account in the same post office, you have to collect the interest every month, directly from the post office. If you have closed this account only at the maturity a 5% bonus also will be given. Then the effective income will be 8.9% per year. Even if you are not withdrawn the interest, you won’t get additional interest for the same. If you deposit the interest from Monthly Income Scheme in post office recurring deposit, you can earn approximate 10.5% interest. If you open the MIS and Recurring account in same post office with a standing instruction to deposit the interest in recurring account, this process will work automatically.
Taxation of Investment and Interest
There is no Tax exemption for this investment and the interest earned is fully taxable. There is no tax deducted at source (TDS). But the investment in PO MIS is exempt from wealth tax.
Lock in Period
Maturity period is 6 years. One can prematurely withdraw the deposit after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07
You can transfer the account to any post office in India. Nomination facility is also available at any time on or after open the account. This is the only investment opportunity in post office where monthly interest is payable.
Thursday, 7 October 2010
This mutual fund offers the best possible return with flexibility and liquidity. This mutual fund industry is controlled by some regulating authorities in each country. In India these authorities are Securities and exchange Board of India (SEBI) and Association of Mutual Funds (AMFI). So it is safe and convenient to invest in mutual funds. In India Mutual Fund industry is the best disciplined Institutional investors who play an important role in Indian Market. Mutual fund offers tax benefits also under the Equity Linked Tax Saving Plans (ELSS).
History of Mutual Funds in India
The first mutual fund set up in India by Unit trust of India in 1963 and In 1990s The Government of India allowed public sector banks and institutions to set up mutual funds. In 1992, SEBI act was passed and its objectives includes
1. To formulate policies and regulates the mutual funds
2. Protect the interest of investors in securities
3. Promote the development
4. Regulate the securities market.
SEBI notified regulations for the mutual funds in 1993. Soon after the mutual funds sponsored by private sector entities were allowed to enter the capital market and the regulations are revised in 1996 and making timely amendments. They are issuing timely guidelines to the mutual funds to protect the interests of investors. The same set regulations are controlled all mutual funds promoted by public sector or private sector or promoted by foreign entities. So all mutual funds are monitoring and inspecting by SEBI. So the risks associated with the all mutual funds schemes are of similar type.
Net Asset Value (NAV)
Net Asset Value is the market value of the securities held by the scheme. Market value of securities changes every day and the NAV also changes every day. NAV per unit is the market value of securities of a particular scheme divided by the total number of units of the scheme on any particular date.
If the Market value of all securities of a mutual fund is $ 500 Million and the total number of units of the mutual fund is 10 Million, then the NAV of a unit of the mutual fund is $ 50, even if the purchase price of one unit is $10 at the beginning. This NAV should be disclosed every day or every week according to the terms of the Mutual Fund.
Types of mutual fund schemes
According to Maturity period a mutual fund scheme can be classified into Open-ended Fund or close-ended fund.
Open-ended mutual fund
An open-ended fund can be subscribe and repurchase on a continuous basis. There is not fixed maturity period for such schemes. Investors can buy and sell units whenever they wish to do so at Net Asset Value (NAV) which is declared on a daily basis. The key feature of open-end schemes is liquidity.
Close-ended mutual fund
A close-ended fund has a fixed maturity period and the investor can subscribe only on a specified period of time when it is launched. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units on the stock exchanges where the units are listed. Some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices.
As per SEBI Regulations one can exit from the mutual fund through repurchase facility or through listing on stock exchanges. These mutual funds normally disclose NAV on weekly basis.
Growth / Equity Oriented Scheme
Mutual funds also can be classified as growth scheme, income scheme, or balanced scheme such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows.
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.
These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc these schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.
Any way next Dearness allowance will overcome 50% and according to the 6th central pay commission, when the D.A exceeds 50% some compensatory allowances will be increase to 25% percent. See the trend on D.A rates
On January 2010 the D.A increased by 8% (from 27% to 35%
On July 2010 it has been increased by 10% (from 35% to 45%)
No doubt the next time, that is on January 2010 it will cross the border of 50%
Let us see the allowances which may increase at the time when the D.A crosses 50%
They are Children Education Allowance, Child Care Allowance, Washing Allowance, Cycle Allowance, Cash Handling Allowance, Conveyance Allowance, Split Duty Allowance and some advances such as Festival allowances and Flood Advance.?
Allowances Admissible to Central Government Employees
Why D.A (Dearness Allowance) is more awaited than Increment
Wednesday, 6 October 2010
The estimated financial implication is around Rs. 1065 crore. The benefit of this notification will get around 13 Lakh non-gazetted railway employees. This PLB is based on the basis of the performance of the railway and this is the highest PLB in the history of Indian Railway.
No doubt this is a motivation for all railway employees. Their performance is good and also improving day by day. So they can work with satisfaction that their employer (Indian Railway) is considering them and their hard work.
Railway gives special education allowance and hostel allowance for disabled children
Tuesday, 5 October 2010
You must be well versed in the stock market and the current scenario of stock trading and be thoroughly aware the terms such as stocks, options and currency market. Read a lot and study the market trend and make enough research about the financial market and equities. No doubt you can learn enough through online and understand that the online learning cannot substitute the real life experience.
You must be well aware of your financial needs and goals because if you resign from your job, you won’t get salary. So you have to make enough money to cover the salary. Only if you deposit a good amount in the market, you can make enough money to meet your daily expenses and also to satisfy your financial goals.
Develop a trading strategy and try to get advice from a reliable stock broker. Learn about the taxation rules in your country regarding the long term and short term capital gains or loss which may be happened through your trading. Devote some valuable time for research and training.
Yes trading is easy and can make money at home through computer and internet. But the risk behind it is not that much easy. You are just leave up your bread earning work for the uncertain stock market. Consider it as a business and approach it with seriously. If you can give much commitment, go ahead, unless be satisfy with your current job and if you wish to make money from stock market without doing much difficulty, go for mutual funds and continue your present work. The fund managers will take over the study and research for you.
Most of the annuity fund payments are partly guaranteed according to the risk bearing preference of the investor. So this pooled money would be invested in safe investments.
Another type of annuity fund is the money invested by an employer for giving pension to his employees when they retire from their service. In this case the employer can fix the degree of risk he can bear and according to the development of fund they give out pension to his employees. But if the investment grows adversely he may adjust the pension for a certain period to overcome the loss.
The annuity funds also can be managed by employees associations such as teachers association, nurses association etc. In this case also the poor management of fund may lead to decreased benefit or no any benefit as the case may be.
Annuity funds, if managed well may give out stable payments for a long time to the retiree or the beneficiary for their life time. It is according to the investment strategy of the institution who handles the fund. If there is a well established and planned management, the depositor can earn a good amount of money. Unless there will be a loss. So choose the financial institution wisely after studying their past performance, even if it says that the past performance is not a yardstick for the future stability.
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Monday, 4 October 2010
30 days Non-Productivity linked Bonus (ad-hoc Bonus) to Central Government employees for the year 2009-2010
According to the Office Memorandum No.7/24/2007 E-III (A) dated 22-09-2009 this bonus is to the Central Government Employees in Group C and D and all non-gazetted employees in Group B, who are not covered by any Productivity Linked Bonus Scheme. The Calculation ceiling of Rs.3500/- remain unchanged.
This order is extended to Central Police and Para-military Personnel and Personnel of Armed Forces, autonomous bodies etc
Sunday, 3 October 2010
But fortunately or unfortunately we are not using paper money or coins at present. We are using debit cards, credit cards and such paper monies. Then there are no coins at the end of the day. So this piggy bank habit is also at its extinction.
But some new generation banks introduced a solution for this problem. They allow plastic money users to create a virtual piggy bank. When you use your card to make any purchase, the bank rounds the total purchase price of the item up to the nearest dollar. The difference of the purchase price and the rounded dollar is then transferred to your savings account. If you Purchase a cartoon book for your kid at $ 14.10 , they will round the price to the next dollar, that is $ 15 and the remaining amount of $0.90 (90 cents) automatically deposit in your savings account and after a certain period all these accumulated differences and its interest will become a good money.
How is this idea? No doubt it is interesting. Yes these little drops will make a good accumulation and help you to meet any of your financial goals in future.
One of the important firms of Dow Jones is Dow Jones Index which has been established in 1882 and it has a famous position in the history for more than a decade. The Most common product of Dow Jones is the Wall Street Journal which gives reliable information about shares and other financial products. The Journal established in 1889 and now its spreads its editions and publications almost all part of the world.
Long before the introduction of Internet, the Dow Jones Index was digitally stored and made available its data through online to its customers. It became global in 1967 itself. Because of providing unique and high quality products, they survive such a long time. For many time they got awards and recognitions for their high quality products and services. Some of them are CII Codie Awards of 2007 and 2008, Business Journalist of the 2008 year award, London, 2007 American Business Media, Jesse H. Neal National Business Journalism award, 2007 Selling Power Sales Excellence Award etc.
The Dow Jones not only cares their customers, but their employees also. This is one of the major institutions who believe that the peace of mind and welfare of their employees is their greatest asset. They are providing the best and safest working environment to their employees and try to improve it constantly.
The firm aims the satisfaction of their customers as well as the financial well being of the customers. They believe that if the customers’ financial position is sound theirs’ also will be better. So after many decades they are still ahead of all their competitors.