Tuesday, 30 November 2010

New Fund Offer (NFO) Presently Open in the Market

Name of Mutual Fund   :           DSP-BR Fixed Maturity Plan 12 Months-Series-10(Dividend)

Name of Fund House               :           DSP Blackrock Mutual Fund

Period of NFO                         :           Dec 2 2010 Dec 07 2010

Minimum Investment                 :           Rs 10000

Name of Mutual Fund   :           DSP-BR Fixed Maturity Plan 12 Months-Series-10(Growth)

Name of Fund House               :           DSP Blackrock Mutual Fund

Period of NFO                         :           Dec 2 2010 Dec 07 2010

Minimum Investment                 :           Rs 10000

Name of Mutual Fund   :           Reliance Fixed Horizon Fund 16-Series 5-(Dividend)

Name of Fund House               :           Reliance Mutual Fund

Period of NFO                         :           Dec 1 2010 Dec 2 2010

Minimum Investment                 :           Rs 5000

Name of Mutual Fund   :           Reliance Fixed Horizon Fund 16-Series 5-(Growth)

Name of Fund House               :           Reliance Mutual Fund

Period of NFO                         :           Dec 1 2010 Dec 2 2010

Minimum Investment                 :           Rs 5000

Name of Mutual Fund   :           Religare FMP Sr-4 D(13 Months)(Dividend)

Name of Fund House               :           Religare Mutual Fund

Period of NFO                         :           Nov 26 2010 Dec 09 2010

Minimum Investment                 :           Rs 5000

Name of Mutual Fund   :           Religare FMP Sr-4 D(13 Months)(Growth)

Name of Fund House               :           Religare Mutual Fund

Period of NFO                         :           Nov 26 2010 Dec 09 2010

Minimum Investment                 :           Rs 5000

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The unique document identification number (DIN) for Tax Payers

Taxpayers will now have to procure a 'new number' for filing returns and making any communication with the income-tax department.

The unique document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on “every” income tax-related communication, including returns to be filed next year for the financial year 2010-11.

According to the new guidelines brought out by the Central Board of Direct Taxes (CBDT), the DIN will be mandatory “in respect of every notice, order, letter or any correspondence” with the department, by the taxpayers.

“The DIN will be generated by the I-T department and will be useful, essentially, for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses,” a senior finance ministry official said.

The Aykar Sampark Kendras will hand out the DIN from this month, the official said. Assesses will not be put to any trouble as the numbers will be generated and allotted by the department itself. I-T officials will also be allotted the numbers in order to streamline the process, the official said, adding the number had to be produced thereon for every activity with the department.

Taxpayers and tax collectors are currently required to quote permanent account number (PAN) and tax deduction and collection account number (TAN), among others, when returns are filed with the department. According to Section 282B of the Income Tax Act that deals with DIN, if the document, sent to the tax authority, does not bear this unique computer-generated number, “such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received.”

DIN is aimed at bringing more transparency in tax administration as the whole exercise involves a number of documents and proformas. Apart from regular filing of taxes, a taxpayer deals with the department for various other financial services, which DIN will help to ease, the official said.
Source : The Statesman

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Monday, 29 November 2010

All about Senior Citizens Savings Scheme (SCSS)

Senior Citizens Saving Scheme is a deposit scheme introduced by Government of India to provide a good return to senior citizen through a safe investment scheme and also ensure them a good regular income.

Who can join the scheme?

A resident Indian citizen who has completed his 60 years of age can join SCSS and can get benefit from the scheme from any source of income. But if a person retired by the VRS (voluntary retirement Scheme) at the age of 55 (from their retirement benefit) also can join this scheme even if he is not completed 60 years. For ex-service men there is no age limit to join this scheme. Only resident Indian citizen can join this scheme. Non-Resident Indians (NRI), Persons of Indian Origin (PIO) and Hindu Undivided Families (HUF) etc., cannot join the SCSS. Joint account also can be opened in SCSS, but only with spouse, irrespective of the age of the spouse. In such a case, if the death of the one account holder is occurred, it can continue by the spouse, but the maximum investment must be 15 Lakhs. Nomination facility is also available at any stage and change of nomination, cancel of nomination etc., also possible.

Minimum and maximum deposit

A minimum deposit of Rs. 1000 is required to open SCSS account and multiples of Rs. 1000 up to a maximum amount of Rs. 15 Lakhs can be deposited.

Interest rate and Income Tax Impact

The Government offer 9% interest for the scheme and the interest is payable quarterly. The amount invested can consider exemption under section 80C of income tax act (Up to Rs. 1 Lakh) and the interest is taxable. If the interest is more than Rs. 5000 there will be TDS deducted unless you submitted form 15H (Only if your income is not in tax limit)















Maturity of SCSS

The deposit in SCSS will be matured in 5 years and can be extended another three years. One can withdraw the scheme before maturity after the 1st year with a penalty of 1.5% till 2nd year of joining the scheme and 1% penalty after 2nd year.
The main disadvantage of this Senior Citizens Saving Scheme is that it cannot be pledged for loan. You cannot take loan against the security of this saving scheme.

Where to open Senior Citizens Saving Scheme

The Senior Citizens Saving Scheme can be opened in designated Post Offices and specified branches of Public sector banks named Allahabad Bank, Bank of Baroda (BoB), Bank of India (BoI), Bank of Maharashtra (BoM), Canara Bank, Central Bank of India (CBI), Corporation Bank , Dena Bank, Indian Bank , Indian Overseas Bank (IOB), Punjab National Bank (PNB), State Bank of India (SBI), State Bank of Hyderabad, State Bank of Indore, State Bank of Bikaner and Jaipur (SBBJ), State Bank of Patiala, State Bank of Saurashtra , State Bank of Mysore ,State Bank of Travancore (SBT), Syndicate Bank, UCO Bank , Union Bank of India, United Bank of India, Vijaya Bank

This is a safe and secure investments and we suggest that all retired employees may take advantage of this secure investment. When the bank rate is high this won’t be profitable, but when the interest rate of bank is low it is secure and profitable and assure regular income.

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Saturday, 27 November 2010

The Shipping Corporation of India Limited issues FPO (Follow on Public Offering)

As we posted earlier The Shipping Corporation of India Limited issues FPO (Follow on Public Offering).

The Shipping Corporation of India has been established on 2nd October, 2010 by amalgamating Eastern Shipping Corporation and Western Shipping Corporation.  Now it is the largest Shipping Company in India. SCI’s owned fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container vessels, and Passenger-cum-Cargo vessels, Phosphoric Acid / Chemical carriers, LPG / Ammonia carriers and Offshore Supply Vessels. Sailing through for nearly five decades, the SCI today has a significant presence on the global maritime map. Today Shipping Corporation of India is a high quality and safety conscious organization.

Now the FPO is open for subscription between 30/11/2010 and 03/12/2010. The issue is priced between Rs.135 and Rs.140 as per the following details.

Issue opens on                                 :               30th November, 2011

Issue close on                                   :               03rd December, 2011

Issue Size (Shares)                          :               84690730 equity shares

Issue Size (Rupees)                         :               1143.34 crores to 1185.68 crores

Face Value of Equity Shares       :               Rs. 10 per share.

Minimum Number of Shares to be applied:

Minimum 5o shares to be applied and in muliples of 50 there after.

Share Allocation

Employees Reservation               :               423454 shares (Rs. 5.71 crores to 5.92 crores)

QIB Investors                                   :               42133638 shares (Rs. 569.80 crores to 589.88 crores)

Non Institutional Investors       :               12640091 shares (Rs. 170.64 crores to 176.97 crores)

Retail Investors                               :               29493547 shares (Rs. 398.16 crores to 412.90 crores)

The BRLMs (Book Running Lead Managers) are SBI Capital Markets Ltd., ICICI Securities Ltd. and IDFC Capital Ltd. The shares or Shipping Corporation of India listed in BSE and NSE and the issuing bankers are ICICI Bank Limited, Yes Bank Limited, HDFC Bank Limited, Axis Bank Limited, Kotak Bank Limited and State Bank of India.

No doubt, as a leading Public Sector Undertaking, the FPO of SCI will be oversubscribed.

Friday, 26 November 2010

Exiting Black Friday Dsicount offer from Hostgator will be over in 2 hours

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Third Party Payment are not allowed by Financial Institutions

Now Most financial institutions are not allow the customers to apply  for their financial product with third party payment. In this scenario let us see what is third party payment and how can we solve this problem.

If you make a payment for any financial instruments with cheques from the bank accounts, which are not mentioned in the application form can be termed as third party payment.

If you make payment from a joint account the first holder of the financial instrument must be any one of the joint account holder.

If you make payment through online banking account the online banking account must match with the registered bank account as per application submitted to the financial institution's record.

Cases where third party payments allowed

Payment made by Parents/Grand-Parents/related persons on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding Rs. 50000 (each regular purchase or per SIP installment).

Payment made by employer on behalf of employee under Systematic Investment Plan (SIP) facility through payroll deductions.

Payment made by the Custodian on behalf of an FII (Foreign Institutional Investors) or a Client.

But for getting the exemption both the investor and the person making the payment should be KYC ((Know Your Customer) compliant and also submit “Third Party Payment Declaration Form” duly completed in all respects.

In case of Systematic Investment plan all the old SIPs (SIPs started earlier and still continuing) does not need this third party declaration. But new SIPs require such declaration if it is any one of the above mentioned cases.

What can an Investor do for new purchases

Investor should provide the details of the bank account from which the payment is made.

If the purchase is made through Pay order, Demand draft or Bankers cheque, a certificate from the issuing bank should be attached with the application which includes the name of the account holder and the bank account number from which the amount has been taken form making such payments.

The payment more than Rs. 50000 will not be accepted, if such instruments for payment (Demand Draf, Pay order etc.) made by cash and the above mentioned certificate from the issuing bank with Name, Address, PAN etc also should be needed.

If payment is made by RTGS, NEFT, ECS, Bank transfer, etc., an acknowledged copy of the instruction to the bank stating the bank account number from which the amount has been debited, must attached with the application.

Registration of Multiple Bank Accounts:

If an investor  has multiple bank account, he can register up to 5 bank accounts (for Individual / HUF) and 10 bank accounts (for Non-Individual) by submitting a       Cancelled cheque leaf with investor’s name pre-printed and a Bank statement / Bank passbook with account number, account holders’ name and address.

It is advisable that if the bank details are changed the investor must inform the financial institution as soon as possible but at least 10 days prior to the date of dividend / redemption payment, if any. You can get necessary forms from the financial institution where you purchase the saving instrument or wish to purchase such instruments. You may download the forms from their website also.

Wish all our readers a safe and secure investment deals.

Thursday, 25 November 2010

Manganese Ore India Limited (MOIL) issues IPO

Central Province Prospecting Syndicate was established in 1896 and later renamed as Central Province Manganese Ore Company Limited (CPMO). IN 1962 the asset of the company has taken over by government and formed Manganese Ore India Limited (MOIL) as a Government Company with 51% of shares held by Government of India, Government of Rajasthan and Government of Madhya Pradesh. Balance 49% held by CPMO

Now Manganese Ore India Limited (MOIL) issues IPO (Initial Public Offering) of 33,600,000 equity shares of Rs10 each with a price band between Rs.340 & Rs.375. The book built offer opens from 26th November, 2010 to 01st December, 2010 for retail and non-institutional bidders and 30th November, 2010 for Institutional buyers. Minimum No. of shares to be applied is 17.

The IPO comprises a net offer to the public of 32,928,000 equity shares and reservation of 6,72,000 equity shares for subscription by eligible employees

This IPO is also the part of disinvestment of public sector undertaking. This year the government has so far raised Rs 21,000 crores from four earlier IPOs, including Rs 15,000 crores from Coal India. According to the able sources, Shipping Corporation of India, Steel Authority of India and Oil & Natural Gas Corporation (ONGC) are also completing the formalities of issuing IPO.

The whole hearted welcome received from investors for the recently issued IPOs of Public Sector Undertakings (Coal India Limited and Power Grid Corporation) may repeat in this MOIL IPO also. We hope that the recent slow down of stock market may not affect this IPO.

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New IRDA Direction for Variable Insurance Products

Insurance Regulatory and Development Authority (IRDA) directs that all universal life products, which are recently entered in India and gives greater flexibility to customers will not have any unit linked component in those products. IRDA instructed that all such products are called Variable Insurance Products (VIPs) and have a lock in period of at least three years.

IRDA also instructed that all such Variable Insurance Products should provide death benefits equals to guarantee sum assured plus the balance in the policy account while the maturity benefit should equal to the balance in the policy account and terminal bonus, if any. The sum assured for these policies should be at least 10 times of the annual premium.

Single premium or limited premium offers are not allowed for these VIPs and the cost must not be more than 27.5% of the first premium (including commission and other expenses)  and 7.5% for the second and third year premium and after that it must be within 5% and the minimum policy and premium payment term should be 5 years.

Wednesday, 24 November 2010

Safest Investment Options

All of us need money and we are making money with our work or business. Anyway we make it with much difficulty. We know the value of money and also know the necessity of making money. But we are not ready to make money in illegal ways. Yes we wish to make money legally and also wish to lead a peaceful life. As we know there are so many ways to make money and grow our money. Some of them are risky such as stock trading, forex trading etc. Such investments need more care and attention. You must take more time to learn and analyses the financial products. Here I am sharing with you some safest methods to make money. No doubt those are not making you rich quickly. But provides a steady growth of your money and you should not spend much time on them to watch those investments. Most of them will grow automatically.

Public Provident Fund (PPF)

This is an interesting investment option. One can start a PPF account with a post office or with some nationalized banks. The scheme offers 8% tax free interest. One can start this investment with a deposit of Rs. 500 and can invest a maximum amount up to Rs. 70000 in a year. The main disadvantages of this investment are you can close the account only after completing 15 years. But you can withdraw half of the investment proceeding 2 years, after 6th year onwards. Only one withdrawal is allowed in a year.  For retirement and long term goals this is a good and safest investment option. Read more about PPF

Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme is also a good investment option that one can invest up to Rs 6 Lakh and can earn 8% interest and the interest is disbursed in monthly basis. If you do not need monthly interest you can start a recurring deposit in the same post office and can allow them to deposit the monthly interest in the recurring deposit. Then you can fetch a total interest up to 10%. The investment is for 6 years, but there you can withdraw after 1 year with some penalty. If you withdraw only after the maturity you can earn additional 5% Bonus. Read more about Post office Monthly Income Scheme.

Company Fixed Deposits

Companies also invite fixed deposits and can invest in those schemes to get a good income and these deposits also do not affect the market fluctuations. The benefit of companies that they can collect money less than bank lending rate and the investor can earn more interest than banks deposit. If you give some attention you can earn around 11% to 12 % interest from reputed companies. Read more about company fixed deposits

Post Office time deposits

Post office time deposit is a good investment option for those who wish to deposit money for a short period such as one year or more and can earn interest as per the time period of deposit. It is just like fixed deposit in banks. Read more about Post office Time Deposit.

Debt Mutual Funds

Mutual funds are good option to invest in money market instruments. These debt mutual funds are funds accumulated from investors and invest in safe investment schemes and money market instruments to fetch more income. This is more benefit full because the money is managed by well experienced fund managers. So they can make more than individual investors.  In the last 3 years 5 good debt mutual funds made an average return of 10 % to 14%. Read more about Mutual Funds

Post office recurring deposit schemes

One can open a post office recurring deposit with a minimum monthly investment of Rs. 10 and there is no maximum limit and can earn 7.5% interest. The time period is 5 years and early withdrawal is allowed. You will get discounts in deposit if you deposit half yearly or yearly.

All the above options are safe and good investment option those who does not like to bear risk and market fluctuations. One of the main advantages of the above mentioned post office investment schemes, there is no TDS deducted from the income. But all are taxable except PPF. In Company fixed deposit TDS will be deducted, if the interest is more than Rs. 5000. If you wisely distribute the amount in various companies you can avoid TDS. With all the above options you can play with your money safely.

New Mutual Fund Offers (NFO)
Following Mutual Funds are launching New Fund Offer (NFO) . It is arranging in the order of Scheme Name, Mutual Fund house which is issuing NFO, Date of opening and closing and minimum required investment. DSP BlackRock FMP-3M-Series-24 DSP Blackrock Mutual Fund Nov 22 2010 Nov 25 2010 Rs 10,000 Sundaram Fixed Term Plan Series [...]

Claris Lifesciences Limited issues IPO
Claris Lifesciences Limited (CLL) is an Ahmedabad based pharmaceutical company. Claris is the largest Indian sterile injectables pharmaceutical companies with a presence in 76 countries worldwide. Claris offers 113 products across multiple markets and therapeutic areas. All of these products are off-patent products. Claris Life Sciences LTD is issuing IPO (Initial Public Offer). This IPO [...]

New Mutual Funds From HDFC, DSP BlackRock, Sundaram and Religare Mutual Fund
There are a number of Mutual funds are issuing New Fund Offer in this period. Let us have a glance on them. HDFC Fixed Maturity Plan-370D-November 2010 HDFC Fixed Maturity Plan-370D-November 2010(17)-2-Growth Launched by: HDFC Mutual Fund and the NFO Period are from 9th November, 2010 to 22nd November, 2010 with a Minimum Investment is [...]

Tuesday, 23 November 2010

New Mutual Fund Offers (NFO)

Following Mutual Funds are launching New Fund Offer (NFO) . It is arranging in the order of Scheme Name, Mutual Fund house which is issuing NFO, Date of opening and closing and minimum required investment.

DSP BlackRock FMP-3M-Series-24 DSP

Blackrock Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 10,000

Sundaram Fixed Term Plan Series AR (367 Days) (Dividend)

Sundaram Mutual Fund

Nov 19 2010 Nov 26 2010

Rs 5000

Sundaram Fixed Term Plan Series AR (367 Days) (Growth)

Sundaram Mutual Fund

Nov 19 2010 Nov 26 2010

Rs 5000

Religare Fixed Maturity Plan - Sr IV - Plan D (13 Months) (D)

Religare Mutual Fund

Nov 26 2010 Dec 9 2010

Rs 5000

Religare Fixed Maturity Plan - Sr IV - Plan D (13 Months) (G)

Religare Mutual Fund

Nov 26 2010 Dec 9 2010

Rs 5000

Birla Sun Life Fixed Term Plan - Series CI (367 Days) (D)

BirlaSunife Mutual Fund

Nov 25 2010 Nov 26 2010

Rs 5000

Birla Sun Life Fixed Term Plan - Series CI (367 Days) (G)

BirlaSunife Mutual Fund

Nov 25 2010 Nov 26 2010

Rs 5000

BNP Paribas FTP - Series 19 - Plan E (370 Days) (AD)

BNP Paribas Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 5000

BNP Paribas FTP - Series 19 - Plan E (370 Days) (DOM)

BNP Paribas Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 5000

BNP Paribas FTP - Series 19 - Plan E (370 Days) (G)

BNP Paribas Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 5000

BNP Paribas FTP - Series 19 - Plan E (370 Days) (QD)

BNP Paribas Mutual Fund Nov 22 2010

Nov 25 2010

Rs 5000

DSP BlackRock Fixed Maturity Plan - 3 Months - Series 24 (D)

DSP Blackrock Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 10,000

DSP BlackRock Fixed Maturity Plan - 3 Months - Series 24 (G)

DSP Blackrock Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 10,000

Reliance Fixed Horizon Fund - XVI - Series 4 (D)

Reliance Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 5000

Reliance Fixed Horizon Fund - XVI - Series 4 (G)

Reliance Mutual Fund

Nov 22 2010 Nov 25 2010

Rs 5000

We Hope that all the above investments may perform well and do maximum to achieve investors goal

New Mutual Funds From HDFC, DSP BlackRock, Sundaram and Religare Mutual Fund
There are a number of Mutual funds are issuing New Fund Offer in this period. Let us have a glance on them. HDFC Fixed Maturity Plan-370D-November 2010 HDFC Fixed Maturity Plan-370D-November 2010(17)-2-Growth Launched by: HDFC Mutual Fund and the NFO Period are from 9th November, 2010 to 22nd November, 2010 with a Minimum Investment is [...]


JPMorgan India Capital Protection Oriented Fund
JPMorgan Asset Management India Private Limited (JPMAMIPL) launched a new fund named JPMorgan India Capital Protection Oriented Fund on November 12, 2010. It is a 39 month close-ended income scheme. You can subscribe the fund from 12 November 2010 to 26 November 2010 and the scheme has a rating of AAA (ind) (SO) from Fitch [...]


DSP BLACKROCK TOP 100 EQUITY FUND
DSPBR Top 100 Equity Fund is an Open Ended growth Scheme, invests in the equity securities and equity related securities of the 100 largest corporates, by market capitalization, listed in India. This large cap fund is one of the best performed funds in the long run among other similar type of funds. DSPBR Top 100 [...]

Claris Lifesciences Limited issues IPO

Claris Lifesciences Limited (CLL) is an Ahmedabad based pharmaceutical company. Claris is the largest Indian sterile injectables pharmaceutical companies with a presence in 76 countries worldwide. Claris offers 113 products across multiple markets and therapeutic areas. All of these products are off-patent products.

Claris Life Sciences LTD is issuing IPO (Initial Public Offer). This IPO is open for subscription from 24th November, 2010 to 26th November, 2010. It is 100% Book Built IPO. The Face value of a share is Rs. 10 per equity shares and the price band is Rs. 278 to Rs. 293.The issue size is 1.024 to 1.079 crores of shares which amount to approximately Rs. 300 crores. Minimum Number of shares to be applied is 22 and the shares will be listed in Bombay Stock Exchange.

The allocation of shares to retail investors is 30.72% to 32.37% and to Non institutional investors are 10.23% to 10.79% and QIB investor s 61.43% to 64.75%

We hope that the tendency of the over subscription of recent IPO s of Coal India Ltd. And Power Grid Corporation may reflect in this IPO also.

Know more about ASBA for Apply IPO

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One Rank One Pension

The Parliamentary Standing committee on Defence has urged the government to reconsider the demand of “One Rank One Pension” for the ex-servicemen.

The Parliamentary Standing Committee on Defence (15th LOK SABHA) on 1st and 7th Reports reiterated that the Government should consider the issue of ‘One Rank One Pension’ afresh. Since the issue of One Rank One Pension was not accepted in the past and more recently the Cabinet Secretary’s Committee set up to consider it also did not recommend the same, it has not been found feasible to accept the demand of One Rank One Pension.

In the case of Original Application No. 15 and 45/2010 the Armed Forces Tribunal, Chandigarh had passed the order dated 3.3.2010 with directions to the respondents to take final decision in the matter.

The said order was examined and speaking orders explaining the position were issued on 10.07.2010 to the petitioners.

This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Vilas Muttemwar and others in Lok Sabha today.

SOURCE-PIB

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Monday, 22 November 2010

New Mutual Funds From HDFC, DSP BlackRock, Sundaram and Religare Mutual Fund

There are a number of Mutual funds are issuing New Fund Offer in this period. Let us have a glance on them.

HDFC Fixed Maturity Plan-370D-November 2010

HDFC Fixed Maturity Plan-370D-November 2010(17)-2-Growth Launched by: HDFC Mutual Fund and the NFO Period are from 9th November, 2010 to 22nd November, 2010 with a Minimum Investment is Rs. 5000.This is a close ended debt scheme.

The investment objective of the plan is to generate regular income through investments in debt / money market instruments and government securities maturing on or before the maturity date of the plan.

The Scheme is also in Dividend Option and Quarterly Dividend Option named HDFC Fixed Maturity Plan-370D-November 2010(17)-2-Dividend and HDFC Fixed Maturity Plan-370D-November 2010(17)-2- Qtly Dividend

DSP BlackRock FMP-3M-Series-24

DSP BlackRock FMP-3M-Series-24 DSP Launched by: Blackrock Mutual Fund and the NFO Period are from 22nd November, 2010 to 25th November, 2010 with a minimum investment of Rs 10,000. Tenure of the Scheme is 3 Months from the date of allotment. The units of the scheme will be listed on NSE of India.

Sundaram Fixed Term Plan Series AR (367 Days)

Sundaram Fixed Term Plan Series AR (367 Days) (Dividend) Launched by: Sundaram Mutual Fund and the NFO Period are from 19th November, 2010 to 26th November, 2010 with a minimum investment of Rs 5000. The fund is in both Growth Option and Dividend option.

Sundaram Fixed Term Plan Series AR (367 Days), is a close ended debt scheme. The objective of the Scheme would be to generate income with minimum volatility by investing in debt and money market securities.



Religare Fixed Maturity Plan - Sr IV - Plan D (13 Months)

Religare Fixed Maturity Plan - Sr IV - Plan D (13 Months) (D) Launched by: Religare Mutual Fund and the NFO period is from 26th Novemebr, 2010 to 9th Decemebr, 2010 with a minimum investment of Rs 5000.  The fund is available in both Growth Option and Dividend option.

Religare Fixed Maturity Plan - Sr IV - Plan D (13 Months), is a close ended debt scheme. The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme.

Hope that all the above Schemes will perform well and protect investors’ interest and will do their level best t o maximize the growth.

JPMorgan India Capital Protection Oriented Fund
JPMorgan Asset Management India Private Limited (JPMAMIPL) launched a new fund named JPMorgan India Capital Protection Oriented Fund on November 12, 2010. It is a 39 month close-ended income scheme. You can subscribe the fund from 12 November 2010 to 26 November 2010 and the scheme has a rating of AAA (ind) (SO) from Fitch [...]


DSP BLACKROCK TOP 100 EQUITY FUND
DSPBR Top 100 Equity Fund is an Open Ended growth Scheme, invests in the equity securities and equity related securities of the 100 largest corporates, by market capitalization, listed in India. This large cap fund is one of the best performed funds in the long run among other similar type of funds. DSPBR Top 100 [...]


ICICI Prudential Regular Savings Fund ? New Fund Offer (NFO) from ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund has launched and new fund named ICICI Prudential Regular Savings Fund. The New Fund Offer (NFO) will be available from 15th November, 2010 to 29th November, 2010. ICICI Prudential Regular Savings Fund is an open ended income scheme. The scheme is to provide reasonable returns by maintaining an optimum balance of [...]

Sunday, 21 November 2010

JPMorgan India Capital Protection Oriented Fund

JPMorgan Asset Management India Private Limited (JPMAMIPL) launched a new fund named JPMorgan India Capital Protection Oriented Fund on November 12, 2010. It is a 39 month close-ended income scheme. You can subscribe the fund from 12 November 2010 to 26 November 2010 and the scheme has a rating of AAA (ind) (SO) from Fitch Ratings.
Asset Allocation

The Fund aims to generate returns and reduce interest rate volatility, through fixed income securities along with capital appreciation through equity exposure. The asset allocation of the scheme will be 80-100% in debt and money market instruments and 0-20% in equity and equity linked instruments.

Minimum required investment

The face value of one single unit of the fund is Rs. 10 at the NFO (New Fund Offer) period. The minimum application amount will be Rs 5000 and the multiples of Re. 1 thereafter. The scheme will not charge any entry and exit load. The scheme will be benchmarked against BSE 200 and CRISIL Short Term Bond Fund Indices. The fund seeks to collect a minimum subscription (minimum target) amount of Rs. 1 crore under the scheme during the NFO period.

Maturity period and redemption

JPMorgan India Capital Protection Oriented Fund will be matured after 39 months from the inception and the Maturity date of the fund is 16th March, 2014. Scheme shall be fully redeemed at the end of its tenure and the redemption cheque will be dispatched to the unit holders within 10 business days.

We hope that this new fund will do well and protect investors’ interest and the good and beneficial services of JPMorgan Asset Management India Private Limited will be available to investors ever.

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Thursday, 18 November 2010

The maximum limit of investment in a public issue of shares doubled.


SEBI (Securities and Exchange Board of India) allowed individual investors to invest up to Rs. 200,000 in any company’s Initial Public Offer (IPO) of shares. Earlier the limit was Rs. 100,000. The limit has been exactly doubled. This may lead to invest more in good quality shares of good companies by the retail investors.

The recently introduced ASBA (Application Supported by Blocked amount) process also a good movement for retail investors. Now SEBI enhanced the investment limit also. So it is more convenient for individual investors to invest more in IPO without losing interest. As per ASBA process the money up to the extent you have applied will be blocked in your bank account till the allotment is made and only when the allotment is made for your they will withdraw the money enough to satisfy the allotment.

It is good to know that SEBI makes investment more convenient and it become more investor friendly. They are doing very much to protect investors’ hard-earned money. Hope that the above mentioned changes affect the market more effectively.

Tax Treatment of Housing Loan While caliming HRA Exemption
As you are aware that you can get Income tax exemption for the amount repaid for home loan. But it is interesting and useful to know some facts about it. You can claim Income Tax Exemption up to Rs. 150000 for the repayment of interest of housing loan from a recognized housing finance institution or [...]


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Investment in Company Fixed Deposits is an interesting investment option. Companies take fixed deposit from public and them offer comparatively a high return with Fixed Deposits in Banks. If companies borrow from banks, they have to pay high interest. So company takes money from public as Fixed Deposit and gives 2 to 3 % [...]


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Tax Treatment of Housing Loan While caliming HRA Exemption

As you are aware that you can get Income tax exemption for the amount repaid for home loan. But it is interesting and useful to know some facts about it. You can claim Income Tax Exemption up to Rs. 150000 for the repayment of interest of housing loan from a recognized housing finance institution or Bank under section 24(b) and also can avail exemption up to Rs. 100000 for the repayment of the principal amount of the housing loan under Section 80 C of income tax act. (Under Section 80 C there are so many financial instruments which can claim exemption, but the total amount of Exemption for all these Financial Instruments are limited to Rs. 100000/- and Additional Rs. 20000 for Infrastructure Bonds)

If you have taken loan for the house you are staying in you can claim income tax exemption up to for the repayment of Principal amount up to Rs. 100000 under section 80 C and for the repayment of Interest up to Rs. 150000 per year under section 24(b)

If the house you have purchased through loan in any other city and you are staying in the city you are working, no problem you can claim exemption for the repayment of interest and principal amount of the loan and if you are an employee and getting H.R.A and you are staying in rented accommodation you can claim the exemption of H.R.A also.

If you have taken loan for a house under construction, you can claim exemption only for the repayment of principal amount, but for the repayment of interest you can claim 1/5 of the interest (interest paid till the date of completion) each in 5 consecutive years after completing the house. In this condition you can claim HRA also.

If you are not staying in the house you have purchased through loan with any acceptable reason such as far away from you work place etc. or you have given the house on rent you can claim exemption on loan repayment and HRA. But you have to pay tax for the deemed rent if it is vacant and if it is let out you should pay tax for the rent.

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Wednesday, 17 November 2010

Online Loan Application and Loan Comparison

Most of us require loan at any stage of life such as purchase a house, for higher studies or ourselves and our children, marriage of children or any emergencies.In this internet era nobody has enough time to compare various loan facilities given by various banks and financial institutions. Nobody will go from bank to bank to collect details of loan they are providing, interest rate and other charges. In such a condition what should a person do when he need a loan for any purpose. Most of us may think that if there is any online system to know and compare loan providers. If so one can sit at his/her home and can find the institutions which provide loan as per his/her requirements.

Here one interesting site foresee the requirements of customers and arranged a wonderful comparison and application for loan through online. With that website you can input your requirements and details and can get a list of banks which allows loan as per your requirements and all the required details with EMIs and interest. It gives us all information what a borrower wants to know about loan he is going to take. Within no time we can apply through online and the concerned people will contact you and help you to complete all formalities.

They offer the minimum personal visit to concerned banks by the customer. Everything can do within the comfort of your home or office. A representative will contact you and will provide all services without any additional charges. Only recognized banks provide these loans. The service charge also is not more than that of the normal application procedure.

So whenever you need a loan just visit the site and complete the formalities. Even if you are not taking loan, you can know all details of the loan and can compare the loan and details with main banking companies, free of cost. BankBazaar.com is the site which provides all these services. The banks they are recommending are including AIG Consumer Finance, ABN AMRO Bank, HDFC Bank, Reliance Consumer Finance, Kotak Mahindra Bank, ING Vysya Bank and Deutsche Bank etc. and they expected to have more than 15 banks and NBFCs as partners in the near future.

No doubt this is a good help for those who need a loan in emergency or when purchase a property.

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Tuesday, 16 November 2010

Choose a good company for investing in Company Fixed Deposits.


Investment in Company Fixed Deposits is an interesting investment option. Companies take fixed deposit from public and them offer comparatively a high return with Fixed Deposits in Banks. If companies borrow from banks, they have to pay high interest. So company takes money from public as Fixed Deposit and gives 2 to 3 % more interest than banks offer to public for Fixed Deposits. Most of the companies are paid these interests on monthly, quarterly, half yearly or yearly basis or at the time of maturity through cheques, Electronic clearing etc.

If the interest in a year is more than Rs. 5000 they will deduct TDS.

Reserve Bank of India allows a company having ‘A’ rating to accept fixed deposit from public, but better to invest in AA or AAA schemes. If the ratings or two companies are same, go for the company with good reputation. Then go for the scheme which gives you better return. If you don’t need regular income, take cumulative option with regular income which accumulate and reinvest the regular return which automatically reinvested and ultimately you could harvest a better return and at last you will get a lump sum amount.

Make the deposit period short within 1 to 3 years, so that you can watch the rating of the company and can get back money in emergencies. Check the investor oriented service of the company which is prompt payment of interest and principal amount.

Only Companies registered under Companies Act 1956 which includes Manufacturing companies, Non Banking Finance Companies, Housing Finance Companies, Financial Institutions, Government Companies etc. can accept Fixed Deposits from public. A Manufacturing company can accept10% of the total paid up capital and reserves, if the investors are share holders of the company, unless 25% of the total paid up capital and free reserves. But a Non Banking Finance Company can accept fixed deposit which is equal to 4 times of its net fund amount, if it s a leasing company, but a loan or investment company can accept 50% of their net owned funds.

Duration of Fixed Deposits

The time period of fixed deposits from different nature of company varies. While a manufacturing company can accept fixed deposits from 6 months to 3 years, a Non Banking Finance Company can accept fixed deposits from 1 year to 5 years and a housing finance company can accept fixed deposits from 1 year to 7 years.

You should not invest, if a company allows more than 15% interest or not paying regular dividends to share holders, Companies which have a balance sheet shows loss or the companies which has low investment ratings.

Totally Company Fixed Deposits are interesting investment option, only if you invest carefully, No doubt you must handle it with care.





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Saturday, 13 November 2010

Investment Planning Service to reach your financial goals

All of us wish to grow our money and we know that it could grow only through effective investment. But most of us are not aware of the present investment scenario. In this fast developing world the investment horizon also developing and one could not know the new investment techniques easily. In such a situation the investment planning service can help you. Let us examine in which way an investment planning service could guide you.

Investment planning includes Risk profiling, Asset allocation, Port Folio Construction, Creation and accumulation of wealth through systematic investment, regular review of your investments and rebalancing the Port Folio.

An investment planning includes understanding your financial goals in your whole life and fix priorities of them. An investment planning service can help you to sort out your financial goals and priorities them and can guide you to get maximum benefit out of your investment.

The success of an investor is according to the ability to choose the right investment options. So the investor must follow the principles of investment, liquidity, safety and return. An Investor has to evaluate his or her investment with these three basic factors. Investment planning service helps you to evaluate your investments and diversify it accordingly.

The investment planning service helps you to build the suitable investment strategy. They will consider not only your individual requirements, but your age, circumstances and risk bearing tendency also.

They help you to balance the risk and returns which is suitable for your personal needs.

My opinion is that if you wish to create wealth through proper planning. The best thing is that find a reliable and good investment planning service. They will guide you and help you to attain your financial goals.

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Friday, 12 November 2010

Company Fixed Deposits, An Interesting Investment Option

According to Section 58A of Companies act a company can invite fixed deposit from public. This Fixed deposit is known as Company Fixed Deposit. Under this deposit scheme company will pay a fixed rate of interest for a stipulated period of time. These deposits can be collected by financial institutions and Non-Banking Finance Companies (NBFCs).

Advantage of Company Fixed Deposits

High Interest. The investor will get a good rate of interest from this Company Fixed Deposits. Normally the companies pay more interest than the interest rate of Bank Fixed Deposits.

Short Term Deposits. Normally this fixed deposit allows a short term option the investor can opt and the very short lock in period such as 6 months.

Income Tax. The Company may deduct tax (TDS) as per the existing income tax rules.  At present up to Rs. 5000 of interest there is no TDS. But the investor can deposit in various companies so that the interest will not be more than the TDS limit.

Disadvantage of Company Fixed Deposits

Company Fixed Deposits are unsecured, and this feature makes it a risky investment option.

How can we make it beneficial?

Choose the right company. If you can select the right company we can make this deposit an interesting investment option. You should choose the right one and should avoid the bad one.

Deposit in different companies. You should spread your deposits in a large number of companies with different type of companies. If you do so you can diversify your risk in different industries or institutions.

Deposit only a portion of investment. Invest only around 10% of your investment in Company Fixed Deposits. Choose other type of financial products. Keep in mind that does not put all your eggs in one basket.

Keep the deposit for the right period. Experts say that one year to three year duration is ideal for company fixed deposits. Fix the time period according to the rate of interest.

Keep an eye over your deposit .You must review the performance of the company time to time and decide whether the investment should be renewed or reshuffled. Watch the share prices, financial reports etc. in newspaper and other publications and confirm the performance of the company.

Totally company fixed deposit is a very good investment option for those who wish to deposit their money in any fixed income investment and the rate of interest also may be very good than all other fixed income deposit and the risk involved in it is not seriously affected by the market fluctuations.

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Thursday, 11 November 2010

DSP BLACKROCK TOP 100 EQUITY FUND

DSPBR Top 100 Equity Fund is an Open Ended growth Scheme, invests in the equity securities and equity related securities of the 100 largest corporates, by market capitalization, listed in India. This large cap fund is one of the best performed funds in the long run among other similar type of funds.

DSPBR Top 100 Equity Fund launched in February 2003. The fund manager Apoorva Shah is an experienced person to manage the fund effectively.

Minimum required investment

For Regular investors Rs. 5000 is the minimum required investment and multiples or Re. 1 thereafter, but for Institutional investors minimum required investment is Rs. 1 Crore and multiples of Re. 1 thereafter. The Systematic Investment Plan (SIP) is also there with a minimum installment of Rs. 500 and the minimum required monthly installments are 12 months.

Asset Allocation Ratio

Asset Allocation Ration for Equity and equity related securities 90% - 100% with a Medium to High risk level and for Debt, securitized debt and money market Securities 0% - 10% with Low to Medium risk.

Entry Load and Exit Load

There is not entry load for DSPBR Top 100 Equity Fund but if the redemption is before completing one year of entry there is an exit load of 1%.

Other Benefits of Investors

Systematic Transfer Plan, Systematic Withdrawal Plan, Nomination & Direct Deposit Application facilities are available, subject to applicable conditions as per the Scheme Information Document

The Fund house claimed that all Redemption proceeds issued normally within 3 Business Days and the declaration of NAV on all Business Days.

The Fund house allows Sale and Redemption of units on all Business Days at Purchase Price and Redemption Price respectively. Cut off Time for Subscription, Redemption and Switching is 3.00 p.m.

As we mentioned at the beginning of this post this is one of the most performed mutual fund in equity growth scheme. But you keep in mind the statutory warning of SEBI (Securities and exchange Board of India) is that the past performance may or may not be reflected in future.

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Wednesday, 10 November 2010

Loan Insurance or Loan Protection Insurance

You may be aware of loan insurance or loan protection insurance. An insurance which will take care of paying your loan when you become unemployed or met with an accident or due to sickness so that you could not earn your routine income. Normally this type of insurance is to protect your home loan or car loan or even personal loan also. Usually nobody think about that the time may come when they could not pay off the loan EMIs. But if you have already taken loan insurance, you won’t be worry even if you could not pay your EMIs wholly or partly.

Loan Insurance is also known as Loan Protection Insurance or Loan Payment Protection Insurance. This insurance will pay off your loan outstanding amount or the EMIs you could not pay due to any accident, or unemployment or sickness. If you lost your job or the person who taken the loan died or became disable due to an accident or sickness this loan insurance is useful. The insurance reduces the burden of paying off the loan on your family if any misshapen situation occurred. They should not pay the balance loan and can be saved from the dilemma of losing the asset you have purchased through the loan.
If your loan is a joint loan, you can go for a joint loan insurance plan to protect the outstanding payment, if anyone of you met with an accident, died or got sick.

Most of the banks charge a premium for this insurance and it varies from bank to bank. It varies as per the age of the person who take the loan (Older people should pay more premium than young people), Loan amount (For a big loan amount, premium also may be high), Period of loan (Longer period attracts more premium) and health of the person (more healthy attracts less premium).

You should take care of the following points when you go for loan insurance.

Death cover
You have to check whether this insurance is for death cover by accident only or normal death also. Some time it may cover only the accident death cover. In such a condition the premium may be very small amount. Any way you have to confirm it before taking loan insurance.

Disability cover
You should verify that whether your loan insurance cover disability of the person who take the loan by accident or by any sickness. If it allows disability cover, check whether it covers permanent disability only or temporary disability also.

Amount of Loan
You have to know that whether the insurance cover is according to the loan amount and if so, you have to assure that the insurance cover the amount of loan you have taken or more. Because the premium may be more if it is for any additional amount. And also should assure that the insurance is enough to cover you loan amount or not.

Premium Payment
Your premium payment may be lump sum or through installment with EMI. Check how they collect the insurance premium.

Medical Check-up
Ask to the bank that whether a medical check-up is necessary for the insurance or not.

Tax Benefit
Remember that you can claim the premium amount for tax exemption; because it is a life insurance premium you are paying. But if the premium is attached with your EMI you cannot claim exemption.

Anyway this loan insurance is good for those who are taking loan for purchase a house or any other assets. They should not worry about any unfortunate event which may happen to them at the tenure of loan.

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Tuesday, 9 November 2010

ASBA – Application Supported by Blocked Amount

Securities and Exchange Board of India (SEBI) has recently introduced a new process for Applying Initial Public Offering (IPO) or Follow on Public Offering (FPO) or right issue of a Company, named ASBA  (Application Supported by Blocked amount) process.  Under ASBA process, the bid amount is blocked in your account at the time of bidding.  If and when an allotment is made against your application to the extent of money due on the shares allotted, your account will be debited and the money will be remitted to the company.  Therefore, the bid amount remains in your account earning interest during the whole process period.  Your account will be debited only to the extent of shares allotted, if any, and the remaining amount will be unblocked.

There will be no refund as such and therefore the problems related to non-receipt of refund will not be encountered by you.  This is a facility extended by some self certified syndicate bankers (SCSBs) who have registered as such with SEBI.  Currently some banks have been identified as SCSB banks.(Please see the list below)

SEBI may register more SCSB (Self Certified Syndicate Bank) banks as and when they undergo the self certification process.   In case your bank is not one of the SCSB as on date/you are not dealing with any of the bank listed above, you are requested to verify with them as to whether they have got subsequently registered as SCSB.

This is a good movement that the applicant should not pay any amount until he or she get the allotment and there is no chance of excess payment in any case and no refund is required. Only thing is that we have to keep the required amount of our bid or application in our bank account and they will freeze the required amount till allotment process is over. We wont loss any interest and we should not wait for refund.

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SLName of the bankSLName of the bank
1.Axis Bank Ltd19.Kotak Mahindra Bank Ltd.
2. State Bank of Hyderabad20.Bank of India
3.Corporation Bank21.CITI Bank
4.State Bank of Travancore22.IndusInd Bank
5.IDBI Bank Ltd.23.Allahabad Bank
6.State Bank of Bikaner and Jaipur24.Karur Vysya Bank Ltd.
7.YES Bank Ltd.25.The Federal Bank
8.Punjab National Bank26.Indian Bank
9.Deutsche Bank27.Central Bank of India
10.Union Bank of India28.Oriental Bank of Commerce
11.HDFC Bank Ltd.29.Standard Chartered Bank
12.Bank of Baroda30.J P Morgan Chase Bank, N.A.
13.ICICI Bank Ltd31.Nutan Nagarik Sahakari Bank Ltd.
14.Vijaya Bank32.UCO Bank
15.Bank of Maharashtra33.Canara Bank
16.State Bank of India34.United Bank of India
17.Andhra Bank35.Syndicate Bank
18.HSBC Ltd.36.South Indian Bank

Monday, 8 November 2010

Power Grid Corporation of India Ltd. Issues FPO (follow on public offering)

Power Grid Corporation of India Ltd. Issues FPO of 841,768,246 no. of equity shares with a face value of Rs.10 each at a price to be discovered through book building process with a price band of Rs.85 to Rs.90 per equity share. Bid opens of 09th November, 2010 and closing date for QIB bidders is 11th November, 2010 and for all other bidders 12th November, 2010.

The Managers of this FPO are SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt. Ltd, ICICI Securities Ltd and J.P.Morgan India Pvt. Ltd.

FPO or Follow on Public Offering means an already listed company issues a fresh issue of securities to public or an offer for sale to the public. Here the shares of Power Grid Corporation are already listed with stock exchanges.

For retail investors and Power Grid’s own employees, there is a discount of 5% to the final price on offer and the minimum bid in a lot of 65 shares.

You can apply through the recently introduced ASBA (application supported by blocked amount) process also. Under this process, the bid amount is blocked in your account at the time of bidding.  When the allotment is made against your application, the money will be taken from your account only up to the extent of allotment made. So there is no refund is required. This is a facility extended by some self certified syndicate bankers (SCSBs) who have registered as such with SEBI. If you are the client of any of such banks and you wish to apply, we strongly advise you to consider making an application under the ASBA process.

We can hope that this FPO also will be a victory as the recent Coal India Ltd IPO

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ICICI Prudential Regular Savings Fund – New Fund Offer (NFO) from ICICI Prudential Mutual Fund

ICICI Prudential Mutual Fund has launched and new fund named ICICI Prudential Regular Savings Fund. The New Fund Offer (NFO) will be available from 15th November, 2010 to 29th November, 2010.

ICICI Prudential Regular Savings Fund is an open ended income scheme. The scheme is to provide reasonable returns by maintaining an optimum balance of safety, liquidity and yield. By investing up to 100% of assets in debt securities (including government securities), the new fund offer aims to deliver consistent performance.

Both Growth and dividend options are available and you can opt for dividend paid out or dividend reinvestment option. The default dividend option is dividend reinvestment option and the dividend option also has quarterly and half yearly dividend frequencies.

There is an exit load of 2% if the redemption or switched out is within one year of investment. The face value of one unit is Rs. 10 and the minimum application amount of 10,000.

The fund manager is Chaitanya Pande and it will be benchmarked against Crisil Composite Bond Fund Index.

There are a number of good Mutual funds from ICICI prudential Fund and we can expect a good performance from this fund also.

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Sunday, 7 November 2010

Free Mobile Connection for BSNL Landline Customers with free Home Calling Facility from Mobile

The Union Minister of State Communications and Information Technology launched a new promotional plan of BSNL that a free mobile connection to BSNL land-line customers. The scheme named “PYARI JODI” which has a dual boosting of both land-line and mobile business. This aims to connecting all parts of the nation and the call from the mobile to the land line is free of cost.

Now the land-line customers of BSNL can make unlimited local calls to their land-line or WLL number free of cost and also can call two BSNL local numbers at a reduced rate 20 paise per minute without paying any additional monthly charges. At the time of activation of this free mobile connection they will get Rs. 15 free talk value, 1000 local SMS, 1000 National SMS and 1000 MB data free.

The Minister has also launched special festive offers for BSNL 3G customers wherein all new 3G activation will get one week unlimited data download free in addition to normal freebies

BSNL provides one of the best mobile phone services to the nation and now this additional offer will get a warm welcome from the customers. Especially for villages this is a good opportunity and the popularity of mobile phone will be more in India.

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