Dear rengnara000, As u said, Most of ur funds r running below purchase price, it clearly means that u had invested in last 10-12 months only & most probably around the peak of market.

My dear friend, if market itself is down by almost 35%, & a mjority of stocks r down even more, How u can expect to have positive returns.

From a competent fund manager, The only thing in current downfall that's possible, the fund should have less downfall than the over all market. A lot of funds have done it.

Now plz. answer me r these fund managers doing bad jobs?

I'm not posting the data again, as posted by dear PCSpune ji, to support my claim.

Thanks

Ashal...

Dear N.krishnaprasad, please note, not every ULIP offers, capital protection. U may agree or disagree with the views of others here @ MMB. Invest or not to invest in ULIPs is a personal choice.

Thanks

Ashal...

Dear bckak, Do u purchased a TV or a Refrigerator? In all probability u had enquired a lot before actual buying. Which brand, which model, what r the features, the price, the after sale service, the warranty.......

After considering a lot of above factors, u finally zeroed on a TV or Ref. & purchased it.

Now comes ur MF purchasing, Had u enquired that much as in the case of TV, u were not cursing urself or feeling cheated.

I do agree, the agent mis-sold the MF to u, but at the same time u r also equally responsible for the mess where u r now.

It is an NFO, & majority of boarders here @ MMB r against investing in NFOs.

Please accept this loss as ur learning experience for ur future investment.

thanks

Ashal ...

Dear Bhavani27, Thanks for sharing the info. I already had visited 2 centers in past (some 8-12 months back), till date no student has passed out as CFP.

Anyway thanks once again for taking pain to intimate me.

thanks

Ashal...

Dear biharilalgm, The answer of ur question is itself in ur query. U r already aware, LTCG Tax is tax free for shares listed on exchanges. In ur case, SSDDB r bonds not shares, hence these bonds don\\`t qualify for Tax free LTCGs under sec. 10(38).

Plz. note, the CII for current FY had been notified by the Govt. of India. Plz. take notice of the same & calculate ur LTCGs accordingly. I already mentioned in my prev. post to u, LTCGs with out indexation \\`ll be more tax friendly to u.

thanks

Ashal...

Dear Friend, I already explained, in my prev. post, how & from where DWS is paying the Ins. prem. The reply u get from DWS people merely confirm the fact.

Actually, Once the FMC is recovered from the fund (remembered it is recovered on daily basis), the FMC is AMC\\`s own money & from this money they r paying the prem.

Thanks

ashal...

I'm unable to understand how the main content of my post got deleted. Dear Moderator, if u r reading these messages & keeping a close eye, please do needful to fix this problem, as it is also experienced by others too recently.

Coming to the post's content -
Question - From where the AMC (DWS in this case) is paying the prem. for Insurance cover?

Answer - DWS is paying the ins. prem. from the FMC (Fund Management Charges) recovered from the funds daily.

Now comes the question, how can DWS gives us free Ins.
Many of us already aware about Group Insurance Plans. DWS has taken the same from Metlife for Tax saver fund.

To explain the same, Let us assume there r 10000 investors in this Tax saving fund & the average age of investors of fund is 35 years.

If we check the prem. for a aged 35 individual policy, it is higher than the prem. charged for a group of 10000 people where average age of Gp. is 35. Why, because at the time of giving the policy, the ins. co. knows that it is next to impossible that all these 10000 people 'll die & there 'll be claim, Yes there 'll be claim from some higher age as well as lower age persons, in this case, the ins. co. is charging the prem. for average age, hence in some sense, DWS is paying higher prem. for Y'ger people to cross subsidies older people. As the risk of Ins. co. is less, the ins. co. is passing this benefit to DWS in the form of lower prem. than an individual policy.

The free ins. is provided only on the basic investment amount, hence as the fund perform better & there is increase in the over fund value of individual investor, the higher FMC 'll be recovered against the increased fund value.

The free insurance is capped upto max. 5L & as this free ins. is 5 times of investment, every individual can avail ins. upto 1L amount only. for investment above this amount there 'l be no Ins. but at the same time DWS is recovering FMC from the amount in excess of 1L also. Again this some what subsidizing the prem. of investors with less than 1L investment by the investors with more than 1L investment.

As the fund in question is an ELSS, due to lock in period, DWS is sure to get FMC at least for 3 years & during these 3 years, the investor can't do anything, no matter the fund performs or not. As there is surety of FMC as well as age of investors, DWS may get even lower prem. quote from Ins. co. (Metlife in this case) as per the age profile of investors of the fund.

I hope from all the above info, every body can understand how DWS is able to give free ins.

Thanks

Ashal
...

Dear Ashal It is quite clear that free insurance is only a gimmick. The best thing one should do is to invest in mutual funds only for INVESTMENT sake. Insurance is an added benefit. Stick to the fund only if it is performing well. If it is not, get out and forget the insurance. For insurance have enough term cover. ...

(Hope my this post does not get deleted halfway!) Dear Ashal, Thanks for your info. However just to confirm, yesterday i mailed the querry to DWS support team and I got the reply just now My Querry: ------------ Dear Customer Service Team, Thanks for your reply. However I would like to get one of my querry clarified before investing in your Tax saving fund. I observed that you are offering a free insurance with the scheme, however whether the insurance premium for the same is funded from the fund value or it is born completely by the AMC itself on its own? Plesae reply ASAP, as I need to take decision within couple of days. Regards, Anand ---------------- Reply From DWS... ---------------- Dear Sir, Please note that the cover is bourne by the AMC itself, till the time you are invested in the fund. The cover is 5 times the amount, upto Rs 5 lakhs, given by Metlife. Please also note that at the time of filling up our Common application form you will find a \\\\...

Thanks for your prompt response,Ashal. You are indeed right. We can only say that if you need to have a coronary bypass get it done only at a hospital where you have an experienced cardio-vasc surgeon. But if the hosptals in your town don\\`t have such a specialist the only option is not to undergo the surgery; in spite of all the post operation advantages. Having said that I am sure you might have done it already, but just in case you haven\\`t. I believe that Ahmedabad has quite a few FPSB approved training centers for CFPs. One opp Atlanta Bldg in Gulbai Tekra, another Opp Lions Hall in Mithakali Six Road, a third one opp Swaminarayan Temple, Vastrapur, and a fourth at Aniket Complex C G Road, Navrangpura. It might help if you can get some data on their past students, and if any of them practise in Ahmedabad. You could perhaps pose as a prospective new student trying to find the future carer prospects from past students in Ahmedaabad and thereabouts. SARVAM KRISHNAARPANAM...

28.08.2008. Many many thanks for your reply to my question. However ,SSDB, are listed on BSE and it is a long term capital gain, will it not be exempt from capital gain tax ,like other shares and securities ? Kindly reply and oblige. thanks, Biharilal Mehta. ...

I'm unable to understand how the main content of my post got deleted. Dear Moderator, if u r reading these messages & keeping a close eye, please do needful to fix this problem, as it is also experienced by others too recently. Coming to the post's content - Question - From where the AMC (DWS in this case) is paying the prem. for Insurance cover? Answer - DWS is paying the ins. prem. from the FMC (Fund Management Charges) recovered from the funds daily. Now comes the question, how can DWS gives us free Ins. Many of us already aware about Group Insurance Plans. DWS has taken the same from Metlife for Tax saver fund. To explain the same, Let us assume there r 10000 investors in this Tax saving fund & the average age of investors of fund is 35 years. If we check the prem. for a aged 35 individual policy, it is higher than the prem. charged for a group of 10000 people where average age of Gp. is 35. Why, because at the time of giving the policy, the ins. co. knows that it is next to impossible that all these 10000 people 'll die & there 'll be claim, Yes there 'll be claim from some higher age as well as lower age persons, in this case, the ins. co. is charging the prem. for average age, hence in some sense, DWS is paying higher prem. for Y'ger people to cross subsidies older people. As the risk of Ins. co. is less, the ins. co. is passing this benefit to DWS in the form of lower prem. than an individual policy. The free ins. is provided only on the basic investment amount, hence as the fund perform better & there is increase in the over fund value of individual investor, the higher FMC 'll be recovered against the increased fund value. The free insurance is capped upto max. 5L & as this free ins. is 5 times of investment, every individual can avail ins. upto 1L amount only. for investment above this amount there 'l be no Ins. but at the same time DWS is recovering FMC from the amount in excess of 1L also. Again this some what subsidizing the prem. of investors with less than 1L investment by the investors with more than 1L investment. As the fund in question is an ELSS, due to lock in period, DWS is sure to get FMC at least for 3 years & during these 3 years, the investor can't do anything, no matter the fund performs or not. As there is surety of FMC as well as age of investors, DWS may get even lower prem. quote from Ins. co. (Metlife in this case) as per the age profile of investors of the fund. I hope from all the above info, every body can understand how DWS is able to give free ins. Thanks Ashal ...

Dear Ashal Appreciate and thank you for your reply , your suggestion is very valuable and I 'll be considering same while Investing Please advise the best term policy and will CHILD plan will be much better than term policy. Please advise Thank You very much once again and God Bless all of us !! Best Regds saby...

Ashal, Thank you for those nice posts on strucutred products, i have kept it for my weekend read as its quite a heavy post which requires my full attention. BTW becoz of all these ULIPS insurance premia is going to fall by 40%, at least kotak insurance has reduced insurance premium by 40% for term cover... its because of some margin related waivers... will this translate to bigger maturities to insurance availed before this new regulation.. i mean for those who bought insurance cover before this order was passed will it mean we get more at the end of the cover?...