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Personal Finance
Tracked by: 0 Boarder
Thanks a lot Ashal and RANJAN,
When the units from the ULIP can be used to pay the premia the insurance is earned at zero cost almost of course then u stand to lose the benefits the units may get u in the long term and the aim was to invest in equities with a life cover.... all in all a great product.
Did u read HDFC ERGOS product for housing loans.... if one has a housing loan with HDFC and has been insured via ERGOS then if the person suddenly takes ill with cancer, heart attack, bypass, multipe sclerosis etc etc the entire loan is waved off... for every 1L loan i think the EMI towards this insurance will work up to Rs 150 or so and its deducted along with the EMI....here though nothing comes on return if we are hale and hearty... but such insurances are good karmas coz our contribution will be used to pay a sick person... so good karma with security is not bad either :)...
In reply to:
Ride the recession and become RICH
Posted by :
ashalanshu
Dear RN, My take on the discussion between U & Dear PCSPune -
1 MAN`S MEAT IS ANOTHER`S POISON.
It`s true for both of u. 1 is champion of FnO (of course U) & another 1 is champion of ULIPs (who else our dear PCS). But reading the messages of both of U, it seems - 1 is talking French to another one who is speaking Arabic.
(Just on a lighter notes)
What I want to say is there may a whole lot of different strategies to tackle these testing times.
Mine 1 is Pure term Insurance (if needed, otherwise scrap it), a mix of Diversified Eq. MFs, Gold ETFs & some simple instruments like bank FDs & POMIS.
I`m agree with dear Ranjan, as the ins. prem. is recovered from our fund value, this ins. is not at all free in case of ULIP. Under ULIPs there r multiple investment fund option available with varried %age of Eq. & debt from 100% Eq. to hybrid funds to 100% money market funds. The important benefit which dear PCS is pointing - u can switch over to different funds as per the market cycles without bothering about the routine hassles of taxation, brokerage etc. To make this transfer u `ll have to contact ur ULIP issuing co. either thru Phone, E-mail, online etc.
Thanks
Ashal 
Tracked by: 0 Boarder
Pcspune,
I can thank you enough. I have saved this entire thread for my review later. I think those who invest in ULIPS now will be millionares in a couple of years....
In reply to:
ULIP is it cheaper than term plan?
Posted by : pcspune
Dear RN,
You can take Cover upto Rs.6 Lacs without Medical Test if you have Completed 46 Years. If you are Running 46,You can take cover upto 10 Lacs in IDBI Fortis Wealthsurance ULIP Plan.
You can not Switch Funds online in IDBI ULIP.You have to send Request
by FAX / E- Mail ( Scanned Copy) / Personally or by Courier.
After Few Months online Switching may be Possible.
You will get ONLINE SWITCHING Facility in ULIPS of Reliance(AIP ULIP)with (52 Switches Free Per year ) & HDFC ULIPS ( 24 Switches Free Per year)if you DONT NEED High Insurance Cover ( you may get Insurance upto 30-40 Times of Annual Premium in Reliance & HDFC ).
If you are Interested mainly for Returns ( Not Insurance Cover), you may OPT for Reliance AIP Single Premium( Rs.25000 or more only once).
DONT Take any other ULIP of Reliance ( other than AIP).
P.C.Sharma
Tracked by: 0 Boarder
Dear RN,
You can take Cover upto Rs.6 Lacs without Medical Test if you have Completed 46 Years. If you are Running 46,You can take cover upto 10 Lacs in IDBI Fortis Wealthsurance ULIP Plan.
You can not Switch Funds online in IDBI ULIP.You have to send Request
by FAX / E- Mail ( Scanned Copy) / Personally or by Courier.
After Few Months online Switching may be Possible.
You will get ONLINE SWITCHING Facility in ULIPS of Reliance(AIP ULIP)with (52 Switches Free Per year ) & HDFC ULIPS ( 24 Switches Free Per year)if you DONT NEED High Insurance Cover ( you may get Insurance upto 30-40 Times of Annual Premium in Reliance & HDFC ).
If you are Interested mainly for Returns ( Not Insurance Cover), you may OPT for Reliance AIP Single Premium( Rs.25000 or more only once).
DONT Take any other ULIP of Reliance ( other than AIP).
P.C.Sharma
...
In reply to:
ULIP is it cheaper than term plan?
Posted by : radhika_nandlal
Thank you thank you pcspune for this valuable advice... i have saved it, now since i am 46 years old i cannot buy ulip? or with a medical test i can buy? I am interested in ULIPs very much now
What about ICICI PRUDENTIAL? Is it also an ULIP
Thanks.
Can i manage these ULIPs thru my iccidirect account?
Tracked by: 1 Boarder
Dear chchch, the answer is plain NO. Once invested u can`t redeemed b4 completion of minimum lock in period of 3 years.
Thanks
Ashal...
In reply to:
I sold my house, now I have to pay tax?
Posted by : chchch
(d) Whether one can withdraw prematurely from the investment in tax-free bond for utilising in purchase of a property (within a year/3 years)?
Tracked by: 1 Boarder
Dear chchch, there is the minimum Lockin period of 3 years, so once invested, u can`t redeem ur bonds prior to this lockin. If u r not sure about ur action. opt for the Capital Gains Saving account scheme option. Under this option, u can first deposit ur amount in bank & within span of next 3 years, what to do? if u intend to construct a house do it within next 3 years. If u intend to purchase ready built house, do it within next 2 years.
If u r still undecided after completion of 3 years, simply pay the LTCG tax & also Tax on the interest earned by u on ur deposit in bank. the remaining amount & interest from deposit (after pmt. of Tax) `ll be ur capital after 3 years & u can use it as per ur choice.
Thanks
Ashal...
In reply to:
I sold my house, now I have to pay tax?
Posted by : chchch
(d) Whether one can withdraw prematurely from the investment in tax-free bond for utilising in purchase of a property (within a year/3 years)?
Tracked by: 1 Boarder
Dear Ranjan, here is the answers -
1) If I want to invest more than 50 lakhs - can I split it and invest 50% in each scheme (NHAI / REC )? - The basic limit of 50L in a FY `ll apply & if the sell is done after 1st Oct. as i mentioned u can total invest upto 1C. of course u can invest in both Bonds but the basic limit of 50L per FY `ll be there.
2) Interest recd is taxable ? ( no TDS ) Yes Interest is taxable. U can opt to show it every year or in the year of receipt. No TDS `ll be there but its ur responsibility to show in ur return.
Thanks
Ashal...
In reply to:
I sold my house, now I have to pay tax?
Posted by : RANJAN
Dear Ashal
I want you to clarify the following points.
1) If I want to invest more than 50 lakhs - can I split it and invest 50% in each scheme (NHAI / REC )?
2) Interest recd is taxable ? ( no TDS )
Thanks
Ranjan
Tracked by: 0 Boarder
Before investing in diversified equity funds - Have you saved tax for this year under 80C fully ? ELSS funds give you tax benefit under 80C along with equity participation. First save tax. Then go for diversified equity funds. As Ashal has suggested you can go for any of these funds -
1) HDFC GROWTH / HDFC TOP 200
2) DSP BLACK ROCK TOP 100
3) SBNP PARIBAS SELECT FOCUS.
Invest via SIP / STP only. ...
In reply to:
Need advice - first time investor
Posted by :
kxm
Hi, I am a first time investor. I wanted to invest around 25K in mutual funds. But with the current market situation I am a little confused whether I invest the whole amount in an equity MF or I invest a small part of it in MF and keep the rest as a deposit for the time being?. HDFC Growth Fund is one of the schemes that I have come down to. Is this a good one? Also, I was planning to invest in SIP for a long term perspective say of 5-7 yrs. Could you suggest two good schemes in which I can invest?
Tracked by: 1 Boarder
Dear Ashal
I want you to clarify the following points.
1) If I want to invest more than 50 lakhs - can I split it and invest 50% in each scheme (NHAI / REC )?
2) Interest recd is taxable ? ( no TDS )
Thanks
Ranjan ...
In reply to:
I sold my house, now I have to pay tax?
Posted by : ashalanshu
Dear Friend, As per the info provided by u, ur holding period is only 2 years. I`m afraid but u can`t avoid STCG @ ur marginal Rate of Tax (10.3, 20.6, 30.9 or 33.99 as the case may be). If u don`t want to pay such high taxes, first forget to sell ur property currently. Plz. wait for 1 more year. After completion of 3 years, ur property gains `ll be eligible for LTCGs (with the additional benefit of indexation) & u`ll have following options for Tax saving.
1. Invest ur Indexed LTCG amount in TAX saving bond of REC & NHAI for a max. amount of 50L per FY. Plz. note if ur gains r between 50L to 1C, it`s advisable to sell ur property after 1st Oct. 2009 to derive the max. benefit of these bonds as within 6 months of booking ur gains, investment in bonds is mandatory & within a FY u can`t invest more than 50L. So for higher amounts if u sell after 1 Oct. 2009, u can effectively invest max. 1C Rs. - 50L in FY 2009-10 & remaining 50L in FY 2010-11.
2. Invest ur Indexed Gain amount to purchase a residential house. Plz. note u can purchase only 1 residential house. Here again u have 3 options -
A. A ready built residential house purchased already within 1 year prior to sell of ur property.
B. A ready built residential house purchased within next 2 year after sell of ur property.
C. U construct a residential house within next 3 years after sell of ur property.
In case of Option B & Option C above, it`s mandatory to invest ur Gain amt. in Capital Gains Saving account scheme in any bank & declare the same in ur IT return next year.
Thanks
Ashal
Tracked by: 1 Boarder
(d) Whether one can withdraw prematurely from the investment in tax-free bond for utilising in purchase of a property (within a year/3 years)? ...
In reply to:
I sold my house, now I have to pay tax?
Posted by : chchch
ashalanshu, Nice clarifications. However, I would like to have further information on the above.
(a) If one opts for investing index-LTCG in Tax-Free Bonds of NHAI and/or REC upto max. of Rs.50 lac, whether on maturity of bonds, the investor has freedom to use the funds on maturity as he likes?
{b) What is the rate of interest offered in these types of bonds? Is interest paid half-yearly or annually or only at maturity?
(c) What is the tenure of such bonds?
Tracked by: 1 Boarder
These bonds are for 5 years with a 3 year lock-in. Please do not forget to inform them that you want to redeem after 3 years. Remind them before 3 years are completed. Once three years are completed - it gets locked till the 5th year. At present the interest they pay is annual @ 6.25% (taxable) in April every year. There is no tax deducted at source. It is upto you to include it in your income.
PAN CARD XEROX has to be submitted by all holders. Otherwise form 60 has to be submitted. If the interest amount is more than the basic tax free amount - one has to file a return. To file a return one needs a PAN number. So it is better to get a PAN , if you already don`t have one. Max amt in any one scheme is 50 lakhs. ...
In reply to:
I sold my house, now I have to pay tax?
Posted by : chchch
ashalanshu, Nice clarifications. However, I would like to have further information on the above.
(a) If one opts for investing index-LTCG in Tax-Free Bonds of NHAI and/or REC upto max. of Rs.50 lac, whether on maturity of bonds, the investor has freedom to use the funds on maturity as he likes?
{b) What is the rate of interest offered in these types of bonds? Is interest paid half-yearly or annually or only at maturity?
(c) What is the tenure of such bonds?
Tracked by: 1 Boarder
ashalanshu, Nice clarifications. However, I would like to have further information on the above.
(a) If one opts for investing index-LTCG in Tax-Free Bonds of NHAI and/or REC upto max. of Rs.50 lac, whether on maturity of bonds, the investor has freedom to use the funds on maturity as he likes?
{b) What is the rate of interest offered in these types of bonds? Is interest paid half-yearly or annually or only at maturity?
(c) What is the tenure of such bonds? ...
In reply to:
I sold my house, now I have to pay tax?
Posted by : ashalanshu
Dear Friend, As per the info provided by u, ur holding period is only 2 years. I`m afraid but u can`t avoid STCG @ ur marginal Rate of Tax (10.3, 20.6, 30.9 or 33.99 as the case may be). If u don`t want to pay such high taxes, first forget to sell ur property currently. Plz. wait for 1 more year. After completion of 3 years, ur property gains `ll be eligible for LTCGs (with the additional benefit of indexation) & u`ll have following options for Tax saving.
1. Invest ur Indexed LTCG amount in TAX saving bond of REC & NHAI for a max. amount of 50L per FY. Plz. note if ur gains r between 50L to 1C, it`s advisable to sell ur property after 1st Oct. 2009 to derive the max. benefit of these bonds as within 6 months of booking ur gains, investment in bonds is mandatory & within a FY u can`t invest more than 50L. So for higher amounts if u sell after 1 Oct. 2009, u can effectively invest max. 1C Rs. - 50L in FY 2009-10 & remaining 50L in FY 2010-11.
2. Invest ur Indexed Gain amount to purchase a residential house. Plz. note u can purchase only 1 residential house. Here again u have 3 options -
A. A ready built residential house purchased already within 1 year prior to sell of ur property.
B. A ready built residential house purchased within next 2 year after sell of ur property.
C. U construct a residential house within next 3 years after sell of ur property.
In case of Option B & Option C above, it`s mandatory to invest ur Gain amt. in Capital Gains Saving account scheme in any bank & declare the same in ur IT return next year.
Thanks
Ashal
Tracked by: 1 Boarder
pcspune-All investors were taken for a ride by MrSandeep Sabharwal of JM Mutual Fund when he launched"The JM Small and Mid-Cap Fund"!!NAV is really really miserable!!He never used any investment formula!!He just destroyed all The Capital in the scheme and the impeccable Reputation of the JM AMC!!The Kampani`s have adopted a devil may care approach!!And so has MrSandeep Sabharwal who managed to destroy Investors hard earned money!!Will anyone ever trust MrSandeep Sabharwal ever again????
...
In reply to:
Market crashes are your friends
Posted by : pcspune
Dear ravipratap61,
Please learn the Concept of VALUE Averaging. This is FOOLPROOF Method of Earning OPTIMUM ( NOT MAXIMUM ) Profits from Mutual Funds/ Shares.
You should learn to CONTROL the EMOTIONS of GREED & Fear.
Profit BOOKING is absolutely neccessary from Time to Time even in LONG TERM Investments.
If you are Mutual Funds Investor, OPT for Dividend Payout even if you DONT Need the Money.
You can EARN GOOD Profits by Regular Investment for Long Term with Effectivr Monitoring.
P.C.Sharma
Tracked by: 0 Boarder
Dear RN, IPRU Life Ins. co. also provide ULIPs, but from the discussion between u & dear PCS, my take is to go for IDBI Welath Assurance Plan. The reason is it`s the most flexible ULIP available 2day & specially if u intend to use it more for Investment purpose & less for Insurance.
The unlimited switching benefit in this ULIP means that u can virtually transfer ur money among different funds of the ULIP on daily basis without paying extra money which is not the case with all other ULIPs. Free switches r allowed in differetn Ins. cos. on different Nos. Some offer 2, some 4, some 20+ & some 52 but it`s the only one which offer unlimited free switches.
U can`t manage the inter-fund transfer from ur IDirect acct.
Thanks
Ashal. ...
In reply to:
ULIP is it cheaper than term plan?
Posted by : radhika_nandlal
Thank you thank you pcspune for this valuable advice... i have saved it, now since i am 46 years old i cannot buy ulip? or with a medical test i can buy? I am interested in ULIPs very much now
What about ICICI PRUDENTIAL? Is it also an ULIP
Thanks.
Can i manage these ULIPs thru my iccidirect account?
Tracked by: 0 Boarder
Dear RN, My take on the discussion between U & Dear PCSPune -
1 MAN`S MEAT IS ANOTHER`S POISON.
It`s true for both of u. 1 is champion of FnO (of course U) & another 1 is champion of ULIPs (who else our dear PCS). But reading the messages of both of U, it seems - 1 is talking French to another one who is speaking Arabic.
(Just on a lighter notes)
What I want to say is there may a whole lot of different strategies to tackle these testing times.
Mine 1 is Pure term Insurance (if needed, otherwise scrap it), a mix of Diversified Eq. MFs, Gold ETFs & some simple instruments like bank FDs & POMIS.
I`m agree with dear Ranjan, as the ins. prem. is recovered from our fund value, this ins. is not at all free in case of ULIP. Under ULIPs there r multiple investment fund option available with varried %age of Eq. & debt from 100% Eq. to hybrid funds to 100% money market funds. The important benefit which dear PCS is pointing - u can switch over to different funds as per the market cycles without bothering about the routine hassles of taxation, brokerage etc. To make this transfer u `ll have to contact ur ULIP issuing co. either thru Phone, E-mail, online etc.
Thanks
Ashal ...
In reply to:
Ride the recession and become RICH
Posted by : radhika_nandlal
Anyone has a better financial plan than this?
My plan is buy one lot of any Nifty stock future as we are at the all time lows...
Then use profits from the above to pay ULIPs annual premium for the first five years
After five years when the recession is over and done with the units from the fund portion of the ULIP will take care of the rest of the premia.. so u get ur insurance free.
Anyone has other investment strategies at all time lows now.. lets post it one by one...lets begin a new thread..
Do post ur ideas to become rich please. Thanks!
Dear KXM, This is the most appropriate time to invest in Eq. MFs for long term. Also ur choice HDFC Growth is also very good. From ur 25K, First invest in HDFC Cash management fund (a liquid plus fund) & start a STP of 1K weekly in ur targeted Eq. fund (HDFC Gr. in this case). Within next 25 weeks, ur money `ll be invested & it`ll be more beneficial to u as u `ll earn some more returns from ur investments in Liquid + fund in comparison to ur money lying idle in saving account for next SIP.
Apart from HDFC Growth, u may start new SIPs in following Large cap funds for next 12 months.
HDFC Top 200, DSPBR Top 100, Sund. Select Focus,
Thanks
Ashal...
In reply to:
Need advice - first time investor
Posted by : kxm
Hi, I am a first time investor. I wanted to invest around 25K in mutual funds. But with the current market situation I am a little confused whether I invest the whole amount in an equity MF or I invest a small part of it in MF and keep the rest as a deposit for the time being?. HDFC Growth Fund is one of the schemes that I have come down to. Is this a good one? Also, I was planning to invest in SIP for a long term perspective say of 5-7 yrs. Could you suggest two good schemes in which I can invest?
