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Personal Finance
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I have invested in Kotak indo world infrastructure. It has already depreciated by 40%. Will this fund ever return our captal?...
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one of the worst performing fund. I have already lost 40% with in 6 months. I feel absolutely cheated....
Tracked by: 1 Boarder
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...
In reply to:
Please Advice
Posted by :
ashalanshu
Dear Bhavani27, Thanks for sharing the info. I just want to say in reply of ur post's final words
Quote," The investor who finds the process of evaluating them difficult, must render the services of a competent financial planner and take a well-informed decision accordingly."
unquote - The problem is, where r these competent financial planners, barring some respected columnists here @ Moneycontrol (Gaurav Mashruvala, Amar Pandit, Novil Navalakhi, .......) & some others who r available in metro cities only & that too for some premier clients.
for a common investor, like me till date i'm yet to find a CFP (certified financial planner, certified by FPSB) in my city - AHMEDABAD. I checked some 2-3 months back & there was not a single CFP in AHMEDABAD.
if anybody here can help me to locate one in A'bad, i'll be greatful to him.
If this is the condition in a city like A'bad, Imagine the condition of the small investor all over INDIA.
Thanks
Ashal 
Tracked by: 0 Boarder
Dear sarabjeetsethi,
One should have Life Insurance Cover Equal to 10 Times of current Annual Income.
My Prefernce for Insurance are as Follows.
- Free Insurance upto Rs.5 Lacs from DWS Tax Saving Fund
- Birla Century SIP Free Insurance upto 100 Times of Monthly SIP from
Birla Sunlife Frontline Equity Fund/Birla Sunlife Tax Relif'96 Fund.
You may Discontinue Payment of Premium after 3 years.
- Free Insurance in Reliance GROWTH Fund.
- Free Accidental Life Insurance Insurance upto Rs.5 Lacs from Principal Tax Saving Fund
Please note that Last date of Free Insurance of Birla / Reliance may be 31st August 2008.
Among ULIPS I like Metlife Smart Premier,Bajaj Allianz Unit Gain GOLD
& IDBI Wealthssurance which Offers Insurance Cover upto 10 Lacs on Premium of Rs 12000 Per year & upto Age of 75 Years.
HDFC Youngstar,ICICI Smartkid & Kotak Headstart ( Future Protect ) are Best Child Plans.
I have all these ULIPS ( Except ICICI Smart Kid).
Term Insurance is Best Option for those who are unwilling to Pay Rs.12000 Per year & may Require Cover of Rs.30-40 Lacs.
P.C.Sharma
...
In reply to:
Investment for Daughter Education ?
Posted by :
sarabjeetsethi
Dear Mr Sharma
Have LIC insurance of 4 lacs only (four diff policu of 1 lacs each)
is this sufficient for me at present age and please advise which is best term policy if i go as per your suggestion
My friend has suggested that SIP + INS is not good and the performance will wary if you invest purely in MF comparable to SIP + INS mutual fund as MF amc will give less units if one go for SIP + INS and this same is very confusing
Please advise
Tracked by: 1 Boarder
Dear Radhika,
I think there is Good Liquidity in ETF,s of Benchmark Mutual Fund.
If I remember Correctly ,you are one of Very Talented Stock Pickers/
Investors. I would like to menion that Investment in Stocks directly is most Rewarding provided you are hard worker & have Patience.
I have developed passion for Equity Mutual funds since I dont have Patience for Investing Directly in shares & waiting for Returns.
Investing in Commodities directly may be DANGEROUS ( Not Risky).
It is less Risky to Invest in Commodity Shares.
P.C.Sharma.
...
In reply to:
Please Advice
Posted by : radhika_nandlal
pcspune,
Thanks a lot for the clarification, then i will keep off ETFs altogheter... with commodity training its best to buy commodities which dont get stale lol and with nifty its best to trade large caps everyday instead of invsting in them.
Tracked by: 0 Boarder
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. ...
In reply to:
Taxation OF SARDAR SAROVAR BONDS
Posted by : ashalanshu
Dear biharilalgm, The SSDDB r listed on BSE. If u sell ur DDBs now on BSE, The LTCGs 'll accrue to u. Hence u can pay tax either @ 10.3% w/o Indexation, or 20.6% with indexation. U can opt any way which bring down ur tax liability. Ur LTCG tax calculation 'll be as under -
A. Purchase Cost in 1993-94 = 3600
B. Cost Inflation Index of 1993-94 = 244
C. Cost Inflation Index of 2008-09 = it is yet to notify by the Govt. of India but for sake of calculation i'm taking it as 590, please replace it as when actual CII for current year is notified.
D. Indexed Purchase cost = A*C/B = 3600*590/244 = 8705
E. Sell price = 50000
F. Indexed LTCG = E-D = 41295
G. Tax on indexed LTCGs = 20.6% of F = 8507
H. Unindexed LTCGs = E-A = 46400
I. Tax on Indexed LTCGs = 10.3% of H = 4779
From the above calculation, it is clear that unindexed LTCGs tax is lower for u in this case. so opt for the same.
Thanks
Ashal
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can any one suggest about this fund ...
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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
...
In reply to:
MF with free INSURANCE - GOOD OR BAD???
Posted by : ashalanshu
Dear friend, let me enter in this debate just to clear from where, the prem. of ins. co. is coming?
Here i\\`m taking the example of DWS Tax saver only, as it is the most simple product under MF+Insurance combo.
First the question, \\\\
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I know quite a few companies offering this. TLC, RKM to name a few. ULIP and that too with Network marketing are partners in crime so to say. ULIP on onw hand are so opaque and Netwrk Mktg on the other hand are unethical business technique. I wonder why is IRDA not banning companies offering schemes like these...
Tracked by: 1 Boarder
Dear Bhavani27, Thanks for sharing the info. I just want to say in reply of ur post's final words
Quote," The investor who finds the process of evaluating them difficult, must render the services of a competent financial planner and take a well-informed decision accordingly."
unquote - The problem is, where r these competent financial planners, barring some respected columnists here @ Moneycontrol (Gaurav Mashruvala, Amar Pandit, Novil Navalakhi, .......) & some others who r available in metro cities only & that too for some premier clients.
for a common investor, like me till date i'm yet to find a CFP (certified financial planner, certified by FPSB) in my city - AHMEDABAD. I checked some 2-3 months back & there was not a single CFP in AHMEDABAD.
if anybody here can help me to locate one in A'bad, i'll be greatful to him.
If this is the condition in a city like A'bad, Imagine the condition of the small investor all over INDIA.
Thanks
Ashal...
In reply to:
Please Advice
Posted by : Bhavani27
Dear Ashal:
Here is what I had posted about a week ago on this subjet on the \\`Market Outlook - Short term\\` Board in a thread The Structured Products Case in response to a cryptic post by MMB Messenger.
Posted by: Bhavani27 on (21-Aug-08 18:26 )
These are customised products that include derivatives, stocks, bonds and debentures, and some such investment strategies bindled together. Although these products were initially made available to cater to the needs of high net worth investors, they are now being offered to retail investors as well. To that end, the concept of structured products is relatively new for retail investors.
Terms like derivatives, paired trades and equity-linked debentures among others, have enticed a lot of investors into investing in these products. A strong marketing pitch by fund houses combined with fancy terms/investment strategies leads them to believe that structured products are superior to regular mutual funds. However, there are certain elements that investors need to consider before investing in structured products.
Investments in instruments like structured products should be made only after there is a clear understanding of its investment proposition, risks involved and the returns projected. If the investor can unravel the structure and can take on the risk for that additional return, then he can consider investing in them. The investor who finds the process of evaluating them difficult, must render the services of a competent financial planner and take a well-informed decision accordingly.
SARVAM KRISHNAARPANAM
Bhavani
Tracked by: 2 Boarders
Dear Saby,
In the plain Vanilla plan, the SIP contribution is the same every month like in your case Rs.6,000.
In the Growth Adjusted Plan, we are increasing the SIP contribution every year. So your investments are in the first year Rs.3,000, second year Rs.3,450 and so on. In the 12th year you invest Rs.14,000 every month. In this plan, you invest less initially but your investments are much larger during the later years.
The Vanilla plan is the safest since your initial investments have a potential to generate returns much higher than 15%. The Growth Adjusted plan is riskier since the bigger investments you make at the end do not have the time to generate higher returns. I suggest the Vanilla plan for anyone, unless their cashflow does not permit them.
Thanks,
Raj...
In reply to:
Investment for Daughter Education ?
Posted by : sarabjeetsethi
Dear Raj
Appreciate and thank you for your reply , your suggestion is very valuable and I 'll be considering same while Investing. Am very grateful to you that yoy have taken your precious time to reply to mine query, if you dont mind please explain in detail about the Growth adjusted plan which makes more sense as every year we got incriment in salary and will not hurt the pocket that much
Thank You very much once again and God Bless all of us !!
Best Regds
saby
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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...
In reply to:
Investment for Daughter Education ?
Posted by : ashalanshu
Dear sarabjeetsethi, for ur investment of 1k SIP in MFs, ur accumulated corpus after 15 years 'll be appx. 6.56L Rs. if i asume 15% avg. growth rate.
If u r salaried, most probably u w'd have PF acct. this 'll take care of a major debt part of ur portfolio. U may have PPF acct. also. apart from PF & PPF try to invest in Eq. MFs. As i mentioned earlier the expected returns. It is only an indicative return not guaranteed.
To avoid derailment of ur financial plan for ur daughter plz. insure life adequately thru multiple term policies as per ur requirement. For example if ur cover requirement for ur D'ter edu. is 20L Rs. take 2 policies of 10L each from 2 different life insurers for 15Y & 10Y term.
Plz. keep investment & insurance needs separate from each other.
Thanks
Ashal
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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?...
In reply to:
MF with free INSURANCE - GOOD OR BAD???
Posted by : ashalanshu
Dear friend, let me enter in this debate just to clear from where, the prem. of ins. co. is coming?
Here i\\`m taking the example of DWS Tax saver only, as it is the most simple product under MF+Insurance combo.
First the question, \\\\
Tracked by: 0 Boarder
Dear friend, let me enter in this debate just to clear from where, the prem. of ins. co. is coming?
Here i\\`m taking the example of DWS Tax saver only, as it is the most simple product under MF+Insurance combo.
First the question, \\\\...
In reply to:
MF with free INSURANCE - GOOD OR BAD???
Posted by : Guest
My half the post got deleted somehow, here is the remaining part...
5) I also went briefly (not in detail) through the insurance details given by AMC, and found that we need to sign a \\\\
Tracked by: 0 Boarder
Dear Mr Sharma
Have LIC insurance of 4 lacs only (four diff policu of 1 lacs each)
is this sufficient for me at present age and please advise which is best term policy if i go as per your suggestion
My friend has suggested that SIP + INS is not good and the performance will wary if you invest purely in MF comparable to SIP + INS mutual fund as MF amc will give less units if one go for SIP + INS and this same is very confusing
Please advise
...
In reply to:
Investment for Daughter Education ?
Posted by : pcspune
Dear Saby,
If you DONT Need Life Insurance, SIP in Mutual Funds is Better Option.
If you NEED Life Insurance, CHILD ULIPS of HDFC & ICICI are Better Option.
Take MAXIMUM Insurance Cover with Minimum Premium ( OPT for Monthly Mode of Premium Payment).
If you can Invest Lumpsum ( Single Premium ULIPS are GOOD & Cheap Option).
You can also Invest in any of Following Mumtual Funds by SIP to get FREE Life Insurance ( BEST OPTION )
Reliance Growth Fund
Birla Sunlife Tax Relief\\`96 Fund/Birla Sunlife Frontline Equity Fund
KOTAK Opportunity Fund
DWS Tax Saing Fund
P.C.Sharma
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