Infrastructure Bond Application Forms

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

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Thursday 26 April 2012

Reliance Dual Advantage Fixed Tenure Fund II

Reliance Dual Advantage FixedTenure Fund II - Plan C

NFO Opens on April 16 2012

NFO Closes on April 30, 2012

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Download Mutual Fund Application Forms from all AMCs

Best Performing Mutual Funds

Largecap Funds:

DSP BlackRock Top 100 Fund

ICICI Prudential Focused Blue Chip Fund

Birla Sun Life Front Line Equity Fund

Large and Midcap Funds

ICICI Prudential Dynamic Plan

HDFC Top 200 Fund

UTI Dividend Yield Fund

Mid and SmallCap Funds

Reliance Equity Opportunities Fund

DSP BlackRock Small & Midcap Fund

Sundaram Select Midcap

IDFC Premier Equity Fund

Small and MicroCap Funds

DSP BlackRock MicroCap Fund

Sector Funds

Reliance Banking Fund

Reliance Banking Fund

Gold Mutual Funds

Relaince Gold Savings Fund

ICICI Prudential Regular Gold Savings Fund

HDFC Gold Fund

Ways to invest in Gold - Which is best option?

In recent years gold has delivered exceptional returns. In a span of about 6 years — from 2006 to 2011 — gold has given an average return of an "incredible" 29% per annum. Therefore, it is but natural to be attracted towards gold. But let's not forget history. In 1980, gold prices jumped from 300 $/oz to 600 $/oz due to Gulf crisis. But soon thereafter fell to about 450 $/oz in 1981 and then NEVER crossed the $450 mark until 2006. In other words, gold gave ZERO returns over a period of nearly 25 years. The question, therefore, arises — are we going to witness something similar once this worldwide financial crisis is over? Is this a bubble that will burst? The answer, unfortunately, will be known in the future only.

Therefore, caution is advised, if you intend to invest in gold — especially now when it is trading at historic levels of 1600-1800 $/oz. However, from the asset allocation point of view, some portion of one's portfolio should be in gold. Accordingly, let us explore the different avenues available today to invest in gold.

a) Physical gold from jewellers/banks
Buying physical gold from jewellers has been the traditional way since centuries. And within physical gold, jewellery has been the most common form of purchase. The balance, in relatively small quantities, has been the gold coins and bars.

Recently, banks too have started selling gold coins/bars.

b) Gold ETFs
Gold ETFs are mutual fund schemes that invest only in gold. Thus it is as good as holding gold; except that it is held electronically. Generally 1 unit of Gold ETF is roughly equivalent to 1 gram of gold and hence its price is also roughly equal to price of 1 gram of gold. You can buy a minimum of 1 unit of Gold ETF.

Recently, a fund-of-fund (FoF) type of scheme has been launched that invests in Gold ETFs. There is no difference per se, except that these funds do not require a demat account and also enable an investor to do systematic investment planning (SIP), which is not possible with ETFs.

c) Equity-based Gold Funds
These are mutual fund schemes that — instead of investing directly in gold — buy the equities of companies engaged in mining, extraction, processing and marketing of gold.

d) e-Gold
Launched recently by the National Spot Exchange, e-gold is also an electronic form of holding gold — except that herein you are directly the owner of gold whereas in Gold ETF the Asset Management Company is holding the gold (of course, on your behalf).

Unlike Gold ETF, e-Gold also offers the facility of physical delivery. However, given the additional costs involved viz. delivery charges, VAT and octroi, it may be better not to opt for physical delivery.

e) Gold Futures
This is just a short term product useful mainly for 'trading' in gold and not 'investing' in gold. Hence, it is kept out of the purview of this article.

Which option to choose

Given this wide variety of options, it is but natural to ask — which amongst these is the best alternative to buy gold?

If you intend to buy gold as jewellery for personal use, then of course, there is no option but to go to a jeweller. However, it may be noted that heavy making charges involved in jewellery will eat into the returns, if you use it as an investment.

And if bars and coins are desired, jewellers would comparatively be a better option as (a) their charges are generally lower than banks and (b) as on date banks can only sell gold — they cannot buy it back.

But if gold is being bought for investment purposes, holding it electronically has many advantages over physical holding.

• Low cost : To buy Gold ETF or e-Gold, you have to pay only the brokerage charges, which are usually around 0.5%. Vis-à-vis this, you may have to shell out anything between 10 to 20% as premium and/or making charges if you buy physical gold.

Of course, for ETFs you will have to incur the fund management charges (about 0.5-1%) every year, whereas e-gold and gold kept at home with no insurance could mean zero holding cost.

• Transparent pricing: For ETFs and e-Gold, the rates are linked to the international prices. But price of physical gold invariably varies even across various jewellers and banks within the same city. Thus, there are chances of paying more than the international price if you are buying gold from your local jeweller or banker. Moreover, even at the time of selling, you may have to take a large cut, especially if you sell to a different jeweller.

• Purity: Gold ETF and e-Gold are of the highest purity and duly certified. But for jewellery, you have to trust your jeweller.

• Convenience: To buy Gold ETF or e-Gold, just a phone call to your broker or the click of the mouse is sufficient. You don't have to personally visit the jeweller/bank.

• Security: No one can steal your Gold ETF/e-Gold units. Physical gold, however, carries high risk of theft.

• Capital Gains Tax: In case of physical gold, the long-term capital gains tax becomes applicable only when the holding period exceeds 3 years. This limit is just 1 year in case of Gold ETFs. However, e-Gold is treated as a long term asset only after 3 years.

• Wealth Tax: Physical gold attracts Wealth Tax but Gold ETF is exempt. However, E-Gold attracts Wealth Tax.

So there is a trade-off between Gold ETF and e-Gold. Though e-Gold works out cheaper than Gold ETF as there are no fund management charges (and, depending on your broker, possibly lower brokerage charges also), it is taxable under Wealth Tax and it becomes Long Term Capital Asset after 3 years.

Accordingly, whether Gold ETF is good for you or e-Gold, will be determined by your investment amount, time-frame and applicability of Wealth Tax.

As regards the other options:

Fund-of-Fund schemes in Gold ETFs are slightly expensive as, apart from the annual fund management charges of the ETFs, you also have to bear the annual fund management charges of the FoF scheme. Therefore, if feasible, it is better to invest directly into Gold ETF rather than take the Fund-of-Fund route.

Equity-based gold funds are riskier than gold ETFs/e-gold as there is an added element of equity risk in such funds. Moreover, there are no listed companies in India associated with gold. Hence, these funds have to invest in the international market. Therefore, these funds are essentially global funds; susceptible to currency-risk apart from equity-risk and gold-price risk. Given the substantially higher risk element, such funds ideally suit investors with high risk appetite. For the vast majority, however, buying Gold ETFs/e-Gold would be a more prudent option.

Concluding, therefore, Gold ETF and e-Gold would be the most preferred options amongst the various alternatives.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Invest in Mutual Funds Online

Submit filled up application Collection canter near you

What Is The Difference Between Tax Free Bonds and Long Term Infrastructure Bonds?

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The time of investing under schemes which help you save tax is approaching. Which is why people have started exploring new investment avenues which can reduce there taxable income. 'Tax Free Bonds' and 'Long Term Infrastructure Bonds' are two good investment options available which can help you save tax. But most of the people do not know the difference between both these terms and how much one can save by investing under these investment alternatives. So lets have a discussion to understand the difference between 'Tax Free Bonds' and 'Long Term Infrastructure Bonds'.

What Are Tax Free Bonds?

Tax free bonds are bonds issues by Government entities, to arrange funds for building country's infrastructure. Few designated entities which issue tax free bonds in India includes National Highway Authority Of India (NHAI) tax free bonds and PFC. These bonds generally offers a return of around 8% and With a maturity period of around 10 to 15 years.

What Are Long Term Infrastructure Bonds?

Long Term Infrastructure Bonds are bonds issues by

Industrial Finance Corporation of India Ltd.

Life Insurance Corporation of India

Infrastructure Development Finance Company Limited

A Non-Banking Finance Company (NBFC) classified as an Infrastructure Finance Company by the Reserve Bank of India (RBI)

In 2010, the government of India introduced a new section under Income tax act 1961 i.e section 80CCF. This section had been introduced to offer additional income tax deduction on investment up to Rs 20,000 in the financial year 2010-11. This deduction is over and above Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.

Exemption & Deduction Through Tax Free Infrastructure Bonds & Tax Saving Infrastructure Bonds Under Section 80CCF

Tax-Free Bonds	Tax-Saving Bonds
Investment under tax free infrastructure bonds is taxable	Investment under tax saving infrastructure bonds is taxable (deduction upto Rs 20,000 allowed for FY 2011-12)
Interest earned on tax free infrastructure bonds is not taxable (tax free).	Interest earned on tax saving infrastructure bonds is taxable annually.
Tax free bonds offers reasonable returns	Tax saving bonds offers better returns

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Invest Mutual Funds Online

Download Mutual Fund Application Forms from all AMCs

Some of the Top performing Mutual Funds are

HDFC Top 200 Fund

ICICI Prudential Dynamic Plan

DSP BlackRock Top 100 Fund

Birla Sun Life Front Line Equity Fund

Reliance Equity Opportunities Fund

IDFC Premier Equity Fund

SBI Magnum Contra Fund

Sundaram Select Midcap

UTI Dividend Yield Fund

Early start to savings and investing helps for a life long financial well being

Workers who start saving in their 20s and 30s can benefit from the magic of compounding and can see through the ups and downs of a stock market An early start also is a very effective strategy if you're worried about how much you can set aside

YOUNG investors spooked by market volatility are continuing to shun equities. But, is that any reason not to be thinking about saving for a secure retirement at a young age?

Absolutely not. A survey by Reuters of several dozen top retirement experts reinforces the importance of starting early for this simple reason: Time is on your side. Workers in their twenties and thirties have plenty of time to benefit from the magic of compound returns and to allow the market to bounce through its usual ups and downs.

Here are the most important steps young savers can take to build retirement security: Start early, start small: If you read no further in this article, absorb this point: Above all else, get an early start. Nothing will have a greater impact on your success, due to the effects of compound returns over time. This will be true if historical market returns continue — even if you start small and even if there are bumps in the road. "A retirement account contribution of $5,000 today at age 23 will be worth nearly $300,000 when you retire at age 70, assuming a 9 per cent return," notes Bob Morrison, a financial planner in Denver.

An early start also is a very effective strategy if you're worried about how much you can set aside.

Vanguard Investments tested scenarios and investment strategies for investors age 25, 35 and 45, aiming for a retirement age of 65. The investor who starts at age 25 with a moderate investment allocation and contributes 6 per cent of his salary will finish with 34 per cent more in his account than the same investor who starts at 35 -and 64 per cent more than an investor who starts at 45.

Put another way, the 35 year old would need to boost his contribution rate to 9 per cent to achieve the same result as the 25year-old starter who was saving 6 per cent.

Save as much as you can: Starting early may permit a lower rate of saving — but, that doesn't mean you shouldn't put away as much as you can handle comfortably.

Vanguard found that the contribution rate — along with the early start — has a much larger impact on retirement success than market returns.

It's a matter of controlling what you can control. Your timing and investment rate both have a much larger effect over time than what the market does. Higher contribution rates also are useful if you're scared by stock market risk and prefer a less aggressive portfolio.

Vanguard found that a retirement saver starting at 25 saving 9 per cent of salary annually with a moderate allocation finished with 13 per cent more than by contributing 6 per cent in an aggressively-invested account.

Don't cash out: Don't cash out your 401(k) when changing jobs, no matter how small the balance.

This interrupts the flow of compound returns and it's very difficult to make up lost ground over time. Instead, roll over the account to your new employer or a low-cost standalone IRA, or leave it in place if it's a good plan.

Get the match: Make sure to contribute enough to max out any matching contribution from your employer; otherwise you're leaving free money on the table. Research by Aon Hewitt found that 43 per cent of workers in their 20s contribute to 401(k) at rates too low to capture the full match, compared with 29 per cent of all workplace savers.

At a time when we're struggling to get 1 per cent returns on CDs, young people are foregoing a 100 per cent rate of return here. It's a huge mistake.

Monitor fees: The total cost of workplace plans vary widely — anywhere from well below 1 percentage point to a whopping 5 per cent. Over time, fees can take a big bite out of returns. Wherever possible, seek out low-cost index funds within your workplace plan; if no low cost options exist, your plan may offer the option of a 'brokerage window' that allows you to buy and trade whatever stocks, mutual funds or ETFs are offered by your plan's vendor.

Likewise, if your employer's plan offers a target date fund option (TDF), don't assume this is your best option. TDFs can help by allocating your investments in an age-appropriate way, but many carry higher costs.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

Wednesday 25 April 2012

What You Need to Know Before Claiming Tax benefit on LTA

Come January it is time to claim your annual reimbursements such as medical allowance and leave travel allowance. These reimbursements are as good as tax savings. The difference being that you submit the required bills and treat them as tax-free income. Under Section 10 (5) of the Income-Tax Act, an employee can undertake a trip within the country by claiming earned leave against it. The employee can claim an exemption for the amount. The underlying assumption here is that the employee's salary has the LTA component as a pert of his/her salary package. This monetary component covers the travel related expenses such as air/train/ bus tickets or a rented vehicle. However, you cannot claim any expenses incurred on lodging and other allied expenses under LTA.

Apart from the employee, LTA covers such expenses of spouse, children as well as dependent parents and siblings. However, this exemption is limited to two children born on or after October 1, 1998. The restriction is not applicable to children born before this date.

An employee cannot claim this tax benefit every year. It can be claimed only twice in a pre-defined block of four calendar years. The claim can be in alternate years or even consecutive years. The present block started from January 1, 2010, and will last until December 31, 2013. You can carry forward one journey to the next block. However, this has to be utilised in the first year of the new block.

The claim amount is either the bill amount or the amount set by your employer, whichever is lower. If the amount of bills claimed is lower than the LTA component in your salary structure, the balance will be taxed as per your income tax bracket. In addition, there are a host of other nitty-gritty that need to be taken into account. For example, if you have opted to fly to the destination, only the amount equal to the economy class airfare of the national carrier by the shortest route to that city would be allowed as deduction.

This apart, if you are travelling by road or rail, the cost of first class air-conditioned ticket to the destination by the shortest route would be considered for exemption. In case you are travelling to several places, the destination farthest from your residence will be taken into account for calculating the exemption amount.

You have to submit the LTA form along with the copies of original tickets and travel bills to the company to file a claim. If you miss out on filing a claim at your company, you can claim for this exemption at the time of filing your income tax return and avail of a tax refund later. But that would make it a cumbersome and long drawn procedure. However, the New Direct tax Code (DTC), if implemented, will take away all deductions like HRA, LTA and medical allowance, currently allowed under Section 10 of the I-T Act.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

Consider claims ratio of insurer before buying a policy

THERE are several points that need to be considered and analysed while selecting an insurance policy.

This would mean that there are a lot of considerations that go into the entire decision-making process as far as the selection of the insurance company and policy are concerned. But, what should also become a part of the decision-making process is the manner in which the claims are paid or handled, and, hence, this is something that needs the attention of anyone who is buying insurance.

Unless, this is done, there could be a situation where the entire effort of buying a policy is wasted if the claims experience is not sound.

Claims Ratio: One of the ways by which an investor is able to track the entire process is by looking at the data that is available for various insurance companies.

Among the statistics that are released by the insurance regulator, the Insurance Regulatory and Development Authority (Irda), there is information that covers the claims paid or the claims settlement ratio.

This ratio is nothing but the percentage of claims that are actually paid by an insurance company, once they are received from policyholders. So, a claims settlement ratio of 90 would indicate that the company has paid 90 claims out of every 100 claims received.

While a higher claims ratio is a good thing for the policyholder, there are several other factors that need the attention of the investor so that he analyses the right information. Understanding the policy: A reason why there are often some problems with respect to a claim settlement is due to the fact that the policyholder has a misunderstanding of the policy details. Usually, there has to be a complete reading of the features of the policy, and, then, these needs to be acted upon so that there is a proper way in which the entire situation is handled. In reality however, there is not much interest that is actually shown when a policy is taken and the policy document is just kept aside. Action is often taken based on the understanding of the policyholder, which might not have been verified with the actual details of the policy. This could mean that it could be too late to do anything about it and the claims are likely to be rejected.

Traditional policies: A significant factor that also needs attention is the type of policies that are available.

Take traditional policies for example, where there is more of a savings element involved, and in such a case, the completion of the necessary time period of the policy will lead to a position where the amount is likely to be settled. This also might reduce the scope of disputes because there is a payout on the policy that does not need much attention of adhering to some technical conditions.

On the other hand, there are chances that death claims could come under a detailed scrutiny, and, here, the scope of the disputes could be higher.

Exclusions: The exclusions that actually figure in the policy are some of the key elements that need consideration because these could be the main reason why the policy payment might not be paid. So, there are conditions like suicide within a specified time period of taking the policy that is not covered or death due to specified pre-existing conditions that are not covered for a specific time. Another reason why a lot of claims are rejected is due to the fact that the required information that needs to be provided at the time of taking the policy is not provided or some of the information is actually held back or wrongly provided, and in such a situation, the individual will find that the chances of the claims being rejected are quite high.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

Birla Sun Life Short Term

The erstwhile Birla Sun Life Income has had its share of ups and downs. In the recent past, 2006 - 2008 was a great run. After hitting a rocky patch for two years, it was once again a winner in 2011.

Though Certificates of Deposit are the fund's favourite, at times a high allocation to G-secs is apparent - a 68 per cent allocation in October 2009 is a case in point. If one looks at the average maturity, this fund can well be referred to as a dynamic one. Though the maturity has been on the lower end in the past year, there have been instances when the fund has been opportunistic enough to take aggressive maturity bets. Between December 2007 and February 2008, the average maturity was around 15 years (thanks to the huge allocation to G-Secs).

Later that year, it again shot up to 14 years. This helped the fund impress in the December 2008 quarter but was punished for its aggressive stance in the very next. Its expense ratio is among the lowest in the category.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information