Mutual Fund Investment: What are Wealth Creation Solutions?

Mutual Fund Investment: What are Wealth Creation Solutions?

Birla Sun Life MF Wealth Creation Solutions

What are Wealth Creation Solutions?

Birla Sun Life MF  Wealth Creation Solutions aim to grow your money through equity / gold investments and are available in a range of conservative to aggressive options.

Who can benefit from Wealth Creation Solutions?

These solutions can be ideal for investors who are planning for future expenses, like higher education of children, marriage, buying a home etc.

These solutions are available in the range of aggressive to conservative options to suit the needs of the investor.
 olutions:
1. Tax Free Returns..!

 No capital gains tax (on withdrawal) if you stay invested for over a year as per current tax laws.

Invest in the long-term to overcome short-term ups and downs.

Risk is lowered..!


Mutual funds invest in many companies and funds are managed by experts; which can be considered as an alternative to direct investment in shares.

Investors are requested to consult their tax advisor before investing for individual nature of tax benefit.

The Financial Solution (Wealth Creation Solution) stated above is ONLY for highlighting the many advantages perceived from investments in Mutual Funds but does not in any manner, indicate or imply, either the quality of any particular Scheme or guarantee any specific performance / returns.

Mutual Fund: Birla Sun Life Mutual Fund.
Asset Management Company/Investment Manager:
Birla Sun Life Asset Management Company Ltd.

CIN: U65991MH1994PLC080811.
Registered Office: One India Bulls Centre, Tower - 1, 17th Floor, Jupiter Mill Compound, 841, S. B. Marg,
Elphinstone Road, Mumbai - 400013.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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Mutual Fund Investment: What are Regular Income Solutions?

Mutual Fund Investment: What are Regular Income Solutions?

Birla Sun Life MF Regular Income Solutions

What are Regular Income Solutions?

Birla Sun Life MF  Regular Income Solutions aim to preserve your money and provide regular income.

Who can benefit from Regular Income Solutions?

This is an ideal solutions for investors who are interested in alternative modes of regular income, either in present of after retirement stage, and have low propensity for risk. (Regular income is not assured & is subject to availability of distributable surplus.)

Benefits of Regular Income Solutions..!

1. They aim to preserve your money & provide regular income..!

These schemes generally invest in instruments like bonds of reputed
Indian companies and securities (bonds) issued by the Government of India which are considered relatively safe in order to generate regular income for you.

2. They aim to fight Inflation..!
 A small part is invested in equity i.e. stocks of Indian companies to help you stay ahead of inflation.


3. Tax-efficient Returns..!
You may opt for a monthly dividend option where, in addition to the growth of your invested amount, a portion of the same comes to you as monthly income which is given in the form of dividends. These dividends are completely tax-free in your
hands!

A dividend distribution tax of 28.325% is applicable and is deducted by the fund house

Mutual Fund: Birla Sun Life Mutual Fund.

Asset Management Company/Investment Manager:
Birla Sun Life Asset Management Company Ltd.
CIN: U65991MH1994PLC080811.
Registered Office: One India Bulls Centre, Tower - 1, 17th Floor, Jupiter Mill Compound, 841, S. B. Marg,
Elphinstone Road, Mumbai - 400013.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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Mutual Fund Investment: What are Saving Solutions?

Mutual Fund Investment: What are Saving Solutions?

Birla Sun Life MF (Mutual Fund) Savings Solutions

What are Saving Solutions?

Birla Sun Life MF Savings Solutions are aimed at preserving your money, providing you with liquidity and giving you
tax-efficient returns.

Who can benefit from Saving Solutions?
This is an ideal solutions for investors who have low - medium propensity for risk and high liquidity. These can be ideal for first time investors in mutual funds.

Benefits of Savings Solutions:

1. Make Inflation work in your favour..!

 Inflation affects your returns from any investment including mutual funds. But, in case of savings solutions, you can use it to your advantage - through indexation - which can help you reduce the amount on which you have to pay tax.


You can benefit from indexation, if investing for more than 1 year. Please consult your tax advisor on how to take advantage of indexation.

2. Aim to preserve your money..!

 These schemes generally invest in instruments like bonds of reputed Indian companies and securities (bonds) issued by the Government of India which are considered relatively safe.

3. Aim to provide Liquidity..!

If you need to withdraw your money, all you have to do is submit a redemption slip and your money is normally credited to your bank account within one working day. You may also opt for an online redemption facility offered by many fund houses
for added convenience.

4. Tax-efficient returns..!

 You can earn returns in the form of monthly / quarterly dividends etc. which are completely tax-free in your hands.

A dividend distribution tax of 28.325% is applicable and is deducted by the fund house.

There are various savings solutions available depending on the time period that you would like to invest for:

(A) 1 day to 3 months
(B.) 3 to 6 months
(C) 6 months to 1 year d. 1 year +

The DDT rate of 28.325% is effective June 01, 2013 and further, upto May 31, 2013 DDT rate applicable shall be 14.1625% as amended by Finance Bill/Act 2013.

Investors are requested to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future.

Investors are advised to consult their tax advisor in view of individual nature of tax benefits

The Financial Solution (Savings Solution) stated above is ONLY for highlighting the many advantages perceived from investments in Mutual Funds but does not in any manner, indicate or imply,either the quality of any particular Scheme or guarantee any specific performance/returns.stated above is ONLY for highlighting the many advantages perceived from investments in Mutual Funds but does not in any manner, indicate or imply, either the quality of any particular Scheme or guarantee any specific performance/returns.

Mutual Fund: Birla Sun Life Mutual Fund.

Asset Management Company/Investment Manager:
Birla Sun Life Asset Management Company Ltd.
CIN: U65991MH1994PLC080811.
Registered Office: One India Bulls Centre, Tower - 1, 17th Floor, Jupiter Mill Compound, 841, S. B. Marg,
Elphinstone Road, Mumbai - 400013.


Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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The best Four Credit Cards for you this Festive Season..

The best Four Credit Cards for you this Festive Season..

By Mr.Rajiv Raj, Creditvidya.com
Beginning October 1, the festive season begins.
First comes Navratri, then Dussehra, Diwali, Christmas, New Year and Pongal.
Use these credit cards responsibly to double your festive joy.
When it comes to credit cards, the options in the market are huge. All the major banks of India offer a number of credit cards, which they want to sell to the customers with their relentless marketing.
A credit card, if used smartly, can be a great financial instrument that not only builds your credit score, but also provides huge advantages over spending cash.
However, out of so many options in the market, choosing the right credit card can be a bit tricky.
There are a number of things you should see when you select a credit card. The first thing is the usage.
If you like to use your credit card for shopping, then you may want to select a credit card which offers you the maximum cash back.
Titanium and gold cards are especially chosen by those users who have high fuel consumption and so on.
Secondly, you will need to check the interest rates charged on credit cards offered by different banks. The interest rate varies from card to card and bank to bank.
 Mr.Rajiv Raj,
Creditvidya.com

It is the monthly amount that will be charged by the banks. The best thing to do is to compare different credit cards to find out the one with lowest interest rate.
The third most important thing to look for is the annual fees on the credit card. The annual fee is charged by the banks to renew your credit card every year.
Here is the list of a four credit cards you can pick from this month.

ICICI Instant Platinum Card:
 
For first time users

Citi Bank Cash back Credit Card:
For those who love cash backs

HDFC Solitaire Credit Card: 
The perfect card for urban women

HDFC Moneyback Card: 
For online shoppers

Rajiv Raj Co-Founder & Director at CreditVidya.com



The author Mr.Rajiv Raj is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.


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Mutual Fund : Why Disclosing Income may Not be As Bad..!

Mutual Fund : Why Disclosing Income may Not be As Bad..!
A BALASUBRAMANIAN, Birla Sun Life Asset Management.
When it comes to disclosure of income, there may be quite a few Indians who may have mixed feelings about paying taxes & disclosing their income.
India's income tax data shows that of a nation of 120 Crore, only 1% of population pays income tax.
Each individual must have his own plausible reason for disclosing his income or /  paying taxes.
This too, has its own repercussions and a ripple effect on his life cycle.
It is a known fact that there exists a dilemma in every decision making process. The source of this dilemma mostly springs from the state of one's mind.
This could include a mix of reasons such as emotion, uncertainty , unfamiliarity, and unpopularity of outcome, fear of questioning, societal impact, and possibly the anxiety of government scrutiny .
Not every decision can be made based on emotion and gut feeling and if so, the outcome will also be unknown.
A BALASUBRAMANIAN,
Birla Sun Life Asset Management
Let us, therefore, examine the economic value that a decision can generate. What also needs to be considered is how all aspects of the dilemma can get addressed by informed decision.
The government has created, for the Indian public, the opportunity to disclose income that was previously undisclosed for some reason or other -be it incidental, accidental or intentional.
While the government itself is not asking the reason for non-disclosure, the disclosure comes at a price which is 45% one-time tax.
Given this opportunity , it merits that the decision to disclose income be taken on the basis of the future value that it can generate.
First and foremost, the most immediate value it creates is peace of mind. This is most important in everyone's life including individuals and immediate family , and therefore, cannot be ignored.
Having said that, let us assume one discloses Rs. 1 crore of undisclosed income. On this, he/she pays Rs. 45 lakh as tax, and the balance amount of Rs. 55 lakh becomes a legitimate asset.
Effectively , disclosure converts Rs. 1crore illegitimate asset to Rs. 55 lakh legitimate asset which has more utility and can be invested in a tax efficient manner across various financial instruments, and act as a money multiplier over the long term.
The table below gives clearly the benefit that accrues to individuals is substantially higher than the tax what one pays and the value loss that exist on the non-disclosure.
Scenario 1: Undisclosed money kept idle loses value to inflation.You may wonder where is the loss in the value, but believe me, inflation is killer.
One never realises the value of the depreciation year on-year on the basis of inflation that exists.
Basically , if money is not put to economic use and lies idle in a coffer, its purchasing power goes down.
After disclosure of one's own income an individual is benefited with peaceful mind and also most importantly he has wide investment arenas to park his idle money and earn better returns.
So as below table mentions the individual now has multiple options to park this Rs. 55 lakh in various financial assets and earn superlative returns over longer term.
We have taken conservative assumptions for returns an investor could make over 10 years in various financial instruments.
All these three investments have given more than 100% returns. And again note, actively managed equity mutual funds on an average over the last 10 years have given returns in the range of 12% to 13% CAGR(compound annual growth rate), wherein your wealth would have grown at a much higher rate.
Out of many advantages, there is this inflation adjusted returns that strikes a chord in my mind.
Let me conclude by saying that the pros and cons of availing the government disclosure of undisclosed income scheme is substantially in favour of disclosure on the basis economic value that the decision can create.
This is what every savvy or smart investor do look at in every aspect of their decision making process. It is worth applying same principles here as well. One last point I would like to highlight on my personal experience.
As part of drive to increase mutual fund penetration, I travel to interior markets across India.In one such market, an investor asked me how he could invest with mutual fund as he/she has a large amount of cash. I told him that this is not possible unless he channels money to mutual funds through his bank account after fulfilling KYC (know your customer).
Is it not an opportunity for such investors as well to avail this benefit?

Author Mr. A BALASUBRAMANIAN is CEO, Birla Sun Life Asset Management. 
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Persistency Ratio - ICICI Pru.Life and HDFC Life Insurance..!

Persistency ratio -  ICICI Pru.  Life and HDFC Life Insurance..!
The historical persistency ratio of the India's  two leading life insurance companies ICICI Prudential Life Insuranc and HDFC Life Insurance.
Persistency levels measure the percentage of customers who continue with their policies after a given period of time.
In simple words, the persistency ratio tells you how many policies sold in the past are still alive and funded by the policyholders today.
Simply put, persistency ratio = No. of Clients Paying the Premium / Net Active Clients * 100.
Persistency of Life Insurance Policies, 2014-15.

This number is an important metric in insurance parlance, as life insurance is a long-term contract. In the initial years, the premium collected goes towards meeting costs. It is the subsequent premiums that start contributing to the margins.
Given its importance, insurance companies constantly look for ways to increase this ratio. A high persistency rate is indicative of satisfied customer and effective sales practice.

Now, it's quite well known, India is the 10th largest life insurance market globally and has a large unpenetrated insurance market. Thus, it is believed to be one of the leading growth sectors in India.
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Value of Rs.1 crore would have become

Value of Rs. 1 crore
 would have become..
After 5 Years 
After 10 years


FINANCIAL LITERACY
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LIC JEEVAN PRAGATI Automatic Increase in RISK COVER after every 5 years..!

LIC JEEVAN PRAGATI 
Automatic Increase in 
RISK COVER after every 5 years 


LIC's JEEVAN PRAGATI PLAN (UIN: 512N306V01)



LIC's Jeevan Pragati Plan is a non-linked, with - profits plan which offers a combination of protection and savings. 

This plan provides for automatic increase in risk cover after every five years during the term of the policy. In addition, this plan also takes care of liquidity needs through loan facility.
Benefits:

1. Death benefit
 : In case of death during the policy term, provided all due premiums have been paid, Death benefit, defined as sum of "Sum Assured on Death ", vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. 


Where "Sum Assured on Death" is defined as the higher of 10 times of annualised premium or Absolute amount assured to be paid on death i.e. 100% of the Basic Sum Assured during first 5 policy years, 125% of the Basic Sum Assured during 6th to 10th policy years, 150% of the Basic Sum Assured during 11th to 15 th policy years and thereafter 200% of the Basic Sum Assured.

This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium, if any.

2. Maturity Benefit: 


"Sum Assured on Maturity" equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.

3. Participation in Profits :

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in force. The Bonuses shall be declared on the Basic Sum Assured.

Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.

4. Optional Rider:
The policyholder has an option of availing LIC's Accidental Death and Disability Benefit Rider (UIN: 512B209V01). Rider sum assured cannot exceed the Basic Sum Assured.

For more details on the above riders, refer to the rider brochure or contact LIC's nearest Branch Office.


http://www.licindia.in/getattachment/Products/Insurance-Plan/LIC-s-Jeevan-Pragati/LIC_Jeevan_Document_05022016.pdf.aspx



http://www.licindia.in/Products/Insurance-Plan/LIC-s-Jeevan-Pragati

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LIC BIMA DIAMOND PLAN 6 Unique Advantages.

LIC of India
BIMA DIAMOND PLAN 
6 Unique Advantages.

LIC’s Bima Diamond (UIN: 512N307V01) (A non-linked, with-profit, limited premium payment money back life insurance plan)
LIC’s Bima Diamond plan offers a combination of protection and savings. In case of unfortunate death of the policyholder, this plan provides financial support for the family not only during the policy term but also beyond the policy term during the Extended Cover Period (equal to half of the policy term and beginning from the date of maturity). 

Periodic payments shall also be made on survival of the policyholder at specified durations during the policy term. In addition, this plan also takes care of liquidity needs through its Auto Cover as well as loan facility. It is a close ended plan which shall be available for sale upto 31st August, 2017, coinciding with the Diamond Jubilee Year of the Corporation.



This is New Life Insurance plan from LIC of India

https://www.licindia.in/getattachment/Products/Insurance-Plan/LIC-s-Bima-Diamond-(1).pdf.aspx
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Stamp Duty and Registration fees in Indian States

Stamp Duty and  

Registration fees in Indian States 


Stamp duty rates 

on Conveyance (Sale Deed) 


Tamil Nadu

Stamp duty   7%

Registration fees 1%



State
Stamp duty as on 31.10.2015
Registration fees
Jharkhand
4%
3%
Rajasthan
5.5% (for men) 4.4% (for ladies, other than SC/ST) (3.3% for SC/ST ladies)
1%
Delhi (UT)
4% (for ladies) 6% (for male)
1%
Haryana
3% (rural) & 5% (urban) (for ladies) 5% (rural) & 7% (urban) (for male) 4 % (rural) & 6% (urban) (joint purchase)
(max fees - Rs.15000/-)
Telangana
4%
0.5%
Gujarat
4.9 %
1%
Himachal Pradesh
4% (ladies) & 6% (men)
2% (max fees-Rs.25000/-)
Maharashtra
5% (Within Corporation limits) 4% (Within Municipality limits) 3% (Within Gram Panchayat limits) 1% additional stamp duty for all Properties except those located in Mumbai and Mumbai Suburban District
1% (max fees-Rs.30000/-)
Odisha
5%
2%
AP
5%
1%
Punjab
5% (rural) & 7% (urban) (for women) 7% (rural) & 9% (urban) (for men)
1 % (max fees - Rs.200000/-)
Madhya Pradesh
5%
0.8%
Tamil Nadu
7%
1%
Uttar Pradesh
4% (rural) & 6% (urban) (for women) 5% (rural) & 7% (urban) (for men) (Ladies discount in UP is offered only upto Rs.10 lakhs Consideration value)
2 % (max fees - Rs.10000/-)
West Bengal
6% (Municipal area upto Rs.40 lakhs value) 5% (Municipal area upto Rs.40 lakhs value) 1% (additional stamp duty if consideration exceeds Rs.40 lakhs)
1.1%
Chhattisgarh
7.5%
1 %
Karnataka
5.6% (Urban)
1%
Assam
7% (for ladies) 8% (for men)
3% (for ladies) 5% (for men)
Bihar
6% (rural) & 8% (urban)
2 %
Kerala
6%
2%
Puducherry (UT)
10% (for men) 5% (for ladies, provided the Property not transferred within the next 5 years)
0.5%



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