Investment Options:
Tax saving, Bank Investments, Real Estate, Shares and Mutual Funds
-------------------------------------------------------
Tax Savings:
Income below 2.5 lacs is tax free
80C exemption for 1.5 lacs in NPS, NSC, ULIP, ELSS
NPS- National Pension Scheme- 10% of salary or 2 lacs, plus Employer contribution
NSC- National Saving Scheme, Post office Term Deposit for 5 years
ULIP- Insurance and investment
ELSS (Equity Linked Mutual Funds) gives Tax relief on deposit of 1.5 lacs under 80C and No tax on growth and locking period is 3 years.
ULIP- Insurance and investment
ELSS (Equity Linked Mutual Funds) gives Tax relief on deposit of 1.5 lacs under 80C and No tax on growth and locking period is 3 years.
Life Insurance Premiums
Interest on home loans up to 2 lacs
Health Insurance Premium for self and parents up to Rs 25,000.
Medical allowance of Rs 15,000
Leave travel allowance Rs 25,000
Fuel expense reimbursement Rs 30,000
Newspaper, magazine reimbursement Rs 14,000
Meal coupons/ Sodexo coupons Rs 12,000
Note: Information is as on April 2017.
----------------------------
Investment Options
(1) Bank and Post Office
Bank Savings Account:
4% to 7.5% per annum returns
4% to 7.5% per annum returns
(Airtel Payment Bank gives 7.5% on Savings
Account.
Bank Fixed Deposits (FD):
Interest Rate History-
14% in Nov-01, 4% in Jan-04, 7% in Jan-06,
9% in Sep-08, 5% in Feb-09, 6.50% in
Dec-10,
8.50% in Nov-11, 8% in May-12, 7.50% in Aug-13,
8.50% in Nov-11, 8% in May-12, 7.50% in Aug-13,
Post Office Term Deposit:
7% to 7.5% per annum
Post office Term Deposit for 5 years are tax free.
Also known as National Saving Certificate (NSC).
The interest rate on 5-year NSC is 7.7% per year.
Post office saving schemes:
Company Fixed Deposits:
Invested in Company Fixed Deposit and gives addition 1% or more interest than bank
List of companies offering Fixed Deposits
Liquid Funds:
Invested in short term debt Mutual funds returns could be similar to FD rate to no locking period. List of Liquid funds...
--------------------------------------------
(2) Invest in Real Estate:
More information on Mumbai Property Investment about investing in land and documentation.
www.magicbricks.com, www.99acres.com, www.makaan.com, www.commonfloor.com,
www.zamanzar.com, www.indiaproperty.com, www.propertywala.com, www.indiaproperties.com, www.propertiesindia.com, www.gharabari.com, www.homeshikari.com, www.clapdoor.comwww.discountedflats.com,
Forums: Indian real estate, Indian real estate board, Commonfloor,
Maharashtra Real Estate Regulatory Authority (RERA)
· Returns
on residential investment could be double or tripled in 5 to 20 year time
frame.
· The
growth depends on infrastructure development in area, local demand, condition
and age of building etc.
· In
short term fixed deposits offer better returns. In exceptional cases you get
more in property.
· Property
purchase for Rs 10 lacs could be worth Rs 20 to 30 lacs in 10 years.
· On
average it gives 10% to 15% equity gain if held over longer period.
· Rental
yield would be 2-4%, The rental yield for
commercial property is usually 8-11%. Investing in a commercial property is a
very good proposition. It also offers higher capital appreciation owing to
rising demand.
Capital Gains Tax: Short Term and Long Term Capital Gains tax
If property is sold within 24 months it will have 20.8% short term Capital Gain tax to pay. However if it is more than 24 months amount of Capital Gain (profit after inflation indexation) will have few options to avoid paying tax. The amount to be reinvested as follows (maximum of 50 lacs of capital gains amount, double if the property sold was on joint name).
It can be invested in government Capital gains bonds within six months. Rural Electrification Corporation REC, National Highway Authority of India NHAI, Indian Railway Finance Corporation and Power Finance Corporation. These bonds have locking period of five years and pay 5.75% interest annually. Tax will be deducted from Interest amount. After 5 years it becomes tax free amount. Other option is to invest in another property within two years or construct house within three years.
The date from which 24 months are counted are confusing as Allotment date, Registration date or Possession date. It has been dispute between taxpayers and Income tax authorities.
Capital Gains Tax: Short Term and Long Term Capital Gains tax
If property is sold within 24 months it will have 20.8% short term Capital Gain tax to pay. However if it is more than 24 months amount of Capital Gain (profit after inflation indexation) will have few options to avoid paying tax. The amount to be reinvested as follows (maximum of 50 lacs of capital gains amount, double if the property sold was on joint name).
It can be invested in government Capital gains bonds within six months. Rural Electrification Corporation REC, National Highway Authority of India NHAI, Indian Railway Finance Corporation and Power Finance Corporation. These bonds have locking period of five years and pay 5.75% interest annually. Tax will be deducted from Interest amount. After 5 years it becomes tax free amount. Other option is to invest in another property within two years or construct house within three years.
The date from which 24 months are counted are confusing as Allotment date, Registration date or Possession date. It has been dispute between taxpayers and Income tax authorities.
Investing in Land is a very different ballgame. A plot must have a clear title and be demarcated properly. investing in a plot of sufficient dimensions and the right kind of authorised usage criteria for the area can become attractive to developers from the residential, retail, office and hospitality sectors. As an area attains more market drivers and begins to saturate, plots increase in value manifold. Also, land is cheap in most cases and represents a very good capital investment.
More information on Mumbai Property Investment about investing in land and documentation.
www.magicbricks.com, www.99acres.com, www.makaan.com, www.commonfloor.com,
Forums: Indian real estate, Indian real estate board, Commonfloor,
Maharashtra Real Estate Regulatory Authority (RERA)
-----------------------------------------------------
FD vs Equity
10,000 invested in
any one company will give return between 10% to 68% (Depends on selection of share)
1,50,000 invested in
15 Companies will give return average as 37%
(3b) Exchange Traded Funds (ETFs) are
comprised of securities traded in India. An ETF is a marketable security that
tracks an index, a commodity, bonds, or a basket of assets like an index fund.
Unlike mutual funds, an ETF trades like a common stock on a stock exchange.
ETFs experience price changes
throughout the day as they are bought and sold. An ETF is a type of fund that
owns the underlying assets (shares of stock, bonds, oil futures, gold bars,
foreign currency, etc.) and divides ownership of those assets into shares. ETFs
carries higher risk and higher risk could mean higher reward. ETFs trades like
a stock, an ETF does not have its net asset value (NAV). ETF shareholders are
entitled to a proportion of the profits, such as earned interest or dividends
paid, and they may get a residual value in case the fund is liquidated. The
ownership of the fund can easily be bought, sold or transferred in much the
same way as shares of stock. ETF shares are traded on public stock exchanges. Exchange-traded
funds (ETFs) can be a great investment vehicle for small and large investors
alike. These popular funds, which are similar to mutual funds but trade like
stocks, have become a popular choice.
Advantages
of ETFs
- By owning an ETF, investors get the
diversification of an index fund as well as the ability to sell short, buy on
margin and purchase as little as one share.
- Another advantage is that the expense
ratios for most ETFs are lower than those of the average mutual fund.
- When buying and selling ETFs, you have
to pay the same commission to your broker that you'd pay on any regular order.
- There exists potential for favorable
taxation on cash flows generated by the ETF, since capital gains from sales
inside the fund are not passed through to shareholders as they commonly are
with mutual funds.
Difference
in Hedge funds, mutual funds and ETFs.
All are popular pooled investment
vehicles in which investors entrust their money to fund managers who in turn
invest on their behalf in different kinds of publicly traded securities.
Top 5 ETFs in India
Direxion Daily MSCI India Bull 3x ETF
(INDL), 2017 YTD Return: 128.31%,
Columbia India Small Cap ETF (SCIN)
...2017 YTD Return: 64.65%
iShares MSCI India Small-Cap (SMIN)
..2017 YTD Return: 60.86%
VanEck Vectors India Small-Cap ETF
(SCIF) ...2017 YTD Return: 66.34%
Columbia India Infrastructure ETF
(INXX) 2017 YTD Return: 49.44%
Disclaimer: Investment in Shares and Mutual Fund is subject to market risk. It can go up or down according to market situation
Shares and Mutual Funds can be purchased online using 'Demat account', opend by various banks. Also new shares launch known as IPO (Intial Public Offering) can be found here.
There are some investment in blue chip companies which can be held over long period as well as some investments are speculative which are more sensitive to market news and require attention to effects it may have on equity market. Some shares can offer 15% plus return in one month which are more speculative and require good understanding of market condition and extensive reading about current affairs and effects on market.
Economic Times, Financial Times, Money control, Google finance, Equity master, Rediff Money, Screener, Investing, Livemint, India infonline, NDTV, Reuters, CNBC, Financial Express, The wire, CNN Money, The hindu, Bloomberg, Market watch, Investment Guru, Money excel, FII Investments, Markets Mojo, Investopedia, Smart Invester, Stock search, Investing answers,
Monetary Policy, Repro rate, CRR (Cash Reserve Ratio) & SLR (Statutory Liquidity Ratio), Reverse Repo rate, RBI Monetary Policies, Inflation Rate, Interest Rate, SEBI.
Forums: E-Investing, Investor forum, Trader ji, Rakesh Jhunjhunwala, Invest in India, Trade trends, Equity desk, BSE2NSE, Moneycontrol forum, Multibagger stock, Multibagger shares,
Investment Bloggers/ Pandits: Suresh KP, Rakesh Jhunjhunwala, Equity Pandits, Mahesh Kaushik, Arun Mukherji, Multibaggers, Equity Pandit, Nitin Bhatia, Porinju Veliyath,
Brokers: Raj & Co, Arcadia stock, Shilpa, Magnum, Composite investments, Anvil, Om investments, Ventura Securities, Midcapmantra,
Demat: Sherkhan, Motilal Oswal, Kotak Securities, ICICI Direct, HDFC Securities, IDBI Direct, SBI Securities, Axis Direct, Nirmal Bang, Smc Global, Aditya Birla Direct, Indiabulls Demat, Ventura Demat,
---------------------------------------------------------------------------
Investment Bloggers/ Pandits: Suresh KP, Rakesh Jhunjhunwala, Equity Pandits, Mahesh Kaushik, Arun Mukherji, Multibaggers, Equity Pandit, Nitin Bhatia, Porinju Veliyath,
Brokers: Raj & Co, Arcadia stock, Shilpa, Magnum, Composite investments, Anvil, Om investments, Ventura Securities, Midcapmantra,
Demat: Sherkhan, Motilal Oswal, Kotak Securities, ICICI Direct, HDFC Securities, IDBI Direct, SBI Securities, Axis Direct, Nirmal Bang, Smc Global, Aditya Birla Direct, Indiabulls Demat, Ventura Demat,
---------------------------------------------------------------------------
(4) Mutual Funds: Mutual Funds explanation.
Type of 'Mutual Fund':
Research before investing and monitoring Performance:
· AMC
(Asset Management Companies) collectively invest large amounts in equity and debt. There
are over 50 AMCs with over 2600 mutual funds to choose from.
Association of Mutual Funds in India list AMC offices according to cities.
Association of Mutual Funds in India list AMC offices according to cities.
· Rating
Agencies Rank/Stars: Rating by Crisil Ranks, Value Research to measure
performance
· Crisil
Ranks, Value Research, Money control, Screener.com, Associaltion of MF
amfindia.com to get more information about various Mutual funds who also have
own pages too.
· Assets
Under Management (AUM): Total Funds Managed. 5K cr funds in large and multicap and 2K cr in mid and small cap funds gives funds manager flexibility to switch funds for higher returns.
· Launch
date of fund and Performance history as 1 year, 3 year, 5 year and since inception returns history.
· Net
Asset Value (NAV) cost at launch and now. Of same mutual fund plan nav is different for Growth and Dividend regular plan and of direct plan.
· Mutual
Funds purchased from broker or bank are ‘Regular’ plans which has broker free element as commission and trail commission over period of investment. It may be .5% at time of purchase of funds but with trail commission it mounts to even 20% to 30% over 10 to 20 years. Maximum AMC and Broker fee could be deducted by fund house could be upto 2.5% which is deducted from earned profit. Brokers might suggest where they get high commission fee too.
· Mutual
Funds purchased directly from AMC are ‘Direct’ Plans and give 1% extra return as there is no broker fee or trail commission.
· Negative points: If company shares prices starts falling down
and stock exchange sets 5% lower circuit, large institutions make big loss as
the cannot quickly sell all shares.
· Mutual
fund companies cannot hold more than 30% in cash so even in negative market have pressure to
invest somewhere.
Dividend or SWP (Systematic Withdrawal Plan)
Dividend or SWP (Systematic Withdrawal Plan)
Since April 2018 Mutual Funds dividend have Dividend Distribution Tax (DDT) made of 10% tax and Cess amounting to 11.65% of profit. However if lumpsum is invested in Mutual fund and 8 to 10% withdrawal is made and fund is giving return of 12%, one can have regular income as well as fund will grow too. Tax will only be on nav increased value as profit which will be 15% in first year as Short term capital gain and from second year onwards 1 lac is exempted and over 1 lac it will be 10% Long term capital gain tax.
SWP Example: 50 lacs invested and funds generates 12% with Nav value Rs 10 and received 50,000 units. SWP of Rs 41,667 per month = Rs 5000 pa ie. 15000 (30%) in 3 years. First year profit on units redeemed tax paid will be Rs 4,428, nil in second year and when units sold in third year it will be Rs 2,493. Total tax paid will be Rs 6,921 (.46%)
Dividend on investment of 50 lacs generating 12% returns will be Rs 69,600 per annum.
Type of 'Mutual Fund':
SWP Example: 50 lacs invested and funds generates 12% with Nav value Rs 10 and received 50,000 units. SWP of Rs 41,667 per month = Rs 5000 pa ie. 15000 (30%) in 3 years. First year profit on units redeemed tax paid will be Rs 4,428, nil in second year and when units sold in third year it will be Rs 2,493. Total tax paid will be Rs 6,921 (.46%)
Dividend on investment of 50 lacs generating 12% returns will be Rs 69,600 per annum.
Type of 'Mutual Fund':
· Invest
as one off lump sum or monthly SIP (Systematic Investment Plan)
sipcalculator.com
· Best
to invest as lump sum when market is low so one gets more units. SIP balances
out.
· Invested
for ‘Growth’, ‘Dividend’ or 'SWP' plan. Dividends/ SWP as monthly/ quarterly/
annual.
· Funds
invested as Balanced/Hybrid 35% debt and 65% equity. (Sold as safe funds to increase returns debt could be of bad companies who give higher interest rate and equity in small cap to increase profit percentage. From safety of money and returns it goes as Large Cap, Large and mid cap, Multicap, Value fund, ELSS (1.5 lacs can be invested as tax exemption, locked for 3 years), Focused funds, Mid Cap, Small
cap, Diversified, Sectorial
· Balanced
gives conservative returns, Large cap give higher as moderate returns, Multicap, Mid
& Small gives highest returns as aggressive investment
strategy.
· Tenure-
Locking period and payment dates, often funds are locked for 3 years for better returns except Liquid funds which can give up to 8% return and can be cashed without penalty.
· Returns from funds can be from 10% to 30% return. Worst performing Mutual Fund will give
10% over 3 years. However in short term it can be minus too.
· Exit
load of 1% if withdraw is made in first year.
· Amount
Deposited in ELSS- (Equity Linked Mutual Funds) gives tax relief.
· SIP
(Systematic Investment Plan) Invested as monthly, gives tax relief, can be
fully or partly withdraw without penalty.
· ULIP-Unit
Linked Insurance Policy- Life Insurance cover and Policy payment. These are not good to invest in as it is two objectives grouped together which can be bought seperately.
· NFOs
(New Fund Offer): New Mutual Funds are issued regularly with NAV Rs 10
· MF
will be in minus in first two years and good returns in 3 to 5 years.
· Rule
of 72: Number of years to double amount= 72 ÷ CAGR (72 ÷ 12%= 6 years)
What percentage to double
amount= 72 ÷ No. of years (75 ÷ 5 years= 41.14%)
· Rule
114 to see triple and Rule 144 to see quadruple.
Type of 'Mutual Fund':
(a)
Amount Deposited as one off lump sum (ELSS), monthly (SIP) or yearly.
(b)
SIP (Systematic Investment Plan) Invested as monthly, gives tax relief, can be
fully or partly withdraw without penalty.
(c)
ULIP (Unit Linked Insurance Policy)- Life Insurance cover and Policy payment
(d) Fund Category as Large Cap/ Mid Cap or small cap by market capitalisation. Company market value.
Invested as: Equity- High Risk, Debt- No risk, Balanced- Medium risk.
(i) ELSS- Equity Linked Mutual Funds) Gives Tax relief on deposit of 1.5 lacs under 80C and No tax on growth. All funds are invested in Equity/Shares (Average returns 12% per annum)
Invested as: Equity- High Risk, Debt- No risk, Balanced- Medium risk.
(i) ELSS- Equity Linked Mutual Funds) Gives Tax relief on deposit of 1.5 lacs under 80C and No tax on growth. All funds are invested in Equity/Shares (Average returns 12% per annum)
(ii)
Debt Mutual Funds- No Tax relief. Average returns (Average returns per annum 8%)
(iii)
Balanced Funds: Gives Tax relief on deposit of 1.5 lacs under 80C and No tax on
growth. (Average returns 10% per anum)
Mutual Funds Contracting Terms:
(a)
Tenure- Locking period and payment dates, Often locking period 3 years except
SIP.
(b)
Dividends returns as monthly/ quarterly/ annual.
(c)
Management fee (1% to 5%), early redemption penalty, over 5 years bonus
(d)
Life Cover Value and Cover Insurance premium
(e) Tax
relief under 80c and tax free growth.
Monitoring Performance:
(b)
Assets Under Management (AUM): Total Funds Managed
(c)
Launch date and Performance history,
(d)
Net Asset Value (NAV) cost at launch and now?
NFOs (New Fund Offer): New Mutual Funds:
http://www.moneycontrol.com, https://www.valueresearchonline.com , Crisil Ranks
---------------------------------------------------------------------------
(a) SIP (Systematic Investment Plan) Invested
as monthy/ years.
Invest
as Rs 1000 per month for 5 years. Some fund give 22% annualised return in 5
years.
Franklin
India Smaller Companies Fund: SIP Rs 1000 per month for 5 years (60K) gives
return of Rs 131,000 (24%). SIP vs lump sum Mutual Fund investment. SIP vs Lumpsum.
FranklinIndia Prima: SIP Rs 1000 per month for 5 years (60K) gives return of Rs
120,000
Franklin(I) High Growth Cos fund: SIP Rs 1000 per month for 5 years (60K) gives return
of Rs 123,000 (20%)
HDFCTop 200 Fund: SIP Rs 1000 per month for
5 years (60K) gives return of Rs 99,600
DSPBR Micro Cap Fund: SIP Rs 1000 per month for 5 years (60K) gives return of Rs
138,000
MiraeAsset Equities Blue Chip Fund: SIP Rs 1000 per month for 5 years (60K) gives
return of Rs 127,000
SBIMagnum Midcap fund: SIP Rs 1000 per month for 5 years (60K) gives return of Rs
128,000
RelianceSmall Cap Fund: SIP Rs 1000 per month for 5 years (60K) gives return of Rs
127,000
RelianceEquity Opportunities Fund: SIP Rs 1000
per month for 5 years (60K) gives return of Rs 116,000 (22%)
HDFCMidcap opportunities fund: SIP Rs 1000 per month for 5 years (60K) gives return
of Rs 115,000
HDFCTop 200 Fund: SIP Rs 1000 per month for 5 years (60K) gives return of Rs 99,600
HDFCBalance Fund: SIP Rs 1000 per month for 5 years (60K) gives return of Rs
106,000
ICICIPru Focussed Blue Chip Fund: SIP Rs 1000 per month for 5 years (60K) gives
return of Rs 101,000 (17%).
ICICIBalanced Funds: SIP Rs 1000 per month
for 5 years (60K) gives return of Rs 105,000 (18%).
(b) STP (Systematic Transfer Plan) Invested as monthy/ years.
STP is a plan that allows investors to give consent to
a mutual fund to periodically transfer a certain amount / switch (redeem)
certain units from one scheme and invest in another scheme of the same mutual
fund house.
(c) ELSS Equity Linked Mutual Funds (ELSS or Tax
Saving Mutual Funds):
Returns
up to 12% and Tax saving of 1.5 lacs under 80c.
AxixLong Term Equity Fund- Nav 35.617, 17.5% annualised in 5 years
RelianceTax Saver Fund- 8% to 12% annualised in 5 years
ReligareInvesco Tax Plan- 12.3% annualised in 5 years
BNPParibas Long Term Equity Fund- 13% annualised in 5 years
Franklin
India TaxShield Fund- 13.3% annualised in 5 years
(d) Fund Category as Large Cap/ Mid Cap or small cap by market capitalisation. Company market value.
Large Cap Mutual Funds:
Mirae
Asset India Opps Fund: Returns of 22% in 3 years
SBI
Blue Chip: Returns of 20% in 3 years
Birla
SL Frontline Wquity Fund: Returns of 18% in 3 years
Quantum
Long Term Equirt Fund: Returns of 17% in 3 years
DSP
BR Focus 25 Fund: Returns of 21% in 3 years
ICICI
Pru Focused Chip Fund: Returns of 16% in 3 years
UTI
Equity Fund: Returns of 16% in 3 years
Kotak
50 Regular Plan: Returns of 17% in 3 years
Mid Cap Mutual Funds:
Aggressive Growth Mutual Funds: Carry high risk,
DSP BR Midcap Mutual Funds: Returns of 30% in 3 years
SBI Small and midcap fund: Returns of 30% in 3 years
Mirae Emerging Blue Chip Fund: Returns of 29% in 3 years
SBI Magnum Midcap fund: Returns of 27% in 3 years
Birla SL Pure Value Fund: Returns of 26% in 3 years
L&T India Value Fund: Returns of 25% in 3 years
HDFC Midcap opportunities fund: Returns of 25% in 3 years
Motilal Oswal ST Focused Midcap 30:
Small Cap Mutual Funds:
Franklin India Smaller Companies Fund: Returns of 34% in 3 years
HDFC Small cap fund: Returns of 19% in 3 years
Reliance Small cap Fund: Returns of 23% in 3 years
HDFC Small cap fund: Returns of 19% in 3 years
Reliance Small cap Fund: Returns of 23% in 3 years
(e) ULIP (Unit Linked Insurance
Policy)-Life Insurance cover and Policy payment:
(f) MIP (Monthly Income Plan) Mutual
Funds: Also SWP (Systematic Withdrawl Plan):
HDFC Prudence Fund (D): monthly 0.3% Dividend of NAV, NAV 31.355, Absolute returns 12%
BirlaSun Life Equity Fund (D): Quaterly 0.5% Rs/unit dividend, NAV 103.410.876
BirlaSun Life Income Plus (QD) Plan: Quaterly 0.21% Rs/unit dividend, NAV 12.876
BirlaSun Life MIP Wealth 25: 15.9% returns in 1 year
ICICIPru MIP 25: 11.3% returns in 1 year
UTI
MIS Advantage Plan: 14.3% returns in 1 year
Franklin
India MIP: 14% returns in 1 year
HDFC
MIP- LTP: 16% returns in 1 year
SBI
Magnum MIP
Birla
MIP II Savings 5
ICICI
Pru MIP
UTI
Monthly Income Scheme
(g) Debt Mutual Funds: Ultra Short Term
Debt funds: Liquidity 3 to 9 months:
Franklin
India Ultra Short Bonds:
DHFL
Pramerica Low Duration Fund:
Baroda
Pioneer Treasury Advantage Fund
Birla
Sun Life Treasurary Optimizer Fund:
9.18% returns in 1 year
ICICI
Pru Banking and PSU Debt Fund: 9.49% returns in 1 year
ICICI
Pru Income Opportiunities Fund: 8.36% returns in 1 year
HDFC
Medium Term Opps Fund: 8.77% returns in 1 year
L&T
Gilt Fund- Investment Plan 8.79% returns in 1 year
SBI
Magnum Gilt Fund- Long Term Plan 7.19% returns in 1 year
Tata
Gild Mid Term Plan: 8.05% returns in 1 year
---------------------------------------------------------------------------
(h) Liquid Funds (Mutual): 4% to 8% per
annum returns:
If
you need to park your money for 1 month or 6 months.
ICICI
Pru Liquid Fund:
India
Bulls Liquid Fund:
JM
High Liquidity Fund:
L&T
Liquidity Fund:
(i) Short Term Debt Mutual Funds: 5% to
8% per annum returns:
Invest
in Government securities, corporate securities, money market.
Birla
SL Short Term Treasury Optimiser Fund:
HDFC
Midterm opportunities:
Birla
SL Short Term Fund:
(j) Sector Funds:
UTI
Transport and Logistics Fund: Returns of 32% in 3 years
ICICI
Pru Banking and Financial Service Fund: Returns of 25% in 3 years
SBI
Pharma Fund: Returns of 20% in 3 years
Reliance
Pharma Fund: Returns of 17% in 3 years
Reliance
Banking Fund: Returns of 21% in 3 years
(k) FMPs (Fixed Maturity Plans) Mutual
Funds for 1-3 years, 7% to 9% returns:
Low
risk investors looking for 7% to 9% returns per annum.
(l) Arbitrage Funds: Funds invested in
Money market or Spot markets, Future markets:
SBI
Guilt Short Term Plan: 10% returns in 1 year.
ICICI
Pru Gilt Fund: 10% returns in 1 year.
(5) ETSs, Derivatives and Commodities:
Exchange Traded Funds (ETFs), are similar to mutual funds because both instruments bundle together securities to offer investors diversified portfolios. Typically anywhere from 100 to 3,000 different securities can make up a fund. Yet, the two investment types are marked by significant differences. ETFs trade throughout the trading day, like stocks, while mutual funds trade only at the end of the day at the net asset value (NAV) price.
Exchange Traded Funds (ETFs), are similar to mutual funds because both instruments bundle together securities to offer investors diversified portfolios. Typically anywhere from 100 to 3,000 different securities can make up a fund. Yet, the two investment types are marked by significant differences. ETFs trade throughout the trading day, like stocks, while mutual funds trade only at the end of the day at the net asset value (NAV) price.
Derivatives Market is future contract through Hedge funds (future prices), and Speculations.
Commodity Trading Apart from numerous
regional exchanges, India has six national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity
and Derivatives Exchange (NCDEX), National
Multi-Commodity Exchange (NMCE) and Indian
Commodity Exchange (ICEX), the ACE
Derivatives exchange ( ACE )and the Universal commodity exchange (UCX). The regulatory
body is Forward Markets Commission (FMC) which was set up in 1953. As of September 2015 FMC is
merged with the Securities and Exchange Board of India,
Gold ETF:
Currency Market-
HDFC Soveregin Gold Bonds: Buy 1 gram to 500 grams. Locking 3 years, Redemption after 8 years, 2.5% aaured interest pa. Tax free.
ETFs (Echange Traded Fund): Gold market:
ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index.
Gold ETF:
AxisGold ETF: UTIGold Exchange Traded Fund: BirlaSun Life Gold ETF (G), HDFCGold Exchange Traded Fund, SBI- ETF Gold,
Currency Market-
Foreign exchange market- Currency trading, Money market
Commodity ETF:
Petroleum, Copper, Agricultural produce
F&Os (Futures and Options) are settled on last Thursday of month.
---------------------------------------------------------------------------Petroleum, Copper, Agricultural produce
F&Os (Futures and Options) are settled on last Thursday of month.
(6) Bonds: Listed Bonds
Sovereign Gold Bond (SGB): Government of India's Sovereign Gold Bonds Scheme you can earn an assured interest rate eliminating risk and cost of storage. 2% Interest on market value plus with asset appreciation opportunity. Redemption is linked to Gold Price. Exempt from Capital gains tax, if held till maturity minimum 5 years and up to 8 years. Can be purchased online through banks.
Housing and Urban Development Corporation
SBI Bonds
Rural Electrification Corporation CGTE (Capital Gain Tax Exemption) Bonds.
Price per Bond Rs.10,000 @ 5.25% interest per annum, locking period 3 years, maximum investment 50 lacs in a financial year. Bonds can be held in Demat/ Physical form. Bonds will automatically redeem after 3 years. Interest paid annually. Interest and redemption through NECS (National Electronic Clearing Service)
---------------------------------------------------------------------------
SBI Bonds
Rural Electrification Corporation CGTE (Capital Gain Tax Exemption) Bonds.
Price per Bond Rs.10,000 @ 5.25% interest per annum, locking period 3 years, maximum investment 50 lacs in a financial year. Bonds can be held in Demat/ Physical form. Bonds will automatically redeem after 3 years. Interest paid annually. Interest and redemption through NECS (National Electronic Clearing Service)
---------------------------------------------------------------------------
(7) Non Convertible Debentures (NCD):
There
are bonds issued by companies as Secured or Unsecured NCD's, 8% to 9.5% per
annum
Muthoot
Finance NCD: Interest 9% per annum
Kosamattam
Finance NCD: Interest 10.4% per annum
SREI
Infra Finance NCD: Interest 9.5% per annum
---------------------------------------------------------------------------
(8) Company Fixed Deposits:
These
carry heavy risk, yeild can be up to 7% to 8.5% per annum. 1 to 5 years.
Shriram
Transport Finance FD- 8.25%
Bajaj
Finance FD Scheme- 8.9%, annualised yeild 10.63%
DHFL
Aahray Deeposit- 8.75%, annualised yeild 10.4%
LIC
HFL FD Scheme- 8.5%, annualised yeild 10%
HDFC
Ltd- 7.55%
Mahindra
FD Scheme- 7.55%
---------------------------------------------------------------------------
(9) PPF (Public Provident Fund: Tax free
interest, has 15 years locking period:
Deposit
from Rs 500 to 1.5 lacs tax free, paid as lumpsum or monthly. Interest rate 8.1
pa
Interest
earned is Tax free.
---------------------------------------------------------------------------
(10) Pension Plans
(a) Annuity Plans: Example (hdfc): In 10 years Plan. Deposit 2 lacs pa for 5 years= 10 lacs
deposited. In 10th year
you get option to withdraw from growth value (approx 15 lacs) one third as
Lumpsum (approx 5 lacs) plus seven thousand monthly pension, which continues to
surviving partner and finally deposited amount goes to nominee. This plan is Tax
free and No Life cover policy attached. If no withdrawal is made the monthly
pension amount would be higher.
Other Annuity Plan is deposit lumpsum 10 lacs. From 11th year onwards 1,20,000 per annum for life. Later for other partner until survival and after that nominee gets original sum plus as inheritance.
Other Annuity Plan is deposit lumpsum 10 lacs. From 11th year onwards 1,20,000 per annum for life. Later for other partner until survival and after that nominee gets original sum plus as inheritance.
(b) Super Income Plans: Pension Plan with Life
cover
Example (hdfc): In 16 years Plan. Deposit 2 lacs pa for 8 years= 16 lacs
deposited. From 9th year approximately twelve thousand rupees
as pension (1.5 lacs pa), which continues to surviving partner and finally amount
goes to nominee (approx 16 lacs). In 16th year you get option to withdraw value
one third as Lumpsum (approx 12 lacs) from growth This plan is Tax free and gives Life cover policy of 20 lacs. If no withdrawal
is made the monthly pension amount would be higher,
(c) Annuity Plans: LIC Jeevan Akshay VI
Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant.
Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant.
(d) Other Pension Funds:
UTI Retirement Benefit Pension Fund
Franklin India Pension Fund
Reliance Retirement Fund
Tata Retirement Savings Plan
National Pension System (NPS)
UTI Retirement Benefit Pension Fund
Franklin India Pension Fund
Reliance Retirement Fund
Tata Retirement Savings Plan
National Pension System (NPS)
