SUKANYA SAMRIDDHI YOJANA

 

As a part of Beti Bachao Beti Padhao campaign Introduced by Prime Minister Narendra Modi, Sukanya Samriddhi Yojana helps you to create wealth for your daughter, for their education and marriage expenses.

SUKANYA SAMRIDDHI YOJANA Features

• You get fixed interest rate of 9.1% along with tax benefits.
• Matures exactly after 21 years from the opening date or when your daughter gets married, whichever is earlier.
• The interest plus the maturity amount is Tax Free!
• Minimum investment needed is Rs.1000

• Eligibility:Parents or the legal guardians of a girl child, who is upto 10 years of age, can open the account in the girl's name. Up to December 1st 2015, if the girl child was born on or after December 2, 2003, a grace period of 1 year was given for the account to be opened.
• Interest rates:The interest rate fixed under this scheme is 9.1% along with tax benefits. However, this rate is subject to change every financial year.
• Maturity:This account matures exactly after 21 years from the date the account was opened or when the girl gets married, whichever is earlier.
• Deposit:the minimum amount that can be invested in this account is Rs. 1000/- and maximum amount is Rs. 150000/-. The deposit is to be made for only 14 years, you do not have to deposit any amount after that. However, the amount in the account will earn on the applicable interest rates, till the remaining 7 years or till the girl gets married.
• Tax:At the time of launching this scheme, the deposits in the account could be claimed as deductions, under section 80C. But this year, the interest as well as the maturity amount received is tax free. Though these benefits will be reassessed every year

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

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How to reduce your Home Loan Interest Rates

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For existing home loan borrowers, there are options available to reduce the high interest burden.

Lenders are aggressively reducing interest rates on new home loans.

But what if you are an existing borrower? Those who have taken home loans before April 2016 are still paying a higher interest as their loans are either base rate-linked or benchmark retail prime lending rate (BRPLR)-linked. The options before you are as follows.

If bank is the lender

One-time switch to MCLR: You can switch from a base rate to MCLR or marginal cost-offunds based lending rate. The latter is more dynamic as it is directly linked to repo rate and allows you to enjoy the change in interest rates faster. In the current cycle of lower interest rates, it makes sense to shift to MCLR as a downward change in repo rate will lead to lower MCLR. However, the opposite also holds true. In case of an upward surge in rates, the increase will be passed on to borrowers faster

There is also a cost involved. Banks charge a conversion fee of around 0.5% on your outstanding loan amount, plus taxes. For instance, if your home loan outstanding is `20 lakh, the conversion fee would be around `10,000, plus taxes. Most importantly, switching to MCLR is a one-time option, you cannot revert to base rate again. And once you choose an MCLR rate, you cannot reset it for the next one year.

If loan is with NBFCs

Reset to a lower rate: The MCLR system doesn't apply to housing finance companies (HFCs) and non-banking financial companies (NBFCs). So, if you have taken a loan from either, you can reset your interest rate by paying a conversion fee.

HFCs and NBFCs usually do not change the base or BPLR rate, they change the spread, which results in an overall reduced rate (actual interest rate = base rate +spread). For instance, a lender with a base rate of 16% and a spread of -6%, will allow you to change your spread to say -7%. This would result in a reduced rate of 9% [16% + (-7%)] than the earlier 10% [16% + (-6%)]. The conversion fee will vary from lender to lender. Also, unlike with banks, you can reset your interest rate any number of times.

Once you opt for a reduced interest rate either with banks or NBFCs, you have the option of maintaining the same EMI or lower the loan tenure and vice versa. In case you choose the option to lower the EMI, you would be required to provide new ECS mandatepost-dated cheques.

Cost-benefit analysis

Before taking the plunge, calculate the total cost you are incurring to reduce your interest rate, and the savings you are making in the process. If the fees are higher than the savings, it doesn't make sense to switch or reset. Account for the total cost--conversion fee plus taxes. Look for at least 25 bps difference in interest rates.

Also, consider the remaining tenure of your loan. When the balance tenure is only a few years, it is not advisable to switchreset as the bulk of the interest component would have been paid and EMI would constitute mainly the principal

Next, check on the spread being offered by the lender. "Lenders can't lend below MCLR or base rate, but if you have a good credit history and track record, you can negotiate on the spread

You also need to look at the charges. They vary from lender to lender and can be negotiated.

Refinance options

If the deal with your existing lender isn't lucrative, you could consider refinance or balance transfer option. However, it is a lengthy process. It is like getting your loan approved all over again. Refinancing can be costly too.Various fees of the new lender can be up to 50 bps of the loan amount and then there is the mortgage fee plus taxes. If the processing and transaction fee is less than the savings on the interest rate difference (between existing and the new lender) for one year, it makes for a case to switch to a new lender. If there is a minimum difference of 75 bps between the interest rate offered by a new lender compared to existing lender, refinancing makes sense. That too only for loans with residual tenure of more than 7-10 years

So the choice between refinancing, switching or resetting a loan rate depends on the outstanding amount and tenure, the difference in rates and the amount of time you have to get the job done. As interest rates may not remain low for ever, make the most of current low rates.

Birla SunLife Balanced Advantage Fund

Birla SunLife Balanced Advantage Fund follows a dynamic asset allocation investment strategy primarily based on market valuations which helps in capturing the right opportunity. Equity markets will inevitably experience bouts of heightened volatility. These setbacks to market confidence, can result from numerous factors - domestic or global; ranging from economic uncertainty, corporate results, monetary or fiscal policy changes, financial contagion or geopolitical tension. It is normal for stock markets to react to the economic, political and corporate environment.

 

Volatility refers to price fluctuations in a security, portfolio, or market segment during a fairly short time period—a day, a few weeks, a month, a few months, and maybe even a year. Such fluctuations are inevitable in nature. However if one is investing for the long-term, volatility is not a problem and can even be your friend, enabling you to buy more of a security when it's at a low point.

  

Key Highlights:

      PE driven dynamic asset allocation – Solves the dilemma of selecting the correct asset class

      Emotion-free investing – Allocation and rebalancing decisions in this fund are well-defined and tested processes that removes biases

      Equity Taxation – Invests in both equity & debt asset classes, but seeks to maintain gross equity exposure of 65% at any given point in time

      Regularity of income – Endeavours to provide month-on-month tax-free dividends

      Fund for every market cycle – Suitable for investors looking for stable risk-adjusted returns over the long-term, irrespective of market conditions

 

Fund asset allocation update: The net equity exposure for the fund as on April 2017 is 42.12 and the trailing PE of S&P BSE 100 was 24.83

 

Volatility is your friend, not foe Invest Online

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund

Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

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Health Policy Issues

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Health Insurance is no longer an option but a dire necessity. Fortunately, a variety of health insurance options are available in the market that provide comprehensive deals that take care of all your needs.

Although, thorough research is the key to finding the best health policy, there are some factors that can make your best buy a troublesome affair to continue with: spike in renewal premiums, missing renewal reminders, last moment cash deposit in cashless treatments, and so on and so forth.

Sudden hike in renewal premiums

According to many experts, a sudden hike in health insurance premium is one of the biggest concerns for existing customers. Although, it's understood that pricing of premiums increases with age and medical advancements, the sharp hike in renewal premiums can easily make renewing of premiums unaffordable for customers.

Recently, Mint received a letter from a 54-year old reader stating that his renewal premium increased from Rs 19,212 to Rs 26,524 for an insurance of Rs 6 lakhs. Unfortunately, ageing people don't have any other option but to continue with the new premiums. Also, porting to a different insurer becomes quite a difficult task if you've already made claims on your policy or are suffering from an illness.

Missing renewal reminders

There are no regulations that make it mandatory for insurance companies to send regular reminders to the customers. However, due to technological intervention, service providers have taken it up as their added responsibility to send regular reminders for better customer service and experience. Hence, whenever you get a new policy, all the details will be shared with you on your registered email address as well as timely reminders will be sent to you (which can start from a week before the actual payment date). These reminders prove to be of great help as health policies are long-term investments and you need to renew them every year.

 In case, you miss it even for a single year, it will result in forfeiture of your existing health insurance and you'll need to buy a new policy. Also, if you have a health condition or issue, the new insurer is going to factor-in the condition before issuing the policy.

As per experts, almost 20-30% of renewal reminders remain undelivered to the customers. This phenomenon occurs due to the fact that insurers haven't got their database fully updated or might be their systems aren't geared for systematic follow-ups. However, few cases also happen deliberately on the insurers' part where customers who have made huge claims often don't receive the reminder.

Not so-cashless option

It's important to understand that the insured person can end up paying some portion of the medical bill from his/her own pocket. Health policies come with deductibles, under which the insurer would pay up to 90% of the bill and the patient will need to pay the remaining part on his/her own. While in some cases, hospitals may take up to 30 to 45 days to get the bill settled with the insurer. Due to delays in cashless insurance approvals, the hospital might charge the patient in the form of a cash deposit. All this happens due to a mere fact that the insurance companies don't maintain their database well i.e the database of insured customers is not updated, and hence the third-party administrators (hospitals/medical institutions) insist on cash deposit as they aren't able to identify the insured's details with the insurer.

Miscommunication

The lack of communication and transparency between insurance companies and the policy holders is a major issue that customers face while buying policies. For instance, if you are suffering from health conditions like high cholesterol and sugar, you might need to wait far longer to get the final decision from the insurance company. Also, in the procedure of reimbursement claims, the buyer often has to keep waiting for a longer period of time to get the dues cleared by the insurer. Another problem is, excluded medical cases and clauses. For example, if the policyholder is suffering from knee pain and all kind of joint treatments are excluded from the policy, it will be an unfair scenario for him/her. Even grievance cells are not equipped with the right solutions and answers for these cases and there is an over-dependency on standard responses.

Insurance Renewal of contracts

Most often, insurers re-file their policies and the new product (policy) has many added features in it. However, with added features, there also comes a long list of added exclusions. Therefore, it's always advisable to thoroughly read the list of exclusions before renewing health insurance policies. Or else, you might end up paying from your pocket in the end. Oral chemotherapy is one of such cases that are excluded from few of the insurer's list. Medical advancements have opened doors for many day care and expensive treatments and insurers are excluding such expensive treatments by excluding day care medical procedures.

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

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Reliance Vision Fund

 

Category: Flexi Cap

    Investment Style: Large Growth

    Investment Process: The fund manager looks for companies that he views as attractive growth opportunities at a reasonable price.

Fund Manager: Ashwani Kumar Morningstar Analyst: Kavitha Krishnan    

Reliance Vision Fund - Kumar plies a growth-at-a-reasonable-price strategy. He typically scouts for companies with strong and sustainable business models. He will be flexible with valuations and pay what he thinks is a fair price, given the company's growth prospects. He tends to take a two- to three-year view on stocks and focuses on factors such as ROE and ROCE when evaluating companies.

The research-orientation and qualitative overlay seeks to identify companies with strong management teams, robust business models, and sustainable competitive advantages. The top down approach is also important; factors such as the interest-rate scenario, barriers to entry, pricing power, policy measures, and expected consumption/ spending patterns are considered when investing.

 The process is not without risks, given the manager's willingness to be benchmark-agnostic and take big stock and sector bets. Ashwani will tend to buy into stocks based on the "best fit" for his portfolio even if it contradicts the opinions of the internal research team. Overall, we believe the process is solid.

The manager typically aims to invest in differentiated businesses and gain a first-mover advantage in terms of identifying the stock as well as ensuring that he is buying at the right price points. Large caps stocks currently constitute about 80% of assets, while the top 10 holdings constitute 40%-60% of the total assets. Kumar's penchant for diverging from benchmark weightings and willingness to take active sector bets results in a portfolio that is significantly distinct from that of its peers.

In addition to remaining concentrated at a sector level, the portfolio also witnessed a significant move away from healthcare and energy into autos and banking in the past two years. This move is in line with the manager's view that these sectors offer a better risk/return trade-off and will help capitalise on the India growth story. The fund is typically run as a sector-heavy portfolio consisting of about 30-40 stocks, with a major portion of its AUM invested in three to four meaningful sectors.

A typical investment would be a company that operates in diverse areas such as engineering and auto, catering to both domestic and global clients. From a top-down angle, he expects the auto sector to benefit from rising spending power in smaller cities. He expects auto companies to benefit from a robust product portfolio, low-cost models, and extensive distribution.

In rising markets, Kumar may indulge in short-term trades and tactical plays and tends to trade in the same set of stocks to capitalise on short-term opportunities rather than investing in new names.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

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Organ Transplant Insurance

The donation of organs in India is picking up lately as apprehensions and misgivings about organ donation are being cleared by sustained campaigns. Enlightened people are enrolling themselves for donation of their organs such as kidneys and liver when they are dead or alive and also donation of cornea and heart after their demise. This is quite heartening considering that there is acute shortage of organs for transplantation in India.

However, organ transplant is a costly affair, considering that kidney and cornea transplant can cost about Rs 1 lakh, heart transplant can cost Rs 10 lakh and the cost of liver transplant is a whopping Rs 25 lakh.

The good news is that in India, health insurance policies offered by many of the insurers cover the cost of organ transplants. All of the medically diagnosed conditions, procedures, treatments and surgeries requiring hospitalisation are covered by health insurance policies. However, the catch is that the costs required to be incurred for the organ transplant by the insured recipient is covered, subject to the limit of sum assured, while the costs of donor are not covered by the health insurance policies. The pre and post hospitalisation costs of the donor and the costs arising on account of post-surgery complications, if any, are not covered by any insurance policy in India.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. Sundaram Diversified Equity Fund

5. ICICI Prudential Long Term Equity Fund

6. Invesco India Tax Plan

7. Franklin India TaxShield 

8. Reliance Tax Saver (ELSS) Fund

9. BNP Paribas Long Term Equity Fund

10. Axis Tax Saver Fund

Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

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HDFC Equity Fund

 

HDFC Equity Fund

• Fund Manager: Prashant Jain
• Process: A research-driven process that focuses on quality growth stocks.
• Performance: Over the long haul, the fund boasts a stellar track record across the risk and return parameters.
• Expense Ratio: 2.20%
• Minimum Investment: Rs 5,000

An unwavering focus on the long-term and willingness to back conviction bets are integral to manager Prashant Jain's investment approach. Hence he doesn't shy away from trading near-term pain for long-term gains. This approach was on display not so long ago (in 2015) when Jain held on to his investments in public-sector banks (particularly SBI) despite it running into rough weather, and the fund languishing in the bottom performance quartile. This was not surprising as the manager has long favoured public-sector banks in his portfolios as he believes that they will be major beneficiaries of India's long-term structural growth.

Notwithstanding short-term blips, Jain has demonstrated considerable skill in navigating the fund through varying market conditions over the years. Expectedly, he made a promising comeback this time around as well with his conviction in public-sector banks paying off well, helping it to record top-quartile performance in 2016.

Research is central to the investment style, with Jain effortlessly combining top-down and bottom-up analysis (with more emphasis on the latter) to identify companies with robust business models, strong balance sheets, and competitive advantages. He pays heed to valuations while picking stocks, freely combining relative and absolute valuation methods. While constructing the portfolio, Jain is mindful of the benchmark index weights, but is not benchmark-aligned. His willingness to be disciplined and adhere to his investment style even when it is out of favour is noteworthy.

Admittedly, the process has its biases. The valuation consciousness coupled with aversion to speculative fare may cause the fund to lag peers in momentum-driven markets. Further, in a downturn, Jain's policy of staying fully invested could lead to underperformance versus peers that get their cash calls right. Yet, we believe the process will hold long-term investors in good stead.

An exceptional manager backed by a strong team, a robust investment approach, and one of the best asset managers in the industry add up to a best-in-class offering, in our book. 

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

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Invest in Reliance Tax Saver (ELSS) Fund

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SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

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Unfreezing a debit freeze bank account

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According to Reserve Bank of India (RBI) rules, it is mandatory for bank account holders to provide their PAN or Form 60.In a circular issued in December 2016, RBI instructed all banks to disallow debit transactions in accounts where PAN or Form 60 (in terms of Rule 114B of the Income Tax Rules) had not been provided.

Scope

Debit freeze for non updation of PAN Form 60 may be done only in the following cases: Account balance is `5 lakh or more.

Total deposits made after 9 November 2016 exceed `2 lakh.

Unfreezing debit freeze

In order to unfreeze the debit freeze on one's account, the account holder must forthwith furnish PAN Form 60 (as applicable) to the bank.

Visit to the branch

The account holder can visit the nearest bank branch and fill up a designated form for updation of customer details. Self attested copy of PAN or Form 60 shall be attached to the form and submitted.Original PAN should also be carried along at the time of submission.

Online method

Banks also provide an online method to carry out this procedure. The account holder can log in to the Netbanking portal of the bank and click on the "Update PAN" section. The account holder will have to key in his PAN details and upload the PAN or Form 60 as applicable. Once the documents are uploaded successfully the account will be unfrozen by the bank.

Email

Alternatively, the account holder can write an email to the designated customer services email id quoting the PAN or Form 60 details and upload the PAN or Form 60 (as applicable). Once the email is sent, the documents are verified by the bank and account is unfrozen.

No withdrawals or debits in any form will be possible (not even electronically), once the account is frozen for debits.

Some banks also allow updation of PAN details on their mobile banking portals

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

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Umang app

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Check EPF balance, passbook on Umang app

In the app, you can view your passbook; raise a claim for pension withdrawal; and you can also track the status of your claims already submitted

The Employees' Provident Fund Organisation (EPFO) has hosted its services on the Umang app. The app is not exclusive to EPFO. It is available on the Google Play store, iOS App Store, and Windows Store. Published by the Ministry of Electronics and Information Technology, it is a common platform for various government services such as gas booking, Aadhaar, crop insurance, EPF and National Pension System.

This app can be downloaded from the app store of your mobile operating system. A link on the EPFO website, https://web.umang.gov.in, will also lead you to the to the app's download page. To initialise it, you will need to give it permissions to access your location, SMS and calls data.

To register, you will get a one-time password (OTP) on the mobile number on the device on which the app is downloaded. At this stage, you have to choose two security questions, which can be used to recover your account from the app if you lose access to your account or forget its PIN. 

Next, the app will prompt you to link your Aadhaar number. For now, linking Aadhaar number here is voluntary and you can skip this step. However, if you chose to link you will be giving your consent to the Ministry of Electronics and Information Technology to use your Aadhaar details for eKYC. With this, your KYC details will automatically be seeded in your profile and your name, date of birth, gender and address will be populated for you in the next page. If not, the app will prompt you to input these details. However, here too you can have the option to skip this process. 

Once the app is installed and initialized on your mobile, you can find the EPFO option from the app's home page. You will have to select the 'Employee Centric Services' option and input your EPF Universal Account Number (UAN) when prompted. Now, you will be able to log in using an OTP that will be sent to your number registered with the EPF. 

The EPFO section in Umang app currently provides three services. You can view your passbook; raise a claim for pension withdrawal, part withdrawal, and final settlement; and you can also track the status of your claims already submitted. The passbook view feature can be accessed even if you do not link your Aadhaar with the Umang app or even the EPF. However, for the other two online features it is mandatory to link your Aadhaar number with your EPF account. 

One feature missing as of now in the EPFO section of Umang app is that it does not allow to raise transfer requests from one EPF account to your latest EPF account. However, that can still be done online from the EPF member portal. You can read how to do it here.

The EPFO had another app in the Google Play store called m-EPF, which could show the passbook and balance.

It has now been taken down and Umang is the only officially approved app providing EPFO services.

EPFO is also working towards providing other services like Aadhaar seeding, nominations and pensioner-specific services through the Umang app.

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

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STP, SWP

   Start SIPs Online 

Mutual fund investors should be aware of two tools, Systematic Transfer Plans (STPs) and Systematic Withdrawal Plans (SWPs), for their many benefits.

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Decoding your CTC

    Invest Top Tax Saver Fund Online 

Not many people may understand the cost-to-company (CTC) emoluments package that companies offer to their prospective employees, but to understand the CTC package is to be sure what the company is offering the employee in terms of take-home pay and the gross emoluments that constitutes the CTC.

Now, to understand what the employee will get and what he/she will not get in the take home pay, we need to look at the difference between the monthly salary component and the CTC components. In other words, we need to look at the components that constitute the CTC.

But before we look at the CTC components, we need to look at the salary structure that may be the take home pay for the employee. The salary components may include basic salary, dearness allowance, house rent allowance, conveyance allowance, magazine allowance, entertainment allowance, among others. The basic salary and allowances that are paid by the company to the employee on a monthly basis constitute the take-home pay (minus the employee's contribution to provident fund, professional and other taxes, etc.). These expenses incurred by the company are fixed for a period of one year or till the time of revision of pay.

However, as stated earlier, CTC means cost-to-company, which means it is the cost incurred by the company on the employee. Apart from salary, the company may incur many other expenses on the employee as part of its contractual obligation as per the terms of employment. These expenses could include medical reimbursement (up to a pre-specified annual limit), contribution to provident fund, gratuity, annual bonus, performance bonus, group insurance (medical or life), cost of professional training, interest subsidy on loans, food subsidy, among others.

From the above, it is evident that the CTC pay structure offered by the company may look attractive, but the take-home pay might be substantially lower.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Tax Saver ELSS Funds. Save Tax Get Rich

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