Reliance Mutual Fund to launch mega fund - Reliance Infrastructure Debt Fund

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Call 0 94 8300 8300 (India)

Tired of investing in mutual funds at ~10 per unit? What about buying units of ~10 lakh each? Reliance Mutual Fund is planning to launch a mammoth infrastructure debt fund (IDF), each unit of which would be priced ~10 lakh.

Targeted primarily at the long-term funds of super-rich individuals, foreign institutional investors, local institutions and corporate investors, the scheme will not accept investments below ~1 crore.

Reliance filed the offer document for the scheme with the Securities and Exchange Board of India (Sebi) last week. The close-ended scheme will invest in debt of companies in sectors such as transport, energy, water, sanitation, communication and social infrastructure, including education. It also has the flexibility to invest up to 10 per cent of its corpus in the equity of companies in these sectors.

"We are excited about the product. The infra debt fund has the potential to be a big product category in itself in the coming years. It will benefit both the mutual fund industry and companies engaged in the development of infrastructure," said Sundeep Sikka, chief executive, Reliance Mutual Fund. It would help in the objective of channelising the country's household savings into productive assets, he added.

While the fund house is tight-lipped about the targeted corpus, similar long-term infrastructure debt funds launched through the non-banking finance company (NBFC) route earlier this year have said they would raise $1.5-2 billion (about ~8,000-11,000 crore). Even if Reliance's IDF matches its counterparts taking the NBFC route, it is likely to be the largest new fund offer (NFO) in the industry's history.

Reliance has a record of marketing its NFOs well.

Reliance Natural Resources Fund, which collected ~5,660 crore in January 2008, remains the biggest NFO till date. Even during the downturn, when most struggled to collect a few hundred crores in their NFOs, the fund house collected ~2,350 crore in its Reliance Infrastructure Fund in July 2009.

There is a lot of interest in this kind of focused investment. Since infrastructure stocks are doing badly, it is not easy for the companies in this sector to raise equity now. The companies are ready to raise debt at a much higher rate. The infrastructure debt fund is a new product structured by the government, the Reserve Bank and the Sebi to facilitate long-term debt financing for infrastructure. It was first announced by the government in Budget 2011.

Other fund houses such as SBI Mutual Fund and IDFC Mutual Fund are planning to launch similar products. It will be a good addition to the product suite of fund houses. "You don't have any product in the long-term debt segment. This will be the first. Being a close-ended product, managing it will not be difficult. Advisors say investors will compare the product with others such as tax-free infrastructure bonds, which offered a tax free return of 8-8.25 per cent last fiscal. IDFs will be taxed like debt mutual funds. This is not for the masses. You have to sell it to informed investors, who will compare it with competing products. If I am going to hold it for the long term, I would want to know what return I'll get. Sebi rules do not allow mutual funds to indicate or assure returns from market linked investments.

 

Happy Investing!!

 

We can help. Call 0 94 8300 8300 (India)

 

Leave your comment with mail ID and we will answer them

                        OR

You can write back to us at prajnacapital [at] gmail [dot] com

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

1. Largecap Funds        Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds     Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds    Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds             Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds              Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Gold Mutual Funds             Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

Wrong filling of Income Tax Returns Can Increase Your Tax Liability

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Mutual Fund Application Forms

The countdown has begun for filing your income tax return (ITR). It was easier in the previous financial years, when you just handed your Form 16 over to your chartered accountant to file the income tax return on your behalf. The chartered accountant would take care of your paperwork, Form 16, accuracy of the return and hand over the ITR receipt on the completion of the process. But starting this year, you are required to file tax returns online especially if you are earning an annual salary of . 10 lakh or above. The tax portals are very user friendly and decode most of the technical details for the tax payers. However, the onus lies on you to enter every financial detail appropriately and file an accurate tax return.

Generally, due to the inbuilt mechanisms, returns filed electronically would have all the information mandatorily required to be filled in. These would include residential status, gender, TAN of the employer etc.

The ITR would be considered inaccurate if certain details mentioned in the return are wrong or certain details are missing altogether. The inaccuracies can have financial implications for the tax payer as a particular deduction, tax credit or loss may not be considered by the tax department; and this will enhance the tax liability of the tax payer. At times, there could be penal consequences too.

Common Misses

The most common detail which tax payers forget to mention in their income tax return is the interest income from bank FDs. Sometimes it could be due to lack of awareness or the delay in the TDS certificate to be given by the banks. Generally, banks give the TDS certificate in February or March every year. Tax payers fill the ITR details as mentioned in the Form 16 and leave out such details which are usually not mentioned in it.

Tax payers should refer to tax credit statement in Form 26AS to ensure that their income, TDS and tax payment details are completely reflected in the tax return form.

The second missing element could be claiming deductions/exemptions which the tax payer is entitled to, but are not reflected in the Form 16. Often employees invest in tax saving instruments after submitting their investment declaration to the employer. In such cases the Form 16 will not have complete details of such investments.

Most individuals avail deduction of interest on repayment of home loan. However, not many are aware that any interest paid on home loan for reconstruction, renewal and repair of the house property is allowed as deduction up to a maximum of . 30,000, subject to the overall limit of . 1,50,000. Hence before filing the return you should look at every investment and loan and understand the tax treatment for them.


For Salaried Class

You have to mention details of your rental income, capital gains or income from other sources (such as bank interest, etc.) earned during the corresponding financial year. Moreover, if you qualify as resident and ordinarily resident in India and have overseas assets, the details of the same should be mentioned in appropriate columns in the income tax return.

Self employed individuals

A self employed individual should choose the correct income-tax return form (ITR-4/4S - which is meant for individuals having income from a business or profession). A self employed individual can take full advantage of all business expenses. You can also claim depreciation on work related assets like laptops, computers, furniture, UPS and vehicles. Hence the bills of capital expenditures should also be maintained.


It is observed that those who file their tax return themselves often enter the amount of gross salary instead of the amount of taxable salary in the tax return form. This often results in taxpayers receiving demand notices from the tax department. Apart from salary, the section of the tax return on deduction under Chapter VIA (deductions under Section 80C on various investments, Section 80D on health insurance premium, Section 80G on donations, etc.) should be filled in accurately.

Further, the details of interest on housing loan should be entered correctly. The tax payer should obtain a final certificate from the housing finance company and enter the amount as per the final certificate. The amount reflected in Form 16 is based on the provisional tax certificate issued by the housing finance company which is submitted to the payroll department.



If you file your return online and realise later that there is a mistake in the ITR, you can rectify it by filing a "revised" income-tax return. However, a revised income-tax return can be filed only if the original income-tax return is filed within the due date. The revised income-tax return can be filed within 2 years from the close of the financial year or before the completion of assessment by tax officer, whichever is earlier.

Moreover, if the original return was filed electronically then revised return should be filed electronically as well. And if the original return was filed physically then the revised return too shall be filed physically.

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

1. Largecap Funds        Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds     Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds    Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds             Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds              Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Gold Mutual Funds             Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund