Budget 2011 and its impact explained : Rs 2060 is what all every males (Not women) would be saving as per new exemption limits

The budget is out. A quick look at what's in for all of us. Detailed coverage will follow in me next posts.

Brief Synopsis

• Unlike the last year, where the Finance Minister had announced high tax sops for individual tax payers, this year there are just minor tweaks on the income tax front.
  
• Males of all income group would be getting Tax Exemption of Maximum of Rs.2060 as per new tax slabs. No new tax exemption limits for women.
  
• The year was full of challenges for fiscal consolidation: FM

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Review LIC Samridhi Plus (Table no. 804)

Samridhi Plus (Table No.804) in a new ULIP plan which offers Highest NAV of 1st 100 months or fund value whichever is higher.

Summary

This is Guaranteed highest NAV ULIP plan in which you get highest NAV of First 100 months or the fund value at maturity (Whichever is higher), similar to LIC Wealth Plus but charges are much lesser in this plan.

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Power Finance Corporation (PFC) Infrastructure bonds open from February 24, 2011 to March 22, 2011

Power Finance Corporation (PFC) declared the launch of its income tax saving infrastructure bond with the offering set to raise Rs 5300 crore, the biggest among all recent bond issuances.

The bond will be issued in one or two tranches and will have a face value of Rs 5000. The public issue of secured, redeemable, non-convertible debentures of face value of Rs 5,000 each, will open for subscription on Feb 24 and closes on Mar 22. The bond issue is under Sec 80CCF of the Income Tax Act, wherein an investor can avail a deduction of up to Rs 20,000 in the taxable income for the current financial year.

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10 advantages of buying a home Vs renting

Buying and renting both have their ups and down, but one is proven to make your money go further. Buying a home is almost always the better choice, if you’re ready to take on a mortgage and all of the other costs that come with home ownership, that is. But, before you shy away and sign that 12-month lease, consider what you could be getting and saving by buying a home instead. Here are 10 advantages of buying a home versus renting:

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Know all about IIFCL Infrastructure Bonds a Tax Saving Bond under Section 80 CCF open from February 4 2011 to March 4 2011

IIFCL is a wholly-owned Government company providing financial assistance to long-term infrastructure projects. As on 30 Sept 2010; 105 of the 124 projects for which IIFCL has sanctioned finances. As on March 31, 2010 and September 30, 2010, it had no non-performing advances. The GoI has identified infrastructure development as a key priority and the Eleventh 5 Year Plan (FY 2008-2012) and envisage investments of US$ 514 bn. in the Indian infrastructure sector. Thus, IIFCL is expected to play a prominent role in the infrastructure finance space in India going forward.

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When you will become crorepati: Crorepati Planner Reverse Table

Ever wondered, how much monthly savings you need in order to create a corpus of 1 Crore at the specified rate of return. Below is the table where it shows how much money you need to contribute at specified rate of return in order to achieve the target of 1 crore.

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Reliance Mutual Fund brings First gold fund of fund in India "Reliance Gold Savings Fund"

Reliance Mutual Fund presents - Reliance Gold Savings Fund , first Gold Fund of Fund in India. This is Fund of Fund which allows you to invest in gold even if you dont hold the Demat Account.

Brief Synopsis

• The first fund of fund in India which enables you to reap the returns of gold as an asset class in a paper form without the need of a demat account.
• This fund would facilitate you to accumulate gold returns from a long term perspective through lump sum and systematic regular investments.

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Complete details of State bank Of India (SBI) Retail Bond Issue opening 21st february offering high returns of upto 9.95%

SBI launches Series 3 lower Tier II bonds of face value of Rs 10,000 each and series 4 lower Tier II bonds of face value of Rs 10,000 each aggregating to Rs 1,000 crore, with an option to retain over-subscription upto Rs 1,000 crore for issuance of additional bonds aggregating to a total of upto Rs 2,000 crore.

Returns are 9.75% per annum on series 3 lower Tier II bonds and 9.95% in case of series 4 lower Tier II bonds. Non retail applicants will get 9.3% and 9.45%, respectively.

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Mutual Fund Fixed Maturity Plan (FMP) better as well as tax efficient option to fixed deposits (FD)

The primary objective of a FMP is to generate income while protecting the capital by investing in a portfolio of debt and money market securities. The tenure can be of different maturities, ranging from one month to five years. 

FMPs can be compared to fixed deposits of a bank. While a fixed deposit offers a 'guaranteed' return, returns in FMPs are only 'indicative'. Typically, the fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers before the scheme opens. That way it knows the interest rate it will earn on its investments, providing the 'indicative return' to investors. 

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Complete details on Interbank Mobile Payment Service (IMPS) the Future of Money Transfer and Payments

As of now, interbank funds transfer electronically is done through National Electronic Funds Transfer(NEFT). But issue with these transfers is the time lag as this is not a real time service and transactions are settled in batches. The other instant funds transfer service available in name of Real Time Gross Settlement (RTGS), but that has minimum transfer limit of 2 lakhs.

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L&T Infrastructure Bonds Tranche II Open from Feb 7 2011 to March 7 2011

First tranche of the L&T Infrastructure Bonds came in the market on 15th October 2010 and was available for subscription up to 2nd November 2010. Now again L&T Infrastructure Finance Company Limited has come up with their second tranche of Infra Bonds and the issue is going to open on 7th Feb 2011 and will be available for subscription up to 7th Mar 2011. The issue size of this second tranche is Rs 100 crore. Offering a interest of 8.20% per annum in the first series (series I) which can be redeemed after 5 years and 8.3% in the second series or (series II) can be redeemed after 7 years.

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Review Aegon Religare I-Maximize: Low cost Online ULIP to multiply your returns

It was in later part of 2009 that Online term Insurance was launched by Aegon Religare by the name of I-Term plan, which at that time had offered us at less than half the rate then prevailing in the market. Later there was a revolution in the market and many other Insurance companies followed the same Route to offer Term Insurance Product Online. This included ICICI Prudential with Launch of I-Protect, Metlife's Metprotect, and Kotak Life Insurance with Kotak Term Plan. Since the launch of these products people are becoming more aware and they have started realizing the importance of Term Plan.

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After long rule of Plastic Money, Comes Mobile Money: Airtel Launches Airtelmoney

This might be just the begining of a new era. Earlier plastic changed the way we used to keep money, now a new concept of mobile money has been launched in India by "Airtel" India's No.1 Telecom Company which has been granted license by RBI to use semi closed wallet.

Have you ever wanted to buy tickets for the evening movie show without visiting the theatre, pay your electricity bill without waiting in a long queue, buy yourself a coffee without the need to take out change – or wished you could magically pay for groceries after forgetting your wallet at home? Your wait is finally over.

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Now Change Your Health Insurance service Provider without loosing Benefits- Health Insurance Portability to be launched on 1st July 2011

The much awaited "Health Insurance Portability" is all set for launch from July 1, 2011. Now, health Insurance customers can switch to Health Insurance provider without losing on no claim benefits and waiting Period exclusion. Earlier, portability was possible only in Motor Insurance policy. This is a positive move for customers who has the option to choose services from desired service provider enabling offering best of services and price.

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Complete details LIC Bima Account1(Table No, 805) and Bima Account 2 (Table No. 806): A very innovative and tricky product with 0-1% guaranteed return

LIC has recently launched 2 new plans Bima Account1 and Bima account 2. Although these plans comes from the house of most trusted name in Indian Insurance "Life Insurance Corporation (LIC)" of India. Although I believed that I know a lot about Insurance I completely failed to understand both the products. Details of the plans are under but please go through Synopsis once you read about product details.

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Payment of New Pension System (NPS) contribution in a single Installment

For the convenience of the subscribers, and help popularise the NPS, it has been decided that NPS subscribers

will, henceforth, have the option to pay their yearly NPS subscriptions in a single installment (as against the stipulated minimum 4 installments in a year) on payment of fee applicable to one installment.

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Now pay your contribution for New Pension System (NPS) through Electronic Clearance System (ECS):

The NPS provides Electronic Clearing Service (ECS) facility to its subscribers. This will facilitate the subscriber to electronically pay NPS contribution from their respective bank accounts. To avail this facility, subscriber is required to submit the ECS form to any of the NPS registered Point of Presence (POP)/ Point of Presence‐Service Provider (POP‐SP). The subscriber will provide details of bank account in the ECS Mandate form prescribed by respective POP. Once the ECS request is accepted the subscriber contribution amount will be debited from their respective account on the specified date.

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And you thought Demat account is only for Safe keeping of Shares: Other avenues of Demat accounts

As you are aware, a Demat Account is mandatory for safe keeping ‘Shares’. Whether you buy shares from the market or apply IPOs, a Demat Account is compulsory. But today the scope of Demat Account has gone beyond “Shares”. 

Now its highly unlikely to find any smart investor who would avouid opening demat acount.

• Mutual Funds: Now, you can invest in Mutual Fund Schemes through our NSE terminals ( as you are buying shares ) and the units will get credited into your Demat account. No need for too many statements from various fund houses. A single Demat account will take care of all your MF investments.

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