All About National Saving Certificates NSC

Who can purchase :

• An adult in his own name or on behalf of a minor,
• A minor,
• A trust,
• Two adults jointly,
• Hindu Undivided Family.

Where available

Available for purchase/issue at all Post Offices in India.

Minimum Purchase Value

The minimum amount of investment under NSC is Rs 100/-

Maturity

Period of maturity of a certificate is six Years.

Nomination / Transferability:

• Nomination facility is available.
• Certificates can be transferred from one post office to any other post office.
• Transfer from one person to another person permissible in certain
  conditions.

Denomination / Deposit limits :

Certificates are available in denominations (face value) of Rs. 100, Rs.
500, Rs. 1000, Rs. 5000 & Rs. 10,000.

There is no maximum limit for purchase of the certificates.

Interest/maturity value :

• Interest is available on this scheme @ 8%, compounded half-yearly
• With effect from 1st March, 2003, Maturity value a certificate of Rs. 100
  denomination is Rs. 160.10.
• Maturity value of a certificate of any other denomination shall be at
  proportionate rate.
• Interest accrued on the certificates every year is liable to income tax but
  deemed to have been reinvested.

Premature encashment :

Premature encashment of the certificate is not permissible except at a
discount in the case of death of the holder(s), forfeiture by a pledgee and
when ordered by a court of law.

Place of Encashment/discharge on maturity :

Can be encashed/discharged at the post office where it is registered or any other post
office.

Income Tax relief :

• Income Tax rebate is available on the amount invested and interest accruing every
  year under Section 88 of Income tax Act, as amended from time to time. [under Sec 80C]
• Income tax relief is also available on the interest earned as per limits fixed vied section
  80L of Income Tax, as amended from time to time.

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How To Judge If Any Share transaction Is Business or Investment ?

have earned Rs 700000 as from equity market in financial ,year 2005-06, which I was not showing in my return. I do number of transaction during the period but I taken all the share delivery and hold up 1 to 2 month and there after i sold in the market. but subsequently a survey was held on my broker during the year 2007-2008. Now before any notice served by income tax authority I fill up a revised return showing all my gain ,but department treated my gain as business income rather then the capital gain and accordingly they demand for additional tax. How can I justified for treated as a capital before the commissioner of appeal. Arun Kumar Agarwal ,Berhampur

This is a very old debatable topic between revenue authorities and tax payers. Nothing concrete can be said whether you had done business or investment transaction without going into full facts .Following parameters are important to decide this issue

1. What is the general nature of transactions of assessee in last three years ?

2. What is the manner of maintaining books of account ? Whether those shares on which short term capital gains were claimed are shown in books of account at the time of purchase as an investment or stock in trade.

3. What is the magnitude of purchase and sale of shares under short term vis a vis under business head?

4. In case of short term transactions, what is the general period of holding scrip wise vis a vis the business transactions shares holding? What it means is that find out the period of holding of each share in case of ST and business transaction.

5. How much dividend earned on the shares sold as investment (short Term) ?

Case Laws

There are many case laws on this subject and each was given by going into the facts before it . You can get clues for your own case if you read following case laws properly

1.  In Raja Bahadur Visheshwara Singh & Others V. Commissioner of Income Tax, Bihar & Orissa, (41 ITR 685), the assessee purchased shares during a period of 10 years from his own funds. He then borrowed substantial amounts for making further purchases of shares and securities. He made profits on selling some shares in the subsequent years. The Income Tax Appellate Tribunal, taking note of the magnitude and frequency of the transactions and the ratio of sales to purchases and total holdings, held that the appellant must be regarded as a dealer in shares and securities and that the profits of those years were assessable to income tax. On reference, the Patna High Court held that there was sufficient material to support the findings of the Appellate Tribunal. On further appeal to the Hon'ble Supreme Court it was, inter alia, held :

• that if on the evidence which was before the Tribunal, i.e. the substantial nature of the transactions, the manner in which the books had been maintained, the magnitude of the shares purchased and sold and the ratio between the purchases and sales and the holdings, the Tribunal came to the conclusion that there was material to support the finding that the appellant was dealing in shares as a business, it could not be interfered with by the High Court;

• that the High Court was right in holding that there was sufficient material to support the finding of the Appellate Tribunal.”

It may be noticed that in one of the earlier year of assessment the appellant was not treated as a dealer in shares and this fact was not considered by the High Court but the Hon'ble Supreme Court rejected the contention observing that when an owner of an ordinary investment chooses to realize it and obtain a higher price for it than he originally acquired it at, the enhanced price is not a profit assessable to income tax but where what is done is not merely a realization or a change of investment but an act done in what is truly the carrying on of a business the amount recovered as appreciation will be assessable.

2.  In Dalhousie Investment Trust Co. Ltd. V. Commissioner of Income Tax (Central), Calcutta (68 ITR 486), the appellant was investing its capital in shares and stocks of McLeod & Co. and companies managed by that company. It was changing its investment by sale of its shares from time to time. The appellant purchased bulk of shares of those companies by taking loan at a time when the market price was continuously falling and rate of dividends was very low. Those shares were sold subsequently at a considerable profit. The question was whether the profit derived by the appellant from the sale of those shares was in the nature of revenue receipt or a capital gain. It was held by the Hon'ble Supreme Court that the appellant purchased and sold the shares of the company and the allied companies as stock in trade and that they were in fact purchased even initially not as investments but for the purpose of sale at a profit and therefore the transactions amounted to an adventure in the nature of trade and the profit derived by the appellant from the sale of shares was a revenue receipt and as such liable to income tax. The fact that the department in the earlier years treated the transactions in the nature of investments was not binding in the proceedings for assessment during the subsequent years.

3. In Commissioner of Income Tax, Nagpur v.. Sutlej Cotton Mills Supply Agency Ltd. ( 100 ITR 706), the respondent assessee subscribed for 3,49,000 shares of a new issue of Gwalior Rayon and paid the application and call moneys. Subsequently, he sold 1,58,200 shares with a profit. The Income Tax Appellate Tribunal found that the transaction constituted business being an adventure in the nature of trade and that the profit was liable to income tax. On reference to the High Court of Madhya Pradesh held that the transaction was held not an adventure in the nature of trade. On appeal to the Hon'ble Supreme Court, the decision of the High Court was reversed holding that the Tribunal had considered the evidence on record and applied the correct test in law, and there was no scope for interference with the finding of the Tribunal.

4. We may notice here a recent judgement of the Authority in the case of XYZ/ABC Equity Fund (250 ITR at page 194). In that case the applicant company was a resident of Mauritius which mobilized investment from different investors and collected a large pool of money and after identifying investment opportunities invested in three Indian companies and one USA company. It utilized the services of an advisor who was also advising to other companies. The investment in India was through the custodian which was rendering services in the ordinary course of business to about twenty companies. The Authority ruled, inter alia, that the applicant company had been formed with the object of carrying on the business of acquiring and investing in and holding securities of all kinds and ultimately selling at a profit. It is with that purpose it had raised capital and acquired money from other sources with which it acquired large block of shares in Indian companies and that indicated a large systematic activity for making profits. Transactions of this magnitude in furtherance of the object stated in its memorandum could be nothing other than business and the proceeds of sale of shares in India would amount to business receipts and not capital gains.

4.  In A.V.Thomas & Co.Ltd. v . CIT (Supra), the assessee referred to the memorandum of association to show that it was one of the objects of the assessee to include the promotion of the companies and accordingly the amount in question was paid to promote the Rodier Textile Mills Ltd. Repelling that contention the Hon'ble Supreme Court observed that a memorandum of Association is not conclusive as to the real nature of transaction which has to be deduced from the circumstances in which the transaction took place and not from the memorandum. As a fact it was found that different versions given in the books of accounts of the assessee - company, belied the assertion. What this decision lays down is that mere recital in the memorandum of association is not conclusive of the nature of transaction, there must be some material to show that in furtherance of the object clause in the memorandum steps are taken and it is given effect to.

5. In CIT v.. P.K.N.Co.Ltd. (Supra), the question for consideration before the Hon'ble Supreme Court was whether the profits realized by the assessee company from the sale of properties could be brought to tax. It is observed that the question whether in purchasing and selling land, the assessee company enters upon a business activity has to be determined in the light of the facts and circumstances; the purpose or the object for which it is incorporated may have some bearing, but is not decisive, nor is the profit motive in entering into a transaction is decisive. In that case, the respondent company was formed primarily to take over the assets of a firm. The memorandum of association, inter alia, specified in the objects clause purchase or acquisition, sale, development and disposal of land. It was held that the profits arising from the sale of the land in plots were not taxable income; the primary object of the company was to take over the assets of the firm to carry on the business of planters and to earn profits by the sale of rubber and that the acquisition of the estates was not for the purposes of carrying on business in real estate. The incidental sale of uneconomical or inconvenient plots of land could not convert what was essentially an investment into a business transaction in real estate. Existence of powers in the memorandum of association to sell or turn into account, dispose of or deal with the properties and rights of all kinds had no decisive bearing on the question whether the profits arising therefrom were capital accretion or revenue

6. CIT v . Associated Industrial Development Co.(P) Ltd (Supra), was a case of the assessee company being managing agents of various companies. It sold shares held by it in three of its companies and derived substantial profits. The claim of the assessee was that the profits were in the nature of capital gain and not income. The Tribunal found in view of the multiplicity of the transactions over the years the assessee company had ceased to be an investor and had become a dealer and the profits were liable to be taxed as income. The High Court on reference did not interfere with the finding of the Tribunal but held that the shares were held by the assessee as part of its investment and, therefore, profit on the sale of shares did not arise to it in the course of its business as a dealer in shares, which was a capital receipt. On appeal, the Hon'ble Supreme Court reversed the decision of the High Court holding that the question whether the shares had been held by way of investment, was essentially a question of fact and the Tribunal was not called upon to decide it. The assessee did not place any material from which it could be established whether particular holding of shares was by way of investment or formed part of the stock in trade. It was a matter which was within the knowledge of the assessee who held the shares and he should, in normal circumstances, be in a position to produce evidence from his records to show that the shares were held as stock in trade.

Courtesy-  www.taxworry.com

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All you need to know about ETFs

Thanks to the launch of a number of gold ETFs (exchange traded funds) in the recent past, ETFs as investment avenues have gained a fair bit of popularity as well. Increasingly, ETFs are finding themselves on the investor’s ‘to invest’ list. Having said that, ETFs still have a lot of catching up to do, before they can compete with conventional mutual funds, in terms of popularity among investors. One of the primary reasons for this is lack of knowledge and objective understanding about ETFs among investors. In this article, we present a primer on ETFs and discuss their investment proposition.

What are ETFs?
ETFs are a basket of securities that are listed and traded on a recognised stock exchange. Simply put, they are mutual funds, whose units can be bought and sold on the stock exchange. ETFs can be either passively managed or actively managed.

A passively managed ETF attempts to replicate the performance of its underlying benchmark index (like the S&P CNX Nifty, for instance). It invests in the same stocks as the index and in the same weightage as well. The intention is to track the index as closely as possible (i.e. with least deviation).

On the contrary, an actively managed ETF can freely invest in stocks/securities, within the guidelines laid down by its investment mandate. In other words, the fund has no obligation to invest in the same stocks/securities as its benchmark index. The intention is to outperform the benchmark index.

However, it must be noted that the defining feature of ETFs is not whether they are passively or actively managed, but that they are traded on the stock exchange.

ETFs in India
ETFs first made their presence felt in India in the year 1994 with the launch of Morgan Stanley Growth Fund, a close-ended, actively managed, diversified equity fund. However, the dismal track record of the fund combined with a price history that was trading perpetually at discount to the NAV, gave investors the wrong signal as far as ETFs were concerned. Investors began perceiving ETFs as poorly managed and felt short-changed when they sold their units at a steep discount to the NAV.

Things changed after the launch of Nifty Benchmark Exchange Traded Scheme-Nifty BeES (launched in December 2001), an open-ended, passively managed fund. It would be fair to say that the fund set the records straight for ETFs in the country. Since then, the ETF segment has grown slowly but steadily. Recently, the launch of gold ETFs has provided the much needed zing to the segment, thus attracting many investors.

ETFs at present have a fair variety to offer. For example, among others, there are ETFs like Quantum Index Fund and ICICI SPIcE Fund that track broad indices such as the S&P CNX Nifty and the BSE Sensex respectively. Then there is Bank BeES (from Benchmark Mutual Fund), an ETF that tracks CNX Bank Index. On the debt side, there is Liquid BeES that invests in a basket of call money, short-term government securities and money market instruments. And there are several gold ETFs to choose from. Going forward, investors can only expect the bouquet of ETF offerings to grow.

 

How ETFs function
Given that an ETF is traded on the stock exchange, its price may not necessarily be the same as the NAV of the underlying portfolio. In other words, an ETF could have an NAV distinct from its market price. The reason being that the market price is usually driven by the demand and supply of units. Hence there is a distinct possibility of an ETF’s units trading at a premium or discount to its NAV.

Unlike regular mutual funds, where the investor deals directly with the AMC (asset management company), in case of ETFs, a bulk of the buying and selling is done over the stock exchange. Direct dealing with the AMC is possible only if the transaction is done in specified lot sizes known as ‘creation units’. Since the creation units are comprised of a large number of units, they are not viable propositions for retail investors. It is possible only for institutions and wealthy individuals to deal directly with the AMC. While dealing with the AMC, such investors can avail of ETF units by delivering the stocks (assuming that the ETF tracks a stock index) that make up the underlying index; also ETF units can be exchanged for the underlying stocks.

AMCs attempt to keep the market price of the ETF close to its NAV; for this purpose, they appoint institutions commonly referred to as market makers. These market makers try to benefit from any premium or discount between the ETF’s market price and its NAV, by performing an arbitrage between the ETF and its underlying portfolio. So how does this mechanism work? If an ETF is trading at a discount to its NAV, then the market maker will buy ETF units from the stock market and then sell the same to the AMC (in creation units); after taking delivery of the underlying stocks, the market maker will sell the same in the stock markets, thereby benefiting from the arbitrage opportunity. The converse will be done when an ETF is trading at a premium to its NAV. The arbitrage mechanism helps to keep the market price of an ETF close to its NAV.

Let us now look at some of the advantages and disadvantages associated with ETFs.

Advantages of ETFs

1. ETFs tend to be more cost-effective vis-a-vis comparable mutual funds. For instance, while the expense ratio of a passively managed ETF (tracking a benchmark index) would normally be in the range of 0.50%-1.00%; for an index fund, it can be as high as 1.50%.

2. Another important advantage with ETFs is that they provide more flexibility to investors than regular mutual funds. Since they are traded on the stock exchange, they are available to investors any time during the trading hours. So investors can buy and sell units of an ETF on a real time basis, unlike regular mutual funds, which can be transacted only at end-of-day NAV.

3. Since ETFs witness most of the buying/selling on the exchange, the interests of the long-term investor are not compromised. Take a regular equity fund where units are bought and sold at the AMC’s end – when a significant amount of money enters and exits the fund rather quickly, the long-term investor could suffer as a result of the costs (trading costs, registrar costs and opportunity loss, if the fund manager is forced to sell his best stocks) associated with this quick inflow/outflow.

With an ETF, since the trading investor does not approach the AMC at all and only interacts with other investors over the exchange, his quick entry/exit does not compromise the interests of the long-term investor.

4. Given ETFs are traded on the stock exchange, and can be bought/sold on a real time basis; they tend to have low tracking error (deviation of ETF's performance from that of the underlying index) as compared to index funds.

Disadvantages of ETF

1. Investors need to have a demat and a trading account, with a SEBI registered stockbroker, for investing in ETFs. For investors, who do not trade in stocks, this could be a bit of a deterrent. Also, maintaining a demat account entails paying annual fees (approximately Rs 500), however the same varies across stockbrokers. For investors, who invest in stocks, this will not pinch as the maintenance charge of the demat account will be spread across the stock and ETF investments.

2. While investors have to incur entry/exit loads at the time of making/redeeming investments in mutual funds, for ETFs they have to pay a brokerage (usually around 0.50%) to the stockbroker, along with other applicable charges (STT for instance), every time ETF units are bought or sold. For a trader who frequently trades, this can have a significant impact on the net returns. But for long-term investors, these expenses hold little relevance.

What investors must do
It is evident that ETFs offer a different investment proposition vis-à-vis conventional mutual funds. ETFs may appeal to investors who want to track the performance of a particular benchmark index (such as S&P CNX Nifty or BSE Sensex); similarly, the ETF route can also appeal to investors who are desirous of investing in asset classes such as gold. The allure of ETFs will only grow given the expanding bouquet of offerings.

Investors on their part would do well to thoroughly understand the pros and cons of ETFs; this will help them make informed investment decisions. Also, investors must consult their investment advisors/financial planners to determine the suitability of an ETF in their investment portfolios

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Retirement – The Investment Avenues

Retirement marks the beginning of a new phase in an individual’s life. It’s a transition from a lifetime of work to a time when one can relax, spend time with the family and pursue other interests. Not only this, retirement also marks a transition in one’s finances. With a regular stream of income no longer available, the savings made over one’s working years now have to provide for all his needs.

Given the kind of challenges that retirement can throw up, it isn’t surprising that any financial planner worth his salt would recommend that retirement planning should be given its due importance and started as early as possible.

However, there is another (often ignored) set of investors - retirees. Individuals who are already retired and need to get invested now. For such investors, capital protection and liquidity are priorities. In this article we profile some investment avenues that retirees can consider adding to their portfolios.

1. Senior Citizens Savings Scheme (SCSS)
As the name suggests, SCSS is an investment avenue meant exclusively for senior citizens. The scheme defines senior citizens as those who are above 60 years of age; subject to the fulfillment of certain conditions, individuals who have crossed 55 years of age and have retired under the voluntary retirement scheme can also participate in the scheme. The minimum and maximum investment amounts are Rs 1,000 and Rs 1,500,000 respectively. This scheme runs over a period of 5 years and offers a return of 9.0% pa.

Liquidity
Given that this scheme is designed for senior citizens, it fares well on the liquidity front. Interest is paid out on a quarterly basis on 31st March, 30th June, 30th September and 31st December. Investors are also allowed to prematurely liquidate their investment at any time after the expiry of 1 year, however, the same entails bearing a penalty in the form of loss of amount invested. So if the withdrawal is made after 1 year but before the expiry of 2 years, an amount equal to 1.5% of the initial deposit is deducted. Similarly, if the account is closed after 2 years, an amount equal to 1.0% of the initial deposit amount is deducted.

Taxation
Investments in the scheme are eligible for tax benefits under Section 80C of the Income Tax Act. However, the interest income is fully taxable and subject to tax deduction at source (TDS). Investors whose tax liability on the estimated income for the financial year is nil, can avoid TDS by furnishing a declaration in Form 15-H or Form 15-G as applicable.

2. Post Office Monthly Income Scheme (POMIS)
Since getting a regular income is important for retirees, POMIS is another investment avenue that they can consider. POMIS is operated from post offices and offers an assured monthly income. The minimum investment amount is Rs 1,500 and the maximum are Rs 450,000 and Rs 900,000 for single and joint accounts respectively. The scheme runs over a 6-Yr period and offers a return of 8.0% pa. Also investments (made after December 8, 2007) are eligible for a 5.0% bonus (of the initial amount invested) on maturity.

Liquidity
Expectedly, POMIS fares well on the liquidity front. Apart from the monthly interest payouts, premature withdrawals are permitted after 1 year from the date of investment. However, 2.0% of the initial amount invested is deducted as penalty, if a premature withdrawal is made after 1 year but before 3 years from the investment date. This penalty is reduced to 1.0% if the amount is withdrawn after 3 years.

Taxation
Investments in POMIS are not eligible for any tax benefits to investors; also, the interest income is taxable.

3. Post Office Time Deposit (POTD)
POTD is essentially a fixed deposit from the small savings segment. Investors can invest a minimum of Rs 200; there is no upper limit for making investments. The scheme provides investors a wide range of options in terms of investment tenures. In line with their requirements, investors can opt for 1-Yr, 2-Yr 3-Yr or 5-Yr POTDs. But it should be understood that only 5-Yr POTDs are eligible for tax benefits under Section 80C. Similarly, the returns range from 6.25% pa (for the 1-Yr POTD) to 7.50% pa (for the 5-Yr POTD) on a quarterly compounding basis.

Liquidity
POTDs fare moderately on the liquidity front, thanks to the annual interest payouts. Premature withdrawals are permitted after 6 months from the date of deposit; however, the same entails bearing a penalty in the form of loss of interest. Finally, any excess interest paid is recovered from the principal amount and the interest payable.

Taxation
Investments in 5-Yr deposits are eligible for tax benefits under Section 80C of the Income Tax Act. The interest payouts are taxable.

4. 8% Savings (Taxable) Bonds 2003
Issued by Government of India, these bonds have an investment tenure of 6 years and offer an assured return of 8.0% pa. Investors can choose between the half-yearly and the cumulative interest payment options. The bonds are issued for a minimum amount of Rs 1,000 and there is no maximum investment limit.

Liquidity
Expectedly, the half-yearly interest payout option will find favour with retirees over the cumulative payout option. However, it must be noted that premature encashment is not permitted on investments made in the bonds.

Taxation
Interest income from the bonds is fully taxable. Any interest credited or paid on them (on or after June 1, 2007) will attract TDS if the interest amount exceeds Rs 10,000 for the financial year.

5. Fixed Deposits
Another investment avenue that retirees must consider are fixed deposits offering a monthly income option. Like conventional fixed deposits, they offer assured returns, but the interest payout is done every month. At Personalfn, we prefer fixed deposits, which are ‘FAAA/equivalent’ rated, as it signifies the highest degree of safety. Also, given that most fixed deposits are known to offer a higher interest rate (generally 0.50% more than regular rate) to senior citizens, this avenue becomes more attractive for retirees.

Liquidity
Premature withdrawal is generally permitted only after completion of 3 months from the date of deposit. Also withdrawal of deposit before the completion of the stipulated tenure entails a loss of interest for the investor.

Taxation
Investments in fixed deposits are not eligible for tax benefits; also, the interest income is taxable.

6. Monthly Income Plans (MIPs) and Fixed Maturity Plans (FMPs)
MIPs and FMPs are investment avenues from the mutual funds segment. Unlike the investment avenues discussed earlier, MIPs and FMPs are market-linked in nature, hence, they do not offer assured returns.

MIPs typically invest 15%-20% of their corpus in equities while the balance is invested in debt instruments. Investors can choose between the dividend (monthly, quarterly, half-yearly and annual) and the growth options. However, it should be noted that while the intention is to declare dividends, there is no certainty; furthermore, there is also no guarantee of capital preservation.

FMPs invest in debt instruments and target a pre-defined return. To achieve this, they lock-in the same at the time of investing and stay invested till maturity. In turn, investors who stay invested in the FMP till maturity are virtually assured of clocking the given return. It should be noted that the actual returns could vary from the indicated ones; also FMPs are exposed to credit risk i.e. the risk of loss due to non-payment of the principal or interest (coupon) or both.

What should investors do?
Retirees can consider adding any one or more of the above investment avenues to their investment portfolios based on their needs. Also, the above list is not an exhaustive one. For instance, a retiree who has his finances in place (i.e. whose everyday needs are provided for and has a sufficient investible surplus) can even consider investing a smaller portion of his monies in well-managed diversified equity funds. The key lies in understanding one’s needs and then forming a portfolio based on the same. Also opting for the services of a qualified and experienced financial advisor would be a prudent decision.

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ELSS Mutual Fund- Analysis

As everyone starts to plan for tax-saving towards the end of the year, one may have several questions in his/her mind on where to park his/her money for tax-saving as well as better returns. The current economic environment offers adequate room for growth for ELSS funds and hence I would stick to suggestions under this domain.
I wouldn’t discuss absolute performance or ratings in this section as that is generally covered in most of the popular financial portals like http://www.valueresearchonline.com and http://www.easymf.com/
However, I would analyze some funds and suggest why I would buy/not buy in the current environment.
1. Fidelity Tax Advantage
Fund Manager: Sandeep Kothari
Since: Jul – 2006
I like the fact that the fund manager is experienced and has stuck to the fund for a reasonable period of time. This brings some amount of trust on the performance of the fund.

Asset Allocation
As on 31/08/2008
Equity 88.61%
Debt
Others 11.39%
The fund as on 31st September 2008 increased holdings in Infosys Tech (3.48%), Bharti Airtel (3.05%), ICICI Bank (2.8%), Hindustan Unilever (2.55%) and HDFC Bank (2.22%) amongst the top ten holdings. It reduced exposure in Reliance Industries (6.44%), HDFC (4.09%), SBI (3.24%) and BHEL (3.09%).
Given that the fund has significant equity exposure and lower cash/debt position, the fund is bound to loose in a falling market. The fund manager has taken smart calls in reducing exposure to RIL and other stocks as stated; however, the fund still has high exposure to RIL. I am particularly bearish on RIL and other stocks held in the portfolio as they would be the most to fall in a falling market. This portfolio suites investment once the market stabilizes. For the present, I would like some cash exposure and adequate equity cushion (FMCG and Pharma).
Investment Valuation Stock Portfolio

Portfolio P/B Ratio 5.55
Portfolio P/E Ratio 23.14
The funds P/E and P/B ratio are still high which means the downside risk is higher.
2. Franklin India Taxshield
Fund Manager: Anand Radhakrishnan
Since: Apr – 2007
The fund manager has been around for a lesser period of time. However, it’s not an alarm signal as the fund hasn’t changed its style of declaring dividends on a regular basis when the markets were ripe. I like the dividend distribution policy of the fund which reduces risk in long term.
Asset Allocation
As on 31/08/2008
Equity 92.68%
Debt
Others 7.62%
The fund increased its holdings in Bharti Airtel (7.16%), RIL (6.12%), BHEL (4.49%) and L&T (4.3%) while reducing exposure to Infosys Tech (6.04%) and HDFC (5.7%). I’m extremely bearish on all the top stocks held by the fund. The fund manager has done well to increase holdings in “cushion” stocks like Nestle, Hero Honda and Marico. However, I would have like higher allocation to these stocks rather than the old performers which the fund manager still seems to betting on! The equity allocation is significantly higher at 92.68%, which presents good amount of downside risk.
I am partly happy on the fund managers actions, hence would recommend a part-buy.
Investment Valuation Stock Portfolio
Portfolio P/B Ratio 6.90
Portfolio P/E Ratio 22.88
P/E and P/B is high for the fund and hence the risk id higher.

3. Sundaram BNP Paribas Taxsaver
Fund Manager: Satish Ramanathan
Since: Sep - 2007

The fund manager has been around for a lesser period of time. However, he brings in good amount of experience having worked with Franklin Templeton MF for a long period of time. I have tracked his performance during his tenure in Franklin Templeton and have found it to be satisfying.
Asset Allocation
As on 31/08/2008
Equity 63.64%
Debt 7.61%
Others 28.75%
The fund has substantial cash/call/debt allocation which is one of the reasons for outperformance over the previous month. However, as I see during the later days of October, the fund has been underperforming the markets and some other peers in the group. I suspect some equity re-allocation or portfolio shift. During the month of September, the fund increased exposure in HUL(4.86%), ITC(4.36%), RIL(3.94%) and ICICI Bank(3.02%) while reducing exposure in Nestle(3.81%) and Tata Tea(3.18%). Given the cash exposure as on September '08 portfolio, the fund is a good defensive bet and a good addition to your ELSS portfolio.
I’ll check the funds October portfolio once it releases and then take a final call.
Investment Valuation Stock Portfolio
Portfolio P/B Ratio 6.43
Portfolio P/E Ratio 16.47

The fund has a reasonable P/E ratio and hence is suitable for investment.
When to Buy?
Given that ELSS has significant equity exposure, they are governed by equity market movements. Hence, I would recommend investors to keep a watch on support levels discussed in the blog and invest closer to support. For instance, the next Nifty support looks to be at 2663. Another way of looking at it is to look at the support levels of top ten stocks held my MFs and then invest closer to those levels. But this can get very complex and hence I would say, just look at the Nifty close and invest. You can probably phase your investments over the months of November, December and January. However, I don’t recommend an SIP way of investing as of now. SIP’s if you note, have underperformed the market over the last two years

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Tax Saving Mutual Fund- Things to know before investing

Equity Linked Saving Schemes (ELSS) or tax saving mutual fund schemes as they are otherwise known as, are a popular tax saving investment. The major reason for this popularity has been taxes introduction of Section 80C of taxes Income Tax Act, from April 1, 2005. This section allows the investor to invest up to Rs 1 lakh in various investment products and get a tax deduction for the same. The list of investment products also includes ELSS. Earlier, till March 31, 2005, investment in these tax saving schemes only allowed for a tax deduction of up to Rs 10,000 under Section 88.

However, that being said, there are various things an investor needs to keep in mind before deciding to jump into an ELSS investment.

1. Section 80 C spoils you for choice: As has been mentioned above, ELSS is not the only investment avenue that comes under Section 80C. Other investments such as Life Insurance, Public Provident Fund (PPF), National Savings Certificates (NSCs), Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS) etc also offer a similar tax benefit. Then there are mandatory payments such as your PF, tuition fees of children and even housing loan repayments that are covered under Sec. 80C. Let us say an individual contributes Rs 40,000 to the PPF every year and Rs 30,000 is his provident fund deduction. So for him it makes sense to invest only the remaining Rs 30,000 [Rs 1 lakh - (Rs 40,000 + Rs 30,000) = Rs 30,000] for tax deduction under Sec. 80C. This is primarily because if he invests more than Rs 30,000, he will cross the overall level of Rs 1 lakh and the deduction is limited to Rs 1 lakh.
2. Lock-in of three years: Like all investment avenues under Section 80C, ELSS funds also involve a certain lock in. In this case the lock in is for three years. Hence an ELSS investment cannot be withdrawn for a period of three years from the date of investment. This lock-in is like a double-edged sword. On the one hand, it fosters long-term investment, which is very essential while investing in equity. And on the other, if you find yourself in a situation where you require funds in an emergency, you will have to resort to other means / investments — the ELSS fund will be closed to you for three years. Withdrawals are just not allowed, not even with a penalty.
3. Tax saving schemes carry the risk of investing in equity: ELSS funds are promoted as good investments as they enable the fund manager to take long-term calls on account of the enforced three year lock-in. In other words, the fund manager doesn’t have to worry about keeping funds liquid to cater to daily redemptions that can happen in normal open ended schemes. However, it has to be kept in mind that ELSS funds for all practical purposes are similar to normal diversified equity mutual fund schemes. The funds in these schemes are invested in the stock market. Hence the returns these schemes generate depend on the tax of stocks the fund manager invests in and the overall state of the market. So if an investor invests in a tax saving scheme, and three years down the line, when the lock-in ends and the markets are not doing well, his total returns will take a beating. Yes, this has not happened in the past as the Indian market is in a lateral bull phase (barring the occasional hiccups). However, the potential of capital loss is very much there and it has to be considered. So investors need to consider their risk taking ability in terms of age and responsibility before deciding on investing in ELSS.

The bottom line?

Whether ELSS or any other investment, do not invest because the investment offers a tax benefit. Ask yourself whether you would have invested in the particular instrument per se — the tax benefit should be the incidental icing on the cake. This will ensure that all your investments will be as per your risk profile and goal oriented and not only on for the temporary purpose of saving tax.

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Be CarefulWhile Investing in ELSS Scheme

I have just received a message that Mahindra Finsmart is offering higher commissions to get investment in four ELSS (Taxsaver) funds:

• Kotak Tax Saver (5%)
• ICICI Prudential Tax Plan (4.5%)
• HDFC Long term Advantage Fund (3.5%)
• Birla Tax Relief 96 (3.5%)

Now I don't know how this is being paid - most schemes pay only 2.25% as "brokerage" to the agents, out of the entry load. But if larger amounts are being paid, then these schemes will end up paying these commissions out of investors' funds (where else). It may be done slowly and over years - after all, you can't withdraw your funds for three years - and will impact returns.

Be careful when putting your money in - I would essentially avoid all ELSS mutual funds for the time being - a PPF or NSCs are probably better bets.

I wish there was a no-load ELSS fund that simply invested in the Nifty, using futures, and put the rest of the money into liquid cash or call markets. This requires no brains - therefore very little management fees. Definitely needs some marketing muscle, though. And this is an industry that survives on commissions, so I doubt it will accede.

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Infosys is the most TRUSTED COMPANY

After the Satyam debacle everyone is talking about corporate governance and the trust factor of a particular company. Until now corporate governance is fancy word which is a subject for the management students. That will be dusted off and will be a hot course. At least in ISB.
Everyone is looking for the most trusted Indian company. There are multitude of opinions. India needs better corporate governance regulations or family run businesses in India do not have any transparency. Given those opinions voiced by the foreign media the companies will undergo a lot of scrutiny before a dollar is invested.This survey though done by Mint sheds some important light. It is funny this survey should come up today as I was discussing this with my colleague just yesterday night. Among the IT companies we felt that Infosys has a better management, not family run and might have less skeletons in its closet. Out came the Mint survey confirming just that.
Though I do not completely agree with their process of arriving at the conclusion. Mint mentioned a strong board with some big names. The problem is along with Raju and PwC it is the board members which screwed up Satyam. Sure it has a ISB dean a Harvard professor but seriously - board or independent directors means nothing.
TCS which comes from Tata stable should be a better governed company. Reason is simply this : If Satyam screws up it is the only one company which will suffer. Though it has 6 subsidiaries and 2 Maytas infrastructure companies. The Satyam brand is not stamped on those 10 other companies. It is not the same case with the Tata group. Every company has a Tata brand on it. Either on the top or as a foot note.
The ripple affects could also be very severe for Tata group companies. So everybody will be on their heels. I hope they do. But Infy still rules.
8 most trusted companies as per the survey :
Infosys
Tata Communications Ltd
Tata Consultancy Services
Tata Motors Ltd
Tata Power Company Ltd
Tata Steel Ltd
HDFC Ltd
HDFC Bank
Tata dominated the trust worthy companies. Infosys topped it. No surprises so far. But in spite of being the billionaires and stuff Reliance did not figure in the list. Why is that?

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5 golden rules of Tax Planning

Just as rules are important for good living, so also there are some golden rules of tax planning. The five simple yet effective rules of tax planning are:

1. Spread the taxable income among various members in your family;
2. Take full advantage of tax exemptions available under the law;
3. Take full advantage of permissible tax deductions and rebates available on stipulated tax-saving investments;
4. Make optimum use of tax-exempted incomes; and
5. Simple tax planning is smart tax planning.

Understood and used properly these rules will help you achieve handsome tax savings.

Rule 1: Spread your income among your family members

The first step in tax saving is to adopt the concept of divide and rule. The simple rule is that each family member must have his or her independent source of income so as to legally become an independent taxpayer under the provisions of the income tax law.

In case the entire income of a family belongs to just one member, the tax liability is much higher than when the same income is spread among different members of the family.

Now, under the income tax law it is not possible to arbitrarily divide one's income among different members of the family -- and then pay lower tax in the names of different family members. However, this goal can be achieved by intelligent use of the facility of gifts and settlements.

Gifts you receive are not your income

Generally, any gift you receive from various members of your family and specified relatives is not considered your income but a capital receipt. Thus, no income tax is payable on gifts received from relatives -- and also gifts received from parties other than relatives up to a sum of Rs. 50,000 and at the time of marriage up to any amount.

The first rule of tax planning requires that one develops income tax files for oneself, one's spouse, one's major children, the Hindu Undivided family, and for all other major relatives in the family, including one's parents. The development of different files of major family members can be achieved through the process of gifts and settlement.

No income tax on your inheritance

No income tax is payable on any amount received or inherited by you, whether in the form of movable assets or immovable assets, consequent to the demise of your friend or relative. Moreover, there is no upper limit to this exemption.

Hence, whenever you receive either bank fixed deposit, shares or immovable property consequent to the demise of a person, you don't have to pay any income tax at all on the value of all inherited assets.

The simple rule is that the asset so inherited by you is not your income; it is a capital receipt. Hence you are not liable to pay any income tax on the money and assets you inherit.

Rule 2: Take full advantage of all tax exemptions

The second step of tax planning lies in claiming all the exemptions and deductions which are permissible under the income tax law.

A list of most such exemptions and deductions is contained in Section 10 of the Income Tax Act. This list has to be optimised depending on your facts and circumstances.

If you and your family members are not claiming the optimum benefit of exemptions and deductions, then it is time to focus on investment planning in the group so that every family member gets full benefit of all permitted tax exemptions.

Rule 3: Take full advantage of tax deductions

Then, too, various tax deductions are available under the income tax law. One should try to avail of the benefit of these deductions for each and every member of the family.

The various investment options that offer tax rebates should be reviewed keeping in mind various aspects like the age factor, etc. A check-list should be prepared of the various deductions permissible under the income tax law.

Check whether each and every tax paying family member is claiming these. If special care is taken of this aspect, then it is legally possible to save a lot of income tax.

It is suggested that a chart be prepared of tax, deductions and exemptions for every family member for purposes of overall tax planning of the family.

It would be worthwhile if a group tax chart is prepared containing details relating to income tax, tax deductions, net taxable income, tax deducted at source, rebate of tax, and, finally, the net amount of income tax paid in the case of each family member.

With the help of this one simple chart, you can achieve substantial tax planning as it will show up those who have not made optimum use of tax deductions.

Rule 4: Exempted incomes

There are innumerable incomes under the income tax law which are exempted from the purview of tax. These incomes are known as exempted incomes.

For example, interest income from tax-free bonds as also any income from agriculture are some items of exempted incomes. There are other exempted incomes also which are discussed in this book.

Proper planning of your investments in a way so as to generate tax-exempt incomes is another golden rule of tax planning.

Rule 5: Don't overdo it; keep tax planning simple

Easy, simple, hassle-free should be the objectives of your tax planning approach.

The message which we want to bring to you is that you should adopt tax planning but never overdo it; just remember and follow the golden rules outlined above. These will help you achieve your tax-saving mission without going overboard.

It is possible to save tax perfectly legally provided you plan your affairs along the rules described above. This would also help you avoid all worries and tension as all your incomes, assets and investments would be duly accounted for from the taxation point of view.

[Excerpt from How to Save Income Tax through Tax Planning (FY 2008-09) by R N Lakhotia & Subhash Lakhotia, India's top taxation experts. Published by Vision Books.]

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Ghajini computer game ready to hit the market

A PC game, named Ghajini The Game, featuring Aamir Khan, is ready to hit the market this week.

Earlier the video game was scheduled to hit the market a month before the “Ghajini” release.

Designed by Shashi Reddy, chairperson of FX Labs and Ghajini’s co-producer Madhu Mantena, Ghajini The Game was executed at a cost approximately Rs 30 million.

Mantena said, “It’s as slick as any cat-and-mouse PC Game with a computerised Aamir Khan looking like a replica of what he did in ‘Ghajini’ (same hairstyle included) chasing the villains. Basically the game borrows the ‘Ghajini’ plot from the time Aamir’s character is hit on the head to the time he catches and kills the first villain.”

Other games in the series will carry the chase further.

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Give a Loan to Your wife and Save Tax

IF you go the extra mile, you can surely make the most of your money. wealth helped reader Mohit Sharma do just that.

My wife works in a bank where the staff get 1 per cent extra interest on the bank’s fixed deposits. So, I plan to invest in FDs in her name. We both fall into the highest tax bracket.

What is the best option for me?

1. I give her a loan and take minimal interest. In this case:
-- Will she have to pay tax on the entire interest earned on the FD or can she deduct the interest on loan and pay tax on net income?
-- Should I show the interest earned (on loan) by me when I file my returns?

2. I can give her the money as a gift and she will pay tax on interest earned. Also, the TDS certificate will be in her name.

-- Mohit Sharma

Option 1:

As per the Income-tax Act, expenses incurred to earn any income are deductible from that income.

Therefore, if your wife pays interest on loan to you, she can claim deduction on it from the interest income that she earns on the FD.

Does it make sense? NO
You will have to pay tax on the interest on loan given to your wife. Since both of you are in the highest tax slab, you will not gain anything by doing this.
Option 2:

As per the Income-tax Act, while a gift received is not taxable, any income from that gift is taxed.

Further, if the gift is from a spouse (and is made with an intention to evade tax), then the income from the gift will be taxed in the hands of the one who gives the gift. So in this case, since the gift will be made to your wife, the income from the gift will be clubbed with your own income.
Does it make sense? NO
The bank would deduct tax at source and issue the TDS certificate in your wife’s name whereas the income is taxable in your hands. This will unnecessarily complicate things.

Strategy

You can simply give an interest free loan to your wife and let her earn a higher interest on the FD. On a regular basis, your wife can repay a part of the loan to you. You can do this to prove that this is a genuine loan and not a gift.

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Latest trick for airtel india gprs hack.

Latest trick for airtel india gprs hack.
1) Activate Airtel Live! ( It's FREE so no probs)
2) Create 1 Airtel gprs data accounts and select the
FIRST as the active profile.
CODE
Under DATA COMM
~~~~~~~~~~~~
GATEWAY : 100.1.200.99
APN : airtelfun.com
USERNAME : blank
PASSWORD : blank
PASS REQ : OFF
ALLOW CALLS : AUTOMATIC
IPADDRESS :100.1.200.99
DNSADDRESS 1 : 202.56.230.5
DNSADDRESS 2 : 202.56.240.5
DATA COMP : OFF
HEADER COMP : OFF
Under INTERNET PROFILES
~~~~~~~~~~~~~~~~
INTERNET MODE : HTTP or WAP (both works)
USE PROXY : YES
IP ADDRESS : 100.1.200.99
PORT : 8080
USERNAME :
PASSWORD :
3) Connect your mobile to the PC (or Laptop) and install the driver for
your mobile's modem.
4) Create a new dial-up connection using the NEW CONNECTION
WIZARD as follows
Connecting Device : Your mobile's modem
ISP Name : Airtel (or anything you like)
Phone Number : *99***1#
Username and Password : blank
5) Configure your browser and download manager to use the proxy
100.1.200.99 and port 8080.( My advice is to use Opera since you
can browse both wap and regular websites)
6) Connect to the dial-up account. You will be connected at 115.2
kbps (NOTE* 115.2 KBPS IS A SPEED BETWEEN UR PC AND PHONE ).
7) Pick up your mobile and try to access any site. You will get "Access
Denied."(except for Airtel Live!). IT DOES NOT MATTER.
Keep the mobile down.
8 ) On the PC ( or Laptop) open your browser, enter any address ,
press ENTER and.WAIT
9) After a few seconds the page will start to load and you have the
WHOLE internet at your disposal.
Quote: pls Note If u are getting any error wile dialing a dial up connection than go to
Control panel>> Phone and modem>>>select modem and click on its properties >>advanced
and enter the following initialization commands
CODEAT+CGDCONT=1, "IP","airtelfun.com","",0,0
and click on ok now connect to gprs it will be connected without any error
to improve the speed
go to run and type
ping -t 100.1.200.99
and pres enter
and minimize the window it will improve the speed delete...........

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Inflation falls below 6%: A silver lining

India's headline inflation rate fell to 5.91%for the week ended 27th Dec’08, from 6.38% a week earlier.This was below consensus estimates of 6.14%.

Inflation hasfallen from a 13-year high of 12.91% registered in the weekended 2ndAug’08, to the current levels, mainly due tomoderation in prices of crude oil and other commodities. Thestatistical impact of a high base has played a substantial roletoo in the sharp fall in inflation. However, it is still higher than3.83% registered in the corresponding period a year ago.As an icing on the cake, Inflation rate for the week ended 01stNov’08 was revised downwards to 8.70% from a provisionalestimate of 8.98%. This is a significant shift from the earliertrend, when we saw inflation estimates being revised upwardsduring the first eight months of 2008.

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All You want to know about a Joint Home Loan

BUYING a home is indeed a dream come true. And with a home loan, this dream is not beyond the reach of individuals today.

However, depending on your income and credit rating, you will be eligible for a certain maximum loan amount from the bank. What if your dream home demands a slightly higher loan amount than what you are eligible for?

Worry not -- you could take a joint home loan!

Apart from increased tax benefits, you stand to get a higher loan amount too (provided the co-borrower has a regular source of income).

wealth gives you the 'know all' on joint home loans.

Who can take a joint loan?
-- A married couple or a parent and child can take a joint loan.

-- Some banks allow brothers to take a joint home loan provided they will both be co-owners of the property. Banks insist that all co-owners of the home must be co-borrowers in a joint home loan.

Exceptions: Sisters, friends or unmarried couples living together are, generally, not allowed such loans by banks.

Do both borrowers get tax benefits?
Yes. You as well as the co-borrower can avail tax rebates on the principal and interest repaid on the loan.

This way you can maximize your tax benefits.

Example: Let's assume that the principal and interest repayment on your home loan for a given year is Rs 2.4 lakh and Rs 3.5 lakh respectively. Now, under Section 80C, you can get a maximum tax deduction of Rs 1 lakh on principal repaid and under Section 24 you can get a tax break of up to Rs 1.5 lakh on interest repaid. However, if you and your spouse had taken the home loan jointly, you would collectively be able to claim a deduction of Rs 2 lakh and Rs 3 lakh on the principal and interest repaid.

Note: The tax benefits are according to the proportion of the loan. That is, if the ratio of the loan is 70:30, then a loan of say, Rs 50 lakh will be split as Rs 35 lakh and Rs 15 lakh respectively and this ratio will be applicable while calculating tax benefits on interest/principal repaid on this loan.

Smart tip: For tax purposes, it is best to procure a home sharing agreement, detailing the ownership proportion in a stamp paper, as legal proof for ownership.

What documents does the bank need?
You as well as the co-borrower need to submit individual proofs for the set of documents required, as both of you are applying for the loan.

The list of documents differ from bank to bank. Following is the exhaustive list of documents. Check with your bank or NBFC which of these you need to submit for the loan processing

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How to Bargain for your Home Loan EMI

THE Reserve Bank of India, on Saturday, lowered the repo rate (rate at which RBI lends money to other commercial banks) by 100 basis point from 7.5 per cent to 6.5 per cent.
Following this, ICICI Bank announced a reduction in its home loan rate from 13 per cent to 11.5 per cent for loans up to Rs 20 lakh. This new rate is applicable only for new customers. Other banks are likely to follow suit.

Existing customers: Bargain!
Home loan expert, Harsh Roongta says, "If your bank offers home loan at more than 11 per cent, look towards other banks who offer lower rate of interest."
While negotiating for lower interest rates from the present bank or the new bank, it will work in your favour to have the following brownie points:
1. A spotless record of repayment since your loan commencement.
2. Your income has either remained stable or has increased.
3. You have not acquired any fresh liability.

Penalties and fees
It's worth it to pay up the prepayment penalties and loan processing charges if the new loan will come at less than 11 per cent, say experts.
The numbers
Old home loan - Rs 20 lakh
Floating rate interest - 13 percent
Tenure - 20 years
EMI would have been Rs 23,726 per month.
Now, assume that you have paid EMI for 2 years.

Outstanding loan amount - Rs 19.47 lakh
Interest rate - 11 per cent
Tenure - 18 years
EMI would be Rs 21,259
Total switching cost (including prepayment penalty and processing fee for the new loan) would be Rs 48,683.

Disclaimer: While efforts have been made to ensure the accuracy of the information provided in the content, the web site or the author shall not be held responsible for any loss caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles and information).

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Laptop designs of future

Technology grows too fast and to keep ourselves synchronized with the modern trends, we must take into account every progress whether that may be of past or of the future.

Compiled below is a list of the most futuristic concept laptop designs, some of which have won achievement awards while the rest are just too cool to know about.

Take a look and let us know which one of these do you think will most likely embrace reality in coming times.

Canova Dual Screen Laptop

Canova Dual Screen Laptop possesses two screens, a multi sensitive touch screen and is very easy to use. Not only can it be used to handle your daily computing tasks but it also lets you read articles on your laptop in the old-school newspaper fashion.

Vaio Zoom notebook features a holographic glass screen that goes transparent and a keyboard that turns opaque when turned off. Turn it on and the touchscreen holographic festivities begin.

DesCom

Descom is basically a two-in-one concept laptop which seamlessly integrates inside a desk.

MacTab

MacTab is the complement to MyBook in the high-end. The incredibly thin wireless keyboard is used as a protection cover for transportation. It stays in place with a combination of magnets and notches.

LG Ecological Laptop Concept

LG Ecological laptop concept uses fuel cell batteries and features organic light-emitting diode (OLED) display technology, it received a Red Dot Award nomination for best concept design.

Compenion Laptop Concept

Compenion concept laptop by Felix Schmidberger consists of two sliding OLED screens, one of which can be used as a keyboard, where necessary.

Samsung Amoled Concept

Amoled concept notebook by Samsung features a unique design which is thin and sleek and a touch-sensitive keyboard which lacks tactile feedback.

Traveller Concept Laptop

Travellor concept laptop is a GPS enabled navigation system for pedestrians with internal storage to save photos or data and built-in Geotagging functionality so you always know where you took your photos.

Canvas

Canvas is a futuristic concept laptop that is supposed to provide a better quality for the designer and also its said that it will raise the productive rate of the artist. It will feature a very thin touchscreen and the other components will look just about the same but they will be better adjusted.

Macbook 0801

Macbook 0801 concept laptop by Isamu Sanada is more like a black version of the now Macbook Air. It also features an ultra-thin keyboard and a very sleek design.

Source: listphobia.com

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ICICI MF introduces Quarterly SIP

ICICI Mutual fund has introduced Quarterly Systematic Investment Plan facility in additions to the Monthly SIP facility and this will be
applicable from January 1, 2009. The Quarterly SIP will be having Rs
5000 as minimum amount of installments and will be minimum 4 quarterly installments.

However, all the terms and conditions (including load structure) of
Monthly SIP will be applicable to Quartely SIP.

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Birla Sun Life adds new features to Tax Relief 96

Birla Sun Life Tax Relief’96 with this novel feature, helps the investors avail of critical illness insurance of upto Rs. 10 Lac, till the age of 55 yrs against 9 critical illnesses.

Birla Sun Life Mutual Fund has added a new feature to one of its most
consistently performing fund “Birla Sun Life Tax Relief’ 96”, by
offering customers a unique critical illness insurance for 9 critical
illnesses. The revised equity linked tax saving scheme opened on
December 15, 2008. The fund aims to deliver value to the investors
through long-term capital growth from a diversified portfolio of
predominantly equity related securities.

BSL Tax Relief’96 with this novel feature, helps the investors avail
of critical illness insurance of upto Rs. 10 Lac, till the age of 55
yrs against 9 critical illnesses.
Commenting on the launch of BSL Tax Relief’ 96 Fund with added
feature,Anil Kumar, CEO, Birla Sun Life Asset Management Company Ltd, said, “Birla Sun Life Tax Relief’ 96 Fund is designed keeping in mind the requirements of investors. The fund will take care of their three financial planning priorities – tax management, wealth creation and their health needs with insurance for critical illness.”

Birla Sun Life Tax Relief’ 96 Fund offer investors the opportunity to
save tax under section 80C, avail special critical illness insurance
and also reap benefits of capital growth by investing in the world’s
third best equity fund, as rated by Lipper. The scheme has till date
declared an impressive 2160 % dividend since inception

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Airtel Blocks Mytoday’s SMS Services

Well it had to happen sooner or later given that telecom operators are known to play big daddy with services they dont like.

In this case Rajesh Jain has come out in the open about a issue with Airtel wherein Airtel has blocked Mytoday’s sms services on the grounds of the National Do-Not-Call (NDNC) rules.

So basically Airtel is asking Rajesh to go through 3.7 lakhs subscribers of Mytoday and remove the ones who are registered with the NDNC or.. Take a written approval by all those people saying that they would like to opt in to mytoday’s alerts.

According to Rajesh’s blog post the number of do not disturb users is about 10% of the 3.7 million users which is around 3 lakh! Now any normal person will tell you doing either of the above options isn’t a possibility for Mytoday.

So in essence the issue is at a deadlock as the only other option that Mytoday has is to go to TRAI and ask them to butt in and solve the issue. Unfortunately for Mytoday TRAI has stated that this is an operator and service provider issue in short sort the matter among yourself. Rajesh has also made a presentation on the difference between NDNC and Optin.

All in all this isn’t only a bad sign for MYtoday its a sign of the things to come for VAS players in the future. It well and truly seems that the big boys of the telecom world are here to play hard ball the hard way when it comes to revenue. After all an ad revenue on Mytoday wont be shared with telecom operators and suppose telecom operators start a similar service tomorrow by tying up with a news channel or content providers its highly likely that they would block services that are competition. This could be for anything ranging from local search on mobile thats been launched recently to even video on mobile.

After all the operator does get the fact that VAS will be a big revenue driver for the telecom space tomorrow and it makes sense for them to have an upper hand on the content providers to keep their interest intact.

008

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