Friday, May 27, 2011

Change in Registrar and Transfer Agents from CAMS to Sundaram BNP Paribas Fund Services (SBFS)


As you are aware, Sundaram BNP Paribas Fund Services (SBFS) has been acting as Registrar and Transfer Agents (R&TA) for 36 schemes of Sundaram Mutual Fund. Computer Age Management Services (CAMS) is the Registrar and Transfer Agents (R&TA) for 27 other schemes of Sundaram Mutual Fund.

Sundaram Mutual Fund wish to inform you that the R&TA is being changed from CAMS to Sundaram BNP Paribas Fund Services (SBFS) for the 27 schemes as detailed hereunder effective from 6th June, 2011.













 
currently in the process of migrating 27 schemes and have taken steps to ensure smooth transition so as to cause least inconvenience to our investors. Effective from the above said date, all financial and non financial transactions related to the above schemes shall be accepted only at Sundaram BNP Paribas Fund Services-Customer Care Centers,at 140 locations mentioned overleaf and also at the offices of Sundaram Asset Management Company Ltd. Please refer the websites of www.sundarambnpparibasfs.in and www.sundarammutual.com. For any queries and clarifications that you may have, please get in touch with us at our office or call our toll free number 1800 425 4488.




New Fund Offer in FMP (from May 27, 2011- 08th June 2011)



NSE Guidelines for change of password of trading accounts


In an effort to enhance security of the trading accounts of the clients, the National Stock Exchange of India has recommended the following norms regarding change of password.

  1. You will have to change your password compulsorily every 14 calendar days.
  2. On login after the 14th day from your previous change of password, you will be taken to the "Change Password" screen.
  3. The New password cannot be the same as the immediate previous password. (IMPORTANT EXAMPLE: abcd1234 is your password for Jan 1- Jan 14, your password from Jan 15th to Jan 28th can be wxyz4321. From Jan 29th to Feb 10th your password can again be abcd1234.)
  4. The password cannot be the same as your User ID.
  5. The password will have to be alphanumeric, and preferably with one special character.
  6. Special characters that can be used are ! @ # $ % ^ & * ( ).
  7. Your password must have minimum 8 characters and not more than 12 characters.
Disclaimer: The example suggested above is provided for the convenience of the customers and may be followed at their sole discretion and would not be liable for any losses in the adverse event, the trading account is accessed and misused by unauthorized users, on adherence to the above practice

Kotak FMP Series 49. (370 days after date of allotment of units)

Kotak FMP Series 49. 

The New Fund Offer of the scheme opens on June 02, 2011 (Thursday) and closes on June 08, 2011 (Wednesday).
 
MINIMUM INVESTMENT during NFO:
 
Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.
           
OPTIONS:
 
Growth and Dividend Payout.
           
INVESTMENT OBJECTIVE:
 
The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme.
 
LISTING:
 
The units of the scheme will be listed on NSE/BSE on allotment. The units of the scheme may also be listed on the other stock exchanges.
 
BENCHMARK:
 
CRISIL Short Term Bond Index.
 
LIQUIDITY:
 
Units of this scheme will be listed on National Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.
 
MATURITY:
 
370 days after the date of allotment of units.
 
COLLECTION CENTRE
 
Purchases        : At KMAMC Authorized Collection Centre’s indicated on the back cover of the SID.
 
Switch              : At KMAMC Authorized Collection Centre’s, CAMS Investor Service Centre’s & CAMS Transaction Points indicated on the back
                           cover of the SID. Kindly ensure that the switch request is accompanied with the investment application form of
                           Kotak FMP Series 49.
 

Thursday, May 26, 2011

HDFC FMP 92D May 2011 (2) and HDFC FMP 370D May 2011 (2)

HDFC MF has announced to launch 6 new Fixed Maturity plans under HDFC FMP – Series XVIII. The units of these schemes will be listed on the National Stock Exchange of India. The subscription for the following schemes will open and close on the following dates:
 
HDFC FMP 92D May 2011 (2)
Opening Date - 27th May 2011 (Friday) Closing Date - 31st May 2011 (Tuesday)
Allotment Date - 1st June 2011 Maturity Date - 31st August 2011


HDFC FMP 370D May 2011 (2)  
Opening Date - 27th May 2011 (Friday) Closing Date - 31st May 2011 Tuesday) 
Allotment Date - 1st June 2011 Maturity Date - 4th June 2012

Wednesday, May 25, 2011

KOTAK FMP SERIES 48 (272 days after the date of allotment of units.)

NFO Closes on June 02,2011




The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. There is no assurance that the investment objective of the Scheme will be achieved.
SCHEME TYPE
Close ended debt scheme
MINIMUM INVESTMENT DURING NFO
Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.
OPTIONS
Growth and Dividend Payout.
LISTING
The units of the scheme will be listed on BSE on allotment and maybe on other stock exchanges also.
BENCHMARK
CRISIL Short Term Bond Index.
LIQUIDITY
Units of this scheme will be listed on Bombay Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.
MATURITY
272 days after the date of allotment of units.
COLLECTION CENTRE
Purchases /Switches: At KMAMC Authorized collection centers, CAMS investor service centers & CAMS transaction points as indicated on the back cover of the SID. Kindly ensure that the switch request is accompanied with the investment application form of Kotak FMP Series 48
For any distributor queries, please contact your relationship manager or write to us
at advisorhelp@kotak.com.

Tata Fixed Maturity Plan Series 35 Scheme A ( 368 days maturity)



The investment objective of the schemes is to generate income and / or capital appreciation by investing in wide range of Debt and Money Market instruments having maturity in line with the maturity of the schemes. The maturity of all investments shall be equal to or less than the maturity of respective schemes.

Scheme TypeClose Ended
Scheme CategoryIncome
New Fund Launch Date25-May-2011
New Fund Earliest Closure Date 
New Fund Offer Closure Date01-Jun-2011
Indicate Load SeparatelyEntry Load: Nil Exit Load
Offer Price (Rs.)10-
Minimum Subscription Amount10,000/-
For Further Details Please Visit Websitewww.tatamutualfund.com
 
Please Click here for Scheme Information Document

Birla Sun Life Fixed Term Plan - Series DD (A Close ended Income Scheme)

Birla Sun Life Fixed Term Plan - Series DD
A Close ended Income Scheme
NFO Period:  May26, 2011 to June 06, 2011

Salient points of Birla Sun Life Fixed Term Plan – Series DD:

The duration of the scheme is 367 days from and including the date of allotment.
The new fund offer price is at Rs. 10 / unit.
The applicable load for Entry and Exit load is NIL. No redemption/repurchase of        units shall be allowed prior to the maturity of the scheme. Investors wishing to exit        may do so through stock exchange mode.
The scheme has Dividend (Payout) and Growth Option and 

The minimum   application amount of Rs. 5,000/- and in multiples of Rs. 10/- thereafter during       

The NFO period.
The New Fund Offer opens on May 26, 2011 and closes on  June 06, 2011.
So, contact your financial advisor today and ask for more details
.

New Fund Offers in mutual funds in debt and equity funds (May-June 2011)





Tuesday, May 24, 2011

ICICI Prudential Multiple Yield Fund -Plan A (An Close Ended Income Scheme)












ICICI Prudential Multiple Yield Fund - 3 Years Plan A


NFO open from 20th May to 31st May, 2011
Scheme name ICICI Prudential Multiple Yield Fund – 3 Years Plan A
Tenure 1100 days
NFO Period 20th May to 31st May, 2011
MICR cheques Till end of business day on 31st May
RTGS and transfer cheques Till end of business day on 31st May
Switches Till cut off time (specified for switch outs in the source scheme) on 31st May
Date of Maturity 11th June 2014; Wednesday
Option to be launched * Cumulative and Half Yearly Dividend Payout
* Default Sub Option - Cumulative
Entry / Exit Load Nil
Minimum Application Amount Rs. 5000 and in multiples of Re.10 thereafter
Liquidity To be listed
Benchmark CRISIL Composite MIP Blended Index




Asset Allocation pattern of Scheme
 
Type of security Indicative allocation (% of corpus) under normal circumstances Risk Profile
Money Market instruments, Short term and medium term debt securities/ debt instruments and securitised debt 70-100% Low to medium
Equity or Equity related Securities 0 – 30% Medium to high




Presentation – Religare Nifty ETF












Religare Nifty Exchange Traded Fund NFO Period: May 23 to June 6, 2011.

Religare Nifty Exchange Traded Fund
NFO Period: May 23 to June 6, 2011.


Why ETFs?: An ETF is an open-ended Mutual Fund which trades like a stock, the underlying composition is a basket of securities. Most ETFs are like an index fund that track a particular index, viz. S&P CNX Nifty. Globally, ETFs have grown in size, with a current size of $1542 bn (as on Feb 2011).


Benefits for investors:

Over a 5-year period, 64% of large cap funds have underperformed the S&P CNX Nifty. Investors can benefit by directly investing into the benchmark index.

Index ETFs present a low-cost option. (Average Expense Ratio of 0.63% p.a. for ETFs as compared to 2.12% for Large Cap Funds)

More Transparency – ETFs track the underlying index, so the investor is aware where his money is being invested

More Trading Flexibility – ETFs are priced throughout the day and can be bought and sold on the exchange, where they are listed ETFs can be bought or sold in as little as 1 unit multiples

Why Nifty?: The S&P CNX Nifty represents 50 of India’s premier blue-chip companies, which are well-diversified across sectors – it is a direct play on the India Growth Story. Companies part of the index are the most liquid Indian equity securities traded on the National Stock Exchange, comprising 64.38% of the free float market capitalization.

Religare Nifty ETF is an Exchange-Traded Fund that will invest in securities which are constituents of S&P CNX Nifty Index in the same weight as in the underlying index. The Fund is designed to generate returns that closely correspond to the returns generated by the securities represented by the S&P Nifty Index, subject to tracking error, if any. The fund will follow a passive investment strategy - endeavour to track the benchmark index with as low tracking error as possible. It is a low cost option to invest in the Index, which trades like a share.

  Religare Nifty ETF – Key Features

Easily Accessible

- During NFO – Investors can directly buy from the Fund House.

- Post NFO – Units will be listed on National Stock Exchange. Investors can buy, sell through their normal brokerage accounts.

Cost Effective

- Low on cost compared to index funds.

Liquidity

- Not limited to Secondary Market Trading at NSE.

- Large Investors and Authorised Participants can create and redeem in lots of 10,000 units directly with the Fund House.

Transparent

- Holdings and NAV of Religare Nifty ETF available on a real time basis and can be tracked at www.religaremf.com.

  Who should invest?
Investors who want to keep investments simple, buy the market (invest in the top 50 quality companies) and keep the costs low.

Investors who believe in passive investment strategy and are looking for selective diversification.


Please find enclosed Religare Nifty ETF KIM cum Application Form & One Pager for your kind perusal.For any support or assistance, you may call Religare Mutual Fund Relationship Manager or visit our website at www.religaremf.com




Friday, May 20, 2011

Reliance Fixed Horizon Fund XVIII Series 11, a close ended income scheme with a tenure of 109 days.

Reliance Fixed Horizon Fund XVIII Series 11, a close ended income scheme with a tenure of 109 days.

The primary investment objective of the scheme is to seek to generate regular returns and growth
of capital by investing in a diversified portfolio of: -
 Central and State Government securities and
 Other fixed income/ debt securities normally maturing in line with the time profile of the Scheme with the objective of limiting interest rate volatility



Scheme Features:
  • NFO Opening Date : 25 May, 2011
  • NFO Closing Date : 26 May, 2011
Duration of this fund: 109 days from the date of allotment of units 


With investments in Money Market instruments and Fixed Income/Debt Securities, Reliance Fixed
Horizon Fund XVIII Series 11 provides a good investment opportunity due to the following reasons; 

Risk adjusted returns on a holding period of 109 days with Nil exposure in equities
Low Volatility in returns since the maturity of the instruments in the portfolio will be in line with the maturity of the scheme 
Investment in good credit quality debt and money market instruments.

launch of DSP BlackRock FMP- 3M-Series-36


DSP BlackRock FMP – 3M – Series-36
Date of Opening
May 23, 2011 (Monday)
Date of Closing
May 26, 2011(Thursday)
– All switches 
needed to submitted before 3:00 p.m. on the closing date.
– All applications 
need to be submitted before 4.00 p.m. on the closing date.
Options
Growth (Default option) 
and Div Payout
Min Application
Rs.5,000/- and multiples of Rs.1 thereafter
Date of Maturity                     
August 25, 2011 (Thursday)
Date of payout
August 26, 2011 (Friday)
Listing
The units are proposed to be listed on NSE
or any other recognized Stock Exchange 
as may be approved by the Trustee, 
within 5 business days from the date of allotment.
Loads

Entry Load – NIL
Exit Load – Not Applicable 
(The Units under the Schemes 
cannot be directly redeemed
with the Mutual Fund 
as the Units will be listed on the Stock Exchange/s).


Launch of DSP BlackRock FMP – 12M – Series-20SP

 DSP BlackRock FMP – 12M – Series-20
Opens: May 23, 2011 (Monday)
Closes:May 26, 2011(Thursday)

DSP BlackRock FMP – 12M – Series-20
Date of Opening
May 23, 2011 (Monday)
Date of Closing
May 26, 2011(Thursday)
– All switches 
needed to submitted before 3:00 p.m. on the closing date.
– All applications
need to be submitted before 4.00 p.m. on the closing date.
Options
Growth (Default option)
and Div Payout
Min Application
Rs. 5,000/- 
and multiples of Rs.10 thereafter
Date of Maturity                     
May 31, 2012 (Thursday)
Date of payout
June 1, 2012 (Friday)
Listing
The units are proposed to be listed on NSE 
or any other recognized Stock Exchange
as may be approved by the Trustee,
within 5 business days from the date of allotment.
Loads

Entry Load – NIL
Exit Load – Not Applicable
(The Units under the Schemes
cannot be directly redeemed
with the Mutual Fund 
as the Units will be listed on the Stock Exchange/s).




Wednesday, May 18, 2011

When debt funds become unattractive!!!

When interest rates rise, bond prices come down, which, in turn, reduces the net asset value (NAV) of debt funds. On the other hand, falling interest rates result in a spike in the prices of the underlying bonds, leading to a rise in the NAV. So, when interest rates are increasing, debt funds become unattractive. 

So how to get benefit from debt funds when interest rates are increasing:

1. Go for funds with short maturities:
Shorter duration funds are not affected as much by interest rate fluctuations as the long-term ones.
The best way to select debt funds is to look at their maturities, apart from the quality of underlying assets and the liquidity offered. So, in the current scenario, buying a debt fund with a shorter average maturity will be a better choice. Not only will you earn higher returns, but will also benefit from better liquidity.

2. Adjust your Portfolio
 Depending on the interest rate outlook, investors should alter their debt portfolios in favour of products with suitable maturities. So, if the rates are falling, you should invest in longer maturity debt funds, such as income funds and gilt funds. However, in a rising rate scenario, short duration plans such as liquid funds, ultra short-term funds and fixed maturity plans (FMPs) are the right choices. 




Source:Economic Times of India






New Fund Offer - Sundaram Fixed Term Plan-AU - 18 Months

Sundaram Mutual Fund announces the launch of Sundaram Fixed Term Plan-AU – 18 Months.
The objective of the Scheme would be to generate income with minimum volatility by investing in debt and money market securities, which mature on or before the maturity of the scheme.

Details are as follows:

Name of the Scheme : Sundaram Fixed Term Plan-AU – 18 Months

NFO Opens on : 23rd May 2011 NFO Closes on : 27th May 2011

Tenure : 18 Months (closed ended fund)

Option : Growth  Dividend – Payout

Cheque must be in favour of SMF FTP-AU

Offer Price    (Rs.)10
Minimum Subscription Amount  Rs. 5000


  Please Click here for Scheme Information Document

Dividend in Birla sun Life Mutual Fund

Birla Sun Life Equity Fund
(An Open ended Growth Scheme) Rs. 3.00/- per unit Dividend declared on May 20, 2011(Record Date)

Birla Sun Life Tax Plan Rs. 1.00/- per unit Dividend declared on May 20, 2011(Record Date)
(An Open ended Equity Linked Savings Scheme with a lock-in of 3 years)

Birla Sun Life Top 100 Fund Rs. 0.80/- per unit Dividend declared on May 20, 2011(Record Date)
(An Open ended Growth Scheme)

 
After the payment of dividend, NAV will fall to the extent of the payout and statutory levy, if any.
Past performance may or may not be sustained in the future

The increased interest from foreign investors & positive outlook of India’s industries suggest that India’s economy is set for a promising growth.

This is a good opportunity for you and your family/friends to potentially gain from this growth.

To know more or invest in any of our schemes, we request you to contact your financial advisor at the earliest.

Saturday, May 14, 2011

Mutual funds Tax Reckoner { Tax Rates as per Finance Act 2011}
































(a) In the case of a resident woman below the age of 60 years, the basic exemption limit is ` 190,000.
(b) In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is ` 250,000.
(c) In the case of a resident individual of the age of 80 years or more, the basic exemption limit is ` 5,00,000.
(d) Education cess is applicable at the rate of 2% on income-tax and secondary and higher education cess at the rate of 1% on income-tax.

Disclaimer: The information set out in this document is for information purpose only & does not constitute any legal or tax advice. The investors are advised to consult their tax consultant to know the consequences of tax, if any. Income Tax benefits to the mutual fund & to the unitholder is in accordance with the prevailing tax laws as certified by the mutual
funds tax consultant. The investor shall be solely responsible for any action taken based on this document. this blog shall not be liable in any manner for the consequences of such action taken by the investor. 


Source: ICICI Prudential MF

Self declarations by the depositor not to deduct tax on the deposit – form 15G/H


Self declarations by the depositor not to deduct tax on the deposit – form 15G/H

Form 15G-
Form 15G can be submitted by individual below the Age of 60 Years (as age of senior citizens is lowered to 60 years of age from the existing 65 years of age. The Government of India took this decision on 9th June, 2011.)
Form 15G is for everyone whose income is below the taxable limit.
You cannot submit the Form 15G if you are already the tax payer.
Declaration under section 197A(1) of the Income-tax Act, 1961, to be made
by an individual claiming receipt of dividend without deduction of tax



FORM NO.15H:
If you are a senior citizen
This form should be submitted to all the branches where you have the deposit. For example you have deposit in three SBI bank branches Rs.100000 each. You must submit the Form 15H to each branch.
Submit this form before the first payment of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of year. You have to file the IT returns and claim the refund from the Income Tax.
To avoid these process, good idea to submit the forms at the beginning of the assessment year.
Declaration under sub-section (1C) of section 197A of the Income -tax Act, 1961, to be made by an individual who is of the age of sixty-five years or more claiming certain receipts without deduction of tax

 Also understand section 206AA
Section 206AA is related to PAN details are compulsory for TDS eligible payments
as per this wef 01.04.2010 "every person who receives income on which TDS is deductible shall furnish his Pan, falling which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO depositis"
Also note in absence of PAN details, Form 15G/H and other exemptions certificates will be invalid even if submitted and Penal TDS will be applicable.

check this complete details on section 206AA
Insertion of new section 206AA.
69. After section 206A of the Income-tax Act, the following sec­tion shall be inserted with effect from the 1st day of April, 2010, namely:—
“206AA. Requirement to furnish Permanent Account Number.—(1) Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (hereaf­ter referred to as deductor), failing which tax shall be deducted at the higher of the following rates, namely:—
           (i)  at the rate specified in the relevant provision of this Act; or
          (ii)  at the rate or rates in force; or
         (iii)  at the rate of twenty per cent.
(2) No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A shall be valid unless the person furnishes his Permanent Account Number in such declaration.
(3) In case any declaration becomes invalid under sub-section (2), the deductor shall deduct the tax at source in accordance with the provisions of sub-section (1).
(4) No certificate under section 197 shall be granted unless the application made under that section contains the Permanent Ac­count Number of the applicant.
(5) The deductee shall furnish his Permanent Account Number to the deductor and both shall indicate the same in all the corre­spondence, bills, vouchers and other documents which are sent to each other.
(6) Where the Permanent Account Number provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his Permanent Account Number to the deductor and the provisions of sub-section (1) shall apply accordingly.”.
TDS stands for Tax Deducted at Source. This means a part of tax required to be paid by the assessee, is deducted by the person paying income to him. Thus the tax is deducted at the source of income itself.

Individuals or HUF’s carrying on a business or profession, where their gross sales or turnover exceeds Rs. 40 lacs (in case of business) or Rs. 10 lacs (in case of profession), are liable to deduct tax at source on all specified payments except for payment of royalty or payment to contractor.

TDS has to be deducted on the following payments:

• Payment of Salary [Sec.192]

• Interest on securities ( other than exempted and Central/State Government securities [except 8% Savings Bonds,2003] to a resident [Sec. 193]

• Interests on Gold Bonds, if the value of the Bonds held during the relevant period exceed Rs. 10,000 [Sec. 193]

• Interest on listed debentures where the total exceeds Rs.2,500 p.a. [Sec.193]

• Payment of Dividends.

• Interest on deposits with housing finance companies exceeding Rs. 5,000 p.a. [Sec.194A]

• Interests on time-deposits with a banking company or a co-operative bank where the interest exceeds Rs 10,000 p.a.

• Interest on compensation awarded by the Motor Accidents Claims Tribunal where such interests exceed Rs. 50,000 p.a.

• Cash won from lotteries and crossword puzzles, card game or any other game exceeding Rs. 5000. [Sec. 194B]

• Winnings from horse races exceeding Rs. 2500 [Sec. 194BB]

• Payments credited or likely to be credited to contractors and sub-contractors by the Government, local authority, corporation, company, co-operative society, trust, university or firm, exceeding Rs. 20,000 for carrying out any work or when aggregate of such payments exceeds Rs. 50,000 in a financial year [Sec. 194C]

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