Wednesday, August 31, 2011

How to check the PAN Number details??



1. If you want to check which pan number is allotted to you


we can check the pan cad number details with help of card holder details like surname, middle name, last name and date of birth.

please go thru this https://incometaxindiaefiling.gov.in/portal/knowpan.do link to check PAN card details.

2. If you want to check/track your pan status visit this link
https://tin.tin.nsdl.com/tan/StatusTrack.html

Tuesday, August 30, 2011

5 easy steps to investing in Mutual Funds!!



Step 1: Search: Where to look for if you want to begin saving in mutual funds
Mutual funds are much like any other product, in that there are manufacturers who provide the product and there are dealers who sell them. Large banks to organized brokerage houses to Individual Financial agents get empanelled with Mutual Funds to provide advice and assistance to customers who want to buy units. Mutual funds units can now also be bought over the Internet.

Contacting an Investment advisor in a bank or a brokerage house or an Independent Financial Advisor is the first step to gathering information.

Step 2: Evaluation: choosing the right mutual fund for you 
Each Mutual fund offers a variety of schemes to suit differing needs of investors. The Bank / Brokerage house / Individual Financial Advisor helps you make the choice based on your needs

As an investor one may

a) want to invest for the short term or long term want to invest
b) want regular income or growth
c) want to target lower risk or higher returns
d) be convinced of a particular sector and want to invest in it

Remember, just like a salesman in a gift shop, your investment advisor can help you the most if he knows what you are looking for.

Step 3: Purchase
After you have decided to save, you may have to decide among the various investment and withdrawal options that any fund offers to its investors. Most of these schemes also offer various options to customize your operation of the fund to your needs:

Systematic Investment Plan (SIP) 
Allows you to save a part of your income regularly. Also used to reduce risk when investing in schemes targeting aggressive growth.

Systematic Withdrawal Plan (SWP)
Allows you to withdraw a part of your investment regularly. Used when you want to withdraw your investment for a specific regular payment, like insurance premium payments of monthly/quarterly frequency

Direct debit
Saves the hassle of writing a cheque when making an investment. Your account is debited automatically for the amount invested.

Direct credit
The reverse of Direct Debit. It saves the hassle of enchasing a cheque when withdrawing an investment. Your account is credited automatically with the amount withdrawn.

Dividend plan
Allows you to get Tax-free dividends from your investment. (As per current tax laws).

Growth plan
Allows the income generated from investment to be ploughed back into the scheme. Used by investor targeting growth in their investment.

Some funds carry an entry load, which is a percentage fee deducted from the amount invested before investment. Thus a 2.5% entry load will mean that if you invest Rs. 1 lakh in a Rs. 10 per unit IPO, instead of getting 10,000 units, you will be allotted 9,750 units. Check for presence of such loads and other conditions before investing.

After deciding the choice of mutual fund, investment and withdrawal, you are ready to begin your savings. You need to now fill up an application form and attach a cheque of the value of your investment or mention your account number to have it automatically debited from your account.

Step 4: Post Purchase Monitoring                   
Once you have invested in an ongoing fund, expect a period of two to three days before you receive an account statement on the address mentioned by you in your application form.

The Account Statement

Your account statement indicates your current holding in the scheme that you have invested. Please ensure that all your details have been correctly captured in account statement. Please point out any discrepancies to your nearest CAMS investor Service Centre or the Mutual Fund office. You can request an account statement any time by calling up your nearest CAMS / Mutual fund offices usually mentioned on the back of the account statement.

The transaction slip at the end of the account statement can be used for additional purchases, redemptions or to intimate the mutual fund on any change in bank mandates/address.

The NAVs of all the open-ended schemes are published at the fund's website, financial newspapers and AMFI (Association of Mutual Funds) web-site www.amfiindia.com.

Step 5: Exit
While you should periodically monitor the performance of your investments, we recommend you do not get swayed by short term considerations in deciding your exit. If you have invested in a long term fund, you can spare yourself undue worries by not monitoring the NAV every day or week. Checking the performance once in a while along with your advisor should be fine. Most mutual funds will provide you with a toll free number that works from 9 am to 5 am and a website. For specific assistance you can also use your financial advisors help.

Redemption/ Withdrawal

Just submit your completed transaction within the transacted time for the scheme that you are invested in and deposit the same at the nearest CAMS Investor Service Centre or the office of the fund. You can either get a direct credit to your bank account or you can generally collect the cheque at the CAMS Investor Service Centre/ AMC offices. If you fail to do so then the cheque is couriered to the address mentioned in your account statement. Most funds take 1-3 days to credit your account with your redemption proceeds.

In case an exit load is applicable to your withdrawal and you have redeemed a fixed amount, an additional number of units equivalent to the exit load amount will be liquidated from your investment. You can check this amount with the mentioned exit load when you get the account statement using a simple calculator.

Monday, August 29, 2011

Lost your PAN Card? What to do Next???



If you have lost your PAN card, you need to notify the police and get an FIR from your local police station. You also need to write a letter requesting the issue of a duplicate PAN card. The process is as follows:

The very first thing you need to launch FIR to the local police station that your PAN card been lost .(Now FIR is not compulsory, even person can go ahead without going for first step that is notification in police station and get an FIR, i checked and confirmed the same from my CA)

Secondly you need to write a request letter to the department (where you have applied for the PAN number), to issue a duplicate PAN card.
You can also contact Income Tax Department. The IT dept offers better guidance and better information. Contact concerned persons or to the different facilitation centers. Meet those who work on behalf of department and they will let you know the best possible ways to come out of the problem as well.
You can directly contact NSDL or TIN facilitation centre. They will provide you very imperative suggestion or solution for the problem.

How to apply for a Duplicate PAN Card?

An applicant can apply for a duplicate, also known as a replacement pan card if he had lost or misplaced his old pan card. He is also eligible to get a duplicate permanent account number card if his old pancard has deteriorated & need to be changed. There are other cases as well where the Income Tax Department of India would issue you a duplicate pan card.


The Process:
First step is to fill the correction or the change request form.
You can download that form from various websites, such as:
www.utitsl.co.in  
www.tin-nsdl.com
The Link is as follows: https://tin.tin.nsdl.com/pan/changerequest.html
You can also get the hard copy of the form from any of the nearest branches of UTITSL, NSDL or I T department.
Then start filling up the information mentioned on the form like your filled the form for your Permanent account number and other details. If you don’t remember your number then you just need to fill basic information like Date Of Birth, father’s name etc. Log on to the website https://incometaxindiaefiling.gov.in/knowpan/knowpan.jsp and the lost number will get displayed.or you get the information for this Link https://incometaxindiaefiling.gov.in/portal/knowpan.do


Generally the processing takes 15–20 working days to reach onto the foreign address but if you apply for duplicate it may take 5-6 working days only.

Refer this: Important information for persons making application for a new PAN card / corrections (Request for Reprint of PAN Card or/ And Changes Or Correction in PAN Data)

https://tin.tin.nsdl.com/pan/cr-do-donts.html

Is the dividend re-investment in a Tax Saver fund also subject to a lock-in period of 3 years?

 Is the dividend re-investment in a Tax Saver fund also subject to a lock-in period of 3 years? Also post completion of the 3 year lock-in period, can the non-dividend part be redeemed?

A. Any investment made into an Equity Linked Saving Scheme (ELSS) is subject to a lock-in period of 3 years. This holds good even for dividends from ELSS which is re-invested if the investor has chosen the dividend re-investment option. The implication for the investor is that some portion of his investment will always be locked-in because dividend declared is re-invested and will attract a three year lock-in. However, any portion of the investment, whether originally made or as a result of dividend re-invested, which has completed the lock-in period of three years, can be redeemed by the investor. Alternatively, investors may choose the growth option while investing.

Source: FT

  Director, Centre for Investment Education and Learning

How to measure Mutual Fund performance???


More often than not meritocracy of investments is often decided by the returns. Quite simply then a fund generating more returns than the other is considered better than the other. But this is just half the story. What most of us would appreciate is the level of risk that a fund has taken to generate this return? So what is really relevant is not just performance or returns. What matters therefore are Risk Adjusted Returns.

The only caveat whilst using any risk-adjusted performance is the fact that their clairvoyance is decided by the past. Each of these measures uses past performance data and to that extent are not accurate indicators of the future.

As an investor you just have to hope that the fund continues to be managed by the same set of principles in the future too.

Standard Deviation
The most basic of all measures- Standard Deviation allows you to evaluate the volatility of the fund. Put differently it allows you to measure the consistency of the returns.

Volatility is often a direct indicator of the risks taken by the fund. The standard deviation of a fund measures this risk by measuring the degree to which the fund fluctuates in relation to its mean return, the average return of a fund over a period of time.

A security that is volatile is also considered higher risk because its performance may change quickly in either direction at any moment.

A fund that has a consistent four-year return of 3%, for example, would have a mean, or average, of 3%. The standard deviation for this fund would then be zero because the fund's return in any given year does not differ from its four-year mean of 3%. On the other hand, a fund that in each of the last four years returned -5%, 17%, 2% and 30% will have a mean return of 11%. The fund will also exhibit a high standard deviation because each year the return of the fund differs from the mean return. This fund is therefore more risky because it fluctuates widely between negative and positive returns within a short period.

Beta
Beta indicates the level of volatility associated with the fund as compared to the benchmark. So quite naturally the success of Beta is heavily dependent on the correlation between a fund and its benchmark. Thus if the fund's portfolio doesn't have a relevant benchmark index then a beta would be grossly inadequate.

A beta that is greater than one means that the fund is more volatile than the benchmark, while a beta of less than one means that the fund is less volatile than the index. A fund with a beta very close to 1 means the fund's performance closely matches the index or benchmark.

If, for example, a fund has a beta of 1.03 in relation to the BSE Sensex, the fund has been moving 3% more than the index. Therefore, if the BSE Sensex increased 10%, the fund would be expected to increase 10.30%.
Investors expecting the market to be bullish may choose funds exhibiting high betas, which increase investors' chances of beating the market. If an investor expects the market to be bearish in the near future, the funds that have betas less than 1 are a good choice because they would be expected to decline less in value than the index.

R-squared
The success of Beta is dependent on the correlation of a fund to its benchmark or its index. Thus whilst considering the beta of any security, you should also consider another statistic- R squared that measures the Correlation. The R-squared of a fund advises investors if the beta of a mutual fund is measured against an appropriate benchmark. Measuring the correlation of a fund's movements to that of an index, R-squared describes the level of association between the fund's volatility and market risk, or more specifically, the degree to which a fund's volatility is a result of the day-to-day fluctuations experienced by the overall market.

R-squared values range between 0 and 1, where 0 represents no correlation and 1 represents full correlation. If a fund's beta has an R-squared value that is close to 1, the beta of the fund should be trusted. On the other hand, an R-squared value that is less than 0.5 indicates that the beta is not particularly useful because the fund is being compared against an inappropriate benchmark.

Alpha
Alpha = {(Fund return-Risk free return) - Funds beta *(Benchmark return- risk free return)}. Alpha is the difference between the returns one would expect from a fund, given its beta, and the return it actually produces.An alpha of 1.0 means the fund produced a return 1% higher than its beta would predict. An alpha of -1.0 means the fund produced a return 1% lower. If a fund returns more than its beta then it has a positive alpha and if it returns less then it has a negative alpha. Once the beta of a fund is known, alpha compares the fund's performance to that of the benchmark's risk-adjusted returns. It allows you to ascertain if the fund's returns outperformed the market's, given the same amount of risk.
The higher a funds risk level, the greater the returns it must generate in order to produce a high alpha.

Normally one would like to see a positive alpha for all of the funds you own. But a high alpha does not mean a fund is doing a bad job nor is the vice versa true. Because alpha measures the out performance relative to beta. So the limitations that apply to beta would also apply to alpha.

Alpha can be used to directly measure the value added or subtracted by a fund's manager.

The accuracy of an alpha rating depends on two factors: 1) the assumption that market risk, as measured by beta, is the only risk measure necessary; 2) the strength of fund's correlation to a chosen benchmark such as the BSE Sensex or the NIFTY.

Sharpe Ratio
Sharpe Ratio= Fund return in excess of risk free return/ Standard deviation of Fund

So what does one do for funds that have low correlation with indices or benchmarks? Use the Sharpe ratio. Since it uses only the Standard Deviation, which measures the volatility of the returns there is no problem of benchmark correlation.
The higher the Sharpe ratio, the better a funds returns relative to the amount of risk taken. Sharpe ratios are ideal for comparing funds that have a mixed asset classes. That is balanced funds that have a component of fixed income offerings.

Sunday, August 28, 2011

How to update Bank details in PayPal account??




Step 1: Log in to your PayPal account.
Step 2: Click on Profile on top of the page.
Step 3: Click on My Money under My Profile.
Step 4: Click on Add my bank next to Bank accounts. Read the instructions and enter your information on subsequent pages.

Saturday, August 27, 2011

How to update Postal address in PayPal??




Step 1: Log in to your PayPal account.
Step 2: Click on Profile on top of the page.
Step 3: Click on My Details under My Profile. Business users click on My Business Details under My Profile.
Step 4: Click on Update next to the Address field. Read the instructions and enter your information on subsequent pages.

How to add Purpose Code in PayPal? (For Indian PayPal users)




Step 1: Log in to your PayPal account.
Step 2: Click on Profile on top of the page.
Step 3: Click on My Money under My Profile.
Step 4: Click on Add next to Purpose Code. Read the instructions and enter your information on subsequent pages.

Friday, August 26, 2011

How to add Pan details to your Paypal account!!! (for Indian PayPal users)



Step 1: Log in to your PayPal account.
Step 2: Click on Profile on top of the page.
Step 3: Click on My Details under My Profile. Business users click on My Business Details under My Profile.
Step 4: Click on Add next to PAN. 

Thursday, August 25, 2011

Reliance Mutual Fund Launched "Pull SMS" facility for Partners


Reliance Mutual Fund launched a special SMS facility for all our Partners – “Pull SMS”.

You can now get your investors scheme balances or their last three transactions and much more via SMS instantly on your registered mobile numbers for Folios under your ARN Code.

With the Partner - Pull SMS facility, a partner can avail the following features:


Last 3 transactions details of your investor’s folio

  1. Scheme Balance of your investor’s folios 
  2. Details of the Last Brokerage paid 
  3. Request for Investors E -Account Statement (ESOA) to partners registered E-Mail Id. 

To try this service simply send below SMS to 966 400 1111 & get instant SMS







Eligibility for the Partner – Pull SMS Facility
 Your Mobile Number & E-Mail Id (Email mandatory only for ESOA) should be registered under your ARN Code.
 All investments under folio should be under the same ARN 
**For quick access to Reliance Mutual Fund SMS services in future, “remember to save the number 966 400 1111 in your phonebook”


Wednesday, August 24, 2011

wef September 9, 2011, Franklin India Index Tax Fund to be merged into Franklin India Index Fund – NSE Nifty Plan


Franklin Templeton Mutual Fund has announced that Franklin India Index Tax Fund (FITF) would be merged into Franklin India Index Fund – NSE Nifty Plan (FIIF – Nifty) as on 9 September 2011. Consequently, from the date of merger i.e., effective 9 September 2011, the investors of FITF would become investors of the growth option in FIIF – Nifty.


In terms of prevailing regulatory requirements, investors in FITF are given an option to exit at the prevailing Net Asset Value without any exit load, in case they do not wish to approve the merger. The period of this no load exit offer is valid from 8 August 2011 to 9 September 2011.

Source: NVindia

Also check:

Merger of various equity schemes: Six fund houses have merged schemes from within their stable.

 

Merger of Franklin FMCG and Franklin Pharma into Franklin India Prima Plus

 

Franklin Templeton MF Introduces Facility for Subscription & Redemption of Units through Stock Exchange Infrastructure


With effect from 22 August 2011Franklin Templeton Mutual Fund has extended the facility to subscribe and redeem the units of the following schemes through the infrastructure of the National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Ltd. (BSE).
The following schemes will be traded through stock exchange:

Templeton India Equity Income Fund
Franklin India Prima Fund
Franklin India High Growth Companies Fund
Franklin India Opportunities Fund
Franklin India Index Fund
Franklin Infotech Fund
Franklin Asian Equity Fund
Franklin India Smaller Companies Fund
Franklin Build India Fund
FT India Balanced Fund
Templeton India Income Fund
Templeton India Income Builder Account
Templeton India Ultra Short Bond Fund
Templeton Floating Rate Income Fund
Templeton India Low Duration Fund
Templeton India Government Securities Fund
FT India Monthly Income Plan
FT India Life Stage Fund of Funds

Source:NAVIndia

Merger of Franklin FMCG and Franklin Pharma into Franklin India Prima Plus



With effect from 9 September 2011, Franklin Templeton Mutual Fund has announced that Franklin FMCG Fund (FFF) and Franklin Pharma Fund (FPF) would be merged into Franklin India Prima Plus (FIPP), Consequently, from the date of merger i.e., effective 9 September 2011, the investors of FFF and FPF would become investors of FIPP in the respective plans / options.

In terms of prevailing regulatory requirements, investors in FFF and FPF are given an option to exit at the prevailing Net Asset Value without any exit load, in case they do not wish to approve the merger. The period of this no load exit offer is valid from 8 August 2011 to 9 September 2011.

All systematic transactions including Systematic Transfer Plan (SIP), Systematic Transfer Period (STP), Dividend Transfer Period (DTP) or Systematic Withdrawal Plan (SWP) will continue under Prima Plus for its balance tenure subsequent to the merger.
If investors do not wish to continue the systematic transactions under Prima Plus, they are required to intimate the fund house in writing their unwillingness to continue the said facilities post merger latest by September 9, 2011.

SBI Gold New Fund Offers Minimum investment denomination in Rs 100



SBI Mutual Fund, one of India's largest mutual funds house has launched Gold Fund, an open ended Fund of Fund to enable the common man to invest systematically in gold and take advantage of the current rally. The NFO period is from 22 August 2011 to 5th September 2011.


SBI Gold Fund is an open ended Fund of Fund (FOF) scheme that invests predominantly in the units of SBI Gold Exchange Traded Scheme (SBI GETS). The scheme seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS). You can invest in SBI Gold Fund just like any other mutual fund scheme without the hassles of opening a demat account, providing you an opportunity to take exposure into Gold as an asset class, in a convenient way.

Also check:

 How Gold funds are treated from tax point of view???


The fund is designed in such a way, that an investor can invest through a single investment or through Systematic Investment Plan (SIP) as per their convenience. The minimum denomination of investment is kept as Rs 100, which is very affordable for a common man.


SBI Gold Fund would allocate 95% to 100% of assets in Units of SBI GETS with medium to high risk profile. On the flipside it would allocate upto 5% of assets in Reverse repo and / or CBLO and / or short-term fixed deposits and/or schemes which invest predominantly in the money market securities or liquid schemes with low to medium risk profile.

The scheme offers two plans viz. growth and dividend plan. Under the dividend plan, payout and reinvestment facility is available.

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
SBI Gold Fund offers Systematic Investment Plan (SIP) for the investors. SIP is offered for a minimum of Rs 100 per month.

Entry load charge will be nil for the scheme. Exit load charge will be 1% if exited within 1 year from the date of allotment and nil if exited after 1 year from the date of allotment.
SBI Gold Fund shall be benchmarked against the domestic price of gold. The price here refers to the morning fixing of Gold by London Bullion Market association (LBMA).

Update Your PayPal account to avoid your account getting limited from receiving payments... (For Indian PayPal Account Users)




In order to comply with the RBI Guidelines, all PayPal users in India receiving payments from cross-border sale of goods and services and withdrawing money, are required to update their PayPal account by adding:
  • PAN or Permanent Account Number
  • Purpose Code
  • Bank account in India

By adding this information, you will continue to receive payments into your PayPal account and your account will not be limited from receiving future payments. You will also be able to withdraw money to your bank account in India. Or, allow your money to be auto-withdrawn into your bank account. If you currently have a PayPal balance, you will also need to update your PayPal account with the information.



FAQ Related to current update:


Why do I need to add a Purpose Code, PAN and bank account in India?
In order to comply with the RBI Guidelines all PayPal users in India must add a Purpose Code, PAN and bank account in India to receive export-related payments into their PayPal account and withdraw money.
  Who needs to add PAN, Purpose Code, bank account in India and update postal address?
  • Those who receive payments into their PayPal account and withdraw money, and
  • Those who pay for online purchases and currently have balance in their PayPal account.
Note: All customers can continue to use their PayPal accounts with a card linked to it to safely make online purchases.



I have added all of my information why is my account still restricted?Thank you for adding your appropriate information and for offering PayPal to your customers. In keeping with RBI regulations, we need to validate your PAN information which can take 1-2 days to complete. Your account will be updated as soon as we have completed this procedure.
I only use my account to make purchases, do I need to update my account?
No you do not need to do anything to continue using your credit card funded PayPal account to make purchases across the world.

What is a Purpose Code?
A Purpose Code is a code you select on the type of commercial activity for which you are receiving export-related payments. In accordance with the RBI Guidelines, selecting a Purpose Code for your transactions is essential.

What if I don’t add a Purpose Code, PAN and bank account in India?
In accordance with the RBI Guidelines, all PayPal users in India are required to add a Purpose Code, PAN and bank account in India in order to receive export-related payments into their PayPal account and withdraw money. Your account will be limited from receiving payments, in case you fail to do so.

PayPal customers in India are not able to complete payment for their purchase via PayPal account balance on my website. Why?
 Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. PayPal currently only offers businesses the ability to accept export related payments.


Will my customers be able to complete their checkout with their PayPal account balance?
 Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. This means that your customers will need to link a credit or debit card to their PayPal account to make purchases with PayPal. This change is to ensure that we continue to comply with the RBI Guidelines.
Source: PayPal India

Tuesday, August 23, 2011

A Systematic Investment Plan (SIP) Why it is good for you?


 August 23, 2011


Systematic Investment Plan (SIP): a long term disciplined investment technique under which you invest a fixed sum of money on a monthly or quarterly basis in a scheme at the prevailing NAV. This allows you to save and invest regularly while you are earning.

A SIP is like operating a recurring deposit account with a mutual fund. SIP is simply an investment method that enforces disciplined investment practice. You can plan your investment period anything like one year, three years or 5-10 years depending on your financial position and other commitments.


SIP as the name indicates calls for systematic investment. The markets are volatile. There can be ups and downs. A regular investor benefits tremendously from Rupee cost averaging. SIP is an ideal tool for long term investors. It greatly combats the uncertainties of the market and reduces the impact of a highly volatile market condition.

How it works
When you invest a fixed amount every month, the number of mutual fund units you actually buy depends on the market pricing (NAV) at that point in time. Therefore you tend to buy less units when the market moves up, and more units when the market moves down. This means that you are averaging out your cost.


Benefits of investing in mutual fund through SIP route:
· Small, regular investments: A simple way to enter the market by investing small amounts. Small but regular investments go a long way in creating wealth over time
· Rupee cost averaging: Fewer units during rising markets and more units during falling markets, thereby reduces the average cost per unit
· No need for ‘timing the markets’: No need to select the right time and quantity to buy and sell as timing the market is time consuming and risky. It eliminates the need to actively track the markets.

The success of your investment largely depends on the choice of your mutual fund scheme, after a careful analysis of its investment portfolio and past returns. Though past returns are not an assurance for future performance, they provide the investors a rough idea of what type of scheme they are getting locked into.
 
Investing through a SIP ensures that you do not commit the blunder of purchasing units when the market is at its peak. In a SIP the investor buys small amounts continuously over a time frame. Hence the investment will average out over a period of time. This is a simple investment strategy for accumulation of wealth in a disciplined manner over long term period.

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