NSE-BSE Holidays 2013: List-India Stock Exchange (Stock Market) Holidays 2013

Details about BSE Holidays List 2013 / NSE Holidays List 2013
The year 2012 is coming to a close.

CARE IPO: Review Analysis & Details of CARE Rating Agency IPO

CARE IPO Details, Review, Analysis, Opinion and information on CARE Rating Agency IPO
You may have heard a lot about rating agencies like S&P, Moody's, etc. and related news items like "S&P downgrades XYZ country or stock" or "Moody's upgrades rating of this country from BB to BB+" and so on. So basically, these rating agencies "rate" companies, businesses, countries and similar entities. These ratings are then used by traders and investors to make trading and investment decisions and that's the business of these rating agencies. Similarly, CARE is one of the rating agencies in India and it is planning to come out with its IPO or initial Public Offering.
In this article we will look upon the Details, Review, Analysis of the CARE IPO.

PC Jeweller IPO: Review Analysis & Details of PC Jeweller IPO

PC Jeweller IPO Details, Review, Analysis, Opinion and information on PC Jeweller IPO
You may have seen a lot of TV and print ads from a jeweller, offering purchase of gold ornaments on EMI where last 2 installments will be paid by the jeweller. That's PC Jeweller. and it is planning to come out with its IPO or initial Public Offering.
In this article we will look upon the Details, Review, Analysis of the PC Jeweller IPO.

Bharti Infratel IPO: Review Analysis & Details of Bharti Infratel IPO

Bharti Infratel IPO Details, Review, Analysis, Opinion and information on Bharti Infratel IPO
Bharti Infratel, which is a subsidiary of Sunil Mittal led Bharti Airtel company is planning to come out with its IPO or initial Public Offering.
In this article we will look upon the Details, Review, Analysis of the Bharti Infratel IPO.

Unemployment Insurance India: New Insurance Product for Job Loss

Details about Insurance Products for Unemployment Insurance and Job Loss Insurnace in India. Such insurance provides cover in case the insured looses his job or earnings and these insurance policies will take care of the select items of cost of living
Unemployment Insurance is a new concept to India.

List of Banks offering Priority Banking / Wealth Management Services

What are the banks offering Priority Banking / Wealth Management Services in India?
Priority Banking / Wealth Management Services have been there in India since a long time (atleast 6 years now). Almost all private banks offer this service, and some public sector banks all offer it.
Continuing further from our past article Priority Banking / Wealth Management Services: The reality of services offered, Here is the indicative list of banks which offer Priority Banking / Wealth Management Services in India

Priority Banking: The reality of services offered

I am fine with these indirect charges, as I will get Priority Banking / Wealth Management Services ?
That depends upon your personal expectations and comfort.

Priority Banking: Hidden Cost & Charges with Examples

What is the cost and conditions for Priority Banking / Wealth Management Services ?
The cost and conditions vary from bank to bank.

Priority Banking / Wealth Management Services: High Hidden Cost, Less Practical Use

Details about Priority Banking / Wealth Management Services and whether there is any real benefit or use of such services, and what is the hidden cost you pay (Unknowingly) when you opt for such Priority Banking / Wealth Management Services

7% DA Dearness Allowance Increase for Central Government Employees

Details about 7% hike in DA or Dearness Allowance for Central Government Employees (in service or retired)

Education Loans in India: Easy Availability, Heavy Burden

Details about Education loans availability in India and the high cost & burden associated with it. Also covered are details of Education Loan Application Process

RINL IPO: Review Analysis & Details of Rashtriya Ispat Nigam Limited IPO

RINL IPO Details, Review, Analysis, Opinion and information on RINL IPO
In this article we will look at the upcoming Rashtriya Ispat Nigam Limited RINL IPO.
Let's start with some basic details first:

List of Banks offering Flexi Deposits / Auto Sweep Fixed Deposits

Continuning further from Auto Sweep: Example of Axis & HDFC Bank Comparison, here is the List of Banks offering Flexi Deposits / Auto Sweep Fixed Deposits:

Auto Sweep: Example of Axis & HDFC Bank Comparison

Continuing further from previous article Auto Sweep-in Sweep-out accounts: Beware of conditions and restrictions, here is a comparative analysis of 2 common banks offering the Auto Sweep/ Flexi Deposit/ Super Saver schemes.

Auto Sweep-in Sweep-out accounts: Beware of conditions and restrictions

Details about conditions and restrictions in Flexi Deposit / Auto Sweep-in Sweep-out / Easy FD accounts
Continuing further from part I of this Flexi Deposits / Auto Sweep Fixed Deposits: A Good Banking Service here are details of conditions and restrictions in such scheme:

Flexi Deposits / Auto Sweep Fixed Deposits: A Good Banking Service

Details about Flexi Deposits / Auto Sweep Fixed Deposits / Easy Fixed Deposits or FD in India and how to use them for maximum benefit.

Since last many years, many Banks in India (and abroad) have offered flexi deposit or auto sweep saving schemes. In this article, we will cover all the details of such Flexi Deposits / Auto Sweep Fixed Deposit schemes and see how to utilize them for good benefit.

Axis Bank Happy Ending Home Loan Review: Look before you Leap

The much talked about Axis Bank-Happy Ending Home Loan Scheme (official site) is now open for home loan borrowers. But is that scheme really good and should home loan borrowers consider Axis Bank- Happy Ending Home Loan Scheme? Let's try to answer the question in this article and do a Review, Analysis and cover opinions and details about Axis Bank-Happy Ending Home Loan Scheme.

Stock paying Dividend in September 2012

List of Indian Stocks which are paying dividends in the month of September 2012

Credit Card Closure affects CIBIL Credit Rating Score: Think twice before closing credit cards

Closing your unwanted credit card can affect your credit rating in a negative way.

If you have been in the habit of taking new credit cards every now and then and closing them after sometime for whatever (genuine) reasons, then think twice before you continue such a practice. It might lead to your credit history and credit ratings getting affected in a negative way.

Shriram Transport Finance NCD: Issue Review, Analysis & Details of Secured Non-Convertible Debentures

Details about Shriram Transport Finance NCD Secured Non-Convertible Debentures Issue July - August 2012
It was in December 2011 we saw the Muthoot Finance NCD in the market.
Now, the same Shriram Transport Finance company has come out with its NCD issue or Non-Convertible Debentures issue which is currently open.
Let's start with the basics first.

What is a NCD or Non-Convertible Debentures?
NCD or Non-Convertible Debentures can be termed as a kind of special category of loan, which cannot be converted to a stock (hence the name Non-Convertible). So when you invest into any NCD of any company, you give it a loan. The amount of Coupon rate that you are promised by the company acts as a interest which you expect to recieve for your loan.
NCD's usually offer a higher rate of return as compared to Bank Fixed Deposits as well as FMP or Fixed Maturity Plans (What is a FMP: Explained).
Important thing for investor to note here is that NCD are kind of unsecured bonds, which may not be backed by any collateral. Hence, when you are investing in an NCD, it indicates that you are actually offering a kind of unsecured loan to the NCD company. Since it is unsecured, it offers higher rate of interest (more risk-more return). Also, since it is non-convertible, these NCD's cannot be converted to stocks or equity of the company.

Shriram Transport Finance NCD: Review, Analysis and Calculations

What are the NCD dates for Shriram Transport Finance NCD?
The Shriram Transport Finance NCD is open from July 26, 2012 and closes on August 10, 2012.

What is the issue size of Shriram Transport Finance NCD?
Shriram Transport Finance NCD issue is expecting to raise around 300 Crore Rs. through the Shriram Transport Finance NCD issue. This can extend further in case of an over-subscription to another Rs. 300 Crore.

What is the minimum investment amount required for investing in Shriram Transport Finance NCD?
Each debenture is having a face value of Rs. 1000 and minimum 10 debentures can be applied for. Hence, the minimum application amount comes to Rs. 10,000.

What are the various investment options available in Shriram Transport Finance NCD?
There are 4 options available for investing in Shriram Transport Finance NCD - coming with 4 different maturity periods of 36 months to 60 months.
There are 4 series of bonds:
1) Series I with 3 years tenor and annual coupon frequency
2) Series II with 5 years tenor and annual coupon frequency
3) Series III with 3 years tenor and redeeming at a premium
4) Series IV with 5 years tenor and redeeming at a premium

What is the additional rate of interest for Senior citizens?
No - there is no additional rates offered to Senior citizens

What is the effective interest rates offered by Shriram Transport Finance NCD?
Depending upon the various maturity period listed above, the effective yield on the Shriram Transport Finance NCDs will vary from a low of 10.25% to 10.5% per annum. Please note that these are yields. Coupon rates vary from 11.15% to 11.40%

How will the capital collected through Shriram Transport Finance NCD will be used by the company?
The money or capital collected through the Shriram Transport Finance NCD will be used for further business expansion and enhance lending capacity.

What are the ratings assigned to Shriram Transport Finance NCD?
Ratings are from CRISIL as 'AA/Stable' and 'CARE AA+' by CARE to the Shriram Transport Finance NCD issue.
As claimed on the company website, the ratings indicate stability regarding the financial obligations on part of the company.

Where will the Shriram Transport Finance NCD be listed?
The Shriram Transport Finance NCD will be listed on the BSE as well as NSE.

Will there be any tax benefit available in Shriram Transport Finance NCD?
No. There will be no tax benefit available in Shriram Transport Finance NCD.
Instead, all the income that you will earn as interest from the Shriram Transport Finance NCD will be taxable. Company will NOT deduct any TDS while paying the interest - it will be the responsibility of the investor to declare that income and pay taxes on it.
Hence, the investors should take into account the post tax effective returns calculation before jumping onto investing in these Shriram Transport Finance NCD based upon the high double digit interest it is offering.

ICICI Children Plans: Review, Analysis & Details

Details, Reviews and investment options about the various ICICI Pru Life Child Plans or ICICI Children Plans

Continuing further from our previous article ICICI Child Plans - Savings Based Plans
The next child plan on the list is from ICICI Pru life and is called ICICI Pru Smart Kid - Regular Premium. This is one of the plans for which ad campaigns are being run actively.

One can start investing in this plan with as little as 700 Rs. per month or Rs. 8400 per annum. This offers a mix of insurance as well as returns and claims to provide the following benefits:
- Guaranteed Protection (kind of insurance): Lump sum payment of Sum Assured plus payment of future premiums by the Company in the unfortunate event of death of the parent (Life Assured)
- Development Allowance : Under this benefit, a specified amount is paid to the child every year, in the unfortunate event of death of the parent, if Income Benefit Rider is opted for
- Facility to provide money for key educational expense of the child
- Protection against Accident and Disability : Additional protection against accident and disability is provided with the help of a rider at a marginal extra cost
- Tax Benefits : On premiums paid and benefits received, as per prevailing tax laws
However, please note that all these benefits come at a cost. Say development benefit will be given only if the benefit rider is opted for. Accident Protection can be claimed only if you take a rider which comes at an extra cost. So overall, the more benefits you expect, the more you pay.

Review of ICICI Children Plans

Apart from the insurance part, it claims to offer something called as
Guaranteed educational benefit with two options to choose from.
Option 1 is that you take payouts at regular times - say first payout 15 years of age, second at 17 years, third at 20 years and last at 22 years. The respective amounts will be 20%, 25%, 25% and 30% of the sum assured.
Option 2 is receive 5 payments in last 5 years of the policy with 20% amount of sum assured each year.

The problem is that everything is tied to Sum Assured. So obviously as an investor, you will wish to have higher sum assured amount, but that will mean higher investment amounts.
Even if you are looking at taking other add-ons like the Income benefit rider or the development allowance, then they are also dependent of Sum Assured.
They come at further extra cost. So overall, you end up paying more.

There are some payouts mentioned about Guaranteed Additions and Vested Bonus, but no clear details are available other than Guaranteed Additions (3.5% on Sum
Assured for the first 4 years); & Vested Bonus based on the experience of the Company. Obviously this is at the discretion of the company.
On their website, I was unable to locate the details about where and how this money will be invested by the insurance company under the ICICI Pru Smart Kid - Regular Premium. If readers are aware of that please post it in the comments section and this article will be updated after due verification.

The next similar plan offered by the same ICICI Pru life insurance company is in the name of ICICI Pru SmartKid Premier and this is actually a ULIP i.e. Unit Linked Insurance Plan.
So here, you opt for a tenure of investment 5, 7 or 10 years. The insurance company will invest your money in one of the several funds of ICICI and your returns will actually depend upon how the underlying funds perform.

Since this is a ULIP, there will be charges deducted - allocation charge, policy admin charge and fund management charge, etc. Each fund will have its own charges and since this is a ULIP, there might be other charges as well.
On their website, there is only illustration of how an investment of say Rs. 18,000 will grow at 6% yield or 8% yield. I was unable to find clear details about what all charges will be applicable. True that it will depend upon the funds being selected by the insurance company, but as an investor I would like to know the charges upfront.
So in essence, this being a ULIP, you money will get invested in a variety of funds depending upon your choice of personalized portfolio strategy from as described as :
- Fixed Portfolio Strategy: Option to allocate your savings in the funds of your choice
- LifeCycle based Portfolio Strategy: A personalized portfolio strategy to create an ideal balance between equity and debt, based on your age
- Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in equity markets from any future equity market volatility while maintaining a pre-defined asset allocation.
The usual claims of insurance even after the demise of parents or policy-purchaser, loyalty additions, maturity benefits, etc. etc.

Overall, you give your money to the fund managers, charges will get deducted as per the selected choice of funds and other needs, returns will vary, insurance is assured in terms of payment of premiums, but then the final amount is not assured. It can go either way.

So ideally, if you are looking to buy a policy for certainty for your kids future, you need to take a call about which one to buy.
Are you OK to take a deep dive into the ICICI Pru SmartKid Premier where returns will vary depending upon the fund performance and charge deductions, OR are you fine with ICICI Pru Smart Kid - Regular Premium where everything is dependent on Sum Assured OR does the bank savings based "Child Education Plan" appeal to you more as it is safe?

The problem with all these fancy child plans is that they don't really explain where your money is going. You as an investor need to decide how much do you want. And the higher returns you expect, the higher amount of investment you make. It sounds good to mix insurance with investment, but that is not a good strategy. These policies and plans base everything on Sum Assured, meaning higher investments to be made upfront. With ULIP coming in picture, the charges take away significant portion of profits, with a lot of conditions and lock in periods. You also cannot withdraw your money early, if you need or else pay heavy penalty.

Overall, if you are OK to take risk in shares or equities, then SIP in an index based ETF is considered a safe bet over a long period of 10+ years. If you are not of equities type, then you can look at investing regularly in bonds and fixed deposits offered by numerous banks. Now with online banking, you can get Fixed deposits created in few clicks.

ICICI Child Plans: Review, Analysis & Details

Details, Reviews and investment options about the various ICICI Child Plans or ICICI Children Plans
Now a days, there are repetitive ad campaigns run by ICICI for their Child Plans - the punch line being "Hum to hain hi nahin". Basically, this punch line suggests the anyone (parents, grandparents or others) can purchase ICICI child plans for any kids at home and even in case of demise of the adult who had purchased the plan, the plan will continue as the insurance company will continue to pay the premiums after the demise of the purchaser. So in essence, the message that is being attempted to be conveyed is "Whether you are there or not, your child (and his plan) is covered".
What's the reality of this claim, how realistic is it, what are the practical benefits of such child plans and whether they fulfill the needs as desired, what are the various child plans available from ICICI and what are the differences between them? Let's try to find answers to such questions in this article.

There are several plans available from ICICI under the banner of "Child plans". When I searched on Google with "ICICI Child Plans", I could find three on the official sites (one of ICICI Bank and other two on ICICI Prudential Life site). The ad campaign mentioned above is for the two from ICICI Prudential Life, but since ICICI Bank is also offering one such plan, I'll cover that as well.

The first plan that is listed is from ICICI Bank and is called the "Child Education Plan".
Investors should clearly note that this plan is offered by a BANK and NOT by an Insurance company or Mutual Fund house. Hence, it does NOT offer any kind of insurance to either the child or the parent. It only provides a structured way to invest your money in standard bank accounts (fixed deposits) based upon the tenure of investment you select.
Basically, the structure is into two phases - Investment Phase and Benefit Phase.
In short, during investment phase, you keep making deposits into this plan each month and bank will create Fixed deposits/ Recurring Deposits from these amounts till the end of investment phase.
After that, the benefit phase will start where you will be able to withdraw money either quarterly or annually to meet the expenses for your children education or others.

So, it's a straightforward and simple plan, you keep making regular savings during investment phase and then start withdrawing the money quarterly or annually during benefit phase.
The problem - you cannot make any partial withdrawal mid-way. However, bank is willing to offer loan up to 90% of the principal amount invested till that date during investment phase. During Benefit phase, loan of 75% of remaining amount will be available. But beware - loan is loan and it comes at a cost.
No insurance is available to either the child or parents. No exposure to stocks, simple structured way to save money in the bank.

Review of ICICI Child Plans

What are the other alternatives to this Bank based child plan? ICICI is not known to be the best bank for offering high interest rates on Fixed Deposits. Other banks usually score better, especially for some odd tenures like 1 year 15 days and so on.
A simple alternative is to create these FD's on your own as and when you desire. The only drawback is lack of discipline from investors which defeats the purpose. It is for such cases these bank saving plans help.

The next child plan on the list is from ICICI Pru life and is called ICICI Pru Smart Kid - Regular Premium. This is one of the plans for which ad campaigns are being run actively.

Head on to the next part to see details of this plan ICICI Children Plans: Review, Analysis & Details

ICICI Prudential US Bluechip Equity Fund NFO: Review Analysis & Details

Details about ICICI Prudential US Bluechip Equity Fund: Review, Analysis, Details & Investment Opinion.
A new equity or stock based mutual fund is going to enter the Indian markets. The fund belongs to ICICI Prudential Asset Management mutual fund house and is called the ICICI Prudential US Bluechip Equity Fund. As the name suggests, this fund will collect money from Indian investors and invest it in the US based companies.

In this article, we will analyze how good is this ICICI Prudential US Bluechip Equity Fund NFO, whether this ICICI Prudential US Bluechip Equity Fund offers anything new or unique for the investors and whether the investors should invest in ICICI Prudential US Bluechip Equity Fund.

ICICI Prudential US Bluechip Equity Fund NFO: Review Analysis & Details

Let's begin with some basic details about ICICI Prudential US Bluechip Equity Fund.

What are the NFO dates for ICICI Prudential US Bluechip Equity Fund?
Image sourced as screenshot from official ICICI mutual fund site

The NFO period for ICICI Prudential US Bluechip Equity Fund is from June 18, 2012 to July 2, 2012. After the NFO period, the regular buying, selling and redemption of fund units will start at a date not yet known.

What is so unique about this ICICI Prudential US Bluechip Equity Fund?
The fund offers uniqueness in terms of allowing Indian investors to invest their money in US markets i.e. in stocks of US listed companies, through the mutual fund route. Now there are already a lot of similar funds available in Indian markets which offer investors a choice to invest money in foreign markets, here are a few of them:

- ING Latin America Equity Fund: focussed on Latin America

- HSBC Brazil Fund

and we even have an ETF or Exchange Traded fund
- Motilal Oswal Most Shares NASDAQ-100 Fund

plus there can be many more.
So this ICICI Prudential US Bluechip Equity Fund already has a direct competition from Motilal Oswal Most Shares NASDAQ-100 Fund as both are US specific.

What are the other competitor products available in comparison to ICICI Prudential US Bluechip Equity Fund?
There are many mutual funds available as listed above.

What are the risks of investing and trading ICICI Prudential US Bluechip Equity Fund?
There are always risks involved in any kind of investment.
The ICICI Mutual Fund advertisement leaflet claims that USA is a large economy, high GDP nos, strong fundamentals, and the usual blah, blah, blah which one can find in all mutual fund promotional schemes. However, an investor should also keep the risks in mind.
This fund is going to invest your money in US based listed companies - listed on NYSE and NASDAQ. Foreign Exchange or Forex risk automatically comes in. With the USD-INR forex rate showing high volatility, no one can be certain about how the returns will be after forex consideration. What if you make investment when the dollar is costly against the rupee so you invest more, but at the time of redemption the situation changes and you get less returns even if the US based investments have done well.
Then there are the risks due to global economical factors. Risks of stocks selected by the mutual fund manager not doing that good and so on.
These inherent risks are to be taken by the investor.

Final Thoughts about ICICI Prudential US Bluechip Equity Fund?
In summary - Another mutual fund focussed on US listed companies. Investors can look for this as a diversification tool at the market or country specific level provided they understand the risks listed above, especially the forex risk.

See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in ICICI Prudential US Bluechip Equity Fund.

There will be 2 plans for investors to choose from:

Multiple options available for investments:
Growth Option
Dividend Option - Payout & Reinvestment

ICICI Prudential US Bluechip Equity Fund Entry Load: NIL
But it comes with very high exit load at the initial stage:
ICICI Prudential US Bluechip Equity Fund Exit Load: 3% for exit (repurchase/switch-out) on or before 3 months, 1% for exit from 3 months (+1 day) to 1 year from the date of allotment.
NIL beyond 1 year.

Asset Allocation: Not much info is available except that it will be stocks of US listed companies trading on NASDAQ and NYSE. Investments might also be made in ADR and GDR of Indian and other foreign companies trading on US exchanges.

SIP or systematic investment plan? Available.

The benchmark for ICICI Prudential US Bluechip Equity Fund will be S&P 500 Index

We could not get any info about the fund manager for ICICI Prudential US Bluechip Equity Fund.

Facebook acquiring Opera, Face.com? No, it doesn't make sense

Details, Opinion & Review about Facebook acquiring Opera, Face.com rumors & news
Rumors are floating around about Facebook eyeing Norway based Opera for acquiring the leader in mobile browser. Rumors are also there that the deal could be around 1 billion USD. More rumors are coming up about Facebook attempting to acquire face.com, the Israel based facial-recognition company.
As my honest opinion, none of these acquisitions make sense for facebook.

Already reeling under price pressure - the Facebook stock has tanked to below $29 after the debut. Questions are being raised about the roles of lead managers and advisors about the valuations, especially the last minute hike in the IPO price. Questions are being raised about the 1 billion USD acquisition of instagram.

What is it that facebook is attempting to achieve now with another 2 such big acquisitions?

Facebook Acquition Target: Opera, Face.com? No, it doesn't make sense

Let's look at them one by one:
1) Opera - Norway based browser company, a market leader in mobile browsers.

Why facebook wants it? Why do they really need a browser?
Facebook's platform apparently is not geared up for mobile users, so they look for an existing leader in mobile browser and try to benefit from its lead position.

How will it happen? Nothing is clear. Possibly, facebook will try to customize it or tweak it to have it compatible for facebook access.

Whether it will work? No idea.

What is the competition? It's Everywhere. Right from Google Chrome to other mobile based browsers, there is no guarantee that people will be hooked onto facebook only through this opera browser.

2) Face.com - Israel based face recognition company

Why facebook wants it? Not really sure. Already have instagram on their side for photos. How will face.com help facebook - possibly recognizing the faces? Doesn't make much business sense.
Or are they only after the domain called face.com?

How will the deal benefit facebook - no idea. Don't see any benefit. Possibly, users can search for similar looking human beings? Search for twin siblings if lost? "How much I look like someone else" kind of games?

Instagram deal for facebook was already criticized by many analysts. I agree with them. Now, another of these 2 acquisitions are not going to help - only drain money out as they are at high cost without adding much value.

Let's look at the market sentiment also amid all these rumors and development news
- Facebook Options trading commenced yesterday and the very first day it saw a buildup indicating further fall in the facebook stock price
- The stock has been hammered consistently since its debut, touch intraday lows of below $29
- Questions being raised about the role of investment bankers about the valuations
- Questions being raised about the high cost instagram deal
- Rumors about a third attempt to build facebook smartphone (if true, what all is facebook trying to accomplish?)

It was a good IPO with a momentary good listing, but now Market Mood is low. It doesn't look like this will be a good move by Facebook

Taurus Banking & Financial Services Fund NFO: Review Analysis & Details

Details about Taurus Banking & Financial Services Fund: Review, Analysis, Details & Investment Opinion.
A new equity or stock based mutual fund is going to enter the Indian markets. The fund belongs to Taurus mutual fund house and is called the Taurus Banking & Financial Services Fund. As the name suggests, this fund will keep its focus in the banking space by investing the money collected from investors in the stocks of companies operating in the BFSI sector i.e. Banking & Financial Services. That would means stocks of banks, NBFC, financial services companies will be in the portfolio.

In this article, we will analyze how good is this Taurus Banking & Financial Services Fund NFO, whether this Taurus Banking & Financial Services Fund offers anything new or unique for the investors and whether the investors should invest in Taurus Banking & Financial Services Fund.

Taurus Banking & Financial Services Fund NFO: Review Analysis & Details

Let's begin with some basic details about Taurus Banking & Financial Services Fund.

What are the NFO dates for Taurus Banking & Financial Services Fund?
Image sourced as screenshot from official Taurus mutual fund site

The NFO period for Taurus Banking & Financial Services Fund is from May 2, 2012 to May 16, 2012. After the NFO period, the regular buying, selling and redemption of fund units will start at a date not yet known.

What is so unique about this Taurus Banking & Financial Services Fund?
If this has to be answered in simple terms, this fund does offer something unique in terms of being a mutual fund dedicated to BFSI. A mutual fund which will try to focus on the BFSI sector and invest the money collected from investors in the bank and finance company stocks.
In the past as well, there have been many banking mutual funds :

- Lotus India Banking Fund

- ICICI Prudential Banking & Financial Services Fund

- Sundaram BNP Paribas Financial Services Opportunities Fund

Even few ETF's like:

- Reliance Banking Exchange Traded Fund RBETF

- Bank BeES an Exchange Traded Fund (ETF)

and many more.

So, there is lot in the market in the BFSI sector for investing through the various available Bank focussed mutual funds and ETF's.

What are the other competitor products available in comparison to Taurus Banking & Financial Services Fund?
There are many mutual funds available as listed above. Add it them the list of ETF (Exchange Traded Funds) and Index Funds, the no. will shoot even higher. See List of All Mutual Fund and NFO Articles here
However, there can be more similar products offerings from other fund houses as that list is not complete.

What are the risks of investing and trading Taurus Banking & Financial Services Fund?
There are alwasys risks involved in any kind of investment.
The Taurus Mutual Fund claims that India is going to grow and so will the BFSI sector grow and the story goes on & on. Problems with sector specific funds is that they take the hit when the entire sector goes down.
Another problem with Banking and Fincial services sector is that it is highly sensitive to the interest rate fluctuations as well as global developments. Since the interest rates are directly or indirectly controlled by the government, just a small change leads to big moves in the bank and financial stocks in either direction.
Also, there is a big dependency on global developments. Something happens in a European economy, that has a direct or indirect impact on banks across the globe. So by investing in any such sector specific fund, the investor has to take the sector specific risk.
These inherent risks are to be taken by the investor.

Final Thoughts about Taurus Banking & Financial Services Fund?
In summary - Another mutual fund focussed on Banking & Financial Services sector. Offers nothing different or unique except for focus on BFSI which is already offered by other fund available in the market.
Investors can also look for ETF's like the Bank BeES ETF by Benchmark or the Reliance Banking Exchange Traded Fund RBETF.

See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Taurus Banking & Financial Services Fund.

There will be 2 plans for investors to choose from:

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment, Sweep facilities

Taurus Banking & Financial Services Fund Entry Load: NIL
Taurus Banking & Financial Services Fund Exit Load: 1% for exit (repurchase/switch-out/SWP) on or before 1 year from the date of allotment.
NIL beyond 1 year.

Asse Allocation:
Equities and equity related instruments of Banking & Financial Services sector - 80% to 100%
Debt and Money market instruments - 0% to 20%

SIP or systematic investment plan? Yes Available.
Minimum application amount 1000 Rs. for SIP, SWP, STP

The benchmark for Taurus Banking & Financial Services Fund will be BSE Bankex Index

Mr. Sadanand Shetty will be the fund manager for Taurus Banking & Financial Services Fund.

IDBI India Top 100 Equity Fund NFO: Review Analysis & Details

Details about IDBI India Top 100 Equity Fund: Review, Analysis, Details & Investment Opinion.
A new equity or stock based mutual fund is going to enter the Indian markets. The fund belongs to IDBI mutual fund house and is called the IDBI India Top 100 Equity Fund. As the name suggests, this fund will keep its focus on the top 100 stocks as per the market cap, hence this is primarily a large cap focussed fund.

In this article, we will analyze how good is this IDBI India Top 100 Equity Fund NFO, whether this IDBI India Top 100 Equity Fund offers anything new or unique for the investors and whether the investors should invest in IDBI India Top 100 Equity Fund.

IDBI India Top 100 Equity Fund NFO: Review Analysis & Details

Let's begin with some basic details about IDBI India Top 100 Equity Fund.

What are the NFO dates for IDBI India Top 100 Equity Fund?

Image sourced as screenshot from official idbi mutual fund site
The NFO period for IDBI India Top 100 Equity Fund is from April 25, 2012 to May 09, 2012. After the NFO period, the regular buying, selling and redemption of fund units will start from May 22, 2012.

What is so unique about this IDBI India Top 100 Equity Fund?
If this has to be answered in simple terms, there is nothing unique in this offering. Just another mutual fund which will try to track the performance of the top 100 stocks being traded on NSE. So basically, it is boiling down to being a large cap fund where the fund manager will try to replicate the performance of the "CNX 100 Index" which contains top 100 stocks on NSE. The fund managers will select among those top 100 stocks (but may not be limited to them) and try to generate returns similar to "CNX 100 Index". Obviously the tracking error will come in and after charges the returns will vary for the end investor. So overall, this is another large cap focussed mutual fund by IDBI.
In the past as well, IDBI has come up with many funds as follows:

- IDBI Nifty Index Fund

- IDBI Nifty Junior Index Fund

- IDFC Small Cap Equity Fund

As one can observe, most of the funds from IDFC are market-size specific - either focussing on large caps, mid caps or small cap stock profiles.

What are the other competitor products available in comparison to IDBI India Top 100 Equity Fund?
There are literally hundreds of mutual funds available. Add it them the list of ETF (Exchange Traded Funds) and Index Funds, the no. will shoot even higher. See List of All Mutual Fund and NFO Articles here
However, there can be more similar products offerings from other fund houses as that list is not complete.

What are the risks of investing and trading IDBI India Top 100 Equity Fund?
Basically, any investor who is looking for investing in top 100 market cap stocks of NSE through the mutual fund route can invest in this mutual fund from IDBI. However, the risk is obviously there.
As an investor of thi mutual fund, you will be taking a risk on the performance of this fund which may not necessarily be replicating the top 100 stock index. There is dependency on fund managers stock selection (which is inherent in any mutual fund investment).
Then, the overall stock market risk is always there. What if the stock market collapses during your period of investment in this fund.
These inherent risks are to be taken by the investor.

Final Thoughts about IDBI India Top 100 Equity Fund?
Another large cap focussed fund from IDBI adding to the already available large cap mutual funds.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in IDBI India Top 100 Equity Fund.

There will be 2 plans for investors to choose from:

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

IDBI India Top 100 Equity Fund Entry Load:
IDBI India Top 100 Equity Fund Exit Load: 1% for exit (repurchase/switch-out/SWP) on or before 1 year from the date of allotment.
NIL beyond 1 year.

Asse Allocation:
Equities and equity related instruments of constituents of the CNX 100 Index - 70% to 100%
Debt and Money market instruments - 0% to 30%

SIP or systematic investment plan? Yes Available.
Monthly SIP Option: Rs. 500 and in multiples of Re. 1/- thereafter, per month, for atleast 12 months or Rs. 1000 and in multiples of Re. 1/- thereafter, per month, for a minimum period of six months.

Quarterly SIP Option: Rs. 1500 and in multiples of Re. 1/- thereafter, per quarter, for a minimum period of four quarters.

The benchmark for IDBI India Top 100 Equity Fund will be CNX 100 Index

Mr. V. Balasubramanian will be the fund manager for IDBI India Top 100 Equity Fund.

Motilal Oswal MOSt Shares Gold ETF NFO: Review Analysis & Details

Details about Motilal Oswal MOSt Shares Gold ETF: Review, Analysis, Details & Investment Opinion.
Another mutual fund house is going to make an entry into the Gold based ETF fund offering. This time it is the Indian brokerage and asset management firm called Motilal Oswal India which is going to launch its mutual fund called the Motilal Oswal MOSt Shares Gold ETF.

In this article, we will analyze how good is this Motilal Oswal MOSt Shares Gold ETF NFO, whether this Motilal Oswal MOSt Shares Gold ETF offers anything new or unique for the investors and whether the investors should invest in Motilal Oswal MOSt Shares Gold ETF.

Motilal Oswal MOSt Shares Gold ETF NFO: Review Analysis & Details

Let's begin with some basic details about Motilal Oswal MOSt Shares Gold ETF.

What are the NFO dates for Motilal Oswal MOSt Shares Gold ETF?

The NFO period for Motilal Oswal MOSt Shares Gold ETF is from 2nd March 2012 and will close on 16th March 2012. After the NFO period, the regular buying, selling and redemption of gold ETF fund units will start.

What is so unique about this Motilal Oswal MOSt Shares Gold ETF?
Motilal Oswal hae launched many ETF's in the past and all of them have come with a unique feature. See the following details to know about their individual offerings:
- Motilal Oswal MOSt Shares M50 ETF

- Motilal Oswal Most Shares NASDAQ-100 Fund

- Motilal Oswal MOSt Shares M100 ETF-Fund

So what is unique about this Motilal Oswal MOSt Shares Gold ETF - this is the one and only Gold ETF which allows investors an option to actually take physical delivery of gold at the time of redemption of the Gold ETF units. That means, I as a investor of Motilal Oswal MOSt Shares Gold ETF purchase the gold ETF units. Say I hold it for few months and now I want to redeem my ETF units. I have 2 options:
1) I can simple sell back my Gold ETF units and get money back at the effective price of my units
2) I can actually ask for physical gold (i.e. the gold bar) instead of taking the money

This is the only Gold ETF in India which is offering this kind of physical gold delivery and this is what sets it apart.

What are the other competitor products available in comparison to Motilal Oswal MOSt Shares Gold ETF?
If not hundred, then nothing less than that are available in terms of Gold ETF's and gold saving funds. Check out the complete list

- All Gold ETF's

- All Gold Saving Funds

What are the risks of investing and trading Motilal Oswal MOSt Shares Gold ETF?
Obviously, you are taking a bet on the gold prices. If the gold prices go down after you invest in this Gold ETF, your investment might suffer a loss. It will not matter whether you have the option of physical gold redemption or money redemption. This risk is borne by the investor.

Another thing is that this Motilal Oswal MOSt Shares Gold ETF requries a minimum investment of Rs. 10000, while other Gold funds and gold saving funds are offering investments for much lower amounts.

Final Thoughts about Motilal Oswal MOSt Shares Gold ETF?
Overall, it is another Gold based ETF. Option of physical gold redemption is good but think about it - why would an investor go for physical gold redemption? Only if he needs the physical gold - say for marriage in the family or similar occassion. And what will he do after getting the physical gold which is in minimum 10 gm gold bar units? He will have to anyways approach the jeweller to convert this gold bar into jewellery.
So overall - option of physical redemtion looks good, but investors need to take a call on its usability as per their own needs.
See List of All Mutual Fund and NFO Articles here

RiddiSiddhi Bullions (RSBL) will be providing the Gold bars for physical redemption, but the redemption will actually happen with T+5 days settlement cycle in case of physical gold redemption - i.e. one needs to wait for 5 days to actually receive the gold bars. Also note that physical delivery is limited to only 22 cities in India as of now, so rest city investors need to keep this in mind. They should check how the physical gold will be made available to them if they reside in other cities.

This ETF will be listed both on NSE and BSE.

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 10,000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Motilal Oswal MOSt Shares Gold ETF.

The Motilal Oswal MOSt Shares Gold ETF also claims that it offers discount as compared to gold spot prices. There is no wealth tax for Motilal Oswal MOSt Shares Gold ETF.

MCX IPO Grey Market Premium Price Information & Details

In our earlier post MCX IPO: Review Analysis & Details of Multi Commodity Exchange (MCX) IPO, we had covered the basic details and review analysis of the much awaited MCX IPO - the first such IPO listing in India where a stock exchange is going to list its share for trading in Indian Stock Markets.

In this article, we will cover details of Grey Market Premium for the MCX IPO. Please note that these details are as available from the various news items through print and TV media business news channels and is not a verified or confirmed information. MCX IPO is much awaited IPO by many investors as it is one of the first stock exchanges to list its shares for trading. Usually, exchanges earn their income from the transactional fees, subscription fees, licence fee for index, etc. and considered to be safe. However, no returns are guaranteed - it all depends upon the time and randomness and investors need to keep the risks in mind. Image sourced from official MCX Exchange website
Now, coming back to the Grey Market Premium Prices for the MCX IPO:

Grey Market Premium Prices for MCX IPO

As reported by a leading business news channel, the MCX IPO has once again opened the Grey market Trading in the Indian Stock market business. Although it is not known to be legal, but this business continues. As per the news available, the MCX IPO is currently trading at a premium in the range of Rs. 270 to Rs. 320 per share.
Now this IPO premium is really high as compared to the price band of the MCX Rs. 860 to Rs. 1032. Even at the higher end of the price band of Rs. 1032, the Grey market premium of average Rs. 300 means a 30%.
Market reports say that this grey market premium will increase further as the IPO opens for subscription and listing day approaches.

What does this Grey market price premium for MCX IPO mean?
The grey market involves unofficial buying and selling of shares a few days before the actual listing of the IPO on the stock exchanges. Since this activity starts few days before the actual listing of the shares, the extra premium is considered to be profitable to the traders. However, once the stocks list, the premium gradually or rapidly disappears, as the case may be depending upon the market perception of the stock valuation.

Is the return guaranteed if an upcoming IPO is having a grey market premium like that reported for MCX IPO
NO- nothing is guaranteed. Just because some upcoming IPO is quoted to be trading at a premium in the grey market, it does not mean that it will definitely be profitable to the investors. Remember the fate of Anil Ambani's ADAG group's Reliance Power IPO: What went wrong? - that was also trading at a big premium in grey market, but things went wrong on the listing day itself. Check the above article for more details.

What is the final opinion about investing in MCX IPO?
Irrespective of whatever is going on in the so called grey market, stock exchanges investments in form of buying its listed shares is good in the long run.
As listed in detail in our review of MCX IPO article MCX IPO: Review Analysis & Details of Multi Commodity Exchange (MCX) IPO, this IPO will be a good bet for long term hold. See the above article for more details.

IDBI Dynamic Bond Fund NFO: Review Analysis & Details

Details about IDBI Dynamic Bond Fund
IDBI Mutual Fund house has come out with a Bond Fund and its NFO is currently open. In this article, we will explore this IDBI Dynamic Bond Fund and see whether this Bond fund from IDBI is any useful to investors and which class of investors does this IDBI Dynamic Bond Fund suit.
Let's begin with some basic details of IDBI Dynamic Bond Fund:

What actually is this IDBI Dynamic Bond Fund?
IDBI Dynamic Bond Fund is a fund launched by IDBI mutual fund house and like any other mutual fund this fund will also collect money from investors and invest in certain financial instruments with an aim to generate good returns.
Since this is a Bond fund, the money collected will be invested in Bonds and similar other Debt based and money market instruments. Hence, the returns from this fund will not be that volatile as like those from equity or stock based mutual funds, but this fund claims to be less risky compared to the equity mutual funds.
Traditionally, Indian investors go for stock based mutual fund, but lately debt based mutual funds are also gathering good customer interest hence this fund may find a good interest in the market.
Also, we have observed a good long period of high interest rates where returns from debt instruments have been better than equity markets. So that is what the fund managers of this IDBI Dynamic Bond Fund are trying to capitalize upon.

Being a Bond or Debt fund, are returns guaranteed from this IDBI Dynamic Bond Fund?
No, nothing is guaranteed. No bond fund or debt fund would ever (or can guarantee) any returns or capital protection and same is true for this IDBI Dynamic Bond Fund also.
Investors should not live under the impression that bond funds are risk free or come with any kind of guaranteed returns.

What are the NFO dates for IDBI Dynamic Bond Fund?
The IDBI Dynamic Bond Fund is open from 31 January 2012 to 14 February 2012 for its NFO period

IDBI Dynamic Bond Fund Review Analysis & Details

What will be the benchmark index for tracking returns of IDBI Dynamic Bond Fund?
CRISIL Composite Bond Fund Index will be used for tracking performance of IDBI Dynamic Bond Fund

What are the other investment details of IDBI Dynamic Bond Fund?

Minimum investment in IDBI Dynamic Bond Fund is Rs. 5000 and in multiples of Re. 1 thereafter.

Multiple options available for investments:
Growth Option
Dividend Option - Payout will be quarterly or annual (as per the availability)

Face value will be Rs. 10

Mr. Gautam Kaul will be the fund manager

Systematic Investment Plan (SIP) for IDBI Dynamic Bond Fund?
SIP is available for IDBI Dynamic Bond Fund:
If you go for monthly option for a minimum 12 months, then Rs. 500 minimum per month and multiples of Re. 1 above that.
For 6 months, Rs. 1000 minimum per month and multiples of Re. 1 above that.

For Quarterly Option, Rs 1500 minimum per quarter and multiples of Re. 1 above that, for minimum 4 quarters

What are the entry load and exit load charges for IDBI Dynamic Bond Fund
Entry Load NIL
Exit load NIL

Is there any tax saving or tax benefit available in IDBI Dynamic Bond Fund
No, there will be no tax saving or tax benefit

See List of All Mutual Fund and NFO Articles here

Final Thoughts about IDBI Dynamic Bond Fund
A good option for investors who are willing to look for some exposure to the debt instruments and money market securities. However, please note that the returns are not guaranteed, nor is the capital protected with any guarantee. Bond funds do come with their own set of risks (although they are less volatile compared to equity fund.
IDBI Dynamic Bond Fund

Fidelity Tax Advantage Fund: Save Tax by investing in Fidelity ELSS

This article contains details & information about Fidelity Tax Advantage Fund (Fidelity Tax Advantage Fund ELSS). Also covered is the review, analysis, details and opinion about investing in Fidelity Tax Advantage Fund
Its time the financial year is ending in India and individual tax payers, expecially the salary class, are worried about tax savings. Before the Direct Tax Code or DTC gets implemented about which there are concerns that it might take away the tax savings offered by ELSS, investors might have this last chance for getting tax benefits for investing in an Equity based mutual fund.

What actually is the Fidelity Tax Advantage Fund?
Fidelity Tax Advantage Fund is a mutual fund from the world renowned Fidelity mutual fund house. Like any other mutual fund, this fund too collects money from the common investors and invests it in equity/stocks with an aim to generate returns.
It is categorized as an ELSS or Equity Linked Saving Scheme, which gives investors a tax benefit as well.

Fidelity Tax Advantage Fund Details

What is unique about Fidelity Tax Advantage Fund?
Apart from being a equity based mutual fund, this fund also offers tax savings under the ELSS scheme under section 80(C) of Income tax act i.e. any investments made in this scheme (for the entire cap of 1 Lakh Rs. under section 80(C)) will be exempted from taxes.
See related: Complete List of Qualifying investments under section 80C and Tax Savings details for Section 80C

What are the other details about Fidelity Tax Advantage Fund
The fund has been around since 2006. Since it offers tax savings, it comes with a lock-in period of 3 years i.e. investors investing into this fund for tax saving purpose cannot withdraw their money for 3 years.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Minimum purchase amount:Rs. 500 per application.

Mr. Sandeep Kothari is the fund manager.

What is the benchmark index for Fidelity Tax Advantage Fund
Fidelity Tax Advantage Fund tracks the BSE 200 index and is an actively managed fund

Is the SIP facility available in Fidelity Tax Advantage Fund?
Yes, SIP or Systematic investment Plan is available.
For SIP: Rs. 3,000 (minimum single investment of Rs. 500 and in multiples of Rs. 500 thereafter, minimum 6 instalments).

What are the entry load and exit load charges for Fidelity Tax Advantage Fund
Entry Load NIL
Exit load NIL

What are the other competitor products to Fidelity Tax Advantage Fund
Tax Saving Investment Funds:
Lots and lots are availble, here are a few:

- Principal Personal Tax Saver Fund (ELSS),

- SBI Tax Advantage fund

- Reliance Equity Linked Savings Fund and many more

- SBI Magnum Taxgain

If you are looking for tax saving investments on the debt side, then there are these long term infrastructure bonds plus tax saving bond issues by various other government organizations

- IRFC Tax Free Bonds

- NHAI Tax Free Bonds issue

- HUDCO Tax Free Bonds

Then there are several infrastructure bonds issues currently open which will provide you tax savings like
1) IDFC Infrastructure Bonds for Tax Saving

2) L&T Infra Bonds for Tax Saving

3) SREI Infra Bonds for Tax Saving

Investors looking for tax savings have a lot of choice for investments in various financial instruments. One can take a call about which tax saving investment to choose based upon his own capital availability, tax bracket and risk appetite.

HUDCO Tax Free Bonds: Review, Analysis & Calculation for HUDCO Bonds 2012

The Housing and Urban Development Corporation (HUDCO) is expecting to raise more around 4685 Crore Rs. (including over-subscription option) through tax saving bond issue
Yesterday we covered about a similar issue from Indian Railways Finance Corp Bonds: IRFC Tax Free Bonds, and this tax free bonds issue from HUDCO is exactly similar in nature - offering long term investment with tax benefits.
Let's see some basic details of these HUDCO Tax Saving Bonds first:

Calculations for effective returns from HUDCO Tax Saving Bonds

What is the actual instrument being offered in the name of HUDCO Bonds for Tax Savings (Image courtesy: HUDCO official site)
The issue offered by HUDCO are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

Also see Related NHAI Tax Free Bonds issue and
currently open similar offering from Indian Railways : IRFC Tax Free Bonds

What is the business and function of HUDCO?
HUDCO or Housing and Urban Development Corporation is the finacial arm under Government of India. Its main function is to provide and finance the required capital to development housing projects, financing housing schemes, community facilities and related infrastructure services.

HUDCO Tax Free Bonds 2012

What are the opening and closing dates for HUDCO Bonds for Tax Savings
The HUDCO Tax Saving Bond issue opens on January 27, 2012, and closes on February 6, 2012.

What are the tax benefits avaialble for investors in the HUDCO Bonds for Tax Savings
The income earned as interest from the HUDCO tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of HUDCO Bonds for Tax Savings
The issue constitutes of Rs. 2000 Crores with an option of extending it to another 2,685 Crores taking the total to 4,685 Crores in case of over-subscription.

Are the HUDCO Bonds for Tax Savings available only in demat form?
Both demat and physical paper form applications can be made for HUDCO tax saving bonds - however, trading of these bonds will happen only in demat forms. Hence, physical form will be better for investors who are looking only for long term investment and hold rather than trading.

What are the investment details about HUDCO Bonds for Tax Savings?
Each HUDCO Bond will cost Rs. 1,000 each (face value) and one needs to apply for atleast 10 bonds meaning the minimum application amount comes to Rs. 10,000. Above that, the investors need to apply in multiples of 5 bonds.
The bonds come in two series (I and II) -
Interest rates offered on annual basis are as follows:
- 8.10% for Tranche-I Series 1 Bonds and
- 8.20% for Tranche-I Series 2 Bonds

However, if one applies for amount more than 5 Lakhs, he can earn another extra 0.12% p.a. and 0.15% p.a. on series 1 and series 2 respectively.
The interest rates appear to be better than those offered by similar issue from IRFC (See IRFC Tax Free Bonds)

What are the credit ratings assigned to HUDCO Bonds for Tax Savings
CARE has assigned "CARE AA+" by CARE to tranche 1 bond series and "FITCH AA+ (ind)" by FITCH.
All these indicate good stable outlook.

Where will the HUDCO Bonds for Tax Savings be listed?
The HUDCO bonds will be listed both on BSE and NSE.

What are the effective returns available on HUDCO Bonds for Tax Savings considering the tax free interest?
HUDCO bonds are offering an effective post-tax returns of about 12% - please note that this is for individuals in the highest 30% tax bracket.

What are the other options available for tax savings to investors other than HUDCO Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) SREI Infra Bonds for Tax Saving

How can one apply for HUDCO Tax saving bonds?
Interested investors can apply through the BRLM sites and possibly also through the trading portals.

How will the capital collected by HUDCO Tax saving bonds be used by HUDCO?
As per the prospectus, the capital raised will be used for further business activity expansion and financing requirements.

Final Thoughts about HUDCO Bonds for Tax Savings?
HUDCO is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Investors looking for tax savings options with shorter maturity can apply for these HUDCO bonds.
Enam Securities Private Limited and SBI Capital Markets Ltd are the Book Running Lead Managers. SBICAP Trustee Company is the Trustee

Indian Railway Tax Free Bonds: Review, Analysis & Calculation for IRFC Bonds 2012

The Indian Railways Finance Corporation is expecting to raise more around 6300 Crore Rs. through tax saving bond issue and looks like it is hitting the bulls-eye. The first day of opening the issue of IRFC bonds has given a whooping four times subscription.
High on the heels of other government infrastructure companies issuing Long term infrastructure bonds offering tax benefits to investors, the Indian Railways Finance Corporation (IRFC) has come out with its own issue of Tax Saving Bonds to tap into the benefits of long term capital raising thereby offering investors another option for tax savings.
Let's see some basic details of these IRFC Tax Saving Bonds first:

Calculations for effective returns from IRFC Tax Saving Bonds

What is the actual instrument being offered in the name of IRFC Bonds for Tax Savings
The issue offered by IRFC are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

See Related NHAI Tax Free Bonds issue

What is the business and function of IRFC?
IRFC or Indian Railway Finance Corporation is the finacial arm of Indian Railways under the minitry of Railways, Government of India. Its main function is to provide and finance the require capital to development projects in Railways.

IRFC Tax Free Bonds 2012

What are the opening and closing dates for IRFC Bonds for Tax Savings
The IRFC Tax Saving Bond issue opens on January 27, 2012, and closes on February 10, 2012.

What are the tax benefits avaialble for investors in the IRFC Bonds for Tax Savings
The income earned as interest from the IRFC tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of IRFC Bonds for Tax Savings
The issue constitutes of Rs. 3000 Crores with an option of extending it to another 3,300 Crores taking the total to 6,300 Crores in case of over-subscription.

Are the IRFC Bonds for Tax Savings available only in demat form?
We currently do not have information about the physical form for IRFC bonds, but demat forms are surely available.

What are the credit ratings assigned to IRFC Bonds for Tax Savings
CRISIL has awarded "CRISIL AAA/Stable" ,CARE has assigned "CARE AAA" and "[ICRA] AAA" by ICRA. These are similar to the rating offered to the NHAI Tax Free Bonds issue
All these indicate good stable outlook.

Where will the IRFC Bonds for Tax Savings be listed?
The IRFC bonds will be listed both on BSE and NSE.

What are the effective returns available on IRFC Bonds for Tax Savings considering the tax free interest?
IRFC bonds are offering an effective post-tax returns of about 12% - please note that this is for individuals in the highest 30% tax bracket.

What are the other options available for tax savings to investors other than IRFC Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) SREI Infra Bonds for Tax Saving

What are the investment details about IRFC Bonds for Tax Savings?
Each IRFC Bond will cost Rs. 1,000 each (face value) and one needs to apply for atleast 10 bonds meaning the minimum application amount comes to Rs. 10,000. Above that, the investors need to apply in multiples of 5 bonds.
The bonds come in two series (I and II) -
For sereis I coupon rate of 8.00% p.a for 10 years (Series I) and 8.10% p.a for 15 years (Series II)

However, if one applies for amount more than 5 Lakhs, he can earn another extra 0.15% p.a. and 0.20% p.a. on series 1 and series 2 respectively.

How can one apply for IRFC Tax saving bonds?
Interested investors can apply through the BRLM sites and possibly also through the trading portals.

How will the capital collected by IRFC Tax saving bonds be used by IRFC?
The money collected will be used for taking up more rolling stock and capacity increase funding in Indian Railways

Final Thoughts about IRFC Bonds for Tax Savings?
IRFC is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Investors looking for tax savings options with shorter maturity can apply for these IRFC bonds.
A K Capital Services Ltd, SBI Capital Markets Ltd, and ICICI Securities Ltd are the Book Running Lead Managers. Indian Bank is the Trustee.

Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details

Details about Morgan Stanley Multi Asset Fund: Review, Analysis, Details & Investment Opinion.
Another mutual fund house is going to make an entry into the multi-asset fund offering. This time it is the world renowned Morgan Stanley Mutual Fund India which is going to launch its mutual fund called the Morgan Stanley Multi Asset Fund.

In this article, we will analyze how good is this Morgan Stanley Multi Asset Fund NFO, whether this Morgan Stanley Multi Asset Fund offers anything new or unique for the investors and whether the investors should invest in Morgan Stanley Multi Asset Fund.

Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details

Let's begin with some basic details about Morgan Stanley Multi Asset Fund.

What are the NFO dates for Morgan Stanley Multi Asset Fund?

The NFO period for Morgan Stanley Multi Asset Fund is from 17th January 2012 and will close on 31 January November 2012. After the NFO period, the regular buying and redemption of fund units will start.

What is so unique about this Morgan Stanley Multi Asset Fund?
The unique thing about this mutual fund is that it is offering a mix of 3 different assets for investments - Equity (Stocks), Debt and Gold. So basically, when an investor invests his money in this Morgan Stanley Multi Asset Fund, his invested money will be allocated to 3 different asset classes - Stocks, Debt and Gold - in the proportion as mentioned by the fund managers. Hence, this Morgan Stanley Multi Asset Fund offers a good option for diversified investing. However, investors should note that this kind of product is not the first one to be offered in the Indian markets. There already exists similar triple asset funds - examples are Axis Triple Advantage Fund and Taurus MIP Advantage Fund NFO: Review Analysis & Details, which can also be looked on by the investors. Specially in the way how these existing funds with 3 asset classes have performed in the recent past.

What are the other competitor products available in comparison to Morgan Stanley Multi Asset Fund?
As of now, we are aware of atleast 2 such triple asset funds already available in the market.
1) Axis Triple Advantage Fund and

2) Taurus MIP Advantage Fund NFO: Review Analysis & Details
However, there can be more similar products offerings from other fund houses.

What are the risks of investing and trading Morgan Stanley Multi Asset Fund?
Diversification is good - but it comes at a cost. Investing in more no. of assets will mean more brokerage and transactional costs and fees.
Diversification also leads to limiting the profit, apart from limiting the losses. For e.g., if gold prices shoot up, but returns from stocks is negative, all the profits from increase in gold prices will be nullified by the loss in stocks.
The proportion in which your invested money will be split across the 3 assets will also matter.

Final Thoughts about Morgan Stanley Multi Asset Fund?
Another multi-asset fund offering which may appeal to investors looking for diversification. Although it comes with its own set of risks as mentioned above.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Morgan Stanley Multi Asset Fund.

There will be 2 plans for investors to choose from:

Plan A: Debt and Money market instruments: 80-100%; Equity and Equity Related Instruments: 0-20%.
This plan will NOT have any exposure to Gold.

Plan B: Debt and Money market instruments: 65-100%;[i] Equity and Equity Related Instruments and [ii] Gold Exchange Traded Funds: 0-35% where each of [i] and [ii] will not exceed 20% of net assets.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Morgan Stanley Multi Asset Fund Entry Load:
Morgan Stanley Multi Asset Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? Yes, but only through ECS mode.
The benchmark for Morgan Stanley Multi Asset Fund will be a Composite benchmark depending upon the plan:

Plan A: 80% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty

Plan B: 70% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty + 15% Domestic Price of Gold*

Mr. Jayesh Gandhi and Mr. Ritesh Jain will be the fund manager for Morgan Stanley Multi Asset Fund.

Coal India Wage Hike: Latest News of 25% Pay increase

The management of the largest coal miner of India, Coal india Limited, has finally come to agreement with the workers union about the Wage Hike or Salary Hike for its 3 Lakh Workers (300,000 employeees). The reports say that the wage hike agreement has been for 25% increase in the salary of the non-executive employees of Coal India Limited.

Coal India Employee Salary Hike: Latest News

Although the unions were demanding around 100% wage hike (i.e. double the existing salaries), and the various analysts were of the opinion that hike would be in the range from 15% to 30%, the management is reported to have settled it for 25% increase.
How many employees of Coal India will benefit from this Wage Hike?
It is reported that around 300,000 (3 Lakh) employees of Coal India will benefit from the Pay hike decision

How much will this Wage Hike cost Coal India ?
If 25% wage hike is what is agreed on, then it will cost around Rs. 3,360 crore - which will not impact the company financials much as it is in line (or somewhat lower) with the majority of estimates by the stock analysts.
Overall, The employee cost for coal India in FY'12/13 is expected to remain in-line with the estimates.

Coal India's wage bill is Rs 15,000 Crores per year. With this additional 25% increase, another additional 4000 crore per year will be required for the wage bill.

What is the current basic salary of Coal India Workers?
As of now, the basic salary of a Coal India worker is around Rs 8,320 per month.
Add around 25% hike to it and it will reach around 10,400 or so. However, exact figures will be available later.

Related: Coal India IPO

From which date will the Coal India Wage Hike be effective?
Coal India Wage Hike be effective is reported to be effective from July 2011. That means workers can expect some lumpsum amount payment in form of arrears payment. This new increased wage will be for 5 years.
Coal India Wage Hike

Budget Date 2012 India: 16 March 2012: Railway Budget 14 March 2012

Like last year we had provided the information about the Indian Budget Dates 2011, this year again we provide the information as available at this moment about the Budget Dates.

In this article, we cover details about Indian Budget Date for the year 2012-2013 for the General Annual Union Budget. Also covered are the details for expected dates of Railway Budget for India for the year 2012-2013

General Union Budget 2012 Date India:

The elections are going to be held in 5 states of India spanning the months of February and early period of March. The last day of elections is slated to be 6th March 2012 and hence there will be no possibility of any budget coming out before 6th March because of the code of conduct applicable by the Election Commission of India. Hence, it is certain that the budget will be announce only after 6th of March when the polling ends.
The date of General Union Budget of India for the year 2012-2013 is now finalized as 16 March 2012 and the Date for Railway Budget for the year 2012-2013 is now finalized to be on 14 March 2012 i.e. 2 days before the Union Budget.

Railway Budget 2012 Date India:

Along with the general budget, the Railway budget is also eagerly awaited, especially by the people whose businesses are dependent on Railways for goods transfer. The railway budget is usually announced a bit earlier than the general union budget. Date for Railway Budget for the year 2012-2013 is now finalized to be on 14 March 2012
In terms of the general expectations from the Budget, here is the list:
- Clarity & implementation about Direct Tax Code (DTC)
- Goods and Services Tax (GST)
- Sustainable Growth as the inflation nos are looking smooth
- New banks allowed to get banking licences
- Reforms are high on agenda
- Tax reduction

SREI Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about SREI Infra Bonds for Tax Saving (Long Term Infrastructure Bonds) from Srei Infrastructure Finance Ltd (SIFL). Calculations for Tax saving in SREI Infra Bonds as per the different income tax brackets is also covered..

High on the heels of PFC, IDFC, L&T and IFCI who recently opened the subscription for their respective long term infrastructure bonds, SREI has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

Let's start with some basics first for the SREI Infrastructure bonds issue:
What is the business of SREI which is offering these Tax Saving Infrastructure Bonds?
SREI is a leading company in infrastructure financing in India and has been in operations since last 22 years.

SREI Infra Bonds for Tax Saving

What are the products and services offered by SREI Power Finance Corporation ?
The company offers
- Infrastructure Project Financing
- Advisory and Development
- Infrastructure Equipment Finance
- advisory and other services to power sector
- SREI also claims to be the first Indian infrastructure NBFC to be listed on the London Stock Exchange

How do the SREI Power Finance Corporation Tax Saving Infrastructure Bonds work?
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of SREI Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IFCI, PFC, IDFC or L&T or SREI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the SREI Infra Bonds for Tax savings in more detail:

The issue size for the SREI infra bonds is Rs. 300 Crores, although the company was eligible for 500 crores of fund raising.

The bonds are being offered in 4 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 & 2 - is for 10 year long bonds paying an interest rate of 8.90% per annum - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)

Series 3 & $ - is for 15 year long bonds paying an interest rate of 9.15% per annum - again, - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)
Exit option available after 5 years and 10 years period. Lock in period is 5 years.
The bonds will be listed on BSE or the Bombay Stock Exchange.

Each bond will have a face value of Rs. 1000.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

Each SREI Infra Bond has a face value of 1000 Rs. Upper limit is not there i.e. one can apply for and buy any no. of bonds from SREI.
Allocation is on first come first serve basis.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the SREI Infra Bonds.

How will the funds or capital raised by SREI infra bonds be used by the company?
The capital or funds raised by the company will be used for infrastructure lending.

What differentiates SREI Infra Bonds from the other issues like PFC IFCI, L&T & IDFC Infra Bonds which are currently open?
The main differences between SREI infra bonds and IFCI, IDFC & L&T infra bonds are the credit rating assigned, coupon rate offered and the price per bond. See details below:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) IFCI Infra Bonds for Tax Saving
4) PFC Infra Bonds for Tax Saving

Other then the above, investors can also check the NHAI Bonds for Tax Savings

What is the security rating for the SREI Infra Bonds ?
The issue has 'AA' rating (indicating high degree of safety) from Care Ratings

How much will I effectively save by investing in SREI Infra Bonds ?
The calculations will be similar to what we covered for SREI Infra Bonds. Please see IDFC Infra Bonds for Tax Saving: Calculations, Review and Details
Also note that Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961 and shall not form a part of the total income

What are the investment dates and period for SREI Infra Bonds ?
The SREI Infra Bonds subscription date was opened on December 31, 2011 and will close on January 31, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings.
Srei Capital Markets, Karvy Investor Services, ICICI Securities & RR Investors Capital Services are the BRLM or Book running lead managers to the SREI Long term Infrastructure Bonds issue for tax savings