IIFL Investor - India Infoline Finance Limited

More documents

Recommendations

Info

INVESTOR June 2012 Insurance Recommendations Sampoorn Samridhi (HDFC Life) Choices of Life: Two unique options for getting policy benefits a. Endowment + whole life: Here customers get Sum assured and all bonuses at the end of the term and life cover till 99 years. b. Enhanced cash option: Customer gets additional bonus or Enhanced Terminal Bonus with sum assured and other bonuses. • Inbuilt double sum assured on accidental death. Additional Bonus Benefits: • 4 different types of bonuses: a. Revisionary Bonus b. Terminal Bonus c. Interim Bonus d. Enhanced Terminal Bonus. Ease of Payment: Select term of policy from 5- 40 years as per your financial requirement. Tax benefits: Avail tax benefits on premiums paid and benefits received under the policy, as per the prevailing Income Tax laws. Guaranteed Savings Insurance Plan (ICICI Prudential) Ease of Payment: Limited premium payment term, longer term of life cover. Guaranteed Benefits: • Guaranteed life cover of 10 times of premium • Guaranteed sum assured of 7 times of premium at the maturity • Guaranteed regular additions (RA) is based on the G-sec rates. RA would be 50% of the G-sec rate Additional Benefits: • Maturity addition paid at the end of the term as a loyalty addition • All addition is paid as percentage of sum assured and not premium paid Tax Benefits: Avail tax benefits on premiums paid and benefits received under the policy, as per the prevailing Income Tax laws. FD Recommendations Mahindra Finance Limited - CRISIL AA+/FAAA/STABLE Minimum Amount: `10000 and in multiple of `1000 thereafter (Cumulative). Remarks: 0.25% extra for Sr. Citizen above 60 years/Employee. Renewal only principal amount. Interest Compounded Annually. Interest Rates (%): Highlights: • The Crisil rating FAAA indicates a high level of safety • Cumulative as well as non cumulative options are available Unitech Limited Minimum Amount `25000 & in multiple of `1000 thereafter. Remarks: In Cumulative option, interest compounded monthly on deposits of one year or more and payable on maturity. Highlights: • Fastest Growing in its segment with over 100,000 investors • Current Mobilization of approx. `600 Cr • Tie-up with most Credible National Distributors' - PAN India DHFL - Ashray Deposit (400 Days) - CARE (AA+) & BWR (FAAA) Minimum Amount `10000 & in multiple of `1000 thereafter. Remarks: 0.50% extra for Privilege Depositors (Sr. Citizens above 60 yrs, DHFL Shareholders, DHFL H.L Customers, Armed forces Personnel & Widows), 0.25% extra on single application deposit 25 Lacs and above. Interest Compounded Half Yearly. Highlights: • Safe, Secure Earnings for Short term investment • Liquid investment • Prompt / Timely ECS payment facility for Interest payments Interest Rates (%) 6 M 1 YR 2YR 3 YR 4 YR 5YR Mahindra Finance Ltd. 10.00 9.5 10.25 10.5 10 10 Unitech Limited 11.5 11.5 12 12.5 - - Ashray Deposit (400 Days) 400 Days Cumulative 10.75 Have you started investing? The Importance of starting Early If you start investing early in life, you are bound to reap rich rewards in the long run. Take the case of two youngsters who start working at the age of 20. Case 1 (Vijay) Vijay understands the importance of investing early. He spends less money on entertainment and makes sure that he is investing `50,000 every year. Assume that Vijay gets 10% return on his investment every year. At the end of 10 years, he gets `7.96 lakh. However, due to some financial responsibilities in his family, Vijay is unable to save money now and whatever he earns is used for household expenses. But, he keeps his accumulated of `7.96 lakh as a fixed deposit in a bank at 10% interest rate till he is 65 years old. Vijay does not make any fresh investment. But interest keeps on accumulating on `7.96 Start investing Now! Just give us a missed call on 080 300 88 550 lakh till 35 years. Thus, when he is 65, he gets `2.23 crore. Case 2 (Ajay) Ajay spends a lot of money and doesn't believe in investing early. He starts investing after 15 years when he is 35 years old and invests for next 30 years. He regularly invests `50,000 each year till he is 65. Assume that Ajay also gets a return of 10% per year. So at the age of 65, he gets a maturity amount of `82.24 lakh. Vijay makes regular investment for only 10 years but Ajay invests regularly for 30 years—20 years more than Vijay. But, Ajay gets `1.41 crore less than Vijay. This is almost 63% less. Thus, one needs to start investing as soon as he/she starts earning. The power of c o m p o u n d i n g i n c reases returns exponentially as time passes. What most people argue is that, they will earn lots of money later on in their lives but this is not true. The truth is that, even if you invest very small amount of money early in your life in an asset which gives you returns higher than the inflation, than over the time your this small amount will multiply into a big number. IIFL Investor - Page 2
INVESTOR June 2012 Mutual Funds Top Five Recommendations Understanding the importance of early investing Franklin India Bluechip (NAV 196.91) The fund has consistently outperformed its benchmark (BSE Sensex) and the peer group average in the last 5 years. It has more than 85% of its holding in large caps and has one of the lowest expense ratios (1.81) in its category. This fund is particularly suitable to investors who wish to take limited risk and generate modest returns. ICICI Pru Dynamic (NAV 99.97) This fund aims at providing capital appreciation through investment in equity and related instruments and for defensive consideration in debt/money market instruments and derivatives. It has consistently outperformed its benchmark (S&P CNX Nifty) and its peer group average since inception. The fund has given the highest returns of ~27% CAGR in its category since inception. UTI Opportunities (NAV 26.76) In the last 3 years, this fund has emerged as one of the top 5 funds in its category. About 96.23% of its investments are in large caps making it one of the safer bets. Besides, the fund has consistently outperformed its benchmark and peer group average since inception. In the last three years, it has given annualized returns of 13.7% as compared to its category returns of 8% for the same time period. HDFC Mid-cap Opportunities (NAV 15.48) The scheme has been ranked 1 in the Small & Mid-cap category by CRISIL. With CNX Midcap as its benchmark, the fund has been an outperformer since inception. For the last 3 years, it has given annualised returns of ~22% vs. its category returns of ~13% for the same time period. IDFC Premier Equity (NAV 32.19) With one of the highest fund sizes of Rs.2560 crores (as on March'12) in its category; the fund has given its investors annualized returns of ~20% since its launch in 2005. Even in the 3 year time frame, the fund has significantly outperformed its benchmark with returns of ~20% CAGR as compared to its category returns of ~13% CAGR over the same time period. Source: ACE MF NAVs & Returns are as on May 27, 2012 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Mutual Fund Fundas A Starter’s Guide A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. Returns from a Mutual Fund encompass the following: • Dividend/ Interest income: The fund may choose to distribute its surplus income in the form of dividend (for Equity funds) or interest (for debt funds) • Capital Gain: If the value of the Mutual Fund units increase, the investor witnesses an increase in his capital invested which is termed as “capital gain” Mutual Fund Terminologies • NFO (New Fund Offer) - Mutual Fund companies launch new funds in the market for the first time and offer the general public to subscribe to the same • NAV (Net Asset Value) - This denotes the fund's price per share value and is calculated by dividing the total value of all assets in the portfolio less liabilities, by the number of units (fund shares) outstanding • Exit Load - This is the charge levied by the Mutual Fund if the investor chooses to exit the scheme before a stipulated time period, Investor Calendar in most cases 6 months to 1 year. The exit load is mostly around 1% of the NAV • Expense Ratio - The ongoing expenses of a fund are represented by the expense ratio. It is the fee that Mutual Fund companies subtract from your investments each year for their service. The higher the expense ratio, higher the impact on your returns from investment Did you Know? The mutual fund industry in India started in 1963 with the formation of Unit Trust of India (UTI) and Reserve Bank of India (RBI). In 1978, UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. To invest in Mutual Funds Just give us a missed call on 080 300 88 550 Scheme Name Category Type Open Close Canara Robeco Gold Savings Gold: Funds Open-end 04-Jun 18-Jun IIFL Dividend Opportunities Index Fund Equity Fund Open-end 06-Jun 19-Jun DWS Hybrid FTF Series 7 Hybrid: Debt-oriented Conservative Closed-end 13-Jun 27-Jun Union KBC Asset Allocation Moderate Hybrid: Others Open-end 04-Jun 18-Jun IDFC FMP 366 Days Series 80 Debt Closed-end 08-Jun 11-Jun IDFC FMP 90 Days Series 78 Debt Closed-end 08-Jun 12-Jun IDFC FMP 90 Days Series 79 Debt Closed-end 19-Jun 21-Jun HDFC FMP 90D June 2012 (2) Debt Closed-end 08-Jun 13-Jun HDFC FMP 372D June 2012 (3) Debt Closed-end 13-Jun 18-Jun HDFC FMP 92D June 2012 (1) Debt Closed-end 15-Jun 20-Jun Start investing now and secure a bright future for your family. Choose IIFL as your partner for investing in Mutual Funds, Fixed Deposits and Life Insurance Just give us a missed call on 080 300 88 550 IIFL Investor - Page 3
Page 1: INVESTOR Volume 1, Issue 1, Mumbai,

IIFL Investor - India Infoline Finance Limited

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?