Vasai Money

selected NIFTY and SENSEX scrips will be available for order placement in pre-open session

2010-10-16T02:21:00.001-07:00

Starting from October 18, 2010, the exchanges shall accept orders in equity cash segment for selected scrips before markets open. This mechanism, known as Call Auction is introduced to smoothen the volatility in the stock prices due to overnight developments, if any. This will also help investors in the process of better price discovery.

The SEBI circular comes into effect from Monday, October 18, 2010, wherein selected NIFTY and SENSEX scrips will be available for order placement in pre-open session which will last for 15 minutes from 9.00 a.m. to 9.15 a.m. The orders you place would be accumulated for first 8 minutes of this session. Based on the maximum executable quantity the exchanges will determine the discovery price. Opening price determination, order matching and trade confirmation will happen in the next 4 minutes. The last 3 minutes would be for transition from pre-open to normal trading session

Please click here to view the list of BSE and NSE scrips

what it means? P.E Ratio.

2010-10-14T22:18:00.001-07:00

f there is one number that people look at than more any other number, it is the “Price to Earning Ratio (P/E)”. The P/E is a ratio that investors throw around with confidence as if it told the complete story. Of course, it doesn’t tell the whole story (if it did, we wouldn’t need all the other numbers.)
The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular stock analysis ratio, although it is not the only one you should consider.
You calculate the P/E by taking the share price and dividing it by the company’s EPS (Earnings Per Share that we saw above)
P/E = Stock Price / EPS
For example: A company with a share price of Rs.40 and an EPS of 8 would have a P/E of: (40 / 8) = 5

What does P/E tell you?

Some investors read a high P/E as an “overpriced stock”.
However, it can also indicate the market has high hopes for this stock’s future and has bid up the price.
Conversely, a low P/E may indicate a “vote of no confidence” by the market or it could mean that the market has just overlooked the stock. Many investors made their fortunes spotting these overlooked but fundamentally strong stocks before the rest of the market discovered their true worth.
In conclusion, the P/E tells you what the market thinks of a stock. It tells you whether the market likes or dislikes the stock. If things are vague and unclear to you, do not worry. The next ratio will make everything you read till now make sense..

Cheques with alteration/corrections will not be honoured from 1st July 2010

2010-06-30T10:24:00.001-07:00

Govt may introduce Direct Tax Code Bill in Monsoon Session - Economic Times

2010-02-27T13:08:00.001-08:00

Govt may introduce Direct Tax Code Bill in Monsoon Session
Economic Times
NEW DELHI: Finance minister Pranab Mukherjee on Saturday also indicated that the government could introduce the Direct Taxes Code Bill in the monsoon session of the Parliament as 'the legislation will take some time”. He also promised that the ...
DTC Bill likely in next sessionFinancial Express
Pranab favours more debate on Direct Tax CodeBusiness Standard
Good, not great, budget for investorsMoneycontrol.com
Times of India -Financial Express -Business Standard

BUFGET 2010:Consumers will have to pay more for petrol, diesel, cars, TVs, cigarettes, tobacco, air-conditioner, gold and silver

2010-02-26T00:45:00.001-08:00

Tax slabs revised
Giving a relief to the middle class Finance Minister Pranab Mukherjee on Feb 26 revised the tax slabs for the next financial year.

The finance minister proposed the following slabs for individual tax payers:
There will be no tax for income upto Rs 1.6 lakh. This was the same earlier.
For income between 1.6 lakh - 5 lakh, the tax liability will be 10%. The older slab was 1.6 - 3 lakh.
For income between 5 lakh - 8 lakh, the tax liability will be 20%. Earlier 20% tax was deducted on Rs 3-5 lakh income.
Individuals with income of above Rs 8 lakh will have tax liability of 30%. Earlier 30% was deducted on income of Rs 5 lakh and above.
The government would allow a deduction of up to Rs 20,000 for investments in long-term infrastructure bonds. The deduction would be in addition to Rs 100,000 allowed under Section 80C of India's Income Tax Act.

The proposal to reduce the tax slab will benefit 60 percent of all tax payers," he said and added that he wished to hike the minimum alternate tax (MAT) to 18 percent of book profits from the present 15 percent.

Custom duties & cess
Service tax retained at 15 per cent. Customs duty on gold to go down. Customs duty on silver at Rs 1500/kg. Rationalisation of customs on gaming software. Uniform concessional duty of 5 per cent on all medical appliances. Excise revenues to grow Rs 43,500 cr. More services to be taxed. 5 per cent customs duty on crude petroleum product. Peak customs duty remains at 10 per cent. Excise duty on CFL goes down to 4 per cent. Cess of Rs 50/ton on Indian coal.
Consumers will have to pay more for petrol, diesel, cars, TVs, cigarettes, tobacco, air-conditioner, gold and silver as the government on Friday announced hike in excise duty as part of a partial roll back of stimulus measures announced for reviving the economy.
On the other hand, mobile accessories, medical equipment energy efficient CFL lamps, set top boxes, compact disc, toys and books will be cheaper on account of some tax concessions offered on these items by Finance Minister Pranab Mukherjee in the Union Budget for 2010-11.

"Symptoms of economic recovery are widespread and more clear now," he said.

Before announcing the tax measures, Mukherjee substantially cut income tax rates along with other direct tax concessions that would result in a net loss of Rs 26,000 crore to the exchequer.

New premium income during April-December

2010-01-26T09:04:00.001-08:00

According to the data by the Insurance Regulatory and development Authority (Irda), new policy sales rose 10 per cent to around 33 million in April-December 2009 from 30 million in the first nine months of 2009-10.

DOMAIN FOR SALE

2010-01-17T12:07:00.001-08:00

WWW.WIZARAT.INFO

WWW.ANJUMANEIMAMIA.INFO

WWW.ISLTODAY.INFO

Cont: smma59@gmail.com

How to avoid loss while Buying stocks

2010-01-15T03:36:00.001-08:00

(a) Avoid buying stocks which are trading above 30% of their 20 DMA (day moving average)
(b) If the trend is up and a good stock has been spotted, than the best time is to buy the stock when the same is trading around 30% off its peak.
(c) If trend is confirmed and it is an uptrend than buy a stock when it starts trading 10% above the DMA.
(d) Do fix a stop loss for any trading strategy.

In the bear market: Accumulate more on every fall and invest for long term to reap full benefits. Even good stocks will be available at cheap prices in bear market due to bad sentiment.

Intra Day trading Rule:

Have confidence in yourself and abilities and reaffirm yourself in front of mirror or any where that you are a successful day trader and you are the best and market will also automatically start respecting the individual thinking with positive frame as one start taking judicious decisions.

Think big, think fast, think ahead. Ideas are no one’s monopoly”Dhirubhai Ambani

Richest Indians 2009

2009-11-20T22:42:00.000-08:00

Mukesh Ambani tops Forbes India rich list with	$32 billion
Second is Lakshmi Mittal	$30 billion
Third is Anil Ambani	$17 billion
Azim Premji is the fourth with worth	$14.9 billion
Savitri Jindal is seventh in the list but Top among richest women	$12 billion

Read Complete List

Diwali Muhurat Trading on 17/oct/2009

2009-10-16T11:10:00.001-07:00

We wish a very Happy Diwali and Prosperous New Year to you and your family.

NSE and BSE will have special trading sessions for Diwali Muhurat Trading on Saturday, October 17, 2009.

The Diwali special trading sessions will be held from 6:15 PM to 7:15 PM on Diwali Laxmi Puja day.

Click here to get the complete list of 2009 stock market holidays

Switching Cos for Agents is tough now.

2009-10-11T10:05:00.001-07:00

The Insurance Regulatory and Development Authority (IRDA) has asked insurance companies to take steps to protect the interest of their policy holders before they issue No Objection Certificates (NOCs) to the agents leaving them.

The new guidelines ensure that all agents - individuals, corporate as well as banks - continue to sell policies of the same insurance company for at least three years.

In the life insurance industry, those policies where the insurance agent has quit the organization are termed as 'orphan' policies, as there is no intermediary to service them.

IRDA has asked all the agents to submit details of all his policyholders including their contact details before leaving the company. The insurance company, in turn, has to ensure an alternative service arrangement for all those policyholders before giving NOC to the Insurance Agents.

What is The Insurance Regulatory and Development Authority (IRDA)

2009-10-11T09:43:00.001-07:00

The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad to regulate and control the insurance industry. It was formed by an act of Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some budding requirements.

As stated in the act mission of IRDA is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."

When a policyholder has a complaint to make, he or she must first approach the Grievance or Consumer Complaints cell of the insurer. In the event of there being no response or no satisfactory response, the policyholder may write to the Grievance Redressal Cell of the IRDA which will then take up the matter with the concerned company for examination/re-examination.

IRDA has two websites.In case you are looking for information like regulations, authority and other regulatory information, please visit www.irdaindia.org

Always purchase any Insurance Policy by IRDA approved financial Consultants.

Think before using other banks ATM now.

2009-08-29T12:21:00.000-07:00

Before April 1, 2009, if you had to use the ATM of any bank with whom you don't have any banking relationship, you ended up paying fees. It meant you had to find the closest ATM belonging to your bank to withdraw cash and make balance inquiries. So RBI introduced a directive to the banks to allow free use of ATM machines irrespective of which bank a customer had accounts with.

This meant that irrespective of which bank you bank with, you could use any other bank's ATM free of cost.

However, now The Reserve Bank of India has decided to put a cap of Rs 10,000 per withdrawal in such (third party) transactions. Also, the number of such transactions will be limited to five times a month from 1st october 2009.

The Indian Banks Association (IBA), proposes to levy a transaction fee of Rs.20 per transaction for using another bank's ATM, Beyond five transactions.

Technorati Tags: ATM,Bank,finance

whether life insurance products are good investments.?

2009-08-15T09:37:00.000-07:00

whether life insurance products are good investments.?

Life insurance is a necessity and not an investment. There is no substitute for life cover, none whatsoever. It is the only means of providing security to your near and dear ones against your untimely death or to yourself against your old age Read More

For Mumbai to Virar call: 9823403494

The errors that investors are prone to make.

2009-08-08T09:00:00.000-07:00

The errors that investors are prone to make.

Having no measurable goals: Investors must know what they want and set realistic and quantifiable financial objectives before the adviser.

Confusing financial planning with tax planning: There's more to your portfolio than just tax-saving. A good planner will help you meet your life's goals without compromising on your lifestyle.

Expecting unrealistic returns: A financial planner is not a magician and can't guarantee high returns. If a planner promises sky-high returns, tread cautiously.

Investing, not planning: People confuse financial planning with investing. Remember, investment is only one of the components of a good financial plan.

Believing that financial plans are for the wealthy: Anyone with long-term financial goals should ideally use the help a financial planner.

Using a one-time financial plan: You have to keep an eye on your plan and ensure that your planner updates it and reviews it periodically.

A very informative article published in sify “How to choose the right adviser “ Read complete article.

Your savings bank account can earn you more interest now

2009-08-07T11:50:00.000-07:00

Your savings bank account can earn you more interest now.

At present, the interest (3.5 per cent per annum) is calculated on the minimum balance held in the account from the 10th of each month to the last day of that month. So, if a bank customer has Rs 5000 /-in his savings account one day and then Rs. 50/- another day, the minimum balance taken for calculation of interest in the period would be Rs 50.

From April 1, 2010, the interest paid on the savings account will be on the daily minimum balance. In other words, even the Rs 5000/-balance in the savings account will earn the customer interest, even if it is withdrawn later.

As per the new directive issued by RBI, only commercial banks will need to follow this new method of interest payment on savings accounts. Commercial banks include all banks other than co-operative ones.

Work with reputed Institution as a free lancer

2009-08-05T10:49:00.000-07:00

Working as a financial consultant is a good opportunity for college students, housewives, Retired or for those who want to work and earn as a free lancer.

Now a days Insurance companies pay very high commission and you can earn more than 25000/- per month just by working 5 hours in a week.

A person who is interested in becoming a financial consultant can get started by working for a Insurance companies without any investment.There is no start-up capital. Be your own boss; with a flexible working environment, unlimited earning potential and the opportunity to be part of a world class team. The advantage is all yours!

Qualification Required :

Minimum qualification of a pass in 12th standard or equivalent examination conducted by any recognized Board/Institution.
Housewives, Retired people can also do this job.
It is compulsory to Qualify Insurance Regulatory & Development Authority’s Exam for working as a Finance consultant.

Insurance companies provide you with unmatched training on Their products to hone your selling skills along with periodic advanced programs for continuous up gradation of your knowledge & sales capabilities.

If you are interested, then please send your updated CV to smma59@gmail.com or call 9823403494.

Investment in Volatile market

2009-08-04T23:56:00.000-07:00

In a volatile stock market, where prices change rapidly Invest in market through.

Systematic Investment Plan (SIP) is the most powerful way to benefit from the market volatility.

Balanced funds are also great for dealing with the market volatility as they give the investors exposure to both equities 65%and debt 35% .

Invest in ULIP when market go down because Ulips provide life insurance by investing a part of the premium paid by buyers in stocks, with the policy value depending on the value of their underlying assets. Prefer capital guarantee product.

by Evasai professional. Cont: 9823403494 for Investments and wealth management.

Now no entry load for all mutual fund schemes.

2009-07-31T03:45:00.000-07:00

Securities Exchange Board of India (SEBI), has instituted a new regulation which will take effect from August 1, 2009, which has an immediate impact on what you pay whenever you buy a mutual fund scheme.

At present we pay 2.25% of the total amount taken from the amount you invested in most Equity based mutual fund schemes.

Relevant extract of the SEBI circular released on June 30, 2009 (SEBI/IMD/CIR No.
4/168230/09) is as follows:

'In order to empower the investors in deciding the commission paid to distributors in accordance with the level of service received, to bring about more transparency in payment of commissions and to incentivize long term investment, it has been decided that:

There shall be no entry load for all mutual fund schemes
The scheme application forms shall carry a suitable disclosure to the effect that the upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor
Of the exit load or CDSC charged to the investor, a maximum of 1% of the redemption proceeds shall be maintained in a separate account which can be used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Any balance shall be credited to the scheme immediately
The distributors should disclose all the commissions (in the form of trail commission or any other mode) payable to them for the different competing schemes of various mutual funds from amongst which the scheme is being recommended to the investor

This circular shall be applicable for :

Investments in mutual fund schemes (including additional purchases and switch-in to a scheme from other schemes) with effect from August 1, 2009
Redemptions from mutual fund schemes (including switch-out from other schemes) with effect from August 1, 2009.
New mutual fund schemes launched on and after August 1, 2009; and Systematic Investment Plans (SIPs) registered on or after August 1, 2009'

Credit card PIN a must for Online shopping

2009-07-31T01:28:00.000-07:00

A Reserve Bank of India directive has made it mandatory to have an authentication passcode Verified By Visa or Mastercard Secure Code (VBV/MSC) to make all online transactions safer.

Now it will be compulsory to have a personal identification number (PIN)/password for all online credit and debit card transactions in the country.

ULIP products turns attractive

2009-07-27T06:37:00.000-07:00

Insurance Regulatory and Development Authority (IRDA), imposing a cap on the charges that insurers levy on customers.ULIP and Mutual fund products have similar investment strategy but charges in ULIP are higher in compare to Mutual fund.
ULIPs are now likely to become more competitive than mutual fund products.

Currently, mutual funds are allowed to charge up to 2.5 per cent of assets under management under various heads as fees. With the cap on ULIP charges, insurers will soon offer products with a built-in mortality at just about 2.25 per cent, since most insurance products are long-term contracts.
According to the new regulation, the charges on yield will be capped at 300 basis points for a product with tenor of less than or 10 years duration, of which fund management charges shall not exceed 150 basis points. For other contracts that are above 10 years, the difference between gross and net yields shall not exceed 225 basis points, of which the fund management charges shall not exceed 125 points.

The new regulation will be effected from October 1, for all products approved by the regulator after this date and all the existing products that do not meet the requirements should be withdrawn or modified by December 31.

Misconception in Filing tax returns

2009-07-26T01:00:00.000-07:00

This is true that having a PAN is a must for filing tax returns. Without PAN, the tax department will not accept your returns.

Many taxpayers seem to be under the impression that having a PAN makes it mandatory for them to file the tax return. This is not true.

Filing a tax return is obligatory, if and only if one earns an income above the basic exemption limits. For FY 08-09, these are Rs 1.50 lakh, Rs 1.85 lakh and Rs 2.25 lakh for non-senior men, non-senior ladies and senior citizens respectively. So, if your income is under the tax threshold applicable to you, irrespective of whether you have been allotted a PAN or not, you need not file a tax return.

Note that the term 'income' in the above paragraph refers to gross income i.e. your income before reducing any tax deductions. This was a change that was carried out by FA05. Earlier, if your income after considering deductions such as PPF, NSC, Mediclaim, etc. was above the basic exemption, then filing tax return was mandatory. Now, income before considering the deductions under Chapter VI-A, Sec. 10A, Sec. 10B and Sec. 10BA will have to be considered.

Let's take the case of Mr Pathak, a senior citizen. His income statement is as under:

ParticularsRs
Income from bank interest, pension etc 3,40,000
Less : PPF, NSC & Mediclaim 1,20,000
Net income after deductions 2,20,000

Earlier, Pathak would not have been liable to file his tax return as his net income did not exceed the basic exemption limit of Rs 2,25,000.

However, now, income before deduction is to be considered and that is Rs 3,40,000 in his case. This amount being more than Rs 2,25,000, Pathak will compulsorily need to file the tax return.

Note that in both the cases, the tax payable by Pathak remains nil. Putting it differently, though he is not liable to pay any tax to the government, Pathak will need to file a nil tax return. Read full article from Source

Budget 2009 - 2010 Analysis By evasai Professionals

2009-07-09T11:23:00.000-07:00

Budget 2009 - 2010 Analysis By evasai Professionals.

Sector	Effect	Remarks
Corporate Tax	Neutral	No Change
Income tax Individual	Positive	Limit Increased
TAX - OTHERS	Positive	CTT to be abolished,FBT withdrawn,CENVAT reduced
AGRICULTURE	Positive
EDUCATION	Positive
Automobile and Ancillaries	Positive
Banking Financial Companies	Negative
Consumer Durable	Positive
Fertilizer	Positive
FMCG	Negative	Concessional customs duty of 5% on specified machinery for tea, plantations to be reintroduced for one year, up-to 06.07.2010
Gems & Jewellery	Neutral
Healthcare	Positive
Infrastructure & Engineering	Positive
IT/ITES	Positive	Custom Duty on LCD panels cut from 10% to 5%,FBT abolished,
Media & Entertainment	Negative	Customs duty of 5% to be imposed on Set Top Box for television broadcasting
Oil & Gas	Positive
Power	Positive
Public Sector Undertakings	Neutral
Real Estate	Negative
Telecommunication	Neutral
Textile	Positive

Some of the Positives from the budget are:

GST will be implemented from April 1, 2010

FBT abolished

CTT removed

Disappointments are:

Divestment in Insurance and Banks

Fuel policy

FDI in Infrastructure

Contact:9823403494

Investment guide on different stages of life

2009-07-07T12:07:00.000-07:00

Financial Planning means: Reviews your current financial position,Sets goals for the future and,Creates a plan to achieve those goals.

It is also very important to review your investment plans as Your circumstances change ,because of marriage, new dependants,taxation,market boom and busts etc

When you are a single:(one lac)

Investment (Sec 80C)	Amount to be invested
ELSS (Equity Linked Saving Scheme)	75000
ULPP (Unit Linked Pension Plans)	15000
PPF (Public Provident Fund)	10000
Total	100000
Health Insurance (Section 80D)	15000

When You are Married

Investment (Sec 80C)	Amount to be invested
ELSS (Equity Linked Saving Scheme)	40000
ULPP (Unit Linked Pension Plans)	25000
ULIP (Unit Linked Insurance Plans)	20000
PPF (Public Provident Fund)	5000
Bank FD (Fixed Deposits)	10000
Total	100000
Health Insurance	15000

Pre-Retirement

Investment (Sec 80C)	Amount to be invested
ELSS (Equity Linked Saving Scheme)	25000
PPF (Public Provident Fund)	25000
ULPP (Unit Linked Pension Plans)	40000
Bank FD (Fixed Deposits)	10000
Total	100000
Health Insurance	15000

Post Retirement

Investment (Sec 80C)	Amount to be invested
ELSS (Equity Linked Saving Scheme)	20000
PPF (Public Provident Fund)	40000
Bank FD (Fixed Deposits)	40000
Total	100000
Health Insurance	15000

A premium of Rs. 15,000 is fully deductible under Section 80D of the Income Tax Act. You would save Rs. 5099 on your tax payable.

For any help with your investments plz take appointment on sundays.(9823403494) or write to smma59@gmail.com

Margin Tax Benefit in budget 2009-2010

2009-07-06T05:55:00.000-07:00

In budget 2009-2010 they increased the basic exemption limit for male taxpayers and female taxpayers by Rs 10,000 and that of senior citizens by Rs 15,000. Further, he abolished the surcharge of 10% on income over Rs 10 lakh.

The current income tax exemption limit is Rs 1.5 lakh (Rs 150,000) for men, Rs 1.8 lakh (Rs 180,000) for women and Rs 2.25 lakh (Rs 225,000) for senior citizens.

Removed the surcharge on income above Rs 10 lakh (Rs 1 million) for personal income tax payers. The surcharge was levied at the rate of 10 per cent on income above Rs 10 lakh.
The finance minister raised the deduction for maintenance of medical treatment of dependence from Rs 75,000 to Rs 1 lakh
The finance minister also proposed to introduce Saral-II form to enable the taxpayers to file their returns without difficulty.

The new tax slabs now stand as follows:

For Male taxpayers

0 to 160000	0
160001 to 300000	10%
300001 to 500000	20%
Above 500000	30%

For Female taxpayers

0 to 190000	0
190001 to 300000	10%
300001 to 500000	20%
Above 500000	30%

For Senior citizens

0 to 240000	0
240001 to 300000	10%
300001 to 500000	20%
Above 500000	30%

In addition to this, an education cess of 3% on the tax amount continues while a 10% surcharge on income over Rs 10 lakh has been abolished.

Example:

Taxable income (Rs)

Tax before budget

Tax after budget

Difference

	Male	Female	Male	Female	Male	Female
200000	5150	2060	4120	1029	1030	1031
500000	56650	53560	55620	52529	1030	1031
1000000	211150	208060	210120	207029	1030	1031
1200000	300245	398815	364619	516029	53046	52736
1500000	402215	568765	519119	670529	68496	68186

Invest at Right Place to rule the world

2009-07-04T06:27:00.000-07:00

Those invest at right Place rule the World.

(Free service by evasai finance & Banking professionals)

Contact: 9823403494

Write: smma59@gmail.com

You need to make the right kind of investment today.

2009-06-05T06:32:00.000-07:00

You need to make the right kind of investment today.

H DFC Life launched new `Wealth Multiplier (Savings and Investment ) Plan

Highlights:

This plan has limited premium payment term of 3 years and Term period of Insurance is 10 years.
You have a choice of paying your premium either half yearly or yearly and also have facility of single premium topup.
Five Times sum assured of your choosen Premium.
Partial withdrawal Allowed.
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
Entry age 18-55 and Maturity max 65 yrs.
HDFC Unit Linked Wealth Maxmiser Brochure (download)
For Detail Contact: Mr. Syed 9823403494

Dream as you will Live forever

2009-05-01T04:23:00.000-07:00

You Buy Life Insurance Because You Love Some One.

Life insurance is a powerful tool to cover your unforeseen risks that can affect your family in your absence. It also works as a saving instrument which can help you in planning for your:

Life insurance may sound like something you only have to think abefits to buying life insurance early on in your working career. A lot of people go through their entire before understanding what life insurance.
In short Life Insurance is:Protection, Pension, Savings, and Investment.

Different types of insurance protect you and your loved ones in different ways against the …

a) Unexpected or untimely death. (That of dying prematurely leaving a dependent family to fend for itself.)

(b) Living too long (That of living till old age without visible means of support.)

c) Accidental Death

d) Critical Illness

e) Permanent Disability

f) Partial Disability

g) Unemployment

h) Daughter's marriage,

I) Pension retirement benefits or for any defined goal.

Tax benefits are available under Sec.80C, Sec.80CCC of the Income Tax Act.

Note:No one product will suit the needs of every person. One will need to identify what his priorities/needs are and then select a product that will meet his needs. So Always contact IRDA Authorized Financial Consultants.
Visit to know more about Life insurance and Contact Financial Consultant.

http://evasai-finance.blogspot.com
www.evasai.com

Ask our experts (IRDA Certified Financial Consultants)

9823403494 ( for Mumbai and Vasai)

Admin

www.evasai.com

Mumbai, India

Advantages of a Unit Linked Plan?

2009-04-30T00:02:00.000-07:00

Market linked returns: Unit linked plans give you an opportunity to earn market-linked returns as part of the premiums are invested in market linked funds which invest in different market instruments including debt instruments and equity in varying proportions.
Life protection, Investment and Savings: Unit linked plans offer the twin benefits of life insurance and savings at market-linked returns. Thus, you have the opportunity to invest your money to earn higher returns, while taking care of your protection needs. Investing in unit linked plans helps to inculcate a regular habit of saving and investing, which is important for building wealth over the long term.

Flexibility: Unit Linked Plans offer you a wide range of flexible options such as

a. The option to switch between investment funds to match your changing needs.
b. The facility to partially withdraw from your fund, subject to charges and conditions.
c. Single premium additions to enable the policy holder to invest additional sums of money (over and above the regular premium) as and when desired, subject to conditions.

Switching Between Funds

HDFC Standard Life Insurance offers you the flexibility to switch between funds available under a unit linked plan. You may wish to switch between equity and debt funds, in times when there is market volatility or interest rate fluctuations. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly.

Making Withdrawals
You may also make partial withdrawals from your funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal.
You can make a full withdrawal of your policy before its maturity date. However, surrender charges will be applicable in this case.

Source: HDFCLIFEINSURANCE

Contact Hdfc Life Insurance Financial Consultant for more details

Cell:9823403494
Email: smma59@gmail.com

All About Unit Linked Insurance Plans

2009-04-29T23:53:00.000-07:00

In Unit Linked Plans, the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs.

Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals – be it for your retirement planning, for your health, for your child’s education and marriage or for investment purposes.

In a Unit Linked Plan, the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. The value of each unit of a fund is determined by dividing the total value of the fund’s investments by the total number of units.

Which Investor Class Are They Most Suited For?

· Those who wish to closely track their investments: Unit linked plans allow policy takers to closely monitor their portfolios. They also offer the flexibility to switch your capital between funds with varying risk-return profiles.

· Individuals with a medium to long term investment horizon: Unit linked plans are ideal for individuals who are ready to stay invested for relatively long periods of time.

· Those with varying risk profiles: Across the seven funds offered, the equity component varies from zero to a maximum of 100 per cent. Thus there is a choice of funds available to all types of investors - from risk-averse investor to those investors who have strong risk appetite.

· Investors across all life stages: This plan category offers a variety of plans which can be opted for depending upon the life stage you are in and your needs and financial liabilities at that point in time.

Cont

Riders

2009-04-29T23:30:00.000-07:00

A rider is a provision that can be added to a life insurance policy to provide extra coverage for benefits that would otherwise not be covered on the primary policy. A long-term care rider would pay for some or all of your extended care expenses. In effect, your policy would provide you with "living benefits" that you can employ while you are still alive.. These can be purchased at a marginally additional premium.

Types of Riders:

a) Waiver Of Premium
What is: Waiver of premium is a benefit under which payment of premiums is waived off when the insured person suffers total disability. In such a case, further payment of premiums is exempted but the policy continues.

Need: This optional benefit ensures that the policy continues to invest the regular premium as planned and that the objective for taking the insurance policy is not compromised.
b) Critical Illness Cover

What is: If the insured is diagnosed as having any critical illness covered by the insurance company, the sum assured is paid out to the insured person as a lump sum amount. However, the policy continues even as the critical illness cover ceases to exist.

Need: The need for critical illness cover arises because of exorbitant medical costs, which can be covered, at least partially, at a nominal expense through critical illness cover.
c) Accidental Death Benefit

What is: Under the accidental death benefit rider, an additional amount covered under this benefit is payable in the case of the accidental death of the insured person during the term of the rider.

Need: The need for this rider arises because the accidental death of the insured person could cause additional financial inconveniences to the family/dependents due to the event.
d) Accelerated Sum Assured

What is: When Accelerated Sum Assured benefit rider is chosen, the insured person is paid the sum assured on being diagnosed as suffering from any of the critical illness. After the settlement of claim the basic policy is terminated.

Need: The accelerated sum assured is useful when one wants critical illnesses to be covered but desires the same at a marginal cost as compared to Critical illness cover.

Conventional Plans

2009-04-29T23:15:00.000-07:00

Conventional Plans

Pension Plans

Retirement is a natural progression and only if you are financially secure during these years can you hope to live a comfortable retired life. Pension plans are designed to accumulate your savings during your earning years and thereafter provide you with a regular income after retirement so that you don't have to depend on your children or society.

Further, the premium payment in the case of pension plans can be made as recurring payments for a fixed period of time (regular premium) or once as a lump sum (single premium). Either way, the amount and returns thereon are cumulated and paid out to the policy holder at the retirement date as a lump sum. Part of this lump sum is then used to purchase an annuity which provides post retirement income

Benefits:

These plans are flexible as they allow you to choose your investment period, the premium amount and the premium frequency.
Reversionary bonuses are usually declared by the insurance company annually and once declared are guaranteed.
There are tax benefits under various sections of the Income Tax Act, 1961. A deduction is available from the total income up to Rs 1 lakh under section 80 CCC and 80 C.

2. Money Back Plans

When you plan for your future, ideally you should set out with specific goals and these should have costs and deadlines attached to them. Once this is done, money back plans provide an excellent vehicle to take you to the fulfillment of these goals.

Money-back plans are insurance products which pay out pre-defined benefits at periodic times during the entire term of the policy. For instance, in a money-back plan with a 20 year term, 25 per cent of the sum assured could be paid out after every five years (i.e., at the end of the 5th, 10th and 15th year) and the remaining 25 per cent of the sum assured along with the bonus, if any, would be paid out at the end of the 20th year. However, in the case of the unfortunate death of the insured person, the total sum assured (100%) and bonuses will be paid.

Benefits:

Since a part of the sum assured is received periodically, this plan combines short term financial goals with long term savings and insurance.
Tax benefits under Section 80C are applicable on the premium paid.
The periodic lump sums as well as maturity amount is tax free.

3. Children's Plans

Your children are your pride and joy and you would like them to have the best that money can buy. And with a sound financial plan, you can make sure that the materializing of their dreams is not hindered for want of funds. Children's insurance policies and products are designed with this specific aim in mind.

These plans set out to secure you financially against the back drop of constraints such as inflation and the rising cost of education. They help you to fund various aspirations like an overseas education, extra curricular activities, sports training, supplementary vocational education, marriage celebrations, etc. by providing a lump sum amount at a specified future date.

An additional feature offered by children's plans is that they continue to offer financial protection even in the event of the loss of the premium paying parent. This ensures that the amount envisaged is actually delivered even in the event of unforeseen eventualities.

Benefits:

Children's insurance plans enable the parents to save money for child's future without any disturbance to the family budget. This is because the premiums can be chosen to suit the parent's convenience.
There are a number of options and customized products to choose from for the child's future.
Reversionary bonuses are usually declared by the insurance company annually and once declared are guaranteed.
Tax benefits under Section 80C are applicable on the premium paid.
Certain plan options also allow the plan to continue after demise of insured parent and the insurance company continues paying the premium.

4. Endowment Plans

Life is full of risks – both financial and non financial. While it is difficult to eliminate the non- financial risks, insurance helps you to minimize the financial ones. Endowment plans are one such product. They ensure that you receive an assured amount at the end of the policy term plus bonuses, if any. If, due to unfortunate circumstances, the insured person expires during the term of the policy, the sum assured and bonuses go to the nominee. Endowment plans can be taken in the name of minors too.

Benefits:

This plan helps one plan for the future of their loved ones and rest assured that finances will not be an obstacle, even in case of the insured persons demise.
Reversionary bonuses are usually declared by the insurance company annually and once declared are guaranteed.
Tax benefits under Section 80C are applicable on the premium paid.

5. Term Plans

As the breadwinner of the family, even the best financial plan that you create can go out of gear if you are not around to meet the financial commitments it entails. With term plans, you can be sure that in the event of your unfortunate demise your family will be compensated for the financial loss to the extent that you see fit.

Term Assurance Plans are those plans where the sum assured is paid out only if the insured person dies. There is no maturity benefit under these plans. Due to this feature, the premium amount is relatively low.

The premium can be paid regularly or even in a lump sum, according to the design of the plan. Such policies can be taken either on a single basis or on joint basis.

Benefits:

These plans are ideal for individuals who have dependents to be taken care of. In the unfortunate event of the insured person's death, the dependents are left financially secure.
The premium for such plans is very low, especially if the insured in young.
The plan can be topped up with add additional features (known as riders), such as accident death cover or critical illness cover.
There are tax benefits for the insured person.

6. Whole Life Plans

Insurance has become a necessity, particularly in India where most families are dependent on a single earning individual. Further, since there is no social security available in India, the financial interests of the family have to be protected through other sources. Whole life insurance policies are designed to provide lump sum payments to a family in the event of the death of the insured person.

Unlike term insurance, a whole life insurance policy covers you for your entire life and not just for a specific period of time.

Benefits:

The policy stays in force as long as the insured individual continues to live and benefits remain constant during the entire coverage period of the policy.
There is no need to undergo future medical examination once the policy is in force.
There is also an element of tax-saving in these policies.

Comparison Unit Linked Plans And Mutual Funds

2009-04-29T06:36:00.000-07:00

Tax Benefits and slab

2009-04-29T06:25:00.000-07:00

* Calculations are based on highest tax benefits.

Note: These tax calculations are based on present tax legislations, which are
subject to change The aggregate deductions from income under Sections 80C, 80CCC and 80CCD (applicable in case of central government employees only) should not exceed Rs 1 lakh.

*Note:

A further surcharge of 10 per cent is applicable if the taxable income exceeds Rs 10 lakh. An education cess of 2 per cent is applicable on the taxable income (including surcharge if any). A further tax of 1 per cent is charged as higher education cess payable on taxable income (including surcharge if any).

HDFC Taxsaver Fund

2009-04-29T00:56:00.000-07:00

Maximize your returns & Earn attractive Dividends
Returns
7 years – 23.82%
10 years – 28.35%
12 years - 31.80%

Invest Rs. 100,000
Save Taxes upto Rs. 33,990
Earn Tax Free Dividend of Rs. 14,780
Total Savings Rs. 48,770

Dream as you will live forever

2009-03-13T11:53:00.000-07:00

"You Buy Insurance Because you love Someone"

Go ahead; blow your loan-worries away.

Pension plan provides you withthe best for the best of your life .

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Life Insurance is a powerful tool to cover your unforeseen risks that can affect your family in yourabsence. It also works as a saving instrument which can help you in planning for your children’seducation, daughter’s marriage, pension, retirement benefits or for any defined goal.

The factors you should consider before buying any insurance are:

Adequate Sum Assured
Rider Benefits
Competitive Pricing
Administrative Costs
Claim History of the company you are purchasing insurance
And to Know all this you NEED a good IRDA Authorised Financial Consultant. So Before You invest Consult Your Local Financial Consultant authorized by irda
who work To protect the interests of the policyholders.
Contact Authorised Financial Consultant(mumbai and Vasai)
+91 9823403494 (Insurance By Choice Not By Chance)

You Do It for Love

2009-03-08T23:03:00.000-07:00

What is an insurance?

Life insurance may sound like something you only have to think abefits to buying life insurance early on in your working career. A lot of people go through their entire before understanding what life insurance .
In short Life Insurance is:Protection, Pension, Savings, and Investment.

Can I change the beneficiary on my insurance policy?
Changing the beneficiary on an insurance policy is a simple matter. All you need to do for this purpose is to contact your insurance company and follow its instructions for executing a change in beneficiary.

Can someone other than a relative be named as the beneficiary of my insurance policy?
Yes. Although it is typical for an individual to name his or her spouse, child, parent, or other close relatives as the insurance beneficiary, non-relatives, estate, trust, business partners, lender, or domestic partner can also be designated as beneficiary of your insurance policy.

Can the insurance policy be donated for charity?

Yes, you can donate your insurance policy for charity purpose.
I'm single. Do I need an insurance policy?

Single people often think they don't need insurance policy. However, there are many factors that determine your need for insurance. Life Insurance prepare you against happenings

Can I use insurance policy as a tool of financial planning ?

Most insurance plans available today come with the savings aspect. These policies allow you to meet your financial goals of protection against unforeseen future with extra Income tax benefits.

Tax benefits are available under Sec.80C, Sec.80CCC of the Income Tax Act.

What is the advantage of an Endowment Policy?

An Endowment Policy is a combination of savings along with protection against risk. These policies are specifically designed to accumulate wealth, and at the same time, cover the unforeseen future simultaneously.

What will happen to the policy if I miss premium payment on the due date?

Always try to be regular in premium payment. The insurance companies offer a grace period after the premium payment becomes overdue. If you fail to pay the premium within this grace period, your policy lapses.

Is there any penalty for late payment of premium?

Yes, there is. But, the amount is not that big.

What factors affect the amount of the premium?
It differs from policy to policy. In case of life insurance policies, your age is a vital factor.

How do I buy an insurance policy?

Now, there are many players in the Indian insurance sector. Due to the growing competition, these companies are trying their best to make their presence felt..So Always Contact your local IRDA Authorised Financial Consultant before Buying Life Insurance Policy.

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Remember: As your doctor gives you the right medicine, in a same way your Financial Consultant suggest the right financial plan for you.
So Before You invest Consult Your Local Financial Consultant authorized by irda
who work To protect the interests of the policyholders.
Contact Authorised Financial Consultant(mumbai and Vasai)
+91 9823403494
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HDFC Standard Life Insurance

2009-03-08T22:20:00.000-07:00

HDFC Standard Life Insurance

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000.

The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Saraswat Bank and Bajaj Capital.

HDFC Standard Life Insurance have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

Protection Plans
Term Assurance Plan
Loan Cover Term Assurance Plan
Home Loan Protection Plan

Investment Plans

Single Premium Whole Of Life plan
Unit Linked Wealth Maximiser Plus

Pension Plans

Personal Pension Plan
Unit Linked Pension II
Unit Linked Pension Maximiser II

Health Plans
Critical Care Plan
SurgiCare Plan

Savings Plans

Endowment Assurance Plan
Assurance Plan
Savings Assurance Plan
Children’s Plan
Money Back
Unit Linked Endowment Winner
Unit Linked Endowment II
Unit Linked Endowment Plus II
Unit Linked Young Star II
Unit Linked Young Star Plus II Unit Linked Young Star Champion
Unit Linked Enhanced Life Protection II
SimpliLife

Important features

Now You can manage your account Online with HDFC

Online premium Payments

They Provide IRDA Authorised Financial Consultants

Invesrment of your of choice

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Confused about which Insurance policy to take?

Finding it hard to get the best suitable plan?

Ask our experts

(IRDA Certified Financial Consultants)9823403494 ( for Mumbai and Vasai)

==========================================

2009-03-05T10:29:00.000-08:00

HDFC Standard Life Pension Plan

HDFC Standard Life Unit Linked Plans

Insurance should be the base of your financial pyramid

2009-03-03T22:28:00.000-08:00

Make Insurance base of your financial pyramid and save tax is an added bonus.

Life insurance offers tax benefits under two heads: deductions and exemptions.

Deductions are based on the amount invested and are cut from the gross salary.

Exemptions are availed of on the policy benefits that you get on maturity.

Section 80C Income Tax Act:- You can invest up to Rs 1 lakh across certain products.

Life insurers offer a wide choice between life covers and pension plans that help you optimise your tax liability within this limit. The premiums paid by you for a policy can be deducted from your income. This reduces your tax liability. Also, on surviving the policy tenure, the amount that you earn is exempt from tax.

There is more to gain, especially if you have added a health rider to your life insurance, or have taken a health insurance plan. Under Section 80D, the premiums paid up to Rs 15,000 a year are exempt from tax, reducing your tax liability further. In case you have elderly dependants, an additional Rs 20,000 is exempt if the health policy covers them as well.

The pension plans offered by insurers have long tenures, which instills discipline and thrift among investors. As you make regular contributions over a 15-20-year period, you benefit from the power of compounding and this adds significantly to your retirement corpus. Each year of contribution offers you a tax break, the big advantage coming at the time of vesting, when you decide to seek a monthly annuity from the corpus. While 40% of the corpus is exempt from tax on vesting, the remaining is structured into an annuity, which is treated as your income and taxed accordingly.
No wonder, the popularity of life insurance among Indian households is second only to bank deposits.

Summary of Deductions & Exemptions (Source)
Here are some of the ways you can save on tax:
1. Deduction up to Rs 1 lakh is allowed under Section 80C on premiums.
2. Deduction is allowed only for premiums that are up to 20% of the capital sum assured.
3. If the insurance contract is terminated within two years or if the premium is not paid for two years, the tax deduction allowed earlier is taxable as income.
4. For a health insurance policy, deduction up to Rs 15,000 (in case of senior citizens, it is Rs 20,000) is allowed under Section 80D.
5. Under Section 10(10D), any sum received under a life insurance policy, including bonus, is exempt from tax.

==========================================

Confused about which Insurance policy to take?

Finding it hard to get the best suitable plan?

Ask our experts

(IRDA Certified Financial Consultants)9823403494 ( for Mumbai and Vasai)

==========================================

2009-02-19T12:52:00.000-08:00

Why Insurance and what is difference in new and old Policies?

Evasai Resources

India's Number 1 Sales Manage speaks to you

2009-02-19T12:24:00.000-08:00

India's Number 1 Sales Manage speaks to you
Protection, Pension, Savings, and Investment.
Life insurance may sound like something you only have to think about when you get older, but there are a variety of benefits to buying life insurance early on in your working career. A lot of people go through their entire lives before understanding what life insurance .
There are several reasons for this that no one really informed them about it. It is very necessary to contact and ask IRDA certified Financial Consultants about importance of life insurance and which policy suits to their need. IRDA certified Financial Consultant provide this servise free as the insurance company pay them for the same.
Think what is your (Human) Life Value.
One of the methods of calculating your human life value is to sum up all expenses along with your future liabilities that your family members will have to pay off in the unfortunate event of your death.
Once you have done that you must take a life insurance policy to give you an insurance cover equaling your human life value.
As now Insurance Policies are giving better return in long term we also take policies for:-Heavy Educational or other expenses after fixed time period (For Kids), and tax benefits.

Different types of insurance protect you and your loved ones in different ways against the …
a) Unexpected or untimely death. (That of dying prematurely leaving a dependent family to fend for itself.)
(b) Living too long (That of living till old age without visible means of support.)
c) Accidental Deathd) Critical Illness
e) Permanent Disabilityf) Partial Disabilityg) Unemployment

Confused about which Insurance policy to take?
Finding it hard to get the best suitable plan?
Ask our experts (IRDA Certified Financial Consultants)
9823403494 ( for Mumbai and Vasai)
Admin
www.evasai.com

Death or maturity Claim of Insurance

2009-02-19T11:49:00.000-08:00

The most important part in insurance is Death or maturity claim. So many Financial consultants and Customer give it less important. So many time Financial consultants also suggest Customer not to disclose their illness which is a big mistake and always create dispute at the time of Death claim.

Documents Required in Death Claim are:

•Policy Document•Assignment Deed

•Age Proof(if not submitted)

•Certificate of death

•Legal evidence of title

•Discharge Voucher

Documents Required in Maturity Claim are:

•Policy Document•Assignment Deed

•Age Proof(if not submitted)

•Identity proof

•Discharge Form

If the life assured had an unnatural death, such as accident, suicide or unknown causes, police inquest report, panchanama, chemical examiner’s report, post mortem report, coroner’s report, etc. would be required.
=======================
The Supreme Court (SC) has ruled that unless there is a specific contract, an insurance company is not under obligation to pay compensation to a person or an employee who dies in a road accident while driving the vehicle of his employer.
The court said that only when a claim is made under Section 163, a person is not required to establish the charge of negligence. Accordingly, the court reversed the decision of the High Court and ruled that the insurance company was not under an obligation to pay the compensation. Courtesy: Economic Times
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Remember: As your doctor gives you the right medicine, in a same way your Financial Consultant suggest the right financial plan for you.So Before You invest Consult Your Local Financial Consultant authorized by irdawho work To protect the interests of the policyholders.

Contact Authorised Financial Consultant+91 9823403494

Tax Benefits in Insurance plans

2009-02-03T20:58:00.000-08:00

What is Life Insurance?
Life insurance ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It protects your family from financial crises.
In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably.
Key Benefits of Life Insurance
Life insurance, especially tailored to meet your financial need. Need for Life Insurance: Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings: Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.
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Importance of Nomination

2009-01-30T00:06:00.000-08:00

A nominee is the person who receives the benefits when the policyholder, or the person who buys life insurance, dies during the term of the policy. The nominee is to be appointed at the time of buying the policy and the beneficiary can be changed at any time during the term of the policy.

Life insurance policies are long-term contracts and the benefits are more complicated as they depend on the occurrence of pre-defined insured events. Nomination is the tool by which the policyholder can effectively manage the benefits accruing under a life insurance policy. It is the right given to the policyholder to appoint a person or persons to receive the benefits if it becomes a death claim.

For women, the selection of a nominee is especially difficult and is compounded over the different stages in their lives. For instance, before marriage, a woman is most likely to appoint one of her parents as a nominee. After marriage, she may change the beneficiary to her husband and later to her children.

It is not necessary for the nominee to be a relative. Also, the fact that he may or may not have any insurable interest means non-relatives can be appointed as nominees as they are not likely to suffer any financial loss if the policyholder dies. The role of the nominee comes into play only after the policyholder’s demise, thereby reducing his influence over the latter.

A policyholder can appoint multiple nominees and can also specify their shares in the policy proceeds. The details of the nominee typically include his name, age, address and his relationship with the policyholder. To change the nomination, all that a policyholder needs to do is fill up a standard form, cancel the name of the existing person(s) and replace it with the new one(s).

For women, this is an empowering tool as it helps ensure that the proceeds reach the rightful person after their demise and serves the purpose for which the policy was bought.
Source
Nomination vs Assignment

ULIP investors are still going strong.

2009-01-29T23:53:00.000-08:00

Have you invested in the funds through unit-linked plans? If yes, then it's about time to make use of the 'switching' feature, which the plan offers.
Now, if you have been under the impression that ULIPS have been badly hit because of the negative performance of the stock market then you are probably wrong. You might be surprised to know that such has not been the case with market-linked plans. ULIP investors are still going strong.

Advantage of Ulips is the switch feature. This enables the policyholders to adjust their asset allocation between debt and Equity depending on their life stage, risk appetite and the Market conditions.
These swaps can be made any number of times at zero or nominal cost. For instance, if you have just started your career and have 30-40 working years till you retire, a higher exposure to Stocks is good.
But as you approach retirement, your risk appetite may decrease and so should your Equity exposure.
To help the customers, especially housewives who are not financially clued in, understand the complexities of Ulips, Irda, the life insurance regulatory body, has laid out strict guidelines

Allocation of funds to equity and debts

2009-01-29T23:01:00.000-08:00

Allocation of funds to equity and debts

Two methods:

1) Weighted average PE Ratio of Nifty or Sensex,

At higher PE Ratio levels, Reduce your exposure to equity and at lower PE Ratio levels increase your exposure to equity.

We have more exposure to equity when the market is cheap.

2) Term of the policy.

The longer the term to maturity in years, the higher the exposure to equity.

PE is price to earnings ratio

EPS is earnings per share

PE of a company = Market price / Earnings per share

Find PE Ratio of Nifty or Sensex at bseindia.com or nseindia.com

Donot leave it to the insurance agent to identify the product that best suits your needs. I have come across many insurance agents who are more interested in thier commission than your interests. So do your home work before buying a policy.

No one product will suit the needs of every person

2009-01-29T22:45:00.000-08:00

No one product will suit the needs of every person. One will need to identify what his priorities/needs are and then select a product that will meet his needs.

1) If ones priority is mainly investments(return on investment) with insurance cover, then one needs to opt for a good ULIP with less charges and good returns.(Recommend: SBI, HDFC)

2) Guaranteed Returns: Recommend: Traditional endowment plan from LIC.

3) Maximum Insurance Cover with Returns: Regular ULIPS. (Reliance, Bajaj Allianz, ICICI which offer sum assured of 100 times the premium.)

4) Maximum Term(Whole Life): If your priority is to have insurance cover for the rest of your life without any age restrictions, then "Whole Life" ULIPS should suit you best.

5) Childrens Education: Childs Education/Marriage" (Recommend Children's ULIPS. IHDFC Young Star and ICICI Smart Kid or a children's ULIP from any company.) In my opinion, these are very well designed ULIPS which offer excellent security for your kids future. Incase anything unfortunate happens to the proposer, these plans offer immediate "Sum Assured" to the beneficiary. If it is for your Children's future, please donot go for anything less than a Children's ULIP.

6)High Sum Assured with small premiumP: Recommend "Term Plan" of companies like LIC, ICICI and HDFC and checkout which term plan works out to be the best.

ULIPS OR MUTUAL FUND

2009-01-29T22:33:00.000-08:00

ULIPS are best suited for those who seek insurance cover. If a person is not interested in "Insurance" and is mainly interested in "Investing", then he is better of investing in "Mutual Funds". This will help him avoid unnecessarily paying the "Mortality Charges" associated with ULIPs. You might run across insurance agents who might project ULIPS as a very good avenue for investment based on the last two to three year returns. But before you fall into the trap of an insurance agent, always ask yourself "Do you need Insurance Cover". Invest in ULIPS only if the answer to the above question is "YES". ULIPS are a good avenue for investment ONLY for those who also seek "Insurance Cover".

Financial predators or financial advisors

2009-01-29T22:15:00.000-08:00

Avoid becoming a victim of financial predators

(Victims of misselling)

Understand the PRODUCT:-

Prior to investing anywhere, I always advise everyone to first understand the PRODUCT. Be it mutual funds, ULIPS, traditional endowment plans, shares, futures and options, post office Small Saving Schemes, one needs to understand how these products work. Spend as much time as possible in understanding the product. Do your home work, research on the internet and use any other source that is available to you.

Understand RETURNS and RISK:-

Once you have narrowed down on the product, evaluate the returns that can be expected from the product. Next understand the RISK associated with the product. Evaluate if your stomach can digest the risk associated with the investment product.

Understand the CHARGES and BENEFITS:-

Once you have decided on the product to invest, the next step is to evaluate the benefits and charges of the product. One needs to have the patience to read the product brochure to understand the benefits and charges. Evaluate if you are willing to pay the charges for the benefits provided. Not evaluating the charges is one major reason for discontent.

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Not understanding either the product or the risk or the returns or the charges or a combination of all of the above is one major reason why one ends up buying the wrong product.

Fund Management charges are the most important charges for long term investments

2009-01-29T21:56:00.000-08:00

Impact of the following charges on overall returns in insurance
1• Loading Charges
2• Admin Charges: This is the charge for handling paper work and other miscellaneous back office expenses.
3• Fund Management Charges: This is a fee charged for managing your investments. It is usually in the annual interest range of 0.75% to 2.25% depending on the fund you choose to invest in.

Comparison of these three policies
• Bajaj Allianz Unit Gain Plus
• HDFC Unit Linked Endowment Plus
• ICICI Lifetime Plus

Loading Charges
HDFC - 60% first year
Bajaj- 24% first year
ICICI- 25% first year

Admin Charges
HDFC - Rs.240 per annum
Bajaj- Rs.240 per annum
ICICI- Rs.720 per annum

Fund Management Charge
HDFC - 0.80%
BAJAJ- 1.75%
ICICI- 1.50%

For an Investment amount of Rs.24,000 per annum assuming an annual return on investment of 10%, the following is how the returns look like

Investment Time Frame - 5 Years
Best Returns - BAJAJ (7% more than ICICI)
Second Best - HDFC (2% more than ICICI)
Last - ICICI

Investment Time Frame - 10 Years
Best Returns - HDFC (5% more than ICICI)
Second Best - BAJAJ (3% more than ICICI)
Last - ICICI

Investment Time Frame - 15 Years
Best Returns - HDFC (8% more than ICICI)
Second Best - BAJAJ (1% more than ICICI)
Last - ICICI

Investment Time Frame - 20 Years
Best Returns - HDFC (12% more than BAJAJ)
Second Best - ICICI (0.5% more than BAJAJ)
Last - BAJAJ

Investment Time Frame - 25 Years
Best Returns - HDFC (16% more than BAJAJ)
Second Best - ICICI (2% more than BAJAJ)
Last - BAJAJ

For an investment time frame of 5 years, Bajaj Allianz Unit Gain Plus seems to offer the best returns. For any investment time frame of 10 years to 25 years, HDFC seems to offer the best returns.

Regarding charges, on the long run, Fund Management Charges have the most significant impact on performance. You will notice the gap in returns between HDFC and other widening as time passes(inspite of 60% loading charge). This is because it has the least FMC. Even ICICI which offer slightly better fund FMC than Bajaj has been able to surpass the returns of Bajaj Allianz Unit gain plus on the long run.

CONCLUSION
Fund Management charges are the most important charges for long term investments. Chose a ULIP product that has the least fund management charge to maximize your returns.