Tuesday, 17 March 2015

Tax Saving Schemes (Options)

Individual Taxpayers have under Section 80C - a Rs. 1.5 Lac Investment limit. 
Image result for tax benefit optionsFor Salaried individuals, a part of this 80C limit gets exhausted through their contribution towards Employee Provident Fund [EPF] that their employees deduct every Month. Also for Taxpayers who are paying EMIs for their homes bought on loans (Home-loans) from a bank (or) a financial institution, repayment of principal amount is also included with in 80C limit.


Last-minute options:
  • On the Equity side, Equity Linked Savings Schemes (ELSSs) are the best bet for investors to save taxes which has out-performed the most popular tax-saving scheme PPF very handsomely. These are mutual fund schemes floated by fund houses which are notified by the government to qualify as investment schemes within 80C limit. There is a lock-in period of 3 years. In case of any withdrawal within the lock-in period, the investor will stand to lose the previous tax deductions. People who are not used to investing in the Stock Markets are sceptical about investing in ELSS. 
  • On the debt side, one of the best tax-saving options is the Public Provident Fund (PPF). It's a Triple-Exempt product. It saves tax at the time of investment, the interest is tax-free and the proceeds at the time of maturity also tax-free. The rate of interest varies every year and is usually around the average annual yield that one gets on 10-year Government Securities (G-Secs), which is called benchmark yield. An investor can put the entire 80C limit, i.e Rs. 1.5 Lac into PPF in one shot. Here, an investor can partially withdraw the PPF money after 5 years.
  • The New Pension Scheme (NPS) is another tax-saving instrument that investors can opt for. The investor gets to take money out only on attaining 60 years of age. At 60, you can withdraw a third of the accumulated corpus but the balance has to be used for buying annuity.
  • Other than these, Investors can look at tax-saving Fixed Deposits (FDs), Insurance Companies like SBI Life, etc and National Savings Certificates (NSCs) at post offices.

ULIPs vs Mutual Funds

Low-cost ULIPs have recently entered the market (2005) and brought in stiff competition for Mutual funds. 
       Between ULIPs and MFs, it is not about which one is better and where to invest. Rather your deciding factor should be what do you want and who you are. Understand your requirements - Do you want to invest or buy insurance or both? Do you want garanteed returns (or) are you fine with some risk?

Parameters

ULIP

Mutual Fund

Definition

ULIP allow investors to direct part of their premiums into different types of funds (Equity, Growth, Money market, SBI Bond, etc.).

A mutual fund pools the money from investors and uses it to invest in various securities according to a pre-specified investment objective.

Purpose
For both Investment and Insurance purpose.
Primarily for Investment purpose. No Insurance benefit.
Lock-in-Period
Lock in period for 5 years; you can withdraw your money. If the policy is discontinued in the first year, the surrender charge is 20% of the premium.
There is no Entry load and after one year there is no Exit load either. You can enter and exit at any time depending on market conditions and personal choice.
Loyalty Benefits
It comes with long-term investment.
No Loyalty (or) Long-term Investment benefits.
Track Record
Actually came into existence from 2005.
Established Product. Until 1987, UTI enjoyed monopoly in market, and then host of government financial companies came up with their own funds.
Tax Status
All Unit Linked Plans offer tax benefits under section 80C.
Only investments in tax saving funds are eligible for section 80C benefits.
Charges Structure
Charges in a unit linked plan include mortality charges for the life insurance provided. In addition, premium allocation charge, fund management charge and administration charges are applicable.
Mutual fund charges include an entry load, the annual fund management charge and an exit load, if applicable.

Friday, 13 March 2015

Smart Money Back Gold - Life Insurance


State Bank of India and Cardiff, a BNP Paribas Company, have entered into a joint venture to form SBI Life Insurance.

SBI Life - Smart Money Back Gold is a savings plan with added advantage of life cover and cash inflow at regular intervals. It is a participating traditional money back insurance plan.

 a)  Policy Name : Smart Money Back Gold;
b) Entry Age: Min = 15 Years,  Max = 55 Years;
c) Policy Term = 12/15/20/25 Yrs.;
d) Premium Mode = Monthly / Quarterly / Half-Yearly / Yearly;
e) Premium Paying Term (PPT) = Policy Term (Same as)
f)  Sum Assured = Life Insurance Coverage = 10 times the Premium Paid(calculate on Year basis).
S.NoPremiumMoney Back on 3rd Year (20%)Money Back on 6th Year (20%)Money Back on 9th Year (20%)Money Returns on 12th Year (50% + Vested Bonus)Pension/Month (Life-Long)
1100020,00020,00020,0001,10,000733
2200040,00040,00040,0002,20,0001,466
3300060,00060,00060,0003,30,0002,300
4400080,00080,00080,0004,40,0003,100
550001,00,0001,00,0001,00,0005,50,0004,000


Thursday, 12 March 2015

Your Financial Advisor

Since February 2013, being an Insurance Advisor (SBI) and expert in Stock Markets, I am here to guide you on how to manage Money (holdings) in right way to establish secure financial conditions.

You all aware of the phrase ' Dress makes a Man', but "Money makes you Real Person". Most of us esp. middle class society are poor in savings. Our basic regular needs like Food, Home-Rent, Electricity Bills, Groceries (Commodities), Petrol expenses, Child-education , etc. consumes more than half of our Salary i.e in Monthly Income. So, We fail to plan for tomorrow. We only realize when we are in critical condition, looking back not a single Penny left to spend, end up with cursing our past deeds.

Why not Plan anything / everything in advance?  Why can't we Start now saving a little amount whatever we have today? Small contribution in Young days turn out to be Asset in Old age.

I am not here to tell you to become Rich in short-time. "Rome was not built-in a day".

First-of-all, all we require to have is 'Patience' and stop using the word 'Excuse' for trivial things. We are all used to say " I don't have time", "I won't believe in Insurance", " Risk in Share Market", "I spend too much money", "I am not Interested", "Sorry", etc.... Until unless we depend on specific continuous source of income, there is unimaginative to be Secure.

More we grow, more Risk we are bound to. None escapes death. Death comes all of a sudden. Be Prepared now. Get Pension and Life Coverage in your last days.

Let's come to the point: Properly Planing, Research Online, Take Advice and Begin Investing your little Income in Insurance; Stock areas like Equity, F/O, Mutual Funds, Bonds; Recurring (R.D) & Fixed (F.D) deposits in Banks; Advertiser zone in Affiliate marketing; Building a Website; Purchasing a Land; Starting a New Business; etc yield some-day a huge profits.

I am here to provide you 3 services :
1) Life Insurance Policy: Being a SBI Life Insurance advisor, I can guide you what plans are suitable (whether it may be Traditional or ULIPS) based on your financial conditions to achieve future goals keeping in mind of your family situations.

2) Stock Trading tips: Do you have a Demat Account? Don't worry. I will help you to open one. It costs you zero.
Based on my experience, I can suggest you on where to invest in which share or funds of companies. It may be Equity, Derivatives or Mutual Funds.
a) For each tip, I charge you just Rs. 210/- for single trade of both Buy & Sell. (It is free if you want me to trade on your behalf). {or}
b) Annual Charge of Rs. 3100/- {Me and my Brother started a 'Earnint' services}

3) Stock Investment Classes: Although there are 50 modules available in Indian Stock Market for NCFM & NISM Certification. Only 3 courses are necessary for procuring a Job in Financial institutions.
a) Capital Markets (Equities) - costs you Rs. 5000/-
b) Derivatives Markets (Future & Options) - costs you Rs, 5000/-
c) Fundamental & Technical Analysis - costs you Rs. 5000/-
d) Total 3 modules package discount Rs. 12000/-

Come forward to "Join Hands" with Me. Lets help others and help yourself - This is My Motto.


  Yours' Financial planner,
      S. Koundinya
  ( 09533791525 )
    Hyderabad, Telangana, India.
                                                                                     

Wednesday, 11 March 2015

Life Insurance and Non-Life Insurance Companies

Life Insurance Companies
Non-Life (General) Insurance Companies