Pratibha Industries launches fixed deposits

Pratibha Industries has launched fixed deposits for a time frame of one, two and three years respectively. The minimum amount of investment is Rs 20,000 and in multiples of Rs 5,000 thereafter. The Company is engaged in the business of Infrastructure development and SAW pipe Manufacturing. Mumbai based Pratibha Industires has project sites across India and Dubai and a manufacturing unit in Thane, Maharashtra.

Product

Interest on the fixed deposit will be paid half-yearly, annually or on a cumulative basis. For a one year deposit you will get 11.5%, for two years 12% and for three years 12.25%. Senior citizens, shareholders and employees are eligible for a 0.25% extra interest. Deposits will be repaid only on maturity. However, in exceptional circumstances, the company may, at its sole discretion, allow premature withdrawal of Deposit. All such premature refunds shall be subject to such terms, as stipulated by the company including reduction in the rate of interest.

Why invest

The interest of 12.25% pa is higher by 250-300 basis points than that offered by most banks. The company is profit making and dividend paying. It posted a net profit of Rs 83.24 crore for the year ended March 2012.

Why not to invest

Company fixed deposits are unsecured and illiquid. Interest income from company fixed deposits is taxable and for those in the highest tax bracket the post tax return works out to a mere 8.46%.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Mutual Fund Capital Gains Statement and Consolidated Account Statement Online

I have got this information from  OneMint’ s mail and I want to share this information with all of you.  It is very important for every mutual fund  investors  to know how they can get vital statement like capital gain and consolidated holding in very easy manner. Not many mutual fund investors know that they don’t require services of their distributors or any other agent/advisor to check the status of their investments or realised/unrealised profit/loss they have made in mutual funds. Surprisingly, even many of the distributors don’t know that it is very easy to get various kinds of consolidated mutual fund statements online and that too in a very short span of time.

Are you surprised, curious and happy at the same time that such a service exists? Just read on how to go about getting these statements in your mailbox. I’m sure you would like to use this service as soon as you finish reading this article.

All what is required to get the necessary information related to your mutual fund investment is that your email id(s) must have been registered with the mutual fund company with whom you’ve made the investment and the same email id should still be active or you can make it active if required.

Here is the process to follow on CAMS Online:

• Visit CAMS Online website – https://www.camsonline.com/default.asp
• Click on “Online Services for Investors”
• Click on Check it Out! under Mailback Services
• Here you have the option to choose the statement(s) you require for your purposes
• For Capital Gain purposes – Click on “Consolidated Realised Gains Statement”. It is also called Investment Performance Statement. It calculates realised gains/losses on FIFO a basis and segregates them as long term and short term. The statement also contains a summary of the dividends paid out in respect of the account
• To check your entire holdings across CAMS, Karvy and Franklin serviced mutual funds – Click on “Consolidated Account Statement – CAMS+Karvy+FTAMIL”
• For other purposes, click on the other respective tabs available there
• Once you select the statement you require, you need to provide your email id(s) which you or your distributor/advisor/agent must have filled when you did your investment(s). If you want to have all your investments across different email ids, you need to repeat this process
• Select the Delivery Option – a download link or an encrypted attachment
• Enter a password of your choice twice just to protect the statement from misuse

CAMS Online accepts only 2 such requests per day and 10 requests per month per registered email id as a precautionary measure in order to prevent spamming. This is an email-only service i.e. if your email address is not registered with the mutual fund company, then you’ll not be able to have your statement online through this process, not even with your PAN or Folio No. In that case, you’ll have to contact the mutual fund company and they’ll send it to your address registered with them or the address registered with CVL while undergoing KYC process.

Here is the process to follow on Karvy Mutual Fund Services (Karvy MFS):

• Visit Karvy MFS website – https://www.karvymfs.com/karvy/
• Click on “Investor Services”
• Under Mailback Services, you have the options to check your portfolio by email id or PAN, get your Account Statement by email id or folio no. and Capital Gains Report by folio no.
• Click on the tab as per your requirement and feed the necessary input to get your statement(s)
• “Portfolio By Email ID” – This tool mails your latest Portfolio Valuation
• “Portfolio By PAN” – This tool mails your latest Portfolio Valuation
• “Account Statement By Email ID” – This tool mails your latest Account Statement
• “Account Statement By Folio” – This tool mails your latest Account Statement
• “Capital Gains By Folio” – This tool mails your Capital Gain Report
• To check your entire holdings across CAMS, Karvy and Franklin serviced mutual funds – Click on “Consolidated Account Statement – CAMS+Karvy+FTAMIL” under Online Services

With Karvy, you need to have the Folio No. of your mutual fund investment to get the Capital Gain Report. If you don’t have the folio number. readily available with you, then you can first get the account statement in your mailbox and then get this report by taking folio number from the account statement.

I hope this information helped you in getting to know about the whole process of getting these statements in your mailboxes. If you have any query or feel that I’ve missed something here please leave a comment and I’ll definitely respond to it.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

 

SEBI’s New Guidelines for MF and IPO

SEBI has announced much awaited measures today for reviving IPO and mutual funds. But many of them will have no effect, as there are no gain for mutual fund investors at all as market regulator SEBI announced extensive changes in its rules for MFs and IPOs.

Major Decisions in MF:

In a major decision that could make it expensive for investors to put money in mutual funds, SEBI decided that any service tax would be charged to ultimate investor, not to the asset management company (AMC).

Now onwards the AMCs would be allowed to charge additional expense ratio (the charge levied by fund houses towards fund management fees and other expenses) for catering beyond a threshold limit in the smaller cities. The SEBI board has decided to promote sales of mutual funds beyond the top 15 cities. The fund houses would be allowed additional 20 basis points expense ratio if 30% of their net sales take place beyond the top 15 cities.

The various decisions also include allowing mutual funds flexibility in using fund expense charges and said a committee is being set up to frame a national mutual fund policy.

Also, the exit load will be credited back to the scheme, as against the current practice of it being given back to the AMC. While it would not add any costs to investors, the move would help stop large-scale churning amongst the schemes.

Major Decisions in IPO:

SEBI decided that a minimum lot of shares would be assured to retail investors in IPOs. It also approved e-IPO procedure for electronic bidding in public offers to help investors across the country bid for shares in a cost-effective manner.  The regulator would also frame new rules for investment advisers.

Among other decisions, non-retail investors cannot withdraw or reduce their price or offer size in IPOs, but can enhance the same, as is the rule for retail investors.

For companies coming out with IPOs, they would now have to disclose the price band at least five working days before the opening of the bidding, as against the current norm of two days.

SEBI has now decided to put a cap of 25% of IPO size to the funds for general corporate purposes. Currently, there is no such cap.

SEBI also decided to fast-track clearance to public offer documents of companies and said it would frame clear rules for rejection of offer documents.

Besides, SEBI has also decided to set up an SRO (Self Regulatory Organisation) to look after the mutual fund distribution business. However, the board could not take a decision on having a “safety net” for investors.

SEBI  has also recommended to the government tax benefits to equity MF investors under the proposed Rajiv Gandhi Equity Savings Scheme (RGESS). 

Investing in mutual funds (MFs) might become more expensive, but retail investors will be assured of a minimum number of shares in initial public offers (IPOs).None of these measures will either expand the market bringing in more retail investors nor would it give greater confidence to the shrinking investor population in the country.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Common Investing Mistakes

The individual investor often makes certain typical mistakes that will eventually cause him to give up or to lose everything. If we just follow some discipline and avoid some mistakes then investing is not much critical rocket science. In this article we are sharing some common investing mistake and how to avoid those mistakes.

Any investment is not 100% safe:

Yes believe me, none investment is 100% safe including your bank fix deposit. Every investment implies a certain risk factor that is determined by a multitude of factors. So if you are ignoring risk factor, it means you are fooling yourself.

Do homework on your investment before investing :

Those investors who neglect risks also have great expectations regarding the general profits. I advise them do proper homework of the investment product. It is very important to understand risk and return ratio very well before investing. If you don’t do proper homework you may be lost the final investment also.

Diversify your portfolio:

Portfolio means, all the investment a certain person has made. Through diversification the investor attempt to cover losses through profits some companies that might register losses. Regarding the optimal rapport between winning and security, a portfolio will have a pyramidal distribution of the stock types. The biggest investment will be done in companies with minimum risk and maximum security like governmental bonds. Climbing the risk stair the number of investments will decrease. Investments in extremely risky companies will represent a low percentage of the portfolio.

Being greedy and/or being afraid:

Greed never pushes to safe investment. Through greed you will only make investments that do not stand a chance. Fear will determine a rather calm and secure behavior that won’t bring you losses but will cause you to flip over great opportunities also.

Identify your need and risk tolerance:

An investment has to be done accordingly to the needs and risk tolerance of every individual. These two elements are unique for each person like fingerprints are always different. The same way there can’t be two persons with identical needs and risk tolerance. So, if an investment is an opportunity for the one, it does not mean it is for you too.

Thinking you are the smartest:

Thinking that you are the smartest investor it is a big mistake. Every investor bases his decisions on information he knows at a certain moment. Not wanting to hear advice or to hear new things, does not make you smarter, it brings you a great disadvantage and you will only put on hazard with your investments. So be updated about financial market and investment.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Dear Investors

I have got very interesting information through mail and I am forwarding the same as I got.

Insurance has been the most ab(used) word, thanks to the mis-selling done by most of the agents / Bank RMs. When earlier ULIPs was offering 40-50% commission, they were busy pushing ULIPs and now when ULIPs are a lot more better thanks to the cleaning work done by the regulator, the insurance companies and agents have shunned ULIPs and moved to selling endowment plans (plans which combines insurance and savings) as can be seen in the below chart which currently offers anywhere between 20-40% first year commission.



We would like to offer following suggestions so that you are not trapped in the game plan of the insurance mis-sellers.

1. The only insurance you should buy is a Term Plan. All other products like Endowment plans, ULIPs, Pension plans, Highest NAV plans are very expensive policies.
2. Never take insurance policies for investment purpose. The returns from endowment policies has been very dismal ranging from 5-7%. Mutual Funds or other avenues are much better vehicles for investments as they are very cost friendly.
3. Whenever an insurance agent or a Bank RM is pushing for a particular policy, ask him if he himself has purchased the same policy. You will know the truth and he will never trouble you next time.
4. Don't trust your agent blindly.
5. Don't take the advertisements at the face value. Most of the time they are mis-leading.
6. Read the fine print carefully ( “Nothing in fine print is ever good news.” ~ Andy Rooney)
7. Incase if you have been sold wrong policies in the last 1-5 years, its better to cut your losses and exit the policy rather then nursing the pain for another 15-20 years.

Pls read the below story on How Insurance Mis-sellers are fooling gullible investors carried out in ET Wealth (23rd July edition)

Warm Regards
Arvind Trivedi
Certified Financial Planner
arvind.trivedi79@gmail.com

How to be prudent investor..?

There are many investors that have very healthy portfolios. This means that not only have they invested in strong, long term, wealth building mutual funds and other personal finance instruments, but they have also followed some simple but strong  investment guidelines. If you want successful  investor, follow some given basic guidelines:

Asset Allocation :

There are many type of thoughts regarding asset allocation. Most individuals that come to us for Financial Planning aren’t sure what their ideal asset allocation should be. The most common approach are for asset allocation is age thumb rule. According to this rule that your equity exposure should be 100 minus your age and put the remaining money into debt.
The amount that you need to have in equity doesn’t depend on your age, but rather on your goal time horizon and your personal risk appetite and tolerance. If you have 10 years left till your financial goal comes around, you can go up to 75% into equity, with 10% and 15% in debt and gold respectively. If you have less than 3 years to go till your goal arrives, try and avoid exposure to equity altogether and go completely into fixed income products. Considering the current interest rate scenario, your debt portfolio could give better yield.

Inflation Impact

We should not underestimate inflation impact. Inflation is going to greatly increase your cost of living with each passing year. You will have to pay more to maintain your current life style. So make your financial plan to achieve your financial goal with the inflation factor. If you ignore inflation impact, certainly you will have to reduce your current life style in your future.

Time Horizon of investment

Before investment you should fix the tenure of investment. After fixing the tenure you should invest your money in suitable product. In general rule, if your horizon more than 10 year then invest in equity may fetch decent return. If investment horizon around 5 year then debt instrument is suitable option for investment and if you need money within one year but don’t know exact time, in that case you can consider liquid fund option.

Keep thing simple and know your risk appetite

When you think about investment, keep things very simple. Complex products always do not fetch great return. You should also know about your risk appetite and risk tolerance. Every person have different risk appetite and tolerance. It is very important to know about your risk profile because it is your hard earned money. Try to be honest and sensible with your money.

In choosing investment option if you have some problem, you can approach for advice financial planner or market expert.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com