MFs -  Arbitrage Funds  - an excellent alternative beating NRE / NRO interest rates

Arbitrage Fund makes the most of the difference across markets by investing in cash and futures market in a diversified basket of equity & equity related instruments, derivative and debt and money market instruments in accordance with asset allocation pattern. Unlike NRE/NRO Fixed deposits Arbitrage funds can be liquidated any time or once a month in some cases. And moreover the dividends are totally TAX FREE and both the principal and dividend are fully &  freely repatriable too.

 

Returns of Arbitrage Funds [ Gr. ] upto 1 yr. absolute & over 1 yr. annualized as on 29.08.2008

Arbitrage Funds NAV  1 Month 3 Month 6 Month 1 Year
IDFC Arbitrage Fund - Plan A (Regular) - Growth 11.40 5.97 5.10 4.72 6.81
IDFC Arbitrage Fund - Plan B (I P) - Growth 11.50 6.47 5.60 5.23 7.34
IDFC Fixed Maturity Arbitrage Fund - S1 - Plan A - Growth 10.52 8.46 8.50 7.12 N.A
JM Arbitrage Advantage Fund - Growth 11.88 6.99 7.08 6.19 8.04
Kotak Equity Arbitrage Fund - Growth 12.49 7.35 6.55 5.51 7.55
Lotus India Arbitrage Fund - Growth 11.16 6.96 6.75 6.04 8.06
SBI Arbitrage Opportunities Fund -  Growth 11.65 6.00 5.85 5.17 7.36

 

Comparative Income Analysis of  RBI , NRE , NRO   V/s   Arbitrage Funds

Particulars

RBI Bonds

NRO 

Deposit

NRE 

Deposit

Std Chartered Arbitrage Fund

JM Arbitrage Adv. (Equity)

UTI Spread Fund

Investment by NRI Not Permissible Permissible  Permissible Permissible Permissible Permissible
Repatriation Not Applicable Not
Repatriable
Repatriable Repatriable Repatriable Repatriable

Tenure

6 Yrs.

7 days -10 Yrs.

1to10 Yrs.

Short &  Medium term

1 yr view

Short & Medium term

1 yr view

Short & Medium term

1 yr view

Risk

Low

Low

Low

Low to Moderate

Low to Moderate

Low to Moderate

Regulatory Status

Sovereign

Public Sector/Private

Public Sector/Private

Under SEBI

Regulation

Under SEBI

Regulation

Under SEBI

Regulation

Lock in period and Liquidity

6 years

Usually 1 yr (ranging from 7days)

 1 Yr.

1 month^ (monthly redeem)

1 months^ (mthl redeem)

6 months^ (mthl redeem)

Return (p.a.)

6.5%

3.5%to 9.25%

3.5% to 4.22%

Esti. Returns 
7% TO 9%

Esti. Returns 
7% TO 9%

Esti. Returns 
7% TO 9%

Post Tax Returns (p.a.)

5.31%

3%-7.33%

3.5%- 4.27%

7% to 9%

 7% to 9%

 7% to 9%

Tax status

Interest/Dividend

Taxable

Taxable

TAX FREE

TAX FREE

TAX FREE

TAX FREE

Tax rate

33.66%*

33.66% Nil

   Divi - NIL         LT - NIL*** / 

ST - 11.22%

  Divi - NIL         LT - NIL*** / 

ST - 11.22%

  Divi - NIL         LT - NIL*** / 

ST - 11.22%

Notes :
-   Tax rate Includes 10% surcharge & 2% education cess
       ^   Subject to applicable Contingent Deferred Sales Charge (CDSC) for JM E&D Fund & exit load for JM Arbitrage Advantage Fund.        *   As applicable to investor in the highest tax bracket.        **  For JM E&D Fund, short-term capital gains tax is 33.66% & the long term capital gains tax is 11.22%     *** For JM Arbitrage Adv. Fund, short-term capital gain tax is 11.22% & the long term capital gain tax is 0%        ^^  Rate of Dividend Distribution Tax (DDT) NIL.

Fixed Maturity Plans [FMPs]

Salient Features

1 Initial investment is made in Indian Rupee  Fixed Maturity Plan of  leading Mutual Funds like Standard Chartered, Franklin Templeton Mutual Fund, Tata Mutual Fund and others.

02 The principal amount and fixed returns are both guaranteed.

03 The gains are  taxed after indexation.

04 Annualized yield for NRI investor after tax ranges to 9.90 % to 10.10 %.

05 The Principal amount as also gains are fully repatriable.

2. Offers of said FMPs are open for few days only - presently upto 22nd of March. Again a set of FMP will be offered between 25th to 27th of March, wherein the rate of interest may vary.

3. If the offers find your interest, please contact us whereupon we will do the needful for placement of investment / deposit.

                                                                        FMP Gains with  Computation Of  Indexation Benefit

 

 

 

 

FMP 9%-Dividend

FMP 9%-Growth

Indexation

Individual & HUF

Corporate

A

Purchase Price

100

100

100

100

B

Post Expenses Yield

9.00%

9.00%

9.00%

9.00%

C

Repurchase Price A=P*(1+R)^T

110.29

110.29

110.29

110.29

D

GAIN=C-A

10.29

10.29

10.29

10.29

E

INDEXED COST @5%

NA

NA

NA

105.00

F

INDEXED GAIN=C-E

NA

NA

NA

5.29

G

Tax Rate

14.16%

22.66%

11.33%

22.66%

H

Tax

1.28

1.90

1.17

1.20

I

Post Tax Gains

9.01

8.39

9.12

9.09

J

Value of Investment

109.01

108.39

109.12

109.09

K

Post Tax CAGR

8.76%

8.15%

8.87%

8.84%

welcome to  -  INDIA   - the global investment destination  -
Indian Equity Mutual Funds with Midas Touch

Our Objective

:

Wealth creation and value addition to client's investments.

Our Philosophy

:

creation of portfolios optimising by way of  -  minimum risks and maximum returns. 

Our Team 

:

Qualified chartered accountants and mutual fund advisors.

Our Style

:

Simplicity of personalised professional services as reflected in our strategies of  :

●  NO open ended  NFOs  as our research shows initial 3 to 6 months of  investment NFOs languish.

●  NO CHURNING nor profit bookings with every swing of the stock- market.

●  Expertise of FEMA , TAX & MF Planning & portfolio Services from qualified professionals under one umbrella.

●  And ofcourse the real advantage - nrimutualfunds.com  is - being  Independent Financial Advisors [ IFA ] senior executives are constantly available to you, not playing musical chairs - an attrition menace of the Industry. 

Our Services

:

As AMFI registered Corporate Mutual Fund Advisors, our services comprise of  : 

●  Suggesting investment strategy balancing risks and returns suitably for each investor.

●  Provide detailed Asset Allocation Plan [ AAP ] and opting for purchase averaging.

●  Preparation of all necessary applications and other paper work being  dispatched to investor for signatures

●  Maintenance and reporting of portfolio on quarterly basis.

●  Advising profit booking and/or switch from time to time & further reinvestment of sale proceeds on an ongoing basis.

●  Advising tax matters and providing annual statement of Dividend and Gains.

Your Security

    & 

    Convenience

:

 

:

All investments are made in name of the investor- under his own signature & as MF schemes are electronically linked to investor's notified bank account, error free transfers for investment & realization are ensured.

The investor has only to sign the dotted line as completed application forms and necessary paper work is prepared and dispatched by our Office.  

Our Fees

:

As Mutual Fund Houses offer mobilization charges, investors are not required to pay any advisory or management fees.

To initiate Mutual Fund Investment & avail our Mutual Fund Portfolio Services, please provide

NAME

E-MAIL

MF Equity Schemes & BSE, NSE, FTSE, Dow  1 / 2 / 3 Years Performance as on 30.09.2008

Rank 1 year - Gain 2 years - Gain 3 years - Gain
Fund Name Gain % Fund Name Gain % Fund Name Gain %
1 Principal Focussed Advantage Fund 19.98% Reliance  Diversified Power Sector Fund 111.72% Reliance  Diversified Power Sector Fund 194.32%
2 Reliance  Diversified Power Sector Fund 17.39% IDFC Premier Equity Fund 73.05% Tata Infrastructure Fund 115.94%
3 Jm Healthcare Sector Fund 15.91% ICICI Prudential Infrastructure Fund 66.04% DSP Merrill Lynch Top 100 Equity Fund 112.13%
4 Reliance Regular Savings Fund 14.98% Reliance Banking Fund 59.54% Sundaram BNP Paribas Select Focus 111.40%
5 Reliance Index Fund 12.29% DWS Investment Opportunity Fund 54.10% DWS Investment Opportunity Fund 109.48%
6 Uti Growth Sector Fund - Pharma And Healthcare 11.53% Reliance Regular Savings Fund 52.27% DWS Alpha Equity Fund 106.88%
7 Uti Wealth Builder Fund 10.19% Principal Focussed Advantage Fund 49.29% Reliance Regular Savings Fund 101.60%
8 Uti Long Term Advantage Fund 9.95% Tata Infrastructure Fund 47.32% HDFC Top 200 Fund 101.13%
9 ICICI Prudential Infrastructure Fund 9.35% Reliance Growth Fund 46.19% HDFC Growth Fund 100.69%
10 Uti - Spread Fund 8.54% TATA Equity PE Fund 46.03% Franklin India Growth Fund 100.68%
11 Lotus India Arbitrage Fund 7.86% Uti Leadership Equity Fund 45.75% DSP Merrill Lynch India T.I.G.E.R. Fund 98.50%
12 Jm - Arbitrage Advantage Fund 7.85% HDFC Growth Fund 43.83% Kotak 30 Equity Scheme 96.26%
13 Kotak Equity Arbitrage Fund 7.34% DSP Merrill Lynch Technology.com Fund 43.70% Kotak Opportunities 95.81%
14 Sbi Arbitrage Opportunities Fund 7.25% Templeton India Equity Income Fund 42.77% Jm Basic Fund 93.29%
15 IDFC Arbitrage Fund 7.05% Franklin India Growth Fund 42.70% ICICI Prudential Dynamic Plan 92.76%
16 DWS Investment Opportunity Fund 6.69% Sundaram BNP Paribas Select Focus 42.32% Birla Sun Life Frontline Equity Fund 92.73%
17 IDFC Premier Equity Fund 6.65% Kotak Opportunities 42.05% Reliance Index Fund - Sensex Plan\ 91.59%
18 IDFC Arbitrage Fund 6.51% DSP Merrill Lynch Top 100 Equity Fund 41.84% Reliance Growth Fund 89.81%
19 Franklin Pharma Fund 6.12% Sundaram BNP Paribas Tax Saver 40.30% Uti Thematic Infrastructure Fund 89.55%
20 Uti Leadership Equity Fund 5.89% Jm Basic Fund 39.88% Principal Focussed Advantage Fund 87.58%
21 NSE -2.94% NSE 13.46% NSE 27.23%
22 BSE Sensex -4.92% BSE Sensex 12.25% BSE Sensex 8.16%
23 FTSE 100 - £   -10.58% DOW JONES - $ 0.71% DOW JONES - $ 3.38%
24 DOW JONES - $ -13.58% FTSE 100 - £   -2.28% FTSE 100 - £   2.14%

 

To initiate Mutual Fund Investment & avail our Mutual Fund Portfolio Services, 
Pl. provide your details at :
nrimf@femaonline.com 

 

 

 

 

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