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. ] annualized as on 31.01.2010

Arbitrage Funds  

NAV 

3

Months

6

Months

1

Year

2

Years

3

Years

Redemption

IDFC Arbitrage Fund

12.18

2.20

3.18

3.40

5.06

6.76

Anytime after 1 mnth

IDFC Arbitrage Plus Fund- Plan B

11.04

2.20

3.12

3.81

N.A

N.A

Anytime after 1 mnth

JM Arbitrage Advantage Fund

12.90

3.08

4.22

4.69

6.41

8.01

After 1 mnth But last thurs of the month -  submission before a week

Kotak Equity Arbitrage Fund

13.59

3.20

4.14

5.14

6.31

7.99

Anytime after 6 mnths

Religare Arbitrage Fund

12.03

2.12

3.30

4.17

5.91

N.A

After 6 mnths But last thurs of the month -  submission before a week

SBI Arbitrage Opportunities Fund

12.58

2.92

3.84

4.13

5.85

7.59

After 6 mnths But last Fri of the month -  submission before a week

UTI Spread Fund

13.30

2.56

3.42

6.02

8.17

9.21

After 6 mnths But last thurs of the month -  submission 23rd of each month

 

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

Particulars

 

NRO

Saving

 

 

NRO

Deposit

 

 

NRE

Saving

 

NRE

Deposit

IDFC Arbitrage Plus Fund

JM Arbitrage Adv. Fund

UTI Spread Fund

Investment by NRI

Permissible

Permissible

Permissible

 Permissible

Permissible

Permissible

Permissible

Repatriation

Not
Repatriable

Not
Repatriable

Repatriable

Repatriable

Repatriable

Repatriable

Repatriable

Tenure

-

7 days -10 Yrs.

-

1 to10 Yrs.

Short &  Medium term

1 yr view

Short & Medium term

1 yr view

Short & Medium term

1 yr view

Risk

Low

Low

Low

Low

Low

Low

Low

Regulatory Status

Public Sector/Private

Public Sector/Private

Public Sector/Private

Public Sector/Private

Under SEBI

Regulation

Under SEBI

Regulation

Under SEBI

Regulation

Lock in period and Liquidity

Free

Ranging from 7days

Free

 1 Yr.

1 month (mnthly redeem)

1 month (mnthly redeem)

6 months (mnthly redeem)

Return (p.a.)

3.50%

3.25%to 8.75%

3.50%

3.15% to 3.72%

Esti. Returns 
3% TO 4%

Esti. Returns 
4.5% TO 8.5%

Esti. Returns 
5% TO 8%

Post Tax Returns (p.a.)

2.31%

2.15% - 5.78%

3.50%

3.15% to 3.72%

3% TO 4%

 4.5% TO 8.5%

5% TO 8%  

Tax status

Interest/Dividend

Taxable

Taxable

TAX FREE

TAX FREE

TAX FREE*

(Div. & LT Cap. Gain)

TAX FREE*

(Div. & LT Cap. Gain)

TAX FREE*

(Div. & LT Cap. Gain)

Tax rate

33.99%*

33.99%*

N.A.

N.A.

^^DDT – NIL

 LT - NIL*** / 

ST - 15.45%

^^DDT – NIL

 LT - NIL*** / 

ST - 15.45%

^^DDT – NIL

 LT - NIL*** / 

ST - 33.99%

 

Notes :
-   Tax rate Includes 10% surcharge & 3% education cess.  *  As applicable to investor in the highest tax bracket    *** For IDFC & JM Arbitrage Fund, short-term capital gain tax is 15.45% & the long term capital gain tax is 0%, while for UTI Spread Fund short-term capital gain tax is 33.99% & 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 6 % to 8 %.

05 The Principal amount as also gains are fully repatriable.

2. Offers of said FMPs are open for few days only - presently upto 10th March,2010.

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 28.02.2010
Rank 1 year - Gain   2 years - Gain   3 years - Gain  

Fund Name

 Gain %

Fund Name

 Gain %

Fund Name

 Gain %
1 Reliance Regular Savings Fund  123.13% Reliance Pharma Fund  81.18% Reliance Pharma Fund  120.22%
2 Reliance Pharma Fund  147.29% Franklin PHARMA FUND  81.17% Reliance  Diversified Power Sector Fund  113.81%
3 Reliance Growth Fund  112.90% Franklin INFOTECH FUND  38.59% Reliance Banking Fund 105.42%
4 Reliance Equity Opportunities Fund  130.44% ICICI Prudential Discovery Fund 34.31% IDFC Premier Equity Fund  96.49%
5 Reliance Banking Fund 120.57% Birla Sun Life Dividend Yield Plus  31.36% Reliance Regular Savings Fund  85.17%
6 Principal Pnb Long Term Equity Fund 3 Years Plan - Series I 133.71% Franklin FMCG FUND  31.06% Franklin PHARMA FUND  75.63%
7 Principal Pnb Long Term Equity Fund 3 Year Plan - Series Ii 151.57% Birla Sun Life MNC Fund  25.14% ING Dividend Yield Fund  70.46%
8 Principal Junior Cap Fund 121.21% ING Dividend Yield Fund  23.33% Birla Sun Life Dividend Yield Plus  70.11%
9 Principal Emerging Blue Chip Fund  170.36% IDFC GSF-PF-Inst Plan B-DMD Less than or Equal to 2 Years 20.40% BARODA PIONEER GROWTH FUND  67.48%
10 NSE 78.11% Reliance Banking Fund 19.95% HDFC Top 200 Fund  65.66%
11 Morgan Stanley A.c.e Fund  127.08% HDFC Equity Fund  19.08% ICICI Prudential Discovery Fund 62.49%
12 Mirae Asset India Oppurtunities Fund  129.04% HDFC Top 200 Fund  17.55% Birla Sun Life Midcap Fund  59.79%
13 L&T Small Cap Fund 114.17% ICICI Prudential Tax Plan  14.60% Reliance Growth Fund  57.70%
14 L&T Opportunities Fund 119.10% ICICI Prudential Dynamic Plan  13.95% DSP BlackRock Top 100 Equity Fund 56.67%
15 Kotak Global India  161.99% Birla Sun Life Buy India Fund  13.37% ICICI Prudential Infrastructure Fund  56.38%
16 Jpmorgan India Smaller Companies Fund  117.83% HDFC Tax Saver 12.80% Birla Sun Life Frontline Equity Fund  56.15%
17 Jm Small & Mid Cap Fund 129.94% DSP BlackRock Equity Fund  12.42% HDFC Equity Fund  55.48%
18 JM Mid Cap Fund  119.84% Kotak Equity Arbitrage Fund  12.17% DWS INVESTMENT OPPORTUNITY FUND 55.24%
19 Jm Emerging Leaders Fund  156.02% Jm - Arbitrage Advantage Fund  12.06% Principal Large Cap Fund  52.18%
20 Jm Basic Fund  133.92% DSP BlackRock Top 100 Equity Fund 11.91% L&T Opportunities Fund 52.00%
21 Birla Sun Life Midcap Fund  139.92% NSE -5.77% NSE 31.43%
22 Birla Sun Life Infrastructure Fund 112.25% BSE -6.54% BSE 26.96%
23 Birla Sun Life India Opportunities Fund  130.47% FTSE -9.00% FTSE -13.24%
24 Birla Long Term Advantage Fund 133.53% DOW JONES -15.82% DOW JONES -15.84%

 

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

 

 

 

 

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