FIXED MATURITY PLANS BEAT NRE / NRO YIELDS

 

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.

 

List  of Current FMPs :

    

Sr.  No.

Scheme Name

Date

Indicative Yield

Application forms

1.

ICICI Prudential FMP Series 48 - 3 Years Plan B

3rd November'08 - 05th December'08

10 to 10.50%

Application forms

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

NAME

E-MAIL

Current FMP

ICICI Prudential FMP Series 48 - 3 Years Plan B

Indexation Benefit Available! Opens on: 03rd November'08 Closes on: 05th December'08

Type of scheme

A Close-Ended Debt Fund

New fund offer price

Rs.10/- per unit.

Allotment Date

12th December, 2008

Maturity Date

12th December, 2011

Tenor of the scheme

1095 days

Indicative Yield

Retail Plan: 10 to 10.50%

Institutional Plan: 10.50 to 11%

Entry Load

Nil.

Exit Load

If the amount sought to be redeemed is invested for a period of one year Or less than one year from the date of allotment: 3%

If the amount sought to be redeemed is invested for a period of more than one year from the date of allotment but redeemed before the date of maturity of the Scheme: 2%

Minimum application amount

Retail Plan: Rs.5,000/-

Institutional Option: Rs.25,00,000/-

Investment objective

To seek to generate returns by investing in a portfolio of fixed income securities/ debt instruments normally maturing in line with the time profile of the Plan.

Options available

(I)  Growth

(II) Dividend

  - Dividend Payout

 

Example For Computation Of  Indexation Benefit

 

 

 

 

Dividend

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%

Fixed Maturity Plans (FMPs)-  BASICS

Safe, predictable and better post-tax returns than bank FDs Rising interest rates not only mean rising EMIs but also offer an opportunity to earn higher returns. Debt schemes are now offering attractive returns with short-term rates in the region of 8-10%. Call money rates have been moving higher to about 7.5-8% due to tight liquidity conditions. With the RBI deciding to raise the cash reserve ratio (CRR), liquidity conditions have worsened. Tightness in the money markets is expected to continue till the end of the current financial year and investors can consider investing in short term options like FMPs or floating rate schemes. Fixed maturity plans, or FMPs as they are popularly called, are close-ended funds with a fixed tenure and invest in a portfolio of debt products whose maturity coincides with the maturity of the product. The primary objective of a FMP is to generate income while protecting the capital by investing in a portfolio of debt and money market securities. The tenure can be of different maturities, ranging from one month to five years. FMPs can be compared to fixed deposits of a bank. While a fixed deposit offers a 'guaranteed' return, returns in FMPs are only 'indicative'. Typically, the fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers before the scheme opens. That way it knows the interest rate it will earn on its investments, providing the 'indicative return' to investors.                                                                                                                                                                         

Benefits of FMPs

FMPs offer many benefits like tax efficiency, fixed tenure and low sensitivity to interest rates. The minimum investment amount is usually Rs 5,000, which a retail investor can easily invest.

Capital protection: FMPs have less risk of capital loss than equity funds due to their investment in debt and money market instruments.

Low interest rate sensitivity: As the securities are held till maturity, FMPs are not affected by interest rate volatility. The actual returns are more or less close to the indicative returns declared at the scheme's launch.

Lower cost: FMPs involve minimum expenditure on fund management, as there is no requirement for a time-to-time review by fund managers to buy/sell the instruments constituting the fund. Since these instruments are held till maturity, there is a cost saving in respect of buying and selling of instruments.

Tax benefits: FMPs score over fixed deposits because of their tax efficiencies both in the short-term as well in the long-term.

 

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

Returns of Arbitrage Funds [ Gr. ] absolute upto 1 yr. & annualized as on 31.10.2008

Arbitrage Funds  

NAV 

1 Month

3 Months

6 Months

1 Year

2 Years

3 Years

IDFC Arbitrage Fund

11.59

0.73

2.15

3.47

7.06

N.A.

N.A.

JM Arbitrage Advantage Fund

12.14

1.23

2.86

4.64

8.80

9.13

N.A.

Kotak Equity Arbitrage Fund

12.68

0.61

2.25

3.77

7.69

8.48

7.99

Lotus India Arbitrage Fund

11.37

0.90

2.45

4.14

8.56

N.A.

N.A.

SBI Arbitrage Opportunities Fund

11.85

0.88

2.21

3.85

7.80

N.A.

N.A.

UTI Spread Fund

12.22

0.97

2.53

4.63

9.15

9.28

N.A.

 

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.

MF Equity Schemes & BSE, NSE, FTSE, Dow  1 / 2 / 3 Years Performance as on 31.10.2008
Rank 1 year - Gain 2 years - Gain 3 years - Gain
Fund Name Gain % Fund Name Gain % Fund Name Gain %
1 Uti - Spread Fund  8.91% Principal Focussed Advantage Fund 33.21% Reliance  Diversified Power Sector Fund  107.29%
2 Jm - Arbitrage Advantage Fund  8.57% Uti Leadership Equity Fund  29.88% Principal Focussed Advantage Fund Growth Plan 93.06%
3 Lotus India Arbitrage Fund  8.34% Reliance Index Fund  27.08% Reliance Index Fund - Sensex Plan  92.78%
4 Hdfc Arbitrage Fund  8.20% Reliance  Diversified Power Sector Fund 22.80% Reliance Index Fund - Nifty Plan  73.96%
5 Sbi Arbitrage Opportunities Fund 7.58% Reliance Index Fund  21.60% Uti Equity Fund 62.10%
6 Kotak Equity Arbitrage Fund  7.46% Uti - Spread Fund  19.40% Birla Tax Plan '98 61.17%
7 IDFC Arbitrage Fund - Plan B 7.36% Jm - Arbitrage Advantage Fund 19.01% Sundaram BNP Paribas Select Focus 59.10%
8 IDFC Arbitrage Fund - Plan A 6.82% Kotak Equity Arbitrage Fund  17.69% DSP BlackRock Top 100 Equity Fund 57.68%
9 Principal Focussed Advantage Fund  1.44% Uti Equity Fund  14.36% ICICI Prudential Infrastructure Fund  56.63%
10 Aig Infrastructure And Economic Reform Fund  N.A. Birla Tax Plan '98 6.68% Tata Infrastructure Fund 47.45%
11 Bsl Pure Value Fund  N.A. IDFC Premier Equity Fund  6.26% HDFC Growth Fund  46.84%
12 Bsl Special Situations Fund  N.A. Reliance Banking Fund 3.14% Franklin India Prima Plus 43.84%
13 Bsl Tax Relief'96 Fund-elss N.A. Aig India Equity Fund Institutional Growth N.A. IDFC Premier Equity Fund 43.76%
14 Franklin Asian Equity Fund N.A. Aig India Equity Fund Regular Growth N.A. Sundaram BNP Paribas Tax Saver  43.49%
15 Franklin India TAXSHIELD'95 N.A. Aig Infrastructure And Economic Reform Fund  N.A. Uti Growth Sector Fund  41.36%
16 FT India Pe Ratio Fund N.A. Birla Long Term Advantage Fund  N.A. Uti Thematic Large Cap Fund  40.39%
17 Hdfc Infrastructure Fund  N.A. Bsl International Equity N.A. HDFC Top 200 Fund  39.86%
18 Hsbc - Emerging Market Fund  N.A. Bsl Pure Value Fund  N.A. Kotak 30 Equity Scheme  38.92%
19 Hsbc - Small Cap Fund  N.A. Bsl Special Situations Fund  N.A. Reliance Growth Fund 38.74%
20 Icici Prudential Fusion Fund  N.A. Bsl Tax Relief'96 Fund N.A. Dws Investment Opportunity Fund  38.70%
21 DOW JONES - $ -32.97% DOW JONES - $ -11.36% BSE Sensex 8.01%
22 FTSE 100 - £   -34.88% NSE -11.46% NSE 7.24%
23 BSE Sensex -50.66% BSE Sensex -12.24% DOW JONES - $ -3.52%
24 NSE -51.10% FTSE 100 - £   -14.29% FTSE 100 - £   -5.89%

* N.A. stands for Not Applicable.

 

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

 

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