FIXED MATURITY PLANS BEAT NRE / NRO YIELDS

 

Comparative Income Analysis of NRO, NRE V/s FMP's (Fixed Maturity Plan) 

 

Particulars

NRO 1 Yr.

Deposit

NRO 

Savings

NRE 1 Yr.

Deposit

NRE 

Savings

ICICI Pru.  Mutual Fund FMP

TATA

 Mutual Fund

FMP

Return (p.a.)

9.50%

3.50%

4.17%

3.50%

8.75%

9.00%

Tax rate *

33.66%

33.66%

NIL

NIL

11.33%

 22.66%

Net

6.30%

2.32%

4.17%

3.50%

7.76%

6.96%

Tenure

1 Yr.

Min. 1 mnth.

1 Yr.

Min. 1 mnth.

370 Days

13 Mnths

Lock in period and Liquidity

1 yr.

Min. 1 mnth for Interest

 1 Yr.

Min. 1 mnth for Interest

 

^redemptions made during repurchase facility period

^Redemption before maturity

Repatriation

Not
Repatriable

Not
Repatriable

Repatriable

Repatriable

Repatriable

Repatriable

Tax status

Interest/Dividend

Taxable

Taxable

TAX FREE

TAX FREE

Subject to Max. 10% Tax

Subject to Max. 10% Tax

 

 

Salient Features of Fixed Maturity Plan

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.

 

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

NAME

E-MAIL

 

Currently no FMPs are available.

 

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.

 

For investment in Indian Mutual Fund, please note that you require;
.01 Permanent Account Number (PAN Card) - not only PAN Number
.02 Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account in India** and
.03 Know Your Customer (KYC) compliance.

 

** If you wish to open new NRE / NRO bank account, please inform.

 

However, if you do not have the Permanent Account Number  (PAN) and Know Your Customer (KYC) compliance which is mandatory and if you wish to avail, we will provide professional assistance for application of Permanent Account Number  (PAN) and Know Your Customer (KYC) compliance.

   

http://www.nrimutualfunds.com/application/pan_blank/pan.htm

 

http://www.nrimutualfunds.com/application/k_y_c/kyc.htm 

 

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 30.04.2009 

 

1 year - Gain

 

2 years - Gain

 

3 years - Gain

 

Fund Name

Gain %

Fund Name

Gain %

Fund Name

Gain %

1

Uti - Spread Fund

9.74%

Principal Focussed Advantage Fund 

30.25%

Reliance  Diversified Power Sector Fund 

54.77%

2

Hdfc Arbitrage Fund 

7.48%

Uti Wealth Builder Fund

25.99%

Reliance Banking Fund

42.94%

3

Kotak Equity Arbitrage Fund 

7.35%

Reliance  Diversified Power Sector Fund 

23.44%

Uti Leadership Equity Fund 

37.93%

4

Jm - Arbitrage Advantage Fund 

7.31%

Reliance Index Fund - Nifty Plan 

21.03%

Franklin India Growth Fund

36.17%

5

Religare Arbitrage Fund

6.98%

Uti Leadership Equity Fund 

20.92%

Reliance Index Fund - Nifty Plan 

33.47%

6

Sbi Arbitrage Opportunities Fund

6.82%

Uti - Spread Fund

19.92%

Principal Focussed Advantage Fund 

31.96%

7

IDFC Arbitrage Fund - Plan B 

6.55%

Jm - Arbitrage Advantage Fund 

16.85%

Reliance Index Fund - Sensex Plan 

30.52%

8

IDFC Arbitrage Fund - Plan A 

6.02%

Kotak Equity Arbitrage Fund 

16.62%

Uti Thematic Banking Sector Fund 

29.52%

9

Birla Tax Plan '98

0.00%

Sbi Arbitrage Opportunities Fund

15.88%

Kotak Equity Arbitrage Fund 

26.08%

10

Franklin India Growth Fund

0.00%

IDFC Arbitrage Fund - Plan B

15.43%

ICICI Prudential Infrastructure Fund

24.07%

11

Franklin India Taxshield'95

0.00%

Reliance Index Fund - Sensex Plan

14.83%

Birla Sun Life Frontline Equity Fund

15.71%

12

Ft India Pe Ratio Fund

0.00%

IDFC Arbitrage Fund - Plan A

14.28%

Reliance Regular Savings Fund 

15.42%

13

Jpmorgan India Equity Fund 

0.00%

Reliance Banking Fund

14.10%

DSP BlackRock Top 100 Equity Fund 

15.23%

14

Principal Equity Fund

0.00%

Franklin India Growth Fund

13.34%

IDFC Premier Equity Fund

14.61%

15

Principal Focussed Advantage Fund

0.00%

Uti Equity Fund 

10.87%

Uti Equity Fund 

12.66%

16

Reliance Index Fund - Nifty Plan 

0.00%

ICICI Prudential Infrastructure Fund 

4.48%

Uti - Dividend Yield Fund

12.39%

17

Reliance Index Fund - Sensex Plan 

0.00%

Birla Tax Plan '98

4.18%

Birla Tax Plan '98

10.54%

18

Sun F&c Emerging Technologies Fund 

0.00%

IDFC Premier Equity Fund

3.59%

HDFC Top 200 Fund 

9.18%

19

Sun F&c Value Fund 

0.00%

Uti Opportunities Fund

3.55%

IDFC Imperial Equity Fund

8.71%

20

Tata Service Industries Fund 

0.00%

Uti - Dividend Yield Fund

2.63%

HSBC Equity Fund 

6.18%

21

DOW JONES

-36.29%

DOW JONES

-37.47%

FTSE

-29.54%

22

BSE

-34.04%

FTSE

-34.20%

DOW JONES

-28.14%

23

NSE

-32.75%

BSE

-17.80%

BSE

-3.79%

24

FTSE

-30.29%

NSE

-15.02%

NSE

-2.35%

* 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 

 

Copyright: Keynote Consultancy P. Ltd