ICICI Prudential Small Cap Fund which was open only for subscriptions through the systematic investment plan (SIP) mode will now accept lump sum investments. In January 2018, ICICI Prudential closed the ICICI Pru PMS Smallcap Portfolio as valuations in the space were stretched. In July 2018, it closed lump sum investments in ICICI Pru Smallcap Fund due to high valuations and heightened volatility. Many fund houses still continue to impose restrictions on lump sum flows in their smallcap funds. DSP Small Cap Fund and SBI Smallcap Fund still do not accept lump sum investments.
The investor education and protection fund authority (IEPFA) has unclaimed dividends of Rs 2,000 crore. Senior government officials say there are at least 2.5 million investors who have not claimed their dividends. Most of the cases are related to those who have shares in physical papers and not in dematerialized forms. Any dividend that has not been claimed by investors has to be transferred by a company to this authority. The investor then has to claim it from the authority.
At times, people may feel the need to discontinue their insurance policy for some reason. In case of term insurance plan, one can simply stop paying premiums and let the policy lapse. However, in case of endowment plans, which combine insurance and savings benefits, once can either convert the policy into a paid-up policy by not paying the premium after the mandatory period; or, surrender the policy (after paying a penalty) and get the surrender value from the insurer. In both cases, one must pay the premium until the end of the mandatory period or else lose all value.
India’s largest bank, State Bank of India, has enabled cardless ATM withdrawals through its mobile application Yono. The bank is also facilitating payments at points-of-sale (PoS) terminals using the app. SBI Chairman Rajnish Kuar launched the Yono Cash service in Mumbai on Friday. The cardless withdrawal service will be rolled out at 16,500 ATMs initially and then extended to all 60,000 ATMs. The service enables the users to generate a dynamic code using the Yono app which will be valid for 30 minutes to withdraw money from the SBI ATM.
Debt funds are preferred over other investment products, especially fixed deposits (FDs), for many reasons, including liquidity, and tax efficiency. An investor can withdraw money from debt funds like liquid funds whenever he wants without paying any penalty, whereas FDs generally have a penalty if they are withdrawn before maturity. Debt funds also offer greater flexibility of investing either a lump sum or periodical sum. Debts funds held for more than three years also offer indexation benefit on the cost value. The cost is adjusted for inflation index thereby increasing the cost and reducing capital gains payable at 20%.
Investments in Equity Linked Savings schemes (ELSS) offer tax deduction benefits of up to Rs 1.50 lakh under section 80C of the Income tax Act. ELSS are essentially equity mutual fund schemes. However, investment in ELSS demands a higher risk appetite as compared to other tax saving instruments like fixed deposits. ELSS also has a mandatory lock-in period of 3 years. Among the most recommended ELSS are Motilal Oswal Long Term Equity Funds, Aditya Birla Sun Life Tax Relief 96, L&T Tax Advantage, Axis Long Term Equity Fund, Mirae Asset Tax Saver, DSP Tax Saver and Invesco India Tax Plan.
According to the data provided by AMFI, the mutual fund managed to garner Rs 8,095 crore through SIPs, slightly higher than the Rs 8,064 crore collected in January. Inflows into equity funds stood at Rs 5,122 crore in February. Monthly equity inflows had touched the high of Rs 20,308 crore in November 2017. Assets under management (AUM) for the MF industry stood at Rs 23.16 lakh crore as at February-end. At present, domestic MFs have about 2.29 crore active SIP accounts.
HSBC Asset Management Company India Pvt. Ltd (HSBC AMC India) today announced the launch of the HSBC Large and Mid Cap Equity Fund – an open-ended equity scheme that invests in both large cap and mid cap stocks. The fund will remain open for subscription till March 25. Open-ended fund is a type of mutual fund that can issue and redeem shares at any time. An investor will generally purchase units directly from the fund itself. Their units are not traded in stock exchange. Open ended mutual funds hold shares of listed companies.
Like equity, currency or interest rate futures, Agri futures allow you to buy or sell an underlying commodity at a preset price on a future date. All Agri futures contracts end in compulsory delivery. Wheat, sugar, Chana, soyabean, castor, chilli, jeera futures, etc. are available to trade. Edible oilseeds and oils, spices and items like guar are among the more liquid contracts. Agri commodity derivatives are riskier than equity futures as prices are influenced by a wide variety of factors like global supply-demand, weather, trade disputes, forex movement.
The insurance regulator, Insurance Regulatory Development Authority of India (IRDAI) is likely to modify ULIP schemes and pension plans for the first time in seven years to make the product more attractive. Insurers could be allowed to exercise the option of charging extra premium for buying riders with ULIPs. A rider is an add-on benefit to the ULIP plan. At present, units are deducted from ULIPs if one buys riders with it. In line with other pension products including the PPF, IRDAI could also allow partial withdrawal from insurance pension plans for reasons such as illnesses, child marriage, and education.
Subscribers of Employees Provident Fund Organisation (EPFO) would not be required to file employee provident fund (EPF) transfer claims on changing jobs from the next fiscal. The EPFO is working on making the EPF transfer process automated. Under the new process, as soon as the new employer would file the monthly EPF return including the universal account number (UAN) of the new employee, the EPF contributions made and interest earned during the employee’s previous job would be automatically transferred. The EPFO gets about eight lakh EPF transfer claims every year.
Most motor car insurance policy assures us of a total loss benefit in case of a car accident. In case of motor insurance, a car is considered to be a 'total loss' if the repair cost of a damaged car exceeds 75% of the insured declared value (IDV). The insurer will only pay the IDV of the vehicle in case of total loss and not the actual replacement cost of the car. Normally IDV for cars up to 5-years old is the dealer price less standard depreciation, and for cars older than 5 years, it is mutually agreed.
IFFCO Tokio Bank Locker Protector Policy offers to cover loss of jewellery and other valuables, including documents, lying in a bank locker arising out of fire, earthquake, burglary, fraud committed by a bank staff or any act of terrorism. The insurance buyer has to fill the physical form and submit a self-declaration of contents lying in the bank locker. Valuation certificate is mandatory for individual item costing Rs 10 lakh or more and if the total sum assured is Rs 40 lakh or more. While settling the claim the insurer will only rely on the FIR filed by the bank.
The mutual fund industry witnessed net fund outflows of Rs 20,083 crore in February. The asset under management at February end stood at Rs 23.16 lakh crore. While the balanced, liquid, income and gilt funds saw exits, SIPs continued to remain robust. SIP inflows touched an all-time high of Rs 8,095 crore and the industry added 2.5 lakh SIP accounts. ELSS also attracted investor attention to meet the tax deduction benefit ahead of the March 31 deadline.
In a first of its kind, the country's largest lender, SBI has announced linking of its savings deposit rate and short term loan rates to the external benchmark rate, the RBI's repo rate with effect from May 1. The move will help transmit benefits of rate cuts announced by the central bank from time to time. The new rates will be applicable to depositors with a balance of over Rs 1 lakh in their account. The bank has linked cash credit and overdraft accounts with limits above Rs 1 lakh to the repo rate along with a spread of 2.25%.