What is deflation?

Deflation refers to fall of prices. It may seem like a good thing, but in reality no economy wants deflation. Deflation usually accompanies economic slowdowns, lower productivity and loss of jobs. Inflation decreases the value of money, deflation increases its value. This incentivises people to save money now, to buy later when things become cheaper. And this economic behaviour leads to further slowing of growth. During deflation, value of money increases and goods become cheaper. However, your earnings could reduce due to the economic slowdown.

During the Great Depression in the 1930s, deflation was in double digits. In recent times, Japan has been struggling with deflation for two decades.

A positive impact of deflation could be increased export competitiveness, if most other economies are experiencing inflation.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

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How to Transfer PF

The new declaration form (New Form No. 11) will replace the existing Form No. 11 (New)

Often, when people change jobs, they end up creating new employee provident fund (EPF) accounts, instead of transferring the old one to the new employer. Part of the reason for this was that employees found the transfer process complicated and preferred to open a new account instead.

In an effort to make it easier for subscribers to transfer their accounts, the Employees Provident Fund Organisation (EPFO) has introduced a new form to transfer the accounts. It is available on the EPFO's website, for employers as well as employees.

Account Transfer
The new declaration form (New Form No. 11) will replace the existing Form No. 11 (New). (Your read it right. Seems EPFO is out of ways to identify the 'new' on this form!)

The form requires information about the previous employment and the know-your-customer (KYC) details.

According to the EPFO, it has been observed since the launch of Universal Account Number (UAN, which is allotted to employees by the EPFO), that multiple UANs were being generated by the subscribers.

The EPFO found this out because many UANs, allotted by the employers, were not being updated with the date of exit. Obviously, many EPFO members were creating new UANs when they changed jobs. Another reason for generation of multiple UANs is that, sometimes the declarations (for example: phone number or marital status) made to the old employer do not match those provided to the new employer. And, if such an employee does not know her old UAN number, a new one will be created.

Not only the newer form is simpler to fill, it is also available as an e-form on the EPFO's website www.epfndia.gov.in.

Besides transferring the account, the new form can also be used for transfer of accumulated funds from the old accounts to the new one associated with the new employer.

Earlier, in order to transfer the funds from one organisation to another, an employee had to fill a separate Form No. 13. The process was complex and transfer of funds usually took a long time. Because of that many employee preferred withdrawal their funds rather than transferring them to new account.

The step to simplify the transfer process will help in bringing down the premature withdrawals too.

However, only those members who have been allotted UAN, and whose KYC details have been digitally verified by the previous employer, are exempt from filling the Form No. 13 separately.

So those who still don't have their UAN, should generate it. If your existing employer is not cooperating, you can generate it on your on too. EPFO has given facility to get the UAN online from its portal http://uanmembers.epfoservices.in/.

At the end of September 2016, more than 28.9 million EPF members have activated their UAN on the UAN portal.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Franklin India Taxshield Online

Invest Franklin India Taxshield Online

 

Franklin India Taxshield delivers by not losing ground when the market tanks.

If one looks at the returns over the past decade, it has been known to underperform the category average in good markets. On the flip side, it has fallen much below the category average during bear phases.

But, by and large, it is a steady performer. Its below-average performance is never abysmal and it manages to hold its own in a market carnage (see table below).

The portfolio is well diversified with around 60 stocks, the top 10 cornering around 38% of the portfolio with banks dominating (HDFC Bank, ICICI Bank, IndusInd Bank, Yes Bank, Axis Bank and Kotak Mahindra Bank). Currently the portfolio reveals a heavy bent towards large caps.

According to our fund analyst, fund manager Anand Radhakrishnan typically selects companies with robust business models, sustainable competitive strengths, and high corporate governance standards. Since the stocks meeting his criteria need not be cheap, Radhakrishnan will pay what he thinks is fair and has shown this in small/mid-caps, where he has displayed a willingness to pay more for incremental growth.

An astute stock picker, he tends to go against the tide. This may get reflected during periods when the market is galloping ahead and his returns are more subdued. But in the long run, his investors are a happy lot.

 

• Fund Manager: Anand Radhakrishnan
• Fund Category: Equity Linked Savings Scheme (equity tax planning)
• Portfolio: Large-cap with a bias for growth stocks
• Investment Process: A research-driven investment approach with a focus on reasonably valued quality stocks.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Postal Life Insurance

Postal Life Insurance doesn't offer term plans. This means it is an insurance plan that comes with maturity benefit. These insurances can be surrendered only after completion of 3 years and in your case since you haven't completed the 3 year period, you will not have the option to surrender it.

We do not recommend endowment policies for insurance purpose. You should keep your insurance and investments needs separate. The only kind of life insurance that makes sense is term insurance because only in that case you are insuring purely against a risk. The moment you buy any other kind of insurance which promises a lumpsum repayment at the end of term, you are actually making an investment that is disguised as insurance. Such policies are expensive, provide you with little life cover, and the investment part offers moderate returns despite decades-long lock-in.

In our opinion, you should discontinue this insurance policy. Note you will not get anything in return upon surrendering your insurance policy before three years. That means you will stand to lose Rs 40,000 that you have paid in first two premiums. However, it's better to incur that loss because if you pay the premium for the third year as well and then surrender the surrender value will be less than the 3rd year's premium. Therefore it is better to let your policy lapse and forgo the paid premiums.

The way to go about it is to calculate how much cover you need and then find a good, low-cost, term insurance. The premiums for a term insurance will only be a fraction of the premium that you will pay for policies like postal life insurance.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Leave your comment with mail ID and we will answer them

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You can write to us at

PrajnaCapital [at] Gmail [dot] Com

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Leave a missed Call on 94 8300 8300

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Capital Gains tax on sale of Property

Long term capital gains from property sale is exempt if the proceeds are used to buy a residential property within two years or on construction of residential property within three years from the date of sale of your existing properties.

The exemption would be equal to the actual amount utilised for the purchase or construction of the residential property.

Alternatively, you can invest the money in capital gains bonds specified under Section 54EC within six months of the sale of your house.  These bonds have a lock-in period of three years.

-----------------------------------------------

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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Property Insurance

Your house needs to be covered against calamities and its contents against theft and damage.

You have insured your `6 lakh car, the `50,000 laptop and even the `15,000 cell phone. Now spare a thought about the `50 lakh house. Though home insurance covers what is possibly their costliest asset, very few Indians understand this and even fewer take steps to cover the risk. No more than 30-40 lakh households in India are insured against natural calamities and other disasters. This is despite the National Disaster Management Authority estimating that 60% of the Indian landmass is prone to quakes and 8% of the country is susceptible to cyclones.

Then there are man-made calamities like fire, rioting and larceny. All these are covered by a comprehensive home insurance policy at an unbelievably low cost. The cost of insuring the structure against damage is as low as `40 per `1 lakh. Keep in mind that you don't need to insure the house for the value of the property but only for the cost of reconstructing it.The costs can vary from `1,800 per sq ft for a basic no-frills structure to `3,000 per sq ft for a premium construction. So, a 1,000 sq ft house should be insured for `18-30 lakh and the cost will be `8002,400 a year.

You can buy a fire and other perils policy as a standalone cover, but most insurance companies encourage buyers to go for a comprehensive plan that covers a wide range of risks. It's advisable to enlarge the cover a bit.

A fire or a flood may not damage the structure, but will ruin everything else inside the house. So you also need to insure the contents of the house against the damage. The cost of insuring contents worth `10 lakh against natural and manmade calamities is just `255 a year. Then come the covers against burglary and breakage. These are also important and will not cost too much.You can enhance the coverage if you perceive a risk, and if your pocket allows.

-----------------------------------------------

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

-----------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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L&T Emerging Businesses dividend

L&T Mutual Fund has announced dividend under the following schemes:

Scheme	Dividend (Rs /unit)
L&T Emerging Businesses-D	1.5
L&T Emerging Businesses Direct-D	1.5

The record date has been fixed as October 21, 2016.

-----------------------------------------------

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

-----------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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