There has been a lot of debate on AMFI's proposal to cap upfront commissions for distributors. The debate on twitter has been particularly incisive and one can get a general sense of how the debate went outside AMFI. A few links on the topic and some really great comments are given below in the storyfied collection. Read on for quotes from Mutual Fund CEOs distributors, planners and others...
Tuesday, March 31, 2015
Thursday, March 26, 2015
A message from LIC to policy holders warning of bogus calls
The below is a reproduction of a message sent by LIC to policy-holders on what should be done if you get s suspicious phone call regarding your LIC policy. A few people I know have received calls asking for information regarding a "bonus" on insurance to be received.
Issued in public Interest
Dear Policyholder,
We have been receiving certain complaints where our policyholders received phone calls promising undue amounts/Bonuses to them. Caller normally poses as if he is calling from LIC office or IRDA office.
Before disclosing any information you are requested to check the genuineness of the call. It can be checked through your regular agent. You can also call on IVRS number 1251 or send an e-mail at co_crm_fb@licindia.com.
In case ,it is known that you had received a fake or spurious call please file an FIR with the police and lodge complaint at TRAI regulated phone number ‘1909’ with your mobile /landline on which spurious call was received within 3 days of receipt of such call. Please send a copy of complaint to LIC also.
Assuring you of our best services always.
Executive Director (CRM)
LIC of India
Some great posts on Banks and Banking - storyfied
Some great posts on Banks and Banking on Capital Mind.
Tuesday, March 24, 2015
Quantum Mutual Fund explaining their high cash levels
Quantum Mutual Fund on why a higher cash level is necessary sometimes:
The link to the original write up is here
It is said that, sitting on cash in not always the best strategy in equity markets. Such a move could easily backfire in surging market conditions. With high valuations it makes sense to wait rather than risk investors’ money at this time says Quantum.
With markets regularly hitting new highs and then falling suddenly before rising yet again; the AMC feels that it makes sense to wait. We believe in the long term outlook either for a particular stock, or for the Indian economy as a whole."The AMC is clear that they are not worried about short-term under performance if it has potential to generate risk-adjusted returns in the long term.
Currently the cash holding for Quantum Long Term Equity Fund is around 30 per cent and it’s the highest since the launch of the fund. Since elections results have been declared last May, markets have soared sharply with little fundamental changes like increased corporate spending etc. to back this jump. Hence, we have lightened our exposure to sectors like industrials, capital goods and financials, only because we are not comfortable with current valuations.
Cash is residual after investing in stocks
For us, cash is residual after investing in stocks. We follow the bottom up stock selection process, where we identify stocks and build a portfolio. Our research team and the Fund Management team set the buy and sell limit of the stocks. We generally buy a new stock at the pre-determined Buy price (or below) and generally sell an existing stock at the pre-determined Sell price or above.
The Past explains
Even if you look back at the history of the fund, in the year 2007, when the markets were racing upwards - the cash levels at Quantum Long Term Equity Fund (QLTEF) was around 15-20%. Thus the fund was poised to take advantage of the dive in markets in late 2008 due to the Lehman crisis. Cash levels of QLTEF were at all-time lows at that point in 2008 as most stocks then came into the 'buy' limit of the fund. Since then, till now, the fund manager has continued to manage the scheme prudently.
The stock market is cyclical and since the formation of the new government at the center, it has been hitting new highs almost every week regardless of the fact that the fundamentals are not backing it. Hence the cash levels of QLTEF are high, yet again.
Our philosophy of thinking long term, being value investors, and our stance towards choosing the stocks that are the best for the portfolio while also not taking extreme risks will not change. So if markets continue their upward trajectory it is likely that we will continue to sit on high levels of cash.
So we take this opportunity to thank you yet again for your trust and continued faith in the Quantum philosophy and request you to be patient with us as we wait for the right opportunity to re-enter the market at the right time, and continue delivering the returns you have come to expect from us.
The link to the original write up is here
It is said that, sitting on cash in not always the best strategy in equity markets. Such a move could easily backfire in surging market conditions. With high valuations it makes sense to wait rather than risk investors’ money at this time says Quantum.
With markets regularly hitting new highs and then falling suddenly before rising yet again; the AMC feels that it makes sense to wait. We believe in the long term outlook either for a particular stock, or for the Indian economy as a whole."The AMC is clear that they are not worried about short-term under performance if it has potential to generate risk-adjusted returns in the long term.
Currently the cash holding for Quantum Long Term Equity Fund is around 30 per cent and it’s the highest since the launch of the fund. Since elections results have been declared last May, markets have soared sharply with little fundamental changes like increased corporate spending etc. to back this jump. Hence, we have lightened our exposure to sectors like industrials, capital goods and financials, only because we are not comfortable with current valuations.
Cash is residual after investing in stocks
For us, cash is residual after investing in stocks. We follow the bottom up stock selection process, where we identify stocks and build a portfolio. Our research team and the Fund Management team set the buy and sell limit of the stocks. We generally buy a new stock at the pre-determined Buy price (or below) and generally sell an existing stock at the pre-determined Sell price or above.
The Past explains
Even if you look back at the history of the fund, in the year 2007, when the markets were racing upwards - the cash levels at Quantum Long Term Equity Fund (QLTEF) was around 15-20%. Thus the fund was poised to take advantage of the dive in markets in late 2008 due to the Lehman crisis. Cash levels of QLTEF were at all-time lows at that point in 2008 as most stocks then came into the 'buy' limit of the fund. Since then, till now, the fund manager has continued to manage the scheme prudently.
The stock market is cyclical and since the formation of the new government at the center, it has been hitting new highs almost every week regardless of the fact that the fundamentals are not backing it. Hence the cash levels of QLTEF are high, yet again.
Our philosophy of thinking long term, being value investors, and our stance towards choosing the stocks that are the best for the portfolio while also not taking extreme risks will not change. So if markets continue their upward trajectory it is likely that we will continue to sit on high levels of cash.
So we take this opportunity to thank you yet again for your trust and continued faith in the Quantum philosophy and request you to be patient with us as we wait for the right opportunity to re-enter the market at the right time, and continue delivering the returns you have come to expect from us.
Tuesday, March 17, 2015
Tuesday, March 3, 2015
Budget 2015: Exemptions available to individual tax payers
Budget
2015: Exemptions available to individual tax payers
I
have compiled a summary of exemptions now available for tax payers in this
table and hope it is useful.These are based on my understanding and for informative purposes. For filing your returns, please take the assistance of your tax consultant.
Section
|
Amount in Rs.
|
Details
|
80CCC
|
150000.00
|
PPF, EPF, Mutual Fund ELSS,
Insurance Premium, NSC, Senior Citizen Savings Scheme, 5 yr. PO and Bank Deposits,
NPS contributions, any notified pension scheme, Deposits in Sukanya Samriddhi
Yojana for girl child, Repayment of home loan; tuition fees of children. In addition to this
deduction of 150000.00 there is further deduction allowed now u/s 80CCD….see
below
|
80CCD
|
Additional 50000.00
|
Contribution
towards a notified pension scheme subject to 10% of salary + 50000.00. Total
deduction under 80CCC and 80CCD should not be > 200000.00 That is you can
use 150000.00 deduction in the above 80CCC schemes and additional amount in a
pension scheme notified by the Government
|
80CCG
|
25000.00
|
50%
of investment subject to a maximum of Rs. 25000 in ESS of Mutual Fund or in
equity(earlier called RGESS )
|
80D
|
25000.00 (30000.00 for
senior citizens) + 5000.00
|
Payment
towards mediclaim premium. In addition Rs. 5000.00 additional deduction
allowed for amount paid towards preventive health check-ups
|
80DD
|
75000.00
|
Deduction
for medical expenses on a dependant who has 40% disability. If disability is
80%, an amount of Rs 125000.00 is deductible
|
80DDB
|
40000.00
|
Deduction
allowed towards treatment of a critical ailment. The amount is 60000.00 for a
senior citizen (60 yrs.) and Rs 80000.00 for a senior citizen above 80 yrs.
|
80G
|
50%
of donation paid to a charitable trust can be deducted from income
|
|
80GGC
|
Any
amount paid to an electoral trust of political party
|
|
80GG
|
24000.00
|
Rent
paid on accommodation – upto a maximum
of 25000.00 p.a or 25% of income provided one does have any other HRA or own
a residence
|
24B
|
200000.00
|
The
interest component of home loans is allowed as deduction under Section 24 B
for up to Rs. 2 lakh in case of a self-occupied house. Was earlier 150000.00
|
80E
|
Deduction
allowed for interest paid towards education loan for higher studies. Maximum
period of deduction is 8 years or till loan is repaid
|
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