Union Bank of India (UBI) with its 2,650 branches & 1,950 ATMs across India very soon make a official entry into the mutual fund business by December 2009.
The bank had already received approval from Reserve Bank of India and was awaiting nod from SEBI, Union Bank of India Chairman and Managing Director M V Nair said.
Union Bank of India ‘s vision was to achieve Most Preferred Bank status by 2012.
Are you looking for a new pension system ? Your wait is over ! The Pension Fund Regulatory and Development Authority (PFRDA) recently announced a New Pension Scheme (NPS) that allows anybody, irrespective of their employer, to start an NPS account and save up for pension.If this scheme is launched as schdule on May 1 then any Indian citizen will be able to join NPS with a minimum investment of Rs 6,000 annually.
Even Union government employees who joined service after January 2004 can be part of the scheme.
New Pension System (NPS)
Investment categories: PFRDA is offering only three fund options under the scheme:
Equity (E)
Growth(G)
Conservative(C).
The equity fund is an index fund that will invest in the stocks of the Nifty-50 index. Index funds are passively managed funds that reflect the portfolio and movement of their benchmark index.
Growth fund will predominantly invest in government of India bonds.
conservative funds will invest in debt securities and corporate bonds.
You get a fourth option as well. In default, according to PFRDA’s suggestion, 60% can be invested in equity, 30% in conservative and the rest in growth till the age of 35. When you reach 60, the portfolio won’t have any equity exposure, 80% will be allocated to growth and 20% to conservative fund options.
Rate of return: None of the options guarantee a return. Gaurav Mashruwala, a Mumbai-based financial planner, says: “One can expect 15-17% annualized return from equity over a period of 7-10 years, 6-8% from growth and higher return than G-secs (government securities) in (the) conservative option.”
Charges: There are four kinds of charges under NPS—fund management charges (0.009%), central record-keeping charges (Rs380 as annual maintenance fee per subscriber and Rs6 for every transaction), point of presence charge (Rs40 as registration fees) and custodian charges (0.007%). PFRDA officials say the total cost would not exceed 15-20 basis points. In other words, only 15-20 paise per Rs100 will go as charges.
Tax implication: NPS is currently EET (exempt, exempt, taxed). This means the money is tax-free during the savings and accumulation stage, but taxable when withdrawn.
How to join: PFRDA has appointed 23 entities as point of presence for registration, including State Bank of India (SBI) and Life Insurance Corporation of India (LIC). (source – livemint.com)
Bharti AXA Mutual fund launched daily systematic transfer plan (DSTP), after its previous launch of daily systematic investment plan in Nov 2008.
Under DSTP plan, you can invest a minimum of Rs. 10,000 and in multiples of Re. 1 thereafter in Bharti AXA liquid fund/ Bharti AXA Treasury Advantage fund.
From that bulk money parked in liquid fund, an allocated amount, (as per the wish of investor) will be transferred to Bharti AXA Equity Fund.
For DSTP, Bharti AXA has tied up with a number of banks through which amount will be auto-debited from investors’ account on daily basis. Those banks are HDFC, Kotak Mahindra, BoB, Axis Bank, ICICI, IDBI, SBI, Standard Chartered etc. An investor can invest in the plan only in three denominations – Rs.300 or 400 or Rs.500.
Going forward, we will make this plan available with our ELSS scheme,” said Vikaas Sachdeva, country head – business development, Bharti AXA Investment Managers.
Added Sachdeva, “We will promote this plan using all our 57 branches across the country; we are tying up with national distributors, banks and independent individual advisors for aggressive promotion of this plan.”
There is no entry load if an investor opts for this plan. But it carries an exit load of 3.5 % if redeemed within 1 year; 2.5% if redeemed after 1 year but within 3 years.
Kolkata based real estate developer Ambuja Realty launched three new real estate projects in West Bengal.
It includes a 150-room hotel, a mall and an IT park (ecospace) at Rajarhat.
“We will invest Rs.250 crore (Rs.2.5 billion) for building the hotel and the mall, and Rs.300 crore (Rs.3 billion) for Ecospace,” Ambuja Realty chairman Harshavardhan Neotia said.
“All these projects will be ready in another four to five months,” Neotia said.
ASK investment Holdings a private equity firm has launched its Rs 500 crore real estate fund in the Indian market . This fund will focus on the seven emerging cities in the country. Ask is looking to invest mainly in the residential market with a focus on 200 fundamentally strong real estate developers.
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