The new gold fund in fund India is known as RGSF that opened a new array of investments in gold as a category of asset. The fund conceives to offer returns that correspond to returns offered by the Reliance Gold Exchange and the Traded Fund and it in flip allow investing in tangible gold. It allows you to collect gold returns in the paper form without the requirements of any kind of demat account.

The advantages of investing in the RGSF:

• It is an open door and convenient opportunity for investors to invest in physical gold across the border without any stipulation of having a demat account.
• It offers you a systematic investment plan that is basically a long term technique of investment according to which you have to pay a fixed amount of money on monthly or quarterly premises at prevailing NAV in a program. This will enable you to save a regular amount of money from your earnings.
• This investment technique is allowing you to save a small but regular amount of money from your earnings.
• This also results in the reduction of per unit average cost, few units at increasing market and more units at the time of decreasing.
• It eliminates the tension of making a selection for appropriate time for buying and selling which makes it less risky and time saving.
• You will realize added on facilities frequently such as Systematic transfer set up/ systematic plan for withdrawal/ investment/auto-switch and triggering facilities etc.
• It has very high liquidity that an investor of this fund can redeem and subscribe any time within business days from AMC whereas in case of selling and purchasing of gold ETFs the liquidity factor is on Exchange.
• RGSF permits its customer with the ease of investment that investors can directly subscribe via physical mode throughout the world.
• For investment in gold via RGSF, there is no need to have demat account which makes it cost effective by eliminating various sorts of charges and transaction fees.
• Along with the scheme recurring expenses, investor has additionally borne the underlying expenses of scheme.
• Investment in this gold fund makes you eligible to get access to several tax advantages; in case of paper form investment in gold you will become eligible for one year capital gains tax while in case of the physical gold you will become eligible for three years. The taxation of this fund is similar to that of debt mutual fund investments.

The Yellow metal continues to breach its high (YOY) since 2001 till date.

Why you should invest in the RGSF?

• The fund offers you a convenient and straightforward approach for diversification in a portfolio.
• It enables the investor to increase wealth via regular savings to accumulate gold in a small amount with the help of MICRO Systematic investment set up and systematic investment set up.

By eliminating the stipulation of Demat account it allows investors to invest via online mode or physical applications.

Best Reading:

• Investment In Gold ETF
• Investing In Equities
• Why You Need To Diversify Your Investments?
• Read Before Investing In Mutual Funds

TO invest online in Reliance Gold Saving Fund please visit here

Image Source: reliancemutual.com

Let understand Five areas affected by the rupee value reduction , One thinks about how the value of rupee can directly or indirectly affect something. Here are the five key areas discussed for the possible effect of value depreciation.

1) The basics of rupee value reduction
The first thing that needs the explanation is how the value of the rupee reduces? It involves numerous reasons that are eventually caused by some outside sources while some from inside stimulus. For the last few months, one of the major reasons for the reduction of the value is due to the uncertain political circumstances in the country. The ill condition directly effects of the policy as well as taxation issues. The latest reduction was although the worldwide issue but layer it involves some of the country internal issues as well. Now we will be briefly discussing the other effects of this depreciation.

2) Effect on oil exporters
India hasn’t been been the major oil producer and has been importing it on a large scale. Now each time the oil prices rise in the international market, the Indian government increases the subsidy of oil as well. Now very few people know the fact that Indian is also known as a big exporter of oil that is because of its huge industry of oil refinement. This ultimately helps in controlling the oil prices

3) Effect of Indian funds
Currently there is one fund that is actually having a direct exposure to the assets of the US and over a year the gain percentage is more than the fund underlying percentage. Now the reason this gap is due to the reduction in the value of rupees as the fund  has its assets in the US while the company has assets more worth in rupees. This could not be always the reason, as there are other factors involved as well. This condition is still  has its basis as the falling condition of rupee brings a rise in assets.

4) Effect on exporters
Now one thinks about that how the feeling of rupee gives advantage to the exporter and the answer lies in the fact that it eventually involves the high rise in the rate of conversion. But one can’t ignore the fact if its inequality with other things. The exporters unfortunately have to go through the slower rate of market that reduces their business internationally.

5) Effect on USD borrowed companies
Now there are numerous companies that are bought by USD. Any such reduction in rupee value will ultimately bring bigger bang for such companies. Initially these foreign companies are supposed to pay the less rate of interest and hence this will put their interest rate to zero and has a subsequent effect on loan.

By looking at these five major areas one could analyze the effect of rupee depreciation but it should be kept in mind that these are not the only areas that will be affected by the change but there are other areas as well that has to be kept under consideration.

Best Reading:

• Investment In Gold ETF
• Basic Information About CTC
• Why you must invest in Gold?

Conclusion:
Reduction values of rupees don’t only affect any one term, but, it has many effecting features on several related aspects. We are defining the five among most featured effects of rupees value reduction.  Basically its effects on the economical status of oil exporter, other exporters, and also affects the Indian funds mandatory. It also has major and vital effect on USD borrowed companies.

Rupee made a new record of closing. This new record is 53.9750. This dollar rate has taken the global rate to a peak and increased the future rate cuts expectations. The rupee nearly touched the level of 54 psychologically but was not closed far from December rate 54.30. Standard chartered has also mentioned that the rupee is about to face chopping trading. Rupees may show 2 to 3 percent of weakening aiming the global uncertainty and the current levels. Banks have lowered the medium term rating of rupee from overweight to neutral. As the possibility of sustained flow is lowered by the policy inertia.

High short term rates of foreign exchange must be maintained by the assets of Indian dollar investors, recommended by the banks. It is also an opinion that short term high foreign ratios of exchange hedge must be kept from the investors. The bank is also expecting that the investors will remain at a side until a test is given to the rate of 54.30.

Few reports also mention that the Reserve bank of India has sold dollars with the help of state run banks that is why rupee has approached five month low budgets. Many traders also say that RBI have sold dollar at 53.90 levels. At the 0928 GMT rupee rate to the dollar was 53.80/81.

Related:

• What is Recession
• Strategies during a Recession
• Making Money During A Recession
• Manage Downsizing during a Recession

The rupee has also hit the breach on 4th May and in mid December it went to 54.30. They also said that the Euro was weak enough and was facing low rate in last four months but the oil importers were completely weighing on rupee.

The note on Public Issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds to be issued by “Housing & Urban development Corporation Ltd” (HUDCO).

The Company has filed Draft Shelf Prospectus with SEBI on 11th January 2012. Issue is expected to be launch by end Jan. ie 27th Jan 2012.

We will update you about the exact issue dates and coupon rate once tranche Prospectus is filed.

The issue will be open for NRI investors on repatriable as well as non-repatriable basis.

Being rated AA+ the interest rates,commercials will be better off as compared to IRFC Tax Free Issue which will be open on more or less similar timelines.

Housing and Urban Development Corporation Limited Profile Snippets
Housing and Urban Development Corporation Limited (HUDCO) was established in 1970 as a wholly owned Government company with the objective to provide long term finance and undertake housing and urban infrastructure development programmes. HUDCO’s sustained performance and profitability earned them Mini-Ratna status conferred in FY 05. HUDCO had sanctioned loans of Rs. 37,464 cr for housing and Rs. 84,906 cr for urban infrastructure on a cumulative basis up to Dec 2011.

Salient features of the bond issue

• The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible Debentures and the interest on the Bonds will not form part of the total income.
• In case of over-subscription; allotment shall be on first cum first serve basis up to the date falling 1 day prior to the date of over-subscription and on proportionate basis on the date of over-subscription, in the manner specified in the Tranche Prospectus.
• CARE has assigned a rating of ‘CARE AA+’ to the Bonds. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Fitch has assigned a rating of ‘Fitch AA+ (ind)’ to the Bonds.
• The bonds are secured by way of floating first pari passu charge on the present and future receivables of the company to the extent of amount mobilized under the issue. The security cover will be at least 100% of the outstanding Bonds at any point in time.
• HUDCO shall pay [xx] % p.a. for Tranche 1 Bonds as interest on the Application amount retained.HUDCO shall also pay [xx]% p.a. on refund of application amount. Such interest shall be paid along with the monies liable to be refunded.
• Bonds will be issued in Dematerialised form or physical form as specified by an Applicant in the Application Form. The bonds will be listed on NSE and BSE both and will be available in Demat form facilitating trading of these bonds.
• Investors can pledge or hypothecate these bonds to avail loans.

Financial Summary

Business Overview
The business is broadly classified into the following two business platforms:

• Housing finance:  HUDCO finances dwelling units in the urban and the rural areas. HUDCO has sanctioned Housing Finance of Rs 36,110 cr (30.65% of total financing activities as on March 31, 2011).  
• Urban infrastructure finance:  HUDCO finances projects relating to social infrastructure and area development, water supply, sewerage and drainage, roads and transport, power, emerging sector, commercial infrastructure and others. HUDCO has sanctioned Urban Infrastructure Finance to the tune of Rs 81,691 cr (69.33% of total financing activities as on March 31, 2011).
• In addition, HUDCO also provide consultancy services in the field of urban and regional planning, design and development, environmental engineering, social development, government programmes and others.

Operational and Financial Performance

Strengths

• Strong financial position: HUDCO has been operating its financing business profitably since inception.
• Rich Parentage: Their business is funded through equity from the GoI & market borrowings. Relationship with the GoI provides them access to lower cost funding & enable them to source foreign currency loans.
• Pan-India presence:- HUDCO has extended finance for housing and urban infrastructure projects to customers in 33 states and union territories covering around 1,800 cities and towns.
• Established track record:- HUDCO has 41-years of experience in the housing financing market. As on Dec 31, 2011, the Company had provided finance for over 15 mn dwelling units and over 1,600 urban infrastructure projects in India.
• Wide spectrum of consultancy services:- As part of consultancy services, up to Dec 31 2011, they had appraised 1,236 projects with a project cost of Rs 27,515.34 cr under JNNURM.
• ‘CARE AAA (SO)’ rating for HUDCO’s unsecured bonds: – CARE has assigned a rating of ‘CARE AAA (SO)’ to the unsecured bonds issued by HUDCO aggregating to Rs 1,036.4 cr as on Oct 10, 2011. The rating of ‘CARE AAA (SO)’ was primarily based on credit enhancement in the form of ‘Letter of Comfort’ from the then Ministry of Urban Employment and Poverty Alleviation.
• Loans backed by Govt. guarantees: Most of HUDCO’s loans to various state entities are secured by guarantees from the relevant state governments to repay outstanding debt facilities or mortgage of properties with a minimum security cover of 125% of the total loan amount. Further, loans to entities in the private sector are secured by mortgages of the respective project properties providing a minimum security cover of 150% of the total loan amount, personal guarantees and contributions by promoters, as deemed fit by HUDCO.

Investment Options

*Allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis
 
Tax Benefits

1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;
2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders;
3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.Under section 112 of the I.T. Act, capital gains arising on the transfer of long term capital assets being listed securities are subject to tax at the rate of 20% of capital gains calculated after reducing indexed cost of acquisition or 10% of capital gains without indexation of the cost of acquisition;
4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.

 Financial Summary

Dear All,

Please note that Tree House Education & Accessories Limited IPO  will opens for subscription from Wednesday i.e 10th August, 2011  and  closes on Friday ,12th August, 2011

Tree House Education & Accessories Limited  -Issue Details

Issue Program: -

• Issue Opens on – Wednesday ,  10th August, 2011
• Issue Closes on – Friday, 12th August, 2011

Price Band: –                 Rs. 135/- to Rs. 153/-
 
Retail applicants are eligible for a discount of Rs 6/-.

BID lot:-                          40 Equity Shares & in multiples there of

The economy is one big arena where all commodities depend primarily in the ups and downs of gas or oil prices.  Once gas prices goes up, all the rest of the basic commodities will as well follow its trend.  The same is true if the price of gasoline falls down, the basic products in the market will somehow mark low or bring down its prices.  Meaning to say, gas price dictates the flow of all the rest of other products.

Why do gasoline prices undergo fluctuation?  Well, economists and other monetary and investment experts agree to the following reasons why gas price fluctuates.  First reason is due to the reality of the supply and demand principle.  This economic principle quickly changes the prices of gas and oil.  The second reason why oil or gas prices occur is due to the so-called market speculation or simply put the analysis from the business experts such as the Forex monetary institute on whether the value of a country’s money will be high or low.  Thirdly is the expense or budget needed in bringing forthgasoline from crude oil through the process called refining.

In view of the reality concerning the supply and demand of the gasoline, it is obvious that the effect of which is direct in as much as the price of crude oil is concerned.  It is a fact that every time the supply is high, then it goes without saying that the price of gasoline will eventually be low as a consequence.  On the contrary, if the supply gets low, meaning to see there is not enough oil supply, then the oil price will definitely be quite expensive or the current price will go up, to the great advantage of the businessmen.

What will happen then if gasoline prices will fluctuate? Well the people primarily the consumers will really be hit hard and they too will tighten their belts so as to survive.  We therefore should work hard together so that the prices this most precious commodity will remain stable.

Best Reading:

• How To Save Petrol
• Inflation – How To Minimize Its Impact

As a conclusion, we therefore should do our part in making the oil or gas prices stable so that in the end we will not be able to face the consequences of having a low return of our investment.  This is something difficult and crucial to do simply because of the fact that we are quite preoccupied and busy with a lot of stuff.  We must therefore work hand in hand so as to get the dreams that we aspire for in view of our family and also in view of all our relatives friends and the entire society as well.  Only then can we truly say that as a country we did help each other in putting everything into its proper perspective.  This is one tall order which may not be easy to do alone but in unity we surely will be able to make this a reality.

All of us in one way or the other encountered people offering us to have a credit card.  We have to remember that the credit card could make or break your financial life and put the other aspects of your life into sudden chaos.  If you are smart and cautious in handling it well, then it will bring you a lot of benefits yet, if you are just happy go lucky about it, then it could ruin your life and even bring misery to your family members.

This short list of guidelines will aid you to understand on how you will utilize your credit card so that it will work not for your disadvantage but for your own welfare and benefits:

Advantages of having a credit card:
A credit card can basically do the following:
1. Be very safe from thieves and convenient to carry than cold cash.
2. Give you convenient options regarding payment method on the things you want to buy via the internet or your telephone.
3.  Make you establish a credit history that is excellent
4. Provide you with free use of funds for as long as you always pay your account balances on time and in full.
5.  Let you enjoy with rewards, incentives and other freebies.

Disadvantages of having a credit card:
1. If you won’t pay on time, it will cost you the most compared to other forms of credit such as line credit or personal loan.
2. It will give you more headaches because it will build more than enough debt which you can bear.
3. Destroy your credit record if your payments are delayed.
4.  The terms and conditions are quite unclear or difficult to understand.
5. There are hidden charges.

Best Reading:

• Advantages and Disadvantages of Online Banking
• Get Approved for Credit card

Conclusion:
The most basic and primary advantage of having a credit card is that, it will bring convenience to your financial transactions and buying affairs, but the inadvertent and delayed payments will cause you a lot of headaches and can leave you a lot of debts which is beyond your paying capacity.

The much anticipated guide and instructions regarding lock-in period for Unit Linked Insurance Plans or ULIPs has finally emerged through the decision of IRDA or the Insurance Regulatory and Development Authority.  From the previous three years period, IRDA deemed it appropriate to increase ULIPs lock-in duration up to five years.  This decision finally stopped the disagreement between SEBI’s market regulators and IRDA itself.

The said decision above formalizes the lock-in period for ULIPs to increase to more years from their current 3 years period, making it to 5 years.  This change has to take effect and must be followed from now on since IRDA would like to assure that ULIPs will now be treated not anymore as short term products but as long term policy insurance product.  Except for the pension product, all the rest of the ULIPs will be categorized as yearly or annuity products.  Meaning to say ULIPs now will have a health cover or a mortality cover as a consequence.

If in case there will be an amount to be paid by the policy holder which is considered as any top in the insurance policy, then this top will definitely be regarded as one single premium. This simply means that all top up that the policy holder makes will incur an added insurance cover that will back up the said insurance premium itself.

Moreover, no withdrawals will be allowed when it comes to the pension and annual product.  ULIPs would like to remind its policy holder that those pension annuity products may not necessarily have a life or health cover.  But, these types of insurances must be upgraded or turned into annuity on its maturation.

ULIPs pension annuity offers will have 4.5% yearly minimum rate of investment or will be dependent in view of the suggestion or the regulator.  Regarding ULIPs loans, there will be 40% of the NAV that the policyholders can take as their net loan.  It must however be noted that it should be in the form of an equity oriented ULIP so that it will give the client an equity as high as 60%.

In view of the ULIPs’ charges,the policy holder should be aware foremost in view of some standard and legal charges which include the following: guarantee maturity charge, highest NAV guarantee charge, surrender charges and fund switch charge.  Other insurance companies may even include hidden charges to their plan holders.

Best Reading:

• What is ULIP
• ULIP FAQ’s

In conclusion, this new guide and instructions will take effect starting September 1st, 2010 in order to give the rest of the companies more than enough time to comply with them.

Hello friends, as our previous news mention yesterday NSE, BSE to open trading at 9 a.m. from Dec 18
Now this time change again after today meeting. Now The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have decided to postpone new trading timings to January 4, 2010.
The market closing time would continue to remain unchanged at 3:30 p.m.

Source : BSE News

Friend , this is very important news for Indian reader Rivalry between the two leading bourses came to a head on Wednesday with both the Bombay Stock Exchange and National Stock Exchange, announcing that they would start trading from 9 a.m. from Friday.

Source : BSE

Read: BSE, NSE new trading timings from Jan 4, 2010