MFs -  Bank CDs -FMPs - beat NRE / NRO interest rates

Fixed Maturity Plans [FMPs]  Salient Features

1 Initial investment is made in Indian Rupee  Fixed Maturity Plan of  leading Mutual Funds like Reliance Mutual Fund, ICICI Prudential Mutual Fund,  Birla Mutual Fund, TATA  Mutual Fund, DSP BlackRock Mutual Fund and others.

02 The investment is earmarked ONLY in BANK CDs/FDs.

03 The principal amount and fixed returns are both guaranteed.

04The gains are  taxed after indexation.

05 Annualized yield for NRI investor after tax ranges to 8.5% to 9%.

06 The Principal amount as also gains are fully repatriable.

 

FMP Gains with  Computation Of  Indexation Benefit

 

 

FMP 9%-Dividend

FMP 9%-Growth

Indexation

A

Purchase Price

100

100

100

B

Post Expenses Yield

9.00%

9.00%

9.00%

C

Repurchase Price A=P*(1+R)^T

110.29

110.29

110.29

D

GAIN=C-A

10.29

10.29

10.29

E

INDEXED COST @5%

NA

NA

105.00

F

INDEXED GAIN=C-E

NA

NA

5.29

G

Tax Rate

14.16%

11.33%

22.66%

H

Tax

1.28

1.17

1.20

I

Post Tax Gains

9.01

9.12

9.09

J

Value of Investment

109.01

109.12

109.09

K

Post Tax CAGR

8.76%

8.87%

8.84%

 

Currently no FMP's available.

 

 

Sr.  No.

Scheme Name

Date

 

 

To initiate Mutual Fund Investment & avail our Mutual Fund Portfolio Services, please provide

NAME

E-MAIL

 

 

 

Example For Computation Of  Indexation Benefit @ 9.00%

 

 

 

 

Dividend

Growth

Indexation

Individual & HUF

Corporate

A

Purchase Price

100

100

100

100

B

Post Expenses Yield

9.00%

9.00%

9.00%

9.00%

C

Repurchase Price A=P*(1+R)^T

110.29

110.29

110.29

110.29

D

GAIN=C-A

10.29

10.29

10.29

10.29

E

INDEXED COST @5%

NA

NA

NA

105.00

F

INDEXED GAIN=C-E

NA

NA

NA

5.29

G

Tax Rate

14.16%

22.66%

11.33%

22.66%

H

Tax

1.28

1.90

1.17

1.20

I

Post Tax Gains

9.01

8.39

9.12

9.09

J

Value of Investment

109.01

108.39

109.12

109.09

K

Post Tax CAGR

8.76%

8.15%

8.87%

8.84%

Fixed Maturity Plans (FMPs) BASICS

Safe, predictable and better post-tax returns than bank FDs Rising interest rates not only mean rising EMIs but also offer an opportunity to earn higher returns. Debt schemes are now offering attractive returns with short-term rates in the region of 8-10%. Call money rates have been moving higher to about 7.5-8% due to tight liquidity conditions. With the RBI deciding to raise the cash reserve ratio (CRR), liquidity conditions have worsened. Tightness in the money markets is expected to continue till the end of the current financial year and investors can consider investing in short term options like FMPs or floating rate schemes. Fixed maturity plans, or FMPs as they are popularly called, are close-ended funds with a fixed tenure and invest in a portfolio of debt products whose maturity coincides with the maturity of the product. The primary objective of a FMP is to generate income while protecting the capital by investing in a portfolio of debt and money market securities. The tenure can be of different maturities, ranging from one month to five years. FMPs can be compared to fixed deposits of a bank. While a fixed deposit offers a 'guaranteed' return, returns in FMPs are only 'indicative'. Typically, the fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers before the scheme opens. That way it knows the interest rate it will earn on its investments, providing the 'indicative return' to investors.                                                                                                                                                                         

Benefits of FMPs

FMPs offer many benefits like tax efficiency, fixed tenure and low sensitivity to interest rates. The minimum investment amount is usually Rs 5,000, which a retail investor can easily invest.

Capital protection: FMPs have less risk of capital loss than equity funds due to their investment in debt and money market instruments.

Low interest rate sensitivity: As the securities are held till maturity, FMPs are not affected by interest rate volatility. The actual returns are more or less close to the indicative returns declared at the scheme's launch.

Lower cost: FMPs involve minimum expenditure on fund management, as there is no requirement for a time-to-time review by fund managers to buy/sell the instruments constituting the fund. Since these instruments are held till maturity, there is a cost saving in respect of buying and selling of instruments.

Tax benefits: FMPs score over fixed deposits because of their tax efficiencies both in the short-term as well in the long-term.

 

welcome to  -  INDIA   - the global investment destination  -
Indian Equity Mutual Funds with Midas Touch

Our Objective

:

Wealth creation and value addition to client's investments.

Our Philosophy

:

creation of portfolios optimising by way of  -  minimum risks and maximum returns. 

Our Team 

:

Qualified chartered accountants and mutual fund advisors.

Our Style

:

Simplicity of personalised professional services as reflected in our strategies of  :

●  NO open ended  NFOs  as our research shows initial 3 to 6 months of  investment NFOs languish.

●  NO CHURNING nor profit bookings with every swing of the stock- market.

●  Expertise of FEMA , TAX & MF Planning & portfolio Services from qualified professionals under one umbrella.

●  And ofcourse the real advantage - nrimutualfunds.com  is - being  Independent Financial Advisors [ IFA ] senior executives are constantly available to you, not playing musical chairs - an attrition menace of the Industry. 

Our Services

:

As AMFI registered Corporate Mutual Fund Advisors, our services comprise of  : 

●  Suggesting investment strategy balancing risks and returns suitably for each investor.

●  Provide detailed Asset Allocation Plan [ AAP ] and opting for purchase averaging.

●  Preparation of all necessary applications and other paper work being  dispatched to investor for signatures

●  Maintenance and reporting of portfolio on quarterly basis.

●  Advising profit booking and/or switch from time to time & further reinvestment of sale proceeds on an ongoing basis.

●  Advising tax matters and providing annual statement of Dividend and Gains.

Your Security

    & 

    Convenience

:

 

:

All investments are made in name of the investor- under his own signature & as MF schemes are electronically linked to investor's notified bank account, error free transfers for investment & realization are ensured.

The investor has only to sign the dotted line as completed application forms and necessary paper work is prepared and dispatched by our Office.  

Our Fees

:

 

Our professional expertise and services are offered at no cost. Hence, you have an investment opportunity in Indian mutual funds at 0% entry load, 0% exit load (holding exceeding 1 year) and 0% capital gain tax (holding more than 1 year) and no professional charges whatsoever.

 

MF Equity Schemes & BSE, NSE, FTSE, Dow - 1 / 2 / 3 Years Rolling Performance

 

To initiate Mutual Fund Investment & avail our Mutual Fund Portfolio Services, 
Pl. provide your details at :
nrimf@femaonline.com 

 

Copyright: Keynote Consultancy P. Ltd