FLAME Newsletter - February 27, 2013


“Tax laws in India are becoming more and more complex. India is a factory of income tax disputes. More than 50% of tax cases world over are from India” — TP Ostwal, Partner, TP Ostwal & Associates


Should you invest in tax free bonds?

Tax free bonds are back in vogue. Many public sector companies have launched their tradable tax free bonds recently, while a number of PSUs are likely to launch tax free bonds soon. Power sector lender Rural Electrification Corporation (REC), Power Finance Corporation (PFC) and India Infrastructure Finance Company Ltd (IIFCL) launched tax free bonds in December 2012.

Bond is a debt investment in which an investor loans money to a corporate or government organisation that borrows the funds for a defined period of time at a fixed interest rate. The major difference is that the principal amount in bonds is not guaranteed, except at the time of maturity. If you sell the bond before maturity, you may get an amount less or more than the investment amount… Read more

Difference between stocks and bonds

Gold savings funds vs gold ETFs

You may have been hearing all around that people are investing in gold and are advising you to do so too. However, buying physical gold is not the only option. Let us explore a gold savings fund and gold ETF and get acquainted with their features and differences. You can then gauge what would be a better investment option for you.

The main advantage about a gold savings fund is that you can invest in it even if you do not hold a dematerialized (demat) account. You can even start a systematic investment plan (SIP) with respect to this fund without a demat account. Through an SIP, one invests a fixed amount at regular intervals, generally every month, into the fund. However, a demat account is not required if one wishes to invest in a gold ETF… Read more  

Tax provisions for investment in mutual funds

What does your MF account statement include?

When we receive our mutual fund account statement, most of us hardly understand anything about the statement. We just briefly go through it and keep it aside on our table or store it in one of our folders. Some of us check if our names are mentioned clearly on the account statement. This is the maximum which we do while reading the statement. The MF statement includes terms like NAV (net asset value), load, folio number, etc. We hardly bother to verify these details… Read more

What is mutual fund benchmark & its importance

All mutual funds are not alike


“There is nothing wrong with financial advisers doing non-FA activities and some, arguably, may be synergistic to financial advising.  But there are 3 risks we should be mindful of: conflict of interest, tarnishing the image of the industry, and dilution of focus”

Lee Chuan Teck, Assistant Managing Director, Monetary Authority of Singapore

“The regulatory decisions that are aimed at protecting the interests of policyholders, though painful in the short-run, would certainly be beneficial to all stakeholders in the long run”

J Hari Narayan, Former IRDA Chairman


What are debt & liquid funds?

Debt funds: A basket of investments such as a mutual fund or an exchange-traded fund, in which the main holdings are fixed income investments are called debt funds. This type of fund may invest in short-term or long-term bonds and debentures, money market instruments or floating rate debt… Read more


Alpha: A risk adjusted measure of investment performance. Alpha measures the excess of return over the level of risk borne.


EPFO books show negative balance of Rs. 13.36 billion: CAG

SEBI opens local office in Hyderabad

PF subscribers to get 8.5% interest rate for FY13

6% commission for RGESS agents is not extraordinary: AMFI

IRDA’s mortality table to lower life insurance premium

IRDA issues guidelines to standardise health insurance


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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