FLAME Newsletter - July 31, 2013


“When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying a store down the street” - Warren Buffett


What is mutual fund benchmark & its importance
While investing in mutual funds or any other financial products, we seek opinion from our relatives or friends and then invest. Hardly do we understand the importance of making informed decisions. Most of us do not understand the significance of using a benchmark for the purpose of effective comparison. Capital market regulator SEBI (Securities and Exchange Board of India) has made it mandatory for fund houses to declare a benchmark index... Read more

What does your MF account statement include?

Tax provisions for investment in mutual funds
Our investment decisions are guided not only by the benefits which a particular financial product offers, but also by the current tax provisions that the instrument is subject to. Like any other financial product, there are tax implications of investing in mutual fund schemes too. Various types of mutual fund schemes are subject to different tax provisions. The tenure of investment is also an important factor when deciding upon one’s tax liability. Therefore, we must have a proper understanding of the relevant tax provisions, to help us plan our investments in a better manner... Read more

Understanding the basics of mutual fund deadlines
Before an asset management company (AMC) launches a scheme, it has to file a draft offer document with market regulator SEBI (Securities and Exchange Board of India) and get its approval.

The draft offer document is available on the SEBI website for public comments for 21 days from the filing of the document with SEBI. The regulator may specifies changes, if any, in the draft offer document and the AMC or the lead merchant banker shall carry out such changes in the draft offer document before filing the offer document with ROC (Registrars of Companies) / stock exchanges... Read more


What are 'block deals' and 'bulk deals'?
Block deal is a trade, with a minimum quantity of 5 lakh shares or minimum value of Rs. 5 crore, executed through a single transaction, on the special "Block Deal window". The window is opened for only 35 minutes in the morning trading hours... Read more


Addendum: An addendum, in general, is an addition required to be made to a document subsequent to its publication. An AMC issues an addendum whenever there are any changes in the offer document. For instance an addendum may include any change in the scheme’s objective, fund manager, benchmark, etc... Read more


Pvt life insurers report 1.5% decline in new premiumsI

nsurers likely to invest in proposed ETF

Direct plans now constitute 25% of mutual fund AUM: CRISIL

Share of money market funds highest in direct plans AUM

SEBI tightens disclosure rules for hedge funds


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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