FLAME Newsletter - June 05, 2013


QUOTE OF THE WEEK:

“Whenever there is selling, there will be some mis-selling. We need to have adequate guidelines on what construes mis-selling. In banking, the only thing that can be mis-sold is a loan. If banks mis-sell a loan, only they stand to suffer” — KC Chakrabarty, RBI Deputy Governor

YOUR FINANCE DEMYSTIFIED:

What purposes do mutual fund benchmark serve? 

While investing in mutual funds, 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. Benchmark basically indicates what the fund has earned against what it should have earned. One can say that the benchmark’s returns are the MF schemes target and the scheme is expected to have done well if it manages to beat its benchmark… Read more

Tax checklist for your MF investments

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

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

 

DID YOU KNOW?

Want to gift MF units to minors? Things to note

Investments in mutual funds can be made on behalf of a minor by parents (natural guardians) or court-appointed guardians. The minor has to be the first and sole holder in an account (folio)… Read more

TERM OF THE WEEK

What are contra funds?

As the name suggests, contra funds take a ‘contrarian’ view on equities. Generally speaking, a contra fund is just another type of an equity mutual fund that has a contrarian view to investment which is supposed to be the opposite of the view that regular mutual funds’ take… Read more

IN THE NEWS THIS WEEK

Offer for sale: Should retail investors rush in?

2 million UK consumers approach ombudsman last year

Insurers to maintain policyholders’ records for 5 years: IRDA

April PMS AUMs rise Rs. 6.11 trillion MoM

MFs offload equity worth Rs14.23bn in April 2013

MF AUMs up 17.7% MoM to Rs8.25 trillion in April

MFs report net inflow of Rs1.06 trillion in April 2013

ABOUT FLAME

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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