Liquid Funds

August 20, 2010

Please pardon my ignorance, but I have a very basic question regarding “Liquid” funds.
I am planning to park my lumpsum money in liquid funds and initiate STP to diversified equity funds of the same fund house.
This was actually discussed in this messageboard about one month back. My question is: do I need to park my money in only those funds which have the word “Liquid” in the name? I know this sounds silly, but just wanted to confirm if the term “Liquid” (when used in a fund name) has some special meaning? e.g. consider the following 2 options where I want to STP to Birla Sunlife Frontline Equity.1. Birla SL Dynamic Bond -RP (G) –> STP to –> Frontline Equity
2. Birla SL Liquid Plus – RP (G) –> STP to –> Frontline Equity

Now, the first option seems to be a better option to me as it has given 11% return in last 1 year. So can I go ahead with this?
Or do I have to choose the 2nd option only because the name suggests it’s a “Liquid” fund?

FYI, exit loads are as below:
Birla SL Dynamic Bond (0.20% if the investment is redeemed within 30 days months from the date of allotment.)
Birla SL Liquid Plus (0.25% for redemption /switch out of units within 1 month from the date of allotment)

Again, that means I cannot start STP from Birla SL Liquid Plus before 1 month, correct me if I am wrong.

Dear, Plz. note –

Birla Dynamic bond fund is a bond fund, that’s why its performance in terms of returns is better than liq. + fund. As it is a bond fund, exit load is there.
Birla SL Liq. + fund don’t have any exit load. I personally check from birla web site for the same. In fact no liq. + fund has exit load.

If u opt Dynamic bond fund for higher returns, even in this case Exit load don’t seems much as u ‘ll transfer 1K per week only. So u ‘ll pay exit load for 4 weeks only. So for a weekly STP of 1K, ur total exit load for 4K Rs. ‘ll be 8 Rs. (0.2% of redeemed amount) only.

One plain advise, to avoid entry load on Target Eq. fund (Birla Frontline in this case), invest under direct mode only.

Regarding the use of word, liquid + , is not at all necessary, some AMCs use other words like Cash plus, Cash management

Ashal …

ICICI Pru Life’s Online Term Cover – I Protect

August 18, 2010


Dear friends, Earlier it was Aegon Religare’s I- Term, the lone player in online Term cover Market but now it has a companion from the big daddy of private life insurers in India – ICICI PRU Life. The product is named as I-Protect.

Product at a glance –

Minimum /Maximum Age at entry – 20 / 65 years

Policy Term – 10, 15, 20, 25, 30 years

Maximum age at policy expiry – 75 Years (Age completed Birthday)

Minimum Premium – 2000 Rs. (Excluding Service Tax & Education cess)

Accidental Death Benefit (Available with IProtectOption II only) – Equal to basic sum assured with maximum limit to 50L

Premium Payment term – Regular pay

Mode of Premimum Payment – Yearly only

Tax benefit – Prem. paid is eligible for Tax benefit under Section 80C of Indian Income Tax Act, 1961

Available Options – Option I Basic Life cover, Option II Basic Life Cover With Accident Death Benefit Rider

Death benefit – Option I – Basic Life Cover

Option II – Basic Life Cover + Accident Rider Sum  Assured equal to Basic Sum assured or 50L whichever is lower

Instant Life Cover – Policy ‘ll be issued immediately after realization of the prem. amount by the Ins. Co. for Non Medical Cases.

Maturity Benefit – Being a pure Vanilla Term Cover, there is no maturity benefit.

Offline Purchase – Yes allowed with a slightly higher prem. (To include the commission of Agent/Broker)

My take – I-Protect is a real competitor for Aegon Religare’s I-Term. Actually it’s better than I-Term. How here it goes –

Max. Term – 30Y in I-Protect for 25Y in I- Term

Accident Rider – Yes for I-Protect no for I- Term

Offline Purchase – Yes for I-Protect no for I-Term

Maturity Age – 75Y for I-Protect  where as it’s 65Y for I-Term

The major plus point with I-Protect, ICICI Pru Life has offices, agents, brokers, bankassurance channels in every nook & corner of India, Hence purchasing the cover online of offline is very easy as compare to Aegon Religare’s limited presence.

In my view, if you are planning to purchase your first Term cover or want to increase one, go for this one.

For More info about the product click here.



How to clear name in CIBIL Report?

August 16, 2010


My name is Ritesh kumar and I requested for my CIBIL repot which I get and I found a “Written OFF” from Standard Charted Bank Credit Card for the amount of Rs 994/-.
From 2005 to 2006 I was using a SCB Manhattan Credit card then I stop using the Card around 2006 last Q, but I continually receiving statement from the bank and every time there are some charge add and till Feb. 2006 the amount where gone up to 3000/- then I write a mail to SCB customer care and get all the settlement (I have a mail from the bank). But my card was not officially close, but also, I never use that card again.
So can you please advice me what should I do now, I wanted to remove “Written OFF” from the CIBIL for me.
Please help

Ritesh Kumar

Dear Ritesh, You have following options.

1. Based upon your settlement of dues done in 2006, write to your Credit Card provider (SCB) & ask to remove your name for Written off from Cibil Report.

2. Wait for the 1 above to happen for at least 1 month or so. If nothing is happening, contact Banking Ombudsman in your area. Click here for more details on Banking ombudsman.

3. Based upon your settlement of dues done in 2006, you may apply for loan (CAR, Home or Personal). With your application attach the copy of settlement documents.



Life Cover may got cheaper

August 16, 2010

Dear Friends, Please check the link below.