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Community User Posted on 11:54am 22-Feb-2021

For retired person whether PPF is better or mutual fund? pl. advise.

Personal Finance

Community User Posted on 03:01pm 11-May-2020

About Sovereign Gold Bonds SGB by Reserve Bank of India RBI which is currently available

Comments

ICICIdirect Executive Thank you for the query. We would like to inform you that Sovereign Gold Bonds (SGBs) 2020-21 Series II is open for subscription from today, Monday, May 11, 2020, to May 15, 2020.

Issue Price: Nominal value of the Bonds shall be fixed in Indian Rupees on the basis of a simple average of the closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the last three business days of the week preceding the subscription period. The issue price of the Gold Bonds will be Rs. 50 per gram less than the nominal value to those investors applying online and the payment against the application is paid through digital mode.

The Issue price for the current tranche is Rs. 4590/gm – Rs. 50/gm = Rs. 4540/gm

Maturity: 8 years with exit option from 5th year to be exercised on the interest payment dates. These bonds shall be traded on exchanges.

Subscription limits: Minimum 1 grams of gold, Maximum- 4000 grams (4kgs) of gold per person in a fiscal year (April- March). Available in units of one gram of gold & multiples thereof.

Taxation: Capital gain tax arising on redemption of SGBs to an individual has been exempted.

If sold in secondary market before maturity, capital gains will taxed @ of 20% with indexation if sold on or after 3 years and would be subject to marginal tax rate if sold before 3 year.

Interest: 2.50% fixed per annum payable semi-annually

To subscribe to Sovereign Gold Bond, follow the below steps:

Log into your account > Trade & Invest > IPO/FPO/BUYBACK > (scroll down) FD/BONDS PLACE ORDER > Click on Apply from the Action column against the Sovereign Gold Bond.

Product note, Terms & Condition of the issue can be viewed from the same section.
03:24pm 11-May-2020

Personal Finance

Community User Posted on 10:54am 17-Feb-2020

When is the next window for buying Gold Bonds?

Comments

Personal Finance

Community User Posted on 10:19am 12-Feb-2020

Where do you think interest rates will be one year from now?

Comments

Community User 6-7%

04:50pm 12-Feb-2020
Community User When you say Interest rate - there are two
Interest rate for loans and interest rate for deposit holders.
These are y personal opinion.
Interest rate on loan - will be reduced as Government and RBI are hell bent on reduction of lending rate. Their main aim is to reduce the interest burden so that the individual will have more money which in turn will increase consumption. The recent RBI tweeks is one of its kind where they did not reduce the benchmark rate but did few things which has reduced the cost of borrowing money for banks. This eventually will reduce the interest rate on loans. The rate of reduction no one can predict but it is on the down turn.
Interest rate on Deposits - When a bank is able to get money for lending from RBI at 5.20% for three years, then the deposits rate need to come down. As most of indians save in the form of deposits, a marginal reduction will definitely improve the margins of banks. Hence I do feel that the deposits will also reduce. Banks have already reduced the rate to its rock bottom of 6%.
11:41am 13-Feb-2020

Personal Finance

Community User Posted on 12:32pm 03-Dec-2019

I have a ULIP plan taken since a year.

As the plan has an option of 4 switchings of funds in a year, can you guide me as to what factors should be looked out while switching funds?

Comments

ICICIdirect Research Our financial planners are of the view that the option of switching funds highlights an important feature of ULIPs as an investment product. Policyholders have the flexibility to move from underperforming funds/assets to outperforming funds/assets. However as exciting, it may sound, it is very difficult to time the perfect entry and exit. Ill-timed switches can significantly deteriorate the long term performance of your ULIP. 4 free switches in a year do not mean you have to act on it necessarily.

The best way to take advantage of this feature is to follow asset allocation and rebalancing. Based on your present & future financial responsibilities, you arrive at an allocation for yourself – say 50% in pure equity & 50% in pure debt. Your premiums are invested in the funds based on the above asset allocation decision. When there is a major deviation e.g. equity allocation rising from 50% to 58% due to sudden rise in markets, it is prudent to switch the gains to debt part of the portfolio and bring the allocation back to 50-50. Similarly, when equities deliver negative returns, you can switch from debt to equity to average out your purchase at lower levels. You can decide on a threshold, say deviation of more than 5% (in any or both asset) from the existing allocation, to act on rebalancing. As you near your goals you should ensure a major part of the portfolio is in a steady asset class like Debt, rather than exposed to Equity. Over a long time horizon, disciplined rebalancing will help smooth out the portfolio volatility and generate decent risk-adjusted returns.
01:28pm 03-Dec-2019
Community User I am not an expert in ULIP but I thought I should reply to one part of the query. Just because you have 4 options to switch, you need not do the switch if the fund is performing fine. Also you need to give sufficient time to assess if the fund is doing fine or not. In just one year you cannot judge if the fund is doing right or wrong. The more basic question you need to ask is if you did not understand the product and seeking advise now after one year what to do, why did you buy this product in the first place .
All banks irrespective of public or private, are in the process of shoving ULIP on to customer. I met 4 bankers two weeks back and all wanted me to buy ULIP. They dont give a damn about their banking business...
11:05am 08-Dec-2019
Community User Any investment needs to have a goal, right? If yours is a short term goal 5 years keep afloat with a balanced fund so that the invested capital is safe and returns are nominal.
If you have a long term view say 10 or 15 years, try an aggressive hybrid or a pure equity fund based on your penchant for risk. Cheers and Good Luck!
General trend is volatile periods like December when FIIs take out a chunk of their money move to a balanced fund. Similarly when budget effects come to play in Jan or Feb move back to equity fund.
11:20am 16-Dec-2019

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Community User Posted on 11:54am 22-Feb-2021

For retired person whether PPF is better or mutual fund? pl. advise.

Community User Posted on 03:01pm 11-May-2020

About Sovereign Gold Bonds SGB by Reserve Bank of India RBI which is currently available

Community User Posted on 10:54am 17-Feb-2020

When is the next window for buying Gold Bonds?

Community User Posted on 10:19am 12-Feb-2020

Where do you think interest rates will be one year from now?

Community User Posted on 12:32pm 03-Dec-2019

I have a ULIP plan taken since a year.

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Community User Posted on 11:54am 22-Feb-2021

For retired person whether PPF is better or mutual fund? pl. advise.

Community User Posted on 03:01pm 11-May-2020

About Sovereign Gold Bonds SGB by Reserve Bank of India RBI which is currently available

Community User Posted on 10:54am 17-Feb-2020

When is the next window for buying Gold Bonds?

Community User Posted on 10:19am 12-Feb-2020

Where do you think interest rates will be one year from now?

Community User Posted on 12:32pm 03-Dec-2019

I have a ULIP plan taken since a year.

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