Valuation of Shares

• Whether you do simple valuation process or very complicated methods, remember that value is a relative measure. What you’re trying to find is a bargain. Opportunity to buy shares at a bargain generally arises when something is out of favor.
• Always look for moderately undervalued shares rather than trying to find out grossly undervalued shares. If a share is grossly undervalued, it means that there is something terribly wrong with that company.
• You should be able to justify why you bought a share and before buying, make sure you know what would make you sell the stock.
• Never compare your decisions with others. If you are ready to buy a stock at a particular rate for a reason, there’s someone equally ready to sell that stock for some other reason. So, it’s natural; for others to think contrary to your views.

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Interest Rate

Interest Rate in simple words means the cost of borrowing funds. It is the payment we make to the lender for the facility of using his money for our own purpose. Many times our spending decisions are also guided by the interest burden that we would be bearing.

But, more than the returns we should be concentrating on real returns on our savings (real return = interest rate- inflation). Even as consumers, interest rate is an integral part of our spending habit as we borrow from the bank for buying house, cars, house old items etc. For the business community interest rate is also very important as they borrow money from bank for investment activities like capacity expansion, setting up of plants, acquisitions, modernization etc. So interest rates play a critical role in a business’s profitability and hence, on stock prices.

How many of us would invest in stock markets if our bank would pay 12% interest in fixed deposits? Many of us will prefer to deposit money in that bank than invest in stocks (as well as mutual funds). Why? Because, we have the opportunity to earn higher returns at very low risk. As a result, funds move out of stock market affecting the stock markets adversely.

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Franklin Templeton MF declares dividend

Franklin Templeton Mutual Fund has announced dividend under the following schemes. The record date for declaration of dividend is September 27, 2013.

Templeton India Income Fund - Dividend Plan & Direct - Dividend option: Individuals & HUF: 0.13,1 Others: 0.111
Templeton India Income Builder Account - Plan A & B - Quarterly Dividend Option & Plan A - Direct - Quarterly Dividend Option: Individuals & HUF: 0.175, Others: 0.149
Templeton India Income Builder Account - Plan A & B - Half Yearly Dividend Option & Plan A - Direct - Half yearly Dividend Option: Individuals & HUF: 0.306, Others: 0.261
Templeton India Government Securities Fund - Composite Plan - Dividend Plan & Direct - Dividend Option: Individuals & HUF: 0.043, Others: 0.037
Templeton India Government Securities Fund - Long Term Plan - Dividend Plan & Direct - Dividend Option: Individuals & HUF: 0.043, Others: 0.037
Templeton India Government Securities Fund - Treasury Plan - Dividend Plan & Direct - Dividend Option: Individuals & HUF: 0.052, Others: 0.044
Templeton India Short Term Income Plan - Retail Plan - Quarterly Dividend Option & Direct Plan - Quarterly Dividend Option: Individuals & HUF: 17.518, Others: 14.926
Templeton Floating Rate Income Fund - Retail Plan - Dividend Option & Direct -Dividend Option: Individuals & HUF: 0.175, Others: 0.149
Templeton India Low Duration Fund - Retail Plan - Quarterly Dividend Plan & Direct - Quarterly Dividend Option: Individuals & HUF: 0.153, Others: 0.130
FT India Monthly Income Plan-Plan A & B - Quarterly Dividend Option & Plan A - Direct - Quarterly Dividend Option: Individuals & HUF: 0.131, Others: 0.111
FT India Life Stage Fund of Funds - 50s Plus Plan - Dividend Plan & 50s Plus Plan - Direct - dividend Option: Individuals & HUF: 0.131, Others: 0.111
FT India Life Stage Fund of Funds - 50s Plus Floating Rate Plan - Dividend Plan & 50s Plus Floating Rate Plan - Direct - dividend Option: Individuals & HUF: 0.131, Others: 0.111

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Wealth of Beauty

100% FDI in telecom

Government has approved 100 per cent foreign direct investment (FDI) in the telecom sector on August 01, 2013. It has been decided to increase FDI cap in telecom to 100 per cent from 74, up to 49 through automatic route and beyond that FIPB.

The idea behind increasing the FDI limit in the telecom sector is to help the industry get fresh funds to lower financial burden. The moves brings relief for foreign partners in telecom companies as they can have complete ownership of the business. "Foreign investors will no longer need to partner with Indian investors in order to comply with regulatory requirements".
Industry analysts believe 100 percent FDI in the telecom sector can attract investment of USD 10 billion in near to long term.

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Saniya Mirza Video

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Fund to Buy: Birla Sun Life Frontline Equity Fund - Plan A (G)

Investment Objective: An open-ended growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and or sectors as its chosen benchmark index, BSE 200.
Fund Type: Open-Ended
Investment Plan: Growth
Launch date: Aug 30, 2002
Benchmark: S&P BSE 200
Asset Size (Rs cr): 2,935.67 (Dec-31-2012)
Minimum Investment: Rs.5000
Fund Manager: Mahesh Patil
Exit Load: 1.00%
Load Comments: Exit Load of 1% if redeemed within 365 Days from the date of allotment.
Website: http://www.birlasunlife.com

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Property Rate in Mumbai 2013

Central Suburbs     Capital Values Rate/Sq ft (INR)
Ambernath               2500 - 3800
Badlapur                  2300 - 2600
Bhandup                  8000 - 9500
Byculla                    12000 - 22000
Chembur                 9500 - 15000
Dadar                      20000 - 31000
Dombivali                3500 - 5000
Ghatkopar East       8500 - 18000
Ghatkopar West     8500 - 13000
Kalyan                   3500 - 4500
Kanjurmarg            8500 - 10500
Kings Circle           10000 - 17000
Kurla                     8500 - 14000
Mulund                  8000 - 10000
Powai                    9000 - 15000
Sion                       11000 - 25000
Thane                    6000 - 8700
Vikhroli                 8500 - 12000
Wadala                 8500 - 15300
Navi Mumbai
Airoli                    6500 - 7200
CBD Belapur       5500 - 8000
Kalamboli            3500 - 4600
Kharghar             4500 - 7500
Kopar Khairane   6000 - 7500
Nerul                   6000 - 10500
Panvel                 3300 - 6500
Sanpada              7000 - 9500
Vashi                   7000 - 10000
South Mumbai
Altamount Road   45000 - 72000
Bombay Central   20500 - 32000
Churchgate          26500 - 44000
Colaba                32000 - 48000
Cuffe Parade       35000 - 71000
Kemps Corner    36000 - 58000
Lower Parel        21000 - 38000
Mahalaxmi          21000 - 42000
Malabar Hills      45000 - 76000
Marine Drive      25000 - 40000
Nariman Point    58000 - 92000
Nepeansea Rd   47000 - 74000
Peddar Road     32000 - 56000
Prabhadevi        22000 - 45000
Shivaji Park       18000 - 30000
Walkeshwar      38000 - 70000
Warden Road    35000 - 60000
Worli                 25000 - 48000
Western Mumbai
Andheri East     12000 - 15000
Andheri West    13000 - 17000
Bandra East      17000 - 27000
Bandra West     26000 - 42000
Borivali East      9000 - 12000
Borivali West     9500 - 13500
Goregoan East   10000 - 12000
Goregoan West  11000 - 12500
Kandivali East    9000 - 12000
Kandivali West   9700 - 14000
Khar East          14000 - 20000
Khar West        22000 - 31000
Malad East       8000 - 12000
Malad West      9000 - 13000
MiraRoad Est   4500 - 5500
Naigon East     3000 - 3500
Santacruz East  14500 - 21000
Santacruz West 16000 - 22000
Vasai                 3300 - 3700
Vile Parle East   16000 - 21000
Vile Parle West  19000 - 23000
Virar                  3500 - 4500

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Income Tax Slab for year 2013-14

This is an easy to use table of the latest income tax slab rate for individuals for year 2013-2014. It is per union budget 2013-2014 presented on 28 February 2013.

India Income tax slabs 2013-2014 for General tax payers and Women

Income tax slab (in Rs.)	Tax
0 to 2,00,000	No tax
2,00,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2013-2014 for Senior citizens (Aged 60 years but less than 80 years)

Income tax slab (in Rs.)	Tax
0 to 2,50,000	No tax
2,50,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2013-2014 for very senior citizens (Aged 80 and above)

Income tax slab (in Rs.)	Tax
0 to 5,00,000	No tax
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

- In addition an rebate of Rs 2000 will be available for income less than Rs 5 lakhs.
- Income above 1 crore to attract 10% tax surcharge.

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Section 80c of Income Tax

Section 80C of the Income Tax Act allows certain investments and expenditure to be deducted from total income up to the maximum of Rs 1,00,000.

• Contribution to approved superannuation fund/public provident fund/recognized provident fund/statutory provident fund. Provident fund contribution should not exceed 1/5th of salary & public provident fund.
• Payment of life insurance premium. It is allowed on premium paid on self, spouse and children even if they are not dependent on father or mother subject to a maximum of 20% of sum assured.
• Payment in respect of non-commutable deferred annuity.
• Unit linked Insurance policy of UTI/LIC.
• Subscriptions to National Savings Certificates VIII issues.
• Deposits with National Housing Bank.
• Principal part of loan taken for acquiring Residential House Property; provided that the house should not be transferred within 5 years. Loan for land cost for residential house is also qualified.
• Subscriptions to schemes of PSU's providing long term finance for housing, or of housing boards constituted in India for infrastructural development of cities/towns.
• Notified annuity plan of LIC or of any other approved insurer.
• Units of Mutual Fund or UTI.
• Notified pension fund by UTI or approved mutual fund.
• Tuition fees (not including donation or development fees) towards full-time education including play-school activities, pre-nursery & nursery classes, of any 2 children of an individual, paid to University, College or School in India.
• Investments in shares or debentures with a lock-in-period of 3 years, of approved public company exclusively engaged in infrastructure facility or power sector.
• Subscription to the bonds issued by NABARD as specified by Central Government.
• Any sum deposited as 5 years time deposit under Post Office Term Deposit.
• Any sum deposited in Senior Citizen Savings Scheme.
• Any sum deducted from salary of Government employee (subject to maximum 20% of salary) towards deferred annuity plan for benefit of self, spouse or any children.
• Term deposit with scheduled bank for a period of not less than 5 years as per scheme notified by Central Government.
• Investing in units of notified mutual fund investing in approved public companies engaged in infrastructure facility or power sector.

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Income Tax Slab for year 2012-2013

India Income tax slabs 2012-2013 for General tax payers

Income tax slab (in Rs.)	Tax
0 to 2,00,000	No tax
2,00,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2012-2013 for Female tax payers

Income tax slab (in Rs.)	Tax
0 to 2,00,000	No tax
2,00,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2012-2013 for Senior citizens (Aged 60 years but less than 80 years)

Income tax slab (in Rs.)	Tax
0 to 2,50,000	No tax
2,50,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2012-2013 for very senior citizens (Aged 80 and above)

Income tax slab (in Rs.)	Tax
0 to 5,00,000	No tax
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

Income Tax Return in 16 Simple Steps

1. Access the income tax website http://www.incometax-india.gov.in/ and click on ‘File Returns Online’ and then ‘Income Tax Return' 
2. Download the preparation software for the relevant return form under ‘Downloads’. You can save the zipped file and extract the return file.
3. Fill out all the particulars in the downloaded software and validate entries by clicking on ‘Validate’ on the last sheet. Access the ‘Generate XML’ link; save the generated XML file. 
4. Register on the IT Department website (mentioned above). 
5. Enter your PAN, name, father’s name, date of birth, e-mail address and contact number.
6. You will receive an automated link on your registered e-mail ID. Click on it to activate your account. 
7. Your PAN is the user ID to access the link. Choose your password as per the specifications. 
8. Save the password for your future reference. In case of lost password, reset it with the help of your PAN and the secret question chosen during registration. 
9. If already registered, click on ‘Existing User’ login and keep your PAN and password handy. 
10. After logging into your account, select the relevant Assessment Year (2012-13) under the ‘Submit Return’ tab and upload the generated XML file (refer to Step 3) 
11. Acknowledgment in the form ITR-V is generated. The password to open it is your PAN followed by your date of birth. Save a copy. 
12. If your return was digitally signed, the process is over.
13. If your return was not digitally signed then, Take a printout of the generated ITR-V. 
14. Sign it in blue ink in the space provided. Send the signed acknowledgment via post within 120 days to the IT Dept - CPC, P.B. No. - 1, Electronic City Post office, Bengaluru - 560100.
15. Keep checking the receipt status on the site using the acknowledgment number on ITR-V. 
16. Once the ITR-V is received, check if the return has been processed by logging into your account.

This completes your return filing process....

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Why Invest in Mutual Fund?

Mutual Fund can be defined as an investment company that acquires funds from investors, and then invests the money in a diversified portfolio of investment securities. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities. When you invest in a mutual fund, you are buying shares of the mutual fund and become a shareholder of the fund. Each scheme of a mutual fund can have different character and objectives. Mutual funds issue units to the investors, which represent an equitable right in the assets of the mutual fund.

If you do not want to go in for a risky venture and have security for the amount invested. You would want to maximize your returns on investment. or if you may not have the time or knowledge to actively manage your money. In this case, you would want a professionally managed firm to look after your investment needs and spend in profitable avenues. Mutual funds offer a safer way to reach your goals.They are a convenient and cost effective method of obtaining diversification and professional management. They generally buy and sell securities in volume, which allows investors to benefit from lower trading, management and research costs. Fund performance is subject to frequent reviews by various publications and rating agencies, making it possible for investors to conduct direct comparisons between funds.

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Classification of Mutual Funds

By Structure:

1. Open-ended scheme
2. Closed-ended scheme
3. Interval schemes

 By Investment Objective:

1. Growth schemes
2. Income schemes
3. Balanced schemes
4. Money Market schemes

Other Schemes:

1. Tax saving schemes
2. Special schemes
3. Index schemes
4. Sector specific schemes

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Mutual Fund Flow Chart

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