LIC Bima Bachat Policy: Review Analysis & Details

This article contains details about LIC Bima Bachat Policy with Review Analysis & Calculations
In the print media one can easily spot ads by LIC for their Bima Bachat Policy. Occassionally the ads also appear on TV. This is being advertised as a single premium money back policy which claims to offer insurance for sum assured amount to the nominee/family members in case of death of the policy holder. The policy also offers assured returns in case of survival of the policy holder during the policy period. Overall, it sounds good, but let's see the numbers involved to get the clear picture of the policy details.

NHAI Bonds for Tax Savings: Review, Analysis & Calculation for NHAI Bonds 2011-12

High on the heels of other government infrastructure companies issuing Long term infrastructure bonds offering tax benefits to investors, the National Highway Authority of India (NHAI) has come out with its own issue of Tax Saving Bonds to tap into the benefits of long term capital raising thereby offering investors another option for tax savings.
Let's see some basic details of these NHAI Tax Saving Bonds first:

Calculations for effective returns from NHAI Tax Saving Bonds

What is the actual instrument being offered in the name of NHAI Bonds for Tax Savings
The issue offered by NHAI are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

What is the business and function of NHAI?
NHAI or National Highways Authority of India is an autonomous body under the minitry of Road Transport and Highway, Government of India which was operationalised in the year 1995. Primary functions are to survey, develop, maintain and manage the National Highways. It also builds offices or workshops, establish and maintain hotels, restaurants and rest rooms at or near the highways vested in or entrusted to it and similar functions associated with it. NHAI Bonds

What are the opening and closing dates for NHAI Bonds for Tax Savings
The NHAI Tax Saving Bond issue opens on 28 December 2011 and closes on 11 January 2012.

What are the tax benefits avaialble for investors in the NHAI Bonds for Tax Savings
The income earned as interest from the NHAI tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of NHAI Bonds for Tax Savings
The issue constitutes of Rs. 5000 Crores with an option of extending it to 10,000 Crores in case of over-subscription.

Are the NHAI Bonds for Tax Savings available only in demat form?
NHAI bonds will be available both in demat and physical form, so all kinds of investors can apply for these bonds irrespective of whether they have demat account or not.

What are the credit ratings assigned to NHAI Bonds for Tax Savings
CRISIL has awarded "CRISIL AAA/Stable" ,CARE has assigned "CARE AAA" and "Fitch AAA(ind) with stable outlook" by FITCH.
All these indicate good stable outlook.

Where will the NHAI Bonds for Tax Savings be listed?
The NHAI bonds will be listed both on BSE and NSE.

What are the other options available for tax savings to investors other than NHAI Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) IFCI Infra Bonds for Tax Saving

What are the investment details about NHAI Bonds for Tax Savings?
Each NHAI Bond will cost Rs. 10,000 and that is also the minimum amount to be invested.
NHAI Bonds have a maturity period of 10 and 15 years and interest will be paid annually.
The coupon rate on the bond 8.20% for 10 years and 8.30% for 15 years.
For individuals in the highest tax bracket of 30.9%, the 10-year 8.2% tax-free bond gives an effective return of about 11.87%, and the 15-year 8.3% bond 12.01%.

How can one apply for NHAI Tax saving bonds?
Interested investors can apply through the paper based applications available at the branches of Union Bank of India, IDBI Bank and Selected Branches of other Bank.
Also, trading sites like icicidirect.com are offering online applications for these NHAI bonds.

Final Thoughts about NHAI Bonds for Tax Savings?
NHAI is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Although the coupon rate of 8.2% and 8.3% may look a bit on the lower side as compared to the high coupon rates offered by other Long term infrastructuer bonds, one also needs to account for the tax free interest income - Interest earned on Long term infrastructure bond is NOT tax free, while the interest earned on these NHAI bonds is tax free. Taking into account the tax benefit of non-taxable interest payment, the effective coupon rate will increase.
Investors looking for tax savings options with shorter maturity can apply for these NHAI bonds

Muthoot Finance NCD: Non-Convertible Debentures Issue Review, Analysis & Details

Details about Muthoot Finance NCD Non-Convertible Debentures Issue Dec 2011-January 2012
It was not long time back when the Gold Loan company named Muthoot Finance had come out with its IPO Muthoot Finance IPO in April 2011.
Now, the same Muthoot Finance company has come out with its NCD issue or Non-Convertible Debentures issue which is currently open and claims to double the investors money in five and a half years.
Let's start with the basics first. Muthoot Finance NCD
What is a NCD or Non-Convertible Debentures?
NCD or Non-Convertible Debentures can be termed as a kind of special category of loan, which cannot be converted to a stock (hence the name Non-Convertible).
NCD's usually offer a higher rate of return as compared to Bank Fixed Deposits as well as FMP or Fixed Maturity Plans (What is a FMP: Explained).
Important thing for investor to note here is that NCD are kind of unsecured bonds, which are not backed by any collateral. Hence, when you are investing in an NCD, it indicates that you are actually offering a kind of unsecured loan to the NCD company. Since it is unsecured, it offers higher rate of interest (more risk-more return). Also, since it is non-convertible, these NCD's cannot be converted to stocks or equity of the company.

Muthoot Finance NCD: Review, Analysis and Calculations

What are the NCD dates for Muthoot Finance NCD?
The Muthoot Finance NCD is open from 22 Decemeber 2011 and will close on January 7, 2012.

What is the issue size of Muthoot Finance NCD?
Muthoot Finance NCD issue is expecting to raise around 600 Crore Rs. through the Muthoot Finance NCD issue. This includes an over-subscription of Rs. 300 Crore.

What is the minimum investment amount requried for investing in Muthoot Finance NCD?
Each debenture is having a face value of Rs. 1000 and minimum five debentures can be applied for. Hence, the minimum application amount comes to Rs. 5000.

What are the various investment options available in Muthoot Finance NCD?
There are 4 options available for investing in Muthoot Finance NCD - coming with 4 different maturity periods of 24 months, 36 months, 60 months and 66 months.

What is the effective interest rates offered by Muthoot Finance NCD?
Depending upon the various maturity period listed above, the effective yield on the Muthoot Finance NCDs will vary from a low of 13% to 13.45% per annum.
The 66 month or 5.5 year maturity period option claims to double the investors money in 5.5 years period.

How will the capital collected through Muthoot Finance NCD will be used by the company?
The money or capital collected through the Muthoot Finance NCD will be used for repaying existing loans as well as financing other business activities.
These activities will include investing as well as lending.
There are plans to increase the no. of branches which currently are at 97.

What are the ratings assigned to Muthoot Finance NCD?
Both CRISIL and ICRA have assigned AA-/ Stable ratings to the Muthoot Finance NCD issue.
As claimed on the company website, the ratings indicate stability regarding the financial obligations on part of the company.

Where will the Muthoot Finance NCD be listed?
The Muthoot Finance NCD will be listed on the Bombay Stock Exchange or BSE.

How can I directly apply to invest in Muthoot Finance NCD?
Interested investors can apply by downloading forms from the following site Muthoot Finance NCD Application Form

Will there be any tax benefit available in Muthoot Finance NCD?
No. There will be no tax benefit available in Muthoot Finance NCD.
Instead, all the income that you will earn as interest from the Muthoot Finance NCD will be taxable. Company will NOT deduct any TDS while paying the interest - it will be the responsibility of the investor to declare that income and pay taxes on it.
Hence, the investors should take into account the post tax effective returns calculation before jumping onto investing in these Muthoot Finance NCD based upon the high double digit interest it is offering.

IFCI Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about IFCI Infra Bonds for Tax Saving (Long Term Infrastructure Bonds from IFCI. Calculations for Tax saving in IFCI Infra Bonds as per the different income tax brackets is also covered..
High on the heels of IDFC who recently opened the subscription for their IDFC Infrastructure Bonds for Tax Saving and then closely followed by L&T Infra Bonds for Tax Saving, IFCI has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012. IFCI Infra Bonds

The market & the investors can expect to see more offerings for Long Term Infrastructure Bonds from various other organizations in coming few months as tax savings will be the buzz word since the financial year is going to come to a close in March 2012 and hence tax savings will be on the minds of investors. Now with so many different types of infrastructure bonds coming to the market, investors will be confused about what is the difference among them and which one to subscribe to? Basically, it all boils down to the interest rates offered and the credibility of the organization offering them. Usually, a good stable organization having a good credit rating (are they reliable?) will offer good enough interest rates, while organizations having a bit lower credit ratings may like to offer somewhat better interest rates to attract investors despite their low credit ratings.
Let's start with some basics first for the IFCI Infrastructure bonds issue:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of IFCI Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or IFCI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the IFCI Infra Bonds for Tax savings in more detail:

Relatively small issue size for the IFCI infra bonds, trying to collect around 100 Crore Rs. from the market - compare that to L&T infra bonds which are looking for 1100 Crores.

Green shoe option is there with the IFCI infra bonds but the green shoe option details remain unspecified.

The purpose & capital raised through the IFCI infra bonds will be used to finance the infrastructure projects all across the country.

The bonds are being offered in 2 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 - is for 10 year long bonds paying an interest rate of 9.09% per annum - coupon rate is higher than IDFC and L&T which are at 9%
Investors have the option to redeem the bonds after the mandatory 5 year lock-in period. They can also exit after 7 years period.

Series 2 - Is for 15 year long bonds paying an interest rate of 9.16% per annum - coupon rate is higher than IDFC and L&T which are at 9%
Exit option available after 5 years and 10 years period.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

One needs to invest a minimum of 5000 Rs. to buy a IFCI infra bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from IFCI.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IFCI Infra Bonds.

What differentiates IFCI Infra Bonds from the other issues like L&T & IDFC Infra Bonds which are currently open?
As of now IDFC Infra bonds issue is open (See details: IDFC Infrastructure Bonds for Tax Saving) and (L&T Infra Bonds for Tax Saving is open), but very soon we expect more infrastructure companies to line up with their issues as there are still 3.5 months to end of financial year.
The main difference between IFCI infra bonds and IDFC & L&T infra bonds is the credit rating assigned and the price per bond.

What is the security rating for the IFCI Infra Bonds ?
'BWR AA-' by Brickwork Ratings India Pvt. Limited
CARE 'A+' by CARE Ratings (Credit Analysis & Research Ltd.)
'LA' by ICRA Limited

How much will I effectively save by investing in IFCI Infra Bonds ?
The calculations will be similar to what we covered for IFCI Infra Bonds. Please see IFCI Infra Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for IFCI Infra Bonds ?
The IFCI Infra Bonds subscription date was opened on November 30, 2011 and will close on January 16, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good.
It is not mandatory to have a PAN no. for buying these bonds. Also, one can buy these bonds in both demat as well as physical format.

NSE-BSE Holidays 2012: List-India Stock Exchange (Stock Market) Holidays 2012

Details about BSE Holidays List 2012 / NSE Holidays List 2012
The year 2011 is coming to a close. Traders as well as Investors across the globe would like to now know the holidya calender for the year 2012 for planning their leaves and trading activities. NSE BSE Holidays
Like last year 2011, where we provided the NSE-BSE Holidays 2011: List-India Stock Exchange (Stock Market) Holidays 2011, once again here we provide the holiday list for the year 2012 for the Indian Stock exchanges.

Bombay Stock Exchange (BSE) Holidays 2012

National Stock Exchange (NSE) Holidays 2012

Wishing all the readers, traders and investors a happy and frutiful New year 2012.
BSE Holidays List 2012 / NSE Holidays List 2012

Holidays

Date

Day

1

Republic Day

26th January 2012

Thursday

2

Mahashivratri

20th February 2012

Monday

3

Holi

8th March 2012

Thursday

4

Mahavir Jayanti

5th April 2012

Thursday

5

Good Friday

6th April 2012

Friday

6

Maharashtra Day

1st May 2012

Tuesday

7

Independence Day

15th August 2012

Wednesday

8

Ramzan Id

20th August 2012

Monday

9

Ganesh Chaturthi

19th September 2012

Wednesday

10

Mahatma Gandhi Jayanti

2nd October 2012

Tuesday

11

Dussera - Vijaya Dashmi

24th October 2012

Wednesday

12

Diwali Amavasya (Laxmi Pujan)*

13th November 2012

Tuesday

13

Diwali Balipratipada

14th November 2012

Wednesday

14

Gurunanak Jayanti

28th November 2012

Wednesday

15

Christmas

25th December 2012

Tuesday


Muhurat Trading will be held on Tuesday, November 13, 2012 (Diwali Amavasya – Laxmi Puja)

The Exchange may alter / change any of the above Holidays, for which a separate circular will be issued in advance.

Please note that this information is as sourced from the exchange websites.
Wishing all the readers, traders and investors a happy and frutiful New year 2012.

L&T Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about L&T Infra Bonds for Tax Saving (Long Term Infrastructure Bonds from Larsen & Toubro Ltd. Calculations for Tax saving in L&T Infra Bonds as per the different income tax brackets is also covered..
High on the heels of IDFC who recently opened the subscription for their IDFC Infrastructure Bonds for Tax Saving, L&T has come out with their issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012. Same L&T had issued similar infrastructure bonds for tax savings in last financial year and here are the details of the same: L&T Infrastructure Bonds for Tax Saving - Feb 2011
The market should expect to see more buzz for Long Term Infrastructure Bonds from various companies in coming few months as tax savings will be on the minds of investors. So what's the difference between the bonds already available from other organizations and the one now offered by L&T? Bascially nothing except the interest rates offered and the organization which is offering them.
Let's start with some basics first:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of L&T Infra Bonds for Tax Savings 2011-2012 (Similar offering L&T had last year and the details of that can be seen on L&T Infrastructure Bonds for Tax Saving - Feb 2011. Last year L&T Infra bonds managed to raise around 450 Crore Rs. through the infra bond issue.

Review of IDFC Long term Infrastructure Bonds for Tax Saving

L&T Infra Bonds
The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or IDFC or IFCI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the L&T Infra Bonds for Tax savings in more detail:

The aim is to collect around 1100 Crore Rs. from the market through the same of these infra bonds.

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 9% per annum (annual interest payment) - Maturity Amount is 1000 Rs. as interest is payable annually.

Series 2 - Is for 10 year long bonds paying an interest rate of 9% per annum (cumulative interest payment) - Maturity Amount is 2367.36 Rs.

The bonds will be listed on BSE only (Not NSE) and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit. These bonds will come with a buyback option after 5 years i.e. IDFC holds the right to buy back the bonds after 5 year period.

The face value of each bond is set to Rs. 1000 but a minimum of 5 bonds need to be bought - i.e. you need to invest minimum 5000 Rs. to buy a L&T infra bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from L&T.
Annual interest payment bonds will be bought back at the rate of Rs. 5000 while cumulative interest payment bonds will be bought back at the rate of Rs. 7695 per bond.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the L&T Infra Bonds.

What differentiates L&T Infra Bonds from the other issues like L&T Infra Bonds which are currently open?
As of now only IDFC Infra bonds issue is open (See details: IDFC Infrastructure Bonds for Tax Saving), but very soon we expect more infrastructure companies to line up with their issues as there are still 4 months to end of financial year.
The main difference between L&T infra bonds and IDFC infra bonds is the credit rating assigned and the price per bond.

What is the security rating for the L&T Infra Bonds ?
Fitch has given a AA+ rating, ICRA has given AA+ rating to the L&T Infra Bonds.
These are the highest credit ratings awarded by these rating agencies

How much will I effectively save by investing in L&T Infra Bonds ?
The calculations will be similar to what we covered for L&T Infra Bonds. Please see L&T Infra Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for L&T Infra Bonds ?
The L&T Infra Bonds subscription date was opened on 25 November 2011 and will close on 24 December 2011. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good.
It is not mandatory to have a PAN no. for buying these bonds. Also, one can buy these bonds in both demat as well as physical format

IDFC Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about IDFC Infrastructure Bonds for Tax Saving (Long Term Infrastructure Bonds from Infrastructure Development Finance Company Limited (IDFC Ltd). Calculations for Tax saving in IDFC Infrastructure Bonds as per the different income tax brackets is also covered..
Last year, around this time, there was a wave of lot of infrastructure bonds coming to the market for tax saving purpose. We'd covered them extensively in deep details. Now that the financial year is coming to a close in India in next few months, the same companies are again lining up with a new fresh issue of similar long term infrastructure bonds.
The market should expect to see a buzz for Long Term Infrastructure Bonds from various companies in coming few months. There were Infrastructure Bonds from IDFC, IIFCL and L&T already available in the market during this time last year. Today, IDFC has come out with a new fresh issue of similar bonds and it is currently open for subscription, under the name IDFC Long Term Infrastructure Bonds for Tax Saving. So what's the difference between the bonds already available from other organizations and the one now offered by IDFC? Bascially nothing except the interest rates offered and the organization which is offering them.
Let's start with some basics first:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of IDFC Infrastructure Bonds for Tax Savings 2011-2012 (To check what offering IDFC had last year, one can read more about the details IDFC infrastructure Bonds that was available in last financial year)

Review of IDFC Long term Infrastructure Bonds for Tax Saving

IDFC Infrastructure Bonds
The basic working of these bonds from any issuer, whether it is IDFC or L&T or IDFC or IFCI, remains the same. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructe Bonds Investments.
Now, once you are clear about the fundamental details, let's see the IDFC Infra Bonds for Tax savings in more detail:

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 9% per annum (annual interest payment)

Series 2 - Is for 10 year long bonds paying an interest rate of 9% per annum (cumulative interest payment)

The bonds will be listed on NSE and BSE and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit. These bonds will come with a buyback option after 5 years i.e. IDFC holds the right to buy back the bonds after 5 year period.

The face value of each bond is set to Rs. 5000 - i.e. you need to invest minimum 5000 Rs. to buy a bond - cost of 1 bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from IDFC.
Annual interest payment bonds will be bought back at the rate of Rs. 5000 while cumulative interest payment bonds will be bought back at the rate of Rs. 7695 per bond.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IDFC Infrastructure Bonds.

Depending upon your income tax slab, following tab benefits are available, in case of Maturity and in case of Buyback:

Tax Benefit adjusted rate of returns (pre-tax) to Investors on Maturity
Tax Slab – 30.90% 15.2% 13.1%
Tax Slab – 20.60% 12.8% 11.5%
Tax Slab – 10.30% 10.7% 10.2%

Tax Benefit adjusted rate of returns (pre-tax) to Investors on Buyback
Tax Slab – 30.90% 19.1% 17.4%
Tax Slab – 20.60% 15.2% 14.2%
Tax Slab – 10.30% 11.8% 11.4%

What differentiates IDFC Infrastructure Bonds from the other issues like IDFC Infrastructure Bonds which are currently open?
The difference is in the interest rate or coupon rate offered on IDFC bonds.

What is the security rating for the IDFC Infrastructure Bonds ?
Fitch has given a AAA Stable rating, ICRA has given AAA (Stable Outlook) rating to the IDFC Infrastructure Bonds.
These are the highest credit ratings awarded by these rating agencies

How much will I effectively save by investing in IDFC Infrastructure Bonds ?
The calculations will be similar to what we covered for IDFC Infrastructure Bonds. Please see IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for IDFC Infrastructure Bonds ?
The IDFC Infrastructure Bonds subscription date was opened on 21 November 2011 and will close on 16 December 2011. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good

Religare Gold Fund NFO: Review Analysis & Details

Details about Religare Gold Fund: Review, Analysis, Details & Investment Opinion.
There comes another so-called "Gold Fund" from a new mutual fund house. Everyone is hopping on Gold for their investments so the mutual fund houses are going on launching Gold funds one after the other in the already over-flooded market. Just search for Gold Fund using the search box on this site and you can see how flooded the market currently is.
In this article, we will analyze how good is this Religare Gold Fund NFO, whether this Religare Gold Fund offers anything new or unique for the investors and whether the investors should invest in Religare Gold Fund.

Religare Gold Fund NFO: Review Analysis & Details

Let's begin with some basic details about Religare Gold Fund.

What are the NFO dates for Religare Gold Fund? Religare Gold Fund

The NFO period for Religare Gold Fund is from 15 November and will close on 29 November 2011. After the NFO period, the regular buying and redemption of fund units will start. This will be a passively managed fund of funds (What's this?) or better to say fund of a single fund.

What is so unique about this Religare Gold Fund?
Nothing - absolutely nothing is unique in this Godl fund. Like any other Gold fund or Gold saving fund already available in the market, the Religare fund managers will collect money from the investors, and invest that into their own Gold based ETF called Religare Gold ETF or Religare Gold Exchange Traded Fund.
The benefit these kind of investments claim to offer is no requirement for a demat account, exposure to gold in small amounts of investments, easy SIP facility and so on. However, if you are reading this article on a computer, that means you are computer savvy and with a good probability you will have a demat account. Anyways, see the next section on why this Religare Gold Fund is not unique.

What are the other competitor products available in comparison to Religare Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Religare Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE

HDFC has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.

Other Gold Schemes: Quantum Gold Fund

What are the risks of investing and trading Religare Gold Fund?
The benchmark for Religare Gold Fund is the physical price of gold. Since this is a fund of fund, it will be the Religare Gold ETF which is expected to track the gold prices and then those End of the prices will be reflected in the returns of this Religare Godl Fund. Being an End of the Day pricing product, the fund manager will attempt to give similar returns like the tracking gold price but the tracking error will surely creep in.

Final Thoughts about Religare Gold Fund?
Another Fund of Funds in the Gold investment arena, nothing new compared to what other Gold funds or Gold Saving Funds (already available in the market ) are offering. This fund just adds to the list and gives investors more choice of investment in Gold through a new fund house.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Religare Gold Fund.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Religare Gold Fund Entry Load:
Religare Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? Yes. Minimum SIP tenure is 6 months, with minimum SIP amount of Rs. 1000 and in multiples of Re. 1 thereafter.
Physical Gold Prices in India will be the benchmark for tracking the performance of Religare Gold Fund

Mr. Nitish Sikand will be the fund manager for Religare Gold Fund

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