Tamilnadu TN Sixth Pay Commission to spend 223Cr: Pension, Pay Arrears & Salary Hike Details

Details about Tamilnadu TN Sixth Pay Commission Salary Pay Hike - One-Man Commission Setup
We've reported news about the Tamilnadu TN Sixth Pay Commission in our previous news articles Tamilnadu TN Sixth Pay Commission August 2008 and Tamilnadu TN Sixth Pay Commission June 2009. However, nothing concrete came out since that long period. But there are few more developments recently. The Tamilnadu TN State Government has finally appointed a One man committee or one man commission for fixing the anamolies in the Sixth Pay Commission Salary Pay hike calculations. So this is another step in that direction, which might help the TN state employees to get a clarity about how much salary and pay hike can be expected. Sixth Pay Commission

Tamilnadu TN Sixth Pay Commission Salary Pay Hike

Who was heading the One Man Committee for fixing anamolies of the Sixth Pay Commission implementations?
The current industries secretary, Mr. Rajeev Ranjan, was heading the one man commission for Sixth Pay Commission implementations in Tamilnadu TN. He had submitted his report sometimes in April and the good news is that now the TN government has accepted all the recommendations suggested by the report from Mr. Rajeev Ranjan.

General Sixth Pay Commission Salary Hike & Arrears Calculator (Indicative)

Salary Calculator for Pension calculations for Sixth Pay Commission Salary Hike (Indicative)

How much extra burden will it cost to the TN state government for salary hike as per the Sixth Pay Commission ?
It is expected that the additional 223 Crore Rs. will have to be spent by the TN state ex-chequer for this salary hike.

How many Tamilnadu employees will benefit from this pay recommendations?
It is estimated that around two lakh employees and teachers from TN will benefit from this recommendation.

Will the TN state employees also get arrears as per the Sixth Pay Commission ?
Yes, The government has already announced the implementation of the same in June 2009 and spent about 23,000 Crore Rs. for more than 12 Lakh state employees as well as more than 5 lakh pensioners.
Then there were more declarations, like the dearness allowance hike of 8% in March 2010, and so on.
Being an election year, the government will leave no stone unturned to keep the people happy.

But overall, it appears to be a good news for the state government employees.

LIC Jeevan Anand Policy: Review Analysis & Details

In this article, we provide a detailed review, analysis and opinion about LIC Jeevan Anand Policy.
All of you may have seen the LIC Jeevan Anand Policy ad on television as well print. Let us see whether this LIC Jeevan Anand Policy worht any investment and who should consider it for investment as well as insurance. It is a mix of Endowment Assurance and Whole Life plans.
So you get both insurance as well as the returns at the end of the term. But is it good enough to put your hard earned money in LIC Jeevan Anand Policy or are there any better options available? Let's have a look.

LIC Jeevan Anand Policy: Better Look for Alternatives

This article contains LIC Jeevan Anand Policy Review Analysis & details. This is part II of the article, please read LIC Jeevan Anand Policy: Review Analysis & Details Part I, before reading this part.

What are the better alternatives to LIC Jeevan Anand Policy?

Reliance Small Cap Fund: Details & Investment Summary

This article contains information about Reliance Small Cap Fund: Review Analysis & Details.
This is part II of the article Reliance Small Cap Fund: Review Analysis & Details - I. Please read part I before proceeding with this one.
There is also a performance graph in the offer document which tells about the relative performance of the various sectors over a long period of time.

However, one must note in the graph that it all depends upon the time of investment and exit. It's easy to look at the historical data and come to a conclusion. Difficult part is to predict the future and act accordingly. Ultimately, it all depends upon how you fund managers trading activity works to your benefit.

So overall, this Reliance Small Cap Fund seems to be a focussed fund on small cap sector.
Sunil Singhania will be the fund manager.Mid Cap Small Cap Stock Performance The money will be invested in the following proportions:
65% to 100% - Small Cap Stocks
Rest 0-35% in domestic debt and money market instruments or even in other sector equities

During NFO, the units of this Fund will cost Rs 10 per unit.

Are there any alternatives to Reliance Small Cap Fund?
You can look for a small cap based ETF or Exchange Traded Fund which is benchmarked to any small cap index.
Then IDFC also recently filed for a similar Mutual Fund called IDFC Small Cap Equity Fund NFO: Review

The Reliance Small Cap Fund will be benchmarked to BSE Small Cap Index

Minimum Investment:
Purchases : Rs. 5,000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No Info

No Tax Benefit is available in the Reliance Small Cap Fund

Investment Options for Reliance Small Cap Fund :
- Growth Plan: Growth & Bonus Option
- Dividend (Payout and Reinvestment)

The entry load for Reliance Small Cap Fund is as follows:
Entry Load for Reliance Small Cap Fund :
Zero Entry Load

Exit Load for Reliance Small Cap Fund:
This is High - 2% if the amount sought to be redeemed or switched out is invested up to 1 year from date of allocation.
1% if redemmed within 1 year to 2 years, and Nil after 2 years.

Final Thoughts about the Reliance Small Cap Fund?
This fund can be a good investment for investors willing to bet on the skills of the Fund Managers and who believe that the small cap stock investment story based upon the stock selection skills of fund managers. Although as of now, there are no "dedicated" Small cap funds available in the Indian Mutual Fund markets, so this Reliance Small Cap Fund might look good for investors who are quite keen on investing specifically in "Small Cap Sector". But the important point to note is the asset allocation - although this fund calls itself "Small Cap Fund", only 65% of capital will be invested in so called small cap stocks.
So there are some more funds available with that kind of capital allocation. At the same time, it will also be worth looking at small cap based ETF or Exchange Traded Funds which offer the benefit of intra-day price movements and trading.

Reliance Small Cap Fund: Review Analysis & Details

Another mutual fund house has decided to come out with its NFO or New Fund Offer. The Reliance Mutual Fund House has launched its NFO or New Fund Offer called the Reliance Small Cap Fund. With the launch of this new fund, Reliance Mutual Fund has added another sector specific fund to its portfolio.
In this article, we will analyse how good is this Reliance Small Cap Fund NFO, whether this Reliance Small Cap Fund offers anything new or unique for the investors and whether the investors should invest in Reliance Small Cap Fund .

Reliance Small Cap Fund NFO: Review Analysis & Details

Let's begin with some basic details about Reliance Small Cap Fund.

What are the NFO dates for Reliance Small Cap Fund ?
The NFO period for Reliance Small Cap Fund will open on 26th August and will close on 9th September 2010. Reliance Small Cap Fund

What is so unique about this Reliance Small Cap Fund?
The Reliance Small Cap Fund claims to be for the "High Risk-High Return" methodology. The reason for this is that it will invest in so called small cap companies, which are expected to become the shining stars tomorrow and that's where the name of the fund is derived from. However, not every small cap company can be successful. So there is no guarantee that the small cap stocks which the fund managers at Reliance Mutual Fund select for investment, will become the high return giving stocks. So the investors need to keep the risk in mind.
Our thought on this is that it all depends upon the timing. As cited with an example in this article: Relative performace of mid-cap stocks v/s large-cap stocks, the relative performance of small cap, mid cap, large cap all varies as per time. It is this timing that the fund managers try to capitalise upon. Whether they are successful or not and what net return does an investor get, is a different question altogether. The offer document claims that the high volatility in small cap stocks is smoothened over a long period of time, so this Reliance small cap fund is for the long term investment. But there is no guarantee of anything. Overall, the investor should keep the High Risk in mind, if they are investing in any small cap stock specific fund aiming for high Returns. Mid Cap Small Cap Stock Performance

There is also a performance graph in the offer document which tells about the relative performance of the various sectors over a long period of time. However, one must note in the graph that it all depends upon the time of investment and exit. It's easy to look at the historical data and come to a conclusion. Difficult part is to predict the future and act accordingly. Ultimately, it all depends upon how you fund managers trading activity works to your benefit. Continue to Part II- Is this fund worth investing?

Property Rates: Very High, Better Wait for Now for Mumbai Pune Real Estate Investments

This refers to a recent report covered in the Zee Business News Channel. As per the reports, there are some 80,000 flats and apartments lying vacant for want of buyers as of now i.e. 2010. The same number, i.e. the no. of flats/ apartments to be sold in 2008 were at 50,000. So in summary, in the last 2 years, the no. of apartments waiting to be sold have increased by 60%. And interestingly, the builders, instead of lowering the prices, are actually sitting on quoting high prices.

The report was aired on in prime time. It is interesting to note that despite being densly populated, a city like Mumbai which is also called the economical capital of India and easily able to absorb the global recession period, and coming back with fat pay packages to service industry employees at all levels. With all these facts behind it, it worth noting that people are still finding it hard to buy properties, even for their own use - forget about the seond investment option.
What can be the reason for this??
As quoted, the prices are still too high in both Pune and Mumbai. The builders are just not willing to compromise on the prices. They prefer their built flat lying vacant, rather then being sold for a lesser amount.
No wonder why there are 80,000 apartments lying vacant. Real Estate
The Real estate market in India in not regulated. That is why there is no price sensitivity. Builders quote anything which they want to and then there are these "smart alecs" who dont really understand money and pay whatever is demanded. However, all this happens in good times of so called "growth period". It's the slack times when things come to reality - when the jobs are at stake, when salaries decrease, instead of increasing, when Banks increasing the home loan rates, when stock markets tumble, and so on.

As most of the Banks have increased their BPLR or prime lending rates thereby increasing the EMI payments, experts mention that it is the era of high interest rates. The Chairman of one of the largest home loan provider banks also mentioned that this is the time for real estate rates to come down, else there will be no buyers.

So is it the right time to buy property or invest in real estate sector?
Nobody knows the answer to this question with certainity, but if you belive the various voices that are coming out in the market, it is the time for high interest rates. Inflation is hitting hard, prices are shooting up, banks are increasing their loan rates, the primary class of customers (IT workers) are getting hit by US outsourcing ban, high visa charges, low salaries and so on, yet builders are not willing to compromise on the high prices of flats and apartments, lakhs of flats are ready but unsold - all these indications tell us that there might be a correction in the real estate prices. However, things might also turn other way round if inflation eases out, salaries rise and so on, there might be the reverse effect

Maruti Suzuki Stock Analysis: What's going wrong with Maruti?

It has been sometime now that the report came out about Maruti Suzuki loosing a significant market share in the Indian Car market. interestingly, the report for Maruti loosing its market share comes at a time when the overall car sales are reported to be shooting up with a record number. So what's going wrong with Maruti?? Is it a call for the investors to exit this stock? Let's have a look at certain points:

Many things can be considered here. Maruti has come out with various new models, competitive prices, new designs and so on, and they are also backed by many other historical things - largest service netowrk in the country, most trusted car brand of India, claims of having the highes retail value for used cars, known to be a brand for common man of India and so on. Still, Maruti has lost its market share.

Design of new Maruti Suzuki Cars:
First and foremost, let's look at the new models - Maruti launched Eeco recently, then new version of WagonR, and then there are these other cars like Estillo, A-Star, Ritz, etc. However, looking at the designs of Wagon-R, it makes me wonder whether the design engineers at Maruti have taken a break or what? WagonR was one of the most successful cars from Maruti. They launched the new upgraded version with a new design called "Blue-Eyed Boy". What came out was a complete turn-off for many aspirants (buyers), as the looks just made them dump their decision to buy new WagonR. Compare that to Beat or Polo or i10, and you will know why the looks of WagonR are a complete turn-off. They call it the "Blue-Eyed Boy". Sounds good, but what about the blue eyes, when I want to buy some colour other than blue??
Then came the new Alto K10 - except for the new K Series engine promising better mileage, nothing has changed. It is still the same conjusted space inside. And on top of that, the price has increased.
I believe Maruti needs to really work on the design and looks.

Pricing of Maruti Suzuki Cars:
Yes, its true that maruti still offers the economical but quality cars, but are the prices still competitive??
Take Alto K10, take WagonR, they all are now above 3 Lakhs. Add to it the other charges and the price happily shoots upto 3.6 plus. Someone who wants to spend 3.6 can as well go for other options available, that too with better looks from the brands of Hyundai, Volkswagen, Chevrolet and so on. Then comes the games played at the showrooms - many stories are known about how financing is forced onto the customers and that's not just with Maruti, it is with other car makers and two wheelers as well - if you want to buy you vehicle on your own without loan, the waiting period will be longer (in months), but if you want to buy it on loan (so that costs extra), you can get it as early as next week.
Although this is a problem with every car and bike manufacturer, it is something which maruti can work on improving.

With the current competitive offerings from other brands, Maruti is no longer offering competitive prices. Right from 1 Lakh car Tata Nano to high end hatchbacks like Honda Jazz, Maruti needs to position its prices to be "real competitive".
The metro city youth are now open to more choices - Chevrolet, Volkswagen, Nissan, etc. And its the small city regions which Maruti is loosing out on. These rural, semi-urban, non-metro small city population is still not open to the moderate to high prices of maruti. They still expect better economical prices.
The taste is changing, the variety is changing, people expect more.

Servicing & Support of Maruti Suzuki Cars:
Now that is what Maruti has been banking upon - the widest network of services nationawide. However, there have been many problems which dissatisfy a customer. Right from forceful selling of extra accessories, to forcing the customer to go for extra repairs, to forcing cars to be bought on loan for early delivery even if the customer is willing to buy on his own.
The moment a customer enters the showroom, he is quoted a big price upfront. What is said to be costing 3 Laks in the ads, easily becomes 4 lak plus. And that's where people start to looks around for options. In India, customers are still new to the cars. They may not know what a bumper is, what are fog lamps and how does ABS work. The problem at showrooms is that customers go their with 3L price tag in mind, and the representative quote something like 4 Lk plus. Even a customised number plate is quoted to cost 2000 Rs. while buying a car. If the customer does not notice it, he finds it out later and feels cheated. These are straightaway turn-offs.
Its the service networks that make or break the brand.
My own experience with the authorized dealers and service stations has been quite dissatisfying. Even during the guarantee period, replacement of faulty parts took more than 2-3 months and several reminders and escalations through their wesbite. A magazine also carried out stories about authorized service centers selling faulty and duplicate parts in the name of Maruti.
As a brand name, it is the responsibility of Maruti to take due care of these instances. Agreed that largest network is difficult to manage, but if one doesnt do it, one should be prepared to take the hit.

Overall Maruti Suzuki Cars:
It's time for Maruti to look back at what went wrong and why did they loose the market share so significantly. The car market has seen many new players - competition is tough. People have options, they know to explore them before going for a decision of laks.

So what if there is the largst repair network. Are these networks living upto the promised expectations set by the brand or are they breaking it for earnig more money by selling extra unwanted accessories and forcing unwanted repairs?

Design part - need a complete overhaul. With the likes of Beat, Figo, Polo hitting the streets, customers may not want to settle for the looks of WagonR or the conjusted spaces of Alto K10 that fall into the same price band

Avantha Power IPO IPO: Review Analysis & Details

Another IPO is set to hit the primary stock markets pretty soon. The IPO belongs to Avantha Power & Infrastructure Company, is a power generation company promoted by Gautam Thapar and it has now come out with the Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the Avantha Power IPO and try to do the Review and analysis of Avantha Power IPO.

Avantha Power IPO: Review Analysis & Details

Some basic details first about the Avantha Power IPO, which are available as of now:

- The size of Avantha Power IPO is expected to be around 1250 Crore Rs.

What is the issue size of the Avantha Power IPO?
Around 1250 Crore Rs is the size of the IPO

How will the capital raised by Avantha Power IPO be used?
The money raised by the IPO will be used for multiple purposes:
1) To fund the Chhattisgarh Power Project Phase I Construction which is ongoing
2) To fund the Madhya Pradesh Power Project Phase I
3) For other expenses and corporate purposesAvantha Power

What is the price band of Avantha Power IPO?
The price band details are not available at the moment - but it is known to be a 100% book building process

How many shares will be sold in the Avantha Power IPO?
The total no. of shares to be sold through this IPO is not known.

What is the trading symbol & exchange for the Avantha Power IPO
No info about that

What are the IPO dates for Avantha Power IPO
The IPO for Avantha Power will open on dates 11 October

Any ratings given to Avantha Power IPO?
No information about that.

What are the analysts recommendations for Avantha Power IPO?
The power needs for the country are increasing day by day. Hence Power companies are expected to benefit. Infrastructure developments are on the rise with a stable government at the center. However, one needs to look at the valuations of the company and how well it is placed with regard to the competitors.

Avantha Power & Infrastructure Limited is an established power generation company with 191 MW of operational thermal power capacity; 2,400 MW of generating capacity under various stages of implementation; and 1,320 MW of generating capacity under planning spread across India.

Enam Securities, Citigroup, Axis Bank and Kotak Mahindra are the Book running lead managers for this IPO.

What are the business results for Avantha Power?
No info about that

Samsung Galaxy U Available: Samsung Galaxy Details Leaked Online

This article contains details about Samsung Galaxy U CellPhone which are available online through unclaimed sources.
There are many news stories doing rounds on internet about the much hyped cell phone from Samsung named Samsung Galaxy U.
Although no source has been named about how these details and specifications of Samsung Galaxy U were arrived at, many technology portals are hosting news articles on their sites about Samsung Galaxy U Phone Details & Tech Specifications.

Screen for Samsung Galaxy U:
The screen for the Galaxy U phone is the AMOLED touch screen, one of the most advanced and better performance screen with the latest technology available.

Connectivity for Samsung Galaxy U:
The phone is reported to be available only on CDMA Rev A network and J-CDMA networks. That will mean GSM carriers will not be supported. However, these are unconfirmed news. Samsung Galaxy U Phone

Network Connectivity for Samsung Galaxy U:
Samsung Galaxy U is reported to come with Wi-Fi 802.11b/g/n and Bluetooth 3.0. It is also reported to have DMB-TV broadcasts.
The standard 3.5 mm audio Jack will be available.

Storage capacity for Samsung Galaxy U:
It is reported that the phone will come with a 8 GB card included in the package.
However, The phone is reported to have support for a massive 32 GB Micro-SD card i.e. expandable memory.

Processor for Samsung Galaxy U:
The processor for Galaxy phone is the strongest point - it is reported to be loaded with a 1 GHz processor.

Camera (Imaging & Video) for Samsung Galaxy U:
The phone Samsung Galaxy U is said to come with a 5 mega pixel camera, it has auto focus and 720 High Definiition HD Video Recording Feature.

Price for Samsung Galaxy U Phone:
The price for Samsung Galaxy U Phone are reported to be around 690 USD. It is not confirmed whether this price is for US or for Korea

ICICI Bank, SBI Increase Hike Home Loan, Car Loan Rates

It was recently we published the news about majore banks going for a Hike in Interest Rates and Loan Rates, and today the two big major players in the Home Loan and Car Loan market have increased their PLR's or Prime lending rates which will ultimately lead to an increase in the interest rates to be paid on the various loans take by borrowers.
So the constumers of these loans will be hit majorly, as the hike will increase their EMI or monthly payments Loan Rate Hike This means that the loans will now cost higher and it will hit the end customers with more money required for repayments.
By what rate are the loan interest rates increased by ICICI Bank and State Bank of India?
It is reported that the hike in Loan interest rates indicator i.e. PLR or Prime Lending Rate is 50 basis points or 0.5%

This is the era of rising loan rates, so some banks have also increased their deposit rates significantly. HDFC Bank recently sent out an email to all its customers about increased deposit rates and SBI is also reported to have increased the depopsit rates.
SBI is also learnt to come out with a floating rate deposit scheme, so as to attract investors.

By which date will the revised loan rates be effective by SBI & ICICI Bank?
It is reported that the new revised loan rates are getting effective from 18th August.

All this is credited to the RBI increasing the CRR on 27th July. It was almost certain that rates will go up.

Is it the right time to buy a house on home loan?
I dont think so. The rates are rising, then may rise even further. The rumors in the market is that it is the time for rising interest rates. We all know how well the banks do when the rates increase - they are very quick to pass on the increased rates to the loan borrowers. However, when the rates decrease, no bank promptly reduces the EMI. So it is the customer who get stuck.
Think twice before going for a long term committment like a home loan spanning over many long years. You may see that ou take a home loan at 8.5% today, and after 3 months the rate increases to 9% increasing your EMI. Some banks may offer teaser rates fixed for some initial period of time, but that's something varies from bank to bank. Even that might be increased if the interest rates increase.

It is also learnt that both the existing and the new loan borrowers will get affected because of this loan rate increase.
Individual loan seekers should practice caution before making long term long committments

Bajaj Allianz iGain II Policy: Review, Analysis & Details

Bajaj Allianz has come out with another ULIP product, named as Bajaj Allianz iGain II Policy. In this article, we will go through a Review analysis and details of the Bajaj Allianz iGain II Policy, and see whether this policy is worth considering the investment. As the name includes ULIP's or Unit Linked Insurance Plans, it is a mix of investments and Insurance (something which I never recommend mixing together as explained in this article Insurance Investments v/s Tax savings). This policy from Bajaj Allianz also gives you tax benefits, with a lock-in period, so that is another attraction. However, let's look at all the other details and fine prints of this policy before deciding to buy it. Bajaj Allianz iGain II Policy
On their official website, there are certain things mentioned which we are putting here. They claim that "iGain II is the fastest way to buy life insurance online" and mention that this is the only ULIP policy in India which can be bought online ONLY. However, should also be noted is that the policy may require you to undergo medical tests. Hence, just because you buy the policy online and make the payment, it does not really mean you are entitled to get the benefits as the policy existence may be dependent on your medical test results.

So now let's move on further and assume that you buy this policy and get everything cleared. Since this is a ULIP, you get insurance, as well as some market linked returns. Your insurance comes at 5 times your annual premium amount. Hence, if I commit 50K per annum for this policy for 10 years, the sum assured on my death is 5 times, i.e. 2.5 Lacs. Along with this, you can also add some riders to this policy, like accident death benefit or total/partial disability which again come to the same amount. Bajaj Allianz iGain II Policy So I dont really think they are providing anything extra when you add the riders.

So looking at it from the point of view of insurance, I dont think the 5 times annual insurance premium cover will actually be suitable for anyone. Anyways, that depends upon the individual choice. Investors may take their call on it. Continue Reading about the Returns from Bajaj Allianz iGain II Policy

Bajaj Allianz iGain II Policy: Returns & Investments

This is part II of Bajaj Allianz iGain II Policy Review. Please read Part I Bajaj Allianz iGain II Policy: Review, Analysis & Details
How about the returns from Bajaj Allianz iGain II Policy?
That's the million dollar question - Bajaj Allianz iGain II Policy is a ULIP - i.e. a mix of insurance and investments. So one will get some returns on his invested capital. However, let's see a demo taken from their site. Bajaj Allianz iGain II Policy The demo is for 10K annual premium payment, and shows INDICATIVE returns for 5 to 9 years period (indicative because returns will vary as per returns from where your money will ultimately be invested). So even with these indicative figures, the returns dont look that attractive. Say in 5 years at 10K per annum premium, you pay a total of 50K. and the indicative returns show just 58,551 as returns. Similarly, for 9 years, you pay 90K, get back around 1.248 Lakhs. Over that long period, it may not be that attractive. An alternative to that is buying a no-frill insurance policy, and also invest regularly in a market index based ETF or Exchange Traded Fund. The no-frill policy will cost you lowest and give you maximum insurance, while the index based ETF investment over this long horizon will build up good corpus of money in terms of SIP or systematic Investment plan.

However, you must not forget the tax benefit available. Premiums paid under iGain II are eligible for tax benefits under Sec 80C also the maturity benefits are tax free under Sec 10(10)D. Depending upon your tax bracket, you will get tax benefit. Again a lot of nos. need to worked out. Also your money gets locked in in ULIP.

Where will my money be invested ultimately?
There are a few funds where your money will get invested:
Equity Growth Fund II
Accelerator Mid Cap Fund II
Pure Stock Fund
Asset Allocation Fund
Equity Index Fund II
Liquid Fund
Bond Fund
Continue Reading about Charges you pay and how it affects your net returns from Bajaj Allianz iGain II Policy

Bajaj Allianz iGain II Policy: Charges Investors should be aware of

This is part III of Bajaj Allianz iGain II Policy Review. Please read Part II Bajaj Allianz iGain II Policy: Returns and Investments
The claim is that this policy can only be bought online, so no agent or other party is involved to pay any charges. However, there are charges to this policy and they are not so small to be ignored. The investors should be aware of that.

Second thing that is claimed is that you can manage your investment online and there are no charges if you switch. But there are fund management charges which are as follows:
Fund - Fund Management Charge per annum
Equity Growth Fund II - 1.35%
Accelerator Mid Cap Fund II - 1.35%
Pure Stock Fund - 1.35%
Asset Allocation Fund - 1.25%
Equity Index Fund II - 1.25%
Liquid Fund - 0.95%
Bond Fund - 0.95%

So even though the switching of funds is free of cost, you will have to pay charges as per the fund of your choice (or your fund manager's choice, if you ask them to invest for you).

There are some additional benefits claimed by the Policy - like From the 11th year onwards, iGain II increases the allocation of units by 2% to enhance your investments. So while you pay a 100% premium, 102% of it is invested. However, to get this benefit, you need to remain invested for atleast 11 long years.
Also, you will need to pay them charges for the first year which are as follows for your annual premium amount :
8,000 - 24,999 - 5%
25,000 - 199,999 - 2%
200,000 and above - NIL

And then there are no charges from year 2 onwards. But, there are so called "Policy Adminsitration Charges" of 4.5% of first year Annualized Premium per annum. And these will keep inflating at 5% per annum on every policy anniversary. So you longer you stay, the more charges you pay.
This is what is worriesome - because it is claimed that there are no agents involved, no other parties, its a direct buy from the company. This claim may give an impression that the charges are less, but it is not true.
Add to that the fund management charges stated above. Then there are "Miscellaneous Charge" which are Rs. 100/- per transaction in respect of reinstatement, increase or decrease in regular premium, alteration of premium mode or issuance of copy of policy document.
There are "Mortality Charge" which are dependent on the age of the person - the older you are, the higher the mortality charge you pay.
So overall, a typical ULIP, with loads and loads of charges although it is claimed to be a "Direct Buy" "Online Buy Only" with no agents or no third party. Investors need to be careful about these nos. Continue Reading about Surrender Charges the overall feedback about Bajaj Allianz iGain II Policy

Bajaj Allianz iGain II Policy: Surrender Charges & Summary

This is part IV of Bajaj Allianz iGain II Policy Review. Please read Part III Bajaj Allianz iGain II Policy: Charges of Policy, before reading this article.
What are the surrender charges or withdrawal options in Bajaj Allianz iGain II Policy?
If you want to exit before 3 years, 25% of first years' Annualized Premium will be gone.
4th year 17%, 5th year withdrawal will take away 12% and after 6 years there are NIL surrender charges. However, please note that by the 6th year, you would have paid a lot of other charges as listed above. Bajaj Allianz iGain II Policy
Final Thoughts about Bajaj Allianz iGain II Policy?
Overall, this is a typical ULIP, and the kind of charge structure they have, it will not be easy for investors to udnerstand the charges easily. In my personal opinions, Insurance and Investment should not be combined. You try to get mix of both and unfortunately, both are inadequate. Everything is linekd to market returns and the returns of the funds/instruments where your money is placed. Whether the returns are positive or not, the charges are taken by the company.
You can make assumptions about what will finally come out (some illustrations are provided on the official site as well, like the image above at 6% and 10%), but nobody is in control of what effective return you will get.

Private School Teachers get Sixth Pay Commission Salary: Pension, Pay Arrears & Salary Hike Details

It's raining money and more money for all kinds of employees - all thanks to the Sixth Pay Commission, that not just Public Sector organizations and entities, even private entity employees are reaping the benefits of the Sixth Pay Commission implementation. The BMC or the Brihanmumbai Municipal Corporation's (BMC) has recently passed an order to provide the Private School Teachers the salaries which will be at par with their counterparts in the Government schools and will be as per the Sixth Pay Commission. This order will directly benefit the Private school staff in terms of salary, pay and pension. Sixth Pay Commission

Private School Teachers get Sixth Pay Commission Salary

Which private schools staff will be eligible to get the benefits of Sixth Pay Commission implementations?
Both the aided private schools and un-aided private school teachers will be getting the salary as per the sixth pay commission.
It's a souble win situation for private school teachers as now these private school teachers will not only get equivalent salary as compared to their counterparts in Government schools.

General Sixth Pay Commission Salary Hike & Arrears Calculator (Indicative)

Salary Calculator for Pension calculations for Sixth Pay Commission Salary Hike (Indicative)

How much salary hike is expected for private school teachers as per the Sixth Pay Commission ?
It is expected that the monthly salary will rise by 5000 to 10000 Rs. for the private school teachers.

Will the private school teachers also get arrears as per the Sixth Pay Commission ?
It is not known, because it is learnt that many teachers in government aided schools are yet to get their arrears payment as per the old Fifth pay commission. So the arrears payment for sixth pay commission are still in question.
Also there is no calrity over how and when will the new order regarding the new 6th Pay commission salary will be implemented.

But overall, it appears to be a good news for the private school teachers. Atleast they will now be sure about their salary being at par with their govt school counterparts. Especially the teachers who get really low salary in a few private schools can really cheer up, because till now it has been more of an exploitation for them in private schools with very low salaries being paid out.
However, it will hit the common man very hard, because all this fee hike for private schools will be passed on to the parents in terms of increased fee hikes.

National Bank Increased Mortgage Home Loan Rates: Newzealand

The increase in loan rates is going all around the world. Although US Fed kept the rates unchanged yesterday, but in Newzealand, the interest rates are being raised consistently by many banks. Yesterday, the National Bank in Newzealand became the latest bank to increase the loan rates for mortgages and home loans. Loan Rate Hike This means that the loans will now cost higher and it will hit the end customers with more money required for repayments.
By what rate are the loan interest rates increased by National Bank Newzealand?
It is reported that the hike in interest rates for both variable and flexi rate is increased by 0.25% or 25 basis points.
The new variable rate is now at 6.24% while the flexi rate is 6.20%

However, it is rpeorted that National Bank's the home loan rate for 18 month fixed term is decreased by 19 basis points or 0.19% to 6.60%.
The 2 year loan rate is down 0.14% or 14 basis points and is now at 6.85%.
The 3 year loan rate is down by 0.1% or 10 basis points to 7.15%

By which date will the revised loan rates be effective by National Bank?
It is reported that the new revised loan rates are getting effective from 11th August.

Any other banks in Newzealand raising the interest rates for loans?
Yes, previously it was TSB, ANZ, Kiwibank, ASB and Westpac banks which have already changed their loan rates.

All these developments are hitting the common men really hard. Higher cost of living, uncertain job conditions and limited sources of income are making it a real problem for common man to survive

Bank Hike Loan Rates, Interest rates on Home & Car Loans: Higher EMI Payments

There comes the big news which everyone was afraid of - The largest players in the home loan and car loan markets have gone for a Home Loan Rate Hike and Car Loan Rate Hike, even the education loan is not spared, the Education Loan Interest Rate is hiked. Loan Rate Hike This is another big blow to the customers of loans in India, as the rate hike will really pinch them hard.
By what rate are the loan interest rates increased?
It is reported that the hike in interest rates for various loans is upto 0.75% or 75 basis points. It will mean that the customers who have opted for any kinds of loans will now have to shell out extra money while making EMI payments.

Any example of how much extra EMI will need to be paid for the increased loan interest rates ?
Although the interest rate increase will be varying from bank to bank and depending upon the type of loan, but here is an example.
If someone has taken a home loan of 20 lac for a period of 10 years at 9% interest rate will usually pay an EMI of around 25350.
However, if the interest rate on home loan is increased by 0.75% to 9.75%, then the EMI will increase to around 26,200. That is, clear hike of 850 Rs. or so.

Which banks have increased the loan interest rates ?
The news is about the benchmark prime lending rate (BPLR) increase.
PNB or Punjab National Bank, which is the second largest national bank of India, has increased BPLR by 75 basis points to 11.75%.
Corporation Bank , Bank of Baroda and Oriental Bank of Commerce have gone for 0.5% rate hike and now their BPLR stands at 12.50 per cent. IDBI increased BPLR is now at 13.25%, while Union Bank's is at 12.25%. Both have increased it by 50 bps.

The interesting thing is about the major players in the home loan market. State Bank or India (SBI), ICICI Bank and HDFC bank have not yet ome out with any info on hiked loan rates. These are the major players in the Indian Home loan and car loan market. However, it is expected that these banks will sooner or later increase their loan rates. Infact, HDFC bank has already increased the interest rates payable on Fixed Deposits. So it can anytime announce a hike in loan rates.

What is the reason for this increase in loan intrest rates?
The reason is said to be the CRR hike by Reserve Bank of India (RBI), which was declared on 27th July. Exxpectations are that there might be another rate hike by RBI anytime, as the inflation is still not under control. There is another monetary review expected on September 16th.

All these developments are hitting the common men really hard. Higher EMI's higher cost of living, uncertain job conditions and limited sources of income are making it a real problem for common man to survive

Loan on Credit Card: Charges, Problems & Limitations

This article is the second part of Loan On Credit Card: Beware Of The Charges & Problems.

What are the charges and problems for Loan on Credit Card?
There are multiple things which should be kept in mind before taking Loan on Credit Card:

- Please note that Loan on Credit Card can cost you dearly. It has higher rate of interest as compared to other forms of the loan

- The availability of Loan on Credit Card is based upon your credit ratings. So please ensure that your maintain a good credit rating.Loan On Credit Card

- Loan amount can vary depending upon the limits on your card, and the kind of card you hold - Gold, Silver, Platinum, Titanium, etc.

- Other Charges can cost you heavily. There will be processing charges and you might have to pay taxes on those charges.

- Even if you want to pre-pay your Loan on Credit Card, there will be pre-payment charges

- If you take the Loan on Credit Card, the the cash withdrawal limit on your card may be blocked or reduced. Even the spending limit might be reduced

Hence, overall it appears to be a good option, but one needs to be aware of the multiple charges, high interest rates, processing and pre-payment charges, taxes on the same and all these issues before considering taking a Loan on Credit Card.

Loan On Credit Card: Beware Of The Charges & Problems

In this article, we will discuss the Loan on Credit Card, benefits, problems and charges to look for. Now a days, everyone carries a credit card. It was in 2008 when due to the financial market problems across the globe, the credit card companies all of a sudden stripped out the cash withdrawal limits as well as the spending limits on credit cards. However, now in 2010, things are looking much better and the so called "Hot Offers" on Credit Cards are back. The telemarketers are back in job calling people from all walks of life, asking them to take the Free for Life Credit Card . Not only that, exisiting credit card holders are being flooded with extra offers which include big discounts, freebies on spending , bonus reward points with every swipe of credit card, lucky draw and so on. One of these offers is also Loan on Credit Card, which the credit card companies are heavily marketing, both through online media, print media as well as telemarketing calls. But what actually is this Loan on Credit Card, how does Loan on Credit Card works, what are the charges and problems with Loan on Credit Card. Loan On Credit Card
What is Loan on Credit Card?
Loan on Credit Card is a loan offered to exisiting credit card holders by the credit card company. One benefit of Loan on Credit Card is that it is pre-approved i.e. if you get a call from your credit card company offering your Loan on Credit Card, then you dont need any approval for that. Even you can call your credit card company and ask whether they can offer Loan on Credit Card.
Usually, it does not require any documentation, and it is a pure personal loan.

What are the limitations for Loan on Credit Card?
The limitations are in terms of amount of money you can take on loan. Say your credit card has a spending limit of 10,000 and cash withdrawal limit of 3000. Then your loan amount might be limited due to these factors.
Second limitation is that although it seems all paper-less and document free process, some signing of documents or email confirmation or recording of your acceptance of loan on phone will be required. It might take few days before you actually get the loan money
Third is that you will usually always get a paper check which will be account payee. Hence, you may loose some days for the check to be encahsed and credited to your account and money to be available for use.

How is Loan on Credit Card different from Cash Withdrawal on Credit Card?
They are different and should not be mistaken for being the same.
Cash Withdrawal has a limit, say 3000 as cited in example above. You will not be able to withdraw more than that.
Once you withdraw the amount, you need to pay the interest from that day onwards. The interest rate charged is known to you in advance.
You also need to pay the amount back (atleast the minimum amount) to credit card company by your billing date.

On the other hand, the Loan on Credit Card is based on availability and offer, and the period and payment frequency is fixed. Interest rate charged on the Loan on Credit Card is usually a bit lower than that on cash withdrawal.
However, there might be a charge in the name of "Processing Fee" which can vary widely.
Even if you try to pre-pay the loan, you may have to pay pre-payment charges.

So cash withdrawal can be used when in real urgent situation, which loan on credit card should be opted for when there is some time available and there are no other sources of money. Next: Beware of Charges & Problems for Loan on Credit Card

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