Fixed Maturity Plans - 1st June 2011

Dear All,

Following are the ongoing Fixed Maturity Plans in the Market. Kindly click on the image to get a better view.

Thanks,
Dewang K. Mehta
DENIP Consultants Pvt. Ltd.

IFCI Ltd. - Unsecured Bonds at 10.5% for 10 years and 10.75% for 15 Years

Dear All,

 

On similar lines to the Muthoot Fincorp Ltd. Offering, IFCI Ltd too is offering bonds to raise capital. However these bonds are unsecured and although they carry an “A” rating by CARE, I would peg it in a higher risk category as compared to Muthoot Fincorp’s Secured bonds.

 

These bonds offer an interest rate of 10.5% p.a. for a 10 year bond and 10.75%p.a. for a 15 year bond. Minimum investment of Rs. 10,000. The bonds issue opens tomorrow i.e. 1st June 2011 and closes on the 15th of June 2011.

 

Kindly go through the image file below and let us know if you’re interested in investing money in this asset class.

 

You can contact us on (022)40156688/90/99/92 or drop us an email on dewang@denip.in / nimesh@denip.in to get the application forms.

Thanks,

Dewang K Mehta

DENIP Consultants Pvt. Ltd.

NFO by Kotak Mutual Fund

Dear All,

Kotak Mutual Fund has launched a NFO: Kotak FMP Series 49. The New Fund Offer of the scheme opens on June 02, 2011 (Thursday) and closes on June 08, 2011 (Wednesday).

MINIMUM INVESTMENT during NFO:

Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.

           

OPTIONS:

Growth and Dividend Payout.

           

INVESTMENT OBJECTIVE:

The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme.

LISTING:

The units of the scheme will be listed on NSE/BSE on allotment. The units of the scheme may also be listed on the other stock exchanges.

BENCHMARK:

CRISIL Short Term Bond Index.

LIQUIDITY:

Units of this scheme will be listed on National Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.

MATURITY:

370 days after the date of allotment of units.

To invest in this Fixed Maturity Plan, kindly get in touch with DENIP Consultants Private Limted (www.denip.in) on 9320496699 / 9320196699.

Alternatively you can also email us on dewang@denip.in / nimesh@denip.in

Thanks,

Dewang K. Mehta

DENIP Consultants Private Limited

Fixed Maturity Plans - Last week of May 2011

Dear All,

Following are some of the ongoing Fixed maturity plans available for investment in the market.

If you're unable to view the image properly, kindly click on the same to view an enlarged image.

Thanks,
Dewang K. Mehta
DENIP Consultants Pvt. Ltd

Fixed Maturity Plan (FMP) VS Bank Fixed Deposits

Dear All,

With a lot of Fixed Maturity plans (FMP) offering as high as 9.85% these days, we at DENIP decided to compare them to Bank Fixed deposits which tend to offer around 10% or more depending on which category you’re investing in.

For ease of calculation and understanding we decided that its best to let the Bank FDs have a 0.5% point advantage over the FMPs since yields tend to vary depending on the time you’re investing in them. So with the Bank FDs interest rate set at 9.5% and FMP yield set at 9% we decided to see which instrument got us the best post tax yield.

Fixed Maturity Plan offered by Mutual Fund houses  VS Bank Fixed Deposits	Bank FD	FMP (Retail Plan Growth Option)
		Without Indexation	With Indexation
Investment Amount	1,00,000	1,00,000	1,00,000
Assumed net yield to investor(p.a)	9.50%	9.00%	9.00%
Tenor (days)	400	400	400
Amount at Maturity	1,10,410.96	1,09,863.01	1,09,863.01
Interest/long-term capital gain	10,410.96	9,863.01	9,863.01
Indexed cost acquisition (double indexation)	NA	NA	1,12,360.00
Indexed gain/loss	NA	9,863.01	-2,496.99
Tax Rate*	30.90%	10.30%	20.60%
Tax on interest on FD/capital gain on MF	3,216.99	1,015.89	NA
Post-tax income	7,193.97	8,847.12	9,863.01
Post-tax yield (simple annualized)	6.56%	8.07%	9.00%

As per the table above if you do fall in the 30% tax category, its best to opt for FMPs rather than Bank FDs. We also think that for companies which tend to invest in Bank or Corporate FDs should definitely consider investing in FMPs due to the tax benefit they offer.

All your views and opinions on the same are more than welcome.

Thanks,

Dewang