JPMorgan Mutual Fund floats 400 days plan

JPMorgan Mutual Fund new issue opens on 16th February and closes on 21st February

JPMorgan Mutual Fund has launched JPMorgan India Fixed Maturity Plan 400D Series 1, a close-ended income scheme.

The investment objective of each of the schemes is to generate income through investments in debt/money market instruments and government of India securities maturing on or before the maturity date of the respective scheme. The tenor of the scheme is 400 days.

The new issue opens on 16th February and closes on 21st February. The minimum investment amount is Rs5,000.

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Budget to give clearer picture on economic reforms: PM

Exuding confidence that inflation should be "no more than 7%" by March-end from 8.23% in January, prime minister Manmohan Singh said the government's effort has been to rein in high prices without hurting growth

New Delhi: Under attack for high food prices and slow reforms, prime minister Manmohan Singh today said the UPA has not given up its economic agenda and promised clear measures in the upcoming budget, reports PTI.

Exuding confidence that inflation should be "no more than 7%" by March-end from 8.23% in January, Mr Singh said the government's effort has been to rein in high prices without hurting growth, which he projected to be at 8.5% this fiscal.

Addressing electronic media editors here, Mr Singh said global factors like high crude and food prices were not under the control of the government and that efforts were being made to insulate the poor through programmes like the National Rural Employment Guarantee Act (NREGA) and keeping prices at state-run ration shops unchanged since 2002.

"We want to deal with it (inflation) in a manner that the growth rhythm is not disturbed. If we were concerned only in curbing inflation we could have done with pursuing tighter monetary policies... if in the process the growth rate gets hurt that would not do our country any good," he said.

Rejecting criticism that the government has given up on economic reforms, the prime minister said: "We will persist...

I sincerely hope in the (upcoming) budget we will see a clearer picture of the reform agenda."

He, however, blamed the opposition for not co-operating with the government on "path breaking reforms on Goods and Services Tax (GST)".

The opposition, "Particularly the BJP, has taken a very hostile attitude," he said.

For the introduction of GST, the Constitution Amendment Bill has to be passed by a two-third majority in both houses of parliament and ratification by at least 15 state assemblies.

The draft of GST, which subsumes most of the state and central taxes, is being opposed by NDA-ruled states.

Indicating big initiatives for infrastructure development in the budget, Mr Singh said: "I believe we are going to have a fresh wave of infrastructure investment with the help of PPP (public-private partnership) model."

Stating that discussions are going on to create an infrastructure development fund, he said finance minister Pranab Mukherjee may make some announcements. "Some discussions are going on...and most probably, finance minister will outline something in that direction."

India needs investment to the tune of over $1 trillion in the 12th Five Year Plan (in 2012-17) to sustain a growth rate of 8%-9%.

When asked from where the country would mop up resources, he said: "We must create a viable corporate debt market. I think that is the direction in which we must move."

Commenting on the drop in foreign direct investment (FDI), Mr Singh admitted there was a need for "favourable" environment for fund flow from abroad.

"We need to strengthen the resolve to create favourable environment for larger flow of funds from abroad," he said.
The prime minister said government policies could not be blamed for the current drop in FDI as the current international scenario was prompting foreign funds to move out from emerging markets

"I think we need to strengthen the resolve to create favourable environment for larger flow of funds from abroad," he said.

During April-December of the current fiscal, FDI inflows declined by 23.14% to $16.03 billion over the year ago period.

The prime minister also said that discussions are going on to create an infrastructure development fund and finance minister Pranab Mukherjee may make some announcements in this direction.

Mr Singh also assured the government has not given up on reforms and that more reforms could be unveiled in the forthcoming budget.

"No, we have not given up on reforms. We will persist...

I sincerely hope in the (upcoming) budget we will see a clearer picture of the reform agenda," Mr Singh said.

He reiterated that the government has been working on a host of reform initiatives, some of which have already been successful.

"We are working on a Food Security Bill. The Right to Education is now a reality... The ICDS (Integrated Child Development Services) is a reality... and also the National Rural Health Mission," Mr Singh said.

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IDBI Federal Retiresurance – Aims to revive dwindling pension market

Prior to the new ULIP regulations, about 30% of business came from pension products. While most insurers have avoided pension ULIPs, IDBI Federal plans to revive the dwindling pension market with a new traditional pension product

IDBI Federal Retiresurance is a guaranteed traditional pension plan designed to help customers secure their lifestyle post-retirement. Retiresurance is a good product for people looking at returns in line with rates of long-term government securities.

You know the exact amount that you will receive on your vesting date for each premium paid. But the catch is that the rate used to calculate guaranteed returns may vary each year, depending on the government securities rate declared by the Fixed Income Money Market and Derivatives Association (FIMMDA). So, the corpus you are accumulating will depend on FIMMDA rates; but the positive side is that the premium you pay will get the government securities rates without any charges.

Retiresurance is a long-term product that has an accumulation phase and a payout phase. The duration of the accumulation phase can be over 10, 15, 20 or 25 years. In the payout phase, you could draw from your retirement corpus for a regular pension.

There is a single premium as well as a regular premium option with a minimum premium payment term of three years. The single premium option has a minimum premium of Rs25,000 and it is Rs20,000 for the regular premium. There is no upper limit for investment.

If someone chooses a 25-year term and pays a premium of Rs1,00,000, the FIMMDA rate for 25-year government securities is 8.6% today. With this rate, the policyholder is guaranteed Rs5,50,000 at the end of 25 years. For the next premium that you pay the remaining policy term will be 24 years. The FIMMDA rate for 24-year government securities at that time will determine what will be your guaranteed maturity value for your second year premium and so on. At the end of the accumulation phase (25 years in this case), the policyholder has the option to take out a one-third lump sum and use the remainder to buy annuity or to buy annuity for the full corpus. The annuity rates and terms will depend on what is offered at the time of the payout phase.
 
According to GV Nageswara Rao, managing director and chief executive officer, IDBI Federal Life Insurance, "We have designed Retiresurance to suit the definitive needs of people post-retirement. With an increase in life expectancy, many Indians could be spending a good 20 to 25 years of their life in retirement. The product offers a guaranteed corpus for every premium paid. Moreover, if the customer continues the policy till maturity, the plan offers guaranteed loyalty additions."

Retiresurance also comes with a death benefit to ensure that the policy holder's nominee gets money which could be the higher of either the premiums paid, along with a 5% compounded interest, or the special surrender value.

Under the current tax laws, contributions by way of premiums are eligible for deduction under section 80CCC. Under section 10 (10A), the tax benefits are on any payment in commutation of pension received from the fund.

IDBI Federal plans to also come out with a single-premium pension ULIP in the near future. They have already filed for the product with the Insurance Regulatory and Development Authority. The regular-premium pension ULIP is avoided by most insurers-except LIC-as it is perceived to be risky to offer a guaranteed 4.5% per annum.

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COMMENTS

ashok

6 years ago

i m interested and want to know more. so pls call me.

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