Everything about Fixed Maturity Plan

Fixed maturity plan (FMP) are on the same lines that of a fixed deposits of a bank. However, they come with a slight difference. FMPs are debt schemes that invest in fixed-income securities. 

• Where do FMPs invest?

The corpus invested in Fixed Maturity Plans is directed into many avenues such as certificate of deposits (CDs), commercial papers (CPs), money market instruments, corporate bonds and sometimes even in bank fixed deposits. The fund manager invests into the above mentioned avenues based on the tenure of the investment. Say if the FMP is for a year, then the fund manager invests in paper maturing in one year. The expense ratio generally varies from 0.25 to 1 per cent.

• Tenure of FMPs

 The tenure of the plan depends on the plan and its maturity period. It can range anything from one month to three years. They are closed-ended in nature, which means that once the NFO (new fund offer) closes, the scheme cannot accept any further investment.

These FMP NFOs are generally open for 2 to 3 days and are marketed to corporates and well-heeled, high net-worth individuals. Nevertheless, the minimum investment is usually Rs 5,000 and so a retail investor can comfortably invest too.

• Actual return Vs Indicated Return

When compared to bank fixed deposits, the actual return tends to differ slightly from that of the indicated return. As banks print the exact amount expected on the maturity of the plan on the FD receipt. 

• Tax Implications

• The dividends are exempted from tax in the hands of an individual investor.

• If the growth in FMP is less than one year, then the returns are combined with         income and taxed accordingly.

• If the investment in the growth option of the FMP is for over a year, than either 10% capital gains tax without indexation or 20% with indexation.

Tips to cut down on your Car Loan Interest Rate

Investing in a car is the second largest investment any individual ever makes in his or her life after a house. Many of us always finance our car dreams through a car loan. However, amid-st the excitement of getting a new car we really don't try to look into the intricacies of different finances associated with it.

Do you know with few calculations and alterations you can cut down on the premium you pay for the car insurance and also the rate of interest liable on the loan you have borrowed. We list down few tips to take into consideration on how to reduce your car loan rate of interest.

Keep your credit score in check

It is very important to know your credit score. It is one of the first thing lenders take a look at when lending you money. Also, accordingly define the rate of interest over your car loan. Therefore, higher your credit score, lower will be your rate of interest.

If you feel just paying off your debt is all enough to keep your credit score good, then wait and have a keen look. It is also important to pay your debts on time. For instance, a delay of even 30 days is taken into consideration.

Shop around

Do not stick to just one bank or non-banking institution to provide you with your car loan. It is very important to shop around and look for options provided by few in the market. Look for the rate of interest applied by few institutions based on your credit score and accordingly take your call.

Bargain with your existing loan holder

It is always advisable to go with your existing loan provider. However, if you are getting a car loan at a lower rate of interest, then bargain with your loan provider and discuss the offers you are getting from other banks and non-banking institutions.

Finally, choose the institution that provides you the lowest rate of interest and a convenient mode of payment.

Different Types of Home Loans Available in India

The desire to own a perfect abode for them has many turn to taking up home loans. The home loan segment also over the last decade has grown in a big way. Well it not only lets you accomplish your dream of owning a house but also comes with some tax benefits.

So if you are one of those looking forward to applying for a home loan. We list down different types of home loans provided by PNBHFL .

• Land Purchase Loans

As the name suggests, this particular loan is taken when the borrower wishes to invest in a plot. It is meant to buy a plot to further built a house over it. Banks and other private funding institutions provide about 80% of the price of the plot as loan.  

• Home Purchase Loans 

These loans are considered when the borrower wishes to invest in an already developed house by a well-known builder. This is one of the most commonly used home loans. The borrower can avail loan for about 85% of the market value of the house. 

• Home Construction Loans 

This category of loan is considered by those who wish to build a house as per their preferences rather than staying in an already built house. However, the loan sanction procedure for a home construction loan is different from that of the other home loan categories. 

• Home Extension Loans 

Home extension loans are brought to use when people decide to rework on the house they already possess or reside into. It is to finance the various kinds of expansion and alteration plans associated with the current house. 

• NRI Home Loans 

This is a special home loan variant created by banks and private funding institutions that comes with a provision for NRIs. It helps the non-residents to invest in the Indian real estate. Almost all public and private sector banks provide NRI home loans.  

Secure Your Child’s Future with Max Life Shiksha Plus Super

Children are believed to be the potential sculptors of the country’s future. They possess the untamed power of imagination and productivity that can work wonders when channelized properly. As a result, it is your duty as a parent to shape your child future in an appropriate way.

Your child’s future will turn bright only when he has been given proper education. However, decent education is turning costly every day and by the time your child grows up, its cost might surpass your savings. To avoid such inadequacy in the future, it is essential to save in a comprehensive child plan that offers exclusive benefits. Max Life Shiksha Plus Super is such all-inclusive plan that will cover your child’s education needs even when you are not around.

This unique plan has been launched by Max Life to encourage people to support their children’s education. This plan not only offers maturity benefit, but also offers an additional term insurance cover, tax benefits and loyalty additions.

A few key benefits of these plan include:

• Comprehensive Life Cover:

• On death of the insured, the company will pay-out lumpsum sum assured. Moreover, the plan also provides 

• Family Income benefit that offers 10% of Sum assured annually, in event of death of the insured.

• The plan also encompasses Funding of Premium, under which the company will fund all the due premiums. 

• Flexibility of Premium and Payment Term: 

Very few plans in the market allow such flexibility to decide the premium and the tenure of payment. Using such facility, you can easily define key financial milestones.

• Freedom to Choose the Underlying Funds 

As the plan invests in growth instruments, you are given a privilege to choose five funds of your choice for channelizing the premium.

• Hedging against Market Risk 

With features like Systematic Transfer Plan and Dynamic Fund Allocation, you can easily hedge the market risk associated with premium investment.

• Availability of Partial Withdrawals 

You can make partial withdrawal during financial emergencies with this plan.

MaxLife Super Shiksha Plus Plan can be purchased by any individual between 21 to 50 years of age for a reasonable premium. So, why rely on other sources of investments, when a full-featured insurance plan is available at your disposal.