Edelweiss Monthly Income Plan Launched by Edelweiss MF

Recently, Edelweiss Mutual Fund announced to launch a new fund Edelweiss Monthly Income Plan, which is an open-ended income scheme.

An online news portal about business and economy economictimes.indiatimes.com writes about Edelweiss Monthly Income Plan, “The scheme seeks to invest at least 70 per cent of its net assets in debt and money market instruments and the balance in equity and equity related instruments.”

It quotes a statement of Vikaas M Sachdeva also who is the Edelweiss Asset Management Limited (AMC) Chief Executive Officer, “Our quant based equity investment style and a debt portfolio at lower duration, will endeavour to produce better risk adjusted returns than conventional MIPs.”

So, Edelweiss Monthly Income Plan will be able to produce better risk adjusted returns than conventional MIPs.

Further he said to ET, “…With equity markets a little volatile and an interest rate scenario that has seen a significant hardening in high inflation regime, we believe this is the right time for investors to invest in this scheme.

The scheme seeks to generate returns that are consistent with the moderate levels of risk and liquidity through active management of a diversified portfolio constituted of debt and money market instruments, securitised debt, government securities, and equity and equity-related instruments.

Since the equity component of the portfolio of the scheme would provide the opportunity for generating enhanced returns of the portfolio, the AMC will focus on managing the same with quant-based investment style, making the scheme one of Indias premier quant-based equity investment products.

In parallel, its debt portfolio will seek to produce consistent returns that will serve to counter balance any volatility produced by equity component.”

So, the scheme generates consistent returns with the moderate levels of risk and liquidity. Debt portfolio of Edelweiss Monthly Income Plan seeks to produce consistent returns. It is the best plan like Retirement Fund of Tata Mutual Fund .

Freedom Home Loan Launched by LIC Housing Finance

Recently, LIC Housing Finance launched a new home loan product christened Freedom on a floating rate basis.

An online news portal about business and economy economictimes.indiatimes.com, writes about it, “Under the scheme, loans upto Rs 30 lakh would be offered at 9.9 per cent, loans between Rs 30-lakh-Rs 75 lakh at 10.35 per cent and loans of Rs 75-lakh-Rs 1.5-crore can be availed at 10.75 per cent.

The scheme will allow customers an option to convert to a fixed rate scheme for five years after the disbursement of the first loan amount. They can exercise this option only once, within one year of availing the scheme.”

Further it writes about the advantage, “The rate would be linked to the prime lending rate, unlike the companys Advantage-5 scheme that was launched last year, with the lending rate fixed at 9.25 per cent for five years, and after that on a floating rate basis.

The company added that it has withdrawn its Advantage scheme, on concerns that it could be deemed to be a teaser loan rate scheme.”

So, the rate would be linked to the prime lending rate. It is featured with withdrawn advantage scheme. After 5 years, the loan can be converted on floating rate basis.

The news portal quotes a statement of LIC Housing Finances Chief Executive Officer, V K Sharma also, “It was not a teaser rate scheme. It would become a dual rate scheme after five years. We had sought a clarification from the regulator on it being a teaser rate scheme. Since we did not receive any clarification, we decided that it was better to withdraw the product.”

So, it is a dual rate scheme after five years. It is not a teaser rate scheme. It is as useful as retirement fund of TATA Mutual Fund .

Posted in loans

Retirement Fund To Be Launched By Tata Mutual Fund

Recently, TATA Mutual Fund announced to launch a Retirement Fund. TATA Retirement Fund is an open ended fund. Investors can put their money into the new fund offer (NFO) to make a minimum investment of Rs. 5000.

An online news portal about business and economy quotes a statement about the TATA Mutual Fund, “The objective of the Fund is to provide a financial planning tool for long term financial security for investors based on their retirement planning goals.”

So, TATA Retirement Fund is aimed to provide a financial planning tool for long term financial security for investors based on their retirement planning goals.

Further it adds, “The Tata Retirement Fund would offer investors option to invest under three plans Progressive Plan, Moderate Plan and Conservative Plan. The schemes would offer growth option.

The performance of schemes would be benchmarked against BSE Sensex, Crisil Balanced Index Fund and Crisil MIP Blended Index respectively.

While the Progressive and Moderate Plan would invest majority of its corpus in equity schemes, Conservative Plan would have higher exposure in debt securities.

The fund would provide an investment tool for retirement planning of investors, depending upon their risk appetite.

The earnings of the fund from domestic investments are exempt from income tax.”

There are 3 plans for investors in TATA Retirement Fund Progressive Plan, Moderate Plan and Conservative Plan. These plans would be benchmarked against BSE Sensex, Crisil Balanced Index Fund and Crisil MIP Blended Index.

Majority of its corpus will be invested in equity schemes. The earnings of TATA Retirement Fund from domestic investments are exempt from income tax as per the statement.

Retirement Fund of TATA Mutual Fund is being recognized as the best fund like Capital Protection Funds of SBI Mutual Fund .