your's Nivesh Mantra: November 2011

Sunday, 27 November 2011

IDFC INFRA BOND TRANCHE 1 2011

TERM SHEET –“IDFC INFRASTRCUTURE BONDS TRANCHE I” U/S 80 CC F

Issuer Infrastructure Development Finance Company Limited

Face Value 5,000

Minimum Application Rs.10000 & in multiple of Rs.5000 there after.

Rating “(ICRA)AAA” from ICRA &“Fitch AAA(ind)” from Fitch

Security First pari passu floating charge over the Secured Assets and first fixed pari passu

charge over specified immovable properties of the Company

Security Cover 1.0 time the outstanding Tranche 1 Bonds at any point of time.

Listing NSE and BSE

Debenture Trustee IDBI Trusteeship Services Limited

Depositories National Securities Depository Limited and Central Depository Services (India)

Limited

Registrar Karvy Computershare Private Limited

Mode of Payment Electronic Clearing Services , At par cheques & Demand drafts

Issuance Dematerialized form or Physical form* as specified by an Applicant in the Application

Form.

Lock-in Period 5 years from the Deemed Date of Allotment

Trading Dematerialized form only following expiry of the Lock-in Period

Issue Opening Date November 21, 2011

Issue Closing Date December 16, 2011

Maturity Date 10 years from the Deemed Date of Allotment

Buyback Date Date falling 5 years and one day from the Deemed Date of Allotment

Put/Call Option None

SPECIFIC TERMS FOR EACH SERIES OF TRANCHE 1 BONDS

Series	1	2
Frequency of interest payment	Annual	Cumulative
Face value per tranche 1 bond	Rs 5000	Rs 5000
Buyback facilities	Yes	Yes
Buyback amount	Rs 5000 per tranche 1 bond	Rs 7695 per tranche 1 bond
Tenor	120 months from the deemed date of allotment	120 months from the deemed date of allotment
Interest date	9%	NA
Yield on maturity	9%	9% compounded annually
Yield on buyback	9%	9% compounded annually

Thursday, 24 November 2011

Saturday, 12 November 2011

Changes in small saving wef from 1 dec11

The finance ministry has approved the Thirteenth Finance Commission recommendations to make NSSF more flexible and market linked so that investor earns better returns. Also, the ministry has made some major restructuring in the commissions paid to the agents. It will be effective following the issue of the notification from the government.

According to the decisions on the recommendations of the committee for comprehensive review of NSSF, payment of commission on Public Provident Fund (PPF) schemes (1%) and Senior Citizens Savings Scheme (0.5%) will be discontinued whereas agency commission under all other schemes will be reduced to 0.5% from existing 1%. However, commission at existing rate of 4% will continue for Mahila Pradhan Kshetriya Bachat Yojana agents. Also the incentives, if any, paid by the state/UT governments will be reduced from the commission paid by the central government.

Furthermore, the annual ceiling on investment under PPF will be increased from Rs. 70, 000 to Rs. 1 lakh and the interest on loans obtained from PPF will be increased to 2% p.a. from existing 1% p.a. while Kisan Vikas Patras will be discontinued. Liquidity on post office time deposits will be improved allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. Pre-mature withdrawals between 6-12 months of investment, will be paid at the rate of interest applicable on post office savings account.

Following are the rate of interest on various small savings schemes for current financial year on the basis of the interest compounding/ payment built in the schemes, assuming the date of implementation as 1 December, 2011:

Instrument	Current Rate (%)	Proposed Rate (%)
Savings Deposit	3.5	4
1 Year Time Deposit	6.25	7.7
2 Year Time Deposit	6.5	7.8
3 Year Time Deposit	7.25	8
5 Year Time Deposit	7.5	8.3
5 Year Recurring Deposit	7.5	8
5-Year SCSS	9	9
5 Year MIS	8.00 (6 year MIS)	8.2
5 Year NSC	8.00 (6 year NSC)	8.4
10 Year NSC	New Instrument	8.7
PPF	8	8.6
Payment of 5% bonus on maturity of MIS will be discontinued.

Wednesday, 9 November 2011

Reliance Any Time Money Card

Reliance Any Time Money Card

Key Features of Reliance Any Time Money Card

• The card offers investors the benefit of Mutual Fund Investments along with the convenience of debit cards.

• Allows cash withdrawal and transaction in Point of Sales (PoS) terminals in Visa-powered ATM /PoS terminals

• Allows Balance Enquiry in Visa-powered ATMs

• Investors have the choice to withdraw from any scheme linked to the card in HDFC Bank ATMs

• In non-HDFC Bank ATMs and PoS terminals, transaction will happen only through PrimaryAccount.

• Card will offer instant liquidity to the unitholder up to a permissible limit as fixed/ determined by the Bank for ATM cash withdrawals or 50% of the balance in the scheme or Rs. 50,000 (whichever is lower) as set by RMF, per day, from time-to-time, whichever is lower.

• Investors will be able to spend up to 50% of the balance in the primary account or Rs. 100,000

per day (whichever is lower) at PoS terminals.

Primary Scheme Account

Primary scheme account on the card can only be either Reliance Liquid Fund – Treasury Plan or

Reliance Money Manager Fund. It is mandatory to have one of these schemes as the primary scheme

account in order to apply for the card.

Type of Transactions

3 type of transactions* are allowed through the card.

- ATM Cash withdrawal

- ATM Balance enquiry

- Purchase at merchant establishments

*Not valid for payment in foreign exchange in Nepal & Bhutan.

Card is accepted at over 1.8 million Visa-enabled ATMs and over 30 million merchant establishments that

accept visa.

(Source www.visa.com as on 19- September 2011)

Transactions at HDFC Bank ATM

At HDFC Bank ATMs, unit holders get the flexibility to withdraw cash / do balance enquiry from any of the

mutual fund scheme linked to the card.

a. Withdrawal:

1) Corresponding Scheme and plan associated with the card are displayed in case of cash withdrawal.

2) Post selecting the scheme and a plan, amount needs to be entered. If the withdrawal amount is within

the limit, transaction is honoured and processed.

Current schedule of Charges

	PARTICULARS	CHARGES
	Cash Withdrawal(Upto 50% of the Balance* or Rs 50,000, whichever is lower)	Nil
	Spending in PoS Terminals(Upto 50% of the Balance or Rs. 100,000*)	Nil
	Annual Fee Balance Enquiry	Nil
	Hotlisting of Card	Nil
	Card Issuance Fee,reissuance	Nil
	International Cash Withdrawal	Rs. 69 + ST##
	International Balance Enquiry	Rs. 21 + ST##

* Cash withdrawal at Visa ATM (other than HDFC) / PoS usage amount will be debited from the primary scheme.

- At HDFC Bank ATM customer can withdraw 50% of the amount or Rs. 50,000 (whichever is lower) from the eligible

schemes linked to card

- Customer can withdraw cash in multiple transactions at different ATMs till the daily limit of 50% of the balance or Rs.

50,000 (whichever is lower) in primary scheme is reached.

- Similarly at POS customer can purchase upto 50% of the balance in the primary scheme or Rs. 100,000 whichever is

lower

-Above charges are subject to revision with / without a prior intimation

# Service tax is currently charged at 10.3% and it is subject to change

Why Liquid Funds still score over saving deposits

Tuesday, 8 November 2011