6th December 2017 | VOL 12 | ISSUE 03 Fortnightly Issue        
Special Story

4 Key Features of Mutual Fund Children’s Plans

It’s very important to know that like life insurance companies, some mutual funds also provide children’s plans. The main objective of mutual funds having these plans is to help the investors save for their children’s future needs such as higher education.

Expert's View

3 Simple Tips to Help You Maximise Money In Your Bank Account

You save your hard-earned money in a bank account simply because it is a secure way of savings. You are well aware of the fact that returns in the form of interest rates on savings account hover generally in the range of 4-6%. The fact you need to understand here is whether you are getting optimal returns for your money parked in a savings bank account.

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From MD's Desk

Life After Death

Deena Mehta
Mrs. Deena Mehta
Managing Director, ACMIIL

In India, a spiritual Guru talking about preparation for death is understandable where hundreds of discourses are on Sanyas, Moksha, Detachment, etc. However, a person in family bliss has many social and financial responsibilities.

Equity SIP Model Portfolio
Conceptually, an Investment Advisory is a service that provides investment advice and designs a strategy to manage a certain sum of funds.
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Disclaimer: This InvestorFirst Magazine of Asit C. Mehta Investment Interrmediates Limited is meant to educate its recipients only. The news and views herein do not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe for any investment. The information herein is derived from sources believed to be reliable and is subject to change without notice.

4 Key Features of Mutual Fund Children’s Plans




It’s very important to know that like life insurance companies, some mutual funds also provide children’s plans. The main objective of mutual funds having these plans is to help the investors save for their children’s future needs such as higher education.

In case you a looking to consider investing in mutual fund children’s plans, you need to consider the following four key features of mutual fund children’s plans before starting:

Children’s plans come in multiple variants in terms of asset allocation
Children’s plans from mutual funds come in multiple variants of equity and debt-oriented funds in addition to hybrid funds, which invest in equity as well as debt.

Certain children’s plans come with a lock-in period
Some children’s plans offered by mutual funds do come with a lock-in period. That helps you largely in maintaining an investment discipline in terms of your child’s financial goals. Thus, this will help you stay invested for your children’s future needs.

Higher exit load could be a consideration
Most children’s plans offered by mutual funds have a higher exit load. The main reason behind this is to ensure that the parents stay invested in the plans for achieving their long-term goal for their children. The exit load ranges from 1-5% depending on the investment tenure.

Entry age limit
Some mutual fund plans for children can come with an age barrier for mutual fund entry for children. This means that you cannot invest in the scheme after your children have crossed that age limit threshold.
Therefore, choose your mutual fund option for your child wisely and start planning for your child’s future now. Mutual fund investments are one of the best ways to fight inflation and get stronger returns in the long run. Here are the two funds that we feel can be the best option for you to plan your children’s future:

Scheme Name
NAV as on 20th November 2017
Asset Under Management (in Cr)
Minimum Investment
Exit Load
Riskometer
SBI Magnum Children's Benefit Plan
53.5
40.32
5000
Exit Load 3% if Redeemed within 1yr, 2% if redeemed within 2 yrs and 1% if redeemed within 3 yrs.
ICICI Prudential Child Care Plan - Study Plan
69.2
85.55
5000

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Happy Investing!

3 Simple Tips to Help You Maximise Money In Your Bank Account



You save your hard-earned money in a bank account simply because it is a secure way of savings. You are well aware of the fact that returns in the form of interest rates on savings account hover generally in the range of 4-6%. The fact you need to understand here is whether you are getting optimal returns for your money parked in a savings bank account.

Let us assume your year-end savings, which you have accumulated in your bank account is Rs.100,000. Therefore, the accumulated interest would roughly be somewhere in the range of Rs.4000-6000 p.a. depending on the interest rate your bank offers. Do these returns justify your principal savings? Could you have earned more cumulative returns by spreading these savings in different asset classes based on a proper financial plan? Given the wide variety of investment options these days, you are absolutely right if you feel your savings have yielded below par returns.

Therefore, it is time for you to start planning your finances properly and go in for a diversified investment strategy. Having a cash cushion of three to four months of your salary in your savings account is critical. However, there are ways to ensure that you are maximising your bank accounts in terms of optimal efficiency of interest received on that money.

Here are 3 simple tips to make efficient use of your bank money:

Be clear about the type of fees you pay in your bank account
It is very important for you to know all types of fees that you pay to maintain your savings account with your bank. Simply call your bank’s customer care and ask them about your monthly maintenance fees, annual fees, transaction fees, ATM transaction charges, and other applicable fees. These fees possess the capability of diluting your savings appreciably over time. Therefore, know it before you lose it. There could be charges that you may not want to incur, which you could do away with. It is vital for you to find ways to eliminate them or negotiate them with the bank’s representatives. In some cases, you would just have to maintain a minimum balance by making intelligent decisions regarding money transfers. When you are aware of these things, just do them effectively on time to save unwanted charges.

Know the interest you are receiving on your savings bank account
Once you have worked out the fees you pay, next thing you need to know is the interest you receive for keeping your money in your savings account. If you are not at all happy with the interest you are receiving, Google up on interest rates offered by different Indian banks or simply call your financial planner and ask them. If you feel you are not getting enough returns on your savings account, it is time for you start thinking of diversified investment options to maximise your returns.

Divide your cash into 2 simple buckets for optimal returns
Divide your month-end savings into two easy buckets. For instance, let’s assume you draw a salary of Rs. 40,000 per month. If you save Rs.10,000 by month end, leave Rs.5000 in your savings account and start a mutual fund SIP of Rs5000 with the remaining savings. This will help you accumulate Rs.60,000 by the year end in the savings account, which is a cushion of 1.5 months of your salary with returns in the range of Rs. 2000-3000 p.a. This will keep improving with time. Moreover, the returns on your monthly SIP of Rs.5000 @ 10-12% p.a. come in the range of Rs. 6000-7000. These returns will take shape of a commendable amount if you stay invested with a long-term horizon. Now, your cumulative year-end returns with this new strategy would be around Rs.10000. If you would have left Rs.10000 monthly savings idle in your bank account you would just have got around Rs.5000-6000. This bucketing strategy would help you almost double your returns with the same amount available at your disposal.

You must remember the golden rule – ‘More the savings, more your chances of diversification, more the returns.’ Therefore, don’t let all your money lie idle in your savings account, just plan investing it in different asset classes.


Life After Death

Deena Mehta
 
Mrs. Deena Mehta
Managing Director, ACMIIL
In India, a spiritual Guru talking about preparation for death is understandable where hundreds of discourses are on Sanyas, Moksha, Detachment, etc. However, a person in family bliss has many social and financial responsibilities. So, it is least expected of him to talk about preparation for death.

If we look at this issue of death, philosophically and spiritually all the wealth that we generate during our lifetime is left with our near and dear ones. We hope that it is of use to them and we are able to continue to support them financially even if we are physically absent.

Today, I wish to talk about some of the precautions that one needs to take to ensure that the wealth generated during your lifetime is inherited by the desirable person.

The first medium of invest-ment that any person makes is by way of a saving bank account or a fixed deposit. There are two options available - having a joint account and nomination. Having a second name in your account is very important. There is operational convenience when two persons operate the account further; the balance money is at the disposal to the next person named in the account.

Typically young boys and girls who take jobs fresh out of college open salary accounts through their company and do not take the trouble of adding another name. But in the long run such effort is well spent.

Also in case of bank lockers, generally the wife goes and opens the locker and husbands do not have time to go and sign.

Fixed deposits also suffer the same fate.

Banking Companies (Nomination) Rules 1985 permits banks to pay dues to nominees in the event of death of depositor(s) without asking for succession certificate or verifying claims of legal heirs. This simplifies settlement. There can be only one Nominee for a deposit account whether held singly or jointly. There can be two nominees for a jointly held locker.

The next medium of investment is often Life Insurance Policies.

It is important that premiums are paid on time and policies do not lapse. It is possible to get status of your policies from the insurance agent or the insurance company directly. All policies must have a nomination. In event there are changes in your family structure for example on getting married you may wish to change your nomination from your father / mother / brother to your wife or you may wish to change the same from your wife to your children. As life goes ahead, these changes should be made in your insurance policies also.

In event you mortgage your policy for loans, etc. the nominations gets void. After you repay the loan the original nomination should be resorted. This requires some fresh paper work. Nominations allows the nominee only to collect the money from the Insurance Company on behalf of Class I heir, which includes mother, spouse and children. Hence a will is necessary to divide these sums to the desired recipient.

Residential flats in housing societies must carry the nomination of the person to whom you wish to assign or put one to occupy. Lengthy court procedure is required in order to secure the rights of ownership by your desired occupant in event of improper paper work.

Shares and mutual funds are next class of assets, which are often neglected in terms of ensuring their perpetual usability. Several people have shares in their own name without any other name attached to it. On the other side, some people have many names and such persons may not be ready to part with the ownership in favor of the person that you desire to claim your inheritance. For example: shares may carry only the husbands name, or the shares may carry the husbands and his brother's or sister's name who are not ready to execute the transfer deeds in event of death of first holder. Court probates have to be obtained in order to direct the company to transfer shares to desired claimants if the shares are in single name. It takes 3 to 4 years to get such probates on average and there is a cost of legal fees, which adds to the burden.

Though nominations are given in depository accounts, the companies are not bound to follow these nominations and transfer the shares to the nominee. Nominations have been provided in the Depository Act in anticipation of changes in Companies Act. However, the Companies Act never got amended to include such nominations hence companies which are governed by the Companies Act would insist on court probates for transferring the shares.

If you have a depository account with single name then open another account with two names and transfer the shares from single account to the account where there are two holders. Never ever have shares in single name. Nominations should also be given in your provident fund and pension accounts. Claims can be easily processed if proper nominations have been filed. Please change the nominations as your family grows from time to time.

Many people believe that giving Power of Attorney would be sufficient to transfer your assets to your near and dear ones. It is important to know that the power of attorney expires moment a person dies. A non-existent person cannot delegate or transfer the power.

I Pray to God that all our investors have long and healthy life. Yet the pressures of urban living have led to lot of stress and serious impact on young people. The advice given above is not just relevant for untimely death but also for all those who are prudent and would want to preserve their wealth at all times.

Equity SIP Model Portfolio

Conceptually, an Investment Advisory is a service that provides investment advice and designs a strategy to manage a certain sum of funds. Here, we have provided an investment strategy in the form of Equity SIP model portfolios. With the basic understanding that investors can be broadly classified as high, medium and low risk takers, we designed Aggressive, Moderate and Defensive Portfolios respectively, as on January 2013. Each portfolio basket requires an investment of aproximately Rs.10,000 per month and is a good way of accumulating fundamentally sound stocks for a long term horizon. These portfolios will be reviewed half yearly and any changes will be communicated accordingly.


Benchmark Return From






Nifty 30.60% 12/31/2012






NIFTY 100 29.80% 12/31/2012















Aggressive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 30 Nov, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Tata Motors Ltd Automobile 10.43% 2 404.15 808.3 0.18 -11.41% -2.01%
2 ICICI Bank Banking 9.02% 3 307.55 922.65 0.23 22.46% 5.25%
3 LIC Housing Finance Ltd NBFC 6.78% 2 581.6 1163.2 0.11 50.21% 5.36%
4 VEDL Diversified 3.44% 4 295.45 1181.8 0.03 62.71% 2.13%
5 State Bank of India Banking 2.37% 3 320.35 961.05 0.10 30.13% 3.14%
6 ONGC Ltd Oil & Gas 4.86% 3 180.65 541.95 0.06 -31.57% -1.92%
7 Grasim Industries Ltd Diversified 13.21% 2 1169.9 2339.8 0.13 86.66% 11.45%
8 Adani Ports Port & Logistics 3.69% 3 398 1194 0.03 48.30% 1.55%
9 BHEL Capital Goods 2.46% 4 92 368 0.02 -37.89% -0.70%
10 Tata Steel Ltd Metals & Mining 6.04% 2 694.15 1388.3 0.10 90.86% 9.42%
11 Sun Pharmaceuticals Inds. Ltd Pharmaceuticals 9.12% 1 539.95 539.95 0.12 -19.64% -2.44%
EXIT Return from Exited Stocks






18.91%

Total
100%

11409 1.30
51.62%

Dividend (Aprox.)






1.50%











Benchmark Return From






NIFTY 200 37.20% 12/16/2013





Moderate Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 30 Nov, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 HDFC Bank Banking 10.59% 1 1853.7 1853.7 0.09 93.66% 8.37%
2 M&M Financial Services Ltd NBFC 4.84% 2 438.4 876.8 0.06 58.24% 3.46%
3 VEDL Diversified 3.78% 5 295.45 1477.25 0.07 56.71% 4.17%
4 Ambuja Cement Ltd Cement 4.19% 3 262.5 787.5 0.04 37.39% 1.58%
5 ITC Ltd FMCG 6.23% 2 256.05 512.1 0.06 -16.14% -1.02%
6 Infosys Ltd IT services 3.21% 1 976.1 976.1 0.03 -5.39% -0.15%
7 Zee Entertainment Ent. Ltd Media 6.81% 2 568.15 1136.3 0.07 58.54% 4.11%
8 Hindalco Inds. Ltd Metals & Mining 3.36% 3 240.45 721.35 0.05 81.78% 4.31%
9 Reliance Inds. Ltd Oil & Gas 9.58% 1 921.55 921.55 0.09 -1.91% -0.17%
10 Biocon Ltd Pharmaceuticals 10.71% 2 432.15 864.3 0.08 -23.25% -1.86%
11 Bharti Airtel Ltd Telecom 7.72% 2 496.45 992.9 0.06 49.97% 3.05%
EXIT Return from Exited Stocks






22.08%

Total
100%

11119.85 0.79
49.44%

Dividend (Aprox.)






1.50%











Benchmark Return From






NIFTY 200 37.20% 12/16/2013















Defensive Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 30 Nov, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Glenmark Pharma Pharmaceuticals 4.17% 1 564.1 564.1 0.04 -36.69% -1.41%
2 HDFC Bank Banking 9.55% 1 1853.7 1853.7 0.08 93.70% 7.55%
3 Cummins India Ltd Capital Goods 6.78% 1 867.65 867.65 0.06 17.79% 0.98%
4 Dabur India Ltd FMCG 5.84% 2 344.3 688.6 0.04 52.69% 2.32%
5 Tech Mahindra IT services 2.70% 1 489.25 489.25 0.03 -6.62% -0.17%
6 TCS Ltd IT services 20.80% 1 2637 2637 0.17 16.62% 2.89%
7 Hind. Unilever FMCG 3.99% 1 1272.45 1272.45 0.03 49.19% 1.48%
8 Coal India Mining 1.74% 2 275.8 551.6 0.01 -11.17% -0.16%
9 Lupin Ltd Pharmaceuticals 12.43% 1 817.7 817.7 0.11 -39.47% -4.23%
10 Pidilite Ind Specialty Chemicals 1.86% 1 842.2 842.2 0.02 26.95% 0.40%
EXIT Return from Exited Stocks






28.48%

Total
100%

10584.25 0.60
39.64%

Dividend (Aprox.)




0.84
1.50%

Total


















Benchmark Return From






NIFTY Midcap 44.70% 12/16/2013















Mid Cap Portfolio
Sr. No. Scrip Name Sector Weight Basket Qty Price as on 30 Nov, 2017 Total Value Portfolio Beta Return
% Return Wt. Return
1 Motherson Sumi Systems Ltd Auto Ancillaries 8.41% 3 365.2 1095.6 0.13 92.13% 12.23%
2 Kalpataru Power Power Transmission 4.78% 3 443.8 1331.4 0.04 82.11% 3.42%
3 Va Tech Wabag Ltd Capital Goods 16.28% 2 603.7 1207.4 0.12 25.29% 3.00%
4 PFS NBFC 3.32% 15 37 555 0.04 -6.46% -0.24%
5 Gateway Distriparks Logistic 4.76% 2 250.8 501.6 0.04 -14.97% -0.55%
6 Aia Engineering Ltd Capital Goods 10.14% 1 1473.55 1473.55 0.03 32.97% 0.94%
7 Apollo Tyre Auto Ancillaries 4.22% 4 250.7 1002.8 0.05 38.54% 1.88%
8 Camlin Fine Chemical 2.40% 6 108.3 649.8 0.02 6.08% 0.15%
9 JK Cement Ltd Cement 6.89% 1 999.55 999.55 0.07 80.10% 5.58%
10 DHFL NBFC 6.10% 4 616.55 2466.2 0.11 151.25% 16.45%
11 Majesco Ltd* IT 5.60% 2 537.7 1075.4 0.10 33.99% 3.23%
12 Return from Exited Stocks






14.85%

Total
100%

12358.3 0.96
62.44%

Dividend (Aprox.)




1.09
1.50%












About Us

Company History & Background
Established in the year 1986, Asit C. Mehta Investment Interrmediates Ltd. (ACMIIL) is one of the most trusted and reputed brokerage houses known for providing investment related services in the capital market, money market and depository services in India. The company has been jointly promoted by noted stock market professionals, Mr. Asit C. Mehta and Mrs. Deena A. Mehta and is a part of Mumbai-based Nucleus Group of Companies. The other group companies are engaged in commodity, derivatives, development of databases, back-office applications for banks, corporate document management solutions and Geographical Information Systems (GIS).
Corporate Purpose
Envisioned to be a "Trusted Financial Intermediary", the group has etched out a very specific corporate purpose - "To reach appropriate financial products, services and solutions to every Indian entity."
Our Beliefs

  • That every household can, should and will need to participate in the financial markets directly or indirectly to protect their financial interests.
  • That regulatory/legal compliance ensures economic sustainability.
  • That transparency and fairness are the cornerstones of all dealings.
  • That knowledge rather than capital is the key driver of this business.
  • That product, process and technology led innovations are necessary preconditions for continuously adding value to all our constituents.
  • That given the environment every person will realize her/ his potential.
  • That people are driven by causes.
The FIRSTS to our Credit
  • One of the First limited liability Companies to acquire membership on Bombay Stock Exchange (BSE).
  • One of the First multiple seat holders and multiple exchange members.
  • One of the First private VSAT network users.
  • First to utilize the franchisee business model for Associates.
  • First to achieve the ISO quality certification for business processes from SGS. Currently we are a "ISO 9001:2008" certified company.
  • Company Managing Director Mrs. Deena A. Mehta was the first woman to be elected to the governing board of the BSE and the first and only woman to be the President of BSE (post corporatization).

Contact Us

Asit C Mehta Investment Interrmediates Ltd.
Nucleus House, Saki-Vihar Road,
Andheri (E), Mumbai 400 072.
Maharashtra. India.
Telephone : 91-22-28583333,66798315,28577898
Fax : 91-22-28577647
Email : helpdesk@acm.co.in
For corporate level general communication, you need to email at acmiil@acm.co.in
Toll Free Number