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Posts Tagged ‘India’

There are many unknown facts about India Properties.In a country where there is traditionally the predominance of the agricultural sector, that sector continues to be greatest source of employment generation. It may be an unknown fact that the Indian real estate sector is the second greatest employment provider in the country. This sector significantly contributes to the national income and Gross Domestic Product and it is expected there will be an average 10% increase annually in these aspects. The recent slump in the property market in India consequent upon the global economic downturn is reported to be evening out and the industry is projected to register considerable growth in the coming years. The observation of the international property consultants Jones Lang LaSalle is significant in this context: “economic recovery during CY 2010-11 is likely to reinvigorate the interest of foreign investors in India’s real estate market. We expect enhanced capital inflow in the real estate sector in the medium-to-long-term”. Again, Jones Lang LaSalle says, the faster economic growth of the nations like India, China, Brazil and Russia will pay the way for faster recovery of the real estate sector in those countries when compared with countries like the US and the UK.

Yet another unknown fact about Indian real estate is underlying in Jones Lang LaSalle’s report which says India property market will be in an upswing from the last quarter of 2009 and over the next 5 years and the industry will attract up to US $ 12.11 billion investment. Again, an estimably 150 square feet of office space will be acquired by the IT and ITES sector alone by then year 2010. Another great procurer of office spaces will be the organized retail marketing sector. It is estimated that this sector will be in need of an additional 220 million square feet space by 2010. This growth momentum will sweep across all tier-1 and tier-2 cities. Further, a joint study conducted by Jones Lang LaSalle Meghraj and Cushman & Wakefield India in association with Shopping Centres Association of India, christened Mall Realities India 2010, says that during 2009 and 2010, a projected 100 malls of over 30 million square feet will be opened in India.

It would be an unknown fact about in real estate India, that in the construction industry Indian companies are making double the profitability for their projects when compared with their US counterparts. Indian construction firms are making on an average 18 percent profit while the US companies are making only half of that. Another unknown fact is that foreign institutional investors (FIIs) are very much confident in investing in Indian real estate and the there has been a whopping 400 percent increase in the past six months.

You can buy real estate property in India at amazing prices.Buying real estate,as in the case of many other products, requires special skill and experience.Of course,the means and methods of stricking a deal in property are very much different from other products and services.For the prudent and savvy real estate investor,there are many ways in which he can buy property at profitable prices.Among many things,timing is the most important factor in property investment.Again, the consumer behavior and preference,income level of the prospective buyers,sector-specific parameters like residential or commercial,etc.may play as micro factors.Location and developmental possibilities are other parameters to be taken into account. If you are seriously considering that you should buy real estate property in India at amazing prices,you need to look in to the nuances of market fluctuations vis-vis the peculiarity of time factor in the context of the territory in which you wish to invest.For example,in the metros and other industrial centers in India during the peak time of the recent recession, there was considerable decline in the prices.

You should be savvy and prudent enough to assess and speculate the existing trend and arrive at your own finding whether the trend is going to last long or whether it is going to be worse, or whether it is a transient and temporary phenomenon.If you are shrewd enough to speculate that it is a short-run phenomenon, you can invest and when the market bounces back in the immediate future, you gain and you realize that it was at amazing prices that you could buy the property. Another important factor to be considered when you want to buy real estate property in India at amazing prices is the location and scope for developmental activities.For instance,in a semi-urban center with considerable developmental scope, you should apply your prudence and commonsense to see the various developmental needs of the center.Then you should foresee the possible locations where these projects may come up.Speculating on these you can invest in areas which are underdeveloped but affords immense scope for development.If your analysis and assessment are wise enough and you invest accordingly, it will turn out to be profitable and you will realize that you could buy the property at amazing prices.Hence,it is evident that if you want to buy property in India at amazing prices,you need to analyze facts and apply thoughts in all possible perspectives and arrive at the best of decisions.

With the ever growing mutual fund schemes in India it is quite difficult to pick the right one that suits your needs and requirements. Each fund has a different strategy to focus on when investing. 

You can choose the one which meets your financial objectives. It’s always suggested you know the scheme well before deciding to invest. Don’t blindly invest on somebody’s guidance.
You need to research on the possible growth of your fund depending on the history and whether your financial objective will be met by choosing a particular scheme. 
It’s safe to invest in blue chip companies as they are already well established and carry low risk. There are plenty of schemes of mutual funds available in the market and we explain some of them in this article.

Types of mutual funds in India:

Open ended schemes: These do not have fixed maturity. Liquidity is the key feature. Here units can be bought / sold at net asset value (NAV) related prices whenever required.
 
Close ended schemes: These schemes have a fixed maturity period i.e. from 2 to 15 years. Need to be invested at the initial issue and you can buy / sell units on the stock exchange thereafter.
 
Interval schemes: This scheme is a combination of features which is both close ended and open ended. They may be traded in the stock exchange, open for sale or redemption at NAV related prices in predetermined intervals.
 
Growth Mutual fund: This scheme will provide you capital appreciation in medium / long term. Under this scheme the majority of the funds will be invested in equities even if there is a short term decline in anticipation of future appreciation.
 
Growth mutual fund is useful for people who want to invest in long term gains and is not for those who seek regular income or short term gains.
Income schemes: Under this scheme you can hope for regular and steady income. The funds will be usually invested in fixed income securities such as corporate debentures and bonds. However there is a limited scope for capital appreciation in these schemes. This scheme is ideal for retired people and for those who regular income.
 
Balanced schemes: These schemes provide capital growth as well as periodical income they earn to the investor. They would invest a part of the fund in stocks and rest in the fixed income securities as mentioned in the offer documents. These schemes would be ideal for those who seek moderate growth and income.
 
Money market / liquid schemes: This scheme has multiple benefits. It offers easy liquidity, capital preservation and moderate income. Here the funds are invested in safer and short term instruments. Under there schemes returns may be fluctuating from time to time depending upon the interest rates in the market.
 
Tax saving schemes: These are also known as tax mutual funds since they are mainly focus on saving tax. Tax incentives are offered to the investors under tax laws to promote long term investments in equities in terms of mutual funds.
 
Tax mutual funds are ideal for people who seek tax incentives.

Are you an NRI and looking to invest in mutual funds in India? Read on, this article will guide with some of the options available to you in India to help you in choosing the right one. Mutual fund investment has gained momentum in India over past few years and it is a wise decision to invest in mutual funds for getting good returns.

Of late, India has emerged as one of the most productive place for investment across the globe. The reason why more and more people want to invest their money in India is because of the fast growth which India is witnessing in the recent time.

The economical grow quite evident with the kind of confidence the investors are showing towards India as a major investment hub.

With so many investors wanting to invest their money in mutual fund India, it surely has become the spotlight of investing map in the world. The investors feel that their money is in the safe hands as mutual funds carry minimal risks when compared to equities and therefore it is a good bet for long term gains.

People of Indian origin / NRIs are eligible to invest in mutual funds in India after taking general permission from Reserve Bank of India. 

Huge capital returns are encouraging more and more NRIs to invest in mutual funds of late and the results are also overwhelming. 

So how do you go about your investing your money in mutual funds in India? Just read rest of the article.

As per the provisions of schedule 5 of the foreign exchange management an NRI can invest in most of the mutual funds India offers. 

How can NRI invest in mutual funds?

An NRI can invest in mutual fund schemes in India through the money lying in the credit of NRE/NRO account or may be through banking channels which are approved by the authority. 

All you’ll need to do to invest in mutual fund is by submitting a duly completed application form along with cheques or DD to investor service center. 

To invest on mutual funds, it is compulsory to have an NRE bank account. General permission has been granted by the Reserve Bank of India to offer mutual fund, subject to few conditions.

These conditions are:

The investment amount has to be received by inward remittance through normal banking channels or through debit to an NRE Bank account of the investor.
The net amount of the interest or dividend and proceeds of units should be remitted through normal banking channels or be credited to NRE bank account of the investor as mentioned by him / her with a condition of payment of applicable tax.
 

Tax liability for income received from NRI mutual fund:

Section 10 (35) of Income tax Act, 1961 defines that income received from mutual fund investment under section 10 (23D) is exempt from income tax. Therefore all dividends are tax free on NRI mutual fund held by the investor. However any tax that is applicable will be deducted at source.

Mutual funds are basically instruments for investing money. People want to invest their money in top mutual funds and allow their money to grow. It is because the bank rates have fallen down considerably in last few years. If you want to increase the value of your money over a period of time, then investing on mutual funds is a wise decision.

However, it is crucial to understand where and how we are investing our own hard earned money. Someone has truly said “Spend like a child, Offer like young and save like elderly people”. When you try saving your money, you will need to have wisdom and lot of patience. You will also need to be very careful.

Stock market investments are one the best ways to save money. However, not every investor is well informed about the volatile market situation and may land up in heavy losses. Mutual funds are therefore considered to be the best option where the fund manager does it all for you.

There are lots of mutual funds in India offering various options to invest your money. Mutual funds are cost effective and very efficient. Investors can purchase or sell stocks at a much cheaper rate through mutual funds. You may not be able to get lower trading costs if you tried selling or buying stocks on your own.

The biggest advantage of mutual funds is that it provides diversification. Mutual funds in India are divided into the following types:

•    Open-end Funds – Money which is raised from the shareholders and invested in a group of assets is known as open-end funds.
•    Closed-End Funds – The number of shares issued is fixed through an initial public offering in closed-end funds.
•    Large-Cap Funds – In this type of funds money is invested in large blue chip companies.
•    Mid-cap Funds – Money is invested in medium sized or small sized companies in this kind of mutual fund.
•    Balanced Funds – Mutual funds that buys a combination of short-term bonds, preferred stocks and common stocks is known as balanced or hybrid funds.
•    Equity Funds – In this type of fund the pooled amount of money from the public companies is invested. It is also known as stock mutual funds.
•    Growth Funds – In this type of mutual funds capital appreciation by investing in growth stocks is the main aim.
•    No load Funds – Load funds and No Load funds are two types of mutual funds.
•    Exchange Traded Funds – Unlike conventional mutual funds, ETF’s are traded on an exchange.

There are few other classifications also like the International mutual funds, index funds, sector funds, regional mutual funds or money market funds. You can find the list of top mutual funds and then invest money in those. These days information is readily available on any of the newspapers, financial magazines, news and finance websites etc.

Mutual fund investments get affected by the volatility of the market activity. Inflation, interest rate changes and the economic scenario largely affects the mutual funds.

Some of the top mutual funds companies in India are:
•    Reliance Mutual Funds
•    ICICI Prudential
•    HDFC
•    DSP Merrill Lynch
•    SBI Mutual Funds
•    Franklin Templeton
•    Sundaram BNP Paribas

You will need to keep a track of latest market value of mutual funds in India if you want to invest money in mutual funds. Saving is the best way to prepare you for the future.