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Bajaj Finserv MF extends NFO closing date for Nifty 1D Rate Liquid ETF to May 27

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Finserv Mutual Fund has announced an extension of the new fund offer (NFO) closing date for the Bajaj Finserv Nifty 1D Rate Liquid ETF. Originally set to close on May 16, 2024, the closing date has been moved to May 27, 2024.

The Bajaj Finserv Nifty 1D Rate Liquid ETF is an open-ended exchange-traded fund designed to track the Nifty 1D Rate Index.

It aims to offer investors a low-risk investment option with relatively low interest rate and credit risk, while maintaining a high level of liquidity.

The ETF will primarily invest in tri-party repo on government securities or T-bills/repo and reverse repo, closely mirroring the returns of the Nifty 1D Rate index, subject to tracking error.

Targeted towards investors seeking short-term savings solutions, the ETF requires an initial investment of ₹5,000, with subsequent investments allowed in multiples of ₹1.

It will be managed by Siddharth Chaudhary and Nimesh Chandan, and there will be no exit load for units sold through the secondary market on the stock exchange.

The extension of the NFO closing date provides investors with additional time to consider this investment opportunity.

The Bajaj Finserv Nifty 1D Rate Liquid ETF presents an option for those looking for stability and liquidity in their investment portfolio, particularly for short-term savings.

However, investors are advised to conduct thorough due diligence and consider consulting with financial advisors to assess whether this ETF aligns with their investment objectives and risk appetite.

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How to stay cyber-safe this income tax season? Here’s your checklist for secure ITR filing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As the tax filing season for FY23-24 is in full swing, individuals should be vigilant against rising cyber threats. With cybercriminals employing increasingly sophisticated tactics, securing personal and financial information has become paramount.

Here’s a comprehensive checklist of red flags to look out for during tax season:

Understanding cyber threats

Cybercriminals are leveraging digital payment trends to perpetrate scams such as malware attacks, phishing scams, and identity theft.

“With AI-powered cons becoming more convincing, individuals should remain cautious of suspicious communications,” said Vipin Surelia, Vice President and Head of Risk Services at Visa.

Cyber-attacks can result in identity theft, credit score damage, and financial losses for individuals. Businesses are also vulnerable to business email compromise (BEC) scams, leading to lawsuits and investigations.

“Despite expressing confidence in detecting scams, consumers often overlook red flags. Cybersecurity education plays a crucial role in empowering individuals to recognise and avoid potential frauds,” Surelia told CNBC-TV18.com.

Securing personal information

When filing taxes online, individuals should refrain from sharing sensitive details with third parties.

They should use secure e-filing services, avoid public Wi-Fi networks, and activate two-factor authentication for enhanced security.

Public Wi-Fi networks are particularly vulnerable to interception by cybercriminals, making them risky for conducting tax-related activities.

Enhancing password security

One crucial aspect involves enhancing password security.

It’s imperative to create strong, unique passwords for tax filing accounts and regularly update them.

Employing a password manager can aid in securely storing and managing login credentials.

Email safety practices

Maintaining caution regarding email safety is paramount.

With cybercriminals often using phishing tactics, individuals should be wary of unsolicited emails claiming to be from the tax authorities or financial institutions.

Clicking on links or downloading attachments from unknown senders can expose devices to malware or phishing attempts, potentially compromising sensitive information.

Regular software updates

Regular software updates play a vital role in bolstering cybersecurity defences.

Individuals should ensure that all devices used for tax filing have up-to-date antivirus software and security patches installed.

Regularly updating operating systems, web browsers, and other software is essential to patch vulnerabilities and safeguard against cyber threats that exploit outdated software.

Monitoring bank accounts regularly

Regular monitoring and reporting of financial accounts are essential to detect and address any suspicious activity promptly.

Monitoring bank and credit card statements for unauthorised transactions or suspicious activity enables individuals to take immediate action in case of suspected fraud.

Tokenisation for data protection

Leveraging advanced security features like tokenisation anonymises data and protects personal financial information.

This technology replaces sensitive account information with unique digital identifiers, reducing the risk of data breaches.

Data encryption adds an extra layer of protection to sensitive tax documents and financial information.

Encrypting data stored on devices or transmitted over the internet ensures that even if intercepted, the data remains unreadable to unauthorised parties.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold prices near one-month high: What’s leading this rally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices saw an uptick in India on Thursday, May 16, with MCX Gold futures for June expiry inching 0.02% higher at 73,117.00 per 10 grams. According to GoodReturns, the price of gold for 24 karat gold (999 gold) increased by ₹40 to ₹74,020 per 10 grams.

Internationally, gold prices showed a similar trend buoyed by a weaker dollar and declining bond yields following the release of US consumer inflation data.

Spot gold rose by 0.2% to $2,391.78 per ounce, nearing its one-month high.

US gold futures saw a 0.1% increase to $2,396.10.

The recent data indicating a moderation in inflation has boosted expectations for a Federal Reserve rate cut as early as September.

This has led to a drop in the dollar and Treasury yields.

Additionally, this has made gold more attractive to investors, as it tends to perform well in times of economic uncertainty and lower interest rates.

Tim Waterer, chief market analyst at KCM Trade, remarked, “With inflation coming off the boil, gold is effectively making hay while the sun is shining and looks poised to capture the $2,400 level.”

However, he also cautioned that potential rebounds in the dollar or treasury yields could pose challenges for gold prices in the near term.

Rahul Kalantri, VP Commodities at Mehta Equities highlighted that gold may find support at $2,365-$2,348 per ounce with resistance at $2,404-$2,422 per ounce.

In India, gold is supported at ₹73,630 per 10 grams and ₹73,410 per 10 grams with resistance at ₹74,190 per 10 grams and ₹74,390 per 10 grams.

In terms of outlook, Saish Sandeep Sawant Dessai, Analyst at Angel One, highlighted that gold prices are likely to stay afloat.

“This will be driven by a weaker dollar and lower Treasury yields amid growing expectations of a Federal Reserve rate cut,” he said.

As gold continues to be perceived as a safe haven asset amidst economic uncertainties, investors should capitalise on potential opportunities in the precious metals market.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Americans may soon need to carry fewer debit and credit cards in their wallets: Here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Visa, one of the world’s leading payment technology companies, is gearing up for a major transformation in how Americans manage their money. With a slew of changes on the horizon, the days of bulky wallets overflowing with numerous credit and debit cards may soon become a thing of the past for Americans.

Here’s a closer look at what’s in store:

Streamlined payments with one card

Imagine having all the bank accounts linked to just one physical card.

That’s precisely what Visa is envisioning.

By consolidating multiple accounts onto a single card, consumers can bid farewell to the hassle of carrying around an assortment of cards from different banks.

Whether it’s making purchases using funds from a debit or credit account, this approach may give convenience and simplicity to everyday transactions.

The Asian success story coming stateside

While this concept might sound futuristic to some, it’s already a reality in markets like Asia.

And now, it’s set to make its debut in the United States.

Scheduled for launch this summer, Visa’s initiative will be introduced in collaboration with key partners such as Affirm, a player in the “buy now, pay later” sector.

Enhanced security measures

As online shopping continues to soar in popularity, so does the risk of cyber fraud.

Visa is rolling out advanced security features to safeguard consumers’ financial information.

From incorporating biometric authentication methods like fingerprint and facial recognition to supporting encryption protocols, these measures are designed to fortify the integrity of online transactions.

Seamless integration with digital wallets

Gone are the days of entering card details for online purchases.

Visa is simplifying the process by enabling seamless integration with digital wallets through a simple tap-and-go mechanism.

By allowing consumers to add their cards to mobile wallets with a quick tap, Visa is ushering in a new era of frictionless payment experiences that align with the evolving preferences of tech-savvy consumers.

With inputs from AP

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This tax saving mutual fund scheme will give dividends today: Do you own it?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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DSP Mutual Fund has declared dividends in its ELSS Tax Saver Fund. Investors will receive a dividend of ₹0.580 per unit, with the record date set as May 16, 2024.

The fund house has declared dividends in both its DSP ELSS Tax Saver-IDCW and DSP ELSS Tax Saver Direct-IDCW schemes.

DSP ELSS Tax Saver Fund is mandated to invest at least 80% of its assets in equity stocks.

It offers tax exemption under Section 80C of the Indian income tax laws.

As per this section, investments of up to ₹1.5 lakh in a financial year in eligible securities are exempt from tax.

According to Value Research, the net asset value (NAV) of the DSP ELSS Tax Saver Fund is ₹118.2560 as of May 16.

It is 17 years and 4 months old. It has delivered 15.32% returns since inception.

Understanding mutual fund dividends

Mutual fund dividends are distributions of profits made by mutual funds to their investors.

These distributions can occur regularly or periodically, depending on the fund’s performance and the decision of the fund manager.

Mutual funds typically generate income from various sources such as dividends from stocks, interest from bonds, and capital gains from the sale of securities.

Who can get mutual fund dividends?

Any investor who owns units or shares in a mutual fund on the record date is eligible to receive dividends.

However, it’s essential to note that not all mutual funds pay dividends.

Some funds may choose to reinvest profits back into the fund rather than distributing them to investors.

How do mutual fund dividends work?

When a mutual fund declares a dividend, it specifies the amount to be paid per unit or share.

This amount is usually expressed in terms of rupees or a percentage of the fund’s net asset value (NAV).

The NAV is the per-unit market value of the fund’s assets minus its liabilities, calculated at the end of each trading day.

On the record date, the mutual fund determines which investors are eligible to receive the dividend based on their holdings on that date.

Investors who own units on the record date will receive the dividend payout in their bank accounts or through other specified modes of payment.

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SEBI’s new KYC relaxation allows MF investors with ‘on-hold’ accounts to redeem funds

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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To simplify the Know Your Customer (KYC) process, the Securities and Exchange Board of India (SEBI) has announced relaxed norms for mutual fund investors.

One significant change is the extension of a one-year breather for non-resident Indians (NRIs) to complete their KYC requirements.

This means NRIs now have additional time to fulfil their KYC obligations.

SEBI has made provisions to allow NRIs to use their Aadhaar for KYC purposes until April 30, 2025.

Also, mutual fund investors will now be validated through either email or mobile verification instead of both, simplifying the validation process.

Non-verified investors will be permitted to redeem their investments, subject to due diligence.

These changes come as a relief to investors whose KYC status is currently ‘on hold’, allowing them to access their funds through redemptions.

Previously, accounts flagged as ‘on hold’ due to incomplete KYC compliance faced restrictions on engaging in transactions within mutual funds, including buying or selling units.

These accounts had undergone KYC processes using documents such as electricity bills, telephone bills, and bank account statements.

However, under SEBI’s latest directive, these documents are now considered invalid for KYC purposes.

Officially valid documents for KYC include an Aadhaar card, passport, and voter ID card.

Despite these new relaxations, there remains uncertainty regarding the implementation of these changes.

The exact interpretation of SEBI’s circular is yet to be determined, with the mutual fund houses expected to discuss the matter further in a meeting on Thursday (May 16).

SEBI’s relaxation is being viewed as temporary, indicating that investors will still need to validate their KYC eventually.

The circular issued by SEBI outlines the modifications to the Risk Management Framework at KYC Registration Agencies (KRAs).

The simplified framework aims to ease transaction processes for clients based on feedback from stakeholders in the securities market.

To ensure compliance, exchanges, depositories, and intermediaries are required to implement necessary technical changes in their systems by May 31, 2024.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Life announces unprecedented ₹3,722 crore bonus: What it means for you

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Life on Wednesday (May 15) announced its highest-ever bonus of ₹3,722 crore on participating plans. This bonus will benefit over 22.23 lakh policyholders.

Participating or par plans are a distinctive type of life insurance policy that provide policyholders with profit-sharing benefits in the form of bonuses.

These plans allow policyholders to share in the company’s profits, reflecting a mutual partnership between the insurer and policyholders.

Out of the total bonus amount, ₹2,798 crore will be disbursed to policies in the current financial year, either as maturity bonuses or cash bonuses.

The remaining bonus will be payable in the future upon policy maturity, death or surrender.

Vibha Padalkar, MD & CEO, HDFC Life said, “Life insurance policies are designed for the long term, and bonuses serve as a reward for the loyalty of policyholders throughout the policy term.”

Understanding life insurance bonus

Some life insurance policies allocate a share of their profits as a bonus and pay to the insured person when they reach certain milestones.

Just like employees receive bonus as extra amount or reward over and above their base salary, a similar concept exists in the realm of life insurance companies.

Firms make bonus payments to their policyholders on a yearly basis beyond the basic sum assured they are entitled to.

The bonus is dependent on several factors such as return on company assets, bonuses declared in the previous year, claims filed, expected interest rates in the future and several other estimates.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DSP MF launches Nifty Bank index fund amid banking sector revival: Should you invest?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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DSP Mutual Fund on Wednesday (May 15) announced the launch of the DSP Nifty Bank Index Fund. This is an open-ended scheme tracking the Nifty Bank Index. The fund offers investors an opportunity to get exposure to the 12 most liquid and large Indian banking stocks through a single fund, the mutual fund house said.

The new fund offer (NFO) of the scheme will close on May 27, 2024.

About Nifty Bank Index

The Nifty Bank Index is diversified with a composition of private as well as public sector banks.

Historically, the Nifty Bank Index has delivered much better long-term returns compared to the broader Nifty 50 Index.

Since January 2000, the Nifty Bank Index has grown 67 times compared to the Nifty 50 which grew 21 times over the same period.

However, the Nifty Bank Index is currently witnessing the longest stretch of underperformance compared to the Nifty 50 on a five-year rolling basis which has led to it being relatively better-placed in terms of sector valuations versus their historical averages as well as relative to other sectors.

Key financial metrics for banks like return ratios and capital adequacy have also been improving steadily.

Return on Assets (RoAs) of Indian banks have improved over three times from the lows of 2018.

Non-performing assets (NPAs) are also at one of the lowest levels.

With the sector trading at just a 5% premium to its 10-year average price-to-book multiple, and NPAs now at multi-year lows, it offers a decent entry point for investors to benefit from the banking sector’s likely resurgence.

Investment considerations

Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund, emphasised the importance of a robust banking system for economic growth and development, particularly in a rapidly growing economy like India.

He recommended the DSP Nifty Bank Index Fund to investors with longer time horizons, citing the long-term performance of the Nifty Bank Index.

The favourable outlook for the banking sector further underscores the potential for the DSP Nifty Bank Index Fund NFO.

However, investors must tread cautiously, as the fund’s risk profile is reflected in its ranking on the Standard SEBI Risk-O-Meter as a Very High-Risk Fund.

The predominant exposure to equities, coupled with the concentration on the banking theme, amplifies the fund’s risk profile.

Moreover, there is the added risk of entering the market at all-time high levels.

Additionally, as an index fund, there is the inherent risk of tracking errors.

This could impact the fund’s returns relative to the underlying index.

In conclusion, investors should carefully assess their risk tolerance and investment horizon before considering this fund.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow