Long Term gains in Debt Mutual Funds - Calculate tax with Cost Inflation Index !

For fellow Indian Investors, who have long term gains with the sale of Debt Mutual Fund Units, you got to pay either 10% of LT Gains (or) 20% of  LT gains post Indexation benefits - whichever is lower as Tax (along with applicable cess, surcharge).

Given the higher inflation range these days, typically 20% of  LT gains post Indexation benefits will be the lower one compared to the other.

To know Cost Inflation Index for the year 2010-11, 2011-12 please refer to the following link

http://taxguru.in/income-tax/cost-inflation-index-meaning-and-index-for-all-the-years.html

Financial Planning - Who offers Services with right price ?

Last year I went for the Financial Planning exercise with the help of PersonalFn. I paid close to Rs 11,000 for Initial subscription of 1 year.

* This amount in my opinion was too high given my networth, the total AUM of * laks in MFs, my pretty simple financial profile and financial goals.

* When I asked specifically, I was surprised to know that there are *only* TWO executives in PersonalFn to support the ~400 clients in Chennai/Bangalore/Hyderabad.

* When I compared the data for Annual charges for Financial Planning services, PersonalFn's charges are relatively on the higher side.

Inspite of these negative reasons, somehow the Executive managed to convince me assuring lot of long term benefits and discount in future renewal charges.

It turned out to be a horrible experience. I had multiple rounds (4 or 5) of discussions with their Executive. Two of them in person and the remaining over phone / emails. The Financial Planning document I finally received was way below my expectations. I was wondering why I paid 11k for that.

Finally I escalated the issue to the Head of the Division and PersonalFN CEO.
With their intervention, complete rework was done and I got a very good Financial Planning Document which had,

1. Cash Flows till my retirement
2. All my long term goals during my lifetime including Retirement, Kid's Education, Child's Studies and marriage etc.
3. The money to invested year on year and in what avenues like MFs, FDs etc.
4. My income levels and the increments needed year on year to meet the requirements.

Now the subscription period is about to be over. For renewal, again I had to pay 12.5K per year. With the initial plan sorted out already, in the coming years, all I need is just their recommendations on which Mutual Funds I should invest in and the once in 6 months review of the portfolio. Just 2 meetings for the whole year.

Obviously I don't want to pay 12.5K per year for this service.

Don't we have Firms offering Financial Planning Services at reasonable prices ?.
In case you have suggestions, please do let me know.

Income Funds

Income Funds - Ideal choice for volatile times?

http://www.moneycontrol.com/india/news/mf-experts/income-funds-ideal-choice-for-volatile-times/386337

All about Gilt Funds !

One good article at,

http://www.rediff.com/money/2009/jan/22perfin-learn-all-about-gilt-funds.htm

Debt Funds : Liquid vs Liquid Plus funds.

Came across this article by Personalfn at Rediff.

http://www.rediff.com/money/2008/sep/15perfin1.htm

FMP / Debt Funds : Gains of Double Indexation

Came across a interesting article at

http://new.valueresearchonline.com/story/h2_storyView.asp?str=9540

No Entry Load for the MF schemes

SEBI made an announcement last week.
It said:
"Transparency in payment of commission to Mutual Fund distributors:
There shall be no Entry Load for the schemes, existing or new, of a Mutual Fund. The upfront commission to distributors shall be paid by the investor to the distributor directly. The distributors shall disclose the commission, trail or otherwise, received by them for different schemes/ mutual funds which they are distributing or advising the investors.".

http://www.moneycontrol.com/india/news/mf-news/sebi-scraps-entry-load-for-mfs-cuts-feesintermediaries/402314

This has *not* come to effect as of date (according to MF Distributor thru whom
I have buying MFs).