Financial Products

Mutual Fund offers an opportunity for long term wealth creation. At Parasram we ensure that your investment are in safe hands backed by quality research and based on the needs of the client according to his Income, Savings, Age, Family Background etc. We offer you a simple & convenient way to invest and manage your personal finance with over 2000 funds approximately. You can start with as little as Rs.500 when you start a Systematic Investment Plan or Rs.5,000 if you are looking for a lump sum investment.

WHAT IS MUTUAL FUND?

• A mutual fund is the trust that pools the savings of a number of investors who share a common financial goal.
• You can start with as little as Rs.500 when you start a Systematic Investment Plan or Rs.5,000 if you are looking for a lump sum investment.
• The money thus collected is then invested by the fund manager in different types of securities. These could range from shares to debentures to money market instruments, depending upon the scheme’s stated objective.
• It gives the market returns and not assured returns
• In the long term, market returns have the potential to perform better than other assured return products.

BENEFITS OF INVESTING IN MUTUAL FUNDS

DIVERSIFICATION: Mutual funds give you access to a diversified portfolio and helps you reduce your overall risk DISCIPLINED INVESTMENT APPROACH: In Mutual Fund, investor has an option to have disciplined investment transaction on a regular basis through SIP /STP/SWP TAX BENEFITS: Equity Linked Savings Schemes (ELSS) qualifies under Section 80C of the Income Tax Act for tax deductions. Besides this, all interest or dividend income from the investments in mutual funds, are exempt from tax HOW TO INVEST IN MUTUAL FUNDS You can invest in Mutual Funds through different channels. Let’s have a look at these channels and some related important information.

IPO or an Initial Public Offering is the first sale of a company’s equity to the public. Initial Public Offer of good and growing Companies keep on coming in the market. One should keep a tap on such IPO’s. It has been observed over the years that investors, who bought equity shares (through primary market) as long term investment have made sizeable amount.

WHAT IS IPO

IPO or Initial Public Offer is a way for a company to raise money from investors for its future projects and get listed to Stock Exchange. From an investor point of view, IPO gives a chance to buy shares of a company, directly from the company at the price of their choice (In book build IPO’s). Many a times there is a big difference between the price at which companies decides for its shares and the price on which investor are willing to buy share and that gives a good listing gain for shares allocated to the investor in IPO.

ISSUE TYPES

• Fixed Price In a ‘Fixed Price’ shares are sold at a single price/fixed price. This price is determined by the company in advance, and you (the buyer) can buy the shares only at that decided price. E.g. If XYZ Industries Limited decides to make a public issue of 10,00,000 equity shares at a price of Rs. 50/- you can buy the share at Rs. 50/- and cannot ask for a price of Rs. 60/- or Rs. 40/-
• Book Building Issue ‘Book Building’ is a price discovery mechanism used to determine the price of the security proposed to be issued. ‘Book Building Issue’ is generally used when the issuer doesn’t want to fix a certain price on the security. Here, unlike the ‘Fixed Price Issue’, you (the bidder) have the facility to bid for the shares within the given range/price band. E.g. If XYZ Industries Limited decides to make a public issue of 10,00,000 equity shares, it will, instead of a fixed price, announce the price band of Rs. 50/- to Rs. 60/-. You (the bidder) can then place your bids for the shares between this price band/range

TYPES OF APPLICANTS

• Retail Individual Investor means an investor who applies or bids for securities of value not more than Rs. 2,00,000/-
• Non-Qualified Institutional Buyer means an investor who bids for an amount above Rs. 2,00,000/- and does not fall in the QIB category e.g. HNI investors.
• Qualified Institutional Buyer(QIB) means Public financial institution as defined in section 4A of the Companies Act, 1956 Scheduled commercial banks Mutual funds/venture funds/insurance companies/provident funds Foreign Institutional Investor registered with SEBI

WHY INVEST WITH US

• Advantage of either applying for IPOs through online platforms as well as offline
• Attractive customized brokerage plans to suit your needs and risk appetite
• IPO recommendations for select offers provided by our advisory team

BENEFITS OF INVESTING IN IPO

• Opportunity to get the stock at the lowest possible price
• No refund hassles under ASBA process
• Can invest in stock at discounted price rather than the cut-off price.
• Opportunity to be a part of the growth story of the issuing company

A fixed deposit is a financial instrument provided by Indian banks which provides investors with a higher rate of interest than a regular saving, until the given maturity date.

ADVANTAGES

• Fixed Deposit
• Fixed Tenure
• Fixed rate of interest
• Fixed Income

COMPANY FIXED DEPOSIT / CORPORATE DEPOSIT

A fixed deposit offered by a company is called company fixed deposit or corporate deposit. this deposit is offer by NBFCs / Manufacturing Companies /PSU/ Govt. NBFC)

BENEFITS OF INVESTING IN FIXED DEPOSIT

• Higher Rate of Interest
• Eligibility and process is simple as compare to banks
• Cumulative & non cumulative schemes are available
• Nomination facility available
• Premature withdrawal facility available
• Loan on deposits is available

TAX FREE BONDS Tax Free Bonds are instruments where interest earned is not taxed. However, there is no deduction for the principal invested in these bonds. These bonds will be eventually listed on the Bombay and National Stock Exchange, so investors will have the option of selling them before the full term of the bond. However, the price you may get for selling before they mature will depend on market conditions.

CAPITAL GAIN BONDS

As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if:

• The entire capital gain realized is invested within 6 months of the date of transfer in eligible bond.
• Such investment is held for 3 years.
• To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be taken on security of such bond within 3 years from date of acquisition else, the benefit would be withdrawn.
• If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.

INFRA BONDS

• Tax Free Bonds are instruments where interest earned is not taxed. However, there is no deduction for the principal invested in these bonds. These bonds will be eventually listed on the Bombay and National Stock Exchange, so investors will have the option of selling them before the full term of the bond. However, the price you may get for selling before they mature will depend on market conditions.
• In Finance Bill 2012, The 20,000 tax benefit from infrastructure bonds U/s 80CCF has disappeared.