Ram's Review

SBI Gold Fund

2011-08-26T18:06:00.003+05:30

SBI Mutual Fund has launched SBI Gold Fund, an open ended Fund of Fund to enable investors to invest systematically in gold. NFO (New Fund Offer) would be invested in SBI Gold Exchange Traded Fund. The corpus collected through the NFO will be invested in SBI GETS, the Gold Exchange Traded Funds offering from SBI Mutual.

SBI GETS, the best performing gold ETF in the last 6 months has given returns of 28.6% as on 18th August 2011 which is 36.57% higher than the BSE Sensex returns of -12.5% as on August 18th 2011. The NFO period is from 22nd August to 5th September.

Benefit of SBI GOLD TRADED FUNDS

It is said that Gold could show some volatility in future. Looking at the current global economic conditions and stock market volatility, gold is a better option hence the Investment in GOLD FUND through SIP route is better option. First time in India any investor could avail gold loans from the country’s largest lender State Bank of India for gold exchange traded funds.

Fees & Charges

Pursuant to SEBI Circular No. SEBI/IMD/ CIR No. – 1/ 64057/06 dated April 4, 2006, the New Fund Offer expenses will not be charged to the scheme and will be borne by AMC.

Load Structure: Entry Load: Not Applicable Exit Load: Exit within 1 year from the date of allotment – 1 %, Exit after 1 year from the date of allotment – Nil. Application Amount: The minimum investment amount is Rs 5000 and in multiples of Rs 1 thereafter. Additional Purchase Rs. 1000/- and in multiples Rs.1000/- or 100 Units or account of Re. 1/- thereof of Re.1/- thereof.

Benchmark Index: The Scheme’s performance will be benchmarked against the price of physical gold. Plans / Options: The scheme offers growth option and dividend payout option. Dividend option offers reinvestment, payout and option.

Asset Allocation: The scheme will invest 95% to 100% of assets in units of SBI GETS and upto 5% in Reverse repo and /or CBLO and/or short-term fixed deposits and/or Schemes which invest predominantly in the money market securities or Liquid Schemes.

Housing Loan in Nationalised Banks

2011-08-22T17:37:00.001+05:30

Now - a - days, housing loan is a very essential thing which almost stays in the top of the check lists while planning for purchasing a sweet dream home. It is also became a very easy process to avail a housing loan with banks. This article will give its readers a gist of the process involved in availing a housing loan.

A person who wants to apply for a housing loan (from now onwards may called as “Applicant”) needs to contact the bank which he/she prefers to avail a housing loan. Now almost all the banks are availing housing loan. So it is the applicant’s option/ choice to select the bank. Possibly one should check out the interest rate of the banks for the amount. Not all banks avail same interest rate. Few banks avail 11% and few banks go till 16 % of interest for the amount. So it is always advisable for the applicant to choose a bank (especially a Nationalised Bank) which offers less interest rate.

Usually Banks ask for Guarantor to the applicant for the loan amount. It may be any one who is close or well known to the applicant. The applicant may have a co – applicant and a Guarantor for the loan. The banks will be expecting a proof for his residence, for his job (if an employee, a certificate/ Identity Card from the employer and for a business person, the registration certificate of his business) and for his income (Possibly IT returns will do for it). The bankers will be asking for at least 3 years of Income Tax Returns for the applicant. Then the most important one is the sale deed of the property for which loan is applied. In many cases, the applicant will pay and make a sale deed only after sanctioning of the loan, so an agreement with the vendor from whom the property is being purchased is more than enough. In case of a Flat, an agreement from the builder will do.

Once the applicant has submitted these documents to the bank, the process of sanctioning of loan will be initiated by the bank. The bank will offer 3 stages of verification for sanctioning of loan. First stage will be a preliminary verification by the bank with the applicant. Then due diligence verification will be carried out by the bank. Some times, the due diligence verification may be outsourced to private agencies by the bank who will give the report to the bank after verifying the details/ documents submitted by the applicant to the bank. They will verify the residence, work place, property site and Income tax returns of the applicant. Then the final stage will be Valuation. This will be carried out by approved valuers. They will value the property of the applicant and the report will be sent to the bank.

Now it is left to the bank to decide whether loan may be sanctioned or not. The due diligence report will be considered as support for the decision. If may be sanctioned, then the amount of the loan will be decided with the base of report submitted by the valuers.

Then the applicant will be let known by the bank and if the applicant is interested to take the loan for the bank, then he/ she must pay a processing fee. This fee is charged for all the cost effect of different stages of processing one’s loan. Then the loan amount will be credited in the account of the Applicant.

In case if the applicant is not paying the dues of loan properly, then what happens….
Let me discuss this topic in the next article.

Online Shopping review

2011-08-22T15:47:00.000+05:30

Technology has improved a lot. Nowadays, just by ordering the products online, you will get it at your doorstep. But still many of us don’t believe in online shopping. They have many questions in their mind. They are:

How to do online shopping?

Is it online shopping safe?

Advantages and disadvantages of online shopping

Hereby I provide my review and answers for the questions above.

Make a research before doing online shopping

After choosing the product, check for the price in various websites (www.letsbuy.com, www.tradus.in, www.ebay.in, www.buytheprice.com, etc...) or just google.
Assume that you are going to buy a SanDisk 4 GB pen drive.
Check the price of SanDisk 4 GB pen drive in these websites (www.letsbuy.com, www.tradus.in, www.ebay.in, www.buytheprice.com, etc...) or just google “SanDisk 4 GB pen drive price INR”
Surely the price will be varying in each website.
Some websites offer free shipping, whereas other websites charge some amount for shipping. So the final price of the product is price + shipping.
Finalize the website which is very low.
Check for reviews about the website in which you are going to place order. (For eg. just google letsbuy review)

How to do online shopping?

Make a research about the products price
Choose the website in which you are going to place the order
If you are a first time user, you need to do a simple registration. It will ask for your name, email id, address, contact no.
After logging, select the product and place the order.
If you have any discount coupons, enter it before payment.
Pay for your order through debit card or credit card.
Once your payments is done, you order will be confirmed and you will get an email on the same. In that email, you will have details about your order, amount paid, shipping address and date of delivery. For further follow up on the order, you can contact to the number/email id provided.

Advantages of online shopping

Very easy to buy any products.
Able to compare product price and features
We can get products at discounted price
We can save time and money

Disadvantages of online shopping

We cannot inspect it personally before we make purchase.
We have to buy the item relying purely on a photograph and description, we cannot feel or see the item you want to buy.

To experience with online shopping you can buy products like pen drive, memory card, card reader, charger, headphone, etc (These products usually costs between Rs. 100 – Rs. 300)

Surveys say that mobiles and computer spare parts are the top selling products in online. Computer hardware’s, electronic items, dresses are also tops the position in online shopping.

Personally i have bought pen drive, memory card, memory card reader, mobile, camera, charger, laptop adapter, perfumes, deodorants, etc... in online. I bought these products at a discounted price. My favourite online shopping websites are www.letsbuy.com, www.tradus.in, www.ebay.in and www.buytheprice.com

Happy Shopping.

Review on Credit cards

2011-08-18T23:28:00.000+05:30

Each credit card comes with its own features, limitations and charges. We need to compare the cards based on our requirement and usage.

Nowadays credit cards are very popular, some of them are HDFC credit card, SBI credit card, Standard Chartered Bank credit card, American Express Card, HSBC credit card, ICICI credit card, Barclay credit card, Deutsche Bank credit card, etc...

Points to be noted before choosing a credit card:

Check for Joining and Renewal Fee (Most of the banks offer free joining. Even Renewal fee is waived off if we use the card for Rs.20,000 or greater (varies from bank to bank) in a year)
Nowadays credit card doesn’t force users for insurance. (But while signing in the credit application check carefully, the insurance option is optional. If you sign on it, you will be charged)
If you are clear with these 2 points, you can go for credit card.

After getting credit card:

Make a note of your credit card number, name on card, date of expiry, cvv number.
Make a note of your credit card ATM pin number (Usually you will get this after 1 or 2 weeks).
Confirm your billing cycle with customer care.
Register for online banking.
Whenever you make online/offline transaction, you will receive a SMS from the bank for your successful transaction.
Usually it takes 2 to 3 days for reflection of your transaction.

Pay your credit card bills before your due date. It’s better to pay before 4days of your due date. Online banking is the best way of paying credit card bills.

If you have lost your credit card, call to the customer care and block the card immediately.

Vodafone Ramzan Offer

2011-08-17T20:11:00.000+05:30

Hello, special ramzan limited period offer. Recharge with RC786, get Rs. 786 in primary bal and Gulf calling benefit at 12p/sec for 1 month. Hurry!!