| Portfolio Grid &
proposed allocation of assets |
Time Reference:
October 9, 2001 |
|
| Avenues |
Allocation |
Risk involved |
Historical earnings |
Liquidity |
Tax implication |
Scope for
lending facility |
| Equities |
|
High |
18-22% |
High |
LTCG: 10%
|
- |
| Proposed allocation in
Equities: 25% |
LTCG: Long Term
Capital Gain |
|
| Income Mutual Fund |
|
Medium |
11-14% |
High |
LTCG: 10%
Dividends: Tax free
|
- |
| Long Term Gilt Funds |
|
Low |
11-14% |
High |
LTCG: 10%
Dividends: Tax free
|
- |
| Index Funds |
|
Medium |
- |
High |
LTCG: 10%
Dividends: Tax free |
- |
| Proposed allocation in
Mutual Funds: 30% |
LTCG: Long Term
Capital Gain |
|
| ICICI Safety Bonds |
|
Medium |
9.5% |
Low |
Subject to TDS as per then
prevailing tax laws.
|
Nil |
| RBI Relief Bond |
|
Low |
9% |
Low |
Interest is fully exempt from
Income tax and The Bonds are exempt from Wealth Tax.
|
Loans from banks can be availed
of against the security of the bonds |
| REC Bond |
|
Low |
8.5% |
Low |
Section 54EC of the Income Tax
Act deals with capital gains not to be charged on investment in this bond.
|
Nil |
| NHAI Bonds |
|
Low |
9% |
Low |
Section 54EC of the Income Tax
Act deals with capital gains not to be charged on investment in this bond.
|
Nil |
| Proposed
allocation in Bonds: 25% |
| Sundaram Home FD |
|
Medium |
10% |
Low |
Subject to TDS as per then prevailing tax
laws.
|
- |
| Gujarat SF FD |
|
Medium |
10% |
Low |
Subject to TDS as per then prevailing
tax laws.
|
- |
| Proposed
allocation in FDs: 20% |
| Portfolio
Strategy : |
First Priority - Safety, Second Priority
- Earnings, Third Priority - Liquidity, Time Horizon - Long term. |
|