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Sum assured amount for LIC’s Bima Shree, and policy term

The Minimum Basic Sum Assured under the LIC’s Bima Shree plan is Rs. 10,00,000, and there is no Maximum Basic Sum Assured limit. The Basic Sum Assured will be in multiples of Rs. 1,00,000.

There are 4 Policy Terms for the plan, for 14, 16, 18, and 20 years. The Premium Paying Term (PPT) will be 4 years less than the policyholder’s Policy term. Premium Paying Term (PPT) means for how long the policyholder will have to pay the yearly/quarterly/half-yearly/monthly premiums. Policy term means for how long the policy will be active with LIC, and after that, the policyholder will get the maturity benefits.

Eligibility and entry age

LIC’s Bima Shree Investment has been specially designed for the High Net-worth Individuals, that will offer financial support for the family in case of unfortunate death of the policyholders during the policy term.

The minimum entry age for the LIC Bima Shree plan is 8 years completed. The maximum entry age for the policy depends on the policy term, that follows below:

LIC’s Bima Shree policy benefits: calculation

The calculation (for example) has been done considering the policy term is 18 years, hence the premium paying term (PPT) is 14 years, and the policyholder’s entry age is 30 years.

Basic sum assured: Rs. 10,00,000

Death sum assured: Rs. 12,50,000

Yearly Premium 1st year (4.5% tax): Rs. 83643

Yearly Premium (after 1st year – with 2.5% tax): Rs. 81842

Money back at 14th year: Rs. 4,00,000

Money back at 16th year: Rs. 4,00,000

Guaranteed return at Maturity time: Rs. 9,45,000 + 330000(Loyalty addition)

Total return at maturity time: Rs. 12,75,000

Total approximate return: Rs. 20,75,000

The calculation is done through the official ‘All in one Calc’ by LIC.

Death Benefits

LIC’s Bima Shree offers a very profitable death benefit, that can cover the policyholder’s family even after his/her death. On death during the first 5 years, the Death Benefit defined as the sum of ‘Sum Assured on Death’ and accrued Guaranteed Addition will be paid. On death after completion of 5 policy years but before the date of maturity, the Death Benefit defined as the sum of ‘Sum Assured on Death’ and accrued Guaranteed Addition and Loyalty Addition (if any) will be paid. ‘Sum Assured on Death’ is defined as the higher of 125% of Basic Sum Assured or 7 times of the annualized premium.

However, according to LIC, the death benefit should not be less than 105% of all the premiums paid up to the date of death.

Survival Benefits

LIC mentioned in an official notification, “On the life assured surviving to each of the specified durations during the policy term, provided all due premiums have been paid, a fixed percentage of Basic Sum Assured shall be payable.”

The fixed percentage for various policy terms follow:

Maturity Benefits

LIC said, “On the life assured surviving to the end of the policy term, provided all due premiums have been paid, Sum Assured on Maturity along with accrued Guaranteed Addition and Loyalty Addition, if any, shall be payable.”

LIC Housing Finance

LIC Housing Finance is among the top housing finance companies in the country. The stock has also fallen into bear territory with the present drop in price as the stock is below its 200-day moving average of Rs 431 and also below its book value of Rs 417. The dividend yield on the stock is more than 2%.

Aurobindo Pharma

The fall in the stock price of Aurobindo Pharma from 52-week highs is even sharper at 36%. Like LIC Housing Finance, this stock also has gone into bear territory with the 200 day moving average higher at Rs 849.

A fully integrated pharma company, Aurobindo Pharma features among the top 2 companies in India in terms of consolidated revenues. Aurobindo exports to over 155 countries across the globe with more than 90% of its revenues derived from international operations. The stock could be an interesting defensive stock to buy if the markets fall due to the spread of the Omicron variant.

Amara Raja Batteries

The stock of Amara Raja Batteries is now down nearly 38% from 52-week highs. Amara Raja Batteries is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

The Company is a leading manufacturer of automotive batteries and home UPS/Inverter batteries under the brands Amaron. The company supplies automotive batteries under OE relationships to Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, and Tata Motors, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd among others.

L&T Finance Holdings

This stock is also down more than 30% and is below its 200 day moving average of Rs 90. In case the shares see a further downside due to the Omicron virus risk, it could be an interesting stock to buy, given its strong pedigree.

L&T Finance Holdings is a leading, well-diversified Non-Banking Financial Company (NBFC) with a focused range of financial products and services across rural, housing and infrastructure finance along with mutual funds. The company is promoted by Larsen & Toubro Ltd.

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author, are not liable for any losses caused as a result of decisions based on the article.

Top 5 Senior Citizen Bank Fds for 1 year tenure

For a one-year tenure, senior citizens from Fd can secure a maximum of up to 6.5 percent p.a. interest compounded quarterly. Here again Yes Bank, IndusInd Bank and RBL Bank top the chart.

Top 5 Senior Citizen Bank Fds for 2 year tenure

The highest rate again for the said tenure is maximum 6.5 percent per annum provided by the banks listed in table.

Top 5 Senior Citizen Bank Fds for 3 year tenure

Here Yes Bank is offering the highest interest rate of 7 percent per annum followed by RBL Bank and IndusInd Bank which offer 6.8 percent and 6.5 percent p.a. interest respectively for a three year FD.

Top 5 Senior Citizen Bank Fds for 5 year tenure

Here again Yes Bank is topping the chart and offering the highest interest rate of 7 per cent per annum for 5 year FD with the bank. In fact the bank for a FD maintained with the bank for 3 years to less than or equal to 10 years offers the same rate.

Conclusion:

So, as a conclusion we can see Yes Bank is offering the highest FD rate on a tenure of between 3 to 10 years of 7 per annum. While other banks such as the private sector HDFC Bank has also hiked interest rates, the new revised rates are still lower and do not fall under the top 5 FDs for senior citizens.

Other than these Fds that offer a maximum of 7 percent for a tenure of between 3-10 years, senior citizens can also consider other investments such as Post office senior citizen scheme that offers 7.4 percent interest rate, MIS that is a 5-year investment scheme with monthly returns at interest at 6.6 percent.

Important pointers for Senior Citizens with FD investments

Senior citizens in order to avoid TDS on FD interest income need to file Form 15 H at the beginning of every fiscal year with the banks. If they do not do so they can make the claim for the refund only upon filing their income tax returns.

FD interest is fully taxable for individual assesses, nonetheless senior citizens are allowed rebate and they can claim a deduction to the tune of up to Rs. 50000 against the interest realised on savings and FD income in a fiscal year. But this necessarily needs to be shown in the ITR under the head ‘income from other sources’ and the deduction by senior citizens can be claimed as part of the Section 80TTB by senior citizens.

In case the interest accrual is above Rs. 50,000 for senior citizens in a year then banks are liable to deduct TDS at the rate of 10 percent. This TDS deduction will then be shown in 26 AS.

Though Indian banks have always been bailed out in case of a crisis like we have seen in the latest case of Yes Bank and there is this DICGC which insures all of the deposits including savings, fixed, current, recurring, etc., you can split your FD investment in may be 2 or 3 banks instead of maintaining a large corpus with just bank.

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Shriram Properties IPO:

IPO offer period- December 8-December 10

Issue details- Fresh equity issuance worth up to Rs. 250 crore, while it shall be an OFS of Rs. 350 crore.

Bid lot- 125 shares and in multiple thereof

Price band-Rs. 113-Rs. 118

Employee discount and reservation: For equity shares aggregating in value up to Rs. 3 crore

Employee discount: Rs. 11 per share

Registrar-KFin

Book running lead manager: Axis Securities, ICICI Capital, Nomura

Issue objective: From the proceeds, the company shall pay-off the debt and for general corporate purposes.

Part of the Shriram Group of companies, the company ranks 5th in the whole of South India in terms of units launched between 2012-Q3CY21.

MapmyIndia IPO

Offer period: December 9, 2021- December 13.

Lot size shall be released next week

Price is expected to be Rs. 1033 per share.

The issue is completely an offer for sale of 1,00,63,945 equity shares by shareholders including investor Qualcomm Asia Pacific Pte Ltd.

The company shall not receive any proceeds as the mopped up funds will go to the selling shareholders.

CE Info Systems or MapmyIndia is a data and technology products and platforms company that offers proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS). The company is the top entity offering advanced digital maps, geospatial software and location-based IoT technologies.

Metro Brands IPO:

IPO Date : 10 to 14 Dec, 2021

Fresh equity issuance : ₹ 295 Crore

OFS : 21,450,100 Shares

Retail Quota : 35%

The proceeds from the issue worth ₹225.37 crore will be used for opening new stores of the company.

The firm is among the leading Indian footwear specialty retailers. As of the quarter ended September 2021, the company runs 598 outlets across 30 states in around 136 cities.

The firm retails footwear under its own brands of Metro, Mochi, Walkway, Da Vinchi and J. Fontini, together with third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop that complements its in-house brands.

Axis Capital, Ambit Pvt Ltd, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book lead managers to the issue.

For the September quarter, the firm’s net profit came in at Rs.43.09 crore versus a loss of Rs. 41.43 crore last year in the same quarter.

Disclaimer

Here in are collated all the important details on the public issue that shall open up next week between December 6-December 11. Investors need to do their own analysis and research before making any such investment bet.

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