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FAQs

  •   What are the consequences of being NON Compliant ?

    Suspension of AMFI Certificate. In case Self Declaration not submitted to AMC before the end of the financial year, or within 3 months from the start of next financial year then his brokerage will be suspended thereafter till submission.

  •   Where can I get more information on mutual funds?

    Most mutual fund companies have their website, where information related to all the mutual fund schemes is available. You can also log on to the official website of the Association of Mutual Funds in India (AMFI): www.amfiindia.com.
    To view information related to regulations and guidelines for mutual funds, addresses of mutual funds, etc. one can log on to www.sebi.gov.in and click on the ‘Mutual Funds’ section.

  •   How do I subscribe and redeem units of a mutual fund scheme on stock exchanges?

    In order to extend the convenience that investors in the secondary market have, to investors in Mutual Funds, SEBI has allowed Stock Exchanges to offer their existing infrastructure for subscribing and redeeming units of a mutual fund scheme.

    In accordance with the same, National Stock Exchange of India Ltd. offers Mutual Fund Service System (MFSS) and Bombay Stock Exchange Ltd. offers BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds (BSE StAR MF) [collectively called as Stock Exchange Platform(s) for Mutual Funds] for transacting in certain schemes of Birla Sun Life Mutual Fund.

    For further details on trading through Stock Exchange Platform(s), you may refer to the following websites:

    http://www.nseindia.com/products/content/equities/mutual_funds/mfss.htm

    http://www.bseindia.com/about/BSEstarmf.asp

    All transactions carried out through the Stock Exchange Platform for Mutual Funds shall be subject to such guidelines as may be issued by NSE, BSE and also SEBI (Mutual Funds) Regulations, 1996 and circulars / guidelines issued thereunder from time to time, in this regard.

    Click here to view List of schemes on BSE STAR MF

    Click here to view List of schemes on MFSS

  •   Are there any additional services offered by the Mutual Fund for NRI’s?

    Yes. NRI’s are allowed access to Birla Sun Life’s Online Portfolio Management System.

    This free and 24/7 service allows investors to:

    - Track and manage their investment portfolio online
    - Transact Online – Additional Purchases, Switches and Redemptions
    - Download Account Statement
    - Post your queries & requests on email to a relationship manager

  •   What are the taxes applicable for income from Mutual Funds for NRIs?

    Untitled Document

    Dividends
    Dividends
    NRI
    Equity schemes
    Tax free
    Debt schemes
    Tax free
     
    Dividend Distribution Tax
    Dividend Distribution Tax
    NRI
    Equity schemes
    Nil
    Debt schemes
    14.163%
    With Indexetion
    11.33% (10% Tax + 10% Surcharge + 3% Cess)
    Without Indexetion
    22.66% (20% Tax + 10% Surcharge + 3% Cess)
     
    Short Term Capital Gains Tax
    NRI
    Equity schemes
    17% (15% Tax + 10% Surcharge + 3% Cess)
    Debt schemes
    33.99% (30% Tax + 10% Surcharge + 3% Cess)
     
    Tax Deducted At Source (Applicable only to NRI Investors)
    Tax Deducted At Source
    Short term
    Long term
    Equity schemes
    11.33%
    NIL
    Debt schemes
    33.99%
    22.66%
     
    Tax Benefits u/s 80 C
    The introduction of section 80C, in the Union Budget 2005, has allowed investors to save tax by investing in Equity Linked Savings Scheme (ELSS) schemes on investments upto Rs.1 Lac. and at the same time avail the growth potential of equity markets.
     
    The following table draws a comparison of the investment avenues available under Section 80C
     
    Investment Options
    Lock-in Time Period (In Years)
    Max Investment for Sec 80C Benefits (Rs.)
    % Return (CAGR)
    Tax Treatment of interest
    ELSS (Mutual Fund Schemes under Equity: Tax Planning Category)
    3
    1,00,000
    49.83 *
    Dividend and Capital Gains Tax Free
    Public Providend Fund (PPF)
    15
    70,000
    8 *
    Tax Free
    National Savings Certificate (NSC)
    6
    1,00,000
    8 *
    Taxable
     
    * Equity Tax Planning Category average for 3 yrs, Source: Value Research Mutual Fund Performance Report 31 Oct, 2007
     
     
     

  •   Are there any specific procedures to be followed for making the investment on a repartiable/non repartiable basis?

    Untitled Document

    PURCHASES BY NRIs/FIIs
     
    Repatriation basis:
     
    Payments by NRIs/FIIs may be made by way of Indian rupee drafts purchased abroad or out of funds held in NRE/FCNR account or by way of cheques drawn on non-resident external accounts payable at par and payable at the cities where the Investor Service Centres are located.
     
    In case of Indian rupee drafts purchased and subscriptions through NRIs/FCNR account, an account debit certificate from the bank issuing the draft confirming the debit should also be enclosed.
     
    Non Repatriation basis:
     
    NRIs investing on a non repatriable basis may do so by issuing cheques/demand drafts drawn on Non-Resident Ordinary (NRO) account payable at the cities where the Investor Service Centres are located.
     
    REDEMPTIONS BY NRIs/FIIs
     
    Payment to NRI/FII Unit holders will be subject to the relevant laws / guidelines of the RBI as are applicable from time to time (subject to deduction of tax at source as applicable).
     
    In the case of NRIs :
     
    - Credited only to NRSR account of the NRI investor where the payment for purchase of Units redeemed was made out of funds held in NRSR account or
    - Credited, at the NRI investor's option, to his / her NRO or NRSR account, where the payment for the purchase of the Units redeemed was made out of funds held in NRO account or
    - Remitted abroad or at the NRI investor's option, credited to his / its NRE / FCNR / NRO / NRSR account, where the Units were purchased on repatriation basis and the payment for the purchase of Units redeemed was made by inward remittance through normal banking channels or out of funds held in NRE / FCNR account.
     

  •   Can NRIs invest in Mutual Funds? Do they require any special permission from the RBI?

    Non Resident Indians and Persons of Indian Origin residing abroad (NRIs) / Foreign Institutional Investors (FIIs) have been granted a general permission by Reserve Bank of India Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 for investing in / redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations

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The views, opinions and recommendations mentioned herein are those of the Investment Advisor alone and should not be construed as investment advice to any party and are not necessarily those of Birla Sun Life Asset Management Company Ltd.(BSLAMC) or any of their officers, employees, personnel, directors and further, BSLAMC / its subsidiaries / affiliates / sponsors / trustee or their officers, employees, personnel, directors make no representation or warranty, express or implied, as to the accuracy, completeness or reliability of the content and shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising from the use or access of such information.

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