Friday, July 30, 2010

How many paypal accounts can I have?

All you want to know about PayPal

What is PayPal
PayPal is the faster, safer way to send and receive money online.
PayPal is a Web-based application for the secure transfer of funds between member accounts. It doesn't cost the user anything to join PayPal or to send money through the service, but there is a fee structure in place for those members who wish to receive money.
PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders.
PayPal is an account-based system that lets anyone with an email address securely send and receive online payments using their credit card or bank account. ...

How PayPal Works:

PayPal users can have one Personal account and one Premier or Business account. Each account needs to have a unique email address, bank account and credit card.
You can use two PayPal accounts, You can have one Personal account and one Premier or Business account. You can add more email addresses, debit or credit cards, and bank accounts to your account, but each account must have its own email address and financial information. You can also upgrade your Personal account to a Premier or Business account.

What are different types of PayPal Account
  1. Personal
  2. Premier
  3. Business

Personal Account: Free to register the perfect account for individuals who want to shop and buy online. You can use this account to make and receive payments for goods and services.
Premier Account: Free to register and buy. Low fees for receiving money
The perfect account for casual sellers who mostly sell and occasionally buy online. You can use this account for making occasional sales and purchases online.
 Business Account; Free to register and buy. Low fees for receiving money
The account for business customers who operate as a company with high transaction volumes. You can accept all payment types for low fees.

When you signup for PayPal, you can start accepting credit card payments instantly. As the world's number one online payment service, PayPal is the fastest way to open your doors to over 150 million member accounts worldwide. Best of all, it's completely free to sign up! To sign up or learn more, click here:
Sign up for PayPal and start accepting credit card payments instantly.

How to apply for Permanent Account Number /Pan Card

All you want to know about Permanent Account Number /Pan Card 
 What is Pan card/ Permanent Account Number
 PAN or Permanent Account Number is a ten-digit alphanumeric codegenerated by the India's 'Income Tax Department', that is required by anyone and everyone who wish to conduct any kind of financial transaction in India. Even those whose financial transaction is limited to paying income tax require it! PAN is required if you wish to enter the Indian Share Market. This is true for NRIs - Non Resident Indians living abroad too, who wish to make investment in India, buy property/house in India, open bank account, demat account, rent out a property etc.

Where to apply for PAN Number/ PAN CARD
 In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers.

What documents and information have to be submitted along with the application for Form 49A?
a. Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;
b. Any one document listed in Rule 114 must be supplied as proof of 'Identity' and 'Address'; and
c. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.
What are the Important Points to remember while Filing the 'PAN' Form?
The PAN form should be filled in by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the person who is authorised to do so under the provisions of I.T Act. The following important points may be taken care of while filling up the form:
Name & Address:
The name and address must be written in block letters and while filling up the same, one cage may be left blank after each word.No initials are allowed to be used while filling in the name. Full name has to be given.
Correct code Numbers of the assessee's status/residential status may be filled in.
Date of Birth: 
Date of birth is very important and to be filled.
Father's Name:
Father's name has to be given even in case of married ladies.
Sources of Income:
A person should have at least one source of income to apply for PAN. So the relevant box should be checked in the form

Common myths about Mutual Funds

Funds with more stars/higher rankings make better buys

Often investors make their investment decisions based on the fund's ranking or the number of stars allotted to it. Fund rankings and ratings have gained popularity over the years; a higher ranking/rating is construed as a sign of the fund being a good investment avenue.

Sadly, what investors fail to realise is that often rankings/ratings are based only on the past performance on the net asset value (NAV) appreciation front; only some rankings/ratings consider factors like volatility and risk-adjusted performance.
Secondly, rankings/ratings are known to change over a period of time in line with a change in the fund's performance. Does that mean investors should start buying and selling a fund in line with a change in its ranking/rating?
More importantly, fund rankings/ratings operate on the rationale that one-size-fits-all. They fail to reveal who should invest in the fund.
For example, if an aggressively managed sector fund notches the highest ranking based on performance, will it make an apt fit in a risk-averse investor's portfolio? Clearly not! However, fund rankings and ratings do not convey this to the investor.
The learning: At best, rankings and ratings can serve as starting points for identifying a broader set of "investment-worthy" funds. But investing in a fund, based solely on its ranking/rating would be inappropriate. Instead, investors should engage the services of a qualified and experienced financial planner, who can help in selecting funds that are right for them.

While choosing between two MFs one should buy one with lower Net Asset Value(NAV).
NAV of a mutual fund depends on the duration for which the fund has been in existence and its performance. Rather than looking at the NAV one should look at the past performance to compare the funds.
Example: Let us assume two funds Fund A and Fund B. Suppose that Fund A is currently priced at Rs. 50 and Fund B is priced as Rs 20. Suppose you invest Rs 5000 in both funds, you get 100 and 250 units respectively. Assuming Fund A gives 20 % return and Fund B gives 10% return. The unit price of the funds becomes Rs 60 and Rs 22. Now your investment of 5000 in Fund A has now become 60 * 100 = 6000, and investment in Fund B has become 250 * 22 = 5500. Thus we see the fund that looked expensive gives better return.

 A fund invests in the same stocks as its benchmark index
A number of investors believe that a mutual fund always invests in the same stocks that constitute its benchmark index. For example, if the BSE Sensex is the benchmark index for a fund, then it is expected to invest in the same 30 stocks that form the BSE Sensex.
This is true only in the case of index funds i.e. passively-managed funds that attempt to mirror the performance of a chosen index. In all other cases i.e. in actively managed funds, the fund manager is free to invest in stocks from within the index and without.
The benchmark index only serves the stated purpose i.e. benchmarking. It offers investors the opportunity to evaluate the fund's performance.
Generally, a fund's success is measured in its ability to outperform its benchmark index. Secondly, the benchmark index also aids in 'broadly' understanding the kind of investments the fund will make.
For example, a fund benchmarked with BSE Sensex or BSE 100 would typically be a large cap-oriented fund, while one benchmarked with S&P CNX Midcap is likely to be a mid cap-oriented fund.
The learning: Don't expect a fund to invest in the same stocks as its benchmark index. While the benchmark index can prove handy in evaluating the fund's performance, it certainly need not form the fund's investment universe.

 It is better to invest in NFO (New Fund Offer) than buying a existing fund.
Buying a mutual fund through a NFO only means that you are investing in a fund with no past performance. It is better to invest in a scheme with a known past performance record.
All mutual funds come with tax benefit.
Not all mutual fund come with tax benefit. If you invest in a Equity Linked Saving Scheme (ELSS), your investment can be shown under 80(c). These mutual funds come with a three year lock-in. If your fund invest more than 60% of the corpus into equity and you hold the fund for more than a year, the return made on the investment is tax free. Income from other mutual funds are treated as regular income for the investor.

You need a demat account to invest in mutual fund.
You need demat account when investing in stocks not for mutual fund. You can just need to fill up a application form, attach the check of the desired amount and submit the form at the mutual fund office or one of the customer service center.

 The growth option is better as it delivers higher returns
While investing in a mutual fund, investors can choose between the growth and the dividend options; furthermore, within the dividend option, they can select either the dividend payout (wherein the dividend is paid to the investor) or the dividend reinvestment (wherein the dividend is used to buy further units in the fund, thereby enhancing the investor's holdings) options.
A common misconception is that, opting for the growth option is better, since it delivers higher returns. This fallacy is rooted in the difference between the NAVs of the growth and dividend options.
Investors expect the dividends declared till date to account for the difference between the two NAVs. On finding that the difference between the two NAVs is greater than the dividends declared, the conclusion drawn is that the growth option is better.
However, since the growth rate is being applied to different bases (higher NAV for growth vs. lower NAV for dividend), the eventual results (read NAVs) are different.
For example, assume a 25% growth being applied to a Rs 15.00 growth option NAV and a Rs 14.00 dividend (after a 10% i.e. Re 1.00 dividend has been paid) NAV. The resulting NAVs would be Rs 18.75 (for growth) and Rs 17.50 (for dividend); the difference between the NAVs being Rs 1.25 which is greater than the Re 1.00 dividend declared.
The learning: Don't select the growth option assuming that it will offer better returns. Instead, the investor's need for liquidity and his investment objective should play a role in deciding which option is chosen.

 A scheme that pays dividends is better than a scheme that doesn’t.
 MFs are prohibited from assuring any kind of return—principal or dividend. Typically, an MF has a “dividend” and a “growth” plan. While your money keeps going up (or down, whatever the case may be) in the growth plan, your MF occasionally declares dividends in dividend plans. Even monthly income plans (MIPs) aim, but can’t promise, to pay regular dividends. As per data proved by Morningstar India, an MF tracker, MIPs, on average, skipped dividends for two month in each year between 2005 and 2007.
“Dividends in an MF scheme are not like interest earned on bank fixed deposits or non-convertible debentures. The latter are loans that you give to banks and companies for which they pay you interest”, adds Ganti N. Murthy, head-fixed income, Peerless Funds Management Co. Ltd. In other words, a fund that pays dividend is no better or worse than a fund that doesn’t pay dividends.

A Rs10 net asset value (NAV) fund is cheaper, and therefore, better than Rs50 NAV fund.
 An MF’s NAV doesn’t get influenced by market factors, unlike the price of an equity share. The NAV represents the market value of all its investments. Any capital appreciation that the scheme enjoys or would enjoy depends upon the upward/downward movement of the prices of its underlying securities.
Say, you invest Rs1 lakh each in Scheme A (a new scheme, with an NAV of Rs10) and Scheme B (an old scheme with a NAV of Rs50). In other words, you hold 10,000 units of Scheme A and 2,000 units of Scheme B. Further, assume both schemes have invested their entire corpus in just one stock, which is currently quoting at Rs100. If the stock appreciates by 10%, the NAV of the two schemes should also rise by 10% to Rs11 and Rs55, respectively. In both cases, the value of your investment increases to Rs1.10 lakh—an identical gain of 10%.
The reason why Scheme B’s NAV is higher than Scheme A’s is because the former has been around for quite some time and has been buying scrips before Scheme A was launched. Any subsequent rise and fall in the NAVs of both these funds will depend upon how the scrip moves. Having less units of Scheme B does not make any difference. If anything, you should go for Scheme B as it has a track record and therefore there is some indicator for you to take a reasonable call on its future performance.

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