Vol. 2 Oct-Dec. 2004A Quarterly Newsletter of Value Plus Investment Advisors Pvt. Ltd.

Insure and Ensure a Good Life

My Dear Patrons and Friends

SEASONSGREETINGS

THREE VERY LUCRATIVE,REWARDING AND FEATURE-PACKEDPLANS

TOLL FREE ON 1600 213000.

LIFE LINE

LIFE LINE

We all have just enjoyed a hearty FestiveSeason and the calendar year is justabout to end.

A pious and cheerful Navratri, a sparklingDiwali, an auspicious Gujarati New Yearand the forthcoming Christmas - Myheart reaches out to you at this juncture,and I extend my warmest

and Best Wishesfor the New Year.

During this Festive Season, LIC hasintroduced

. They cover varioussocio-economical segments. Each one ofthem is uniquely formulated to give youthe best of both the worlds - Insurancecover and an ideal investmentopportunity. The Plans are highlightedhere for your ready reference. If you needmore information, Please do not hesitateto call us

Due to your kind support and patronage,the inaugural issue of was agreat success. My heartfelt gratitude.

is committed to provideyou valuable information from theInsurance and Investment profession.Your valued suggestions forImprovement and enhancement of thispublication are always most welcome.

Sincerely

HP ShahCEOValue Plus Investment Advisors Pvt. Ltd.

Fromthe deskof the CEO

Special Plan for Children* Provides for major future expenses like overseas

study, start-up funds for new ventures, wedding, etc.* Immediate payment of insurance amount in case of

demise and on maturity with bonus till last date.** Option of accident benefit.* Option of premium waiver.* Loan facility.* And many more.

Ideal as gift to grand children.

KEYMAN Insurance PlanA unique concept to ensure safety and security foryour company whenever you lose a keyfunctionary.* Specially tailored for High Nett Worth Individuals

(HNI) like Industrialists, Businessmen, Flim Stars,Professionals, etc.

* Accommodates insurance benefits of the keymanwhile at the same time offers innovativeinvestment strategy for the company.

* Helps avoid sudden additional financial liability onthe company on a keyman’s demise, since allsuch pay-offs are offered by this Plan.

* Offers innovative tax planning means.* 100% exempt from business income.* And many more.

Smart RetirementPlan* Exceptional benefits like

available as add-ons.* You can plan to

speciallybeneficial for over-worked successfulyoung people .

* Free to choose pension.* Death risk cover from

inception.* Only Plan that provides

for additions andbonuses.

* And many more.

Additional Life Cover,Accident Death /Disability benefits,Critical Illness &Premium Holiday

retireeven at 40 withguaranteed monthlyincome -

Fond memories of

inauguration of our new

Corporate Office

a year back

by Shri SB Mathur,

Chairman, LIC of India

OUR SPECIALISATION:* Full-Family Insurance Solutions* Corporate and Group insurance* Retirement Plans* Entrepreneur Plans* Personalised Exclusive services* HUF Investment Solutions

to NRIs and HNIs

* And many more

Mr. HP Shah has the uniquehonour of having beencrowned ToT (Top of Table)Status twice by Million DollarRound Table (MDRT)Council, USA

To make the most of them,CALL US TOLL-FREE 1600 213000

Ask for our personalisedPresentation of these new

Strategies. Just call1600 213000 TOLL-FREE.

A Quarterly Newsletter from Value Plus Investment Advisors Pvt. Ltd.

Health Corner

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

7-Day Weight ReductionProgrammeThis Executive Programme is simple, has no sideeffects and assures at least 3-4 kg. weight loss ina week. It cleans the system and detoxifies it,leaving you fresh, energetic and lively.

Eat all fruits except banana, specially watermelon.

Eat a lot of raw or boiled vegetables. Forcarbohydrate need, have a large baked potato forbreakfast.

A mix of fruits and vegetables, any amount. Nobananas or potatoes, though.

You can have 8 bananas and three glasses ofmilk. As a bonus you can have unlimited Souptoo.

You can eat mutton/Dal and tomatoes. Twoservings of chicken or 2 bowls of Dal and sixwhole tomatoes. Drink two more glasses of waterto flush out uric acid.

You can eat unlimited mutton/Dal and vegetables.

Eat mutton/Dal, rice, fruits and vegetables,unlimited.

Please note:* No alcohol during this programme.* Drink at least 10 glasses of water daily.* Repeat Programme as desired, but with a gap of 3-4 days.

It is all about managing surpluses or wealth to give optimum returns. This is done by designingthe investor’s PERSONAL BALANCE SHEET. As in all Balance Sheets, this one too has theNeeds and Aspirations on “Liabilities” side, and the surplus (wealth) on the “Assets” side.

The Liabilities include maintaining an inflation-adjusted life style, provision for future needs forself and family, capital for business, buying or replacing assets. etc. The Assets side will includeall the surplus wealth like debt, equity, estate, liquid, art, etc. except the assets in use likeresidence, cars, gold, etc.

The Balance Sheet gap, or the surplus is then plotted against the risk profile of the investor toderive the Real Rate of Return, in other words, Inflation-Adjusted Return.

Once the Real Rate of Return is known, a good Financial Consultant can design a soundInvestment Portfolio.

Often, Wealth Management is deemed unnecessary because apparently, the objective seems tobe capital preservation. This leads to conventional modes of saving like bank TDRs which yield apost-tax return of 3.65% at present inflation rate of 7.5%. Now, this is as much as 3.65% lessthan rate of inflation. So the wealth actually stands to get eroded. Instead, what is needed issystematic and diversified Wealth Management by an Expert.

Remember: Always ask for a PERSONAL BALANCE SHEET before your Consultant createsyour Portfolio. For assistance CALL US TOLL-FREE 1600 213000

HUF-Some eye-openersI deal here with some of the finer points ofHindu Undivided Family (HUF):* For constituting a HUF, plurality of members

of HUF is necessary, but not necessarily morethan one, or even one male member.Therefore a single member with one or moreladies can form a HUF.

* Nucleus (asset) of a HUF is different than theHUF. A HUF may exist but there may not beany asset of the said HUF.

* A partition of a large HUF ( i.e. of parents)may be having little assets, would bring intoexistence the HUF’s of all the children(provided they have at least one moremember in their family) even when thesechildren may not have any child.

* Even in cases of HUF of only one malemember (other members being lady orladies), gifts received for the collective benefitof all members of the said family includingfuture off-springs, would constitute HUFproperty. However, such gifts received byHUF will be chargeable to tax as income ofthe HUF under the amended provisions of theIncome Tax Act.

* There could be cases of HUF of each of thechild even during the existence of the HUF offather. There is no need for disrupting father’sHUF for bringing into existence the HUF ofchildren.

* Hitherto HUF asset does not cease to be anHUF asset merely because the familyreduced only to female members (say widowand daughters) and such asset wouldcontinue to be taxed in the hands of HUF.However, if the family reduces to a singlemember then the said asset would be taxed inthe hands of such individual.

For amendments in budget ‘04, e-mail us at info@valueplusinv.com

A Quarterly Newsletter from Value Plus Investment Advisors Pvt. Ltd.

� Banks offer loan on LIC policies at lower rates than LIC.

� Old postal recurring a/c which are fetching 12%* interest but are maturing

now, should not be encashed even by mistake since you can extend this

recurring for 5 years with the same original rate of interest.

� Vadodara has 665 no. of millionaires who have declared income of over

Rs. 10 Lacs to the I-T department.

� Even tax saving bonds can be held in Demat mode.*or any other rate of interest.

For detailed information on how to makewww.valueplusinv.com

a proper Will,visit our web site

**

**

*Source Sandesh Daily dt. 21-11-2004. **Source Reliance web site

A Quarterly Newsletter from Value Plus Investment Advisors Pvt. Ltd.

Opportunity knocks THRICE!!!! CALL US TOLL-FREE 1600 213000

This Newsletter is for private circulation only. All the information in it, including text, statistics and images, are sourced, compiled and given in good faith forgeneral information only and we are not responsible for any eventuality resulting from following it without our knowledge or consultation by any expert. Whileevery care is taken to publish the latest and accurate data, we are not responsible for any misprint, oversight or inaccuracy in it.Insurance is a subject matter of solicitation. Mutual Funds are subject to market conditions. For exclusions and final detailed rules, refer scheme circular.

Ph.: 0265-5529800, 5529900. Web site: www.valueplusinv.com e-mail: info@valueplusinv.com. Mr. Naitik ShahGSM: 9820556695. Mr. Hardik Shah GSM: 9825151008. Mr. MP Shah GSM: 9825205006. GSM: 9824465200

VALUE PLUS INVESTMENT ADVISORS PVT. LTD. Corporate Office: GF 4-8, Productivity House, Productivity Road, Alkapuri, Vadodara 390 007.CALL TOLL-FREE: 1600 213000. Mumbai:

Surat: Bhavnagar: Jamnagar:

YOU CAN CALL USTOLL FREE ON:

1600 213000

Q&A ColumnVIRAL SHAH, SUBHANPURA,BARODA:

LIFE LINE:

RAGINI AMIN, VALLABH VIDYANAGAR:

LIFE LINE:

NIRAJ JAIN, ATHWA LINES, SURAT:

LIFE LINE:

When is the right time to buy lifeinsurance?

It’s a bit like asking, when is theright time to fall ill, or worse, when is theright time to meet an accident. Life is full ofuncertainties, and only life insurance canprovide effective shield of protection againstuntoward occurrences. So buy life insuranceAS EARLY IN LIFE AS POSSIBLE. This willnot only be cheaper, but also give you manyadditional benefits.

What is the difference between lifeinsurance and other forms of investments?

Let us consider stock market asan option to investing in life insurance. It ishighly speculative, volatile and dependenton many external circumstances. Hence,even though it may offer better gains attimes, you also have to be ready for heavylosses. While in insurance, you only gain,steadily and surely. The choice is yours.

Ihear a lot about life insurance havingbecome an ideal way of investment. Why isit so?

Very true. Life insurance, apartfrom providing security, also offers a veryhealthy rate of growth of money vide bonusand other incentives. Besides, only LIC’s lifeinsurance carries a sovereign guarantee ofmaturity terms and amount from the Govt. ofIndia meaning it is like a currency note,irrevocable. So prefer LIC policies overother life insurance tools.

EYE-OPENER

The later you start saving forretirement, the more you need toaccelerate!!!!!

If you had 60 kms. to travel and one hour to getthere, how fast would you have to go? 60 kmph,that’s right.

10 minutes late, and you would have to goat 72 kmph.

20, and you need to zoom at 90 kmph.

VALUE PLUS

Visit www.valueplusinv.com TODAY!!!

launches greatexciting features on its IT-Enabledinteractive web site:* Client profiling & Info services* Online Insurance counseling services* LIC policy related calculators* Information dissemination regarding

Insurance and Investment* Online LIC portfolio* Exclusive feature-packed Member

Services* Exclusive News and expert views* e-greetings, Newsletter & many more

Wonderful Plan offering LifeLong Guaranteed by GOI TaxFree Income of Rs. 1 lac everyyear full risk cover ofRs. 50 lacs.

1 10 lac + bonus 1 lac2 20 lac + bonus 2 lacs3 30 lacs + bonus 3 lacs4 40 lacs + bonus 4 lacs5 50 lacs + bonus 5 lacs6 50 lacs + bonus 3 lacs7 50 lacs + bonus 2 lacs8 50 lacs + bonus 1 lac

9 andOnwards

Total prem. Paid 21 lacs

Age at entry: 16 yearsPrem. Years: 8 years.

PLUS

Year Risk cover Prem.

50 lacs + bonus Nofor life time prem.

High risk coverage at lowpremium - Ideal for salaried andself employed class

6 lacsfrom 60 to 69 years.

Risk cover: 10 lacsAge at entry: 30 yearsYrly. Instalment: 10,182Total outgo: 3.05 lacsNo. Of years to be paid for: 30 yearsTerm: 30 yearsMaturity value: 3.05 lacsAge at maturity: 60 yearsFree risk cover after maturity:

Free risk cover for life time evenafter maturity

LIFELONG.

Risk cover: 10 lacsAge at entry: 30 yearsYrly. Instalment: 41,206Total outgo: 10.30 lacsNo. Of years to be paid for: 25 yearsTerm: 25 yearsMaturity value: 25.85 lacs @ currentbonus levelAge at maturity: 55 yearsFree risk cover after maturity:

Did you know? For NRIs too!!TAX-FREE

TAX-FREENRIs CAN HAVE

THINK TWICE !!

* LIC can offer yield of 7.25% on singlepremium policies.

* repatriable one time or regularinvestment @ 7% compounding.

* Only LIC, RBI Instruments & Postal investmentsare guaranteed by the Govt. of India.

* Most banks including nationalised banks are nomore insured for bank deposits.

Does your child desireoverseas study???Visit our web site:

www.valueplusinv.comfor valuable information