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| November 06, 2009 | | 3 tips on property investment process
When it comes to the process of making a property investment and exiting from it, there are a few things like transaction costs, liquidity and cash that you must keep in mind.
What makes real estate investments unique?
Real estate has a combination of characteristics that are not available through other asset classes, thus making it somewhat unique as an asset class.
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| November 05, 2009 | | Why prepaying home loan is a good tactic
Are there times when you feel really impatient about the fact that you need to wait several more years to free your home from debt? Well, here is a thought for you.
Why everyone must have a budget
Planning your budget makes you aware of your financial situation and helps you create a contingency fund to tap into, when in need. Now how do you start preparing to put money consistently into this contingency fund? Read on...
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| November 04, 2009 | | Read this before you opt for home loan!
There are many pitfalls that can turn this smooth process into a bumpy one. Here are some of those pitfalls that you should be aware of and avoid.
Warning! Check the home loan agreement carefully
A loan agreement is a 'contract' entered into between the borrower and the lender (banks and financial institutions) that regulates the terms of a loan. The loan agreement comes into picture immediately after the bank appraises your credit and the property that you have identified.
The awesome power of compounding!
How does compounding work? Well, when you save Rs 100 and get an annual interest of 10%, you will have Rs 110 at the end of one year. Due to compounding the next year you will get a 10% interest on Rs 110, which will then leave you with Rs 121. The next year, interest will be calculated on Rs 121 at 10% and so on. In time, these savings will grow exponentially.
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| October 29, 2009 | | Understanding a company's balance sheet
How do you determine if a company is financially strong? A company's balance sheet can give you the answer. Balance sheet is one of the most important and elemental financial statements found in a company's annual report.
All about block and bulk deals
The block or bulk deals can be considered only as a first level of investigation and an investor before investing in a share should look for more details like specific information about the company like its fundamentals, its performance and ranking in its industry, and its future plans and prospects.
How to get out of a debt trap
There are options like loan against property, stocks and life insurance policies.
Does IPO grading bring value to your investments?
The Securities and Exchange Board of India made it mandatory to grade all IPOs starting May 1, 2007.
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| October 16, 2009 | | Zero percent schemes, are they genuine?
It is an irrefutable fact that the demand for these schemes is highly felt during the festive season. Market experts believe that there is a marked spurt in sales of consumer durables due to these zero percent schemes.
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| October 13, 2009 | | How to get personal accident coverage
Personal Accident Coverage is a kind of insurance coverage that covers your financial losses resulting from an accident or disability.
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| October 09, 2009 | | All about tenant insurance
Tenants insurance offers a person living in a rented house cover against losses arising from theft, fire and natural calamities, among other things.
Need money? Sell off your insurance policy
While it is advisable to hold the insurance policy till its maturity, it is not always possible. Life throws up some unexpected challenges, and so we are forced to sell the policy, in order to raise cash to tide over these emergencies.
Buying a car? Here are some important tips
Many smart buyers wait for the year-end to buy a car. Auto makers and dealers come up with the best discounts in the month of December to clear stocks. But if you are planning to buy a car any time soon, the current festive season could be an equally attractive opportunity, thanks to the availability of cheaper finance.
The Ford legend
The new millennium has seen a downturn in profits for this brand. But knowing the legacy that is Ford, it can be safely said that success is just around the corner.
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| September 30, 2009 | | The best way to distribute your wealth
A private trust is a system where you create a trust and nominate yourself as the authorised owner of all the assets.
The smartest investment strategy
The key to savings is to identify, prioritize and plan your goals and work towards it else you might lose track of it. Remember, there might always be contingencies that could easily make a dent on your savings!
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| September 29, 2009 | | What is dual listing; why India may not adopt it
But what is dual listing all about? Why is India hesitant to adopt it? And what should be done? How does this issue stand between the Bharti and MTN deal? Let's find out.
What stock exchanges are all about
Everyday, stocks are exchanged and traded in numerous stock markets across the world. The liquidity they bring in is a vital component of economic growth. However, we seldom give the role of stock exchange any thought.
Of derivatives and their benefits
Derivates cover the entire gamut of trade and services available in the markets, from equities, equity indices, to commodities such as crude oil, cotton etc, to bullion like gold, silver and even weather derivates among others.
How does top-up insurance work?
A top up insurance would cost far lesser than a fresh insurance policy for a higher sum insured
Green homes: Good for your wallet, health and planet
A green home, when compared to a non-green home is more energy efficient, utilises less or optimum level of water and other natural resources, has green areas intended for plentiful sunlight and cross ventilation, all of which could save money and ensure better health
Understanding how value investing works
This article tries to clarify this term and help you gain a better understanding of how investments are made. But before we look at this term we have to understand that investments in stocks are made based on their value in the market.
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| September 28, 2009 | | Housing prices may go down
Global property consultancy firm, Knight Frank India, has said that prices in the residential property segment are likely to decline in a short time.
Wise strategy for smart investors
You can have an everlasting wait for corrections but that isn't sensible.
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| September 23, 2009 | | Check out these 6 different home loans
From buying a new home or property to renovating or extending an existing home or property, the home loans market has been witness to the arrival of more customised packages.
Dummies' guide to car insurance
Few insurance companies have launched new motor insurance policies which cover even depreciation and loss of driving license.
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| September 22, 2009 | | Protect your investments. Here's how!
Unless we do our home work right even the effective steps of the regulators will not help us. So, let us see what it takes to turn into a smart and wise investor that will help you protect and multiply your investment!
Secured credit cards, anyone?
In a scenario where credit card limits of credit card holders are being reduced or are being denied credit facilities due to bad credit history, what can one do? Secured credit cards can come to your rescue here.
Availing services of insurance broker? Read this!
An insurance broker is someone who acts as a go-between for businesses and insurance companies. Once you contact a business insurance broker and let them know what you need, they will search and find the best policies for your consideration.
How to choose an insurance broker
While selecting in an insurance broker, you need to remember that a good insurance broker: knows the industry; knows the procedures and processes of the various companies that offer coverage; can cut through the red tape and interpret the jargon found in most contracts; and has a good relationship with insurance companies.
Buying property? 5 must-dos!
Developers use this season to their advantage because they know that you will be most keen to make a real estate investment during these auspicious days. However, don't rush in blindly just because you want to buy something before this 'holy' period ends.
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| September 18, 2009 | | The truth about pre-approved loans
A pre approved personal/home/car loan is usually offered by banks to people who have a clean track record of loan repayment history.
Now, check your credit worthiness for Rs 142
All you need to do is fill up an application form available at Credit Information Bureau (India) or Cibil's website, attach a draft for Rs 142 and an identity proof and mail it to Cibil. The company's Managing Director Arun Thukral said that the report would reach you within a week.
Interest rate futures: The next big thing in derivatives trading
An interest rate future is a financial derivative. For the uninitiated, a derivative is a financial contract the value of which is 'derived' from a long-standing security such as a stock or a bond, or even an asset, or a market index.
Bank cuts rates, here's why your EMI won't change
Read on to find out the truth about how change in interest rates work and why a change in rate cut doesn't always mean an immediate lower EMI.
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| September 16, 2009 | | All about Bhavishya Nirman bonds
BNBs are bonds issued by NABARD. They are basically zero coupon bonds, meaning you don't get any interest on them.
How to insure your two-wheeler
When you purchase a two-wheeler, the dealer usually takes care of the hassles of registering the vehicle and getting it insured. However, you should know the types of insurance policies available and the features of the policies.
The benefits of single premium plans
Single premium policy is the insurance policy where you pay insurance only in the first year but continue to enjoy the life cover throughout the entire term of policy.
Even in a recession banks make merry, thanks to you!
The banking sector and particularly the banks in India, is probably the one industry that has not only managed to survive the economic slowdown but even thrive during these hard times. But how? Increased CASA deposits!
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| September 15, 2009 | | Home loan rates dive
Union Bank, Bank of India, ICICI Bank cut rates
How to find the real value of property
The sale value of a property may be different for the investor and the government. The first thing to work out is the difference in tax treatment for long-term and short-term capital gains.
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| September 14, 2009 | | The best small savings schemes
In the sharp media focus on stocks, FDs and gold, small savings schemes have been largely ignored by the public. But they must form a part of portfolio of every investor who is looking to save tax by investing small amounts.
When should I redeem my mutual fund?
Most portfolios are a mixture of stocks, bonds and cash equivalents. Usually, stock funds or equity funds are growth oriented, cash funds serve the liquidity purposes, and bonds yield income. As an investor it is wise to be in touch with your fund manager from time to time to relook at your asset allocation, which is an ongoing process.
Reduce EMI and loan tenure, save money!
Whenever you take a loan, you have to pay interest on the borrowed amount. This interest is an expense. Higher the interest rate, higher the amount you pay towards interest. So you end up paying more towards the loan, thus making the purchase costly. Hence it is essential for you to reduce the amount you pay towards your EMI.
How the market tells you when to stop
If you are having a string of winners, don't stop trading arbitrarily.
Have a fixed deposit? Get a credit card!
Four indian banks are offering cards with a credit limit of 80-90 per cent of the fixed deposit.
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| September 10, 2009 | | Cost of owning a bank account
Have you been made aware of the various costs in owning a bank account? Here are some important aspects you should be aware of
How the Shariah index helps Islamic investors
A Shariah Index is an index of companies that are found to be complaint with the stringent rules of the Shariah. The companies listed here on this index called the Shariah indices have been created and updated based on an existing index, which were already monitored by a separate board for conformity of the principles of the Holy Quran.
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| September 09, 2009 | | Are fixed-cum-floating rate loans right for you?
Fixed or floating rate loan? This is the most common question plaguing millions of borrowers. Which one is right for them? How will opting for one type of loan impact their finances? These types of questions are commonly faced by the borrowers. So in order to help the borrowers, financial institutions have introduced fixed cum floating rate loans. Here is a lowdown on this type of hybrid loan.
A simple three-step retirement plan
Retirement does not necessarily mean lazy around on a beach with nothing on your mind, but is more than that. You have to think about the uncertainty of pension benefits, unforeseen medical expenses etc.
Separating? Take stock of your finances!
While separation is traumatic for both the concerned, a woman is particularly more affected. This is where proper financial planning is important, so that if divorce occurs, the financial affairs are handled seamlessly. Here are the most important things that must be considered when separating.
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| September 08, 2009 | | All about employee perks
With the abolition of the fringe benefit tax, it is back to the old perquisite tax.
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| September 02, 2009 | | How an asset management company can help you
An assest management company invests its clients' pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves.
Discontinuing your insurance policy: Some tips
If you find yourself stuck with a wrong policy situation, consult your financial planners or insurance advisors and then decide on continuing the policy based on the merits of the case and your finances, among other factors.
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| September 01, 2009 | | Which IT form is right for me?
When filing your tax returns, it is important to submit the correct form. Use the proper form to save yourself of the trouble later on.
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| August 31, 2009 | | Factors involved in planning your child's future
The purpose for kids could be - secondary education, higher studies, marriage, house, other facilities. So one has to enumerate what all is required to be catered to. Each of these items has a cost -some cost many more times than others.
All about taking loan against property
Loan against property can be taken against a self-occupied residence or a commercial building. The main requirement on the bank's part is that there should not be any other encumbrance.
7 things to do (and not do) in a downturn
The economic slowdown in India and the recession in many parts of the world are affecting us all in many ways. Here is a list of things that we need to do and some that we should not do during the downturn:
Will new PIN protect your credit card online?
Credit card fraud is a growing crime today. It is essential to take security precautions to prevent yourself from falling victim to the fraudsters.
Understanding core sector stocks
Core sector stocks are sector-specific. Here sector means, the core industrials sectors - power, construction, capital goods, telecom, etc. These stocks are good investment options because they are closely connected to the development of a country. As a country develops, so does the value of these stocks.
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| August 27, 2009 | | Free ATM usage now curtailed!
RBI has imposed a withdrawal limit of Rs. 10,000 per transaction at the third-party ATM as well as limited such transactions to 5 per month.
What is book building all about?
During the IPO or FPO, the company offers its shares to the public either at fixed price or offers a price range, so that the investors can decide on the right price.
Getting married? Insure your wedding!
Just like we have life insurance to protect our life, car insurance to safeguard our car and health insurance to secure our health, we have wedding insurance to ensure our wedding goes off smoothly.
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| August 26, 2009 | | What is excise duty all about?
An excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax(CENVAT).
A note on the tax havens of the world
A tax haven, or a place in which certain taxes are imposed either at a low rate or not at all, is the best possible way out for those interested in reducing their tax liabilities.
Will the new direct taxes code hurt India Inc?
The proposal to levy a minimum tax based on assets undoes most of the good that the code seeks to do and will discourage capital-intensive industries.
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| August 25, 2009 | | Of NRIs and tax returns
If you are an NRI and have a business or asset in India, that provides you with income, you are required to pay income tax just like any other Indian. Indian taxation laws are quite different for NRIs and it is important that you are aware of what you are liable to pay.
Just who is an Ombudsman?
Who is an Ombudsman?
Can you recognize a counterfeit note?
The RBI has issued certain guidelines to detect counterfeit notes. Some of the common ways to detect fake are Watermark, Security Thread, Colour and Fluorescence.
Is the time ripe to buy a home yet?
For those planning on buying a house, it is the best time to start looking around and negotiating. Considering that banks are floating new schemes to fund home buyers, you can shop around for loans that give you the best deal.
How to ensure financial security for family
For generating fixed income, you can also look at the Post Office monthly income scheme, which will pay interest at 8 per cent per annum, taxable in the hands of the account holder.
Tips to choose the right ETFs
The exchange traded fund (ETF), the most exciting investment in the market, is capable of giving sweeping returns.
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| August 21, 2009 | | How businesses are affected by new tax code
The draft Direct Taxes Code promised by the finance minister is up for discussion. This article looks at the proposed changes in the new code which would affect businesses.
How new tax code affects individuals
What does the proposed Direct Taxes Code hold for the common man? A look at visible effects and implications of the proposals on our monies.
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| August 18, 2009 | | Is the stock market a gambling arena?
Long-term investors can never lose money in the stock market if the fundamentals are right!
Employer-backed health insurance not enough
The corporate health policy ceases under following circumstances: The company winds up; you resign or you are terminated from the company; you retire from the services at the age of 60; the company decides to withdraw the health policy benefit to employees, i.e. there is no law that the company should provide health policy to employee; most corporate policies also have restrictive covers.
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| August 17, 2009 | | Own a vintage car? Insure it now!
Car enthusiasts pride themselves on the car that they drive and care for it as though it's a part of their family and not just a mere mode of transportation. This is especially true for owners of vintage cars who draw their purse strings together when it comes to taking care of their beloved cars.
Direct taxes code: The debate has begun
The Direct Taxes Code is being mooted as a replacement to the Income Tax Act 1961. What is the idea behind replacing something that has been around for close to 50 years and what is the strategy behind the exercise?
All you want to know about hedging
Hedging refers to a method of reducing the risk of loss caused by price fluctuation.
Markets: How to make sense of trends
At the end of the day, you need to listen to what the price and the oscillators are telling you.
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| August 14, 2009 | | Gold loans: Best for urgent money needs
You can mortgage gold with any bank, with the minimum of paperwork and walk out with the money almost immediately. Some banks claim to process gold loans in three minutes, while most banks hand you the money within an hour!
How does forex trading work?
Forex trading is the act of trading currencies from different countries against each other. Forex is acronym for foreign exchange.
PE ratio: How it helps buy great stocks
PE ratio is one of the most widely used tools for stock selection. It is calculated by dividing the current market price of the stock by its earning per share (EPS). It shows the sum of money you are ready to pay for each rupee worth of the earnings of the company.
Does high turnover ratio mean higher returns?
In certain cases, the fund manager tends to buy stocks and hold onto them for a long time and only sells them if certain situations so demand. But in other cases, the fund manager keeps on buying and selling the stocks that his fund holds.
All about Foreign Currency Convertible Bonds
A Foreign Currency Convertible Bond (FCCB) is a type of convertible bond issued in a currency different than the issuer's domestic currency.
How to beat inflation
The most common method of benefiting from indexation is to prolong booking profits, such that it spreads out over two financial years.
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| August 13, 2009 | | How to make a good stocks portfolio
Recognize whether you are a day trader, punting on every rumour that you come across, or if you are a value investor who buys and holds for at least a minimum of 4-5 years.
Planning an overseas trip? Some tips
A holiday overseas is a dream shared by almost everyone. But a holiday, a time to just relax and enjoy, can quickly turn into a nightmare if not planned properly.
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| August 11, 2009 | | Basic math in investing!
Let us now try to understand basic mathematical techniques that will enable us to make informed decisions regarding our investments.
Understanding RBI's BoP review
The recently released RBI First Quarter Review of Monetary Policy 2009-10 and the accompanying 'Macroeconomic and Monetary Developments First quarter review 2009-10 have indicated that on the basis of Balance of Payments (BoP) the export growth for 08-09 has declined by over 22% to 5.4% and also the import growth has declined by over 21% during the same period.
CanBank slashes home, car loan rates
Canara Bank, the Bangalore-based public sector bank, has slashed interest rates on vehicle loans and home loans, which will be effective for all loans taken after August 1, 2009.
How SBI scores over peers in home loans
Rate cut, increase in limit, withdrawal of processing charges are some of the pluses.
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| August 10, 2009 | | Making sense of a stock price chart
When you can't make sense of a stock price chart, try these.
A guide to new rules on ULIPs
The introduction of the new guidelines for expenses on unit linked insurance plans (ULIP) will mean that investors will benefit from the lower cost.
How online shopping is more secure
A recent directive from RBI makes it mandatory to have an additional authentication pass code verified by VISA or MSC (Master Secure Code) mandatory. This is over and above what is visible on your card. This is in effect from August 1, 2009 onwards.
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| August 06, 2009 | | 'Income' according to tax laws!
Here's a ready reckoner on how the taxman computes your income. This article tries to give an insight into what constitutes income and what does not according to the IT department.
Are child insurance plans really good?
Children's plans are insurance-cum-investment plans offered by insurance companies are similar to ULIPs (unit-linked insurance plans). However, the difference between a ULIP and a children's plan is that the parent starts investing in the children's plan right from the time the child is born and can withdraw the savings once the child reaches adulthood.
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| August 05, 2009 | | Understand risk, understand beta
Different sectors and funds have different levels of volatility. So their beta values will differ. However, beta should be used along with other factors like management expertise, future prospects and your investment horizon. The longer your investment timeframe, the lesser the volatility, and thus lower the risk.
The most essential life insurance plan
Term plans are products which are plain vanilla (no frills) that give us very high life covers for very low premiums.
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| July 31, 2009 | | All about loans for professionals
People like Doctors, Chartered Accountants, Interior Decorators, Architects, Company Secretary etc. fall in the category of self-employed professionals. Given here are the different categories of documents that a self-employed professional has to fulfil.
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| July 30, 2009 | | How to make money in volatile markets
In a falling market almost every diversified portfolio or mutual fund will lose money and an investor who expects a decline should be out of stocks altogether
How to handle collection calls/agents
How do you ensure that each time that they visit you, you are not left with a headache? Firstly, let's understand what these agencies are.
Military insurance: Will it come to India?
It is important to note that the military provides group insurance to military personnel. However, with the growing financial requirements while running a family, this insurance might not be adequate. We can only wait and watch, when such insurance will be available in India.
Is your pet insured?
The purpose of pet insurance is to mitigate the risk of incurring significant expense to treat ill or injured pets.
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| July 29, 2009 | | What you need to know about co-operative banks
Co-operative banks are small-sized units organized in the co-operative sector which operate both in urban and non-urban centers. These banks are traditionally centered around communities, localities and work place groups and they essentially lend to small borrowers and businesses.
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| July 28, 2009 | | How to ensure you have right amount of insurance
Here are the main steps when deciding the right insurance cover for you.
How to beat market ups and downs smartly
Market volatility means while the market can rise sharply, it can also go down dramatically. As a result, those who have invested their money will see the value of their investment sway sharply. Particularly new investors are affected during the market crash, when they see their investments being wiped out. Hence it is important for every smart investor to tackle market volatility intelligently.
Tips to select the right financial planner
If you aim to achieve your financial goals, choosing a right financial planner is the most important step. He should be qualified, competent, easily accessible and able to meet all your financial needs. He will be your partner in helping you reach your financial objective. So choose wisely to achieve your goals successfully.
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| July 27, 2009 | | Helpful tips on buying a car
Buying a new car can quickly turn from a beautiful dream to a horrible nightmare if you are not careful. Let's take a look at some tips for you to use when you plan to buy your car.
Retired? Invest here for higher returns
If you are wondering where to invest, here are some excellent investment options for you.
Investing in stocks: How 'moving averages' help
A simple moving average is formed by computing the average price of a security over a specified number of periods.
Is your income Indian enough?
A look at what constitutes Income on Indian soil and what is not from the perspective of the income tax department. The income tax department defines certain incomes as Accruing or Arising in India. This is the basis of calculating your income and income tax. Let's get to know a bit more. . .
Filing tax returns? These details are a must
Besides income and deductions, it is mandatory to mention some other specific details in your individual returns.
Investing in IPOs can be lucrative now
Promoters are likely to price them cautiously, thereby leaving value on the table for the primary investor.
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| July 24, 2009 | | Avoid these 2 mistakes and become rich!
You have extreme greed and extreme fear. What you see when you review long-term history is that when you have extreme greed, markets become very overvalued and bubbles occur, and, when you have extreme fear, markets become very undervalued.
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| July 21, 2009 | | A word on real estate foreclosures
Foreclosure is a procedure that takes place when the borrower is not able to pay the loan on time. Due to this reason the lender (banks, financial institutions) would declare the borrower as a defaulter. If the borrower is not able to meet the loan expectations for a prolonged period of time, then the lender would try to sell the property and recover the losses that were created by the lender.
Do you have disability insurance?
Disability insurance, often called disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that disability will make working (and therefore earning) impossible. It includes paid sick leave, short-term disability benefits, and long-term disability benefits.
Don't let NAV mislead you
We all tend to look at the returns of the mutual fund before taking a decision to invest our hard-earned money in it. The returns actually denote the appreciation/depreciation of the NAV of the fund. Unfortunately, NAV (Net Asset Value) of the fund is grossly misunderstood. Here we attempt to clear the myth surrounding NAV.
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| July 17, 2009 | | Budget tips for frequent travellers
Do you have wings on your feet? Are you happy to travel until your money runs out? You're a free spirit, but what if your job's not waiting when you come back?
Got insurance? Remember the premium!
Generally, there is a grace period for paying your insurance premiums -- a period of one month. During this period, the policy remains valid. However, beyond one month, the policy lapses, and no claims will be entertained by the insurance company in case of any eventuality.
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| July 14, 2009 | | All about liquid funds
When we try and understand the term 'liquid' in financial terms, it means an asset which is as good as hard cash. Real estate is the least 'liquid' of all assets and a savings deposit is the most 'liquid' of all. Similarly, Liquid Funds are a kind of mutual fund or debt fund which can be redeemed in as less as 24 hours.
Understanding the price-inflation link
Inflation does NOT, however, mean an increase in the general price level of goods and services within a country. What inflation actually means is an inflation of the money supply, i.e. an increase in the total number of rupees in circulation.
Renting a flat? Here is a checklist!
The job of looking for an apartment on rent is not what you would call fun. However, if you know exactly what you want and where to look, you will find that it's not as bad as you thought. In fact, with these tips you may even start enjoying it.
Are you protected against floods?
Flood insurance denotes the specific insurance coverage against property loss from flooding. The protection offered by most policy covers losses incurred due to some failure at the home itself.
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| July 13, 2009 | | 7 reasons why wife must know about finances
This is the time to sit down and stress on the importance of your partner needing to be aware of all important financial information. This may not be the most entertaining of activities, but it is the key to taking the best possible care of one of the most important people in your life.
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| July 10, 2009 | | What the Budget holds for the coming year
Here is a quick round up of what budget 09-10 is expected to hold for the Indians this coming year.
Budget: Why it's a boon for small businesses
The Budget 2009 has spared small businesses from a lot of administrative hassles. Finance Minister Pranab Mukherjee has submitted that small businesses below the turnover of Rs 40 lakh (Rs 4 million) have the option of declaring income at 8 per cent of their turnover and pay taxes accordingly.
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| July 06, 2009 | | The new tax slabs
With basic exemption for individual tax payers increased by Rs 10,000 for general tax payers and women and Rs 15,000 for senior citizens (i.e. 65 years and above), the tax slabs will stand as follows:
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| July 05, 2009 | | Don't get swept by Ulip talk
With the Securities and Exchange Board of India abolishing the entry load on mutual funds, sector experts believe distributors are likely to aggressively push high-commission insurance products. The quashing, applicable from August 1, will bring down their commission to less than half of what they earn right now. The result is likely to be aggressive selling of, for one, unit-linked insurance plans (Ulips).
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| July 04, 2009 | | Own part of a PSU and partner with FM?
From a consumer point of view too this would bring about an improvement in the service levels of these companies as there would be more pressure on these companies to perform better and get profits.
How will the Budget hit your wallet
Here's a quick compilation of items that could be impacted by the Budget, thereby affecting our personal finances. But do keep in mind that not all of these could happen, or happen in the magnitude that they are expected to.
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| July 03, 2009 | | Exempt Exempt Tax: Boon or bane?
There has been considerable discussion during the past few years about the Government changing from the EEE to EET Tax regime related to tax saving financial products. The acronyms have a simple expansion: Exempt -- Exempt -- Exempt and Exempt -- Exempt -- Tax. With the upcoming Budget expected to give some direction on this issue, its time we understood what these terms mean and their impact on our pockets.
Why the Rs 1 lakh tax-free investment limit is useless
A case study on why the Rs 1 lakh (Rs 100,000) tax-free investment limit for Section 80C of the Income Tax Act is ridiculously low and impractical.
Budget, interest rates and you!
The debate on interest rates continues on the days leading to the Budget. So what are its consequences on our household budgets and pockets? Read on. . .
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| July 01, 2009 | | Online security enhanced for credit cards?
In one of its recent announcements, the Reserve Bank of India announced that come August all online credit and debit transactions will need to go through one more step before they can be completed successfully.
Buying a car? Know your insurance premium
Insurance premium is not common for all types of cars. Hence, you should know the premium amount before you decide to buy a car.
Are index funds right for you?
These funds constitute their portfolio using the same stocks and in the same ratio as found in the index. These funds simply mirror the index. So their returns are in the same line as the returns generated by the index. They will never outperform the index.
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| June 24, 2009 | | Of NRIs and gifting property
No special permission is required for an Indian citizen residing outside India to acquire (by purchase or gift) any immovable property in India other than agricultural land, plantation property or a farmhouse.
Insurance: Waiver of premium rider
Riders are the additional benefits that you may buy and add to your policy. They are options that allow you to enhance your insurance cover, qualitatively and quantitatively. Riders can be mixed and matched based on one's preferences for a small additional cost.
Reduce tenure, not EMI, when home loan rates dip
Reduced EMIs may be very appealing to borrowers because of a lesser burden on a monthly basis, but there is a catch to it. If the tenure remains unchanged, there is a higher interest outgo.
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| June 23, 2009 | | Wacky insurance covers: Body parts
Celebrities are known by one of bodily features and it serves as their means of livelihood and fame. Therefore, it is important for them to safeguard what brings them fame and money!
Select the right diversified MF to prosper
If you are in a dilemma about how to select the right fund, then read on to get help on the selection criteria.
Some smart ways to save and still have fun!
We will discuss here how to tighten your belt, in a number of small-yet-effective ways, so that you can maintain your lifestyle, discover new and better habits, as well as save along the way.
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| June 19, 2009 | | Have you tried the multi-currency card?
What about when you go to different countries, and have to change from US Dollars to Pound Sterling to the Euro? Fazed by all the rates of exchange? Not quite sure how much you're losing with each transaction? Don't lose heart. In these times of instant cash and virtual travel, the multi currency card might just be the ticket.
Signing agreement with builder? 5-point checklist!
Let's take a look at the points you need to remember and the measures you can take against them while signing an agreement with a builder.
How to make a good household budget
A good budget allows you control over your money, helps you enjoy rather than worry over it, makes spending more purposeful, and protects you from financial problems.
Money tips for NRIs returning to India
While bringing over your money to India you should take care to ensure it is done in such a way so as to reduce your tax liability and let you repatriate it back to your residence abroad, should you opt to move back.
The implications of tax evasion
Simply put, tax evasion occurs when any trust, individual, or firm, seeks to avoid paying taxes by illegal and unfair means, by, for example, deliberately hiding income from the tax authorities to reduce the tax liability.
10 ways to use your credit card right!
Here are some pointers on what to do and what not to do in order to achieve this reality.
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| June 15, 2009 | | How to choose the right insurance policy
First and foremost, choosing an insurance policy must be based on your current and projected income or simply put your current and projected ability to pay the insurance premiums, your medical state, your age, future financial plans, etc.
Understanding some mutual fund terms
People are dabbling in the stock markets and you would always a find a group in an office talking about the market performance. With this changing trend it is important to understand some lesser known details of one of the most popular investment options -- mutual funds.
File tax returns in 3 easy steps; last date July 31
If you've passed the hurdle of paying taxes in the month of March, then the next task at hand is to file your income tax returns -- a necessity that most people consider a chore, or don't quite know how to go about.
Insurance relief for the elderly
Getting or renewing health insurance when not young remains a problem, but there's some limited relief now.
Make money with bars, candlesticks
These two charts will help you understand a bearish and a bullish trend.
Making sense of financial statements
It is important to know the company you are putting money in. And it isn't difficult either.
Real estate stocks: A trader's delight
Investors cannot follow a buy-and-hold strategy, but there can be short-term gains.
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| June 12, 2009 | | No demat, trading account for gold papers
Reliance Mutual Fund and UTI Mutual Fund have applied to Sebi to start schemes that will collect money directly from investors and buy units in Gold Exchange Traded Funds. Though at a slightly high cost, these schemes take away the hassle of maintaining demat and trading accounts with brokers. "These two factors were the biggest hindrance for gold ETFs," said Devendra Nevgi, ex-CIO, Quantum Asset Management. Nevgi started the gold ETF at the fund house.
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| June 10, 2009 | | Gilt funds can be double-edged swords
Gilt funds are nothing but debt funds that primarily invest in government securities (G-Secs). However they differ from conventional debt funds in that, while a traditional debt fund invests in all types of debt instruments, gilt funds have narrow investment objective. They just focus on G-Secs.
Returning to India? Pay your income tax
Here we take a look at income tax rules governing income tax for the NRIs in India.
Sellers have no clue about New Pension Scheme
Institutions that are supposed to promote and sell the product are more or less clueless about it even though it has been a month since the scheme was launched on May 1. Only few of the institutions that have been nominated to help investors enrol are aware of the procedures. There were no designated help desks. At best, one could only get the form.
E-payment, online application for NPS
The software is being developed in association with the Central Record-keeping Agency. It is expected to debut by the end of this year. PFRDA is also looking to have an ombudsman for redressal of investor grievances. To increase liquidity of the scheme, there could also be Tier-II accounts by the end of this year, which would allow investors to withdraw money at any given point of time.
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| June 09, 2009 | | Your guide to advance tax
Each year, the newspapers carry notices issued by the income tax department to pay advance tax by 31st March. What is advance tax? What are its pros and cons?
How to be more careful with your credit card
Can you imagine your life without a credit card? Whether it's to make payments online, shop till you drop, or for use as a lifeline in an emergency, the arrival of the credit card has been fortuitous both for the consumer, as well as the credit card company.
Learn more about tax-saving mutual funds
ELSS are mutual funds that invest in the stock market and give the tax benefit under Section 80C of the Income Tax Act.
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| June 03, 2009 | | Buying MFs: Check out the various charges
What are the points to consider when you evaluate a prospectus? Apart from looking at the fund's track record, latest performance and the credit worthiness of the fund managers, you need to look into the fund expenses as well.
All you want to know about the Monthly Income Plan
If you're looking at saving for a rainy day, and hope to have a steady stream of income when you retire, then the Monthly Income Plan might be just the ticket.
Don't invest in an MF just for dividend!
Here we take a look at what dividend is, why mutual fund dividend is not a true dividend and why investing just for the sake of dividend can make you poorer.
Buying stocks? 4 points to note!
Equity investment refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises.
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| June 01, 2009 | | 7 things to do with your credit report
Now, many of you must be wondering how your credit report will look like, how to go about setting any mistakes in the report right, how to maximise the benefits of being able to access your credit score and other such issues.
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| May 28, 2009 | | Investing in right instruments can make you rich
Are you confused about where to invest your hard-earned money? Do you want to earn high returns while ensuring the security of your capital? Then here are some hot investment options that will help you maximize the returns on your investment.
Money market funds: Making your money work harder
Money market funds are mutual fund schemes that invest money in fixed income securities, whose maturity period is below one year. These securities can consist of treasury bills, commercial papers, certificate of deposits, short-term fixed deposits; and call money market.
Investing in an MF? Choose the right plan!
Looking to invest in mutual fund but don't know which mutual fund plan to go for? Are you confused by the recommendations given by various investment advisors about which mutual fund plan to select?
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| May 27, 2009 | | Ulip or term insurance? What's better?
Ulips are similar to mutual funds except that they provide life cover, tax benefits and need to be kept for long term.
What you need to know about hedge funds
A hedge fund is an investment vehicle that pursues absolute returns on its underlying investments, which includes stocks, bonds, commodities, currencies, derivatives, etc., while applying non-traditional portfolio management techniques such as shorting, leveraging, arbitrage, swaps, and so on.
The perfect retirement savings plan
Everyone wants to have a comfortable retirement, but without adequate planning it probably won't happen.
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| May 26, 2009 | | Be Indian, go global with international funds
Global funds are mutual funds that invest their money in companies located in other countries. They can also invest their money in a particular region, like Asia. They may also choose to invest their money in companies operating in a particular sector like infrastructure.
Will TDS affect your FD returns?
Remember it is very important for an investor to consider even the taxation aspect of their investment as taxes can significantly lower your returns generated by the investment. In case of FDs, banks deduct TDS before letting you withdraw the final amount at maturity.
SIP your way to wealth!
SIP (Systematic Investment Plan) is one of the most effective ways of investing in equity markets. In SIP, you invest a certain amount each month into the equity mutual fund of your choice. This amount can be as low as Rs 100.
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| May 25, 2009 | | The best opportunity funds
If an opportunity fund is true to its calling, it will move all around, scouting for the right opportunities, be it in market-cap, sector-wise or theme-wise holdings.
Travel insurance: What you must know
Taking health insurance is part of going abroad, but watch when you choose to make small claims, says .
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| May 21, 2009 | | How investing in stocks can make you rich
If you want to grow rich, you need to both save and make your money work for you. When you have lots of time, but not lots of money in hand to begin with, the best way to build wealth is by investing in stocks.
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| May 20, 2009 | | How to get I-T refunds faster
If you are an individual, you will get your refunds quicker.
Want to borrow from friends? No tax!
A recent ruling by Income Tax Appellate Tribunal (ITAT) in the case of Chandrakant Shah stated that if you borrow interest-free money from friends and colleagues neither you nor the lender will have to pay tax.
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| May 15, 2009 | | Types of life insurance: What you must know
Why is life insurance important? Is it something that you should consider? Have you thought about your family's financial state, or your security after you've retired? How will you take care of them, or yourself?
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| May 14, 2009 | | How to select the right credit card
We answer some of your questions on how to select the right credit card for your needs.
Some basic facts about mutual funds
Investing in a mutual fund allows you to minimise risk and maximise returns, because it acts as a middle man for a group of investors with a shared and predefined investment objective. If your main objective is security in investment but you don't know how to begin, a mutual fund is one way to go.
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| May 12, 2009 | | How to start saving: 4 smart steps
You might wonder how to begin saving if your income is already over-committed. Efficiency and discipline are the answers.
Fixed deposits: Are they for you?
Every investor in a fixed deposit must remember that FDs are also an investment option and as with any investment option, they too have their own pros and cons. Check them out...
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| May 11, 2009 | | Renting a house? A legal checklist
Here are some basic guidelines, which should keep you out of trouble. Rental laws again differ from state to state and hence these guidelines are restricted to some general laws.
Pros and cons of personal loans
Before you rush out to get a personal loan, it is important for you to understand the pros and cons of personal loan, in order to make an informed decision.
Distributing wealth among your kids? Here's help!
While distributing wealth, parents need to ensure that their children's expectations are taken into account.
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| May 08, 2009 | | How do credit cards work?
Credit card is a powerful credit tool to help you tide over short term financial requirements.
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| May 07, 2009 | | What are sub-PLR loans?
Some banks provide loans and advances at a rate lower than the BPLR of the bank to customers availing finance for business purposes or short-term funds for various needs.
Car insurance: What you must know
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
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| May 06, 2009 | | Why you MUST have loan insurance
Loan protection insurance, or loan payment protection insurance, is a form of payment protection insurance. This type of insurance can help you protect your monthly loan payments if you become unemployed or suffer an accident or sickness.
Co-ownership of property & your rights
Co-ownership, or joint ownership, simply put is when two or more persons hold title to the same property.
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| May 04, 2009 | | All about ULIPs
With the changing financial scenario, more and more people are curious to know the intricacies of various financial instruments that are there for the picking. One such investment instrument is a United Linked Investment Plan (ULIP).
How to get a tax refund?
Once the formalities are completed, we think little about any tax refunds. Tax refunds are something that a few of us might get and a few of us might not. To be prepared it is prudent to know some basic information about tax refunds.
Card insurance: Too simple, too little
Card protection through insurance is a good idea, but stringent guidelines make it quite unattractive.
Saving accounts to become more lucrative
At present, though the interest calculation is done on a monthly basis, the account holder is paid the amount either at the end of three or six months. And the balance considered while paying the interest is the lowest amount in the account between the tenth and the end of any month. The new guidelines for interest calculation on savings bank accounts will increase returns significantly for account holders.
What you must know about making a Will
A will is a document to ensure that your wishes with respect to your estate are followed after your death, says financial advisor .
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| April 30, 2009 | | All about 'loan against rent receivables'
Do you have a residential or commercial property? Do you want to improve the condition of this property to enhance your prospects of earning higher rent, but lack the necessary financial resources for the same?
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| April 29, 2009 | | Housing prices could fall 25% more
While interest rate cuts by banks have been comparatively faster in being implemented, largely through the consistent efforts of the Reserve Bank of India, the builder community has been reluctant to follow suit with ready price cuts, even when the uncomfortable truth remains that there is no choice in the matter.
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| April 27, 2009 | | RBI to the rescue?
The most recent RBI effort could be the final push that would allow enough and more room for banks, builders and buyers to start moving towards change.
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| April 23, 2009 | | 10 don'ts for smart stock market investing
This is a great check list of 10 habits, impulses and tendencies you steer clear of in order to keep your investments healthy.
How to get out of credit card debt
Are you actually managing your finances, or do you swing from month to month on pure chance and luck? Now is the time to take control.
Some credit card options
The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1920s in the United States, specifically to sell fuel to a growing number of automobile owners.
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| April 22, 2009 | | When NOT to take a personal loan
Getting a loan today has become very easy, what with the stiff competition prevalent among different banks. The easiest to get among the plethora of loans available are personal loans. Personal loans are easy to get, but they have their pros and cons:
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| April 22, 2009 | | When NOT to take a personal loan
Getting a loan today has become very easy, what with the stiff competition prevalent among different banks. The easiest to get among the plethora of loans available are personal loans. Personal loans are easy to get, but they have their pros and cons:
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| April 20, 2009 | |
An easy way to repay your home loan
You need not worry about the long tenure as you can prepay the amount that is around 3-4 times your EMI periodically like once a quarter or when your year end bonus comes through.
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| April 10, 2009 | |
A golden investment opportunity
Deposit a minimum 500 grams of gold to a selected SBI branch, specify the tenure and deposit the metal. The interest rate for a 3-year deposit is 1 per cent, for four years it is 1.25 per cent and for a five-year tenure it is 1.5 per cent. And, on top of it, the income from this deposit is tax-free. "This is possible because when you deposit the gold, SBI gives you a gold bond. And there is no wealth tax on gold held in paper or electronic form," said CA Kanu Doshi.
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| April 06, 2009 | |
Exchange stocks for a holiday abroad...
Investment advisers believe that it makes little sense to swap assets (shares) accumulated over time for an expense (holiday). "Selling shares of a blue-chip company only reflects that you don't believe in it," said Gaurav Mashruwala, a certified financial planner.
How to be safe from credit card fraud
Being vigilant while using your credit card is the only way of preventing fraud. Here are some tips.
Buying home insurance? Here are some tips
Home insurance is not unlike life insurance. In a life insurance scheme, your nominees or dependents are offered an amount in case of your untimely death, due to natural causes or otherwise.
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| April 01, 2009 | | Recession ripples? Just hang in there!
Experts predict that the slowdown will last through the first half of 2009 in India, after which a slow revival will begin. As and when that happens, a lot will need to be done to adjust to the new circumstances.
Credit cards: Of charges, perks and rewards
Apart from the exciting and often tempting credit card offers, have we ever looked at the fine print, the stuff that actually makes the difference between a good and a bad choice? Most probably, not.
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| March 31, 2009 | | 7 alerts for a money crunch!
It is time to take stock of your organisational skills, at least in your personal finance department.
The best time is here to buy a car
Over the past few quarters, the auto industry's sales had been badly hit due to the recession. As a result, auto companies, distributors as well as direct selling agents are doing their best now to sweeten the deal for prospective customers.
Tax smart: How a will can save you a lot of tax
A 'will' unlocks many exclusive tax advantages which are otherwise not available to taxpayers. Here are five important ways in which a will can save you tax. . .
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| March 27, 2009 | | NRI bank accounts: Some facts
Banking laws for NRIs allow for the following deposit schemes, or simply put, accounts with authorized dealers -- banks and financial institutions authorized by Reserve Bank of India to deal in foreign exchange -- to be maintained in Indian rupees and in foreign currency.
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| March 25, 2009 | | The truth about cash-back credit cards
Let's take a look at the features of one particular offering which has generated quite a following in recent times -- 'cash-back' offers, which are often promotional schemes for limited periods that are run periodically by all the credit card companies.
The basics of PPF
PPF is a long-term, government-backed small savings scheme of the Central government started with the objective of providing old age income security to the workers in the unorganised sector and self-employed individuals.
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| March 23, 2009 | | Crisis: Book loss to benefit
Booking one's loss will help investors in these trying times, says
Financial planning: A few year-end tips
With the financial year coming to an end, it's time to do that all important review. And there are a lot of things that need to be taken into consideration. The financial review will include investing in tax-saving instruments under different sections, tax implications of equity and debt instruments and even rejigging the portfolio to keep the asset allocation in line with pre-defined goals.
Investing mantra: Keep it simple
Chances are that some so-called investment consultant will confuse you with so many permutations and combinations that you will resign yourself to buying something that is not needed.
Here are a few basics of investing
After the collateral debt obligations crisis, all the other 'quants' have been lumped together as fast dancers who do amoral complex things. This is an understandable perception, but unfair.
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| March 18, 2009 | | All you wanted to know about credit cards
A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services.
3 golden rules for a great financial plan
Even senior investors require equity in their investment basket. It may not be a question of whether they can afford to invest in equity, but whether they can afford not to.
Home buying: All about the down payment
'Down payment', simply put, is the difference between the purchase price of a property and the mortgage loan amount. It underlines the buyer's commitment to complete the deal and indicates the buyer's fidelity in making the loan payments.
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| March 17, 2009 | | Opting for a home loan? Check this first!
Decided to buy your own house? There are many pitfalls that can turn this process into a bumpy one. Here are some of those pitfalls that you should be aware of and avoid.
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| March 09, 2009 | | Single woman? Here's a financial planner for you!
When it comes to making investment decisions, women tend to shift this responsibility on their close family members. While trusting one's close family members is not wrong; completely depending on them can lead to trouble when one is left alone. The reasons could be an eventuality in the family or a separation from spouse.
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| March 06, 2009 | | 5 investment secrets of a self-made millionaire
Accept that you cannot judge the quality of a single trade or investment by whether you made a profit or loss.
All about reverse mortgage
A reverse mortgage (or lifetime mortgage) is a loan available to senior citizens. Reverse mortgage, as its name suggests, is exactly opposite of a typical mortgage, such as a home loan.
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| March 05, 2009 | | Loan against property: What you must know
There are many ways you could arrange for money, and one of those ways is taking a loan. You could take a personal loan for the amount required, or you could take a loan against your property.
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| February 23, 2009 | | The dream home bargain
Have you ever considered a home auction that is periodically conducted by several banks? You actually can get a house which is lesser by nearly 20 per cent of the current market value. Let us help you get started on some research for you to build the plan for your steal.
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| February 13, 2009 | | SBI's 8% home loan rate lure
The interest rate scheme where 8 per cent is frozen for one year may not actually be as profitable as it appears upfront.
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| February 02, 2009 | | Investing in MFs? Get up-to-date
Some fund houses have modified the terms of their schemes. How does it impact you?
Make money during a buyback
A market-savvy investor can also use this opportunity to make a quick buck. That is, purchase the share at a lower price from the market and sell it back to the company at a higher price.
Dividend or growth: Fund investment dilemmas
Can you redeem money invested in ELSS funds before the lock-in period is over? Mutual fund expert Value Research answers these and other queries related to investment in funds.
The best equity tax saver funds
You get a tax benefit when you invest in an ELSS scheme, dividends are tax free and when you sell the units after three years, you pay no tax. And it has the lowest lock-in period when compared to the other options under Section 80C.
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| January 30, 2009 | | Need more from your home loan? Here's help
To avail a top up loan, factors like your repayment capacity based on your income and commitment towards any other loans other than your home loan etc, will be factored in
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| January 29, 2009 | | Best investments options? Here's help!
In an hour-long chat on Wednesday, financial planning expert Vicky Mehta offered some valuable investment tips.
Should you prepay your home loan?
If you can afford to make larger payments towards your home loan, perhaps because of a promotion or because of a bonus, then making prepayments towards your home loan is a very good idea as it will save you a lot of money over the term of the loan.
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| January 19, 2009 | | Investing in stocks? What you must know
In a balance sheet, it is important to look at some important numbers. Then compare these numbers with historical data. Accordingly, a clearer picture will emerge on how the company is progressing. Also, the balance sheet will talk about other important features like the company's assets like building and furniture, receivables and liabilities.
Attractive plans to save tax!
It is that time of the financial year, when tax payers start getting active about investing in Section 80C instruments.
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| January 16, 2009 | | Indians prefer life insurance to FDs
In these times of economic turbulence, more Indians prefer life insurance policies than fixed deposits, as an option to safeguard their capital, says a survey.
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| January 13, 2009 | | 10 rules of successful trading
This is a crucial advantage traders enjoy over investors -- the ability to make money whether the market is moving up or down. This fact should not, however, lead you to believe that trading is easy; it requires both a skill-set and rigorous discipline.
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| December 30, 2008 | | Banks responsible for card, PIN delivery
A bank customer has approached the Ombudsman with a complaint about withdrawal of funds through unauthorised use of his card. The complainant said that he had asked for a debit card and the bank responded by issuing a card with zero liability.
Loan rangers should hold their horses
While the fall in rates is certainly a good signal, is it a great idea to take a loan to purchase a home or car? Most experts felt that this may not be the right time to do so.
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| December 29, 2008 | | 5 great tips for investors
It's interesting how the investment scenario has radically changed over the last year or so.
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| December 23, 2008 | | Equity funds still the best
The category average returns from equity-diversified funds has been 14.5 per cent a year over this period. Banking funds, which invest in banking and other financial sector companies, have given returns of 23.66 per cent. Other categories that have done well are fast moving consumer goods, tax planning and hybrid (equity-oriented) funds.
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| December 22, 2008 | | Sinking markets? Move money from debt to equity
Most investors have this uncanny habit of going the whole hog. That is, when they are buying equities, they put most of their savings in them. But as soon as the tide turns, they rush to debt.
Plan to buy a home? Things look brighter
In the last six months, things have changed for the better for the home buyer. Most of the cities are witnessing a sharp drop in prices, almost back to where they stood in December 2006. While most developers and brokers are unwilling to admit this, sit across the table to negotiate and you just might be surprised.
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| December 19, 2008 | | Have idle cash? Invest in bond funds
If you are sitting on idle cash, it's better to invest the same in income funds and earn over 10 per cent returns, say investment advisers. They believe that falling interest rates will jack up returns from bonds and investors can earn high returns if they deploy the money with a horizon of six months to a year.
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| November 19, 2008 | | The rise and fall of FMPs
For FMPs, it's been quite a journey from seemingly-innocuous, yet popular investment avenues to limelight-hogging villains.
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| November 03, 2008 | | Buying insurance? Some good tips
The sum assured is just the premiums that you have paid plus some basic level of return. People often mix investments with insurance. This causes them to often look at the sum assured without understanding the death benefits of the policies in detail.
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| October 27, 2008 | | Stocks: Opt for a buy and hold strategy
Though valuations look attractive, the holding period will have to be longer. If you operate inside that timeframe of transaction-reversal, you can make trading profits. Otherwise, if you favour the safe philosophy of buying low and selling high, this is a good time to buy in terms of valuations.
Buying property? Why you MUST wait
While there has been some correction in property prices, there is a strong likelihood that there is more to come. Also, home loan rates, which are at 11-13 per cent (floating), will see some reduction. But all that will take some more time. And, in such times, it is best to wait. This holds true even if you are purchasing your first home. Property prices will come down, sooner than later.
FMPs vs FDs -- which is better?
Financial planners say that though FMPs have been offering stable returns in the past, caution should be the key word now. "I have been advising short-term FDs for the time being," admits Suresh Sadagopan, director, Ladder 7 Financial Planners. The reasoning is that though returns from FMPs are more attractive, investors in today's market have to be more cautious. Anyway, their portfolios in the equities are suffering because of a sharp fall in the stock markets.
Fixed deposits: Some valuable tips
First, it is important to gauge the financial strength of the bank. Second, the period of the deposit is vital. Often, a higher rate of return is available for specific time maturities like 10 per cent for 360 days and so on. Third, the amount is important. In most cases, if the deposit is above Rs 15,00,000, the bank offers a higher than normal rate of interest. Fourth, since there can be a big difference in the various rates of interest being offered, read the fine print.
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| October 20, 2008 | | Investment tips for crisis times
Stick to disciplined investing. Do your homework thoroughly before committing your funds or you will be speculating. This is not advisable on both counts of managing risk and enhancing returns. Preferably, add companies that are leaders in their respective businesses. The companies should have reasonably decent prospects, sound management and strong entry barriers, apart from healthy financials that will help them tide the current rough patch.
5 mantras to survive a slowdown
Reduce high-cost loans, create a contingency fund and play long term. These are the only mantras to survive during a slowdown.
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| October 14, 2008 | | Worried about your money?
There is complete panic among investors. There are many who would like to exit to just make sure that they reduce their losses. For lump-sum investors in mutual funds, it would be quite tempting to even book losses. However, for investors who have taken the systematic investment plan route, it makes little sense to do so.
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| October 13, 2008 | | Not planned your tax investments? Here's help
Regular investments in Section 80C instruments earn better returns as well as reduce the pressure on your funds. Instead, most of us end up in a last-minute scramble to invest to save tax in the month of February or even March. "This is why tax-saving products such as equity-linked saving schemes and unit-linked insurance product have the highest sales in the month of March," says Vikas Vasal, executive director, KPMG.
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| October 07, 2008 | | Why liquid funds can be good for you
In the last one year, liquid funds have returned between 7.7 per cent and 8.85 per cent. Liquid-plus funds, on the other hand, have slightly higher returns between 8.4 and 11.29 per cent. Obviously, that makes them a better choice as against money earning a dismal 3-3.5 per cent in your savings account.
Time to re-look at your investments?
Rebalancing your portfolio is an important part of money management. Here's when to do it and how.
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| September 29, 2008 | | Money lessons for women
Yes, while it's true that women are looking at everyday needs of the family, it's imperative as well that they keep a tab on their financial security to ensure a safe future.
Cash-crunch to cash-rich in 6 easy steps
To raise cash, you need not sell assets built over time. Instead, use them to meet immediate liquidity needs.
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| September 22, 2008 | | 2 plans to help you buy low and sell high
"Buy when there is blood on the street," advised the legendary investor, Baron Rothschild. But it takes enormous courage to buy when there is widespread gloom and panic around. However, once you decide your right investment mix between wealth-growing but volatile investment avenues, such as shares, and wealth-protecting ones such as bonds or bank deposits, formula plans can help you automatically achieve the golden key to stock market riches--buy low and sell high.
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| September 16, 2008 | | Do you feel let down by your MF investments?
Even investors in equity mutual funds have borne the brunt of falling markets. As a result, several investors are in panic mode. Some are even contemplating redeeming all their mutual fund investments and instead making investments in risk-free avenues like fixed deposits and bonds.
What sets aggressive equity funds apart?
Aggressively managed equity funds can be differentiated by either the style of investing or the nature of the underlying investments. Investors often make the mistake of investing in mutual funds without fully understanding the implications of the investment. One common area where investors are confused is with regards to aggressively managed equity funds.
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| September 15, 2008 | | Debt funds: Liquid versus liquid plus
While most investors appreciate the importance of investing in debt (like debt funds, for instance), the lack of knowledge about debt instruments and their complicated nature, prevents them from venturing into this segment. Moreover, the jargon associated with debt instruments can be confusing for the average investor. That explains why debt investment remains a mystery for a majority of investors.
Credit card caution: use it wisely
Impulsive plastic money spenders face the prospect of paying interest rates in excess of 40 per cent a year.
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| September 12, 2008 | | Credit card addict? Switch over to cash
For those, who cannot control the urge to splurge, using an alternative-payment mechanism is a better idea.
Ulips will soon be less confusing
Buyers of unit-linked insurance plans may soon find it easier to compare features and charges of these products across companies, with life insurers deciding to standardise the product.
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| September 10, 2008 | | Beware of counterfeit notes
There is no mechanism to ensure that the customer gets his money back and nor are there any guidelines or rules to protect the customer from this problem
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| September 09, 2008 | | Pay up before the auction action begins
Home loan borrowers perpetually worry about the consequences of defaulting. And whether they wish it or not, there could be situations where they are forced to do so. For instance, after the Mumbai bomb blasts on July 11 2006, a large number of affected families found themselves in deep financial trouble leading to difficulties in servicing their home loans
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| August 26, 2008 | | 6 rules for rebalancing your portfolio
Changes in market and economic conditions keep constantly altering your investment portfolio. Accordingly, you need to periodically rebalance your portfolio so that it matches your investment goals and target asset allocations.
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| August 22, 2008 | | How the currency futures will work
Trading in currency futures will soon become a reality for the retail investor. With the Reserve Bank of India and the Securities and Exchange Board of India issuing trading norms, exchanges are readying themselves to launch this product in the next few weeks.
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| August 19, 2008 | | FMPs match fixed deposit returns
With banks increasing their fixed deposit rates in the past couple of weeks, fixed maturity plans by mutual funds are also offering higher 'indicative' returns. FMPs can only indicate and not guarantee returns.
5 questions investors are asking now
With equity markets descending from their record highs, several investors want to know if this is the right time to invest in equities.
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| August 11, 2008 | | Retired? 6 great investment plans
The key lies in understanding one's needs and then forming a portfolio based on the same. Also opting for the services of a qualified and experienced financial advisor would be a prudent decision.
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| July 28, 2008 | | Has HDFC Top 200 delivered?
Investors would do well to consult their investment advisors/financial planners to determine the suitability of HTF in their portfolios.
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| July 24, 2008 | | Which is the best SIP?
The SIP is simply an investment mode i.e. a means to invest in mutual funds and not an investment avenue.
What falling AUMs mean for your mutual fund
Investors who are led to believe that falling net assets is a sure sign that the fund is in trouble and must therefore exit the fund at the earliest, must consider some points first.
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| July 21, 2008 | | When to exit your mutual fund
Generally, getting into a mutual fund is associated with a long-term relationship whereby, there are good times as well as bad times. However, most investors are willing to enjoy the upside, but at the slightest hint of a downside, they start crying foul.
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| July 18, 2008 | | Investing through SIPs? Choose wisely
There is no best time to invest. Even now would not be a bad time to get started. A word of advice: be sure of the risk you can take on venturing into equity mutual funds. Apart from equity funds, maybe you could consider balanced funds as well, says personal finance expert Irfan Rupani.
5 rules on how much insurance you need
If you are an earning member of your family, and there are members of your family who are financially dependant on you, you need life insurance. But how much life insurance do you need?
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| July 15, 2008 | | Has Magnum Contra delivered?
A contra fund operates on the premise that investment opportunities fall in two categories a) those that are identified by most investors and therefore already form part of their portfolios and b) those that are ignored or not yet identified. Since investment opportunities under Category A are identified by most they are overbought and are therefore trading at higher valuations. The investment opportunities in Category B are what really interest the contrarian investor.
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| July 12, 2008 | | Do you have a core portfolio in place?
In the mutual funds segment, well-managed diversified equity funds, balanced funds and monthly income plans with proven track records could form the core portfolio. Of course, the investor's risk profile and investment objectives would play a part in determining the core. Once this core is in place, the investor can consider (if at all) allocating a smaller portion of his investible surplus in ancillary offerings like thematic/sectoral funds and global/international funds.
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| July 10, 2008 | | Are monthly income plans safe?
Typically, MIPs are suited for investors with a low-moderate risk appetite. For instance, investors who wish to clock higher returns than those offered by fixed deposits or bonds and are willing to take on commensurately higher risk should consider adding MIPs to their portfolios. Also MIPs appeal to investors in higher tax brackets for their ability to deliver more competitive post-tax returns vis-à-vis avenues like fixed deposits.
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| June 30, 2008 | | 5 common investment dilemmas
These dilemmas are usually a result of the lack of knowledge among investors about various investment options
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| June 25, 2008 | | All you want to know about gratuity
Job-hopping may be in vogue, but those who do decide to spend dedicated years in an organisation are eligible for a free lump sum that you can put to work
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| June 12, 2008 | | How to keep recovery agents at bay
No one wants a recovery agent breathing down his neck. But if you slipped up on your debt, you may have to deal with him. Here's how to make the best of a bad situation
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| June 11, 2008 | | Don't exit SIPs in a falling market
When the NAV falls, you are going to get more units of the fund. That means when the market turns around, you will get much more returns
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| June 06, 2008 | | Have infrastructure funds delivered?
Over the past few years, when equity markets rose almost secularly, the investment scenario became rather skewed. Any fund that took on above-average risk was capable of delivering a superlative performance. As a result, some prudently managed funds ended up looking rather mediocre and some mediocre funds managed to pitch in noteworthy performances.
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| May 30, 2008 | | 5 investment myths debunked
Few would dispute the fact that investors today are better informed as opposed to their counterparts from previous generations. The barrage of investment advice and information from various quarters is largely responsible for this phenomenon. However, the prevalence of investment myths is something that hasn't changed over the years. And acting on a myth while getting invested, always has the same result -- an incorrect investment decision.
US-64 windfall: Be age wise before investing
These tax-free bonds were issued in 2003 to bail out Unit Trust of India's flagship scheme US-64, which got into trouble because of lack of transparency in its portfolio composition and investment strategy. Now these investors will finally get their due. And if you are among those, who have still not decided on what should be done with this windfall, financial advisors say the money should be channelled in instruments depending upon your age and risk profile.
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| May 29, 2008 | | About tax-saving funds and SIPs
If your risk appetite permits investing in a tax-saving fund, now is the time to scout for one and start off an SIP.
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| May 28, 2008 | | A 4-step plan to manage your insurance portfolio
Insurance has many options often confusing the individual
Ulips set to get costlier
Life insurers have decided to pass on service tax to customers. The chief financial officers of life insurance companies met last Wednesday and have decided to pass on the service tax burden to customers, confirmed officials of various life insurance companies.
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| May 26, 2008 | | How to rent a hassle-free house
With surging real estate prices ensuring a slowdown in property purchases, renting has become a viable option. Here's how to land the best deal
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| May 19, 2008 | | Have you declared your annual investments?
During the first two months of the financial year, it's usual that your company will send a piece of document with a lot of columns that need to be filled up. Typically, this means that you have to declare the investments, which you will be making, during the current financial year.
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| May 16, 2008 | | Investors, beware of such practices!
Many a time, investors get carried away by the high returns offered by a particular offering. Out of sheer ignorance most investors do not bother to question the authenticity or the transparency of the examples/illustrations that have been used to project the high returns.
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| May 14, 2008 | | How to select a financial planner
The financial planner is someone who can help you invest across investment avenues based on your risk profile and investment objectives
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| May 13, 2008 | | FMPs turn unattractive for investors
If you are planning to invest in Fixed Maturity Plans, think twice. Because most mutual fund managers believe that FMPs are unlikely to give higher returns as they did last year. And, this is beginning to show in their collections as well. In March 2007, FMPs had collected Rs 30,869 crore (Rs 308.69 billion). In March 2008, they attracted only Rs 21,688 crore (Rs 216.88 billion). Even in April this year, 62 schemes collected only Rs 1,126 crore
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| May 09, 2008 | | All you want to know about thematic funds
The constraints of managing funds that invest in a select few sectors can often prove to be demanding for fund houses. As a result, it isn't entirely uncommon to find a sector/thematic fund changing/expanding its investment objective/style in due course. This bears testimony to the intrinsic inadequacy of a sector/thematic fund in terms of sustainability over the long-term. Nonetheless sector/thematic funds continue to be launched at regular intervals.
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| May 05, 2008 | | Mutual fund roundup: April 2008
In recent times, 'inflation' has emerged as a buzz word of sorts. Simply put, inflation is a situation wherein too much money chases a limited number of goods. This leads to a fall in the value of money. Inflation is often expressed as a rise in the price level. For example, a product that costs Rs 100 now, would cost Rs 105 a year hence, assuming that prices rise at 5 per cent annually.
Daily investment through mutual funds
A systematic investment plan that invests every day in the stock market can capture the movements for the investor. An analysis of its performance.
Negotiating salary? 4 important tips
There are many of us who get lured with the numbers that show in our CTC package, but when the actual take-home salary comes in our hand, it causes a lot of heartache
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| May 02, 2008 | | Mutual fund 'schemes' of a different kind
Of course, not all AMCs use such marketing schemes; certain AMCs have told us that they would have preferred to keep an arm's length from these tactics, but their hand was forced by other AMCs. The bottom line is that investors/agents are regularly bombarded with rewards/incentives by AMCs and core factors like the fund's investment proposition and track record are conveniently pushed to the background.
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| April 29, 2008 | | FMPs vs FDs: Which side are you on?
Fixed Maturity Plans can be termed as the mutual fund industry's answer to Fixed Deposits (FDs). Over the years, FMPs have established themselves as an option for debt fund investors (i.e. risk-averse investors). In many cases, they occupy the slot that used to belong to FDs. This is not surprising given that both the avenues cater to the same investor category.
Use tax sops and buy a house
Make the Income Tax Act work for you by using its tax saving provisions to fund the purchase of not only your first house, but also of the second one.
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| April 28, 2008 | | Good portfolio=15% return per year
Invest in a basket of well managed equity funds. If your asset allocation demands that you need to be invested, go ahead and invest some money; do an sip. Be sure to select the funds best suited to you, says mutual fund expert Rahul Goel.
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| April 25, 2008 | | US64 Bonds up for redemption: What's next?
Over the tenure of US64 Bonds, the investment scenario has changed radically. Mutual funds (equity funds in particular) have come of age and found greater acceptance among investors. So it should come as no surprise, if you find yourself being persuaded from all quarters to invest the redemption proceeds of US64 Bonds in equity funds. For example, investors in US64 Bonds have received letters urging them to invest the redemption proceeds in equity funds from UTI Mutual Fund.
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| April 19, 2008 | | Principal large cap: Doesn't make the grade
It's not like we are against NFOs for the sake of it. Our view on this subject is if the NFO offers something truly unique (i.e. distinct from existing funds) and can aid the investor significantly in achieving his long-term goals, he can consider investing in the NFO. Failing this, investors are better off investing in existing mutual funds with proven track records across time frames and market phases.
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| April 18, 2008 | | 4 tips to make the most of your money
Following some rather elementary tips can go a long way in not only saving money, but also deriving maximum benefit from it. Perhaps it's the demanding nature of our everyday chores that make us overlook these tips. In this article, we discuss 4 tips that will help you make the most of your money.
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| April 15, 2008 | | 4 tips to make the most of your money
Following some rather elementary tips can go a long way in not only saving money, but also deriving maximum benefit from it. Perhaps it's the demanding nature of our everyday chores that make us overlook these tips. In this article, we discuss 4 tips that will help you make the most of your money.
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| April 14, 2008 | | 4 ways to ace falling markets
But when markets collapse like they did earlier this year, many of these 'great' investments suddenly start appearing like great mistakes. Nonetheless, there are lessons to be learnt from falling markets and we have a 4-step strategy on how you can ace falling markets.
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| April 10, 2008 | | Stocks vs mutual funds: What's better?
Within the domain of investments, two options that investors regularly grapple with are stocks (i.e. direct equity investing) and mutual funds. Both have their advantages, although this note does not get in to that debate. Instead, in light of the present discussion about investing being a full-time activity, let's see how stocks and mutual funds face off against one another.
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| April 09, 2008 | | MFs: The winners and losers of March
Mid cap stocks (and subsequently mid cap funds) have been the worst hit in the recent stock market crash. Investors who added mid cap investments to their portfolios without understanding their true nature are a dismayed lot. Typically, mid caps are presented as an opportunity to make quick money; sadly, investors are rarely made aware of the higher risk involved. While there is no doubt that if identified correctly, mid caps can contribute significantly.
FMPs: The devil is in the assumptions
There is never a dearth of ideas among the AMC (asset management company) think tanks, when it comes to drawing investors towards their offerings. The AMCs usually adopt innovative ways to promote their products. Often these ideas have the desired impact and get investors all interested.
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| April 07, 2008 | | Core sector stocks: High risk, high profit
The best performing industries of the past two years have included power, engineering, construction, capital goods, telecom, etc. Broadly, these are infrastructure-related industries that have seen strong, even geometric growth. These are also, by and large, not industries that receive very high discounts globally. In India however, they have been treated as growth sectors that deservedly, receive growth industry discounts.
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| April 04, 2008 | | JM Mutual Fund: Mid caps rock the boat
When it suits them, fund houses promote a star fund manager to draw investors. The star fund manager's track record in identifying stocks/trends is publicised extensively. NFOs (new fund offers) are launched on the premise that the star fund manager will repeat his stellar performance and give investors a good enough reason to invest in the NFO.
New to mutual funds? Go for SIPs
SIPs should be entered for 12 months at a time, and then renewed. You should use the renewal as an opportunity to review the portfolio. SIPs are a great way to invest in our view. if the environment is volatile, then SIPs are probably the best way for most investors, says mutual fund expert Rahul Goel.
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