When the markets nosedived to 12,961.68 points on July 1, the country's richest man (read Mukesh Ambani) and his family lost more than Rs 5,000 crore (Rs 50 billion), all in a single day.
For the already invested, the road ahead looks rather bumpy. However, when markets offer little to cheer about, for ones who have stayed away for so long, it does offer a whole lot opportunities.
With rising interest rates and inflation taking a toll on home loan customers, banks are beginning to encourage them to partly prepay their loans. Many of them are doing so without charging them prepayment penalty.
With high property costs and home loan rates deterring buyers, builders are looking to get into affordable housing in the next few months.
Both private and public sector companies are introducing products for diabetes and hypertension- related diseases for the elderly.
Gold as an asset class has shown its mettle in the last one year. Especially in the past six months when the equity markets have been on a downslide, this yellow metal has continued to move northwards. And the numbers are there for all to see.
IDFC is merging its Portfolio Management Services business with the newly-acquired Standard Chartered Mutual Fund to sell MF products targeting high net worth individuals. The company is also planning products that offer infrastructure as an asset to investors.
When Deutsche Asset Management Company (AMC) listed its debt scheme - DWS Fixed Term Fund-Series 43 (growth option) - on the Bombay Stock Exchange (BSE) on April 4 this year, little did they know that within 24 days the scheme's net asset value (NAV) would double to Rs 20.
Ever since the Insurance Regulatory and Development Authority (Irda) allowed motor insurance companies to decide premiums in December 2007, car insurance premiums have fallen sharply. The focus, it seems, is clearly on garnering more retail customers.For instance, in March 2007, the premium for a Honda City was Rs 20,760 in Mumbai. But this year it has fallen to Rs 15,770 - a difference of Rs 4,990.
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.
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
Buying a term plan from insurance firms and finds it a tad difficult.
In fact, the current market scenario provides more value investment opportunities. So, it is positive for mutual funds.
However, financial experts are of the view that though REMFs are good for those who want to participate in the property boom, investors should not look at them as equity funds.
It is a true that some developers are unable to sell houses and are offering discounts to lure purchasers. But, recent buyers have also discovered that many of these discounts are only marketing gimmicks.
They are aggressive going through the financial details of the customers. All indications that life is going to get tougher for potential home loan borrowers.
With barely a few days left before the current financial year (2007-08) comes to an end, it's time to pay taxes and file returns.
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