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.
With the Indian Institutes of Management (IIMs) hiking their fees, many general category students will have to approach banks for educational loans. Most will also have to furnish collateral to get that all-important loan.IIM-Ahmedabad, for instance, has almost trebled its fees to Rs 4 lakh to Rs 11.5 lakh. IIM-Kolkata has hiked it from Rs 5 lakh to Rs 7.5 lakh. Others like IIM Bangalore and IIM Lucknow have hiked it from Rs 5 lakh to Rs 8 lakh and Rs 4 lakh to Rs 5 lakh.
Young borrowers have the opportunity to get bigger loans because age is on their side.
In the last few years, unit-linked insurance plans (Ulips) have quietly become one of the largest players in the Indian stock market. With a total investment estimated at Rs 1.5 lakh crore to Rs 2 lakh crore, they are almost close to the investment made by equity mutual 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.
The Union Budget 2008-09 will leave more money in every pocket.
In spite of FM's assurance, experts feel that US recession will have definite repercussions on the Indian economy. But it will continue to enjoy a positive run.
Says Gul Teckchandani, investment advisor, "It is that time when you should have a shopping list ready. Look for large-cap liquid stocks that have fallen more than the index and invest 10 to 15 per cent of your cash in them. Also, continue buying if the market falls further."
Last year money-making hardly took any effort, this year you will need to pick and choose.
For prospective buyers, the advice is simple. Go ahead and buy because there is no indication of where the interest rate will be in the next six months.
You could invest if you have missed the earlier rally, you could churn your portfolio to move towards better quality stocks or funds and you could even clear your loans by some profit booking
With the markets at an unprecedented height, it may be a good time to restructure your bag of stocks.
While fund of funds promise best results, higher cost and tax treatment could bring down the returns.
State Bank of India (Maharashtra and Goa), Bank of Baroda, IDBI and Allahabad Bank have cut rates in the range of 25-50 basis points. Lenders would like to see the RBI come up with some measures so that sentiments improve further.
The choice for the home buyer is clear - either get adequate life cover or a mortgage insurance product.
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