Suggest a topic

A lot of you reply to the daily emails with suggestions for posts, and I really appreciate that because it gives me post ideas, and I can write about stuff that is most relevant to you.

Normally, I take the gist of your suggestion; create a title of the post, and note it down on a virtual sticky note. But, the issue with this is that it is easy enough to miss an email, and sometimes the titles on the sticky notes don’t make any sense to me when I look at them later on.

So, I am creating a page here that is specifically for your suggestions for posts. You can leave a comment here suggesting an idea for a post, and if I know enough about the topic I will write about it.

That way we won’t lose track of anything you say, and if multiple people suggest the same topic for a post then I know that it should be written prior to moving on to other things.

Thanks for reading – and writing!

{ 1699 comments… read them below or add one }

M.P.Gupta November 24, 2010 at 6:17 AM

What is the significance of “Pre-open session” of the stock exchanges we see from 9 am to 9.15 am daily?

Reply

Manshu November 24, 2010 at 9:56 AM

Thanks for your suggestion. I’ll try and write something up on this topic in the coming week. This measure was introduced to reduce volatility especially in the face of a special event after the close of market hours the previous day. I think a good recent example would be the N. Korean strikes on S. Korea which happened after the market closed. I’m not sure if Korea follows this mechanism or not, but that’s one thing that can cause the market to open with a big gap, and this system would help reducing the volatility in those kind of events.

That’s a good suggestion!

Reply

Manshu November 29, 2010 at 3:52 AM

I have published the post today and you can read it here:

http://www.onemint.com/2010/11/29/what-is-the-significance-of-pre-open-session-of-the-stock-exchanges-we-see-from-9-am-to-9-15-am-daily/

Thanks for the suggestion, and please leave a comment if you have any questions or any other observations.

Reply

L November 24, 2010 at 6:42 AM

One topic that I can suggest is — Investing in Debt Funds.

Reply

Manshu November 24, 2010 at 9:50 AM

Thanks for the suggestion. I’ll try and write about it in the coming week. And here is a post I did on a type of debt scheme – Monthly Income Plans some time ago that you might find useful.

http://www.onemint.com/2010/11/14/list-of-monthly-income-plans-in-india/

Reply

L November 25, 2010 at 6:14 AM

Actually, I was interested in knowing —
1. how Debt Funds compare with Bank FD’s,
2. what are different types of Debt Funds and
3. some good Debt Fund products available in the market.

Reply

Manshu November 25, 2010 at 6:33 AM

Okay, thanks for narrowing it down. Each point in your comment can be a post on its own, and I’ll write something on different types of debt funds next week.

Thanks.

Reply

Radhika November 24, 2010 at 11:01 PM

On credit cards. Good card to choose from and effective usage of it.

Reply

Manshu November 25, 2010 at 5:09 AM

Hi Radhika,

I tried looking up this info some time ago, but really didn’t make very much headway into it. I’ll try looking it up again, but I think the best I’ll be able is to point out other websites that have done such comparisons, as last time I felt like I didn’t have much to add beyond what they had already written.

It will take a bit of time though….maybe a couple of weeks.

Reply

Manshu December 5, 2010 at 4:36 PM

Hi Radhika,

I’ve finally written a post about that topic, and you can find it here.
http://www.onemint.com/2010/12/05/how-to-select-a-credit-card-in-india/

Reply

Meetali December 1, 2010 at 1:28 AM

Hi Manshu
Can you post something on Embedded value of a company, both through traditional and market consistent approach. I have seen these values being published by some rating agencies and also know that there are two approaches for calculation. I really would want to know how it is calculated and what is its significance in interpreting the fundamentals of a company.

Thanks

Reply

Manshu December 1, 2010 at 8:14 AM

I thought that was only used to evaluate insurance companies but I’ve not read a lot about this, so I may be wrong. Where did you come across a report that mentioned this? I’d be curious to take a look so I know we are talking about the same thing.

Reply

Radhika December 1, 2010 at 3:25 AM

Hi Manshu,

Could you please write about different online trading portals? Which is best in terms of service, tariff etc? Please include SBI in the list.

Reply

Manshu December 1, 2010 at 8:07 AM

Yes, let me try my hands on that. The issue is probably that there is no good way to assess the service as different people have different experiences, but I’ll see what I can do. I still owe you the credit card article, so this after that one.

Reply

khalid December 2, 2010 at 6:52 AM

Hi Manshu,

Could you please write about Income Tax calculations and where to invest for saving Income Tax. Is ELSS Funds are allowed for this year or what ? Please include some examples.

Thanks
khalid

Reply

Manshu December 2, 2010 at 8:06 AM

Sure Khalid, I think ELSS are allowed for this year, and will only be disallowed from next year onwards. I think I’ll be able to get to it sometime the week after next.

Thanks!

Reply

Manshu January 6, 2011 at 11:17 AM

I published the post a few days ago, but forgot to leave a comment here. The post can be found here:
http://www.onemint.com/2011/01/02/tax-saving-elss-mutual-funds/

Reply

vasim December 7, 2010 at 10:59 PM

wanted to suggest-which are best dividend paying stocks in india & how are there growth prospects? whether to buy that stocks for long term or not?

Reply

Manshu December 8, 2010 at 8:32 AM

Thanks for your suggestion Vasim. I’ve seen a good post on this topic on the Tip Blog, and you can check it out here on this link:

http://www.tipblog.in/stock-chat/dividend-paying-companies-india/

As for recommendations on whether or not you should buy a particular stock – I don’t get into that at all because I don’t have the bandwidth or the competence to evaluate all these companies and see which one stands out amongst them.

You can check out the post, and that should help you make an informed decision.

Reply

Murali Manohar December 10, 2010 at 5:48 AM

I want to understand how banks fix their lending rate of interests for various loans such as home loan, car loan, personal loan, etc. I sometimes here news about RBI fixing on lending rate of interests. In that case, how come it is different among banks? What is BPLR? and how does it relate to the banks lending rate? Please explain or provide some pointers to understand this.

Reply

Vamsi December 30, 2010 at 7:02 AM

How about an article on E-Gold and E-Silver from National Spot Exchange.

Reply

Manshu January 1, 2011 at 2:45 AM

Sure, that’s a good topic. I’ll write about it after I get to these other suggestions still pending. Thank you Vamsi.

Reply

Manshu January 13, 2011 at 6:46 AM

Vamsi – The article has been published on today; here is the link:

http://www.onemint.com/2011/01/13/e-gold-and-e-silver-from-nsel/

Reply

Chirag January 1, 2011 at 5:09 AM

Manshu how about an article on Future of Mobile Trading ?

Reply

Manshu January 1, 2011 at 5:28 AM

It’s a great topic Chirag, but I’m not knowledgeable enough about it to write something that will add to anything already available online. Sorry.

Reply

Shreyansh Jain January 1, 2011 at 2:22 PM

Manshu Sir
You are doing a great job! I am a new reader of your blog and I just love it! Very simple language, almost all financial areas covered, personalised attention to every reader, simple web layout and above all….. YOUR HONESTY!
Great going sir!
It would be great if you can provide some info about PAYPAL VERIFICATION in india.
Thanks for maintaining a superb blog!
Regards
Shreyansh Jain

Reply

Manshu January 1, 2011 at 11:48 PM

Shreyansh – Thank you so much for your kind words, and a very happy new year to you!

I did the verification a number of years ago, and have been a little out of touch, what with all the changes RBI has mandated, so I’m unable to write about this topic, sorry.

I did find this article that looks good, so I hope this is a good start for you.
http://indiapoint.net/ca/2010/04/23/using-paypal-in-india-and-verification-process/
Once again, thanks for all your lovely words.

Reply

VeeTee January 4, 2011 at 10:20 AM

Kindy write a articel on the difference between IRR, Rate of interest and Effective Rate of Interest. If you apply for a loan in a bank ( particularly private sector banks ), they say interest rate in the name of IRR. But as far as I know, IRR is the rate of interest where your discounted cash inflows matches with cash outflows . If private sector banks say IRR, does it mean that they are selling without profit ?
Please clarify

Reply

Manshu January 4, 2011 at 11:13 PM

There already is a very detailed article on IRR that is published here, and I think that will address your questions.

http://www.onemint.com/2010/11/23/what-is-irr-and-how-is-it-calculated/

Reply

VeeTee January 4, 2011 at 10:56 AM

Hi

Kindly let me know the important websites and blogsites addresses, who give information and articles about finance, tax, economy etc , without any motive behind it like what you are doing right now ,so that readers like me who want to learn finance through simple topics would be benefited.

Thanks in advance.

Reply

Manshu January 4, 2011 at 11:19 PM

I like to read Hindu Business Line, Business Standard for my news, and Business India is a very good magazine. Then there are a whole host of blogs that I read, but what I normally see is that when I do my weekly links post, there aren’t too many outgoing links from them, so I get the feeling that perhaps what I read myself is not so interesting to people who read this blog.

Reply

MILIND KHOBRAGADE January 5, 2011 at 8:59 AM

i want to know about the indian government policies about the unemployment. what are they doing about it and how much they have done.

Reply

Manshu January 5, 2011 at 9:54 PM

Milind – I don’t think I’ll be able to write on government policies on unemployment, and how effective they are because I’m not familiar enough with the topic. Sorry.

Reply

Varsha Bhatia January 12, 2011 at 11:26 PM

Hi Manshu

I like your articles and feel they are very informative.
Can you inform us on the following articles also:
1. Best Indian Home loans rates -& impact on Income Tax
2.Section 80DD -treatment expenses for family member for tax deductions
3. Impact of Foreclosure of loans (any types) on loanee.
4. How to file income tax online.

regards

Varsha

Reply

Manshu January 13, 2011 at 7:08 AM

Thank you Varsha – a lot of suggestions in here, and I will try to cover as many as I can in the coming days. I think 1 will be a little difficult though because I’ve tried doing that once, and found that the data is not easily available.

Reply

Manshu February 14, 2011 at 2:21 PM

Hi Varsha,

The article on 80DD is live here now:

http://www.onemint.com/2011/02/14/details-on-section-80d-80dd-and-80ddb/

Reply

Mukund January 15, 2011 at 1:36 PM

I hear that investing in silver is a great idea for 2011. From what i understand, MMTC is the cheapest seller of silver. But their selling price is 54000 per kg Vs 45000 which is the trading value of silver. Now if i buy it at 54000 then i am not going to make any money till the market value crosses 54000. I was told by MMTC that the 9 grand premium has to be paid as MMTC cost/mark-up etc. I can someone tell me if there is a cheaper way to buy silver? Also if i buy silver online what are the capital gains implication when i sell it? thanks.

Reply

Manshu January 16, 2011 at 5:58 AM

Mukund – Here is a post I did on silver ETF alternatives that has already discussed options that you’re looking for.

http://www.onemint.com/2010/11/16/silver-etf-alternatives-in-india/

And here is a more detailed post about NSEL. I can’t really give you a one word answer saying a or b is best because everything has its pros and cons, so you’ll have to read these options and evaluate them based on your needs.

http://www.onemint.com/2011/01/13/e-gold-and-e-silver-from-nsel/

Reply

Shankar January 17, 2011 at 10:12 AM

Hi Manshu,
Thanks a lot for your excellent articles.Can you please write an article about how economy works.What decides/limits about the amount of currency a country can print.why not a country become rich by simply printing money?.Also can you please suggest articles/books to understand how economy works.

Reply

Manshu January 18, 2011 at 2:33 AM

Thanks Shankar. I can’t think of any books or articles on the top of my head, but I will try to hunt some for you, and write a post on this topic as well.

Reply

Shankar January 18, 2011 at 7:52 AM

Thanks Manshu

Reply

Manshu February 3, 2011 at 6:25 AM

Hi Shankar,

The post about why a country can’t print money to become rich is live here now.

http://www.onemint.com/2011/01/30/why-cant-a-country-print-money-and-get-rich/

Reply

Salar January 18, 2011 at 9:56 PM

Hi,

Thanks for the informative articles. I would suggest we have an article on ULIPs. After the takeover by IRDA, ULIPs have undergone changes and seem to be a viable option for investors. I had written a blog entry on the same, a couple of days ago. Let me know if its good enough to be shared in this forum. Please leave your valuable comments too 🙂

http://swordtail.wordpress.com/2011/01/17/ulips-to-invest-or-not-to/

Salar

Reply

Manshu January 19, 2011 at 7:00 AM

I’m yet to come across something that convinces of the utility of ULIPs, and makes me look at them. Until that time I think my time is better utilized looking at other topics. Thanks for your suggestion, and you’ve written a good post yourself.

Only observation I have is that often it’s handy to take a product within a category – analyze it in detail – and then use that knowledge as examples to make your point.

Reply

kunal January 18, 2011 at 11:32 PM

Hi Manshu,
I was looking for some good term insurance and couldn’t locate it here, would it be good if you can give some valuable inputs on it?.

Thanks.

Reply

Manshu January 19, 2011 at 6:56 AM

Hi Kunal,

I haven’t written much about insurance but I plan to do so this year. I do however know of a very good resource for insurance jagoinvestor.com written by Manish Chauhan.

Here is a great post he’s done on term insurance comparison that will answer a lot of your questions.

http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

Reply

Swanand January 20, 2011 at 1:18 AM

Hello, I have been reading in a lot of places regarding to keep the Auto Loan as less as possible. However, i do not understand the math behind it. Have a look at the below thought and let me know.

2 months back I bought a car worth 5.5 lacs. Luckily i had all the money in the bank and could afford to buy it outright. However, I went ahead and got a loan of 2.75 lacs and paid the rest from my pocket. Here is the logic

Loan Details:
Loan Amount: 2.75 lacs
Interest rate: 9.25%
Loan Tenure: 3 years
EMI: 8800
Total Interest paid: 40,970

If I put the same amount of money in a standard fixed deposit recurring for 3 years at 8.5% per year, here is what I get
FD Amount: 2.75 lacs
Interest Rate: 8.5%
Tenure: 3 years
Interest Received: 76,254
Amount on Maturity: 351,000

So in effect by taking the loan I have saved myself 36,000. Even if you take it post tax you are in profit. In other words, the higher the loan amount or longer the tenure you would be in more profit. I wonder what am I missing ??

Reply

Manshu January 20, 2011 at 8:43 AM

Hi Swanand,

Interesting question, so is it normal for people to get car loans at 9.25% these days, or did you get a deal because of your employer or something?

A 1 year fixed deposit with Indus Ind fetches you an interest of 9.5% these days, and you got a car loan for less than that, which is the reason I ask the question.

Anyway – if I were in this position I’d look at it the following way.

Case A – Put the money in a FD, and take a loan. In this case you get interest Rs. 76,254 and pay interest Rs. 40,970, so the net interest you gain is Rs. 35,284.
Now, I have a liability to pay Rs. 8,800 for the next 36 months.

Case B – Pay off the car payment with my money right now, and free up Rs. 8,800 for the next 36 months. Create a recurring deposit with it at say 8.5% which is the FD you took.
The calculator here shows me that this will come to Rs. 361,117 at the end of 36 months.

8800 x 36 = 316,800 is my own money out of this, so the interest I get from here is Rs. 44,317.

So, in this case since there is no interest outflow I gained Rs. 44,317.

This is one angle of looking at it. Of course, what I do depends a lot on factors beyond math like I shun personally shun debt as much as possible, and others might not mind it so much, but this is one way to think about it.

Reply

Swanand January 20, 2011 at 9:03 AM

Hello Manshu,

Thanks a lot for your reply. Well the 9.25% was not too much of a fight, I got that rate as against a rack rate of 9.5% as I am a preferred customer from the bank I took it from.

Basically I wrote to you to understand, why I couldnt find an analysis like the one I did on any of the Personal Finance sites. So for all this while i was wondering if I am missing something.

Well I guess there isnt much to choose between case A and case B, because even in Case A, FD was just an example. I can very well earn upwards of 10% over 3 years from various instruments eventhough my outglow is fixed at 9.25%. In that case the difference in interests will be much more than even 50K over a 3 year period time frame.

Anyways, thanks for your analysis. I guess someone out there needs to put up some material of looking at a similar situation in the context of Case A.

Reply

Anand C January 25, 2011 at 2:19 AM

Hi Manshu,
I following your blogs for quite some time and you are doing an excellent job…
I am from IT BFS sector. Do you suggest any good certification programs like CFA, FRM 🙂
Thanks.
Anand

Reply

Manshu January 26, 2011 at 7:05 PM

Thanks Anand. I don’t know much about certifications for someone from IT BFS. CFA is a really involved program and be sure to go through all the details before enrolling in it because it’s designed towards finance professionals and takes a lot of time and resources.

The industry does seem to be moving towards Agile so you could look at some Scrum certifications as well.

Reply

iamgrea8 January 28, 2011 at 8:03 PM

I recently got an email about no penalty Fixed Deposit. I don’t remember if I got that email from Axis bank or from one mint but most likely it was from Axis bank. Unfortunately I deleted that email and now I am in need to open FD with no penalty feature. I cannot find details on their website. Do you know FD scheme of such nature from Axis.

Reply

Manshu January 29, 2011 at 8:34 AM

It wasn’t OneMint for sure, however it’s right that they don’t charge a penalty on premature withdrawal of their FD.

Reply

Ashish January 30, 2011 at 8:42 PM

Not really a topic but a question. Does return show on MF sites (such as Value Research) already include fund’s expense ratio or that has to be factored separately? Is annual expense of AUM is only expense investor bears or is there anything else that’s not mentioned (corrollary: are brokerage commissions, fund manager’s fee, marketing/operating expenses, trailing commissions all accounted for in expense ratio?)

Reply

Manshu February 13, 2011 at 10:03 AM

Yes that has the fund’s expenses factored in. The NAV is the value at which you should be able to buy or sell a fund.

NAVs are calculated after expenses have been taken into account, and the expense ratio takes care of all the expenses that the fund charges you.

Reply

Ashish April 4, 2011 at 9:32 PM

Thanks, but if NAV and return already includes fund’ expense ration, why should expense ratio be part of decision making process at all? Even then, many websites recommend that, every thing else being equal, one should go for fund with lower expense ratio. This is often big part of advise on Gold ETFs or Index funds.

For example, suppose I get 15% return on two funds A & B with expense ratio of 1% and 2%. Then actually, fund A got 16% return before expense and fund B got 17%. Is this understanding right?

Reply

Manshu April 5, 2011 at 5:08 PM

Because expenses eat into returns, so if you have two gold ETFs that are only going to hold physical gold, and one has an expense of 2% whereas the other has expenses of 1% the 1% one will perform better. There could be discrepancy in this in the short run since the ETFs invest some part in money market funds etc. but over the longer run you will find this to be true.

Just looking at NAV doesn’t do much for making a decision on which mutual fund to buy.

Reply

Amit Khandelia January 31, 2011 at 7:38 AM

Online Insurance premium comparison chart for term plans.

I think this would be really helpful and cost effective for people who are looking for insurance.

Reply

Manshu February 1, 2011 at 8:49 AM

Insurance is not my strong point so I avoid writing about it, but a lot of comments have come about insurance so I plan to at least begin covering this in a little more detail. I’ll try my hands on this post though I am not sure if I’ll actually be able to write it.

Reply

Manshu March 10, 2011 at 12:01 PM

I guess I ended up writing about it much later than you requested, and only after a reader left the quotes. If you have not already purchased the insurance then this might be useful information for you.

http://www.onemint.com/2011/03/08/sample-term-insurance-quotes-from-various-insurance-companies/

Reply

Shilpa Gupta January 31, 2011 at 3:39 PM

1) What is the difference between equity and debts products? Please explain with examples? Are PPF, FD debt products?

2) Which kind of mutual funds are better? Growth or Dividend?

Reply

Manshu February 1, 2011 at 8:46 AM

Thanks for the suggestion Shipa, and I’ll write a post on this. Also, thank you for following up on my email and leaving a comment here. Too often, people email me and when I request them to post a suggestion here, they don’t do anything. Makes me wonder if my time is less valuable than others.

Reply

Manshu February 13, 2011 at 7:57 PM

Hi Shilpa,

Here is the post about difference between debt and equity products:

http://www.onemint.com/2011/02/13/what-is-the-difference-between-debt-and-equity-products/

Reply

nimeesh February 1, 2011 at 12:32 AM

Hi,

Can we get some more details on NPS (New Pension System)?

Is it worth to invest in it for private company employees?

Thanks
Nimeesh

Reply

Manshu February 1, 2011 at 8:44 AM

There is one post on that topic already, and let me update that with some new details that have come up. Will take a little time though, as everything that I does unfortunately 🙂

Reply

Ashish February 1, 2011 at 10:29 PM

Information on Indians investing outside India: ways to do so, markets that can be invested in, instruments, special documents/permission required. Specifically, on trading in foreign index funds – Russia, China, etc. I am aware that there are F&O instruments but I am not aware if there is any ETF, index fund or mututal fund.

Reply

Manshu April 6, 2011 at 3:48 PM

Hi Ashish,

Though this is very late, the post is done and can be found here:

http://www.onemint.com/2011/04/03/international-mutual-funds-in-india/

Reply

Ashish February 1, 2011 at 10:31 PM

How can retail investor invest in commodities (other than Gold)? Are there funds which cater to investment in, say, silver, copper, oil, cotton, etc.? Commodity Exchnges provide only F&O instruments which are for short-term basis only. Is there a way to invest for long term?

Reply

Gautam Shanbhag February 5, 2011 at 9:13 PM

Hi,

India is now the second fastest growing economy in the world,most news papers mention this often.Could you write as to what actually is contributing to our economy? is it I.T, agriculture?What actually is accelerating our growth?
Regards,
G

Reply

Manshu February 6, 2011 at 7:20 PM

That’s a great topic and I’d love to write about it. Let me get to that once I am done with some of the other topics here. Thanks!

Reply

Ams February 7, 2011 at 10:39 PM

Manshu,
Did the ONGC Stock split take place this month?
Can you update a bit on this process of stock split and bonus and how and when does it reflect in the demat account.

Reply

Manshu February 11, 2011 at 4:52 AM

NSE data shows that it was 9th Feb 2011, and it was a bonus and a split.

The process is the same as the record date, so you can read this post to get an idea of who gets it and by when one should expect it:

http://www.onemint.com/2011/01/04/dividend-declaration-ex-dividend-and-record-dates/

Reply

Natti February 14, 2011 at 10:51 PM
Rajasekaran T February 17, 2011 at 12:29 AM

Dear Manshu,
You have explained the difference in the values of Gold ETFs in simple terms. Thanks! I used to always wonder about this.

Similarly can you please explain why e-gold is more expensive than ETF and spot gold prices?

Reply

Sri February 17, 2011 at 2:21 AM

Manshu,
Can you post something on the new Reliance FPO which is open now – Reliance Gold Savings Mutual Fund?

Reply

Manshu February 18, 2011 at 9:41 AM

That’s done – please respond to let me know if you have seen it or not, and if it answers your question. I haven’t seen a comment from you on the original post.

Reply

mahendra February 18, 2011 at 1:49 AM

how is the fund managment fees/charges are being collected from the investor by the mutual fund houses??

Reply

Manshu February 18, 2011 at 9:16 AM

They get deducted from the NAV, so it’s indirect.

Reply

surya February 19, 2011 at 6:13 PM

Sir,
Could you please inform which is the best health insurance policy(in respect of Hospital admitting/major surgical benefit etc) for an adult of 37 years and having two dependents (wife and child of three years).

Reply

Manshu February 20, 2011 at 5:12 PM

I’m sorry Surya, but I’m not all that knowledgeable about insurance so I don’t write about it or comment on it.

Reply

vikas February 21, 2011 at 8:20 PM

kerala transport development finance corporation gives a good rate on FD’s please find the link;

< --link deleted as it opened a phishing warning on browser-->

does it make sense to invest in something like this?

Reply

Manshu February 22, 2011 at 7:07 PM

Sorry Vikas – I don’t know enough about their finances or how the FD from that type of a body works to give you any input on that.

Reply

vikas kapoor February 23, 2011 at 6:59 AM

thanks for the response!

can you suggest anything on this then?

http://www.gruh.com/cumulative_growth_plan.html

also , Shriram transport finance FD and mahindra finance?

Reply

Manshu February 23, 2011 at 2:10 PM

Corporation Bank is giving out 9.25% for less than 5 years, so I’d much rather go for that as this is giving the same interest rate, and is more secure being a bank deposit.
Also, can you please post further questions on the Forum as other people are also following that and you’re likely to get responses from more folks there.

Reply

Manshu February 23, 2011 at 2:24 PM

I just saw another comment which mentions Canara bank giving out 9.5% for 8 years, so that might be another option to look at.

Reply

vikas February 23, 2011 at 8:57 PM

sure i will thanks a ton! last question how is karur vyasa bank it is offering tremendous returns and so is repco bank?

Reply

iamgrea8 February 24, 2011 at 7:45 AM

I’m also thinking of investing in Karur Vaisya Bank and would like to know if its safe for large FD ? What’s the reason they offer higher interest rate on FD as compared to others ?

Reply

Manshu February 24, 2011 at 7:16 PM

Can you post a link to the high FD rate they’re offering preferably in the forum; I’m unable to find it. Also, FDs up to 1L are insured, so you could potentially split the FD between family members and be protected.

Reply

vikaskapoor321@gmail.com February 24, 2011 at 8:38 PM
Manshu February 25, 2011 at 5:26 PM

Thanks Vikas – so I see that this is really matching the interest rate but not the tenure, which goes back to what I mentioned earlier, that no one is letting you lock on to these rates for 5 years like SBI. Of course, it’s another topic by itself whether locking on to these rates is a good thing or not.

Reply

Ams February 28, 2011 at 3:11 AM

Manshu,
Can you comment on the Budget 2011 please ?

Thanks,
Amit

Reply

Manshu March 3, 2011 at 8:40 AM
avs February 28, 2011 at 11:43 PM

I will appreciate if you can write a detailed analysis of Government revenue & expenses for the current year so all readers can see inefficiency of the govt. People are just concerned about the direct tax part of the budget. however we should also protest if govt is misusing our money.

Reply

Manshu March 3, 2011 at 8:37 AM
Nag March 3, 2011 at 3:45 AM

Hi,

Your analysis of revenue/expense at the central level is very informative. Would be great if you can write on for the states also.

Reply

Manshu March 3, 2011 at 8:06 AM

I haven’t seen that data anywhere, so I’m guessing that they either don’t break it into that level of detail, or that I need to look more.

I will see if the info is out there somewhere, and if I find something I’ll create a post out of it. Thanks!

Reply

Shilpa Gupta March 7, 2011 at 3:07 PM

Hi Manshu,

I really like your website. I am sure many readers can second my thoughts. I want to create my own website too. If possible, can you write a post on various steps, or links, how to buy domain, register your website, what tools do you use to make the website, post the content, organize it. Do we need to know html coding for it?This post is not related to finance, but i am sure can benefits other readers. Thanks. ~Shilpa.

Reply

Manshu March 7, 2011 at 6:39 PM

Thank you for your kinds words Shilpa – I’m delighted to read such a compliment. I have actually never given much thought to this topic, but it will make for a refreshing change of topics. I’ll try and write about it next week since I need a little time to think about this.

Reply

Manshu March 21, 2011 at 12:12 PM
Niraj Kothari March 11, 2011 at 11:02 PM

Dear Manshu

I appreciate the blog you have started , and to be frank one of your blog on saving capital gains tax through 54ec was very informative and something new to me. I would look forward for such interesting topics and concurrently accurate information with the particular industry experts, also I would suggest you can start a topic on “How to buy gold jewellery in India “

Reply

Manshu March 14, 2011 at 3:43 PM

I have absolutely no idea on what one must do with gold jewelery, but I was quite impressed with your comment today, and I think I might push that to a full post with due credit to you of course. What do you say? You’d like to add something to that?

Reply

Niraj Kothari March 15, 2011 at 12:40 AM

Dear Manshu, thanks , It would be my pleasure to share my expertise and knowledge with people on jewellery buying and also on gold bullion. There are still many more complex issues on gold jewellery and bullion sale / resale which I would add onto your blog..

Reply

Manshu March 15, 2011 at 4:55 PM

Thanks Niraj – I’ll publish your comment as a post next week as I have some ideas for posts already in mind. I’ll send you an email when it is published. Much Appreciated.

Reply

Manshu March 21, 2011 at 12:13 PM
dr shetti March 17, 2011 at 5:17 AM

kindly start a discussion on MOTILALOSWAL NASDAQ 100 ETF
we can diversify from india this is good considering a SUDDEN FALL as recent experience shows will protect downfall and also once US economy improves we can gain

< --deleted the Eco Times article content-->

Reply

Manshu March 17, 2011 at 6:27 PM

I’ll try to write a post on that next week – thank you for the suggestion.

Reply

Manshu March 24, 2011 at 4:10 PM

Dr Shetti – That post is live now:
http://www.onemint.com/2011/03/24/most-shares-nasdaq-100-etf/

Please leave a comment to let me know your thoughts about it.

Reply

Seshu March 23, 2011 at 9:04 AM

Hi,
Like the way you write.. Congratulations on the good job.
A thought popped in my mind to know where the insurance companies invest the money and how they manage to be profitable despite people continuing to live longer(?!, hopefully). How are their investments impacting lifestyles of people and economics in general!
Would be very nice to see your analysis on all the points around this with “as usual” superb discussion from all the readers. I like the comments they give too… its amazing that you attract knowledged readers.

Reply

Manshu March 23, 2011 at 3:48 PM

Thank you Seshu – Even I’m glad that the sites attracts very intelligent discussions, and I just saw some discussion around bond yields which I think is a fairly complex subject, and amazing to see people discuss that regularly on OneMint.

I’ll try to see if I can write something about this or not, but this will be on a slightly lower priority as you see there are a few other topics before this that are of interest to a larger group of people. I hope you understand.

Reply

Mithlesh March 25, 2011 at 1:04 AM

How about a topic on real calculation of capital gains tax on shares and mutual funds and how it can be used in filing tax returns?

not sure if this has already been discussed.

Reply

Manshu March 27, 2011 at 9:21 AM

Hmmm – tax – i try to avoid tax because I’m not intricately familiar with it. I’ll see if I can write something but it’s not likely to be very detailed.

Reply

mithlesh March 27, 2011 at 9:45 AM

Thanks Manshu!! Calculation of capital gains tax is always a pain for many people esp when you have many transactions for the financial year including debt mutual funds and capital losses on shares and equity mutual funds etc.

Reply

Manshu March 27, 2011 at 10:45 AM

Yeah, I know what you mean – I really don’t think or at least I haven’t come across a method to simplify this chore. One does need to go through all transactions and that’s a pretty meticulous task.

Reply

Hari March 27, 2011 at 9:45 AM

Can you please do a post on the advantages of opening an account in the NPS Lite Scheme (Central Government of India’s Pension scheme open to all citizens)

Reply

Manshu March 27, 2011 at 10:44 AM

Okay I’ll try that post.

Reply

Miteysh H Shah March 31, 2011 at 10:42 AM

Dear Manshu,

can you highlight all of us more abt PE Ratio funds, pros & cons, features, etc.

Reply

Manshu April 3, 2011 at 4:15 PM

Thanks for the suggestion – I’ll try to write about that.

Reply

Vijay Athreyan R April 1, 2011 at 4:59 AM

Hi Manshu,

Please compare and write reviews of all trading platforms available in india. Which is better etc… ( eg, IndiaBulls, Reliance Money, ICICI Direct, Religare, SBI CAPSEC etc ). Try to bench mark the facilities given by them. Also let us know is there any platform to buy all investment/financial products under one roof. ( Including derivatives, MFs, e Metels, Bank and Company FDs ). If not all, Atleast let us know which covers most and best… Also analysis the Customer care,

Thanks and Regards
Vijay Athreyan R

Reply

Manshu April 1, 2011 at 7:07 AM

Sorry Vijay – I have tried to write about this in the past but didn’t find adequate info or means to compare one with the other, so I won’t be writing about this topic. Sorry.

Reply

Seshu April 6, 2011 at 7:42 AM

Hi again, Do you want to write something on forex trading? the to knows and what to expect? I havent found much in your website and thought i could request for this.

Have a nice time!

Bye
Seshu

Reply

Manshu April 6, 2011 at 2:16 PM

Thanks for your suggestion Seshu – but I’m sorry I’ll have to disappoint you because I have never done any forex trading and I don’t know anything about that at all.

Reply

sonia April 6, 2011 at 10:39 AM

Hi could yu pls review some poducts such a ING ADAPT andany available FMP.Is it a good time to invest in FMPs

Reply

Manshu April 6, 2011 at 2:15 PM

I don’t know anything about ING ADAPT (heard the name first time today) so I won’t be writing about it. I will write about a general post on FMP in the future.

Reply

Soumya May 23, 2011 at 11:04 AM

Sonia,
I also have a lot of inquiries about FMPs. I think they are the safest investments in this oint of time. I have come across a good FMP article on want2rich.com. I am sharing a link for the same. Please check :http://www.want2rich.com/2011/05/personal-finance/fixed-maturity-plan-review/
I think you will be able to get some useful information from this article.

Reply

N. Karmali April 11, 2011 at 10:35 AM

I would like to suggest you to write on the service charges levied by Banks and other institutions & whether there is any authority to check on the modalities as to how various charges are priced eg DD charges, DD cancellation charges, Folio charges; Statement of Account charges, Cheque leaf charges etc. Is there any cartelisation? Pls check.

Reply

Manshu April 11, 2011 at 4:09 PM

I’m sorry but I don’t know anything about that subject to write on that.

Reply

sohini April 14, 2011 at 11:54 PM

Manshu,
I’ve been trying to find out mutual funds and other financial options for a gift to my nephews. We have a Childrens’ Gift Fund, but apparently that doesn’t let anyone other than a parent invest in it.
Could you please help and suggest some options?
Thanks.

Sohini

Reply

Manshu April 16, 2011 at 12:56 PM

I have never looked into this Sohini, but let me try to see if I can find some info on this. But at the top of my head, I’m not sure how one goes about gifting MFs.

Reply

Alpesh April 18, 2011 at 5:14 AM

I am not sure why there is so much price difference between recently listed SBI 9.75% Bonds and 9.90% bonds.

Reply

Manshu April 18, 2011 at 5:57 PM

Sorry Alpesh – I’m not familiar with how bond trading works to write on that.

Reply

Sreedhar April 20, 2011 at 10:15 PM

I request you to write a topic about understanding of tax calculations. I am sure you have given lot of information about this in various posts. Still, if you can bring altogether
and put that information in one post, it will be very helpful/useful for the fresh earners. What do you say?

Thanks for all the useful information posted in this blog. All the best!!!

Reply

Manshu April 21, 2011 at 6:40 AM

Sreedhar – that sounds like a good idea – thank you – I’ll write about this in the future.

Reply

Manshu May 3, 2011 at 4:30 PM

Sreedhar – That article is live here now:

http://www.onemint.com/2011/05/03/introduction-to-income-tax/

I’ve focused on an overview instead of the calculation because there are several calculators that can help you once you have the numbers, so in this I wanted to write on what you should know about tax once you start earning. Do leave a comment and let me know what you think.

Reply

Sreedhar May 3, 2011 at 9:50 PM

Thanks Manshu. I appreciate your prompt response and efforts behind bring into live.

Reply

Manshu May 4, 2011 at 4:24 PM

Awesome – I appreciate you taking the time out to leave the comment.

Reply

Raghu April 22, 2011 at 2:06 AM

While this might a bit offtrack from your blog’s main theme, I must confess that I find your charts, tabulations and other information visualization very interesting. Towards this, can you discuss which tools you use and a bit about the data gathering and preparation process?

Reply

Manshu April 24, 2011 at 10:18 AM

There’s no real process or any special tools that I use. I use Keynote on Mac and GIMP which is an open source tool. Apart from this – there isn’t anything special and I’m certainly not as good with design as a lot of others are so I’m not sure what I will write on it. I guess I could write a bit on how to make the most use of your limited skills (which in my case are very limited) but I don’t know if that will be beneficial to anyone. Hmmm – let me think and see if I can write something meaningful on this.

Reply

Manshu April 29, 2011 at 11:38 AM

That post is now live Raghu, you can find it here:

http://www.onemint.com/2011/04/28/how-do-i-design-my-graphics/

Do leave your comments and let me know if it was useful or not and if you had any other questions.

Reply

Vijay April 27, 2011 at 12:05 AM

Dear Manshu,
Can you write on ‘How to start trading in stock market ?’ with some general tips, dos and don’ts for someone who is a novice? I know that it is wholly unpredictable but are there some broad principles? some method in the madness???

Reply

Manshu April 27, 2011 at 1:52 PM

Dear Vijay,

I don’t have any knowledge on trading. I’m strictly a long term investor (I do dabble in options from time to time) and recommend it to others as well. I don’t know of any successful traders to be able to write anything on this subject. Sorry.

Reply

Vijay April 27, 2011 at 12:17 AM

Dear Manshu,
I feel that onemint is doing a good job in creating a platform where threads on finance and investment are actively discussed, debated and contributed to by other netizens. I feel that all citizens / netizens should have good knowledge of finance, medicine and law especially. This is because, we are not taught about them formally but i find that every adult should have basic knowledge about them. As a doctor, i find that many of my patients come to me armed with a lot of information about their disease as most of it is available on the web! As far as finance is concerned, many sites incl. onemint are doing a good job. Do you know of any website which offers good knowledge on legal issues?

Reply

Manshu April 27, 2011 at 1:50 PM

Dear Vijay – thank you very much for your kind words. You’ve contributed to the site through your comments and I really appreciate that as well.

I’ve actually not seen any good resource on law. Usually, I try to read the act itself and see if I can make sense out of it. Go for the source was the mantra of my Law professor.

You can try and see if that works for you. When you read about something in the news you can Google up the relevant act and read it.

Specifically for Income Tax – you will find it here:

http://www.incometaxindia.gov.in/

Thanks once again for your kind comment.

Reply

Vijay April 28, 2011 at 9:29 AM

Thanks for your replies!

Reply

NarsingRao.k.v April 27, 2011 at 2:12 AM

Dear sir,
First of all i must congratulate you for the kind of information you have put up and clearing the queries of naives like me. Now my query is, Is e-Gold is safe to Invest in? which is one is better among e-Gold and Gold ETF to Invest? Is true that e-Gold can be converted to Jewlery? Please help me in clearing my query.

Reply

Manshu April 27, 2011 at 1:45 PM

Thank you for your kind words. I have a post on NSEL that ends with my concerns about the product. There are other people who have posted their clarifications so you may go through them as well.

http://www.onemint.com/2011/01/13/e-gold-and-e-silver-from-nsel/

As for converting to physical gold – yes they do have a process where you can pay the additional VAT and get the thing converted to gold, however, this is no different from cashing in your gold ETF and buying gold bars from a jeweler.

I won’t be able to recommend anything specific to you, but you can go through the posts and make a decision yourself.

Reply

Nirmish Patel May 3, 2011 at 9:23 PM

Hi!!

My query is related to savings account interest rate. In last year’s (FY 2010-11) budget, it was mentioned that banks have to calculate the same on a daily basis (Closing Balance for that day). But, I have clarified with my bank (HDFC) that they still calculate it on the minimum balance between 10 to last date of every month. With RBI increasing the rate from 3.5% to 4% for savings account, it would definitely matter to retail customers.

Can you please clarify why is the daily basis method of calculation not followed?

Reply

Manshu May 4, 2011 at 4:30 PM

That’s not right – banks have to calculate at the daily balance which they have been doing.

Reply

Manoj Kumar May 5, 2011 at 2:02 AM

Please arrange to provide some article on Superannuation scheme. What will be the impact of superannuation investment in DTC system

Reply

Vijay May 6, 2011 at 10:08 PM
Manshu May 8, 2011 at 3:36 PM

Thank you for your suggestion. It’s a good topic and I have written a post which is now live here:

http://www.onemint.com/2011/05/08/sundaram-equity-plus-nfo-review/

Thanks!

Reply

Vijay May 10, 2011 at 9:55 PM

Hi Manshu,
How about a post on the New IPO’s / FPOs on offer incl. PFC & other forthcoming ones?

Reply

Manshu May 17, 2011 at 12:32 PM

Thanks for the suggestion – PFC is too late now, but will look at other IPOs – esp. disinvestment candidates for sure. I used to write about those but the performance of most IPOs has been so bad that I’ve not given them much attention lately.

Reply

sorabh May 11, 2011 at 3:13 AM

Manshu
can you write a post about how can one claim Dividend Yields for the stocks they hold and which are the stocks in the NSE with the highest divident yields….

regards
Sorabh

Reply

Manshu May 17, 2011 at 12:30 PM

Claim dividend yields? What do you mean? I’m sorry I don’t understand that – can you please explain a bit more.

Reply

Vinayak May 12, 2011 at 1:12 AM

Hi Manshu,
Thanks for your website. It is indeed a great effort on your part to share your financial knowledge with all. Too few do that.
I would like to know about the concept of special days FDs floated by banks (e.g. 555 days, 999 days etc). What is so special about these days? Why not a FD of 554 or 556 would give same interest?
Do write about this at your convinience and thanks once again.

Reply

Manshu May 17, 2011 at 12:28 PM

Hi Vinayak,

Thank you for your comments – I’m afraid I’m not aware of why this happens. I’ve sent out a note to someone who I think may know about it and I will post a response here if I find out.

Reply

nimeesh May 14, 2011 at 8:28 PM

Hi,

As a normal investor who primarily wants to invest in Mutual Funds, we dont have any proper data which can give comparitive analysis of say Top Funds from each Major Fun House like HDFC, ICICI, Reliance, IDFC, Birla, Sundaram, Tata, DSP …..

Instead of diverisfying within a fund house, we can target for top 1 or 2 funds from all major fund house, that will provide good safety and good growth in long term considering dynamic market and even movements of top fund managers across companies.

If we get details to levels like this for Small-Mid cap which fund is good, for large which one and so on…

SIP based on this one whihc covers all category stocks with top funds from different fund house.

Can we gather this data with your expert comments?

Thanks
Nimeesh

Reply

Manshu May 17, 2011 at 12:21 PM

What I would do is look for some good funds in a few categories like small cap, large cap, balanced, debt etc. and then mix them up so that they are from different sponsors.

I already have a list for best ELSS, gold, balanced, and I think large cap funds as well – you may check them out.

Reply

Sumit Arora May 16, 2011 at 9:44 PM

Hi, i really liked your blog and i feel u really know your game. For long i have been looking at Technical analysis but never followed it. Can you write an article about it and tell us whether has someone actually made money from it?

Reply

Manshu May 17, 2011 at 12:08 PM

Hi Sumit – I think this topic came up for suggestions earlier as well, but I have absolutely no knowledge of trading so I won’t be able to write on that topic.

Reply

Amruta May 18, 2011 at 12:56 AM

ETF Options are widely traded in US markets. Would like to know ur take on their introduction in Indian markets? which etfs should they b introduced on?? Thanx..

Reply

Manshu May 18, 2011 at 4:42 PM

Thanks for the suggestion Amruta – this is a good topic and I will write about it next week.

Reply

Sudha May 19, 2011 at 11:22 PM

Hi Manshu, I had a question about real estate. Did not see a particular section to post it in so asking here. Recently, read that as interest rates keep going up, it will have a dampening effect on real estate sector, leading to a decrease in prices; would take 6 months or more to play out. Is this always the case cyclically, or historically? Also, because the RBI has hinted at a further point increase in the interest rates, there are outstanding builder loans too. Thanks!

Reply

Manshu May 21, 2011 at 12:57 PM

Hi Sudha,

No it’s not cyclical, meaning real estate prices don’t drop every time there is a hike. People are probably saying this now because as interest rates go up the ability of households to take loans diminish (EMIs increase), and a lot of real estate developers are quite leveraged as well. These are opinions, and may or may not come true. Property prices have heated up quite a bit in India, so I won’t be surprised if this does turn out to be true, but I wouldn’t say this is generally true.

I hope I understood your question correctly, and answered it accordingly?

Reply

Sudha May 22, 2011 at 11:05 AM

Thanks, Manshu! Wondered because even with the increasing high prices, sales are happening.

Reply

Manshu May 22, 2011 at 3:26 PM

It appears quite similar to the US experience where property prices just kept going one way until it stopped and everything collapsed. I don’t know if we will have such a collapse in India or not, but I think a lot of people who think property prices can never fall are in for a rude shock.

Reply

Sudha May 23, 2011 at 10:06 PM

Thanks, Manshu

Reply

mithlesh May 20, 2011 at 4:03 AM

With your latest topic on fixed deposit, i think you could follow it up with giving a nice introduction on corporate fixed deposits. I always thought of invested in the ones with rates as high as 12-13% but was not sure how it compares to bank fixed deposit.

Reply

Manshu May 21, 2011 at 12:45 PM

I do have a post on company fixed deposits that can be found here:
http://www.onemint.com/2010/06/21/6-things-you-should-know-about-company-fixed-deposits/

I hope you find it useful, and do leave a comment if you have any questions.

Reply

mithlesh May 23, 2011 at 12:24 AM

ahh already there. thanks mate. sorry didnt search that one on your site.

Reply

Jinu May 29, 2011 at 10:27 PM

Hi Manshu,
I was wondering when would it be a case where opting for Home loan instead of upfront payment( providied you have the cash) be beneficial. I came across a decent post here http://www.jagoinvestor.com/forum/home-loan-beneficial-than-making-payment-upfront/1435/
But all sorts of comments broke in factoring various angles. i am not sure if you have done a post before on this but thought it would be great to have your perspective on it.
Thanks,
Jinu

Reply

Manshu June 6, 2011 at 4:10 PM

Hi Jinu,

I feel uncomfortable on commenting on something written on that post, and that is best left to Manish. I have never given thought to this subject so I’m unable to say anything right now. I’ll try to write a post on this but it might take a long time.

Reply

Parva Thakkar May 31, 2011 at 8:07 AM

First of all, let me tell you – You are doing an excellent job. Your blogs are really useful and have interesting material.

I know you wrote about SBI Bonds few months back, now we have IFCI bonds. How about an article on IFCI bonds?

Thanks,
Parva Thakkar

Reply

Manshu June 6, 2011 at 4:05 PM

Thanks a lot Parva – and I’m glad you found the post useful as well!

Reply

Mithlesh June 2, 2011 at 2:57 AM

Hi Manshu,

I just read something about IFCI bonds which are currently open . I have never invested in bonds before . would it not be wise to give a small review on these bonds and how they fare compared to the traditional fixed deposits?

Reply

Manshu June 6, 2011 at 4:04 PM

Hi Mithlesh,

I know you’ve already commented on the post, but I’m still pasting this link here because sometimes I go through this page to see which posts I’ve written and this may help then.

http://www.onemint.com/2011/06/05/ifci-bonds-tier-ii-bonds-review/

Reply

Manoj Kumar June 2, 2011 at 11:21 PM

Please arrange to provide a write on recently launched “Jivan Arogya” policy by LIC Of India.How it is different from mediclaim poilcy provided by other GIC.

Reply

Manshu June 6, 2011 at 3:58 PM

I’ll write something on it, though insurance is not my strong point so it may not be as comprehensive as you’d like.

Reply

swarooprao June 4, 2011 at 12:09 AM

Manshu, not sure if this topic has been discussed before on your boards or elsewhere, but I am curious to know if there is an “online” way to buy fixed deposits offered by corporate entities like Mahindra, Bharti, Sundaram, et al. This could be either via my bank’s website or my investment/trading portal.

Regards,
Swaroop

Reply

Manshu July 31, 2011 at 5:06 AM

Hi Swaroop,

This post is already up here at this link:

http://www.onemint.com/2011/07/21/how-to-invest-in-ncds-and-bonds/

Reply

Monty June 6, 2011 at 6:55 AM

Hi Manshu,
Not sure if you have covered the topic of Top-Up medical insurance policies. If not can you write a topic on that? Insurance companies which I know of which offer these plans are Bajaj Allianz (Extra Care), United India (Top & Super Top-up) & Star Health (Super Surplus).

Reply

Monty June 6, 2011 at 6:58 AM

Above all thanks for the wonderful topics which you have been posting. These have been pretty useful.

Reply

Manshu June 6, 2011 at 3:48 PM

Thanks a lot Monty! I appreciate your kind words!

Reply

Manshu June 6, 2011 at 3:49 PM

Hi Monty,

I don’t know a lot about insurance so I don’t know if I’ll be able to cover this in depth or not, but I’ll surely try to write an article that touches on the basic aspects, and will try to find links of articles that others may have written.

Reply

Manshu August 1, 2011 at 3:57 AM
M.P.Gupta June 6, 2011 at 8:51 AM

I have got myKYC verified from CDSL ventures for Mutual funds transactions. Corporation Bank(where my account is ) is now asking me to apply for KYC. Is it not enough that I have already my KYC verified like I said above,Can I submit a copy of the same to the Bank?

Reply

Manshu June 6, 2011 at 3:47 PM

Hmmm, it sounds like it should but to be honest I don’t know if it will work for sure. Best bet is to check with the bank itself.

Reply

Value Investor June 14, 2011 at 12:41 PM

Can you please write about (1)wealth tax? Current cap & changes proposed in DTC, etc.
Who needs to pay and on what?

I had also asked about (2) investing in Forex, can Indians buy & hold foreign currency?

More suggestions will follow…

Thanx for all the good articles!!

Reply

Manshu June 14, 2011 at 8:09 PM

Thanks for the suggestions – there are just too many things lined up to do, and that’s the only reason I’ve not been able to get to your earlier suggestion. Unfortunately, it does take me a long time to get to suggestions!

Reply

Value Investor June 23, 2011 at 12:22 PM

I understand that availability of time can always be a constraint.
Thanks for the article on Wealth Tax.

I did some research on holding/investing in foreign currency. Reasonably ok info is available on RBI website.

Reply

Manshu June 23, 2011 at 10:59 PM

Thanks for your understanding, and I’m glad you found some info on the RBI site. They have some excellent reports there as well if you’re ever interested in that kind of thing.

Reply

Manshu August 6, 2011 at 10:58 PM

The article on wealth tax went live a few days ago. Here is the link:

http://www.onemint.com/2011/06/20/wealth-tax-under-the-direct-tax-code/

Reply

Akhil Agarwal June 20, 2011 at 8:09 AM

Dear Onemint,

You guys are really doing well and passing lot of knowledge through this platform. It is seriously useful for individuals and students.

Query:
I am a salaried employee earn approx INR4.2 Lakhs pa and some 1 Lakhs as bonus. I want to structure my salary so that I pay minimum taxes. I know some basic things like HRA, Travelling and Medical Allowance

Please help me

Reply

Manshu June 22, 2011 at 9:38 PM

Dear Akhil,

Thanks for your kind words – I have written a post about Introduction to Income Tax a few months ago. That should get you started and there are links to other articles in that post that explains on the specific parts I touch upon.

I think that should be a good place for you to start and if you have more questions then please leave a comment and I’ll try to answer it to the best of my ability.

Here is the link:
http://www.onemint.com/2011/05/03/introduction-to-income-tax/

Reply

P.N.Jani June 22, 2011 at 7:56 AM

I am facing lot of problem to manage my saving and investments.

I have FD in various banks, Bonds of various company, NSC, PPF, Company’s Provident Fund where I am working,investments in stocks, NCD,etc…etc…..

Immovable property like flat(apartment), house at village etc…etc…..

Movable property like Car, TV, Fridge, Gold, Diamond, Gold ornaments, Diamond ornaments, Precious stones, Silver, Sliver utensils, silver ornaments, Two wheeler, computer, laptop, air conditioner, etc…….etc…..

I am facing too much difficulties to manage all these thing.

Many software i tried on net but they are of no use……and proved hopeless junk.

I need a software which track all my investments and it’s maturity dates and it’s reminders.
It should calculate the interest for the financial year of any given FD so that i came to know that the interest on this FD is more then 10,000/- so tax will be deducted and if applicable i will fill up form 15G / 15H as applicable.

Say for an e.g. I have (Say A) FD in SBI 20,000/-, in BOB 10,000/-, in HDFC 15,000/-….etc
and say my wife (Say B) have FD in HDFC 10,000/-, in IDBI 5,000/-, in ICICI 20,000/-……etc

Like that for all my family members including my mother.

Now if i have to see how much investment of our family in HDFC so the software must show
A has 15,000/- (as above data)
B has 10,000/- (as above data)
C has Nil
D has Nil

Like that……………..

Now if i ask …..How much investment A has
so it should show as below from above data
A has
20,000/- in SBI
10,000/- in BOB
15,000/- in HDFC
Nil in ICICI
Nil in IDBI…………………………like that

If i ask for B it will show like above for B ……

If i ask for all then it should show for all like above for A, B, C, D, …….etc

It should generate report and It should be in printable format ( All the time i am facing problem to print excel sheet as it is too long)

It should calculate interest from date of deposit to end of the financial year and then for next financial year it should take previous year’s (principal + interest) as a principal amount.

All should be store at my machine and not on the web as so many site provide such type of the services.

This software should contains all the important details of driving licence number, passport No.,…..ration card no…….ect…..

It should contain scan copy of all the educational mark sheets of all the family member……..

It should calculate so many things for stocks like date of purchase, sell gain, loss, capital gain tax,…..etc

Something like these i need…..

will you help

Reply

Manshu June 22, 2011 at 9:29 PM

Thank you for laying out your needs in such detail, but I’m afraid this is way beyond what I do here, and there’s nothing I can do to help you in this.

All the best with your search though!

Reply

shraddha June 22, 2011 at 9:19 PM

how about a article on worst performing mutual funds specially equity diversified,
comparison can done based on peer funds who have performed well
also the fund houses who have maximum number of fund with bad returns as compared to peers in the respective category
it will help in rating fund houses and finding the worst fund managers 🙂

Reply

Manshu June 23, 2011 at 11:24 PM

Interesting, let me see if I can come up with omething about that 🙂

Reply

Parva Thakkar July 5, 2011 at 9:34 PM

How about post on 91 DAY TREASURY BILL FUTURES that started on NSE?

Reply

Manshu July 10, 2011 at 12:01 AM

That’s a great idea Parva – I’ll write about this soon.

Reply

Manshu August 3, 2011 at 7:18 PM
Phani July 14, 2011 at 8:59 AM

Hello Manshu !
Since few days I am following your expert comments. Let me know the impact of Direct Taxes Bill on the PF savings of Public Sector Employees. And also let me know the impact of the bill on the House Building Loans (Principal and Interest)

Reply

Manshu July 15, 2011 at 1:12 AM

Thanks Phani – these are great suggestions, and I’ll try and write about them. There are a few topics that I should cover before getting to this one, so it may take some time.

That shouldn’t be a problem though because DTC is still some time away 🙂

Reply

Nikhil July 15, 2011 at 1:17 PM

Hi Manshu,

Do you have an opinion on the take over Benchmark Asset Management Company by Goldman Sachs? I am specially interested in their changes made in the attributes of the Liquid BeES. The circular refers to changes in the Investment Objectives, Instruments, Risk Factors and Risk Controls among others.

The one change I was curious about was in the Instruments which adds `Collateralised Lending and Borrowing Obligation (CBLO)/ similar intruments`. Why the ambiguous term “similar instruments”? Another change is in the Risk Controls. What do you think would these changes affect in terms of the scheme?

Look forward to knowledgeable comments on these changes?

Reply

Manshu July 15, 2011 at 10:07 PM

Hi Nikhil,

Thank you for the question, but I’m not nearly knowledgeable enough to comment on this. I’m afraid I can’t write about this.

Reply

Mike July 17, 2011 at 1:21 PM

Hi Manshu,

Would be interested to see some light thrown on recurring deposits of banks. Especially the way tax is calculated on the returns – for example, if 5k is invested for a period of 10 years (6 lakhs) and at 9.25% interest rate, the amount becomes around 9.8Lacs, should we have to pay interest on 3.8 Lacs or does the calculation differ in anyway?

Thanks,
-Mike

Reply

Manshu July 18, 2011 at 3:54 AM

Hi Mike,

I don’t know the answer to that on the top of my head. Let me research this a little, and if I find something I will write a post. I will leave another comment here in either case.

Reply

Nehal Pandya July 19, 2011 at 12:34 PM

Dear Manshu,

This is to bring to your notice about Perfios.com, an online personal finance finance management solution from India. it currently serves 140000 registered users and has features like auto-update, 360 degree view for one’s portfolio and tax e-filing to name the few.
This is to request you to review Perfios offerings.
Please let me know how we can take this forward.
Look forward to to here from you.

Regards,
Nehal Pandya
8971220587
nehal@aimhighindia.com

Reply

Raghava July 19, 2011 at 7:18 PM

Hi,

Could anyone please publish the best Policy along with offering company that is highly benefitable under SECTION 80 D.

please describe and do the needful

thanks in advance

Reply

Anoop July 26, 2011 at 8:03 PM

Manshu, is it possible for you to talk about 2 most growing banks Yes and IndusInd Bank today. How do you find these and their business model?

Reply

Manshu July 27, 2011 at 6:42 PM

I’ll try to write about that Anoop, though there are several posts suggested here that I have to get to first, so this may take quite long.

Reply

M.P.Gupta July 27, 2011 at 12:36 PM

Please explain in simple- the terms NRI,NROand NRE, and their tax implications.

Reply

Manshu July 27, 2011 at 6:28 PM

I already have a post on this which can be found here:

http://www.onemint.com/2011/04/18/nro-vs-nre-account/

I hope this will answer your questions, and if you have any comments then please do leave them there.

Reply

Jaimin Nair July 28, 2011 at 11:25 AM

Hi Manshu, firstly I would like to sincearly thank you for enlightening us with so much of information which otherwise is not available so easily.

It would be great if you could get us some information on the new IT return process in which we do not have to file a tax return if salary is below 5lakhs. There are lot of grey areas which people do not now yet.

Regards,
Jaimin.

Reply

Manshu August 6, 2011 at 10:55 PM

I have done a post about that in the past, and I see there were other articles that described that due to the conditions laid out there may not be anyone who can take advantage of this.

You can go through the articles and comments here.

http://www.onemint.com/2011/06/24/the-5-lakh-income-tax-filing-exemption-limit-details/

Reply

Value Investor August 1, 2011 at 1:48 PM

Hi,
Can you do a post on Indiainfoline NCDs to be launched this week, probably on 4th Aug.
You could also touch up on investing in NCDs vs FDs.

Hope you are doing fine…
BR

Reply

Manshu August 1, 2011 at 6:51 PM

Thanks for the idea – I saw the news about them filing the prospectus a few days ago, but didn’t realize they will launch so soon. Let me write a post on that this week. Thanks for bringing that to my attention BR!

Reply

Manshu August 6, 2011 at 10:53 PM
Nargis August 1, 2011 at 6:26 PM

I enjoy your informative posts and have learned a lot. I am a MF investor and have done lumpsum & SIP in various schemes. I understand that we must track these investmetns at regular intervals and exit the non-performing funds. I really do not know how to go about it. Please do a post this topic specially covering SIP investmens.

Reply

Manshu August 6, 2011 at 10:32 PM

Thanks for the question Nargis – That post is live here now:
http://www.onemint.com/2011/08/05/tracking-and-exiting-non-performing-funds/

Reply

jopsyjack August 2, 2011 at 6:03 PM

hi,Is it posible to do the trading by buying fhysical gold (coin or biscut)and sell in the market the next day of the marketprice.By that way i hope we can avoid mediator.Please let me know the advantage and disadvantage.

Reply

Manshu August 6, 2011 at 10:52 PM

I’m not aware of a way to do it. There might be one, but I haven’t heard of it.

Reply

kishor August 5, 2011 at 7:09 PM

Dear Manshu,
There is very simple excel file in which one can track MF/ETF portfolio.
It is freeware & available as download from net.
One can enter purchase details in it. User has to go once in a day on net. While on net, if you open file it automatically updates data of all MF & ETF from amfindia.com & accordingly populate your portfolio to see gain/loss. I have made little modifications in it.
If you wish let me know where i can send. SO as you can check & share with your all users if feel useful

kishor

Reply

Manshu August 6, 2011 at 10:00 PM

Dear Kishor,

Thanks for the offer. You can email me at onemint at gmail

I’ll take a look and upload it here if and do a post or share it with people in the weekend links. Thanks!

Reply

Krishna August 5, 2011 at 9:11 PM

Hi Manshu,

Am a avid reader of all your posts. You are doing a wonderful job. Keep up the good work.

Can you do a post on the working of Value Investment Plan (VIP) and which mutual funds in India are offering this service. Also can you compare VIP with a Flexi SIP option provided by some online trading portals like Sharekhan.

Thanks and Regards,
Krishna.

Reply

Manshu August 6, 2011 at 9:54 PM

Hi Krishna,

Thank you Krishna – it is a very good topic, and I will write about this shortly. Give me some time.

Reply

Ashish Gupta August 9, 2011 at 10:04 PM

Topic: Calculating STCG & LTCG for Debt & Equity Funds

Lots of personal finance blog, including this one, have talked about how tax affects different types of gains. However, none of them mention how to go about calculating this gain amount. Employer provides Form 16, banks provide Form 16A, what do MF provide? Specifically, is there any smarter way to calculate capital gain rather than manual calculation for each transaction one-by-one looking over year’s statement?

I think calculating capital gain manually is simply way too complicated. For example:
1. In case of SIP and SWP, different units are invested for different period.
2. Definition of equity fund is one which invests 65%+ in equity. How to calculate this figure, specially for hybrid funds? This is import to know whether LTCG will be exempt or not.

So, in all, is there an smarter way? Do AMCs provide such statement? I didn’t get any for last fiscal.

Reply

Manshu August 11, 2011 at 3:57 AM

I’m afraid I don’t know of a better way to do this Ashish – to the best of my knowledge, no mutual fund or brokerage provides such a statement and it is up to the investors to do the calculation on their own.

Reply

Heena August 11, 2011 at 2:54 PM

Hi Manshu,
I am a frequent reader of your blog! I like the way you analyse financial products.
Can you please help me out?
Could you please detail me with iMaximize ULIP Plan? Can you please write a blog post on the same?

Thank you in advance

Reply

Manshu August 12, 2011 at 4:49 AM

Thank you Heena – I generally stay away from writing or analyzing ULIPs because I’ve not come across a good ULIP product yet. My recommendation would be to buy a term insurance and mutual funds instead. Keep your insurance and investments separate, save on cost, and simplify your investment. Also, I’m curious to know what prompted your interest in this product?

Reply

Alpesh August 21, 2011 at 6:57 PM

fully agree manshu…. I bought a ULIP and returned in the look up period after going through the charges schedule

Reply

Shailendra August 20, 2011 at 9:34 PM

Hi Manshu,

Would like you to shed some light on how to invest for dividend gain in shares. What prompted my question is the recent announcement by JB Chemicals of a special dividend of Rs.40 per share wherein the share itself is trading at Rs.140 currently. Sounds very mouth watering but i have myself burnt my hands in the past with Rajesh Exports.

Would you be able to explain the process on the record date, when should one invest to become eligible for the dividend payout (days before the record date), what should be the strategy with such investments ex-dividend, whether it actually makes sense to invest in such shares,etc…

I am sure it will help a lot of people including me because a good understanding will lead to a profitable decision which might include not investing at all (and thereby curtailing losses)

Thanks

Reply

Manshu August 21, 2011 at 10:14 PM

Hi Shailendra,

To the best of my knowledge, this can’t be done. You can’t buy a stock and make a sure fire profit due to the dividend that’s been declared. I have an extremely detailed post about this topic which explains Ex Date, Record Date etc. which can be found here:

http://www.onemint.com/2011/01/04/dividend-declaration-ex-dividend-and-record-dates/

Reply

youstron August 22, 2011 at 11:10 AM

sir please suggest me,how can we register a trademark and name for the company??//

Reply

Manshu September 7, 2011 at 1:27 AM

I’m sorry I am not aware of how one can do that.

Reply

M.P.Gupta August 22, 2011 at 6:16 PM

Sir,
the share prices,crude oil prices all over are falling,but I wonder why US dollar prices in terms of INR are raising.please explain.

Reply

Manshu September 12, 2011 at 1:29 AM

The USD itself is rising against all currencies and that’s because it is considered a safe haven asset, and big hedge fund managers and investors are demanding it and pushing the price up. The same was seen in Swiss Francs which moved up before the Swiss government said they won’t allow it to appreciate any further, and decided to buy as much foreign currency as necessary in the international market.

Reply

Manshu October 3, 2011 at 5:02 AM

Sir, here is a full post on the topic that I did today:

http://www.onemint.com/2011/10/03/why-is-the-rupee-falling/

Reply

Hari August 25, 2011 at 10:30 PM

Hi,

Could u please let me know whether a retail investor can invest overseas.

Reply

Manshu September 12, 2011 at 1:26 AM

Yes Hari – you can ask your broker like ICICI Direct to enable overseas trading in your account and with that you can buy ETFs listed abroad. I haven’t done this myself so don’t know the mechanics of it but it is doable.

Reply

Sridhar August 31, 2011 at 2:11 PM

I suggest the following topics:-
1. E-gold vs Gold ETF Pros and cons of both
2. E-Series products from NSEL. Should you go for it?

Reply

Manshu September 12, 2011 at 1:28 AM

I have done a post on E Series and laid out whatever I know about them in that post:

http://www.onemint.com/2011/01/13/e-gold-and-e-silver-from-nsel/

At present there is nothing more I can add to this and won’t be able to do another post with a comparison.

Reply

vikrant kumar September 3, 2011 at 2:37 AM

Sir,Can u help me in understanding the rights issue in the company and all the fuss about that(recently sbi issue..)

Reply

Manshu September 4, 2011 at 3:17 AM

Thanks for the suggestion, and I’ll try to write a post of that next week.

Reply

Manshu September 7, 2011 at 1:28 AM
Ashok September 3, 2011 at 6:26 PM

Can you compare the performance of various Indices over a period of time? We can easily comparison of various MFs in different sites, but if I ask the question, has BSE-200 performed better than CNX-500 in the last 5 years, there is no answer.

The objective of such an exercise is, if we know the best performing index, then we also know how the funds have performed in comparison to the said index. And if already have an index fund linked to that particular, that would be my best investment vehicle, no ??

Reply

Manshu September 4, 2011 at 3:11 AM

I can certainly try that, but I’m not sure how effective that would be. I say that because of two reasons – first, the indices that have done well in the past few years may not do so well in the future given their different nature, and second – in India, there are quite a few mutual funds that have over performed the indices by quite a bit. Regardless, I’ll try to research this.

Reply

Ashok September 4, 2011 at 5:11 PM

Hi Manshu,

I agree with you. Past performance is not a guarantee but it might give some hints on why certain indices perform better than others ( and I am not looking at sectoral indices at all).

Secondly, I read The Hindu BusinessLine Investment World feature (on Sundays) for MF review/recommendations. In those reviews, they frequently make a generic comment that “xyz fund has outperformed the CNX-500 index, which is a tough index to beat..”. So I wonder if this index is so tough to beat by a diversified active fund, then I am better off investing in Benchmark’s CNX-500 Index fund, isn’t it?

Reply

Manshu September 5, 2011 at 6:02 AM

Hi Ashok,

I really don’t understand what they mean by that – how can one index be harder to beat than another? These are all free float based market cap indices and the differences between them is the area that they try to cover. While Nifty captures the biggest 50 companies, CNX 500 tries to capture most of the market cap – if two funds have these benchmarks, I’m not sure how they can say that the fund that beat the 500 had a tougher job to do than the fund that beat the 50.

I think they must mean it in a more generic way that beating an index is difficult and that the particular fund has been able to do it. I’m going to collect some data around this, and we’ll discuss it.

Reply

Manshu September 12, 2011 at 1:31 AM

Hi Ashok,

Here is the post with the comparison of various indices:

http://www.onemint.com/2011/09/11/leading-indian-indices-and-their-performance-details/

Reply

Vimal Raj September 5, 2011 at 3:46 PM

Hi Manshu,

Can you cover about various features in the corporate bonds in one article? Particularly the callable, convertible and puttable. My main query is in callable when the bond can be traded on secondary market. If the bond is trading in the secondary market, how the issuer get benefit?

Reply

Manshu September 5, 2011 at 10:18 PM

Hi Vimal,

Thanks for the suggestion – I am currently in the middle of a series about corporate bonds and Non Convertible Debentures, and so far have done four articles on this. You can find the articles here.

http://www.onemint.com/2011/06/29/introduction-to-ncds-part-1/
http://www.onemint.com/2011/08/28/introduction-to-ncds-part-ii/comment-page-1/
http://www.onemint.com/2011/08/30/how-is-tax-on-ncds-calculated/

Reply

Ashok September 5, 2011 at 4:26 PM

Hi Manshu,

After some Googling, I got a link to one of the BusinessLine articles ( and I have read the same statement in Business Line few more times) :

http://www.thehindubusinessline.in/iw/2011/01/09/stories/2011010950300500.htm

QUOTE: For one, while our recommendations did work well on an average, we did find it hard to outperform that tough benchmark — the CNX 500 index. UNQUOTE.

Which means the mutual funds recommended by Business Line failed against CNX 500, though they may have outperformed their individual benchmarks (otherwise they wouldn’t have been recommended).

By the way, if I do the research and send you the article, then do you publish it on your blog?

Reply

Manshu September 5, 2011 at 10:15 PM

I read that article and I think they are using CNX 500 as a proxy for the whole market because that covers I think around 98% of the market cap of the whole market. I’d be happy to publish anything that you send but for this one I can do the research myself, I have a fairly reasonable idea of where to get this data so it shouldn’t be a big exercise. Thanks!

Reply

Nikita September 6, 2011 at 7:00 AM

Sir, can you please explain about different ways in which a social group can register (NGO/ TRUST/ SOCIETY) and their pros and cons.
Also, is there any way in which a group can register as a company and still be explicitly recognized as not-for-profit ?

Reply

Manshu September 7, 2011 at 1:28 AM

I’m sorry Nikita – I don’t know the answer to that or how to get to that information.

Reply

dhairya lakhera September 7, 2011 at 5:16 PM

how equity shares prices are affected from derivative? is there any technically impact of derivative( future and option) on equity shares? how can the increase/decrease in open interest,volume,put/call ratio can impact on the price of equity share technicaly in swing trading?

Reply

Manshu September 11, 2011 at 5:19 AM

I’m sorry Dhairya – I’m not familiar with technical analysis at all to be able to write about it.

Reply

Praveen September 12, 2011 at 4:53 PM

I have read some of your post which is very helpful understanding the basic of market. Can you also post some thing on Technical analysis of stock .

Reply

Manshu September 18, 2011 at 11:04 PM

I have no knowledge of technical trading, so I won’t be able to write anything about it. Sorry.

Reply

Aloke Roy September 13, 2011 at 7:15 AM

Recently I deposited a Gift cheque of American Express Bank $10 in ICICI bank.I have got Rs 135.I understand that the approximate value of $10 is Rs 450/-.Thus the Bank has charged Rs
315 as commission.This amounts to 70%.Kindly let me know the proper way to encash gift cheques in doller.

Reply

Manshu September 18, 2011 at 11:01 PM

I’m sorry, I don’t know of a way to do this, and in fact today is the first time I’ve heard of such a thing.

Reply

Sid September 17, 2011 at 10:10 PM

Does it make sense to use SIP in liquid funds as a way of savings money for the Insurance/ULIP premiums…Please suggest. Thanks

Reply

Manshu September 18, 2011 at 10:38 PM

Not to me it doesn’t – investments should be diversified and goal oriented, and paying premiums on insurance is not a good enough goal to drive your investments.

Reply

Praveen September 18, 2011 at 12:14 AM

ICICI direct.com plan to increase their brokerage charges for delivery and Margin products from next month. I just Google to find out the current brokerage charges from various DP, but I was not able to get the comparative charges in one site. Do you have any information in this regard. what will be your choice for best trading platform available currently in term of
1) Service
2) Charges

Regards
Praveen

Reply

Manshu September 18, 2011 at 10:37 PM

I’m afraid I don’t have this information and don’t plan to do a post on this any time in the future. I started out doing this a year ago but found that the info is not easily accessible and even when it is – it’s not directly comparable. Plus there is no way to compare the service levels (as far as I know).

Reply

Narayana September 19, 2011 at 8:17 PM

why FMPs are not trading on NSE/BSE although they are listed?

Reply

Manshu November 15, 2011 at 1:29 AM

I don’t know about that – sorry.

Reply

Murali September 19, 2011 at 9:45 PM

Hi,
1.Can a charitable trust made as the nominee in Mutual funds? If yes what are the documents that needs to be submitted. I asked a few AMC’s they are not aware…

2.Where can i get the historical P/E Values of all sectors of Indian Market? What are the average P/E values of all sectors in India? Is it an important factor for deciding the stocks??

Reply

Manshu September 21, 2011 at 5:30 AM

Hi Murali,

I don’t know about your first question, but I have written a post about P/E ratios, and it can be found here.

http://www.onemint.com/2011/09/21/nifty-pe-ratio-chart-and-how-to-get-to-this-data/

Thanks for your suggestion, and I hope to see your comment there.

Reply

Rajeshwari E September 21, 2011 at 10:22 AM

Sir,

I am Rajeshwari actually i want to invest in Gold fund in SBI Bank somewhere i am not getting a clear knowledge in Gold fund and also Shares, Mutual Funds. How the common man can know these things? Can you explain me clearly. The basic things that if i invest Gold fund how i will get the returns, what all the things will be there? What all the things must and should i want to know? what is that unit price? How they calculate the returns? What are the procedures? Can you briefly explain me? Please.

regards,

Reply

Manshu November 15, 2011 at 1:28 AM

I’m afraid there are just too many questions here and it’s not really possible to write a post addressing them all. You can subscribe to the site and go through the articles that publish every day and I think that will help you understand some of this but as far as writing one post that will explain everything I don’t think I can do that.

Reply

seshu September 22, 2011 at 5:28 PM

Hi,
You have become the financial magazine of sorts for me to keep myself upto date 🙂 Great job! Keep doing good!
I have 2 questions, not topics probably.
1) I like to repay my home loan by accumulating some money over the next 7 years. For this, I plan to to an RD for the next sa7 7 years @9% p.a. or so and then use that lumpsum to either pay or part-pay the loan. Is there a way to save on the tax on the interest for the money that is accumulated? I dont want to end up paying tax for something that I am saving to re-pay a loan. Is there any provision to help here? Does any bank where I take the home loan provide the possibility of protecting this, if I do the FD/RD with them?

2) If there is a good magazine that you could suggest (online reading also) for financial news/views, what would you suggest?

Best Wishes,
Seshu

Reply

Manshu September 25, 2011 at 9:51 PM

Thank you so much Seshu – that’s a wonderful compliment.

For 1 – no I’m not aware of a way to do this. Interest income is interest income and regardless of what you plan to do with it.

For 2 – there are several – Business India, Business Today, Business Line, Economist, and Forbes India being the ones that immediately come to mind.

Reply

Vijay September 28, 2011 at 7:56 AM

Hi Manshu,
1.I read your post on NSEL & E-Gold / Silver. As my city is not listed in the addresses of the Depository Participants, how can i go about investing in the same?
2.A topic suggestion: ICICI Guaranteed Savings Insurance Plan.
3.How about a list of websites & magazines with your views on their strengths for regular reading?

Reply

Manshu September 28, 2011 at 4:41 PM

Hi Vijay,

1. I really don’t know about it – maybe someone like Religare has a mechanism to mail them the documents and they open the account for you or something, but I really don’t know about this.

2. I have not heard of this project but will look it up now, and write about it in the future.

3. There aren’t any special things really – I read the Business Standard, Financial Express, NYT, WSJ, Bloomberg as far as daily news is concerned, and then although I haven’t been able to read them for a long time – I used to like Business India, Business Today and Business World. Fortune India is also a good magazine and has a good online version. Blogs – I have more than 50 on my Google Reader and I hardly get to catch up on all of them but keep an eye on the headlines at least and read the stories that I find interesting.

Reply

M.P.Gupta September 28, 2011 at 11:40 AM

Dear Manshu,
Where to get latest daily quotes of all and recently issued NCDs

Reply

Manshu September 28, 2011 at 4:19 PM

Dear Mr. Gupta – So, far the best place I have discovered is the Edelweiss website. Let me give you the link here:

http://www.edelweiss.in/Debt/DebtSnapshot.aspx?cn=L_TFINANCE-N2

Reply

Aditya Bhelke September 30, 2011 at 1:56 PM

Hi,
I enjoy reading your blog and look forward to your views on LIQUIDBEES.
As a small investor, how well is this product to park funds instead of a bank savings account.

This is my plan: Every month as soon as I get my salary, I will move most of it into the LIQUIDBEES. Then during the entire month, I will sell units as and when required for expenses and investment purpose. Over a large period of time, fractional dividend units will keep accumulating which I will redeem after an year or so. I’m assuming that my broker does not charge brokerage for buy sell of LIQUIDBEES.

Is this a good plan? Will it actually make me some more money in the long run?
Thanks,
Aditya

Reply

Manshu October 4, 2011 at 6:11 AM

Yes your broker will charge you commission for buying and selling units as they are treated just like shares, and that will put a big dampener on your returns. My initial thought is that it won’t work out better than just having letting your expenses lay in the savings and investing the other part. It’s just too many commissions, and I see that Liquid BEES returned a 5% annualized return in the last 3 years, so it’s not all that high when compared to a savings account anyway.

http://valueresearchonline.com/funds/newsnapshot.asp?schemecode=1787

I’m not all that positive about the plan – I can do an entire post if you think otherwise, and let’s hear your ideas out here.

Reply

Nitin Daukia October 2, 2011 at 4:58 PM

Sir,
From your post “Why can’t a country print money and get rich?” I could understand that putting more money in the hands of citizens/consumers will eventually soar up the price of commodities/services. But, my question is, why cant a country, not a part of common currency union such as EU, print money and settle its external debt? Also, the debt has to be paid sooner or later so why not by printing more money in lump sum or installments.

Reply

Manshu October 4, 2011 at 5:57 AM

Foreign or external debt is usually held in a foreign currency like in India’s case 52% of the external debt is held in USD, and India can’t print the USD of course.

So, the other course of action is for India to print INR and use that to buy USD in the Forex markets but that won’t work because when you have a lot of supply of INR relative to USD – your currency will depreciate significantly, and you will have to pay that much more for your imports – like oil and capital goods. So, you can’t really print money without having these implications.

Reply

mithlesh October 5, 2011 at 2:33 PM

Hi Manshu..

I was wondering you have written any post on downgrades by rating agencies such as moody’s downgrade of SBI recently and how it could impact the company and what should investor do about it?

Reply

Manshu October 5, 2011 at 11:34 PM

No I haven’t and I don’t think it will have any impact on how SBI operates. I think regular folks like us are better off by looking at credit ratings as far as smaller companies are concerned but for bigger concerns like SBI or even countries – I don’t think the rating agencies have any info on top of what the market already knows.

Reply

Mohammed naseeruddeen October 6, 2011 at 11:20 PM

Hai manshu,
Could you please tell me, as to how you create your website. I mean what tools, language or web script (i am not that much tech savvy so i dunno what should be the exact thing) you use to host your website. Like mysql, php, html etc., ?

Reply

Manshu October 7, 2011 at 4:34 AM

Hi Naseer,

Great to see your comment here – I have written a detailed post about it some time ago, and you will find it here:
http://www.onemint.com/2011/03/13/beginners-guide-to-setting-up-a-website/

Please leave a comment if you have any questions or you can write me an email also. Hope you find this useful.

Reply

Mohammed naseeruddeen October 9, 2011 at 10:46 PM

Thanks for that superb link.

Reply

Manshu October 11, 2011 at 5:28 AM

You are welcome man – write to me if you need any further info.

Reply

Umesh October 9, 2011 at 7:41 PM

Hi Manshu

There is a news that “Country’s largest fund house HDFC Mutual Fund launched HDFC Gold Fund”

A Gold ETF NFO was launched by HDFC Mutual Fund recently. Will you please be kind enough to review this NFO. Is it linked in any way to the Gold ETF that is already managed by
HDFC.

Thanks

Umesh

Reply

Manshu October 11, 2011 at 5:29 AM

Hi Umesh,

Thanks for letting me know about that – I’ll review it this week for sure – yes it is linked to them, they will collect funds from their MF and invest in their ETF 🙂

Reply

Manshu November 15, 2011 at 1:30 AM
suniel October 12, 2011 at 1:44 PM

Iam a regular to this site and found interesting information on NCDs, ETFs. However I have a query from my cousin which is bit intriguing. He quit job last year, over some health issues and since recovering. His expenses are just met with earnings by way of FD interests etc…

He has savings which he want to invest to meet his family expenses / saving if any. Since he is just around 40, Iam in dialemna of what product would suit his long term hiatus from job.
I wanted to suggest MFs but experienced their fall along with Equities in past 1 year. My investment in ‘SBI magnum’ drowned. Iam in fix of what to suggest him.

Would you suggest any better investment idea for this case.

Reply

Manshu October 13, 2011 at 5:17 AM

Sorry to hear about your cousin.

I think you are on the right track with going for only super safe investments like bank FD. The only other thing I can think of is FMPs which are a bit more tax effective if at all tax planning is a consideration. I’d stay away from equities because those are volatile and can cause loss which will be hard to recover from in his case.

Reply

Ashok October 13, 2011 at 7:48 PM

Hi Manshu,

What do you think of the new DSP Blackrock World Agriculture Fund ? I mean what is your opinion on the theme ?
The underlying fund has done reasonably in the short duration it has been there ( 1.5 years ).

http://www.dspblackrock.com/nfo/swfs/BGF_FundPerformance.pdf

I am feeling interested in the Agriculture idea ( as high-risk high-return gamble) but also feel the timing may not be right because of the depreciated rupee. If rupee stabilizes at around 45-46, then I may go for it.
Your thoughts?

Reply

Manshu October 14, 2011 at 8:18 PM

This is a fund of fund right? I’m generally wary of those because of the high expenses, and then the currency risk as you mention. Let me look at this a little deeper over the weekend and write something up next week.

Thanks for bringing it up – it’s a great topic.

Reply

Ashok October 16, 2011 at 3:11 PM

Yes, it is a FoF. Also the underlying fund is an Actively managed fund. So expenses overall would be high.

But it could still be a good investment into a sector which Indian investors are not exposed to at all.

Reply

Manshu October 18, 2011 at 11:06 PM

Could potentially be, let me take a closer look and come up with a full post. Thanks for the idea!

Reply

Manshu November 15, 2011 at 1:32 AM
ujjwal October 14, 2011 at 9:37 AM

manshu
i have a request to you regarding your previous articles of your blog….what i have noticed that browsing through the past article in your blog is not that easy….please can you archieve your previous article in month basis like other blogs…so that if anybody wants to read your blog entry from beginning and go through all the articles which are interesting and usefull to him…
ujjwal

Reply

Manshu October 14, 2011 at 8:16 PM

That’s a great suggestion Ujjwal – thanks for bringing it up – I hadn’t thought of it but it should be something that’s easy to do. I have some other changes in mind as well, so will probably lump all of these together and try to get that done by next weekend.

Reply

ujjwal October 17, 2011 at 10:07 AM

thanks manshu…
now i can go through all of your article from start easily and increase my knowledge base….
thanks a lot
ujjwal

Reply

Manshu October 18, 2011 at 11:05 PM

Superb idea from you Ujjwal – I should thank you for it – thanks a lot!!! 🙂

Reply

Atul Mittal October 14, 2011 at 9:46 AM

Hi Manshu

Please write something on the topic of HFT/Algorithmic Trading…
How these are adding or hampering market efficiency or causing market abuse..
Are retail investors getting disadvantaged due to big players using HFT.
Should regulators be worried about HFT.
What are the possible solutions..

Reply

Manshu October 14, 2011 at 8:15 PM

That’s a great suggestion Atul – I’ll try to write about that in future.

Reply

Murali October 14, 2011 at 11:10 PM

Hi Atul,

Sorry just clarification what’s HFT?

Reply

Manshu October 18, 2011 at 11:41 PM

That’s high frequency trading – basically algorithm based trading that computers conduct – transacting in milliseconds.

Reply

Manshu November 15, 2011 at 1:33 AM
M.P.Gupta October 14, 2011 at 11:18 PM

Hi,
I have switched from one fund to another of the same mutual fund.Can I switch again within the same year? Will I be charged any fee? How often we can switch funds?

Reply

Ashok October 16, 2011 at 10:18 PM

Hello Mr. Gupta,

Yes, you can switch again between funds. You will most likely be charged the Exit load from the first fund since most of the funds have an exit load if switched/redeemed within an year. Please check the offer document of the first fund.

A switch is nothing but redemption from first fund and buying the second fund. So the charges applicable for both the transactions are applicable.

It is not advisable to switch funds so frequently.

Reply

Manshu October 18, 2011 at 11:06 PM

I just wanted to chime in and say it makes total sense to me.

Reply

Vikas October 16, 2011 at 3:10 AM

Hi Manshu,

Excellent site!

Please do a followup post on FMPs esp. the tax implications due to DTC. Your earlier post on FMPs http://www.onemint.com/2011/04/19/fmp-taxation-and-fd-comparison/ is from April this year. I suppose some things are more clear now that we are past the middle of 2011-2012.

How does one decide the maturity of FMP? Is it better to go for 3 year FMP v/s say 369 day FMP? Also, please discuss the concept of “indexation” in a little more detail.

Thanks again. Keep up the good work.

Reply

Manshu October 18, 2011 at 11:40 PM

Thanks Vikas – glad to hear from you.

As far as I know there hasn’t been any progress on the DTC front – the govt has been busy with other stuff lately 🙂

I think indexation and FMPs in general are a good topic, and I’ll try to do a post on them in the future.

Reply

Manshu October 18, 2011 at 11:40 PM

Thanks Vikas – glad to hear from you.

As far as I know there hasn’t been any progress on the DTC front – the govt has been busy with other stuff lately 🙂

I think indexation and FMPs in general are a good topic, and I’ll try to do a post on them in the future.

Reply

Vijay October 17, 2011 at 11:43 AM

Single premium policies e.g: LIC BIMA BACHAT. How about a post on that Manshu?

Reply

Manshu October 18, 2011 at 11:02 PM

Yes, coming up for sure – already started on ICICI Pru’s iAssure policy review as someone had suggested that earlier. Will do this one shortly too.

Reply

Amar October 19, 2011 at 9:49 AM

Hi Manshu,
I had a couple of questions:
1. I am reading that BHEL will soon be coming out with an FPO. I would like to know if an FPO is a good sign for a small investor to invest in a company? How different is it from an IPO?
2. Tata Motors has split recently from a FV of Rs. 10 to Rs. 2. Is it possible for any share to be split any further? As in, can it now be split into an FV of Rs.1 for instance?
Thanks,
Amar.

Reply

Manshu October 19, 2011 at 7:15 PM

Hi Amar,

1. An IPO is an initial public offer which means that’s the first time a company is offering its shares to the public. An FPO is a follow on public offer which means that the company has offered its shares to the public and will offer some more of them now. It’s quite similar in the way the process works. On its own – it’s neither a positive or negative sign. It depends on which company is coming out with the offer and at what price. This market has not been good for a few years in India, and I think except for Coal India – you could have bought the IPO / FPO of every other company at a lower price than what was offered during the issue.

2. Yeah, they can go down to one rupee as well.

Reply

Swaroop Rao October 22, 2011 at 1:43 PM

It would be interesting to discuss perpetual bonds (or perps) some day. I saw a bunch of them being advertised today (Tata Power, Tata Motors and Dewan Housing). There seems to be some risk in investing in these bonds, so I wanted to know if there’s any pros/advantages to balance it out.

Reply

Manshu October 25, 2011 at 5:14 AM

Great Idea! Will line up that post for the future.

Reply

akshay October 22, 2011 at 7:57 PM

What are mutual funds n what is difference between mutual funds n shares

Reply

akshay October 22, 2011 at 7:59 PM

What is mutual funds n what is difference between mutual funds and shares

Reply

Manshu October 25, 2011 at 5:11 AM

Good idea Akshay – I’ll write about it and include ETF, fund of funds also so that the post becomes a little more comprehensive.

Reply

Manshu November 8, 2011 at 7:55 PM

Here is the post that explains the difference between mutual funds and shares.

http://www.onemint.com/2011/11/08/difference-between-shares-and-mutual-funds/

Reply

ramamurthy October 23, 2011 at 10:09 PM

I suggest you create a seperate topic exclusively related all issues connected with SENIOR CITIZENS.

Reply

Manshu October 25, 2011 at 4:50 AM

I’m not sure I understand what you mean? A category?

Reply

Dr.K.Laxmidhar October 24, 2011 at 10:27 AM

Please give opinion on quantum mutual fund & ther phylosophy.Why ther aum is less then other mutual fund amcs?May the low aum affect on return?

Reply

Manshu October 25, 2011 at 4:46 AM

Probably because they don’t market as aggressively as some of the other guys. They don’t affect the returns of the funds and this is shown by the gold ETF and a few other funds that I have reviewed here in the past. I don’t think there’s anything more to it so I won’t be able to do a full post.

Reply

Dweep October 24, 2011 at 5:27 PM

Hi, my first appearance here!
You have amazing knowledge and especially amazing skills to express that.

I’d like to suggest you to write about a new style of trading : Pair Trading

Thanks.

Reply

Manshu October 25, 2011 at 4:34 AM

Thanks Dweep – I have absolutely on knowledge or interest in trading, so I won’t be able to write on it. Sorry.

Reply

Vishal October 29, 2011 at 3:44 PM

Hi Manshu,

I have been thinking of buying another term insurance for myself. So had asked my agent to send me a quote for 35 lakh insurance. He had sent me the quote. Along with that he suggested that i take a look at LIC’s Whole life Limited payment with profits policy. Instead of paying 13.5 K premium for 35 years, he suggested i pay 26K for 40 years for a sum assured to 10Lakh. But his logic was that in the term policy, there is no survival benefit or a maturity at the end of 35 years but in this whole life policy, if the person insured survives upto 80 years of age, approx returns would be as follows:-
TSA – 1000000
Bonus – 3500000
FAB – 3350000
Total – 8050000

I have always believed that the term insurance is the best form on insurance… But just wanted to take people’s opinion about this plan before finally taking a term insurance. Please suggest.

Reply

Manshu October 30, 2011 at 11:01 PM

But this is all assumption right? I mean only 10L out of this amount is guaranteed and the rest is based on what returns LIC generates right? And that could change 10 or 20 years down the line, and the final value may not look like this at all – am I correct?

And if you already have a term plan from them then it might even make sense to get a cheaper plan from someone else. I’ll do a full review but it might make sense to look at cheaper options.

Reply

Vishal October 31, 2011 at 9:50 AM

Yes, only 10L is guranteed and rest all is basis assumptions based on current profits of LIC.

Regarding cheaper plans from other companies, somehow i trust only LIC. Everytime i think of taking an insurance from any other player, i am reminded of the post which u did on comparision between all players on rejection rate. Wouldnt want my family to go thru any hassles…

Reply

Manshu October 31, 2011 at 8:21 PM

Okay, see then that makes a lot of diff, if only 10L is guaranteed and the rest depends on interest rates and bonuses then I’d do an IRR of how much extra they can give me and what the rates currently are and compare it like that. If its just assumptions and projections then you have to keep that in mind. When I do the post on this which should be this week I’ll use the examples from their page and see what return they’re talking about.

Other aspect is that if you already have an insurance from LIC then you could consider taking it from one of the other players because people in the know say that once you have split up insurances and one insurer pays up, it’s that much harder for the other insurer to reject the claim.

Reply

Vishal Jain October 31, 2011 at 10:06 PM

Your last point on different players makes lot of sense. I had never thought about this in this manner. Brilliant insight! Thanks a ton buddy… But am still eagerly waiting for your post on this 🙂

Reply

Manshu November 2, 2011 at 5:29 AM

Great – this is someone else’s idea – I can’t remember where I read this first, but I have heard it from a few different people.

Reply

Manshu November 15, 2011 at 1:35 AM
ujjwal October 30, 2011 at 12:15 AM

manshu…
i am still not able to clearly understand how the SENSEX and NIFTY is calculated…also how its EPS and PE is calculated….will you please make a post with a real example say Nifty of 28 th october with your simple language….it will be helpful to lots of novices like me…
ujjwal

Reply

Manshu October 30, 2011 at 10:37 PM

Hi Ujjwal,

I’ll see if I can do such a detailed post or not – this requires a lot of data, and I don’t know if all of that is accessible or not. For example, you need something known as a divisor for the Nifty – that is a number that takes care of things like rights issues, bonus issues etc. and makes sure that those things don’t affect index calculation.

Then even basic things like what was the market capitalization of the Nifty constituents on 28th October. I see BSE publish that but I haven’t seen NSE publish that, and even if they did – do they do it on the free float market cap basis.

Then for the EPS, you need to take the EPS for all 50 stocks, and that too I don’t know if they take the trailing EPS or last year’s EPS, and my guess is that each exchange takes a different one.

Sorry for all the jargon, but I wanted to emphasize how much data is required to do the kind of thing you’d like to see, and I’m not sure if all that is available or not. I’ll give it a try but this might take quite long.

Reply

Manshu November 15, 2011 at 1:36 AM
Sujatha Sadananda October 31, 2011 at 1:13 PM

This query is basically regarding investing in mutual funds online.
1. Moneysights have recently started a service of investing in mutual funds online. I wish to know your opinion on this. My doubts are especially pertaining to the annual fees and the payment on each SIP transaction I have pasted the link below:
https://www.moneysights.com/home/moneysights-services-of-Buying-selling-top-performing-Indian-mutual-funds
2. Also what is the best way of investing in mutual funds online. Should we go to individual websites of each mutual fund and invest. Or is there any other website that allows investment to various mutual funds. (At present my demat account allows only lumpsum investments to mutual fund and not my preferred form of investment i.e. throught SIPs) Or just doing it through a bank.
I would be grateful if you could answer my queries. Thank you for your time. Sujatha.

Reply

Manshu October 31, 2011 at 8:18 PM

Sujatha,

MS recently sent me an email letting me know about this scheme and I actually commended them to keep the pricing so simple that everyone can understand it and not have the fear of getting screwed by something that they didn’t see coming. Frankly, I haven’t used this platform, and can’t say for ease of use or other aspects, but it looks pretty low cost to me.

I haven’t used anything other than ICICI Direct and that too a long time ago. I think they used to charge a lot more than just 10 bucks.

If your broker doesn’t allow you to invest online in cheap way then funds india and moneysights are the only two options that I know of – there might be others but I don’t know of them. As for the best way – I think that depends on how many you want to buy, whether your KYC is done, what amounts you’re investing etc. and a generic answer is tough for that. Let me think about this some more and I may do a post on it in the future.

Thank you for your question.

Reply

Vishal November 1, 2011 at 10:33 AM

Was going through the Funds India website. For online investments, they charge something called the “Trail fees” which comes to around 0.5% annually. What is this fees? Who would be paying them this fees if the investors are not asked for the same. In case of moneysights, the investor is being charged “Annual charges” + “Lumpsup / per SIP charges”. Will Moneysights be also getting this Trail fees? Which options comes out to be cheaper for the investor? Any insights on this?

Reply

Manshu November 2, 2011 at 4:38 AM

Hmmm trail fee used to refer to fee that mutual funds give to their agents, and was deducted from the NAV – part of the expenses. Investors never see this directly. I have a faint recollection that this was stopped but I guess I am wrong based on what you have said. But, regardless, if there is a trail fee then that will deducted from the NAV regardless of how you invest the money.

Can you give me the link to their page that lists out the fees?

Reply

Vishal November 2, 2011 at 9:56 AM

3. If all your mutual fund services are free, how do you make money? What is your revenue?
In the case of mutual funds, our source of revenue would be the so-called ‘trail fees’. This is not something that we charge our investors explicitly. These are paid out of the annual fund management fees that every mutual fund already charges.

https://www.fundsindia.com/content/jsp/corporate/faq.do

Reply

Vishal November 2, 2011 at 11:56 AM
Manshu November 2, 2011 at 9:14 PM

Hmm this was a long time coming – entry load of 1.5% or less as I can see it – add that to the other cost.

Reply

Manshu November 2, 2011 at 9:18 PM

Thank you Vishal – let me look at this some more and understand these charges more thoroughly.

Reply

Vishal November 3, 2011 at 6:09 PM
Manshu November 15, 2011 at 2:00 AM

Vishal – I looked at this some more and as of now I’m not satisfied that I can do a good comparison between the two sites because I feel that the difference in price is negligible while the real difference is in the level of service offered and I have no way of gauging that right now.

Reply

Arun Satish November 1, 2011 at 5:04 PM

Hi Manshu,

Why did the Indian Govt give freedom to the oil companies to decide their price?

Regards
Arun Satish

Reply

Manshu November 2, 2011 at 4:29 AM

Well, they should allow that to happen, but haven’t allowed it fully yet. Ultimately someone has to pay for all the oil that has been consumed. There is no free lunch. The lesser role the government has to play in the economy the better it is.

Reply

M.P.Gupta November 1, 2011 at 8:30 PM

Hi,
1. Following the deregulation of savings bank interest rates,will the banks continue to give us the interest for whatever amount remains in the account for whatever number of days or will they go back to the minimum balance amount inthe account for the entire month?
2.Some banks have started charging exhorbitantly,recently, (for example,.Rs 300/- as ECS mandate for SIP of Mutual funds as charged by Corporation Bank recently)) for some services,will it continue? or will there be some relief?

Reply

Manshu November 2, 2011 at 4:27 AM

1. Whatever amount remains in the account for whatever number of days – the daily balance method.
2. Hard to say, but my sense is that this is a competitive market and you shouldn’t see a lot of this type of thing.

Reply

Nargis November 2, 2011 at 12:39 PM

Hi Manshu,
I would request you to do a post on schemes that are being offered by various companies promising high monthly return on investments. For example one co is offering Rs 1500 pm on an investment of 50000 that works out to 36% annually, which seems unrealistic. My husband is keen on investing in one of such scheme but I feel that such an investment is like a ponzi scheme and highly risky. I am unable to convince him and I hope that your post will help.
One such company city limousine was in news recently. Please see
http://www.mumbaimirror.com/index.aspx?page=article&sectid=2&contentid=20090916200909160200270091a0a1dd

Reply

Manshu November 2, 2011 at 9:08 PM

It is highly unrealistic and unsustainable. All these too good to be true stories tend to end badly, and you should try to keep him out of it or at least invest very little money. The problem however to write about this is that there isn’t any info before hand apart from the fact that they are too good to be true to show that it will end badly. One has to use common sense and see that if they can generate 36% and give that to you that means their own profit is much higher than that – maybe 40 or 50% – not even the best of companies have such high profit margins so how can this one be and even if it did why would it share their secret with others and let competitors on to such a thing?

This is more common sense kind of thing than advice Nargis and the article link you send also shows that because a lot of people are blinded by the promise of high returns and aren’t listening even now. Scary.

Reply

Manshu November 15, 2011 at 2:02 AM
raju k v November 2, 2011 at 1:03 PM

Can you please post article on sweep in accounts offered by baks. Where my saving account money will move to FD’s after reaching a level automatically.

Thank you

Reply

Manshu November 2, 2011 at 9:04 PM

That’s a good suggestion – thanks – I’ll write about it in the future.

Reply

Manshu November 15, 2011 at 2:02 AM
Shirish Beke November 2, 2011 at 4:23 PM
Manshu November 2, 2011 at 9:03 PM

Wow so many links – I’ve written the post based on my understanding, and these links may have a lot more info in them so you have to combine them and form an opinion. There is not much more than I know which I can share in another post I’m afraid.

Reply

aodhan November 3, 2011 at 3:43 AM

What would your thoughts be for an outside India investor to invest in India?
Any particular good funds with a good track record.
Looking from the outside it does seem like infrastructure, food and water projects look a good long term investment.

Reply

Manshu November 5, 2011 at 8:30 PM

Get a balanced fund or even a Nifty Index fund. I have posts on these that you can find on the site here.

http://www.onemint.com/2011/03/30/best-balanced-mutual-funds-in-india/

Reply

GEORGE XAVIER November 4, 2011 at 1:53 PM

As a invester in Indian stock market it will be great if you can please give us a post on CAGR of leading companies say the NIFTY list.

It will be a good pointer for investors specially small investors / beginners.

Eagerly look forward to hear from you.

Warm regards, ….. George

Reply

Manshu November 5, 2011 at 7:13 PM

How will that be useful information? That doesn’t make much sense to me – what will you gleam from looking at the CAGR of Nifty stock prices? You can just look at how a Nifty Index Fund did for the past few years and that will convey more or less the same information.

I won’t be making this list because I don’t see the utility in it but if you had something in mind on how this will be useful then please share that and we can discuss that. The data is in fact quite easy to get. You can get it from NSE or even Google Finance. It’s the utility that is a bit questionable in my mind.

What exactly is it that you are after?

Reply

Arun Satish November 5, 2011 at 3:48 PM

Hi Manshu,

Some facts.
Petrol in debt ridden Pakistan is 39 Rs per Litre.
Bangladesh its Rs per Litre.
Sri Lanka its 44 Rs per Litre.
In China and Vietnam its 38 Rs per Litre.
Why in India it is 71 Rs per Litre.

Regards
Arun

Reply

Manshu November 5, 2011 at 7:09 PM

I don’t know how these countries are pricing their gas, but the simple thing is that if international crude prices go up then India has to pay more for oil also and that increases the price of petrol. Government can probably reduce the taxes on oil but they have to collect that revenue from somewhere else. Brent Crude has gone up, oil company’s deficits have gone up and that has to come up from somewhere.

Reply

Anmol Gupta November 5, 2011 at 4:17 PM

why people do not compare the quality of the portfolio while comparing the return in debt funds.

Reply

Manshu November 5, 2011 at 7:05 PM

I’m afraid I don’t understand what you’re saying – can you elaborate please?

Reply

SUNIL PILANI November 8, 2011 at 7:41 PM

WHICH IS THE BEST PLACE TO INVEST RS 500 IN A SIP IN GOLD OR MUTUAL FUND AND IN WHICH COMPANY.

Reply

Manshu November 8, 2011 at 8:47 PM

There is no such thing as best place to invest.

Reply

Vijay November 16, 2011 at 11:34 AM

You are being Brutally Frank Manshu !

Reply

Manshu November 16, 2011 at 10:40 PM

It was not my intention to be brutal 🙂

However, it is a bit exasperating to encounter this “best” question repeatedly, and in most cases the original commenter doesn’t bother to respond to me so these days I’m not really all that inclined to write a long story that I have repeated several times already.

Reply

Vijay November 21, 2011 at 12:05 PM

😉
I understand !

Reply

gaurav November 9, 2011 at 9:15 AM

I want to understand the dynamics of various types fixed income mutual fund. Should we invest in it as oppose to Bank FDs. Why if yes (or no)? I understand there various types, mainly based on maturity period. In what conditions should one choose each type? When is the best time to enter into these MFs (for example, best time to enter into an equity based MFs is when market is low .. and of course I understand that we shouldn’t time the market but use SIPs instead). I also want to compare MFs against similar ETFs .. for fixed income. In the end which ones are best and why.

I know lot of questions. Thanks for your efforts.

Gaurav Jain

Reply

Manshu November 9, 2011 at 7:34 PM

I have a post on comparison between FMP and Fixed deposit here http://www.onemint.com/2011/04/19/fmp-taxation-and-fd-comparison/

I think as far as longer deposits are concerned – that article covers the topic. For the shorter deposits since savings banks now have 6% or so interest rate the lure of liquid funds is that much lesser.

I won’t write anything on timing and I have written about MFs and ETFs several times but I guess I need to write a detailed post on comparing the features of the two generically.

Thanks for your ideas.

Reply

gaurav November 10, 2011 at 9:28 AM

All of my questions are related to interest bearing (as oppose to equity investment) MFs / ETFs / FDs . I do understand difference between MF and ETF from equity perspective.. Only want to understand it when it is taking about fixed income / interest generating investments (e.g. Liquidbees).

Reply

Manshu November 10, 2011 at 8:15 PM

ETF is just a legal shell – so there is no diff b/w ETF & MF based on whether they are equity or debt – that is not really material. The material part is what they own, which when I think about it now is what you seem to be interested in.

Reply

Kish November 10, 2011 at 2:57 AM

Thank you for your blog & articles, they’re really wonderful.
Could you please throw some light on world economy, USA / Europe / Greece/Italy and where does Indian economy fit in.

Thank you,
Kishore

Reply

Manshu November 10, 2011 at 8:16 AM

Good topic suggestion – I’ll try to write about this in the coming week or the week after that. Thanks for the suggestion.

Reply

Sumeet Agrawal November 10, 2011 at 4:17 PM

How Government Borrowing Affects Liquidity in System?

Reply

Manshu November 10, 2011 at 7:58 PM

Great idea! I will write about government borrowings in the future for sure. Thanks.

Reply

Wills November 11, 2011 at 7:29 AM

I like your articles very much – they are very informative. Keep up the good work!
I have a query – please try to give a convincing answer if possible.
I invest in mutual funds by SIP only and in stocks directly. My SIP in mutual funds are for long periods – ten to fifteen years. I have read a lot on rupee cost averaging and the power of compounding but I am not convinced whether I should let a SIP in a particular MF run for so many years or book profits in between. I review my portfolio every six months. What if the SIP
ran for so many years and finally the MF performance plummets as it happened to
SBI MSFU Contra and Reliance Growth funds? I had been investing in these MFs for the past five years but feel that I should have booked profits earlier.

Reply

Manshu November 12, 2011 at 8:32 PM

I don’t have a convincing answer.

Reply

Rohit November 11, 2011 at 5:52 PM

I have few topics for Suggestion.
TOPIC :
1. Financial Liberalization- What has it really meant ?
2. Interest rate regimes across the countries.
3. Investment regimes across the countries.
4. Why service exports are increasing more than merchandise exports? What are the reasons?

Reply

Manshu November 15, 2011 at 2:17 AM

I’m afraid if I write about these topics they will be mere opinions rather than facts because that;s the nature of the questions. I think if you asked ten people why they think we are doing well in services as opposed to exports you will get ten different answers.

I don’t feel up to it to write on these topics.

Reply

SUNIL PILANI November 11, 2011 at 8:13 PM

WHAT ARE THE MERITS AND DEMERITS OF MUTUAL FUNDS? WHAT ARE THE HIDDEN CHARGES OF MUTUAL FUNDS AND HOW IT IS DIFFERENT FROM OTHER SAVINGS INSTRUMENTS?

Reply

Manshu November 15, 2011 at 2:19 AM

Here is a post on a sort of introduction to mutual funds.

http://www.onemint.com/2011/11/08/difference-between-shares-and-mutual-funds/

I’ll try to write about the rest of your suggestion in the days to come.

Reply

Mani L November 11, 2011 at 10:27 PM

Hi Manshu –

I am 30 yrs of age and a relatively new entrant to direct equity investing. I have been regular with SIP MFs. Additionally I am also diversifying across different assets.

With respect to direct equity investing, I have been trying to create a position by buying on dips and selecting large cap companies mostly. As part of my long term strategy, I am interested in buying high dividend paying stocks over the years so that I get a continuous stream of revenue going forward. However I am unable to pick or identify regular high dividend stocks of good quality. Can you pls guide me on the same?

Thanks,
Mani

Reply

Manshu November 15, 2011 at 2:22 AM

Hi Mani,

In these 2 posts you will find the highest dividend yielding companies in India from the biggest 300 companies listed. I think this should serve you well.

http://www.onemint.com/2011/09/05/dividend-yields-of-the-100-biggest-shares-in-india/

http://www.onemint.com/2011/10/05/dividend-yields-of-the-top-200-companies-in-india/

Reply

Mani L November 21, 2011 at 2:37 PM

Thanks Manshu! I will go through this list. It helped a lot. But I think that I get the answer after reading through the post.

Thanks,
Mani

Reply

Manshu November 21, 2011 at 11:24 PM

Excellent Mani – I appreciate that you took the time to leave a follow up comment. Thanks!

Reply

Shinu November 13, 2011 at 11:27 AM

Hello

Thanks for your wonderful blog. Few things i would love to learn

1. Our inflation had gone up from 5 to 10% approx, but the growth forecasts have not come down by that much ( less than 2%). Why?
2. Ratings and Risks associated with Indian Banks
3. Risk associated with mutual fund houses
4. Real estate registration & taxes in various indian states.
5. Percapita Vs Petrol price (International & National)
6. Growth history statewise
7. Growth history industrywise in sensex
8. Fiscal Deficit Vs Growth

Hope to see some info from the above if found logical. Thanks in advance.

Regards

Reply

Manshu November 15, 2011 at 2:25 AM

Inflation was already high when growth was estimated and the effect of the recession was also receding so that’s why it might feel like it hasn’t been revised as low as it should have been. In any case – I do think the GDP will be revised lower than what has been estimated.

For the other topics, I think these are good research topics for a student to go there and collect data but since I already have such a long list of topics that have immediately actionable information – I don’t think I’ll be able to tackle what you suggest.

I think the data may not be available in a few cases as well.

Reply

Avishek November 13, 2011 at 10:04 PM

Hello Sir,
Thank you for this informative blog. It is very helpful to me if you post something
about this topic.
1. FUTURE CONTRACT. (Finance)

Reply

Manshu November 15, 2011 at 12:22 AM

Sure, good idea – I’ll have a post on that in the future.

Reply

Furqan November 14, 2011 at 7:23 PM
Manshu November 15, 2011 at 12:08 AM

Good suggestion – I’ll have a post on it in the future.

Reply

Furqan November 15, 2011 at 10:46 AM
Manshu November 16, 2011 at 12:09 AM

Thanks for those links Furqan.

Reply

Karthik November 15, 2011 at 3:47 PM

Dear Manshu,

I am not sure whether we have an article about the PPF in post office saving scheme in ONEMINT. If we dont have an article can you please write about it. Also if there is an article please share the link.

Thanks.

Karthik – Chennai

Reply

Manshu November 15, 2011 at 11:57 PM

No, there isn’t one till now Karthik – that’s a good suggestion and I’ll write about it in the future.

Reply

Paresh November 16, 2011 at 12:07 AM

Money Managament Software, which manage all the investments of all the family members say users like FD in various banks, Bonds, RD, KVP, NSC etc for all members and also warn me for the interst earned in each financial year for all family members.

Is there any software like this available ?

Reply

Manshu November 16, 2011 at 12:11 AM

I don’t know about that Paresh – I assume you have seen Perfios and MProfit and are aware of what they can do?

Reply

Paresh November 27, 2011 at 8:52 PM

Manshu,

I aware abt prefios and Mprofit is not of my use.
I need desktop version, no online business.
Do you suggest something.

Reply

Manshu November 27, 2011 at 9:41 PM

No, nothing.

Reply

ganesan November 19, 2011 at 9:38 AM

I am not familiar with investing approah. Only after reading your mails regularly, iam getting to know the factors to be considered for investing. still i am in the early stages of learning.But i had been investing in some shares and mutual funds before simply on the advice of others. I have lost track and the papers which are available with me are confusing. I do not know how much i have invested and how much i have lost. can you suggest me how to read my portfolio and understand. Is there any software which guides me through this mess and enables me to approach this investment systematically.
regards
ganesan

Reply

Manshu November 21, 2011 at 11:57 PM

Hmmm this shouldn’t be all the difficult – all stocks and mutual funds are Demat right? And do you get Demat statements or you know how to check them online?

Reply

ganesan November 30, 2011 at 10:36 AM

All my investments are in de mat except one gold etf. But guide me how to access my account via internet. the statement given by the demat service provider in chennai is not clear.

Reply

Manshu November 30, 2011 at 7:38 PM

Gold ETF has to be in Demat – there’s no other way to hold it. Look at your statements and it should be there, maybe by a name that you don’t recognize. You should have a list of holdings with names in your Demat statement and that’s all you need.

I don’t think anyone other than your service provider can tell you how to access it online so call them and get their assistance. But I think your statement should enough. Just copy paste all the names here and I’ll let you know how to find their current prices.

Reply

ganesan December 1, 2011 at 10:14 AM

thank you manshu

Reply

Ashish November 21, 2011 at 1:33 AM

The concept of special interest rates on FD of a specific tenure has been here for quite some time. Ex. ICICI offers 9.25% on 390 day deposit but only 8.25% on a 391 day deposit. Is this just a way for them to get better focus on certain tenures and be able to reduce asset liability mismatch or is there something more to it?

Reply

Manshu November 21, 2011 at 11:47 PM

I’m sorry I won’t be able to write about this because I don’t know why they do this. I’ve asked a few people that I thought would know but even they weren’t able to come up with a satisfactory answer. I don’t think it’s because of the asset liability mismatch because everything close to that maturity should come up to the same high interest rate in that case.

Reply

Vijay November 21, 2011 at 12:07 PM

Could you review two products of Max New York Life at leisure viz. Life Gain Plus and Life Partner Plus?

Reply

Manshu November 21, 2011 at 11:35 PM

To be honest, I’ve never heard of these products 🙂

I’ll try to review them in the future. Right now I have 17 drafts that I’d like to get finished first 🙂

Reply

JC November 21, 2011 at 12:43 PM

it appears that the dtc might not be passed this fiscal, in that case doesn’t this mean it’s better to invest in fmp’s and other mutual fund products compared to co or bank fd’s.

Reply

Manshu November 21, 2011 at 11:34 PM

Even when DTC passes – it would just rule out double indexation – FMPs will still be eligible for indexation and will be more tax efficient.

Reply

Ramamurthy November 21, 2011 at 2:51 PM

This is about the tax liability of income received.I pay Rs 4 Lacs to my wife thro a cheque.She invests the amount in Bank FD and earns interest of Rs 36000/ in a year. As I understand my wife need not pay any tax on Rs 4 Lacs she has received nor she has to pay any tax on Rs 36000 interest she has received.Only I have to pay tax on Rs 36000 interest which she has earned.Is my assumption correct?

Reply

Manshu November 21, 2011 at 11:23 PM

That’s my understanding as well, and your wife doesn’t have any income of her own right?

Reply

Prashant Khare November 21, 2011 at 3:14 PM

Dear Sir

I am a regular reader of yours. I find them very interesting and informative. i also have a little question for you.

Can you tell the better investment between PPF and bank FDs. Also the implementation date for the increased limit for the PPF account.
One more thing, is it advisable to continue the PPF for another 5 years after completion of its tenture of 15 yrs.

Thanks & Regards

Prashant

Reply

Manshu November 21, 2011 at 11:22 PM

Better investment b/w PPF & FD depends on how soon you need the money really. With PPF it’s locked for 15 years right so even if you earn more in PPF – the fact that it’s locked for such a long period will surely come into play for a lot of people.

I will schedule this post and write about it in the future. Thanks for the suggestion.

Reply

Mani L November 24, 2011 at 3:45 PM

Hi Manshu –

It will be great idea if you can post a topic on “How to read Balance Sheets?” of companies. I understand that it might be a complex topic. Probably you can stagger it across few posts.

I went through the archives as much as I can but couldn’t find something on that topic. Pls let me know in case I missed any post on that topic.

Thanks,
Mani

Reply

Manshu November 24, 2011 at 8:36 PM

Hi Mani,
Thanks for the suggestion – that is indeed a good idea thought slightly complex and will have to be staggered as you suggest. I’ll write on it though it may take time because there’s already quite a bit of back log here.

Thanks for your suggestion.

Reply

Mani L November 26, 2011 at 7:59 AM

Thanks Manshu for considering the request. Surely I can wait until you get through the other items on your list. Meanwhile do you have any books to recommend on this topic for beginners like me?

Reply

Manshu November 27, 2011 at 9:28 PM

Any book that they use to teach finance 101 in MBAs will be a good start – I can’t quite recall what the name was of the book I used but you could pick one up that’s easily accessible to you.

I’d also recommend reading Prof. Aswath Damodaran’s website and blog to help with this. You could start that immediately and he takes real examples which makes it really interesting.

Here are the links:

http://pages.stern.nyu.edu/~adamodar/
http://aswathdamodaran.blogspot.com/

Reply

Mani L November 29, 2011 at 2:01 PM

Thanks Manshu! Appreciate your help very much!!

Reply

Manshu November 29, 2011 at 9:37 PM

Great, you’re welcome!

Reply

Shailesh Nagarkar November 25, 2011 at 9:36 AM

I would like to request you to post your views on different types of Mediclaim policies , benefits of having it in early age other than tax benefit, also expect your views to have a policy from Natiolised Insurace co. against private Insurance co.

Regards,
Shailesh

Reply

Manshu November 27, 2011 at 9:35 PM

I don’t know much about mediclaim policies so not sure how useful my post will be but I will try to write one up about it.

Reply

Mandar November 25, 2011 at 11:59 AM

Not sure if you’ve already done so before – can you publish a post on home insurance? Especially, what are the options available, what risks are included/excluded etc. Thanks in advance.

Reply

Manshu November 27, 2011 at 9:34 PM

That’s a good idea Mandar – I have no knowledge of home insurance but I think it’s time to look at some policies and learn a bit about it. I’ll try to write a post on it in the future.

Reply

chand November 26, 2011 at 9:19 AM

Portfolio for a Modern Indian

Hi Manshu,

You seem very knowledgeable about most of the Indian investment opportunities and your blog seem to attract quite a lot educated persons too. Why don’t you start a collaborative (probably first of its kind in India) model asset allocation and diversification post for an average middle class Indian?

There are so many avenues of investment but people in India still struggle to find the right balance in their asset allocation to achieve that peaceful and prosperous retirement fund after 25/30 years. Many of them don’t even know about the demons of inflation, taxation and investment costs etc.

I know one shoe does not fit all but collaboratively (with data backing up) we can find a model portfolio for a single regularly earning individual which can be extrapolated by anybody interested according to his family composition.

Given that DTC is coming in effect next year and it is going to stay for a long long time, we pretty much know the implications for various investments.

We of course wont suggest any specific investment instrument like a specific mutual fund or a stock but a general idea about how one should go about investing to get an optimum return at the start of the retirement. And since it is collaborative, with a proper disclaimer I don’t think anybody is going to hold you accountable for anything.

What do you think?

(btw, I might also start the same on my upcoming blog but wanted to use your platform)

Reply

Manshu November 27, 2011 at 9:24 PM

That’s a good idea but it’s much beyond the bandwidth I currently have and I think people will need so much customization that the time spent on constructing one is better utilized in reviewing different products. Plus I’m not too keen on collaborating with anyone right now because I like to do things on my own schedule as far as the blog is concerned.

But all the best in trying to do this with your blog.

Reply

ARC November 28, 2011 at 10:39 PM

Hi Manshu,

Thanks for the interesting and informative posts. Have one question-

I want to invest a lumpsum amount of money to generate some monthly income for my parents after their retirement. They will be in lowest tax bracket. A comparison between different available options (return%, ease of maintenance etc) will be greatly appreciated.

-ARC

Reply

Manshu November 29, 2011 at 10:00 PM

Hi ARC,

That’s a good suggestion – I can think of only two options right now – Senior Citizens Saving Scheme (Post Office) and Senior Citizens Fixed Deposits (Banks). The other options that come to mind like annuities of insurance companies or other monthly income plans don’t yield that well. Let me look at this in detail and write a post on this.

Thanks!

Reply

ARC November 29, 2011 at 10:05 PM

Thank you for taking time to reply me. I will look into details of those 2 suggestions you mentioned. What’s your opinion about regular monthly redemption of a Growth debt based mutual fund as an indirect method?

I think a detail post on this topic will be helpful for many people.

Reply

Manshu November 29, 2011 at 10:13 PM

It adds complexity and uncertainty and if the tax bracket is not high then I don’t think that’s worth it. As a matter of fact I did write FMPs in my original comment but then I deleted it because first you don’t know what return you will get and second the main lure for these instruments is that they are tax efficient but in your case that might not be a factor at all.

However, I think your idea does merit a deeper look and I’d like some time to think about it. Thanks again!

Reply

ARC November 29, 2011 at 10:26 PM

Makes complete seense. Thank you.

Reply

Ramamurthy November 30, 2011 at 2:00 PM

There is a lot of talk about GDP .Can you please do a review explaining how GDP of India is calculated , what are the activities considered in GDP,who calculates it Etc

Reply

Manshu November 30, 2011 at 7:35 PM

Yeah, that’s a good topic, especially with the news in today. Thanks for your suggestion.

Reply

Satyanarayana Kotta December 1, 2011 at 2:21 PM

Suggested Topic: How ” INFLATION” rate is calculated.

Thanks for the subject how GDP is calculated. Similarly this subject of INFLATION may be explained in simple terms. Thanks regards.

Reply

Manshu December 1, 2011 at 4:47 PM

Good suggestion – I’ll have a post on that in the future.

Reply

Subir Nag December 1, 2011 at 10:34 PM

Please explain something about the processes that are being exercised in calculating Dearness Allowances for the Salaried Class

Reply

Manshu December 3, 2011 at 2:16 AM

Dearness allowance? I don’t think I’ll be able to write about it – I don’t know anything about how that is calculated or what it entails.

Reply

justgrowmymoney December 8, 2011 at 3:09 PM
Rajesh December 6, 2011 at 10:58 AM

Which works better in Taxing saving funds segment..?

Reply

justgrowmymoney December 8, 2011 at 3:39 PM

Go for Canara Robeco/HDFC Tax savers – good returns over long durations. Just note that when DTC comes into effect in Apr 2012 ELSS will no longer be eligiblw for 80C deduction.

Reply

Manshu December 8, 2011 at 9:36 PM

Rajesh – here is a post that I did on Tax Saver mutual funds, and you can look at the list therein.

http://www.onemint.com/2011/12/07/an-update-on-elss-tax-saver-mutual-funds/

Reply

justgrowmymoney December 8, 2011 at 3:27 PM

Manshu – Wonderful brainstroming session here on newer topics. Great step! Just love your site.

Btw -what time zone do you work in? I see most FB posts very early in the India day.

Reply

Manshu December 8, 2011 at 9:36 PM

Thanks I appreciate that.

Reply

YOGESH December 12, 2011 at 2:22 PM

hi,80ccf bonds gives rebate upto 30% of invested amount with maximum limit 20000 ie
20000 for people in highest tax slab give effective return of 17% ie 6180 tax saved of 20000 and buyback option after 5 years gives 30780,
the intrest is taxable,how the maturity intrest taxed……..?

Reply

Manshu December 13, 2011 at 2:15 AM

The maturity interest is taxed the same way other interest is taxed – by adding it to your taxable income and charging it at your slab.

Reply

Suman December 12, 2011 at 6:49 PM

I am Suman. Can you please suggest me best Children Plan for my daughter future secure. My daughter age is around 1.9 years. What ever you suggest I will go with that. I wish to give best secure future for my kid.
I am a middle class family only. I want to be a best father of my child.
I am planning to pay 2000/- per month. Please suggest best plan for my kid.
1. ICICI Prudential Smart Kid New Unit Linked RP
2. Birla Sunlife Children’s Dream Plan
3. Aegon Religare star Child
4. HDFC SLIC Young Star Super
5. Kotak Headstart Future Protect
Thanks,
Suman

Reply

Manshu December 13, 2011 at 2:06 AM

Thank you for the suggestion Suman and I appreciate your sentiment – I must admit that I have never looked at any children plans ever so I really don’t know much about them. I would say that it is not necessary to buy a children’s plan to secure your child’s future. You can very well do this by investing in PPF, tax free bonds, fixed deposits and diversified funds yourself. From what I’ve seen of insurance company’s investment products – they are a bit too complicated and don’t have all that attractive returns. I can look at these products but it will probably take me very long and it might be better for you to start investments in some safe debt instruments yourself.

Reply

Suman December 12, 2011 at 6:51 PM

Can you please give me the information on Best Children Future Plans

Reply

Harinathan.K December 14, 2011 at 9:57 AM

One of my friends, a senior citizen (63) is expecting a large inflow of money (Rs.5-10 lakhs in one or more installment) within a short period of say below 3-12 Months.

He already owns a house but has income below the taxable limit of Rs.1 lakh. He has no loan liability.
He wants to know the best possible SAFEST AVENUES to preserve this amount for at least 5-7 years with NO TAX and NIL RISK.

Can you give some options / suggestions

Reply

Ramamurthy December 14, 2011 at 2:54 PM

Mr Hariharan
Senior Citizen savings scheme which gives a return of 9% pa is ideal. This can be opened in SBI or Post Office.This is safe and the returns are assured.

Reply

Manshu December 14, 2011 at 11:24 PM

But then that is taxable is it not?

Reply

Manshu December 14, 2011 at 11:36 PM

Safest avenues are bank fixed deposits, postal deposits, senior citizens scheme as Mr. Ramamurthy point out, there are issues of tax free bonds that come out and though those are slightly higher risk than these other options, they are still fairly safe.

But frankly, from what I see of the mindset of your friend – the best thing would be to stick with SBI FDs – that’s the safest thing I can think of and though they aren’t tax free – your friend may never hit the taxable limit with his earnings.

Reply

J.JAIKUMAR December 15, 2011 at 3:05 PM

I have got 50000 rs that can be unused for 6 months. Is it worth investing in liquid funds. My friends say let it be idle in savings bank because there is a short term cap.tax in liquid funds. Your guidance please.

Reply

Murali December 15, 2011 at 11:48 PM

Hi Manshu,

In the previuos budget there was mention of employers contribution into NPS can be accounted as business expenses & the employee also getting tax benefir under 80C. Has it become law, can i use it from this FY??

Reply

k.subramanian December 16, 2011 at 5:39 PM

health insurance schemes

Reply

Harinathan.K December 16, 2011 at 9:24 PM

There are thousands of institutions either employing people or form them into various groups of interest. Why they do not take group insurance policy with a benefit of at least Rs2.5 -5.0lakhs for life and Rs. 10 lakhs for Accident benefit.

Reply

Manshu December 16, 2011 at 11:08 PM

I don’t know anything about this.

Reply

Parag December 17, 2011 at 8:06 AM

Please do a post on Muthoot NCD – II
http://www.muthootsecurities.com/Muthoot-NCD.htm

Reply

Manshu December 19, 2011 at 1:45 AM

Sorry couldn’t locate their offer documents or any other source of info about the company.

Reply

Subinoy Choudhury December 19, 2011 at 10:56 PM

Please find below the details of the offer in short:
Name of the Issue : Muthoot Finance NCD – Series II
Issue Date : 22nd December,2011
Issue Size : Rs.300 Cr + Rs.300 Cr. Green Shoe Option
Period : 2, 3 and 5 years

Interest Rates
Annual Option : 13%, 13.25% and 13.25% for 2, 3 and 5 years respectively
Cumulative Option : Double in 5 ½ Years
Minimum Investment : Rs.5000 and multiples of Rs.1000 thereafter.
Closing Date : 07th January, 2012

Reply

ganesan December 17, 2011 at 1:18 PM

Dear manshu,
what is your opinion on elder pharmaceutical ltd? They have come out with FD scheme offering 12% interest.
regards
ganesan

Reply

Manshu December 19, 2011 at 1:42 AM

I have no idea about them, and I’m currently not inclined to learn more about them and write a post on their FD. That’s due to the large number of other posts that are lined up already, and the low appeal of this particular FD.

Reply

Subinoy Choudhury December 18, 2011 at 9:50 PM

Can you please cover a topic on TAN ( known as Tax Deduction Account Number) as many people are not aware of its existence.

Reply

Manshu December 19, 2011 at 1:24 AM

I’m sorry but I don’t know enough about this to write an article about it.

Reply

Subinoy Choudhury December 19, 2011 at 10:59 PM

Please find the details of the offer in short:

Name of the Issue : Muthoot Finance NCD – Series II
Issue Date : 22nd December,2011
Issue Size : Rs.300 Cr + Rs.300 Cr. Green Shoe Option
Period : 2, 3 and 5 years

Interest Rates:
Annual Option : 13%, 13.25% and 13.25% for 2, 3 and 5 years respectively
Cumulative Option : Double in 5 ½ Years
Minimum Investment : Rs.5000 and multiples of Rs.1000 thereafter.
Closing Date : 07th January, 2012

Reply

Subinoy Choudhury December 19, 2011 at 11:08 PM

Apologise so much, it got wrongly posted here instead of another place. Sorry!

Reply

Manshu December 20, 2011 at 2:06 AM

No, no, no need to apologize! This is great info and spurred me to find the document that I was looking for. The post will be up shortly – thanks a lot!

Reply

vijay veer singh December 19, 2011 at 4:07 PM

Can you give some insight on some of the worst financial world crisis in the past . Let us take Mexico crisis of 1994, East asian crisis, Hyperinflation of Germany ( 1920) , Zimbwambe etc.
This helps to see contemporary things in perspective

Reply

Manshu December 20, 2011 at 2:37 AM

That’s a good suggestion and I’ll try to write a post on it or at least link to other good posts that I find. It’s going to take some time though due to the several posts already lined up.

Thanks!

Reply

CYNTHIA December 20, 2011 at 10:23 AM

What would you suggest, going in for purchase of Muthoot NCD would be a good deal say for two year.

Reply

Manshu December 21, 2011 at 3:32 AM

For a small part of your portfolio yes – see today’s post here:

http://www.onemint.com/2011/12/20/muthoot-finance-secured-ncd-issue/

Reply

Jitendra Sachdeva December 20, 2011 at 10:53 AM

Hi Manshu,

There is a discussion going on NPS. Can we have a comparison between NPS and PPF options.

Reply

Manshu December 21, 2011 at 3:31 AM

I think people should stay away from NPS right now (unless they are in government service) – it’s a good idea that has been ruined in the implementation by government and it’s not worth your time right now.

Reply

Jitendra P.S.Solanki December 20, 2011 at 4:13 PM

How to create a retirement portfolio through equities?

Reply

Manshu December 21, 2011 at 3:27 AM

Interesting question, and I think there was a comment here earlier about creating retirement income for parents – I think these two topics lend themselves well and can be written in a post. Thanks!

Reply

Neha Sharma December 22, 2011 at 2:52 PM

What to keep in mind regarding financial planning when you are expecting a baby?
What is the correct time to start saving for baby’s education, marriage etc.?

Reply

Manshu December 23, 2011 at 4:52 AM

Hmmm, well this is certainly new and I had never thought of this topic before…I’ll try to write about it though I don’t know how well it will come out. Thanks for the suggestion!

Reply

Neha Sharma December 23, 2011 at 10:20 AM

This isn’t new, but maybe nobody asks it. Every would be parents have this burden. Especially if both are working and the female will have to quit the job, creating loss of income.

Reply

Manshu December 23, 2011 at 10:49 AM

Oh yes, I perfectly accept the need to think such a thing through and plan for it – I meant more in terms of if I am competent enough to write about this – but I will do my best.

Reply

Neha Sharma December 23, 2011 at 11:00 AM

thanks

Reply

Indian Thoughts January 4, 2012 at 2:41 PM

Yes cost of one income is gone in too high. You need to plan very carefully for it. And always have a backup plan. Circumstances change and you might have to join job before you planned.

Reply

J.JAIKUMAR December 23, 2011 at 10:08 AM

1. A post on Nidhi companies (if not done earlier) can be done.
2. I have invested in fd of unitech. Maturity amt. yet to be recd. even after a month. Pls. advise friends not to invest in this co. Pls. let me know to whom i can complain.

Reply

J.JAIKUMAR December 23, 2011 at 11:01 AM

1. A post on Nidhi companies.
2. To whom should be air our grievance if fd amount is not repaid on maturity

Reply

Subinoy Choudhury December 23, 2011 at 2:43 PM

Please file your complaint with the below link. But ensure you register yourself before you file a complaint:
http://www.consumercourt.in/fixed-deposit/

Reply

Manshu December 23, 2011 at 10:01 PM

J – I’m afraid I don’t know much about Nidhi companies to be able to write about them. Sorry.

Reply

Vineet G. December 24, 2011 at 1:01 PM

I want to start MF,SIP but in my city there is no facility to deposit form in relevent bank directly. I called one agent and discused,he told that he would deposit my form in CAMP office ,this is also privet, my query are-

1-How much mony will be dedected from my MF for agent and CAMP office and when either yearly or on every sip?
2-How to diposit MF form direct to company (Bank)?

… kind regards
Vineet Gour
7702243168

Reply

Ramamurthy December 24, 2011 at 2:23 PM

Manshu
Can you please do a post on “What are the sources available to Reserve Bank of India to buy US dollars to ensure the apprciation of Rupee via a vis Dollar and the mechanism RBI adopts to do this job”.This is of topical interest .

Reply

Kartavi Dave December 25, 2011 at 12:52 PM

SBI TAX ADVANTAGE FUND, close ended 10 yrs tax saving fund. Mansh, pl analyse and post.

Reply

Srinivas December 25, 2011 at 1:19 PM

Hi Manshu:
Seasons Greetings
Wish this site carries out in series, some articles, tools, or some advise /discussion on Financial Planning for people at different age groups: 20-30; 30-40, 40+ and also on retirement planning
Best
Srinivas

Reply

sudhir December 25, 2011 at 11:38 PM

BEST BROKERAGE OPTIONS IN INDIA in terms of accuracy,smooth transaction for working class?

Reply

Manshu December 27, 2011 at 3:11 AM

I have tried doing this post – but found that I don’t have enough resources to do this so won’t be able to write that.

Reply

Ramamurthy December 26, 2011 at 7:11 AM

Manshu
Can you please do a post on “What are the sources available to RBI to bring up the rupee visa vis US Dollar and mechanism RBI adopts to do this job”.This is of topical interest as Re has steeply depreciated right now and is severely affecting Indian economy which imports more than it exports.
Thank You

Reply

Manshu December 27, 2011 at 3:10 AM

Sure, I’ll try to write that shortly.

Reply

AG December 26, 2011 at 4:28 PM

Hi Manshu,

Firstly, thanks for this very informative website.

My query is : would it be a good idea to invest in any of the NCDs launched a few months back, which is trading at a discount to its list price? Please advise. (Example, I invested in Muthoot finance’s August’11 NCD for 5 years @ 12.25% and the same is trading now at Rs. 960. So buying an NCD now which is worth Rs. 1000 at Rs 960 and 12.25 % interest should not be a bad idea? )
If so, could you please suggest some good options?

Please advise.
Thanks and best wishes for 2012,
Kind regards,
AG

Reply

Manshu December 27, 2011 at 3:08 AM

Hi AG,

I think these are good options if you split your money and not take more than 5% or so exposure to just one company. If you already have Muthoot then look at something else – NCDs come all the time these days, and that way if one company goes under you don’t risk a large part of your money. The yield on these products is high for a reason and you don’t want to find yourself on the wrong side of that trade.

Happy new year 2012.

Reply

Inderdeep Sahney December 28, 2011 at 12:58 AM

can you post a comment on Rational for Rupee depreciating against dollor

Reply

Manshu December 29, 2011 at 12:06 AM

I have done a post about this some time ago and I don’t have anything to add to it at the time being. Here is the post from two months ago:

http://www.onemint.com/2011/10/03/why-is-the-rupee-falling/

Reply

Ramamurthy December 28, 2011 at 10:19 AM

Manshu
I made a comment under your “Suggest a Topic”requesting you to do a post on the mechanics adopted by the RBI to appreciate the Re vis a vis US Dollar about 2 days back. It also appeared under this column as a comment. Suddenly yesterday my comment has disappeard.This is the 2nd or 3rd time this has happened. Does this mean you dont want to this post? If so, I feel courtesy requires you tell this,please.

Reply

Manshu December 28, 2011 at 6:09 PM

No, no, no, why would I delete comments? That’s preposterous. And your comments haven’t disappeared either – you are just not able to find it. Here is a link to both your older comments:

http://www.onemint.com/suggest-a-topic/comment-page-5/#comment-197161
http://www.onemint.com/suggest-a-topic/comment-page-5/#comment-197355

Just search for your name on the site and you will find your comments. You are just not able to locate them – that’s all – they don’t disappear. You had left such a comment on another post also and I had asked you to send me the email notification that you should’ve got. I didn’t receive any email from you.

Reply

Manshu December 28, 2011 at 6:13 PM

Another thing – when you leave a comment – it should display immediately. So at that time – go to the date and time next to it – right click it and save that link. Now, you can use that link to directly go to your comment any time instead of searching for it later on. I think this should solve your problem of disappearing comments.

Reply

Amudhu December 28, 2011 at 11:22 AM

Manshu, Can you pls give your detail review about the plan HDFC SL Pro Growth Super II. I am thinking to go for it. Pls advise.

Reply

Manshu December 29, 2011 at 12:03 AM

I normally don’t write about insurance + investment product because I believe it’s best to keep them separate. The same is true for this product as well and I won’t be reviewing it.

Reply

premjit January 28, 2012 at 7:06 PM

Why dont u write an article that clearly underlines the uselessness of a conventional investment+insurance plans. I can see thousands still going for plans that offers 2% returns and half the requirement of insurance! Please suggest ways(if u can) to roll out and educate people about this. I wonder if why regulators dont have a moral responsibilty on this matter!!!
I can see many of my friends still going for Jeevan Bhimas and Bhima Niveshs and the likes when they can cover themselves with a good term plan!

Reply

Kartavi Dave December 31, 2011 at 6:53 PM

Happy New Year MANSHU,
It always nice to read from you.
Can u please analyse and post about — IIFL Real estate Fund (Series1, A Units).
Happy upcoming year, once again.

Reply

Ram January 2, 2012 at 9:46 AM

hi, please gather details of NRI remittance increasing or decreasing…past few years…

Reply

Manshu January 2, 2012 at 11:19 PM

That will be interesting but I’m not sure how I can get that data – I’ve never looked at it but let me see if the RBI website has something or if it’s present somewhere else. If it’s there I’ll be sure to write about it.

Reply

Sam Durai January 3, 2012 at 5:14 PM

Please compare the RDs available in various bank and suggest a best one for an average middle income family.

Reply

Aditya January 5, 2012 at 10:54 AM

Hi Manshu, I’ve been reading your extremely informative and well-written blog for more than a year. One thing I think you haven’t discussed much is retirement planning and pension plans. Many financial organizations have pension plan schemes, with or without life insurance, and often with options to adjust the debt-equity ratios. Any recommendations or thoughts on these schemes? Any thoughts on retirement planning in general?

Reply

Manshu January 5, 2012 at 9:09 PM

Hi Aditya – Thanks!

I have written a bit about retirement, not as much as some of the other topics but there is a section with about 15 or so posts. You can check them out here:

http://www.onemint.com/category/personal-finance/retirement-planning/

In looking at the products, I’ve felt that the pure retirement products / annuities aren’t very attractive, it’s better to build a portfolio yourself. That will be more cost efficient and you will have more control over it.

Reply

Samir Nigam January 9, 2012 at 1:43 PM

Manshu,
Can you write a post on “DTC and saving options”. This would be a great information for every person.

Regards,
Samir Nigam.

Reply

Manshu January 9, 2012 at 9:17 PM

This is a great topic Samir and I do write about DTC related things from time to time – there isn’t enough clarity yet to say which options will be better to invest and once that clarity is there – I’ll do a post on that as well.

Reply

Natti January 9, 2012 at 4:34 PM

Risks of investing with fixed deposits in cooperative banks

Reply

Ninu January 11, 2012 at 12:34 PM

Hey Manshu,
Can we also have some study based on automation of Technical Analysis/Fundamentals/Quants etc. HFT strategies consists basically of Arbitrage but there are various brokers who after understanding that Arbitrage is not making money, are entering Non-HFT area of Algo Trading.

Reply

Manshu January 12, 2012 at 2:50 AM

This is actually the first time I’ve heard about this and I think I won’t be able to write about this in the near future because I don’t know enough about it. In a few months maybe….

Reply

ravi January 12, 2012 at 11:41 PM

nhai tax free bond allotement status ,and listing date of it on bse ,nse<?

Reply

ravi January 12, 2012 at 11:42 PM

nhai band allotement status ?

Reply

Saberayoub February 3, 2012 at 11:40 PM

[…] In the list of tax snavig long term infrastructure bonds under section 80CCF, the first one which was launched in year 2011-12 was IFCI Infrastructure Bond. […]

Reply

Rishoo Singh January 13, 2012 at 1:43 AM

I have a query related to EPF withdrawal.
If I have worked for a company for 4 years and 6 months and resign after that; how much tax do I have to pay if I withdraw the EPF amount.

If I wait for another 6 months; which means that my EPF account would be 5 years old; would the EPF withdrawal be taxable?

If I get it transferred to my new company EPF account and work there for another 1 year and resign after that would the amount be taxable if I withdraw it and how much of tax would be required to be paid?

Thanks in advance!

Reply

Manshu January 14, 2012 at 9:54 PM

Can you please leave your comment on this post about provident funds please?

http://www.onemint.com/2011/03/14/tax-on-provident-fund-withdrawal/

My friend Gurpreet has answered many pf related questions there and you might even find your answer in the comments there already or in time he will leave a response to you. Thanks!

Reply

prasad January 13, 2012 at 5:34 PM

Give a case study/ format with arbitary figs. for filing Tax-Returns by a Retiree,past 60 years——-having FD/MIS of PO/NSC /PPF DEPOSIT /M.F. INCOME FROM DIVIDEND AND SELL /SHARE INVESTMENT /ELSS INVESTMENT/BANK SB A/C etc. etc.Also what is the max. slab of income for exemption of Tax Return Filing for people between 61 and 65 as also above 65 ?

Reply

Manshu January 14, 2012 at 9:37 PM

I’m sorry I don’t know enough about the process to be able to write an article on that.

Reply

harinee January 14, 2012 at 8:19 PM

Hi
I have 2 topics on which would request a post.
First: How do Indians apply for Facebook IPO? Is it possible to apply in the first place?
Two: I have shares of a LSE-listed company allocated as part of employee program. How does one redeem such shares? While my company has tie-up with natwest, I am just wondering how will I redeem these shares once I change jobs. Right now the share price is so-so but it will go up and the pound exchange rate also will help. So I want to keep these for long term irresepective of my job status

Reply

Manshu January 14, 2012 at 9:34 PM

I don’t think Indians can apply for the FB IPO. The way IPOs work in the US is different from how they work in India. Ordinary people can’t apply for the IPO stock. The banks sell the stock first to their clients which are large institutions and when they start trading in the market – that’s when everyone else gets to buy them. So, I don’t think there is any chance that Indian investors can participate in the IPO.

For the second part – I’m not sure about that – I’ll see if I can find any info on that and will write if I find something.

Reply

hpesoj January 16, 2012 at 7:39 AM

Would like to know about the new Transaction Charge of Rs 100 levied on every purchase in MFs. When I sell, will this be included in the purchase cost, or is it treated separately.

Reply

Manshu January 16, 2012 at 10:08 PM

I’ll look it up and write about it – thanks for the suggestion.

Reply

Beena January 16, 2012 at 12:08 PM

Hi!!!

Is this right time to buy Spicejet share before FDI announcement in avition sector.

Reply

Manshu January 16, 2012 at 9:52 PM

I don’t know about Spice Jet but in general it’s not a good idea to buy shares based on announcements that have taken place a few days ago. Traders and other players who are interested in and knowledgeable about this space would already have bought the shares before and immediately after the announcement. I see it hard for the small guys to make money this way.

Reply

Kisore January 17, 2012 at 2:12 PM

IMF and its role….

Reply

Tamilkumaran January 19, 2012 at 3:14 AM

Can you pls explain about preferential shares, what are they?, difference between Normal stock and this?. Why is the price too low compared to normal stock?. Are they entitled to pay fixed Interest/dividend?.. The reason why I ask is, I had 800 common stocks of Ispat limited but few years back, they converted 440 shares to preferential shares and the rest to common stock. I don’t have any clue of this. Appreciate your response. Thanks

Reply

Manshu January 21, 2012 at 8:29 PM

I’ll write a post on this in the future – thanks for the idea!

Reply

Ashok January 19, 2012 at 7:49 PM

Saw an ad in the ‘MoneyLife’ magazine of a product called “Future Capital Flexi Gold”. The ad doesn’t give out much details. Just that you can invest as less as 1 gram per month, and can sell in an “exchange” (doesn’t specify which). Also says that the “units” can be converted into physical coins/bars/jewellery. This doesn’t seem to be an ETF.

Surprisingly, though the ad asks us to visit http://www.futurecapital.in for more details, this site doesn’t have anything about this product.

Know anything??

Reply

Manshu January 20, 2012 at 3:27 AM

Never heard of it, and like you I couldn’t find any details either.

Reply

lalit January 21, 2012 at 4:51 PM

hi,,,,,,,,
Can you tell something about insurance.
whether LIC of India is better then other private player.
for both Tradition and Ulip plan.

Reply

Manshu January 21, 2012 at 8:04 PM

These two are good posts to start.
http://www.onemint.com/2011/03/23/comparing-term-insurance-claim-rejections/
http://www.onemint.com/2011/03/08/sample-term-insurance-quotes-from-various-insurance-companies/

The first one talks about what percentage of claims are paid out and the second one compares some quotes from private and public insurers. The articles and the comments section should be a good read and a good starting point.

Reply

Umesh January 21, 2012 at 6:39 PM

Hi,

I have a query, I bought Muthuth NCD in secondary market, at a price of Rs 800, face value of this is Rs 1000, Now its trading below my bought price, what will happen to my interest and my maturity amount. will i get Rs 1000 per bond?

Thanks
Umesh

Reply

Manshu January 21, 2012 at 7:41 PM

Your interest and maturity amount will remain the same. There will be no effect on that as long as you hold the NCD. Those will only get affected if the company falls into trouble or something like that. The market price has no impact on the interest payments and redemption.

Reply

shraddha January 25, 2012 at 2:26 PM
Pranav January 25, 2012 at 2:37 PM

Planning under 80C:
What should be ideal idea to invest under 80C.. PPF, NSC, Insurance and other..? Give your ideal feedback to better plan your investment under 80C with good returns and lower risk;

Reply

Manshu January 25, 2012 at 9:00 PM

Perhaps a little late, but let me think about it and write about it sometime in the future.

Reply

Durgesh Palsokar January 25, 2012 at 5:08 PM

Hi, Does the dividend earned from ELSS is tabulated in taxable income for that FY ? Durgesh

Reply

Manshu January 25, 2012 at 8:59 PM

Dividends from equity mutual funds are exempt so you don’t have to pay tax on ELSS dividends.

Reply

Anmol January 25, 2012 at 6:31 PM

Hi,

These days because of handsome return in debt fund many advisors are coming to sell debt funds. kindly suggest going forward when the interest rate scenario is going to be down side what are the good funds and what are the parameters to evaluate to these funds. kindly advise me some good bond funds since my target is not more than 10%

Reply

Kamlesh January 26, 2012 at 9:44 PM

How about an article on historical data analysis of Annual Inflation Rate and 1 Year SBI FD rates to check how long (and during what economic cycles) the real interest rates have been negative in India

Reply

rakesh thakur January 27, 2012 at 10:15 AM

Now since the Govt has made Hallmarking for all gold jewellery compulsary, pls. post an article on how does this whole process go about and what we as a lay man should look before buying the gold ornaments so that we are sure about the quality. and pls do include whether the hallmarking is on sample basis or 100% hallmarking.

Thanks
Rakesh thakur

Reply

Manshu January 27, 2012 at 11:44 PM

I’m not familiar with this process and very little about gold hallmarking so I don’t know how much I will be able to write on that but I can give it a try.

Reply

rakesh thakur January 27, 2012 at 10:24 AM

how to ensure the purity of gold ornaments we buy. how to check if the ornament we buy is truly hallmarked or not. now the govt has made hallmarking mandatory for all gold jewellary.

Reply

Ankit Gupta January 27, 2012 at 12:06 PM

Hi,

I have just come across LIC Policy “Jeevan Saral” which irrespective of Age as a factor would give you handsome return

Eg: A monthly investment of 2000 rs for a period of 30 years will give you an sum of Rs. 45.13 lacs at the end of 30 years thats like return of 13% CAGR.

The policy is for a maximum period of 35years when returns turns out to be 13.18% CAGR…..

Also you get insurance of 5lacs for lifetime which is add-on…..

Is this for real?????? and if yes how is it possible to get such high return on sustainable basis for such long time….will LIC usrvive this????

Reply

Manshu January 27, 2012 at 11:40 PM

I share your skepticism – let me take a look at this in detail and write about it.

Reply

Manshu February 7, 2012 at 8:46 AM

I didn’t realize that I had written about this earlier….Here is the link. The benefits on LIC’s illustration page are a lot more conservative and realistic than what you write here. I think those are the correct ones.

http://www.onemint.com/2011/11/23/lic-jeevan-saral-review/

Reply

Khan Ziyauddin January 27, 2012 at 12:39 PM

Please explain the term “Earning per share”.

Reply

Manshu January 27, 2012 at 11:39 PM

Okay, I’ll have a post on that soon.

Reply

ganesan January 28, 2012 at 10:14 AM

can you provide us some addresses of certified financial planners in chennai. ganesan

Reply

Aslam Nawab January 28, 2012 at 4:04 PM

We are a Green Energy Company located in Bangalore, we were interested to have distributors for our products in Biogas and one International company that we market in India, Energy Saving Device with a patented technology. Our existing clients are Major software companies, Hotels, Restaurants, Schools, Malls, Fast food joints, Retail outlets, petrol pumps etc.

Companies with good knowledge in Energy Business having dedicated team to back the product would be associated with. Areas open for marketing is East, Central and North India.

Kindly send company profile at aslam@azgreenenergy.in

Reply

ankita mundhada January 28, 2012 at 10:22 PM

Hi manshu…iv read that when there is over-subcription in the retail category…there is proportional allotment…could you explain with an example how it actually works…

Reply

Sanjana January 29, 2012 at 7:02 PM

Hello,

1. As these days scams and frauds are increasing as population I would suggest you to inform the readers about good sites which actually pay.

2. And also Please do give info. about how to select a particular company to invest in?

3. Whats the process? Where to get registered to buy shares? each and every info.

4. Can you tell me how to earn revenues by owning a website? Whats the process? And so on.

Reply

Srinivas K January 30, 2012 at 6:00 AM

Hi, Could you pls post expert opinion/advice about LIC Jeevan Anand as an investment and life cover option.

Reply

harinee February 1, 2012 at 1:26 PM

Just read about NSC XI offering 8.7% interest. Not sure if you have covered this?

Reply

sumit February 1, 2012 at 11:45 PM

how it cause of inflation if goverment print money to purchase things from other counteries then why a country face shortage of money

Reply

Aditya February 2, 2012 at 2:32 PM

I received a call from someone from Motilal Oswal telling me that they have launched a new product called ‘Nifty positional trading system with Hedging’ which is an automated trading system which has given over 25% returns in last 4 months and works like PMS investing in futures and options only. I have no knowledge about derivatives. can you pls review this product, how does it work and is it safe to invest in it. I was told the minimum investment in nifty future is 60000 (30k margin & 30k mtm) and the charges would be the normal brokerage.
surprisingly Motilal oswal’s website has no details about this product.

Reply

surjya February 3, 2012 at 7:07 PM

in nps can a corporate choose both type of fund manager at a time,i.e govt line lic,sbi,uti and the fund manager of all citizenship

Reply

Mohan February 4, 2012 at 8:29 PM

Dear Manshu,

I read your blog before taking any financial decision and i thank you a lot as your blog has really educated me regarding the various financial products. Thanks a lot for your untiring work . However, of late, i have been thinking and worked out a way / plan for the financial benefits which are likely to be received against my policies , god forbid, if something happens to me during the tenure of these policies. I want some one/ some trusted agency/ to handle any benefits received from my policies and benefits given by my employer/ in a particular manner . Are there any such agencies? if not, what steps should i take to ensure that the funds received are deployed gainfully in fd’s/ MF’s etc, as my wife is a housewife and is not very knowledgable about financial products and she may have to take care of my 2 kids and my old mother.

Reply

Manshu February 7, 2012 at 8:47 AM

Thank you for your comment Mohan – here is the post with some excellent comments on it already.

http://www.onemint.com/2012/02/06/thoughts-on-investing-life-insurance-proceeds/

Reply

J. Sivarajan February 5, 2012 at 7:38 AM

Your postings are very interesting, informative and practical. Can you please post an article on “How a retail investor can buy bonds, especially tax free bonds in secondary market in India?”

Thanks and Best Regards,
Shivtaj

Reply

Sandeep February 5, 2012 at 4:09 PM

Hi,

I just came across Religare iTerm Plan. They have rename it to Religare (Medical) iTerm plan, where the maximum policy term is 57 years (Means if an individual has taken the policy at the age of 18, it will cover him till 75 years.) or till one gets 75 year old.

Looks good to me.
Is it worth buying.

Thanks
Sandeep

Reply

premjit February 6, 2012 at 1:30 PM

Sandeep,
I have taken this Religare iterm plan this year(before they revised). This looks good to me. The procedure was simple and all well managed.
(Religare’s low prices carried me away 🙂 )However after i took this plan,came to know that AVIVA offers this still cheap!
My openion – Religare is good and cheap ( Ignore the low claim approval record people talk about as long as you declare your details correctly).How ever consider Aviva too……

Manshu – Why dont u pay me for my tips 🙂 hahaha joking!

Reply

Sandeep February 7, 2012 at 10:43 AM

I am a bit concerned about the new plan as it has the maximum coverage time. Usually other term plan providers cover you for 30-35 years. But in the Religare term plan, the maximum coverage time is till you acquire 75 years. Consider a person who 30 as of now and he plans to take this policy, so he will be covered for 45 years. That sounds too good to be true.

Reply

Shenoy February 7, 2012 at 3:36 PM

Dear Sir,
I have an account with IDBI Bank. My account number is 2085404000010680 comprising
16 digits .Proof of account and cancelled copy of the cheque is given to my DP who has promptly made the changes in bank Mandate and confirmed. The DP has all the details like MICR/ECS Code etc
In the RBI ECS forms 15 digit account number are entered.Now ECS credits donot get credited to my accounts from dividends on shares,interest on bonds etc.Bank says contact DP,
DP says contact the company.Mail sent to IDBI Banks customer care says we will revert back to you.What do I do? ( account no is changed for security)

Reply

raju February 8, 2012 at 3:01 AM

impact of FII on BSE SENSEX

Reply

Niraj Kumar February 9, 2012 at 3:40 PM

Hi,
I am regular reader of your posting.
I am looking for piece of information : –
Help to know, If I take tax saving fixed deposite in the name of my wife, will I get tax exemption on the amount.

Regards
Niraj Kumar
New Delhi

Reply

Chidanand February 21, 2012 at 10:10 PM

No. You will not get if you are assessed as individual

Reply

Rajesh Mishra February 10, 2012 at 8:09 PM

Hello
This is Rajesh Mishra from Delhi. Would anyone let me understand all about share market from orientation to till now and how company get listed on stock exchange all thing suppose you are going to tell a fresher..
I keen to know that …

Reply

Chidanand February 21, 2012 at 10:13 PM

You are asking a degree course on your computer. It is a vast subject, either you will learn it as student and study or by experience of long term of many years.

Reply

Piyush Birla February 13, 2012 at 5:25 PM

Financial Planning for Newly Married Couples.
Have seen articles on this topic, but nothing that quite helps me in a guided fashion.

Reply

Chidanand February 21, 2012 at 10:16 PM

First save money wherever possible. To start with put your money in FDs of Nationalized bank. About 20% in a good mutual fund(Make reasearch). 10% purchase 24K gold (not jewels) and keep it in a bank locker. Look out for some one time premium of LIC policies.
AND learn by saving.

Reply

Santhosh February 14, 2012 at 7:14 PM

1) Why arent index funds doing good in india. And why is it they are not given much attention by the investment sites and even fund houses.The expense ratio is around 1 [ greater than 1 sometimes ] and tracking error is also large.I feel the investment help sites have a bias towards actively managed funds

2)Equity diversification beyond indian market – No good fund yet.

Reply

justgrowmymoney February 16, 2012 at 1:02 PM

Santhosh – I am pretty sure you are comparing this vis-a-vis the developed markets – especially – the US where Index funds have low expenses and minimal tracking error and where they are a rage.

Indian economy can be compared to that of the state of the US economy in the late 1950s where rapid infrastructure developments lead to massive economic growth. We have decades of economic (and stock market) growth in the making. Chances are actively managed funds will outperform the index for the next 1-2 decades. When we become a matured economy then the alpha on the actively managed funds will fall considerably and we will all be debating on the best index funds really!

It is true Equity diversification beyond Indian market is not available. There are few index ETFs like DJIA, Hangseng etc traded in NSE but just that. Some funds like HSBC Brazil exist but again this in turn does not do any specific stock picking – they buy international funds in their portfolio thereby increasing costs for the investor!

Reply

krishna February 14, 2012 at 7:54 PM

dear sir
I am TECHIE & i am preparing myself to start INVESTING in stocks. google revealed your post & i really admire your work.It will be more helpful if there is a post describing investing for novices like me.

Regards,
KK

Reply

justgrowmymoney February 16, 2012 at 1:04 PM

Krishna – Even a novice can understand a book like “One up on the Wall Sreet” by Peter Lynch. Grab a copy – it makes light reading for a week -and you should be done. Do you want to come back and then discuss more?

Reply

krishna February 16, 2012 at 5:48 PM

thanks for d great advice, right now i m into his other book “learn to earn”
I will definetly come back with basics strong

Reply

Chidanand February 21, 2012 at 10:19 PM

Please jump into stock market. Your money in the stocks must be contained to 20% of your investment. That’s it and that’s it only.

Reply

Chidanand February 21, 2012 at 10:19 PM

Please dont jump into stock market. Your money in the stocks must be contained to 20% of your investment. That’s it and that’s it only.

Reply

krishna February 14, 2012 at 8:15 PM

Dear Sir,
Your are really doing a Fine job, explaining stocks & shares to novices like me. It will be much helpful if you can give a beginners introduction to investing in STOCKS.

Reply

Ecky Sharma February 15, 2012 at 6:27 PM

Gold backed currency a boon for the world compared to FIAT currency ( A boon to US)

Reply

Chidanand February 21, 2012 at 10:21 PM

Gold backed money is HISTORY. This will not happen. Death awaits for those leader who dare to implement it. Please search google for Gaddaffi’s plan on this and his death.

Reply

Karthik February 16, 2012 at 10:10 PM

Can you write about the coming MCX stock exchange IPO on Feb 22?

Reply

karthik February 17, 2012 at 1:01 PM

Can you please write about the upcoming IPO of MCX on Feb 22.

Reply

Althaf February 18, 2012 at 12:36 PM

Islamic Investment options (Shariah compliant) available in India.

Reply

Hari February 19, 2012 at 4:12 AM

A detailed analysis on the non life insurance sector would be helpful. If possible you can make it into 2 detailed topics one the infamous health insurance and the other insurance other non-life insurance like properties, etc.

Things that impact the cost analysis decision on these could be pretty handy to prepare and decide.

Regards.

Reply

Sunita February 20, 2012 at 8:57 AM

MCX IPO…Could you please evaluate it?

Reply

PREM SINGAL February 21, 2012 at 11:22 AM

There are lot of persons nowadays who are thinking about early retirement or are burnt out by 50/55 yrs but are not clear on how much money is required for the retirement years.So wud like to have comments on this newage requirement.

Reply

Shenoy February 21, 2012 at 1:44 PM

Recently I changed the bank Mandate with my DP from ICICI Bank to IDBI Bank.
ICICI Bank Uses 12 Digit account number IDBI Bank uses 16 digit account Number.
RBI uses 15 digit number for NECS credit of of dividends, Interest on bonds etc.
since last three months all the ECS remittance has been rejected.The DP says contact Bank,
Bank tells contact DP/Registrar and so on .RBI should have made it mandatory for every bank to use 15 digit account number to suit ECS credit.I used to get ecs credits to ICICI Bank promptly
Kindly help me in getting credit. How to find out which company has declared dividend

Reply

Prasad P February 21, 2012 at 4:04 PM

Hi,
Could you do a post on ‘Stop Loss orders’ with few examples? Why there are not ‘Book profit orders’ then? Aren’t those useful to?

Thanks,

Reply

dubakkur February 22, 2012 at 9:26 AM

Hi,

Can you talk about how to choose health insurance

1) for husband + wife + kids
2) for parents and in-laws? (60) ?

Reply

Ramesh February 25, 2012 at 12:17 PM

Most of the topics discussed here are very useful and overflow with hard research’ and still very lucid to read. I would like to request you to add another topic related to following subject.
Transferring money from abroad to India is easy but sending money abroad is little complicated. Coould you write a topic, keeping in mind various avenues available, their nusances, efficiency and comparative cost. Also what is the exact cost of transfer of a US Dollers to INR and again transfer back to US Dollors in an NRE Account. keeping the Dollor
rupee exchange rate constant. Apart from the commission and service charge, do the banks also dupe us by using higher/lower exchange rates than actual exchange rates.

Reply

Guru February 25, 2012 at 1:51 PM

I know that Interest from NSC/ Bank FDs/Savings accounts are taxable. I’ve a doubt here. If I invest the interest income from the above mentioned accounts in Share market/tax saving instruments, then also will it (i.e. Interest income) be taxable ??

Thanking you in advance.

Reply

P thirani February 26, 2012 at 6:44 PM

I have been reading your posts in depth and as a professional the biggest problem I face is asking the right questions to my financial planer. I take my portfolio to him he asks some questions and makes some suggestions. A year down the lane…. same story. It would be of great help if you could tell what to ask a planer and how to asses his advice.
I think this should help lot of us.
Thanks

Reply

Ams February 28, 2012 at 8:57 AM

Manshu,
Can you provide some highlights about the upcoming budget which are expected and how they would affect an individual ?

Thanks,
Ams

Reply

Jagdish Shetty February 29, 2012 at 4:03 AM

As am poor in the economics part, wanted to know few things about currency valuations…..many of my relatives are working in middle east (OMAN, UAE) because of the higher currency valuations….every where theres a buzz that india is shining and we recently overtaken Japan in terms of economic power..but if its so why is our currency lower compared to the middle east…

I would be really privileged , if you could please explain this to me or else if at all if you had published any article on the same …can I get the link for the same pls?

Thanks in advance….

Reply

kriti t February 29, 2012 at 1:23 PM

Hi ,
Your blog has a wonderful way which is good to go for layman and experts on subjects and shares views in one of most unbiased way i have seen so far.Gr8 job keep going.
Wanted to know what
a) Should one go for SIP in Gold MF or lum sum
b) What makes Gold ETF’s /MF better investments than buying real gold coin in hands

Reply

Aashish Jain February 29, 2012 at 3:30 PM

Buying Health Insurance

Reply

Dr ML Bhatia March 3, 2012 at 5:08 PM

Pl. let me know the following aspects of CGA (capitals gain a/c):
I have sold a self owned only house recently. I plan using the capital gains to buy a flat for my use. The flat is being built by a reputed builder and will be ready in 3 years time. I am given to understand that I have to open a CGA, capital gain a/c with a public sector bank.
1. Are there any problems in its operation for paying a flat builder at regular interval.
2. I am given to understand that interest accrued every year is taxed and has to be paid from other resources of the holder of the CGA. If so this seems to be a draconian measure as the holder may not have adequate other income.
3. It is understandable that the capitals gain is paid on the surplus left over (capital gain-cost of property acquired ), however the interest accrued has already been taxed, does one have to pay capital gain tax on this as well? If so I shall understand why one should be dishonest.
Shall be grateful for clarification.

Reply

Umesh March 4, 2012 at 12:03 PM

A very good piece of information is available in Mint dtd. 2.3.12 on page no. 16 on Capital Gain Tax. The link is
http://epaper.livemint.com/Default.aspx?selpg=3829&selDt=03/02/2012&BMode=100
and go to page 16 .

Thanks

Reply

SowmyaNarayan March 4, 2012 at 1:18 PM

One topic of interest could be the difference between BSE and NSE. It appears that we can buy shares from one and sell in the other so consequently arbitrage can happen. But how do companies and the exchanges manage the fact that shares outstanding in one exchange might be traded in another? I presume NSE and BSE must have an inter-exchange settlement facility? Is this unique to only these two exchanges or do we have examples of this elsewhere?

Reply

Aashish March 5, 2012 at 9:14 AM

I think it is fairly clear how, why and when FMPs are better than Bank Fixed Deposits. Can we please have an article on how to go about choosing the right fund house or scheme?

Reply

Manshu March 5, 2012 at 5:53 PM

I don’t think there is much science when it comes to choosing FMPs, I’ll try to research this topic and see if there is something I can come up with.

Reply

Velusamy March 5, 2012 at 10:17 AM

Hi,

There is no article written on creating HUF to save tax. May be you could cover, what is HUF (A simple reference http://www.charteredclub.com/how-to-save-taxes-by-forming-huf/) and very importantly, how to create a HUF which is not clearly explained in many blogs and articles.

May be this is the right time as people will be looking for some alternate ways to save few bugs on tax.

I am planing to start the process soon, and will update you with details I have.

Cheers
Velu

Reply

Manshu March 5, 2012 at 5:52 PM

I’m not familiar with this process Velu so I’m not sure how to go about writing an article on this. I think till I do this myself or find someone who has done this I will have to wait to write this post. If you’re undergoing this process and want to give some inputs then you’re welcome. Thanks!

Reply

Deepak Jain March 5, 2012 at 10:51 AM

Hi,
I am a regular reader of all the posts on One Mint and thanks to all concern for such a nice knowledgeable information.

I am on the verge of switching my job from an Indian Company to a Foreign Company based in India (its a work from home job). I will get my salary paid in USD. I was told by my friends that I can open NRE account in bank to get the salary in USD and can avoid income tax (Indian) since I will get my salary in USD. Also only on the interest pat I need to pay the income tax. Please suggest whether this idea of NRE account is true or is there any catch?

Thanking you.

Deepak Jain

Reply

Manshu March 5, 2012 at 5:50 PM

You are based out of the US?

Reply

Sandeep March 5, 2012 at 5:11 PM

My topic is AEGON Religare Term Insurance plan which offer 1 cr insurance on premium of Rs.6400 pa. If somebody is aware about pros and cons of the same or of term insurance. Any comparision of term insurance productrs available in the market. Pls suggest.

Reply

G gopi March 7, 2012 at 5:02 PM

hai everybody,
this is gopi
this is vast of your time but Your blog has a wonderful way which is good to go for experts onyour subjects .

Reply

vijayasingh March 9, 2012 at 2:08 PM

Start topic about forex it will satisfy my hunger about currency. Currency has became an tool for
investing and hedging against inflation. Currency details required so please start it as soon as possible.
Thanks and regards
vijaya singh

Reply

Vinitt March 11, 2012 at 11:13 AM

Your Views on IDFC SPICE Fund

Reply

Thiyagu March 11, 2012 at 8:53 PM

Hi

I have a basic or silly doubt. Please bear with me.

I have been holding L & T shares for the last 7 years and I bought these shares for various reasons. One of the reason is I would get shares from subsidiary companies of L & T if it get listed in stock exchanges. But when L & T Finance Holdings came for IPO , I didn’t apply for the IPO and being L & T shareholder I thought that I would few shares of L & T Finance but it was not so. Suppose, if L & T Infotech gets listed in future, whether I would get any shares of L & T Infotech for being the shareholder of parent company L & T .

Kindly explain me in detail why I didn’t get shares of L & T Finance Holdings ? Is it because of IPO of L & T Finance Holdings ? If anyboy say or believe with valid reasons that I should have got L & T Finance Holdings shares automatically being shareholder of L & T , then can I approach L & T Finance Holdings now ? If it had not come for IPO, whether I would have got shares of L & T Finance Holdings ? In future, whether I would get shares of L & T Infotech ?

Thanks in Advance.

Regards

Reply

Ankita March 14, 2012 at 3:07 PM

Can u please clarify the concepts of YTM and relation between YTM (with calculationa) and Bond Prices with examples. Also the relationship between YTM ,interest rates and Bond prices. Some examples would be very useful

Reply

Manshu March 15, 2012 at 5:05 AM

I have a fairly detailed post on YTM calculations here and perhaps that will be a good start:

http://www.onemint.com/2010/10/19/lt-finance-bond-yield-calculation/

I’ll see if I can add to it and write another post.

Reply

Shiv Kukreja August 1, 2012 at 12:59 PM

Hi Ankita… here is the link for your reference:

http://www.onemint.com/2012/07/25/how-to-calculate-yield-to-maturity-of-a-bond-or-ncd/

I hope it helps. In case of any further query, please let me know.

Reply

Vijaye March 14, 2012 at 7:33 PM

Can u please explain the method of calculating “Earning per Share” (EPS) taking into account the Growth & PE.

Can we project “Forward earning” by (Present Sensex / Present Price Earnings)* “Expected Times Growth”

Does Sensex “Dividend Yield” and “Price to Book Value” play any role in projecting forward “Earning” figure?

Reply

Manshu March 15, 2012 at 4:54 AM

I’m not sure I understand this properly. It appears that you know what EPS is and how it’s calculated but are interested in some sort of a Sensex estimation / prediction methodology that’s based on PE?

I don’t know if I’m interpreting it correctly, can you share a link if there is one that prompted this question.

Reply

Ga March 15, 2012 at 12:59 PM

Can i take a term insurance policy for a non-working spouse? DO you think we will need one?

Reply

Amit March 15, 2012 at 1:39 PM

I have recently (within last 6 months) started reading your blog regularly and I really appreciate the efforts you take to educate your readers and the discussions that take place through comments.

I am interested in knowing more about target date funds and your analysis/opinion on investing into such funds from a long term perspective. What are the pros and cons of investing in these MFs and can you recommend any good picks for retirement target of 20 years from now?

Thanks!

Reply

Rakesh Rajbhar March 17, 2012 at 11:27 AM

Hi Manshu!
I have been following your post from past 2-3 months and I liked it very much. I am interested in stock market, therefore, gathering knowledge on it. I want to know more about crude oil and its impact on market and economy of a country. Every time I tune into CNBC or while going through some business newspaper I came across this “CRUDE OIL or BRENT CRUDE” but I could not figure out its impact.
I would be grateful to if you could help me out.

Reply

Manshu March 19, 2012 at 3:18 AM

Sure, good topic for a future post. Especially with the budget coming out and focusing on how much the subsidies have hurt India.

Reply

Jignesh Parikh March 17, 2012 at 5:13 PM

HDFC Swing STP vs HDFC STP

Reply

jmmohandas March 17, 2012 at 8:37 PM

would be thankfull if you could write a post on what is futures & options
thanks & regards
JMMohandas

Reply

Manshu March 19, 2012 at 3:10 AM

Sure, a good topic for a future post.

Reply

jmmohandas March 30, 2012 at 10:14 AM

Thank you very much,

Reply

yogmah March 17, 2012 at 9:53 PM

Can you please write about FOREX trading( Not Currency futures, but spot trading through international brokers like http://WWW.FOREX4u.com ). especially for Indians covering mainly the pros and cons and legal aspects.

Reply

Manshu March 19, 2012 at 3:08 AM

I’m not knowledgeable about that to write on it. Sorry.

Reply

S Srikrishna March 19, 2012 at 1:30 PM

Manshu:
I am looking at possibilities to contribute to OneMint. I am an accomplished CA with extensive experience in reputable organizations. I can share more about me if required by you.

Reply

Manshu March 19, 2012 at 3:05 PM

Thanks for your interest, but this is my personal blog and right now I’m not looking for contributions, perhaps you’ll be more suited contributing to a newspaper. Thanks!

Reply

Narayan Dubey March 19, 2012 at 8:27 PM

please suggest me which Gold Fund is best one . I want to invest 2000 pm for 5 year thru SIP
thx.
ND

Reply

Manshu March 20, 2012 at 5:54 AM

There is no such thing as best gold fund but you can read this post to understand the options and their relative benefits a little better.

http://www.onemint.com/2011/08/16/gold-etf-in-india-performance-and-volumes-in-last-year/

Reply

Narayan Dubey March 19, 2012 at 8:37 PM

pls suggest me……
If buy ETF gold so transaction charges are Applicable are not ,
If yes. so how much during buying and selling.
Thx….

Reply

Manshu March 20, 2012 at 5:52 AM

Yes transaction charges are applicable similar to what they would be applicable in the case of trading stocks.

Reply

jmmohandas March 20, 2012 at 6:35 AM

I have been following your post for the last 5 Months, it is very very usefull, your way of presentation on any topic is very very nice,even a lay man will understand it, thank you very much .
” BIS Hall marking of Gold Jewellery ” – Is it Correct that the purity (.916, .875 etc ) mentioned on the BIS Hallmarked gold ornament, is just the surface purity of the ornament and not of the entire ornament, i also understand that hall marking is done on a sample from a lot and not on 100 % ornaments. it would be nice if you could write post on ” Hall marking of Gold Jewellaery”
Thanks
JMMohandas

Reply

shinaj March 20, 2012 at 2:56 PM

A lot of topics have been covered regarding Insurance and Investments for Indian national residing in India.I am yet to hear a topic about the NRIs purchasing foreign Insurance and Investment products.I would say that 100 % of the expatriates especially in the Middle East are being taken for a ride in these avenues .Consultants acting on behalf of large brokerages are earning commissions in the range of 100%-140% of the first year premiums being paid by the policy holders.
They are wrongly selling Insurance products to customers in the name of Investments and Mutual funds…Really feel sorry for all the expats fallen in this trap..

Reply

Kuldeep March 21, 2012 at 4:59 PM

Sir,
I want to buy term plan. suggest me from which compny i should take. The premium of LIC are larger than any other companies like ICICI, HDFC, Kotak…

Reply

prem March 22, 2012 at 12:47 AM

Can you provide a detail review of Postal Life Insurance ?

Reply

Manshu March 24, 2012 at 11:49 PM

I’m not really familiar with this other than knowing it’s for government employees only (and I’m not even sure of that) so I don’t think I can write about it – sorry.

Reply

Thiyagu March 22, 2012 at 2:23 PM

Hi

Today I read a news about Home Loan.
Customers who have taken home loans from HDFC under the dual rate scheme are facing a peculiar problem. From April’1 , once their rates shift from Fixed to floating , their floating rate will be higher than the current floating rates, due to higher spreads.

Currently, HDFC’s floating rates vary between 10.5 to 11 per cent, depending on the amount. For customers whose loans become floating from April’1 , the rates could be in the 11. -12 per cent range, due to higher spreads over the RPLR ( Retail Prime Lending Rate ).

Here, my question is what is higher spreads and why conversion floating rate will be higher than the current floating rates, due to higher spreads ?

Please explain.

Thanks in advance.

Reply

Manshu March 24, 2012 at 11:39 PM

Frankly, I’m not familiar with this situation and this is the first time I’m hearing of it but let me look at this and see what’s going on here. Thanks for the suggestion.

Reply

Krunal March 24, 2012 at 1:08 AM

Investment decisions in debentures or bonds…..
Selection on what basis…and other decisions…and
Muthoots idea of NCDs doubling your money in five and half year….

Reply

Manshu March 24, 2012 at 11:23 PM

I don’t think I have a lot to say on this apart from spreading your money around and not getting exposed to any single company. I’ll see if I can write more than that on this.

Reply

P.Parameswar March 24, 2012 at 9:12 AM

I am retired. Want to be benefited by trading during steady trends. Pl give the technical analysis sites & blogs. Suggestions for efficient usage of them may please be given !!!

Reply

Manshu March 26, 2012 at 1:03 AM

I would say it is better for you to stay away from technical analysis as a lot more people lose money in that than make money, and when the market falls sharply like it did last year or 2008 then it is very hard to find cover or cut losses. Generally, the losses run very deep and market changes direction very quickly. I don’t think there is such a thing as a steady trend, and my thought on this would be to stay away from the market completely.

Reply

Rakesh March 24, 2012 at 12:50 PM

How to become an long term equity investor? I mean to say do I need to pursue any courses for that. As I am a BCOM graduate I don’t face any problem reading financial statements but other stock market and economy factors are alien to me. Please help.

Reply

Manshu March 24, 2012 at 11:18 PM

No, there are no courses for this kind of thing – you just need to read up on this kind of thought process. There are a lot of good books about this, you could read the ones written by Peter Lynch to start off.

Reply

Umesh March 26, 2012 at 12:27 AM

Hi Rakesh
Just to be an equity investor you need not pursue any course. But if you want to study about equity market just visit http://nseindia.com/education/content/education.htm.

Reply

Prat March 24, 2012 at 5:09 PM

Being an immature investor, I do understand most of how stock markets works, however, I have trouble trying to comprehend how a share price is calculated at any given time. Lot of people have provided me with different theories but clearly no one had a good understanding. The most common and simple answer I got was “based on demand and supply” – DuH – what an intelligent answer! Also my Google searches didn’t lead me to any satisfactory explanation.

I want to know that given the what the demand and supply is, how exactly, at a micro-level, is a share price (displayed at the exchange) calculated? What formulae are used? Are they too mathematical to be understood by a lay person? Who calculates, validates it – computers, humans? Who is responsible for it?

Reply

Manshu March 24, 2012 at 11:16 PM

It’s a great question, and I’m surprised you haven’t found a clear answer to it yet. The process is all automated and is based on the bids and asks sent to the exchange and their automated matching program. I’ll see if I can write this up in a lot more detail of course but it is simple enough for anyone to understand.

You might find the pre open session post on this interesting as well.

http://www.onemint.com/2010/11/29/what-is-the-significance-of-pre-open-session-of-the-stock-exchanges-we-see-from-9-am-to-9-15-am-daily/

Reply

Umesh March 26, 2012 at 1:05 AM

No formula is used to calculate the price of a share, because in secondary market price is not calculated. The price of a share is decided by the market, by we people, by the purchaser and the seller. It is a game of demand and supply.

The past and present performance and even the future prospects of a company is the main force behind its demand. And when a share is in demand its price is likely to go upwards. And when a company is not performing well there will be slump in the demand and the price is likely to go downwards.

Performance is not the only factor that decide the price/market trend. Many other factors like economical, financial, political, judicial or social factors/situations/news also have a say in deciding the price or overall market trend.

Reply

Manshu March 26, 2012 at 1:09 AM

I think he wants to know the method behind that Umesh which is the process of matching bid and ask orders with volumes.

Reply

Umesh March 28, 2012 at 2:01 PM

I think, he being an immature investor should not dig that deep to know the process etc but if he just want to have data and statistics of bid and ask orders with volume or any other data then there are many websites/blogs like nse/bse sites that can help him

Reply

Suresh Jonna March 25, 2012 at 10:19 AM

Hi Manshu,

I need to know step by step procedure to start Shares or Mutual funds. We all know what is MF, shares, or Bonds. But how to begin to be part of it. All I know is savings account, so what next. What do i do for other accounts? Where to begin?

Thank you. You are doing a great job.

Reply

Manshu March 26, 2012 at 12:53 AM

So, you mean how to buy shares or mutual funds or bonds? That? That’s actually a very wide topic, and I’m not sure how to handle that in just one single post. What I would suggest is that you start following the series I’m writing right now on how beginners can approach investing in the stock market.

This is the link and this will be a good place to start in my opinion.

http://www.onemint.com/2012/03/14/how-beginners-should-approach-investing-in-the-stock-market/

Reply

Suresh Jonna March 26, 2012 at 9:31 AM

Hi Manshu,

Many sites says definitions but not how to be practical. Your posts talks more practical. I am benefited from your posts.

Yes, I do follow your posts. I am waiting for your new posts.

Reply

Vinod March 30, 2012 at 1:01 AM

When does the inflation data get released every month. Is there any fixed date (i-e 15th of evry month).
Also want to know when would rbi review it s policy , i-e whether monthly , quarterly ??? and on which date the same is released ?
Need clarity on above since i’m planning some investments ahead of this every month

Reply

Manshu May 13, 2012 at 2:00 AM

Here is a post with the important economic numbers which includes WPI inflation. Next date is 14 May 2012.

http://www.onemint.com/2012/04/17/important-indian-economic-numbers-and-their-release-date/

Reply

Karthik March 31, 2012 at 3:45 PM

Would you please write about the fineprint in ICICI’s branchless banking account (promoted as b2)? The rate of interest and services seem too good to be true. I am not able to find more information on the net apart from this Mouthshut review & its comments (http://www.mouthshut.com/review/ICICI-Bank-review-osspmstlqm)

Thank you.

Reply

Manshu April 2, 2012 at 3:53 AM

That’s a great suggestion – I wasn’t aware of this till now but would like to explore this and write about it – thanks for bringing it up.

Reply

P.Parameswar April 1, 2012 at 12:26 PM

Dear sir,
FOLIO NOs : 406116791314/ 406116791325/406116791336

I purchased NFO ‘Reliance Small Cap Fund’ open ended OFF LINE in Aug/Sep 2011. Three
applications were made in my name (single holder with three different nominees) – each for 1000 units. Preference for Demat was given in the application to my ICICI Direct Demat
—deleted—
Co ordinated action by all agencies can only provide solution to this vexatious LIMBO situation.
Dear sir , I seek your help in getting SOAs so that I can thro’ Transfer Instruction get the units a DEMAT, Linked to my Trading A/C.
Thanking you
P.Parameswar

Reply

Manshu April 2, 2012 at 3:43 AM

I feel your pain, but this is way beyond what I do here or can do for you. Unfortunately, I can’t suggest you a better way to do this either. Also, I’m deleting the part of your comment which has Demat numbers etc. because that shouldn’t be shared like this in public. All the best.

Reply

P.Parameswar April 2, 2012 at 12:06 PM

Dear Sir,
I have Insurance Policy ‘Dream Life’ with Bharti-Axalife Insurance Co. My Policy No is

–deleted–

Beyond saying that the co will act on the request at earliest no action was taken so far –
your liaison in this regard is solicited.
Parasuram Parameswar

Reply

Manshu April 2, 2012 at 7:24 PM

As I told you earlier, this is a blog and I don’t have the bandwidth to work as a liaison for you.

Reply

Vinod Kulkarni April 2, 2012 at 8:33 PM

Dear Sir,
Please discuss Tax Implications for FIIs and confusion vis-a-vis GAAR

Thanks and Regards

Vinod Kulkarni

Reply

hemang sanghavi April 3, 2012 at 10:09 AM

dear sir,

now banks hav started charging more than 100% for lockers in banks
one of this is JANKALYAN CO-OP BANK LTD

general public does not even knows about this rate hikes and why a sudden and drastic increase in rates of lockers

allready v r having many committements and in this banks manager is saying V HAV NOT

CHARGED YOU FROM LAST 10 YEARS

what a stupid answer….

Reply

Om April 3, 2012 at 10:47 AM

Difference between returns of fixed deposit and a mutual fund. kindly calculate and let us know the annulised return (how it is calculated in case of mutual fund) both on fixed deposit and mutual fund considering the interest of fixed deposit at 9.25 % and three mutual fund (one medium performing fund, one high performing fund and one bad performing fund). Kindly calculate and let us know the return supposing one time investment of Rs. 10,000/- only.
If possible kindly calculate and let us know the comparison of returns of Rs. 5,000/- SIP in mututal fund each month for five years and Rs. 5,000/- monthly subscription in RD account giving 9.25 % interest for five years.
With regards.
Om

Reply

S Srikrishna April 27, 2012 at 6:09 PM

I suggest you do not compare FD with MF investments for the following reasons:
1. FDs are safe and protected by banks. These are treated as risk free. Further the category of banks such as SBI improves your risk situation as it is backed by the Government of India
2. Though MF offers schemes with capital protection but these are not risk free. In fact you need to monitor these almost daily to see their NAV performance. MFs performance over the last two years has been dismal with or without SIP.
3. Each MF scheme has to be evaluated for its past and present performance in relation to the market conditions. Upon evaluation one needs to take under consideration the economic scenario that is likely to unfold in the months/years to come to extrpolate the growth or de-growth in NAV for computing the likely return one can earn.
4. Monitoring market on a daily basis requires time, effort and diligence. Those who are not active investors are well advised to move towards safety and protection of capital.
If you require any specific situational analysis please let me know.

SSK

Reply

Abhishek pandey April 3, 2012 at 11:30 PM

Hi Manju,

First of all let me thank you for writing such informative n useful articles time and again.

I want to know more about recently released Government bonds. How to buy them,comparison with FD at 9.5%interest rate.

I have 3 lac rupees with me and i want ur opinion on the best instrument to invest in for monthly income for next 5-10 years. IDBI FD is currently running in my mind at 9.5% interst rate but after TDS the effective return will be 8.5215(kindly correct me if i m wrong).

Reply

Manshu April 4, 2012 at 4:20 PM

There are some tax free bonds that have listed at a discount and you can look at buying those too along with the fixed deposits. If you are at the 30% tax slab then these are a good option too.

Reply

Roopa April 4, 2012 at 10:04 AM

hi Manshu,
can u write on ICICI child plan,Smartkid premier.

Reply

Manshu April 4, 2012 at 4:18 PM

I don’t know much about it but let me see if I can hunt some details and write about it.

Reply

Shyam April 4, 2012 at 1:58 PM

How the mutual funds handle the dividends that they receive from the stocks they own in the portifolio.

For example: HDFC top 200 (G) has 8.53% of the funds Invested in SBI. In 2011 SBI has given 300% of dividend. Since the fund is earning tax free income from the company, what they will be doing with the dividend income?

Reply

Manshu April 4, 2012 at 3:53 PM

As far as I know there is no limitation on how they use the cash, they are free to reinvest in SBI, buy another stock, keep it for redemption or pay out as dividends. But if your question is whether this dividend income ultimately comes to the unit holders then yes, it absolutely does come to the unit holders one way or another.

Reply

SUNDER MANIX April 5, 2012 at 6:12 AM

Any interest earned in NRE account is not taxable in India , but is taxable in USA

Where as any interest earned in NRO accounti s taxable in India, hence not taxed again in USA.

1. Now lets say if someone invested their NRO account funds in fixed maturity plans indexed to inflation rate, and did nt have to pay any tax since inflation rate turns out to be more than the interest rate on FMP. Now in this kind of a scenario is the interest income coming from an FMP account, is it taxable in USA ?

2. If someone moves their Indian money i.e. money origination from India into NRO account, and earns interest, should that income be shown in USA ?

3. In an NRO account one can move their Indian money as well as transfer money from USA into the same NRO acccount. What are the tax implication on such account in INDIA AND USA ?

Reply

Manshu April 5, 2012 at 7:03 PM

I’m afraid I don’t know the answer to any of these questions. Sorry.

Reply

Raju April 5, 2012 at 11:37 AM

What is diff between and EPS and EPF and share more details about EPFO. Thanks in advance.

-Raju

Reply

Viswanath April 5, 2012 at 4:04 PM

How to calculate the CAGR for a SIP investment?

Reply

Manshu April 29, 2012 at 3:43 AM

I have already written about that topic, you can find that post here:

http://www.onemint.com/2011/05/15/how-to-calculate-returns-from-a-sip-systematic-investment-plan/

Reply

meera parveen April 7, 2012 at 3:05 PM

cash management in shriram city

Reply

meera parveen April 7, 2012 at 3:07 PM

tell me the idea about cash management in various companies

Reply

Manshu April 7, 2012 at 8:49 PM

What does that mean? Cash management in various companies? What exactly are you after and what will you use this information for?

Reply

meera parveen April 7, 2012 at 9:45 PM

how do the companies manage their cash in their business. it is required for my project work

Reply

Manshu April 9, 2012 at 3:31 AM

What you should do is Google up how companies manage working capital, capex, and expansion that will help you get material for your project work.

Reply

Manjunath April 10, 2012 at 7:21 AM

It would suggest you to write some articles on basics, do & don’t & strategies in Option Trading.

Reply

ashish jain April 12, 2012 at 4:05 PM

Sir,
Please explain what is credit default swap in layman’s language.

Reply

Manshu April 12, 2012 at 5:05 PM

Here is a post I did quite some time ago. You may find it useful. http://www.onemint.com/2008/10/15/what-is-a-credit-default-swap/

Reply

ashish jain April 14, 2012 at 1:42 AM

i have gone thru it..good one…
I have some queries

Who controls CDS?
This mechanism originated in which country?

The banks also insure the loan then how it is different from CDS?

Plz explain ….

Reply

Manshu April 14, 2012 at 7:01 AM

I think these were invented in the US and for a lot of these instruments they are transacted between two parties over the counter so don’t have the kind of regulation that a share will have. They are instruments that can be bought and sold by anyone and not necessarily the people who actually take out the loan (which is the case for bank insurance) and that’s one marked difference, and second is that the market is a lot bigger.

Also, please use the post itself to ask questions so that others who land on their page can benefit from your questions as well.

Reply

Rajeshwari April 13, 2012 at 1:42 PM

Hi Sir,

I am Rajeshwari from Bangalore I am receiving your mails its very useful and good also. Actually I want to ask one suggestion or the correct path i.e., I am married I want to save gold for my daughter for her future requirements. First I will tell my plan: that is I want purchase the gold from now onwards one or two grams monthly or two months once. If I purchase like this, is there any wealth Tax on gold coin purchasing? please tell me and is this the way is correct for gold saving?

Any other way is there for Gold saving? please suggest me, I don’t want to take risk also I want to save my money and Gold safely? I don’t want to get loss. So, please suggest me a correct path or way.

regards,
Rajeshwari E

Reply

Umesh April 14, 2012 at 7:34 PM

You have not mentioned the time horizon of your requirement of gold but purchasing gold in small quantities is a good idea.

You can purchase/invest in gold in small quantities thro Gold ETF and eGold, as small as 1/2 in Gold ETF and 1 gram in eGold. For more details on eGold you can visit National Spot Exchange (NSEL) website http://www.nationalspotexchange.com

Manshu has written many post on Gold ETF and you can search in http://www.onemint.com/category/etf/

Manshu also wrote a post on eGold last January, you can go thro it.
http://www.onemint.com/2011/01/13/e-gold-and-e-silver-from-nsel/
I also posted a comment in this post on 13.10.11 about various option available for investment in gold.

Purchasing gold ETF and eGold is very much similar to purchasing shares. Please note that you have to pay some inherent cost and charges on all investment or gold purchase like brokerage and other govt. charges and various taxes, demat charges and VAT if converted to physical gold etc. etc.

Now a days there are many gold jewellery saving schemes by various established jewellers. You can go thro an article that appeared in MINT newspaper recently http://www.livemint.com/2012/04/12220457/Are-gold-jewellery-saving-sche.html
And you can have your own opinion about these schemes, whether they are worth or not.

Reply

Surat Das April 13, 2012 at 8:22 PM

Financial goals and planning: Do I really need it ?

Sounds absurd but read through my post…. This is my first post in a blog as I found Onemint a really practical and unbiased discussion forum. Please keep up the good work of spreading financial knowledge.

Before I start this post, I want to say this – I have a full time software job but I do have average understanding of different mutual funds, SIP, Equity, Debts, power of compounding, effect of inflation, tax efficient investing and “start saving early” concepts. I also do realize that we are in probably most uncertain period of time with very insecure jobs, global effect on economy and constant change of macro and micro economy. How do I ensure a better future for me and my family in such scenario ? Simple and easy answer – Start saving as much as you can through different asset class after carefully studying their risks/your priorities/diversification. I am already doing it.

Now, two points I want to bring here –
1. Why to set goals when I know that I am doing my best to save what I can. Whenever there is a need I simply will take out money. Only thing I have to take care is before say 2 years of my NEED, I will re-assess and re-align my portfolio to minimize risks and ensure liquidity. This way I will not loose my sleep thinking about say “I need 20 lakh money in 2017”. If I have the money at that time, I will achieve my goal. If not, I will have to forgo that need or borrow. Setting goals does not mean anything unless I have a new product or solution other than what I already know.
2. Do I really need to go to a financial planner ? With my current knowledge as described above, what is the other option a financial planner can give me ? Only for setting goals (like marriage, retirement planning, education, home etc.) – setting goal does not help me in any way when I am already investing in the best way I can through different asset class and tax efficient way ? Most financial planner just set goals and reiterate what we already know and then finally ends up selling products and never follows up? (That happended with a few of my friends.)

I want to conclude here by saying
1. Don’t get into hypertension/diabetes in your mid life by thinking too much on goals.
2. At the same time you have to be aware of basics of economy (You don’t have to be expert as that part can be left to paid fund manager for example) so that you can save in an efficient way and as much as you can. The mantra is “START SAVING EARLY AND REGULARLY IN ASSET CLASS YOU ARE COMFORTABLE IN”.
3. Maintain a lifestyle balancing between comfort and luxury so that you can be sure that you are not wasting any money. Know what you absolutely need and what you don’t need. Ultimately “A penny saved is a penny which can be invested.”
4. If you have internet, you can find financial information very easily. Financial education is not one time learning. You have to update yourself with major economic changes or new products and probably learn from your mistakes too. If you think a financial planner can give you all information in a 6 or 7 hour session without you having to invest time to learn yourself later, you are wrong. If you have come here in Onemint, and reading this post – I know that you already know basics of finance, you want to know more and you have the financial AWARENESS. So, happy investing.

Reply

Manshu April 14, 2012 at 7:04 PM

Thanks for sharing your thoughts, and I appreciate your rationale and thoughts behind this. I think the foundation of good financial life lies in savings, and everything else depends on it, if you aren’t saving enough you can’t do anything with your money because you will always be busy paying credit card bills and worrying about the next EMI.

Reply

Rajeshwari April 16, 2012 at 10:56 AM

Thanks for your reply.

Reply

arun April 17, 2012 at 12:21 PM

Hi manshu,

can you give us an idea about top softwares which are helping a Person to invest in Equity.

Reply

Manshu April 18, 2012 at 6:11 AM

I’m not aware of any I’m afraid.

Reply

Umesh April 18, 2012 at 12:38 PM

Hi Arun

Perhaps I can. Can you please answer the following basic questions.

1. What type of software you want.
2. What sort of help you want using the software.
3. What is your knowledge about stock market.
4. Do you have any knowledge about technical analysis, charting tools etc.
5. Lastly, are you a new or an active trader in market. If active, since how long.

If you like, do add few words about you too (age, education etc,). I may add there is nothing like this, that a software will tell you to invest in a particular stock(s), it is only you who have to decide.

Reply

arun April 18, 2012 at 5:42 PM

Dear Umesh,

i am an engineer , 24 yrs, just started my career in UAE .
am a student in stock market for last 3-4 months.
One Gentle men told me he is using a software to invest.
Though i felt its tough to penetrate into the finance field, i thought He may using certain software which works/predicts the stocks, by following any laws/theories .

I just know Elliot wave theory and the definition about support and resistance, dont know to calculate.
I just know the major division of listed companies but donno any major theories or prominent factors considered before buy/sell a stock, But Eager to know all…

For study I just started the virtual trade in Rediff money…
Then felt a lot need to understand which i dont know, and when heard of software helps in Investing, decided to seek the help of you guys .

Reply

Umesh April 19, 2012 at 6:37 PM

Hi Arun

I don’t know what type of software, your friend is using. You may simply ask him and I hope he will oblige you.

In my opinion he might be using some charting software (CS) (.exe type), may be Amibroker (AB), MetaStock (MS), Ninja Trader (NJ), Advanced Get (AG) etc. etc. With the help of these CSs, one can do charting of stocks and can also analyse/scan data on RT (real time) and EOD (End of Day) basis. And on this basis one can watch/select stocks for investment/trade. These softwares are quite costly, ranging about 10,000 onwards. Beside this cost one has to pay for data also. As appetite of these software is quite much and they require their feed every second/minute and they will not yield anything new until you satiate their hunger. Just joking but true. But you have to subscribe for paid data and it will cost you something 500-1000 per month. These softwares are also available “for trial basis” and you should first go for a trial.

There are web based charting software also (Jawa type), normally embedded in charting websites and these are free to use. These charts are EOD and not RT and rarely you will find RT charts free of cost.

There are two types of analysis/studies. One is fundamental studies and other is technical studies. The fundamental study(ies) is done for the fundamentals of a stock and the company. How the company is performing and its profit and loss etc. etc. and many other things. Beside this any good or bad news (relevant to market) and financial position of ones country and the world also had role in the movement of stocks.

Technical study(ies) is done on the movement of stock(s). It is basically the study of technical indicators. There are many Technical Indicators (TIs) and one should do some study of them. Examples of some mportant TIs are Relative Strength Index (RSI), Stochastics, Bollinger Bands, Moving Average Convergence Divergence (MACD), Simple Moving Average (SMA), Exponential Moving Average (EMA). You will come across more of these TIs, once you start studying these indicators. One should also study chart patterns and candlesticks patterns.

For a basic and advanced study of technical analysis go through stockcharts, investopedia, moneycontrol etc etc. Moneycontrol is good for fundamental studies as well. Also go through websites of BSE and NSE. You need not go into advcanced study but should have more than basic knowledge.

Beside this there is Elliott wave (EW) theory, Gann theory etc. You said you have some knowledge of EW. Also get the knowledge of Pivot Point and Support and Resistance. Calculation of support/resistance is very easy and you can do it yourself or with the help of pivot point calculator.

You being an educated person, must be knowing that a software is a dead object and you have to feed your knowledge and skill in to it so as to get something out of it. Many time just clicking few button(s) is not sufficient.

Gaining knowledge is a slow and steady process. Just do not jump on to study everything. In the start everything will go over your head but slowly and slowly you will understand what you want. Read some books on technical analysis and method of trading. Joining some forums and blogs and reading comments etc for gaining knowledge will be a good idea.

One word of caution, investing/trading in stock market is very risky and only a few earns from this, mostly there are losers. Another word, one will also come across many person/consultant/websites about sureshot tips/advices to earn money, one should take the right decision oneself. In the last I wish to add that whatever I have mentioned above is only for educational purpose and I am not connected directly or indirectly with any website and/or software company.

Reply

arun April 19, 2012 at 9:05 PM

Dear Umesh,

you gave me strong idea of basics and show me a path how to move further.
i will conc on TI’s and theories by making use of mentioned websites as its the basics rather than other stuffs.
Felt happy when i used a Pivot point calculator as its so simple than expected.
Thanks for guiding me to the right path.

Reply

Umesh April 20, 2012 at 1:23 PM

Hi Arum

Thanks for your comments. It’s my pleasure that you find the post useful.

Reply

Manshu April 22, 2012 at 8:37 PM

Those were some great points Umesh. Thanks.

Reply

Surat Das April 17, 2012 at 5:32 PM

I give one example here for long term capital gain (LTCG) calculation –
Let’s say, I booked an under construction apartment in Dec, 2006 by paying Rs. 1 lakh. I got the sale agreement a week later which laid down terms of payment as the costruction progresses. I kept paying cash year after year as per the agreement
Nov, 2007 – Rs. 4 lakh
Nov, 2008 – Rs. 3 lakh
Nov, 2009 – Rs. 2 lakh
Since the construction was taking longer than he promised and I was not satisfied with his quality of construction, I had asked for cancellation of my booking and refund of my entire money paid to him and compensate me for that. I made the request in Nov, 2010 and he finally paid 12 lakh in Nov, 2011. Now, let us say I want to calculate capital gain with indexation benefit (assuming it is LTCG).

Questions are –
Is it really a capital gain for me ? 🙂 If yes, is it short term or long term ?
What is the buy date and sell date for this complicated transaction considering the fact that the property was never registered to my name?
LTCG rule says the property has to be sold after 3 years from buy date ? Is it the case with me ?
Since the payment was made in different FY, can I use different indexation for all the corresponding years ?
Could the calcluation be different had I taken a loan ?

Can you please write a post on these type of practical and possible transactions ?

Reply

Thiyagu April 19, 2012 at 11:31 PM

To the best of my knowledge , I have replied.

1. There is NO capital gain in this transaction as there is no transfer of capital asset. Somebody may argue that relinquishment of rights in a property also to be treated as transfer of capital asset. But I differ from them as the property is yet to be completed .

2. You need not worry about buy date and sell date because as I said there is NO capital gain involved and you yourself said property is yet to registered.

3. Even if you had taken home loan there is NO capital gain involved. Only Loss for you is whatever interest paid on pre-completion period has to be foregone without claiming any tax benefit because property is not completed and you have surrenderd the under construction property back to the promoter.

4. Difference of Rs.2 lacs can be treated as Compensation by promoter for not completing the p roperty as per agreed terms and this Rs.2 lacs can be treated as Income from other sources and tax has to be calculated on the total income including this Rs.2 lacs.

If anybody differ my views, Please clarify with proper explanation.

Reply

Surat Das April 23, 2012 at 7:18 PM

I was under impression that it is a captial gain. 🙂
Your reply is wonderful and logical. It makes sense. Thanks.

Reply

Manshu April 22, 2012 at 8:44 PM

I’m afraid I can’t write a post on this and explain this because I’m not knowledgeable enough about tax to write about such intricate deals. Sorry.

Reply

M.P.Gupta April 17, 2012 at 8:15 PM

Hi,
what is RBIs Repo rate? and what is the real effect on common man by today’s (17/4/2012) RBIs Repo rate cut by 50BPS?

Reply

Umesh April 19, 2012 at 6:35 PM

Just google “what is repo rate” and you will get your answer.
One link http://www.livemint.com/2012/04/17202349/Did-You-Know–How-can-repo-ra.html

As far as effect on common man is concerned, banks will reduce their lending rates, so loan will be cheaper (by 25 bps in most cases) and will also reduce their deposit rates, so you will get less on your deposits (mostly by 25-50 bps).

Reply

Thiyagu April 19, 2012 at 11:19 PM

Hi

I have a basic or silly doubt. Please bear with me.

I have been holding L & T shares for the last 7 years and I bought these shares for various reasons. One of the reason is I would get shares from subsidiary companies of L & T if it get listed in stock exchanges. But when L & T Finance Holdings came for IPO , I didn’t apply for the IPO and being L & T shareholder I thought that I would few shares of L & T Finance but it was not so. Suppose, if L & T Infotech gets listed in future, whether I would get any shares of L & T Infotech for being the shareholder of parent company L & T .

Kindly explain me in detail why I didn’t get shares of L & T Finance Holdings ? Is it because of IPO of L & T Finance Holdings ? If anyboy say or believe with valid reasons that I should have got L & T Finance Holdings shares automatically being shareholder of L & T , then can I approach L & T Finance Holdings now ? If it had not come for IPO, whether I would have got shares of L & T Finance Holdings ? In future, whether I would get shares of L & T Infotech ?

Thanks in Advance.

Regards

Reply

Manshu April 22, 2012 at 8:58 PM

When a holding company sells or divests their stake – you don’t get shares automatically being the owner of shares of the parent company. You will not get these shares in future either. You are a shareholder of the parent company, and the parent company got cash instead of its shares.

You would’ve gotten shares if there was a merger or a takeover or something like that.

Reply

Thiyagu April 19, 2012 at 11:21 PM

Hi

On 22nd March 2012, I read a news about Home Loan.
Customers who have taken home loans from HDFC under the dual rate scheme are facing a peculiar problem. From April’1 , once their rates shift from Fixed to floating , their floating rate will be higher than the current floating rates, due to higher spreads.

Currently, HDFC’s floating rates vary between 10.5 to 11 per cent, depending on the amount. For customers whose loans become floating from April’1 , the rates could be in the 11. -12 per cent range, due to higher spreads over the RPLR ( Retail Prime Lending Rate ).

Here, my question is what is higher spreads and why conversion floating rate will be higher than the current floating rates, due to higher spreads ?

Manshu, you already said you will check and comeback. I also request the readers your site to explain this puzzle.

Please explain.

Thanks in advance.

Reply

Manshu April 22, 2012 at 9:08 PM

I’m sorry I couldn’t get to it and now I can’t seem to find the link to the news story. Can you paste that link here please? I will read that and answer you.

Reply

Reshma April 20, 2012 at 3:32 PM

X is a Employee of a US company, doing a project of its US company in India for a period of 60 days, getting salary form his US employer both in his US account and Indian account.
Please let me know the do he need to file tax return in India? if yes, which amount would be included in the return ?

Thanks !!

Reply

Manshu April 22, 2012 at 8:29 PM

Sorry Reshma – I’m not very well versed with taxation issues and won’t be able to answer this.

Reply

Thiyagu April 24, 2012 at 1:54 PM

Reshma

For your question , I have a few questions for you

1. Is X a Indian Citizen ?
2. Is X resident of India ?
3. Is X a Indian Citizen, and stayed in India for 182 days or more in the previous year ? This is to be done to find out the residential status of X ? There are some other conditions also but first I would like to check the basic condition.

If X is a resident in India as per the above mentioned rule, he has to file return in India for any income earned in India and outside India. If X is Non-Resident, then he has to file return in India for the Income earned only in INdia.

Some may argue that Income Tax Return has to be filed only if the tax has to be paid or income is more than the taxable limit. But it is better to file the NIL return also.

If anybody differ from my views, Please explain in detail.

Reply

urvesh April 21, 2012 at 7:28 AM

what are various instruments available to raise fund for real estate projects?

Reply

Manshu April 22, 2012 at 8:28 PM

Not aware of those and will not be able to write a post on that. Sorry.

Reply

Kartavi Dave April 22, 2012 at 7:13 PM

Hi Manshu,
Can u please analyse the sayings given in the book “rich dad poor dad” ?
How much are relevent today to a middle class service doing Indian citizen.
Kartavi.

Reply

Manshu April 22, 2012 at 7:44 PM

Hi Kartavi, This is certainly an interesting comment and while I’ve read the book a few years ago and found parts of it useful I don’t know how to address what you are saying in a post. Perhaps a better idea will be to look at a concept and say how relevant that is rather than think of the book as sayings. What do you think? Can you think of any concept like that?

Reply

Anu April 22, 2012 at 9:22 PM

Hi Manshu,
I have been with the industry for almost 7 years. I sold all financial product like anything. But over a year I realised that I need to develop me as a person who has a thought process, not like a machine who works on instruction. Its almost more than two year I had bee working on this direction and I got the booster when I visited your site. Frankly speaking it was my dream to meet and read the articles which matches my thought process. Many things I learned from your blogs and update. I am facing a very big resistance from the retail investor and many friend who are into the advisory segment. Kindly advise what is the best way to educate a retail investor who can educate ten others.

Because what i feel the problem with spreading the financial awareness is nobody knows how to spread it.

Kindly share your views on it.

Reply

Anonymous Coward April 25, 2012 at 1:05 PM

You tell your investor to read this blog! 😉

Reply

Manshu April 28, 2012 at 9:18 PM

Hi Anu, I think this is a big challenge while you’re doing a job, and are bound by targets and performance expectations of your boss and others whose ideas may not be aligned to yours. The people that I’ve seen spreading financial awareness successfully are all doing it on their own.

And then you should recognize that not everyone will align to what you are saying and should be willing to turn back some people who you think will not find value out of the way you approach investments. For example, I often ask people who talk about trading to look for information on Moneycontrol or other sites because this is not a good fit for them and I don’t want that kind of audience on this site.

What exactly do you do right now?

Reply

santonu April 23, 2012 at 7:59 AM

I want to know in what way NCDNon convertible dennures are risky. Whether we should invest in NCD which generally gives a returnof 12-13% per anum and whether this return is guaranteed during the entire period for which NCD are issued

Reply

Manshu April 23, 2012 at 4:08 PM

It depends on the company that issued them. They are not secure like banks because in India banks have hardly failed but companies go bust from time to time and if a company does go bust then your NCD may not get paid or may not get paid in full. For example, if Kingfisher were to come out with a fixed deposit scheme then you’re better off staying away from that because of the risk to the company’s future itself.

Reply

Rakesh April 23, 2012 at 1:00 PM

If i want to invest in company fixed deposit scheme. Please tell what parameters should i check before investing in… and can you review companies like Jaipraksh Associates, Jaypee Infratech ltd. , Network 18 & Premier Ltd.?

Reply

Manshu April 23, 2012 at 3:59 PM

That’s a fairly vast topic and I’m not sure if I will be able to cover everything but let me try to put down some thoughts on it.

Reply

Deepika April 25, 2012 at 4:45 PM

Manshu, why dont you analyze and throw some light on the Junior BeEs that gives a feeler of safe and attractive returns? thanks !

Reply

S Gopal April 26, 2012 at 10:59 AM

Excellent analysis of various financial topics …have often referred to yr blog and have got valuable advice….very balanced and comprehensible language
—s gopal

Reply

Manshu April 28, 2012 at 7:54 PM

Thanks for the great comment! Much appreciated!

Reply

Thiyagu April 27, 2012 at 7:24 PM

Hi

I was going through Budget 12-13 Budget at a glance document downloaded from Fin Ministry website.
Also, i was mentioning that, they have mentioned yearly GDP growth of 14% in the document.

As far as my understanding:

(a) GDP for 12-13 is Rs 10159884 Crores (as against Rs 8912179 crores of 2011- 12). The
increase is working 14%

(b) However, Projected GDP growth for 12-13 is around 7% only. But what is this 14%.

(c) Fiscal deficit is 5.1 % of GDP. Here the GDP figure taken for reference is Rs10159884
(Fisc Deficit/GDP = 5.1% => 513590 / 10159884

In nut shell, GDP for 12-13 is given as Rs10159884 (which is 14% over 11-12). For expressing
all items as % of GDP figure taken is Rs 10159884.

Sure, I am missing out something. Clarify, when free, where my understanding is wrong.

I am not able to attach the document I am referring but you can check that document in the below given link.

http://indiabudget.nic.in/glance.asp

Please clarify.

Reply

S Gopal May 1, 2012 at 10:11 AM

Dear Manshu
While you and your blog have dealt very well on the options of fixed deposits , it may be worthwhile to start a thread of discussion on investing in short-term mutual funds. This is particularly worth considering in view of the tight liquidity in the financial market and subsequent high yields on short term bonds and securities.
Thus if you could start a discussion and offer your valuable views on Funds that offer good safe returns with option of immediate withdrawal , it would be worthwhile for investors like us who do not want to park their funds in the saving schemes of banks giving very low interest rates at present.
As I have commented earlier that I often refer to yr blog for sound financial advice —recent being on LIC’s Jeevan Vriddhi and on IDBI;s NFO
–s gopal

Reply

Ranga May 3, 2012 at 5:51 PM

Benefits of investing in government stock. Are there tax benefits?

Reply

Sunil Agrawal May 7, 2012 at 12:23 PM

Can we have a dedicated center for providing current information on Debt instruments (Traded debentures, Bonds, Tax Free Bonds).

Reply

Vrinda May 9, 2012 at 10:49 AM

Hi Manshu

Can you write on how good the investment on real-estate is? And if it is a good investment option?

Regards

Reply

Manshu May 9, 2012 at 6:49 PM

That largely varies from one area to another and also what your financial position is like as well as what other investments you may have. I can write a generic post on this for sure but not sure how useful that will ultimately turn out to be. Thanks for the suggestion though.

Reply

swapnali kinjawadekar May 9, 2012 at 11:28 AM

I want explanation on ” why stock market is negatively co-related to Rupee depreciaton” whereas rupee depreciation is good for our exporters!

Reply

Manshu May 9, 2012 at 6:48 PM

Hmmm very interesting….I can write about that, will make for a fun topic.

Reply

ALOK May 9, 2012 at 3:21 PM

future prospects of INDIABULLS POWER LTD. shares at ipo price of 45 it is as low as 12 what to do should we average it, hold and watch or exit

Reply

Manshu May 9, 2012 at 6:40 PM

I’m sorry I don’t write about individual stocks or what direction they may take.

Reply

sameer shah May 10, 2012 at 1:30 PM

I wish to add gold to my portfolio. Its purely for long term investment, to have a diversified folio. I have a demat account. Which route do i prefer- ETF’s Or Gold FoF’s ??? i have read about advantages/disadvantages of both….But wht is preferable from long term point of view?? Is it worth paying more expense ratio in a FoF ??? Is it true that all ETF’s r not easily sold on the exchange whrn we need it?? Kindly help & recommend ETF’s tht r easily sold on the exchange.
THANKs…

Reply

Manshu May 10, 2012 at 7:09 PM

It’s not true that ETFs aren’t easily sold on the exchange, whoever wrote that either misled or didn’t understand ETFs enough. A FoF will ultimately own the same ETF so whatever troubles you will have selling the ETF, they will have too (if there are any at all). The only benefit I see of owning a FoF is that you save on brokerage charges and that can matter if you are buying small quantities. Other than that an ETF like GS GOLDBEES or SBI or Kotak’s Gold ETF has got good volumes and that’s a reasonable bet.

Reply

sameer shah May 10, 2012 at 10:19 PM

Thanks a lot for tht input. So if i plan to invest 3000/- pm, shd i go for a FoF ??

Reply

Manshu May 10, 2012 at 10:40 PM

An ETF should also be fine for this much, but if you don’t have a trading account already then it won’t be worthwhile to open one just for this.

Reply

sameer shah May 11, 2012 at 3:32 PM

I do have a trading account linked to my demat thru which i buy shares. i suppose tht wd work. So i wd rather go for an ETF as per ur suggestion. Wht r the brokerage charges usually?? wht shd be the cut off value to decide ?

Reply

Umesh May 11, 2012 at 4:52 PM

Hi Sameer

As you have trading account and demat account for shares, it will be better for you to invest in ETFs.

Brokerage charges varies with different brokers, 0.1 to .5% (one side) (cash/delivery segment) plus other taxes and statutory charges and levies. Further, you must know that there is a term called minimum brokerage and it is about 20-30 INR. And as you said you plan to invest ETF worth 3000 INR per month, the brokerage for this will be somewhere 0.7-1% (one side). Calculate all the expanses on your investment beforehand.

So, check with your broker about the total charges.

Reply

Manshu May 12, 2012 at 3:58 AM

Yes that will work. Those charges will vary from one broker to the other so best call them up and find out. What do you mean by the cut off value?

Reply

sameer shah May 12, 2012 at 1:41 PM

cut off value as in- Just as u said tht i can go for etf if i am investing 3000 pm, i wanted to knw if at all there is any cut off value below which a FoF turns out to better than an ETF.

Reply

Manshu May 12, 2012 at 5:41 PM

Oh okay got it. Well, I was thinking in terms of say Rs.25 is the min commission and then you have STT and Demat charges so if you’re buying ETF worth just a 1,000 bucks then you’re paying a little over 2.5% commission one side so that’s much more than a MF expense. With 3,000 that’s much lesser so I thought that sounded like a reasonable sum to buy just a low cost GOLDBEES type ETF. 2,000 is probably a gray area and you could go either way.

Reply

sameer shah May 12, 2012 at 9:19 PM

thanks a lot Manshu… you r the first one to address this query of mine to my satisfaction. No one till date gave me a definite answer. thanks a lot for the Clarity !!! Looking forward to ur help always….

Reply

Nargis May 10, 2012 at 7:28 PM

Thanks for your insights on the financial jungle.
Manshu, can you do a review of the only ULIP in India managed by a Mutual Fund. I am talking about UTI ULIP, which claims to be lowest cost ULIP in the market.

Reply

Nargis May 16, 2012 at 11:39 AM

Manshu,
It seems that you have missed my comment requesting your review of ULIP scheme by UTI Mutual Fund or have you done review in the past ?

Reply

Manshu May 17, 2012 at 4:28 AM

I did in fact miss it so thanks for the follow up. That’s a good suggestion and I’ll write on this topic as well.

Reply

santonu May 12, 2012 at 11:21 PM

I observed that Rupee value beyond 52 against USD has also put pressure on IT stocks like infosys,TCS,HCL,wipro and why this is happening Si?

Reply

R Ramamurthy May 13, 2012 at 5:03 PM

Can You please do a post on Joint development agreement under which a property owner enters into an agreement with a developer for demolition of a house and building flats. The developer builds say 8 Flats and Keeps 4 for himself and hands over 4 to the property owner.Particularly under such types of agreement what are the Capital Gains Tax implications?

Reply

Manshu May 13, 2012 at 5:54 PM

I’m afraid I don’t know anything about this stuff to be able to write about it so sorry I won’t be able to do a post on this.

Reply

sameer shah May 13, 2012 at 11:29 PM

Hi Manshu,

I have an ULIP- HDFC SL Youngstar unit linked plan since 2005 valid til 2030. the amount invested so far is 350000/- & the current fund value is 447000/-. It gives a life cover 0f 5 lacs. I do have a term plan & invest in Diversified Euity MF’s. Shd i continue with this ULIP? Hw wud u rate it?? I don’t mind going ahead with it provided its gud enuf. kindly suggest.. thanks !!!

Reply

Anu May 14, 2012 at 11:22 PM

Compare it with the same amount if invested in the mutual fund Like BSL dividend yield plus, HDFC equity, fidility special situation.Also answer yourself that what 5 lac cover matters for your family. If you are in the young stage try the combination of term+general+SIP+debt.

Reply

sameer shah May 15, 2012 at 12:25 PM

Thanks Anu. will do tht…anw, i do have a term plan + SIP’s + an endowment policy+ health insurance….

Reply

Gak May 14, 2012 at 8:34 AM

How about doing a post on home insurances and its different shapes and forms? I see in our country everybody mixes investments and insurances and the home insurance as a protection against natural calamity etc is never considered and most are loath to getting it.

how about a small post on it?

Reply

Manshu May 14, 2012 at 5:19 PM

I’ll try but don’t know much about home insurance so not sure how in depth the post is going to be.

Reply

Mayank May 14, 2012 at 11:37 AM

Hi,

I read the following terms in the annual reports, but I’m not sure of the difference between them:
1) Standalone results & consolidated results
2) Basic EPS & Diluted EPS

I would appreciate if you would throw some light on these.

Cheers!

Reply

Manshu May 14, 2012 at 5:18 PM

That’s good topic suggestions. In general standalone versus consolidated means that that consolidated has the effect of the subsidiaries as well whereas standalone doesn’t.

Diluted EPS also includes the stocks that will be issued as stock options and thus increases the number of shares to decrease the EPS and hence it’s called diluted EPS.

Reply

priyanka shah May 14, 2012 at 11:44 AM

Hi,
I wantd to knw the tax implications for Mutual fund ( equity as well as debt funds, more specifically Liquid funds) done in the name of a Limited Liability Partnership (LLP) firm.
Is it safe enuf to invest in Liquid funds?? I knw MF’s always have a risk, bt practically how safe is the capital in a liquid fund??

Reply

Manshu May 14, 2012 at 5:16 PM

I’m not sure how the two parts of your question tie together, what has tax implication got to do with the safety of the fund?

Reply

priyanka shah May 14, 2012 at 9:28 PM

yeah, they dont tie together. Its tht i m trying to knw more on liquid funds & MF’s in general. i m unaware of these 2 questions, hence these 2 questions together….

Reply

Anu May 14, 2012 at 11:17 PM

liquid and liquid funds are used for short term parking of the funds. these are the tools to generate the better returns or making your money work for you. Since these days the liquidity situation in the market is tight so these funds are generating the 8plus kind of return. although in general it ranges from 6 to 7 % but still better than saving and current account. But one should take these funds with dividend re investment option in order to avoid the short term gain. Talking about risk its almost negligible for good credit quality portfolio,

Reply

Ashok May 14, 2012 at 4:22 PM

I had a random idea. Not sure whether it is a workable, but here it is:

Currently for small-time retail investors, it is difficult to get quality Stock-specific advice (the key word being QUALITY). Either the research reports cost a bit or the free information available on the internet is really of dubious origin and quality.

Given the above problem, I thought of a solution to “crowd-source” the research by creating some sort of an Online Investor Club. We can use tools like Google-Plus for sharing and collaborating. What I have in mind is something like this;

1. Create and Share a G+ circle called “OneMint Investor Club”. If Manshu doesn’t want to dilute the “OneMint” brand name, we can call it something else also.

2. Members join the circle. Since G+ works only for identified individuals, we will not get spammers.

3. At the beginning of every month, we pick up a single stock. Only ONE per month, so as to reduce the clutter. This has to be followed very strictly. If there are more candidates, the top stock can be chosen by voting.

4. One member voluntarily agrees to be the main researcher. Others can contribute to the research. But at the end of the month, the main researcher publishes a report, a recommendation, and the reasoning.

5. There is no free-lunches. If somebody doesn’t volunteer to be the main researcher or doesn’t contribute positively towards the research for a few months, they will be removed from the circle.

We can work out the detailed modalities later also.

How will it help?
1. If not enriching monetarily, we can enrich our knowledge of other industries than our own. For e.g. If the main researcher works in a port, and he/she researches on Adani Ports and SEZ, he/she can bring in a lot of perspective which is not available to people like me. But strictly NO INSIDER INFO.

2. Researching and publishing a report itself would be a rewarding experience in itself for amateurs like me.

What do you or other readers think?

regards
Ashok

Reply

Manshu May 14, 2012 at 5:14 PM

It’s a very exciting idea and I would love to experiment with something like this. Can you create the G+ circle please? I’ll think of how to communicate this to a wider audience and invite people. Thanks Ashok! Let’s see where this takes us.

Reply

Ashok May 22, 2012 at 12:06 PM

Hi Manshu,

It will take sometime for me to try this out. Though I use G+ to “follow” a few public personas and some news sites, I still have to figure out the concept of Shared and public circles . Will let you know.

Reply

Pallavi May 26, 2012 at 1:19 PM

Hi Ashok. I think this is a great idea. I’m sure all participants will learn a lot through this.

Manshu, I can create a G+ circle. Let me know what name should it ? Also, Do I just create a circle in my account or do we need to create a new gmail account for this?

Reply

Manshu May 26, 2012 at 7:21 PM

I’ve created a circle called OneMint Investment Group with my own id and added the two of you based on email address. Let me know if you get the message because I’m not sure if it adds people with email addresses other than Google.

I’ll be away for a few days so there will be a delay in responding but do let me know if you get added or not. Thanks Pallavi, Ashok!

Reply

Umesh May 27, 2012 at 10:02 AM

Hi Manshu

I am interested in joining the group and want to know the details.

Reply

Manshu May 30, 2012 at 5:21 AM

I’ve added you to the circle Umesh. Please let me know if you get the notification and are added, the other two haven’t responded yet but I think they haven’t been added.

Reply

Umesh May 30, 2012 at 11:10 PM

Hi Manshu

Thanks, I received the notification to join your circle. Will do the needful in the weekend.

Umesh

Reply

Manshu June 1, 2012 at 4:26 AM

okay that’s good.

Reply

Umesh June 2, 2012 at 1:08 PM

Hi Manshu

I just added you in Google+ but I must admit that I do not know much about its working etc.

Reply

Manshu June 2, 2012 at 6:17 PM

Thanks Umesh, yeah I need to get used to it as well and we all need to figure out how this group will evolve.

Reply

Ashok June 3, 2012 at 9:25 PM

Hi Manshu,

I got an invite into the email id I had used previously on your blog. Please include my Gmail Id provided with this comment into the circle.

regards
Ashok

Pallavi June 2, 2012 at 10:58 PM

Hi Manshu,
I replied to you with my gmail I’d. Please send me an invite on it. Thx

Reply

Rakesh May 15, 2012 at 5:16 PM

You should write some articles on HUGE REAL ESTATE MARKET in India. Where are we heading?? ARe we going USA / Europe / UAE direction? OR INdia has potential to absorb all the way and will come out stronger and not like these other coutnries faced teh position in REal Estate.

Reply

Manshu May 17, 2012 at 4:41 AM

It is an interesting topic, and I have touched upon these topics a few times earlier and I’ll write about it again when I see something interesting or noteworthy going on in the sector.

Reply

Sanjay May 16, 2012 at 7:32 PM

risks in debt funds.
As I understand, debt mutual fund wont fall in value. So it will be interesting to know of any debt mutual funds which was not able to pay even the principal amount to investor. or any debt mutual fund which showed fall in NAV by 10 % or more. If you include the reasons also that would be great.

Reply

Manshu May 17, 2012 at 4:25 AM

As far as I know there aren’t any debt funds that have had negative returns, but if I do come across something like this then I will write about it.

Reply

ankm83 June 9, 2012 at 12:40 PM

At present debt securities have residual maturity of 91 days or less, are not supposed to market to market; they report NAV of that with accrued interest. SEBI has proposed to reduce this tenure to 60 days. Still, risk of principal decline (due to int rate increase) is very low for short term debt funds due to their shorter duration. Longer duration bond funds like G-Sec funds have highest exposure to interest rate risk and show decline in value due to interest rate hike.

Reply

sameer shah May 17, 2012 at 2:17 PM

Its always said tht whenever near an important goal, de-risking of the portfolio is done, i.e for eg. transfer frm Equity MF to a debt fund.
1) hw many yrs before shd this process begin??
2) Wht kind of Debt MF wud be ideal ??

It wud be really gud if u cud put light on this query

Reply

Dilip Mehta May 18, 2012 at 6:34 PM

I have subscribed for Muthoot Finance NCDs series I & II and also bought them from Market.
I have not received any interest so far till today i.e. 18 May 2012. (They are not of Cumulative Option) When do they pay interest. Other such NCDs from IISL and Shriram Transport etc. paid interest on 31st March 2012. Please let me know if you have any information.

Reply

Ramamurthy May 19, 2012 at 7:02 AM

The next interest dates are
series 1 14-9-2012
series 2 18-1-2013

Reply

R.Ganesan May 19, 2012 at 11:38 AM

I agree with the suggestion from one of our readers that HOME INSURANCE is a subject where many of us need guidance. our awareness on this front is very limited.

Reply

Chandrachur May 22, 2012 at 11:34 AM

Hi Manshu,
Can you please provide your comments and reviews on term insurance policies in 2012?I would like to know which is the best one to go for, in online mode.

Reply

Manshu May 23, 2012 at 6:01 AM

I’m not sure I understand the question correctly, what bearing does 2012 have on term plans, are you asking about new plans specifically or just all plans available?

Reply

Rama May 22, 2012 at 4:23 PM

I completed my graduation in BE Computer Science june 2011 from VTU and i has been struggling to get a job in software industry.. please suggest me what can i do and how can i get the job

Reply

Manshu May 23, 2012 at 5:54 AM

Try some contacts and see if you can create a resume in a site like Monster and get some jobs. It can be hard if you’re just starting out and your best bet will be to tap any contacts you may have in the software industry.

Reply

ABDUL May 22, 2012 at 4:51 PM

I am NRE account holder & now i would like to settle permanently in india & would you like to advise me best investment in India.
Thanks
Regards
Abdul Rashid

Reply

Narayan May 23, 2012 at 2:15 AM

Hi Manshu,

While I was in US, i had bought my company shares under ESPP and held the shares for over 2 years (till 2012, for long term gains it is not taxable in US). However I came back to India last year and sold the shares while I am in India. Now I came to know that even the shares are tax free in US, since I came back to India, all the gains are taxable in India and the income is not treated as capital gains. I have to pay around 20% of gain as taxes with indexation and around 30% of gains as taxes without indexation.

Please write blog posts with your insights on “Tax calculation with Indexation” and “Tax treatment for long term gains overseas”.

Reply

Manshu May 23, 2012 at 5:44 AM

Taxation is a very complex issue and there is a lot that I don’t know about so I generally avoid writing about tax issues. In this case, I didn’t even know that such a situation could arise so I don’t even know where to begin and I’m afraid I’m not in a position to write about this.

Reply

Nikhil May 24, 2012 at 5:35 PM

Hi, Can you post on some of these-
1. India’s balance of payments. What is BoP? Its contents etc., Cap account, current account
2. GDP, GNP- what do they comprise, how are they calculated..
3. Greek crisis simplified-
4. Why Euro was implemented? Advantages, Disadvantages
5.Why is there so much inflation in India and why not in USA?

Reply

Ramamurthy May 24, 2012 at 9:52 PM

It is reported that RBI will shortly thro open market operations release Rs 12000 crores. What exactly is this?Does this mean RBI will print currency notes to this extent?
I also want to know as a retail subsriber I can buy GOI Bonds? Where are the prices quoted?

Reply

J.JAIKUMAR May 25, 2012 at 3:23 PM

Hey Manshu,
I want to invest my emergency amount (expenses of 6 months) in a liquid fund. Pls. guide me which is best. I dont come under tax bracket. My friends say investing in reliance liquid fund has the added advantage because you can withdraw through card. pls. guide.

Reply

Manshu May 25, 2012 at 7:15 PM

Good point, let me think about this a little and write on it.

Reply

Amitesh Kishore May 26, 2012 at 11:17 PM

Hi @Manshu,
Massala pizza or SIP Insure , which would you prefer more?
Take it easy. The trick here is how to make fool of the investors, IFAs and regulators to garner more business at any cost!
Expecting something great on this issue.

Reply

Manshu May 30, 2012 at 5:22 AM

I don’t understand the reference Amitesh…I mean massala pizza or SIP insure? What are you talking about?

Reply

Jibin Gopi May 28, 2012 at 2:16 AM

Hi my question is Why India not purchasing Finished petrol from Gulf rather than buying Crude From there. because Finished Petrol is Cheeper at Gulf.

Reply

Manshu May 30, 2012 at 5:15 AM

That’s not true….in fact India has excess refining capacity.

Reply

J.JAIKUMAR May 30, 2012 at 9:39 AM

Hey Manshu,

1.u have referred your friend to ELSS, but is it worth considering the fact that afterDtc Elss may be scrapped or altered.

2. I dont come under tax bracket, but would like to park my 6 months expenses in a liquid fund. Is it a good idea.

Reply

Manshu May 30, 2012 at 6:29 PM

Yeah, you’re right, it could be but most of this year is still there to buy ELSS and who knows whether the government will find time to implement DTC next year or not. Many important issues like banning of cartoons in textbooks can come up and divert their attention.

I guess you could do that but you also need to consider that the higher interest bearing savings account also give good interest and the safety there is worth considering.

Reply

Anoop Ahuja May 31, 2012 at 6:21 AM

Hi, i want understand how is the FX rate of a currency calculated against the other currency. For instance how of the INR/USD fx rate gets calculated on a daily basis and what parameters g ointo this calculation.

Reply

Manshu June 1, 2012 at 4:26 AM

It is based on demand and supply at that point in time.

Reply

Anusha Shashidhar June 1, 2012 at 12:40 PM

Could you please write a post on “What are the best tax saving (and other good savings) instruments for a beginner under the Rs. 3-5 lacs per annum bracket?” I would be grateful if you can suggest specific instruments (like bank names or organization names). Sorry if you’ve already answered such questions. Simply give me a link to such a post and I will be glad for it.
Thank you.

Reply

Manshu June 2, 2012 at 6:33 PM

That is a good topic – here is a post I did – please go through it and leave any comments you may have there http://www.onemint.com/2012/01/12/ideas-on-tax-saving-schemes-for-first-time-tax-payers/

Reply

Anusha Shashidhar June 3, 2012 at 2:42 PM

Hi, Manshu!
Thank you for your prompt reply. I did go through the article you gave me the link to. But it didn’t really let me know what I must really do. I recently tried some website and this is the investment portfolio that the calculator suggested I make:
Asset Share in %
Gold 5
Cash 12
Fixed Income 30
Large cap equity 35
Mid cap equity 9
small cap equity 9

What I want is a list of organizations that will help me yield good returns, while giving me tax benefit.
This is for your information. I am 22, salaried employee who saves 15K out of 20K every month. I am unmarried, so no dependants. I also dream of pursuing my Masters abroad for which I need 20 lacs (an amount I can’t take from a bank loan with the kind of salary I get, and can’t expect from my parents because they have home loans on their heads).
So, keeping these things in mind, please suggest a financial plan(s) for me that will give me tax benefit and good returns at the same time. I come under the 10% tax bracket. Also, if you think I must invest differently and not as the calculator suggested, please do let me know.
Thanks.

Reply

Manshu June 6, 2012 at 4:49 AM

Anusha,

I don’t advise anyone on what exactly they should do on this website and I have several posts that detail out why that is. As for this calculator, you will find several such calcs on the net and each of them will give a slightly different result.

Investing is not something that can exactly figured out on the comments section of a blog. Now, you’re just 22 and are thinking ahead about investing which is great and puts you at an immediate advantage to a lot of other people but please appreciate that if it were that simple that someone could give you a list of organizations and tell you where to park your money then there wouldn’t be so many hapless investors in the world today.

Reply

Ashish Tiwari June 1, 2012 at 5:35 PM

Hi Manshu,

Regarding Family floater Medical Insurance.

After searching and studying nearby all private n public company on medical insurance ,Its really difficult to finalized which one is best .Kindly help me on same.

One more request to write a article on difference between private and public Medical Insurance.

Thank you.

Reply

Manshu June 2, 2012 at 6:25 PM

I don’t know very much about this myself so I don’t think I’ll be able to write about this.

Reply

abhik June 1, 2012 at 10:15 PM

Hi,
please have a post on home loans and the various jargons involved . Also involving types lending rates and the rates offered by different banks and other financial organizations.
the tax benefit they offer and which secitons of IT Law cover them.

Reply

Manshu June 2, 2012 at 6:19 PM

Thanks for the suggestion, I’ll try.

Reply

b3003 June 3, 2012 at 1:53 PM

In Suggest a Topic i would like to suggest a unique topic which i am sure very very very few of your readers would have come across. it is “social investing”.

it would be really nice social service on ur part if you enlighten ur regular readers and spread the word. (http://www.rangde.org, http://www.milaap.org/ etc.)

However pls note that there are only “social” and not “financial” returns….

Reply

Arvind June 7, 2012 at 11:55 AM

@b3003 – thanks for mentioning rangde.org here.

I’m a Rang De Team member. If anyone has any questions about Rang De, feel free to email us at support@rangde.org or get in touch with us on live help at http://www.providesupport.com?messenger=rangde

Reply

Roshini June 5, 2012 at 7:43 PM

You should write about how a country’s government reduces inflation.

Reply

Manshu June 6, 2012 at 4:34 AM

Hmm yeah, interesting topic. Thanks for suggestion.

Reply

ganesh June 6, 2012 at 7:20 AM

Recently i applied for medical insurance for my wife in apollo.Since my wife was aged around 59 years, they collected a premium of around Rs 16000/= first and then arranged for medical test in a nearby laboratary in chennai. The laboratary collected another RS 1200/= as their charges and said that it would be reimbursed by apollo. Now finally i got the information thro our agent, that apollo has rejected our insurance policy request. Now what will happen to our premium. who will pay the laboratay fees. why should they collect the premium even before medical test is completed, if there is possibility of rejection. Has any body gone through this experience.

Reply

Ramamurthy June 6, 2012 at 12:55 PM

I have a Medical Insurance Policy with Oriental since the past 15 Years. I am 83 and my wife is 75.Both of us are covered. So far right from the inception Oriental have NOT asked us to undergo pre medical test.

Reply

Sidhdharth June 6, 2012 at 2:49 PM

I save about 50k each month and am looking for avenues to invest this in. I already have a term plan and have SIPs of half this amount based on your previous blogs. But am a little wary of putting everything in equity. What are the other options available for a regular (monthly) investment?

Reply

J Mukhopadhyay June 8, 2012 at 7:48 AM

Hi! Please suggest some measures for individual in higher bracket (30%). If the income is around 17 lac pa; one has to pay tax approximately 2.9-3 lac pa. What are the ways to minimize the same.
Regards
J Mukhopadhyay

Reply

Ams June 8, 2012 at 10:03 AM

Manshu,

I was wondering if you have one article on ‘ Stagflation’. Many experts today are feeling that India might head into stagflation for a couple of quarters. I understand that Stagflation happend when inflations accelerates but growth does not. How are they linked with each other and what are the policy paralysis which are creating them.

Thanks,
Amit

Reply

Ams June 8, 2012 at 10:04 AM

Manshu,

I was wondering if you want to have one article on ‘ Stagflation’. Many experts today are feeling that India might head into stagflation for a couple of quarters. I understand that Stagflation happens, when inflations accelerates but growth does not. So it could be good for many of us including me to understand in detail ( or in an easier manner, as you are really good at putting things in easier terms 🙂 ) How are they linked with each other and what are the policy paralysis which are creating them ?

Thanks,
Amit

Reply

Shashank Parashar June 10, 2012 at 12:43 PM

Something on “Retrospective Tax” ?

Reply

Manshu June 12, 2012 at 5:18 PM

Can you elaborate on this – what exactly is this for looks like something for a project.

Reply

Samir Nigam June 11, 2012 at 1:15 PM

Hi,

Is possible to have an article on Tax Benefit on Preventive healthcare offers Rs. 5,000 deduction?

Regards,
Samir Nigam.

Reply

anil June 12, 2012 at 2:23 PM

Please explain Special Drawing Rights (SRD)

Reply

Roshni June 13, 2012 at 10:45 AM

Manshu, can you please let me have some details on the Commodities Market. I’ve googled a bit but your explainations always have more clarity! Thanks much..

Reply

dev June 16, 2012 at 5:50 AM

Hey Manshu,

Can you please shed light on why US is still an economic power despite its huge public debt !

Reply

Manshu June 18, 2012 at 12:26 AM

Very interesting question….let me see how I can address it.

Reply

Inderdeep Sahney June 17, 2012 at 9:30 PM

hi,

can you explain the difference between CPI index and WPI index, and also which is better.

Reply

Manshu June 18, 2012 at 12:14 AM

Thank you for that suggestion, that’s a very good idea and I will have a post on that in the future.

Reply

Sid June 19, 2012 at 1:59 AM

Hello Manshu,
Excellent blog ! Keep up the good work.

I had a query around “$ appreciation(valuation effect) and fall in external debt and $ depreciation and increase in external debt” .. why so? As I understand India has around 50-60% of its external debt in $, so why this anomaly?

Please can you care to pick this topic in some future post?

Thanks in advance

Reply

Manshu June 19, 2012 at 5:08 PM

Thanks a lot Sid!
Sid, if the Rupee appreciates then other things being equal, the value of external debt goes down because we can buy more dollars or euros with the same rupees now and vice versa so there is no anomaly.

If you tell me what makes you think such an anomaly exists then maybe I can get a better understanding of what you are asking.

Reply

Sid June 19, 2012 at 5:25 PM

Manshu,

Thanks for a prompt response. If you see the external debt report by Min. of Finance(GOI) here:
http://finmin.nic.in/the_ministry/dept_eco_affairs/economic_div/External_Debt_QDEC2011.pdf

You will see in the highlights section(point iii) the following statement, which reads and i quote:
“The valuation effect due to appreciation of US dollar vis-à-vis most major international
currencies contributed a decline of US$ 12.2 billion in the debt stock at end-December 2011 over the end-March 2011.”

Now, if dollar appreciates vis-a-vis other currencies of the world, will our external debt increase, decrease ?? and why?

I found the above statement in quotes (“”) rather confusing because if dollar($) appreciates, our debt stock should rise and NOT decrease??? Your comments please.

Reply

Kamlesh June 19, 2012 at 3:38 PM

Hi Manshu,

Could you do a small write-up in Digital Signature?
How to acquire it?
Key vendors/ distributors,
Cost for a single digital signature
Can you a buy a single Digital signature
Renewal fee
Is there a limit on how many times one can use digital signature in a year etc

Manily looking at it from e-filing of tax returns but i think if one has digital signature the usage avenues will multiply.

Thanks
Kamlesh

Reply

Manshu June 19, 2012 at 4:59 PM

Hi Kamlesh,

I really don’t know enough about digital signatures to be able to write on it. I’ll see what I can do but most likely I’ll not be able to write on this topic.

Manshu

Reply

Umesh June 19, 2012 at 5:31 PM

Hi Kamlesh

You can go through the following websites for the required information.

https://incometaxindiaefiling.gov.in/portal/faq_signature.do
https://incometaxindiaefiling.gov.in/portal/downloads10-11/itr/Procedure%20for%20Registration%20of%20Digital%20Signature%20and%20Upload%20of%20Income%20Tax%20Returns%20using%20Digital%20Signature.pdf

I think, after going through these websites, you can do a write up, for the queries you have asked. Post the write up here.

Reply

J.JAIKUMAR June 21, 2012 at 10:20 AM

Dear Manshu,

I would like to have your advice on whether one can invest in NFO OF ICICI mutual fund which says it will invest in US markets. Pls. advise since US markets has not been profitable for a very long time.

Reply

ankurm June 21, 2012 at 10:58 AM

I guess expense ratio will be high due to greater due diligence required for US market, which fund house may not be familiar with. Also you will be exposed to exchange rate fluctuation, if rupee appreciates you will loose money.

Reply

Srinivasa rao June 22, 2012 at 1:17 PM

interest on housing loan not recorded in the last 2 years can i claim in this year

Reply

Deepak June 22, 2012 at 4:10 PM

On the lines of HUF, can we have an article on how to create a trust for minors to officially save tax?
I’ve heard about a couple of times in “Tax Guru” on CNBC but different tax consultants have different opinion on the same. Following are some of the weird things what I’ve been told by the local guys:
1. This is an old provision which is no longer valid
2. It is usually created if you have lot of property
3. This will make the IT department suspicious causing them to open up your files

Reply

deepak louis June 22, 2012 at 5:22 PM

hello
me and my wife are doctors and are moving to toronto, canada for 2 years for a job
we do not have a bank account there yet
what we have are SBI credit cards, but i am informed that if i make transaction there in the intial period (for university fees, buying things), they charge an extra 3.5% currency converion mark up fees
so what is the next best way for making payments there in the initial period?
Are travel cards offered by banks (preloaded with dollars) better in this case?
kindly advice

Reply

Manshu June 22, 2012 at 5:27 PM

Yes Deepak, get in touch with a travel agency and get some Traveler’s checks for higher denomination and then get a few hundred dollars in cash exchanged for smaller denomination spending. Even traveler’s cards will do.

That should set you up for your initial time period when you don’t have a bank account.

Don’t use the Indian credit card, there will be very high charges that you don’t need to incur. Most people who go abroad use the Traveler’s checks and cash combination and it works well.

Reply

Ashish June 24, 2012 at 3:33 PM

Hello,

I currently own a proprietor firm which provides services to US based businesses & receive my income in USD cheques, which I deposit in my Indian Bank Account and is remitted in rupees. I fall in the 30% bracket since the last couple of years. However, I will be shifting abroad for my Masters in Sep 2012 for a minimum period of 2 years. However, I expect the income to flow through during my course of studies and will remain in the 30% bracket.
My questions are:

1) What kind of bank account do I need to setup to ensure that my deposits are made properly and I can use it abroad as well.

2) Does it make sense to take an education loan? I can pay the entire expenses of the education , around 20 Lakhs, using my savings. However, I am thinking that will i get tax deduction and benefit more by paying off a loan, taking into account the tax savings.

3) What kind of taxation will I fall under from next year (NRI??) after my shift and how do I plan it.

4) I would like to continue investments [deposits, funds etc] even when I am abroad studying to build my corpus. What do you suggest for this?

Thank you for your time and consideration.

Thanks,
Ashish.

Reply

Manshu June 25, 2012 at 5:22 PM

Ashish – I think you will find it worth your while to hire a CA or an adviser to answer these questions as he can get into a lot more detail with you than is possible here with my limited knowledge, but I’ll try to give some answers that may help you when you discuss this with a professional.

1. You need a NRO / NRE account once you are a non resident to make deposits, but I don’t know if that can be used for business purposes so you will have to find out how to get business payments for that.

2. The tax benefits that residents get are not applicable to NRIs which will be your status in the next two years based on your comment I think. So again, while there are benefits you need to find out if it is going to be applicable in your situation.

3. Yes, but this is a bit complicated because of the definition that the IT Act has as they birfurcate as resident ordinarily resident, non resident ordinarily resident and there’s one more I think, so again, professional help is required.

4. NRIs have a lot of options, many of the same that residents have, and of course the NRE tax free deposits that yield about 9% or so are a good way to start.

All the best with your further studies!

Manshu

Reply

PP June 24, 2012 at 6:22 PM

What do you think about ICICI Prudential US Bluechip Equity Fund?
http://www.icicipruamc.com/download/ICICI-Prudential-US-Bluechip-Equity-Fund-Leaflet.pdf

Are there similar plans to invest in US from other companies as well?

You can expect the rupee to appreciate eventually – what would be its impact?

Reply

Manshu June 24, 2012 at 6:23 PM

What a coincidence PP – I’m writing that post right now! Will be up later tonight.

Reply

PP June 24, 2012 at 7:04 PM

Amazing! Thanks – look forward to it.

Reply

Manshu June 25, 2012 at 5:08 PM
Shrinivas June 25, 2012 at 7:39 AM

Income implications on premature closure of senior citizen deposit account. I have closed a senior citizen deposit account afterv 1.5 year (feb 2011). 1.5 % penalty has been recovered. Is it possible to adjust same against interest received in that finacial year ( FY 11-12) for tax calculation

Reply

Manshu June 25, 2012 at 5:00 PM

No you won’t be able to adjust this against anything since this is not actually a loss. The penalty results in a lower rate of interest but not in a loss so it can’t be set off against other profits.

Reply

Shrinivas June 27, 2012 at 5:44 PM

What I mean is can the penalty for premature closure of senior citizen account be adjusted against interest received during the year. SBI dose not reduce this from interest. The interest is shown fully paid and tax is deducted accordingly. The TDS certificate also dose not cover penalty recovered. Pl advice how to account this in income tax return.
Thanking you
Shrinivas

Reply

Ramamurthy June 28, 2012 at 1:18 PM

I feel it has to be considered as a Capital Loss and shown as such in the IT return.

Reply

Manshu July 1, 2012 at 9:01 PM

I’m sorry I didn’t understand what you said earlier, this is the first time I’ve heard of this situation and I will check about how to deal with this with a friend, but not very optimistic that I will find an answer.

Reply

Manit June 25, 2012 at 12:25 PM

Hi Manshu,

Could you write something about “Tax implications around cash gift to dependent parents” and utilizing the family to save tax. I have read about it at different forums but would be good if you can share something on it.

Thanks
Manit

Reply

Manshu June 25, 2012 at 4:59 PM

Hi Manit, That’s a good suggestion, let me see if I can write something up on that.

Reply

Fatema Imani June 25, 2012 at 5:22 PM

Hi,

Can you write a post on what are different ways of getting guaranteed CAGR return of 8.5% at minimum for a 10 – 15 year period. I have exhausted my 80C. Also i need to invest approx 5 lacs.

I am in the higher tax bracket.

Reply

Ramamurthy June 28, 2012 at 1:34 PM

I dont know what you mean by CAGR Return. Do you mean Return after Tax? If you are in the 30% tax bracket the desired Pretax Return will be around 11% .Some of the NCD,s will give you that kind of return.But, safety of sucn investments have to be considered. Why dont think of investing in Tax Free Bonds which are safe and give you about 8% return?

Reply

Thennarasu June 27, 2012 at 10:13 AM

Can you write a article with comparison of Bank &Postal R.D. Vs S.I.P. in Debt funds on advantages,return,interest calculation etc

Reply

Ramamurthy June 28, 2012 at 1:45 PM

Manshu,
I have a doubt about your site. I see some comments on which I have some opinions.There is a REPLY Tag on each comment. I tried to avail of this option and typed some opinions and clicked the submit option.My reply did not appear. Why please? Does this mean only You can reply?

Reply

Manshu July 1, 2012 at 8:44 PM

Anyone can reply to the comment and if you see some of your comments above – you will see that even your replies appear like your reply to Fatema Imami. If you see that your reply didn’t appear for some reason, email me at the time and I’ll see if it got trapped in spam. If not, then probably it didn’t get submit in the first time, and you should try again.

Since you’ve had some time in posting comments earlier also I would say it is better to have your comment saved in a notepad somewhere.

Reply

Mitesh June 29, 2012 at 6:47 PM

Dear , Please make a note that the ICICI Prudential US Equity Blue Chip , is the Third Fund of It’s kind, in December Franklin had also launched such fund

Reply

Manshu July 1, 2012 at 7:29 PM

Mitesh, could you please tell me the name of the fund? I can’t seem to find it on their website.

Reply

sameer shah June 30, 2012 at 12:19 AM

Can we have a review of HDFC SL SMART WOMAN PLAN…

Reply

Manshu July 1, 2012 at 7:22 PM

Sure, good idea – thanks for letting me know.

Reply

NIRAJ SHAH June 30, 2012 at 12:27 PM

Dear friend,
tell me next inflation date and RBI mandatory policy date.

Regards,

Niraj

Reply

Manshu July 1, 2012 at 7:18 PM

July 31st is the next announcement Niraj. You can bookmark this page if you want which has the important dates:

http://www.onemint.com/2012/04/17/important-indian-economic-numbers-and-their-release-date/

Reply

Mac July 1, 2012 at 1:51 PM

Hi Manshu,

I am looking for your advice on investing Rs.50000 per year for next 5-7 years. I am mainly looking for an investment (not keen on insurance) which yields after 5-7 years a guaranteed moderate (certainly not high) return. In other words, I do not want to be liable to pay income tax on maturity amount. [I have realized that FY2012-2013 budget has made mandatory to maintain premium to sum assured ratio to be 1:10. Those insurance plans which do not follow this ratio are not exempted for tax on maturity].
What advices do you have for such group of investors?

Regards,
Mac

Reply

Manshu July 1, 2012 at 6:54 PM

Hi Mac,

There are several things you say that confuse me, for example, you say your are looking for an investment, not an insurance but still go ahead to describe insurance provisions which should be irrelevant in your case right?

You also say you are looking for a guaranteed moderate return, but then say that in other words you don’t want to be liable to pay tax – those are not the same things at all now are they? You can get returns after paying tax as well, can’t you?

Also, what’s your definition of moderate returns?

Reply

devendra kumar July 6, 2012 at 11:52 AM

Insurance and investments are two different things. Never made investments in insurance policy of any type. Paying income tax is not crime. your best investment plan is bank RD and nothing else for the time horizon of 5 to 7 years. And if you are in higher tax bracket you can opt FMP. In FMP you get benefit of indexation. For time horizon of 10 years or more equity SIP is best option here returns are totally tax free and highest return. For more details ask me.

Reply

devendra kumar July 3, 2012 at 11:47 PM

dear sir,
I am regular reader of information provided by you through emails and your web. I want to know details about overseas account for trade in us markets and if we buy shares that are listed in us market will we get the dividends of these shares and how.

Reply

Deepak Sharma July 4, 2012 at 3:39 PM

Dear Sir,
I owned a ICICI Pru Life Stage Wealth-1 Plan for Tax saving purpose for 5 years on an yearly installment of 50,000. The agent assured me that at the time of maturity, I will get a sum of Rs 4,50,000.
I don’t know much about this, can you direct me weather its true & if its not what returns i will get if I continue the policy.

Reply

devendra kumar July 4, 2012 at 9:13 PM

If you are regular reader of this blog then you don’t have to ask these types of questions.
Insurance companies are meant for insurance not for investment. Approach insurance companies for insurance only. Never make any investment just because it saves income tax . There are only four investment which are really a investment and saves tax. PPF, Bank FD, ELSS, Infra bonds. Other tax saving schemes are waste of money. For insurance choose term plan.

Reply

devendra kumar July 5, 2012 at 10:28 AM

Just pay up to lock-in period then stop paying future premium start a sip with hdfc tax saver, icici tax plan ie for investments. Take appropriate cover from online term plan of company which offer lowest premium. 10 times of annual income is good cover. Invest 50% of your saving in EQUITY MF sip and rest in bank FD, RD , Liquid funds , FMP. For more details send your age and goals then I can send you more details. bhandoria@yahoo.com

Reply

devendra kumar July 9, 2012 at 4:33 PM

First fix your goals ie child education, home, child marriage ie. For goals more than 5 years choose equity mutual funds. For goals less than 5 years choose bank RD, bank FD, liquid funds, FMP. Always have at least one month salary in liquid funds for emergancy. Take insurance from online term plans of different companies ie bharti axa life. choose plan on the basis of premium . Always fill true information in insurance. For mutual fund please take help of expert because mutual funds have many variety here you need help. You may also contact me. For bank FD, RD direct check websites of banks.

Reply

Deepak Sharma July 5, 2012 at 10:07 AM

What should I do in such case if I have already invested. Should I continue or stop it

Reply

devendra kumar July 5, 2012 at 6:00 PM

Stay invested up to lock-in period and then get out.

Reply

Gaurav Malik July 5, 2012 at 12:38 PM

Hi Manshu,

Can we have a detailed analysis on Debt Funds and the type of funds in India. There have been a lot written about it here and there and Value research has given various stars. But if you actually see Debt funds have ideally become popular over the one year period. Well should one invest in them or not?

Reply

Madhav July 6, 2012 at 11:47 AM

Hi Manshu,

The articles were really good and helpful.. it would be useful for us if you can post an article on insurance policies.. which one would serve better.. Life insurance policies or Endowment policies.. Thanks!

Reply

Manshu July 7, 2012 at 5:53 AM

Hi Madhav,

I’m guessing you are a new reader 🙂 true?

Reply

Madhav July 7, 2012 at 10:16 AM

Yes Manshu!

Reply

Manshu July 8, 2012 at 10:05 PM

I say that because I’ve been writing about not mixing insurance and investment for ages now and this type of question hardly ever crops on OneMint. You’re much better off taking a term insurance for your insurance needs and then look at different investment products that will suit your investment need.

Reply

Madhav August 5, 2012 at 11:47 AM

Hi Manshu,

Since i am new to the investment arena, i have decided to play safe with investing in MF’s through SIP monthly plans. I have been monitoring funds for quiet some time and noticed that prices are fluctuating day by day.. My question now to you is whether i can wait for some more time or immediately park my money in the funds which i have identified. This question comes on the background of bearish market that we are facing..

Another option what i thought is to deposit my money in bank FDs for a short span and once the market rejunevates i shall start investing into MF’s. Which one wud be a better option..kindly provide your views.. Thanks!!

Reply

Madhav August 5, 2012 at 11:48 AM

Hi Manshu,

Since i am new to the investment arena, i have decided to play safe with investing in MF’s through SIP monthly plans. I have been monitoring funds for quiet some time and noticed that prices are fluctuating day by day.. My question now to you is whether i can wait for some more time or immediately park my money in the funds which i have identified. This question comes on the background of bearish market that we are facing..

Another option what i thought is to deposit my money in bank FDs for a short span and once the market rejunevates i shall start investing into MF’s. Which one wud be a better option..kindly provide your views.. Thanks!!..

Reply

Saurabh July 7, 2012 at 5:35 AM

I am looking for a retirement plan please instruct me in subscribing a plan where I can get fixed pension after completing 60 years of age.I am now 26 years old.

Reply

Manshu July 7, 2012 at 5:40 AM

I think right now it is just better to invest in products like mutual funds, FDs, bonds etc. without worrying too much about a pension plan, specially because there aren’t any good pension plans available in the market.

When you have enough money, which I’m sure you will do since you’re planning so early, you can invest it yourself to build a regular monthly income.

Reply

Dhruv July 7, 2012 at 5:04 PM

Recently I read a news about german 2 year note yields fell to record lows of minus 0.01 percent , what does this actually mean(the minus sign on bond yields)?

Reply

Manshu July 7, 2012 at 7:35 PM

The German government issued two year bonds with a zero coupon which means that it has no interest rate at all. People bid it at an auction and bought it slightly less than the face value so they can make a little money when the bond matures at face value. But then briefly, while trading the bond’s market value went over the face value which means that people were paying more for the bond than they will get back hence getting a negative yield.

Reply

Deepak July 9, 2012 at 11:46 AM

Its OK to not mix investment & insurance together but what preferably plans should be taken individually..?

Reply

indubala.C July 9, 2012 at 8:21 PM

Why is the gold price soaring so high? is there no end to it ?

Reply

Ishwer July 9, 2012 at 9:38 PM

Please suggest which is the best Tax free Bond for buying from secondary market today

Reply

biswas July 10, 2012 at 7:37 AM

There are many articles on how to plan for retirement.It will be nice if you can discuss on how to plan once one is retired.I am likely to retire in couple of months.I will receive a large lump-sump amount.I don’t know what to do except for FD.An article on this topic will really be appreciated.

Reply

Naresh July 10, 2012 at 9:02 AM

I am keen to know what documents or contracts we need to make when one lends to a friend a ‘debt to be repaid’. and how de we p;an taxes if we charge an intrest

Reply

DILIP MISHRA July 10, 2012 at 2:20 PM

Dear Manshu, thanks for your valued posts on various topics, which are simple, straight & useful.
Could you pl.post an article on financial planning meant for “Recently retired/awaiting to just retire, with no pension & have to support themselves till the end.
pl.advise Suitability of Metlife Monthly Income-7pay & LIC’s Jeevan Tarang & IRR/NET RETURN .
Keep doing good work…….Regards.DILIP MISHRA

Reply

jmm July 11, 2012 at 9:22 AM

I am 59 ,recently retired , not getting any pension, also do not have any medical insurance. I have invested my retirement benefits in FDs, post office schemes etc , that the only source of income.
me & my wife live in our own flat and present average monthly expenditure is around Rs 28000/per month. Assuming yearly inflation rate of 10%, In the year 2024, when I am 71 years, my monthly expenses will be approx. Rs 88000/ per month. to get a monthly income of approx. Rs 88000/month from 2024 onwards
a.How much should I invest now,
b.Where should I invest?
would be thankfull if you could give suitable advice

Reply

Ramamurthy July 12, 2012 at 1:14 PM

To get a monthly income of around 88000 pm in 2024 you may have to invest around 80 Lacs to 1 crore now .This amout can be invested in Corporate FD,s ,like Tamil Nadu Power Finance,HDFC etc which are safe and gives you a return of 10 to 10.75% p a . After Income Tax your savings have to be rinvested in these FD.You may also think of getting 30000 Rs to 40000 forlife time if you go in for Reverse mortgage Scheme from Central Bank Of India.I dont know the market value of your residence which you now own and occupy,This is relevant because based on this info the Bank will allow the monthly payment which is in the form of Annuity.You can also invest in Jeevan Akshay Policy of LIC which is an immediate annuity payment scheme.There are several options ,but NON return of principal will fetch you maximum return which may reach 14% depending on your age.

Reply

Manshu July 17, 2012 at 5:19 AM

Sir, this is a different but fascinating question, I’ll try my best to answer your question in a post but that might take some time.

Reply

AJIT KULKARNI July 15, 2012 at 7:29 PM

Iam aged 52 year old & had invested in different Insurance policies and deposits over a period of 10-12 years from my salary savings& reinvesting the same money on maturity is now approx amounting to 12,lacs when I surrender & with draw deposits from sweep in HDFC. Now i feelits to invest in a secured place where to invest at one place so as to get a benifit and Return on my investment for the total amout of rs 12 lacs.
M/S TATA STEEL Perpetual Bonds was suggested by my advisor at favce value of 11.40 lacs on line throu demat shall fetch RS 1,20,000 PER ANNUAM payable in Sept & March every on the samme date & interest paid is taxable Is it safe & ok please advise.

Reply

Manshu July 17, 2012 at 5:05 AM

I don’t give out personal recommendations in this blog but here’s a post that lists out some instruments with a few notes that may help you make a decision.

http://www.onemint.com/2012/07/05/list-of-10-safe-investments-in-india/

The only thing to keep in mind about the Tata Perpetual Bonds is that they won’t be redeemed by the company so you will have to depend on the market to liquidate them if you ever need part of the principal back. You need to check with your adviser if he thinks liquidity is going to be a problem or if he thinks these bonds can be sold easily.

Reply

Anusha Shashidhar July 15, 2012 at 9:49 PM

Manshu, where do you suggest I stash away a small amount of Rs.25,000? I don’t really want it for any emergency situations. Is it advisable to stash it in equities? Or do you suggest an FD because it is a small amount?

Reply

Manshu July 17, 2012 at 4:48 AM

I’m sorry Anusha but for reasons I’ve gone into several times here on the blog, I don’t give out any personal advice.

Reply

Vikas Pandey July 16, 2012 at 11:16 AM

I recently read your article about ” where does govt get the money “. the article was extremely good . It described the contribution in a a very good Pie chart

In the same league I am curious to know ” In the total Indian stock market , what is the percentage share of FII , DII , HNI , Retailers and others ”

Vikas

Reply

Manshu July 17, 2012 at 4:37 AM

As far as I know that information is not available anywhere Vikas. Sorry.

Reply

rakesh thakur July 17, 2012 at 10:37 AM

Hi Manshu,

Your posts are fabulous and so no areas of improvement to recommend there.
Just one request, if you can include the question/queries posted by the readers, it would enable us to link the answers posted by you. sometimes i get lost as to what the original query was.

Thanks
Rakesh Thakur

Reply

Kartavi July 17, 2012 at 8:16 PM

Manshu,
You have posted on the topic ‘opinion on gold’, twice (March-09 and on October-10).
I think its time to review the opinion again. Please review in terms of indian rupee (and not USD) since whenever gold had come down (in USD) it has not down in INR due to Value of the rupee against USD. “Aare bhai, bahar ki duniya me sona gire ya chade… apne yanha to badhta hi hai…to chhote INVESTER ko kya karna chahia ?”
Regards,
Kartavi.

Reply

ankurm July 17, 2012 at 9:35 PM

Hi manshu, since we have been discussing about bond products quite often. Can we do a post on deepening of indian bond markets, analysing trading volumes on bonds, whether liquidity is good enough. Ive noticed, trading volumes are going up for few bonds

Reply

Velusamy July 18, 2012 at 3:44 PM

Hemant,
I saw this link.
http://www.moneycontrol.com/news/local-markets/sensex-quiet-aheadexpiry-ril-tcs-hul-sterlite-dip_481123.html
“Sensex quiet ahead of expiry; RIL, TCS, HUL, Sterlite dip”

What is expiry here ? and when ? How we can find them ?

Reply

Umesh July 18, 2012 at 7:39 PM

Hi
Expiry here is the expiry of the contracts of Futures & Options (F&O or FNO) that are traded at BSE and NSE.
These contracts expires on last thursday of the month like Nifty july expiry will expire on 26.7.12 the last thursday of the month and so on.
You can get a fair idea on the subject in websites of BSE and NSE or brokerage houses like Sharekhan, ICICI direct, HDFC securities and many others.
Also Manshu has written a series on “Introduction to Futures and Options”. You can go through it also.

Reply

Kartavi July 18, 2012 at 3:59 PM

Manshu,
No insurance company offer term plan for woman who is house wife. Please give a detailed post on it.
Regards,
Kartavi.

Reply

Velusamy July 18, 2012 at 6:14 PM

Yes. My wife wants to get insured. The insurance company said no to her and my wife argued with them to the most but failed to make it.
The company is not providing Term plan to house wife as it can be used by in-laws as a source for lump sum amount 😀

Reply

J.JAIKUMAR July 18, 2012 at 4:09 PM

What is the difference between investing in gold etf and egold. I want to invest for say 10-20 years in sip and take the returns(i dont need phy.gold after 10-20 years)

Reply

Umesh July 18, 2012 at 7:20 PM

Hi
Gold ETF is Gold Exchange Traded Fund, and is issued by various fund houses and ETF is traded at NSE while E Gold is traded as a commodity at National Spot Exchange Ltd. (NSEL).

Manshu has written quite a few posts on Gold ETF and Egold. So please go through these posts with comments, so as to get a fair idea on these two investments. And I hope that your query will get answered in these posts. Do post your query there, if remains any.

Reply

Akshata Salunke July 21, 2012 at 8:56 AM

Dear Sir/Madam,

I wanted to ask, how does meaning of name Akshata co-relates to RBI lending rates to commercial banks.

Regards,
Akshata

Reply

Anusha Shashidhar July 22, 2012 at 2:38 PM

Hi, Manshu!
Could you do a post on the best books on investment for beginners?