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!
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Of late i have been reading newspaper reports to the effect that the networth of all the nationalised banks are eroding fast. NPAs ( non performing assets) have been increasing very fast. But the word has been camouflaged. Now it is called Restructuring of loan from big business houses. In the name of restructuring most of the loans are being writturn off. King fisher case is the only one which has come to public domain. Number of private power producing companies are on the verge of collapse.
Now, will it lead to a situation like united states. Will the leading banks collapse. IF so what will happen to our fixed deposits. I am sixty years old. I have no pention benefits. All my lifetime savings are in banks. I have heared many pathetic stories about US elders losing all their savings in the recent bank bubble there. PLEASE CLARIFY.
ganesh: people in US do not lose any deposits as they are guaranteed by the FDIC (similar program to RBI’s Deposit Insurance and Credit Guarantee Corporation) upto $250,000 per depositor per bank. So even $1M can be completely insured by spreading the funds over 4 FDIC member banks. Banks that go under are sold to other banks and FDIC overlooks the entire transfer. The stories you may have heard about US elders losing their savings are most likely referring to investments in retirement accounts (401K) that invest in market/debt funds. You can also completely insure your bank deposits if you pick the right banks and spread your deposits over these banks. Each account will be insured for Rs 1,00,000 per depositor. visit http://www.dicgc.org.in for more details.
Thanks for your comment. But if i understand the provisions of the said insurance correctly, it means insurance company will pay me only one lac as compensation, even if my fixed deposits in total is worth more than a crore in a particular bank( including it’s branches). If i were to distribute my deposits over a number of banks with individual accounts of one lac each, where will i find banks to do so. Is it practicable. Practically this insurance reduces to no insurance at all. As you rightly mentioned in your reply, in USA the insurance coverage is for a sum of 250,000 dollars and it seems reasonable and decent.
I have a big task ahead of me! I am NRI and having property worth one crore. I do not have any liquid cash and loans upto 35 lakhs. I want to settle in india in the next year and i want to square off the loan before landing to india and sell the property and encash the money. i want to retire after that! In this regard, i have few questions.
1. Is it worth squaring loan now? because, if i did not square off, then i have keep the property. so, my encashment will fall.
2. Where to park the money and to retire peacefully!?
3. I am 42 year old.
4. I will do some small job to push off my time.
5. What are the tax implications on these matters?
6. My idea of above is workable, practical and meaningful?
7. Is it wise to do this way?
I am greatly confused and i put this point across forums and did not find any meaningful answers. Hope you/readers will do that.
regards
I would like to know about the NFO uti credit oppurtunities fund which is open till 8th Nov, is it worth investing in it? Please let me know the pros and cons of NFO in general and specifically this NFO.
Hi Manshu,
For someone who is thinking of regularly investing in mutual funds over a long period of time, is it worth considering becoming an MF agent himself/herself (by clearing the exam, license, etc.)? Any idea as to what might be the minimum annual investment required and of that, how much would one get back (in form of commission)?
Thanks!
I want to ask a question under tour popular post regarding Govts printing money and getting rich.I do not how to do this.Can you please help me out?
Sir you may leave a comment on that post or just here, I’ll answer it.
I agree that no country can just print money and get rich because printing more money will lead to inflation.
Paradoxically,USA is currently proving to be an exception to this rule.It is pumping in more more of paper money into the monetary resources of USA. YET THERE IS NO INFLATION.The consumer price inflation rate is more or less steady 2%.Can you please throw some light? .If I am right Japan also is in the same situation.
That’s because America successfully controlling world economy by making US$ as global currency. Entire world need Petrol, every country has to shed blood and sweat to produce high goods to meet America standards for their export and return they give color print outs in the name of US$. They have to use this hard earned US$ to procure Petrol which is a basic commodity for every nation.
I don’t understand in international market every item is valued against US$ most of transactions happens in US$ even though both buying and selling country is not US. Which keeping US in big advantage.
As US printing currency it’s causing high inflation globally even though it’s not affecting them. I hope soon some one will start currency index (like BSE/NSE index) where all major currency part of that index.
Does this mean that by printing more and money USA is becoming richer?.If so economics books have to be re written:::
Hi Ramamurthy,
US federal bank prints money. Then it buys bonds from US government in exchange of freshly printed money. So US federal bank has US government bonds and US government has debt. But US government has never thought of decreasing the debt it owes. In fact, every year the debt is increasing. The interest rate on the bonds are just around 1% or 2%
In that sense, US government has obligation to pay back money if a bond matures. But the money is paid by issuing new bonds. So the cycle continues.
US government is holding debt but it surely able to give its citizens a very good lifestyle because of dominance of US$ in international transactions.
Thank you Sir.
No one has given a definite answer to my question”why the inflation rate is steady at about 2% in spite of repeated heavy injection of printed or paper money into the economy” Obviously injection of money has NOT at all hurt US economy.This is contrary to all existing text books on economics.
How useful is sale of gold coins from Post Office. What are the pros and cons in it. Is this a good option to invest in Gold as we already have e-gold options. How differentiate between Post Office gold and e-gold?
The basic question, why should Post Offices should sell gold coins? Leave them to their core business, receving and distributing postage. They have shortage of staff. They should not be forced to take up bank business like Savings, fixed and recurring deposits. No insurance and provident fund business. Selling gold should be the last thing they are to be entrusted with. Let the finiance business be handled by the public sector banks. Leave the Post Offices to the business it knows best, i.e handling postage, that is its core competence.
Can any financial company dump its riskier assets by launching a new mutual fund which will hold this riskier assets after short span of its formation?
To give example, if ICICI owns few stocks in US equity market and ICICI realizes that US market is going to under perform for next 2 years. Can it dump its holdings by floating a mutual fund? I understand that ICICI have to sell its holding to open market and ICICI amc would have to buy it from open market but I think it can be easily done for stocks which have very low liquidity.
Also, are bulk deals allowed in debt/equity market for mutual funds in India?
Lot of black money is supposed to be in Banks located in Swiss,Caymen Islands etc.My question is
1.Will these money kept abroad help the economy of those foreign countries and if so,how?
2.Can an Indian account holder of such money, invest in acquiring assets in the foreign country?
If not what is the purpose of holding such money in foreign banks unless he desires to bring it back to India thro Hawala route?
3.Is there any route other than Hawala,thro which the black money in foreign banks can come back to India?
Lot of talk is going on with corruption in India.Corruption is of 2 kinds.Major and Minor.Major is the corrupt money earned by the politicians etc running into several crores which normally is kept in foreign banks.The minor is in smaller sums small time officials receive money for favours rendered.
What happens to the money received and what are the consequent effects on the Indian economy?.I feel the Major corruption money which gets transferred to foreign countries and which do NOT come back to india is a loss to Indian economy.What remains in India is not a loss.It just means a mere transfer of Indian rupees from one pocket to another.Am I right?
Please dont assume I am advocating corruption. It is very bad as the consequences need not be always economical.
Hi Manshu,
I would like to know how daily dividend and monthly dividend funds works. As far as my knowledge companies may declare dividend only at the year end ( some times interim). So I am confused how mutual funds are able to provide daily dividend. Please clarify.
Thanks
What does it mean when a company has positive operating income but a negative net income? To my understanding the these two numbers differ only by the taxes and interest to be paid. Does that mean the company has lots of debt? Is it a good idea at all for one to seek employment with such a company, given that the person has a median financial profile (in terms of savings and debt)?
Hi,
There seems to be confusion about under what all circumstances is EPF withdrawal allowed. And secondly what is the tax liability on the withdrwal.
I have heard tha one can withdraw PF for childrens marriage, house construction purposes.
And tax liability on a EPF fund which is older than 5 years is Zero but for below five years it the person needs to pay tax.
It will be nice if you could clarify this or cover this in a post.
Thanks, Anshuman
can a NRI repatriate immediately all inheritance resulting from bank deposits where he or she was a nominee.
can a NRO A/C BE CONVERTED TO NRE A/C
can an inherited amount be kept in NRE A/C
Thanking in anticipation
R RAO
Hi Manshu,
Came across your website when I was looking to understand about NRE and NRO accounts. How does one use these accounts in a situation such as this one – I need to sell my house worth Rs. One crore in India and need to move it for my use in the US($). Limits on how much I can carry out of the country at time, pros and cons of investing it in India in the present financial climate, tax burdens, burden of converting it back and forth INR – USD – INR – can you please throw some light on this?
Thanks a million!
I understand that now it is possible to transfer funds from a NRO account to NRE account What is the exact procedure. what are tax implications. For a senior citizen who has become an NRI recently and who wants to convert his Resident account to NRO/NRE account with no foreign income, Is it possible to transfer his funds from a resident account directly to NRE account or first the resident account needs to be converted to NRO account.Ultimate goal is remittances of funds abroad. At what stage taxes have to be paid ? the funds in resident account are lifetime savings in the form of FDs etc and thus taxes have already been paid and taxes are regularly paid on interest income and pension etc. then why taxes again for transfer to NRE account?
I am sure this topic has been discussed to death over the ages; but just want to make sure that my understanding is right.
TAX SAVINGS.
1. Section 80C (and its siblings) allows an exemption of up to 1L rupees on investments annually.
2. Repayment of home loan of up to 1.5L rupees is exempt from tax annually.
Is that correct? Is there anything else I can do to reduce the taxable amount of my income?
For eg.: If my gross annual income is 10L and my total annual expense is 4L, is there something I can do to put the remaining 6L in a pot that is exempt from tax?
Just recd a email:REC Tax free bonds are open from 3rd Dec.Retail int rate 7.72% for 10 yrs & 7.88% for 15yrs
Thanks for the comment Manish, just did a post on that earlier today which can be found here. http://www.onemint.com/2012/11/28/rec-tax-free-bond-issue-2012-13/
I am 83 and my wife is 75. Is there any life Insurance policy which we can take?
I am not aware of one you could take but do you have dependents at this age that you need life insurance for?
While I understand the share market I’m no expert and rely mostly on the usual investment instruments. I was suggested to invest into a PMS (managed by Alchemy) to get better returns While I’ve been given a report of their earnings, Im not sure how to interpret the numbers or which numbers should I give more focus to. It would be great to know your opinion on PMS in general and what to look out for. Thanks
Reliance has just launched a my gold plan. the website is http://www.reliancemgp.com/
I am not sure how good is this plan compared to ETFs/E-Gold/Gold Coin from Tanishq etc..
Please give it your attention. Not sure if someone should go for it. Need your opinion for the same.. please note that their FAQ section is quite extensive. you can navigate it from the products section- “products->Frequently asked questions”
Thanks
Pratyush
I will like to add one more, for sale and purchase of Bullion (Gold and Silver). The website is http://www.bullionindia.in/index.aspx
Finkurve Bullion Private Limited (FBPL) was formed with the objective of promoting SPOT trading in bullion across India. The company plans to launch several bullion-based structured products in near future. Bullion India is one of the structured products that have been launched by FBPL to offer retail customer an opportunity to own gold and silver bars in small denominations at the lowest price.
It provides an online system to its members to buy, sell, hold and redeem these bars in a simple, easy and a convenient manner
Finkurve Bullion Private Limited is jointly promoted by NCDEX Spot Exchange Limited (NSPOT), RiddiSiddhi Bullions Limited (RSBL),and Finkurve Financial Services Limited (FFSL).
Please put down your experiences, if someone has invested there.
The price of gold and silver is reasonable, as well as the terms of business and delivery. Is available in small quantity as well. There is no brokerage on sale/purchase (only a ask/bid spread, that too is small and reasonable)
Manshu/Shiv, I shall be thankful if you please write a post on this form of investment.
Thanks
Could you pls write about retirement planned options..
similar to this but specific to India: http://www.onemint.com/2010/02/26/retirement-saving-options-for-early-retirement/
I think apart from the senior citizens savings scheme and the extra interest that senior citizens get for fixed deposits, there aren’t really many options for retirement investing. The regular options work for seniors also.
If the Senior citizen is having his own residential house and is occupying the house he/she can consider Reverse Mortgage scheme. Under this scheme the retired person can get an additional income while continuing to occupy the residence.
I don’t think that is such a great idea as you don’t want to risk something like your house for extra cash. These reverse mortgages were also a problem and sad effect of the real estate crisis in the US.
What is the risk you anticipate please?My understanding of the real estate problem in USA is excessive lending of money on real estate without adequate security.I do not think it has anything to do with reverse mortgage.In reverse mortgage in India the maximum amount of loan is Rs 1Crore and only 60% of the value of the property is given as a loan.The lender is also at liberty to reset the value of the mortgaged property.
Same thing that happened in US, property prices go down and people are stuck with one more liability.
So in your opinion I should not go in for reverse mortgage from say State Bank of India because the Bank may go bankrupt.I am sorry I am not that pessimistic please.
Sir, I think I’m not explaining this correctly as I didn’t mean to imply that SBI will go bankrupt. Here is an article about this in an American context which focuses on malpractice but touches upon other aspects also. I think you will find it useful.
http://www.nytimes.com/2012/10/15/business/reverse-mortgages-costing-some-seniors-their-homes.html?pagewanted=all
Thanks a lot.I read the article and the comments (most of them adverse).The economic environment in India and USA are totally different.The social security in USA is completely lacking in India.A retiree in India without pension is just on his own. So he has look for options in addition to interest on Bank FD to meet his expenses.
He can sell the house he has and use the sale proceeds to buy a cheaper accomodation leaving a surplus which can be invested in FD.But this involves in Capital Gains Tax which can eat substantially into the surplus.So he has to compare this income against a income from Reverse mortgage scheme.I believe Central Bank of India have a Reverse Mortgage scheme which gives an attractive annuity for life.
Hi,
I would like to know about Financial scam which has happened in Domestic (India) and International maket. For eg: Harshad mehta, Ketan parekh, Long term investmnet co, Bear stern,etc.
Thanks,
Satyam Chawla
This is just too broad a topic and I’m not sure what value it’s going to add except perhaps as a list of some of the biggest scams, I’m doubtful that I will write this post. Sorry.
Hi,
as we all know that around this time of year, most of the salaried people think about 80c investments.
Could we have a post on LIC Single Premium Plans. (mentioning what are features we should be looking for and which features we should avoid and which is best plan available.)
Thanks!!
Hi Manshu,
If you have covered this topic in any of your posts earlier then please provide me the link.
I tried searching this here in archives but could not find it.
Hi Shankar
I have written these four posts on LIC plans, if you had any additional product in mind, please let me know and i’ll cover that.
http://www.onemint.com/2012/03/05/a-few-thoughts-on-lic-jeevan-vriddhi/
http://www.onemint.com/2011/10/25/lic-bima-bachat-review/
http://www.onemint.com/2011/11/23/lic-jeevan-saral-review/
http://www.onemint.com/2011/11/07/lic-whole-life-limited-payment-policy-review/
Jeevan Bhima please?
I can’t seem to find its info anywhere, does it still continue?
Manshu
Let me first say thanks for a very useful blog. I stumbled upon it and it has been very educative. I have a question about Mutual fund NAVs. The theory is that the NAV is computed based on the underlying assets minus the expenses. However from an investor’s perspective, this isn’t transparent. I don’t know the exact assets underlying the fund on a given day so cannot correlate it to the movement of the index.
Could you let me know if there are controls / audits in place to prevent the manipulation of the NAV?
Sarosh
What is Supernormal profits?? Whats the difference between normal and supernormal profits??
can someone shed some light on why hind copper shares were sold at a discount by the government..? which has resulted in the share price to crash by more then 40%..
It was not really a discount because there were hardly any shares trading in the market and you couldn’t rely on that price for anything. Details on this post.
http://www.onemint.com/2012/11/22/does-the-40-discount-on-hindustan-copper-shares-mean-anything/
Leave a comment there if you have any questions.
Hi, Manshu!
Could you please write about taxation and savings for small start-up companies?
Hi Anusha, Sorry but this is one topic I know nothing about.
I hear a lot about the growth rates falling from a high of about 11% to 5.5% in a couple of years.
As an ordinary senior citizen with no pension,my own net worth during this period has shown an INCREASE of about 15%.My investments are in Bank FD,Corporate FD,Annuity with LIC,NCD,s and Equity shares(about 15% of total net worth).During this period I have seen that the life style of the so called poorer section has also improved a lot.Of course my experience of the poorer section is only of the urban poor.I dont know any thing of the rural poor except what I read from the News papers.Can you please do a post how the country,s Growth affects the economic life of an ordinary citizen?
The big mistake you are making is comparing nominal growth to real growth. The GDP numbers that you are talking about are in real terms, i.e. nominal minus inflation, and your portfolio is in nominal terms only, i.e. you haven’t reduced inflation from it (most probably).
If you were to just see nominal terms, GDP has risen more than 15% in the last two years.
For the last part, of course it affects everything, people’s purchasing power goes down and what you could easily afford a few years ago becomes a struggle now. I’m not sure what type of article is necessary on that.
This is a bit lengthy.I hope you have the patience to go through.
I did not know GDP growth data is adjusted for inflation.Thanks for the input.
I have my reservation about the inflation data.According to Govt it is fluctuating between 10 to 7%.My point is this figure is not universally applicable to all citizens of India.Each person has to work out his own inflation growth as it depends on age,no of dependents,life style,mortgage payments,assets etc.My own inflation growth(normal monthly expenses) is around 2 to 3%per annum.
About my portfolio(net worth) valuation I do not think I have to adjust it for inflation.I will tell you why.My net worth is built out of my savings.The savings is after considering
inflation.Do you think furthur inflation adjustment is necessary?
As I have already said the life style of urban poorer section has also shown big increase in spite of lower GDP.
My whole issue is whether we have to agree with all this doom gloom prophets who howl “ALL is LOST” whenever a lower GDP figures are out.
You don’t have to adjust for inflation, but if you have to compare returns then you should compare nominal returs for both numbers.
As for people who predict doom and gloom and all is lost, I actually don’t follow anyone who has said this so can’t really say.
That inflation is high is a real problem for everyone, I’ve recently had some weddings in my family and the amount spent on that on just doing basic stuff is almost twice or thrice what others have had five years ago. The real estate story goes unsaid and India has generally become very expensive in the past few years.
High growth and low inflation is definitely desirable and right now we’re not in the economic conditions that created prosperity during the last two decades.
Hi,
I am planning to start an SIP investment. What are the best MF to invest in? Should I invest via online trading platform like ICICI direct or through some other channels? Please advise.
When you say best MF, what exactly do you know about MFs? Do you know the difference between debt and equity, and that within equity there are different types of MFs?
Hi Manshu,
I have a fair idea about mutual funds. Equity funds are those which invest in stock markets and under them there are large, mid and small cap, index funds, sector focused (banking, pharma) – Also you have categories of growth, balanced etc.. Debt funds generally invests in bonds, Gilt funds etc… I generally find the top 10 Mutual funds in various sites, most of them are ranked based on their returns (1yr, 3 yr, 5 yr).. I also doubt if a fund had performed well in past years, what is the guarantee that it would perform the same in future as well. So just want a fair idea on what parameters i need to look if I want to invest in MF.. Also SIP investment options.. Thanks for your help.
Regards,
Yuvarajan
Thanks for the detailed response Yuvarajan, from your first question it seemed to me that you are perhaps completely new to mutual funds and want a shortcut to invest but it looks like you know a fair bit about these instruments, and that’s good.
I think the problem is saying I want to buy a mutual fund – that’s too broad, and it doesn’t work for most people. The question in my mind should be if you want to buy a debt product or an equity product and then from there on go to mutual funds.
WIth that in mind, you can further look at low expense ratios and performance because say what you may about past performance not being an indicator for future performance, it is just not practical to look at any other thing. I can’t see someone say this fund is performing badly so let me go ahead and buy that.
SIP is no different in the sense that you decide to buy a mutual fund, and then whether you SIP it or buy lump sum is a different decision and the fund itself has no bearing on it. So, you can’t say that this fund is great for lump sum but not for SIP.
I can’t give you an answer to what the best mutual fund will be because that’s not something that has a correct answer.
Hi Manshu,
Thanks for your inputs. I am yet to explore ways in which I can invest in SIP.. I have an option to buy one through my Demat account. Any inputs on the pros and cons of doing this way would be helpful.
Regards,
Yuvarajan
Hi
You said: “I have an option to buy one through my Demat account”
Is it through your stock broker, then just check for the brokerage and other statutory charges (as it adds to a big amount), because if you invest directly to the fund house, I think, you wont have to pay all these expanses.
Hi Umesh,
There is flat charge of 1.5% or Rs.30 (whichever is lower) for every month. I guess this could be avoided.
You can buy directly with the fund house or you can choose someone like FundsIndia who are free and don’t charge even this amount, but if you are going to invest a meaningful amount then probably the Rs. 30 is not that much and the hassle of maintaining one more account is not worth it.
Can anyone write an article on Offer For Sale procedure adopted by Public Sector Companies for divestment please ?
It just like an IPO but is called an OFS because the promoters are offering their own shares for sale and no new shares are going to be issued. Shiv has a good comment about this here: http://www.onemint.com/2012/12/03/care-ipo-review/#comment-296874
The RBI didn’t cut the rates…again
I think it would be an interesting study to see if one had invested Rs. 10,000 in BANKEX one day after each RBI meet in 2012, where would those investments be today.
It is a bit too speculative for my tastes, and I don’t see myself doing that research
I have seen very good comparisons here between investing in FDs Vs Tax Free bonds. Another interesting comparison is between tax saving FDs and Tax Free bonds for investors in the less than 1 lakh bracket. It appears that the Tax Free FDs are definitely better for these people. Tax free bonds as you have repeatedly indicated seems more suitable for higher tax bracket people (30%) and people having surplus funds over and after investing in Tax Free FDs, Stocks, etc. and those looking at investing in the 1 to 10 lakh range as a bulk amount.
I don’t see any point in going for tax free bonds for someone who doesn’t have taxable income. You can get a higher rate from banks which compounds quarterly so generates more. You should opt for that instead.
How Stock Lending and Borrowing (SLB) on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) works ? This information can be useful for investors, who are holding stocks in their demat accounts, to generate a risk-free return. Thanks
I don’t know how this works but will try to see if I can get info and write it. It will take a while though I’m sure.
Detail Info on Reverse Mortgage ?
How Expense Ratio in Calculated in MF’s.
The real value of expense ratio is that it shows what expenses have been charged by the mutual fund on its customers, and it is calculated by dividing the average total assets by the expenses of the fund. Reverse mortgage is when you loan out your house to the bank and get paid for it. Mr. Ramamurthy has brought up that topic here earlier in some discussions.
Both of these are good suggestions and I’ll write about them in the future.
I would like you to write a post about family floater plans mainly for elder parents. I searched online but didn’t find much information about them.
Someone suggested me Oriental Family Floater, which looks fine but could not get find out pros and cons of the same.
I’m not very well versed with the topic so I don’t know if I will be able to write about this but I can try.
I want to know which MIS (monthly income scheme)is better for retired persons -MIS offered by POST office or MIS offered by Bank. Though Banks give more than 9% interst , most retired people incline towards post office MIS.Any advantages of Post office MIS
The higher interest rate one is better – it’s as simple as that. There used to be a time when the interest on POMIS was tax free and when there was a 5% bonus on your POMIS at the time of maturity, but that’s no longer the case.
Respected Manshu , you were supposed describe about option market few month back . Though you wrote about future market, i suppose you had not presented about option market. I just remind you
Dear Santonu, I did have a fairly detailed post on how Options work and that can be found here: http://www.onemint.com/2012/08/27/part-3-futures-and-options-how-do-options-work/
Please leave any comments that you may have there, and we can build a part 4 of the series based on yours and others comments.
Hi! I know that this is not a consumer grievance forum but perhaps you could shed some light on this.
Whenever I have to use online facility (say payment gateway of a bank) to make a payment I have to shell out roughly 2% as transaction charges.{(eg. Citybank payment gateway) for online payment of property tax to MCD (Municipal Corporation of Delhi) or online premium payment to PLI – Postal Life Insurance) While no such charges are payable to LIC using net-banking facility of any bank.
I do not understand why net-banking payment facility is not made available by these government agencies.
Cant you use your credit card for such payments?In Bangalore I pay my property Tax through credit card.No transaction charges are levied.
Please present some thing about grey market, how does it operate , if it is at all illegal ,then why govt/SEBI is not initiating any action
Sorry I’m not knowledgeable about this.
Can you pl.throw some light on Govt.financing and liquidity?
When Govt.finds that it needs cash that it does not have, it has either to raise tax, borrow or print money..Raising tax has some limitations and takes time.Printing money has it,s own problems.So,it borrows.I presume it has to borrow from mostly from Banks and RBI,which it does by issuing Bonds. I know the Banks are compelled to hold some portion of investments only in Govt securities.Are Banks and RBI compelled to buy Govt Bonds at what ever interest rates the Govt choose to give? These are some of the questions which need answers.
Hmmm, I see the question, I’ll have to think through this and write a post. It will take some time as it is just a bit complicated.
I wan’t to understand the linkage between: fiscal deficit and inflation, inflation and lower exports and higher imports, which leads to currency devaluation.
Hi Manshu,
Can you please explain about US Fiscal cliff, what is the motto and what all may be the Consequence to US and the entire world.
Thanks,
Satyam
Hi Satyam,
They have already reached a deal on this so this is a thing of past at least currently, here is the Wiki page that explains this. I think there is not much value in writing about this now.
http://en.wikipedia.org/wiki/United_States_fiscal_cliff
Hi Manshu,
Thanks for the link on US Fiscal cliff. I have few queries:
1. When Govenment borrow money through bonds from public for Capital expenditure then how can they give us returns ? I mean why government calls it as expenditure ?Whereas if a corporate borrows money they invest in either there own company or invest somewhere to give us return.
2. Which country do have fiscal surplus ? Is it good to have fiscal deficit ? Why do China have fiscal deficit when they are growing by 9 % YOY ?
Hi, Yesterday I met a friend of mine. He had Invested in Company Fixed Deposit Birla Power of Yash Birla. He had been to their corporate office for maturity amount. He was informed that they do not have money and so cannot repay now. He asked me whom should I approach? I think this topic needs a discussion .
Hi Manshu,
It seems that the “direct” plans of Mutual Funds seems to have started without fanfare. An SIP investment made in IDFC MF (on Jan-04) shows me as “IDFC-SEF-DIRECT-Growth”. Previously it was just “IDFC-SEF-Growth”.
And looks like, all old “direct” investors like me, who never had agents have to explicitly switch to this new plan.
Will we have an STCG impact if we switch? Any info is appreciated.
Ashok
I have left my comment here also:
http://www.moneycontrol.com/news/mf-experts/direct-planmutual-funds-good-or-bad_803050.html
From the Franklin Templeton India website ( http://www.franklintempletonindia.com/) where they have published an Addenda for the new “Direct” plans, it seems no exit load charges will be applicable for old “direct” (no-distributor) investors to switch to the new “Direct” plans.
STCG impact is not mentioned.
As per this, there will be an STCG impact for switches. So that means a wait of 1 year before switching. Bad
!!
http://www.thehindubusinessline.com/features/investment-world/mutual-funds/faqs-on-direct-plan/article4302092.ece
Can you pl let me know how to purchase on line, units from Mutual Funds directly.I think this subject was already covered by you,but I am not getting the link.
Hi ,
Please put out a note on the recent SEBI order to allow “informed investors” to directly invest in mutual fund schemes ,thus avoiding any distributor payouts. Please let us know the positives and perils/pitfalls of this scheme .. I also heard that these schemes will have their NAV separately listed ..so will all current schemes also have 2 NAVs or only new funds will follow this route ?
Yes, this is a very good topic suggestion. I will have a post on this shortly.
Sir whether dividend received from stock will be added to the NAV or it will be enjoyed by the Mutual fund institution
Dividends received by the investor will be reduced from the NAV.For example,if the NAV before Dividend is Rs 20,and the dividend is Rs2 per unit the NAV after Dividend will be Rs18.
My question is not related to the dividend given by MF institution .I want to know how the MF institution adjust the dividend they received from stock of different companies where they invest the capital of investrs
The MF house doesn’t keep the dividend for itself Santonu. That gets added to their cash balance and becomes the property of the mutual fund investors.
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