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!

{ 1626 comments… read them below or add one }

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….


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.


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 !!!


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.


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.


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.


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


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?


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.


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.


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.


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


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.


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.


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.


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


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.


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 (

Thank you.


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.


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
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


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.


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


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


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.


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


hemang sanghavi April 3, 2012 at 10:09 AM

dear sir,

now banks hav started charging more than 100% for lockers in banks

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


what a stupid answer….


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.


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.



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).


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.


Roopa April 4, 2012 at 10:04 AM

hi Manshu,
can u write on ICICI child plan,Smartkid premier.


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.


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?


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.


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 ?


Manshu April 5, 2012 at 7:03 PM

I’m afraid I don’t know the answer to any of these questions. Sorry.


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.



Viswanath April 5, 2012 at 4:04 PM

How to calculate the CAGR for a SIP investment?


Manshu April 29, 2012 at 3:43 AM

I have already written about that topic, you can find that post here:


meera parveen April 7, 2012 at 3:05 PM

cash management in shriram city


meera parveen April 7, 2012 at 3:07 PM

tell me the idea about cash management in various companies


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?


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


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.


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.


ashish jain April 12, 2012 at 4:05 PM

Please explain what is credit default swap in layman’s language.


Manshu April 12, 2012 at 5:05 PM

Here is a post I did quite some time ago. You may find it useful.


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 ….


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.


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.

Rajeshwari E


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

Manshu has written many post on Gold ETF and you can search in

Manshu also wrote a post on eGold last January, you can go thro it.
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
And you can have your own opinion about these schemes, whether they are worth or not.


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.


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.


Rajeshwari April 16, 2012 at 10:56 AM

Thanks for your 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.


Manshu April 18, 2012 at 6:11 AM

I’m not aware of any I’m afraid.


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.


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 .


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.


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.


Umesh April 20, 2012 at 1:23 PM

Hi Arum

Thanks for your comments. It’s my pleasure that you find the post useful.


Manshu April 22, 2012 at 8:37 PM

Those were some great points Umesh. Thanks.


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 ?


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.


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.


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.


M.P.Gupta April 17, 2012 at 8:15 PM

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?


Umesh April 19, 2012 at 6:35 PM

Just google “what is repo rate” and you will get your answer.
One link–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).


Thiyagu April 19, 2012 at 11:19 PM


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.



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.


Thiyagu April 19, 2012 at 11:21 PM


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.


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.


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 !!


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.


Thiyagu April 24, 2012 at 1:54 PM


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.


urvesh April 21, 2012 at 7:28 AM

what are various instruments available to raise fund for real estate projects?


Manshu April 22, 2012 at 8:28 PM

Not aware of those and will not be able to write a post on that. Sorry.


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.


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?


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.


Anonymous Coward April 25, 2012 at 1:05 PM

You tell your investor to read this blog! 😉


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?


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


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.


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.?


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.


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 !


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


Manshu April 28, 2012 at 7:54 PM

Thanks for the great comment! Much appreciated!


Thiyagu April 27, 2012 at 7:24 PM


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.

Please clarify.


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


Ranga May 3, 2012 at 5:51 PM

Benefits of investing in government stock. Are there tax benefits?


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).


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?



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.


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!


Manshu May 9, 2012 at 6:48 PM

Hmmm very interesting….I can write about that, will make for a fun topic.


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


Manshu May 9, 2012 at 6:40 PM

I’m sorry I don’t write about individual stocks or what direction they may take.


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.


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.


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 ??


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.


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 ?


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.


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?


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.


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.


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….


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.


Nargis May 16, 2012 at 11:39 AM

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 ?


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.


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?


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?


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.


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