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!

Click Here to Leave a Comment

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1,786 thoughts on “Suggest a topic”

  1. Pingback: PowerGrid FPO Allotment Declared

    1. 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

      1. 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

        1. 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

    1. 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
  5. Pingback: What is the significance of Pre-open session of the stock exchanges we see from 9 am to 9.15 am daily?
  6. Pingback: What are the different types of debt funds in India?

  7. 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

    1. 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

  8. 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

    1. 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

  9. 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

    1. 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
  10. Pingback: How to select a credit card in India?

  11. 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

    1. 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

  12. 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

    1. 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

  15. 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

    1. 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
  16. Pingback: ELSS Mutual Funds: Tax Saving Mutual Funds

  17. 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

  18. 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

    1. 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

  19. 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

    1. 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

  20. 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

    1. 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
  21. Pingback: E-Gold and E-Silver from NSEL

  22. 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

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

      https://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.

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

      Reply

  23. 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

    1. 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

    1. 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

  25. 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

  26. 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

    1. 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

  27. 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

  28. 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

    1. 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

  29. 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

  30. 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

    1. 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

      1. 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

        1. 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

  31. 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

    1. 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

  32. 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

    1. 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

  33. 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

    1. 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

  34. 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

  35. 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

  36. 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

  37. 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
  38. Pingback: Announcements: New Forum and Profiles
  39. Pingback: What is the difference between debt and equity products?
  40. Pingback: Details on Section 80D, 80DD and 80DDB
  42. Pingback: SBI Bonds: SBI Retail Bonds for investors

  43. 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

    1. 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
  45. Pingback: Thoughts on Reliance Gold Mutual Fund

  47. 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

  48. 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

    1. 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

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

          Reply

          1. 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 ?

          2. 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.

          4. 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.

  51. Pingback: Budget: Where does the government get its money from?

  52. 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

  53. 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

    1. 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

  54. 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

    1. 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

  55. 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

    1. 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

  56. 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

    1. 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

  57. 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

  58. 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

    1. 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
  59. Pingback: MOSt Shares NASDAQ 100 ETF

  60. 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

    1. 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

      1. 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

        1. 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

  61. 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

  63. 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

    1. 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
  64. Pingback: International Mutual Funds in India

  65. 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

    1. 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

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

    Reply

    1. 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

  67. 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
  68. Pingback: Capital Gains and Dividend Taxes on Shares and Mutual Funds

  69. 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

    1. 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
  70. Pingback: FT India Dynamic PE Ratio Fund of Funds

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

    Reply
  72. Pingback: FMP: Taxation and FD Comparison

  73. 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

  74. 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

    1. 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

  75. 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

    1. 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

  76. 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

    1. 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

  77. 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

    1. 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.

      https://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
  78. Pingback: How do I design my graphics?
  79. Pingback: Introduction to Income Tax

  80. 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

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

    Reply
  83. Pingback: Sundaram Equity Plus NFO Review

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

    Reply

    1. 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

  85. 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

  86. 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

    1. 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

  87. 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

    1. 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

  88. 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

    1. 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

  89. 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

  90. 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

    1. 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

        1. 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

  91. 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
  92. Pingback: Lack of ETF Options in India

  94. 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

    1. 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

  95. 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

  96. 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

  97. 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

  98. 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
  99. Pingback: IFCI Bonds: Tier II Bonds Review

  100. 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

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

      Reply

    2. 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

  101. 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

    1. 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

  102. 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

    1. 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

      1. 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

        1. 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
  103. Pingback: Wealth Tax Under the Direct Tax Code

  104. 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

    1. 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:
      https://www.onemint.com/2011/05/03/introduction-to-income-tax/

      Reply

  105. 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

    1. 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

  106. 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

  108. 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

    1. 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

  109. 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

    1. 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

  110. 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

    1. 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

  111. 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
    [email protected]

    Reply

  112. 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
  113. Pingback: How to invest in NCDs and Bonds?

  114. 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

    1. 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

  116. 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
  117. Pingback: Top Up Medical Insurance Policies in India

  118. 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

    1. 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

  119. 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
  120. Pingback: India Infoline NCD Review

  121. 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
  122. Pingback: 91 Day T Bills on NSE
  123. Pingback: Tracking and Exiting Non Performing Funds

  124. 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

    1. 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

  125. 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

  126. 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

    1. 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

  127. 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

    1. 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

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

        Reply
  128. Pingback: Recurring Deposits: Tax and Interest Rates

  129. 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

  131. 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

    1. 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

    1. 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

  133. 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

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

    Reply

  135. 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

    1. 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

      1. 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

        1. 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

  136. 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

  137. 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

    1. 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
  138. Pingback: What is a share rights issue and why all the fuss about it?

  139. 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

  140. 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
  141. Pingback: Leading Indian Indices and their Performance Details

  142. 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

  143. 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

    1. 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

  145. 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

    1. 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

  147. 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
  148. Pingback: Nifty P/E Ratio Chart and how to get to this data

  149. 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

    1. 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

  150. 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

    1. 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

  151. 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

    1. 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

  153. 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

    1. 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

  154. 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

    1. 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
  155. Pingback: Why is the Rupee falling?

  156. 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

    1. 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

  157. 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

  158. 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

    1. 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

  159. 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

    1. 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

  160. 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

    1. 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

      1. 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

  161. 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

    1. 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

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

        Reply

  162. 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

  163. 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

    1. 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

  164. Hi Manshu,

    Excellent site!

    Please do a followup post on FMPs esp. the tax implications due to DTC. Your earlier post on FMPs https://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

    1. 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

    2. 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

    1. 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
  166. Pingback: ICICI Guaranteed Savings Insurance Plan Review

  167. 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

    1. 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

  168. 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
  172. Pingback: DSP Blackrock World Agriculture Fund Review

  173. 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

    1. 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

  174. 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

  175. 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

    1. 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

      1. 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

        1. 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

          1. 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 🙂

          2. 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.

  176. 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

    1. 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

  177. 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

    1. 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

      1. 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

        1. 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

          1. 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

          6. 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.

  178. Hi Manshu,

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

    Regards
    Arun Satish

    Reply

    1. 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

  179. 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

    1. 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

  180. 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

    1. 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

  181. 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

  182. Sir,
    I went through What are perpetual bonds?
    This could be better explained by visiting
    http://www.livemint.com/2011/03/22223432/Biggest-debtor-Tata-Steel-turn.html
    http://ktarunmathur.blogspot.com/2011/04/perpetual-bonds-issue.html
    http://articles.economictimes.indiatimes.com/keyword/perpetual-bonds
    http://dir.groups.yahoo.com/group/kottakkalnet/message/1233
    http://www.suchetadalal.com/?id=b36fc446-cd6c-d6e6-4e09bc25fdfc&base=sections&f

    Kindly enlighten me more.

    Reply

    1. 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

  183. 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
  184. Pingback: Too good to be true offers

  185. 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

    1. 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

  186. 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

    1. 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
  188. Pingback: LIC Whole Life Limited Payment Policy Review

        1. 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

  190. 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

    1. I have a post on comparison between FMP and Fixed deposit here https://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

      1. 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

        1. 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
  191. Pingback: How is the Sensex calculated?

  192. 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

  194. 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

  195. 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

    1. 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

  197. 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

      1. 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

  198. 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

    1. 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

  199. 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

  201. 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

  202. 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

      1. Manshu,

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

        Reply

  203. 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

    1. 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

      1. 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

        1. 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
  204. Pingback: When should you book profits?

  205. 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

    1. 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

    1. 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

  207. 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

  208. 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

  209. 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

    1. 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

  210. 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

    1. 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

      1. 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

        1. 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

  211. 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

  212. 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

    1. 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

  213. 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

    1. 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

  214. 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

    1. 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

      1. 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

        1. 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

  216. 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
  217. Pingback: How is GDP calculated in India?

  218. 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

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

    Reply

    1. 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
  220. Pingback: What is the difference between mutual funds and ETFs

    1. 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

  222. 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

  223. 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

  224. 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

    1. 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

  226. 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

    1. 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

    2. 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

  227. 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

  228. 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

  230. 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

      1. 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

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

    Reply

    1. 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

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

    Reply

      1. 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

          1. 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!

  234. 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

    1. 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

    1. 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

    1. 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

  238. 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

    1. 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

      1. 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

        1. 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

          2. 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.

  239. 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

  241. 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

  242. 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

  244. 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

  246. 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

  247. 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

    1. 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

  249. 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

    1. 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:

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

      1. 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

  250. 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

    1. 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

      1. 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

  251. 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

    1. 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

  254. 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

    1. 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:

      https://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
  255. Pingback: How can RBI stop the rupee fall?

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

    Regards,
    Samir Nigam.

    Reply

    1. 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

  258. 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

    1. 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

    1. […] 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

  261. 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

  262. 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
  263. Pingback: Thoughts on India and the global economy

  264. 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

    1. 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

  265. 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

    1. 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

  268. 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

  269. 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

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

    Reply

  271. 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

    1. 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

  273. 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

  275. 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

  276. 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

  277. 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

    1. 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

  278. 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

  279. 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

  282. 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 [email protected]

    Reply

  283. 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

  284. 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

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

    Reply

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

    Reply

  288. 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

  289. 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

  290. 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

  291. 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

  292. 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

    1. 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

      1. 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
  293. Pingback: Thoughts on investing life insurance proceeds

  294. 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

  296. 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

  297. 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

    1. 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

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

    Reply

    1. 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

  299. 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

    1. 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

  300. 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

    1. 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

      1. 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

    2. 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

    3. 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

  301. 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

    1. 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

  306. 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

  308. 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

  309. 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

  310. 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

  311. Hi,

    Can you talk about how to choose health insurance

    1) for husband + wife + kids
    2) for parents and in-laws? (60) ?

    Reply

  312. 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

  313. 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

  314. 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

  315. Manshu,
    Can you provide some highlights about the upcoming budget which are expected and how they would affect an individual ?

    Thanks,
    Ams

    Reply

  316. 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

  317. 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

  319. 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

  320. 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

  321. 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

    1. 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

  322. 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

    1. 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

  323. 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

  324. 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

  325. 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
  326. Pingback: What questions should you ask your financial planner?

  327. 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

  329. 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
  330. Pingback: Stock Market for Beginners in India

  331. 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

  332. 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

    1. 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

  334. 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

  335. 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

  337. would be thankfull if you could write a post on what is futures & options
    thanks & regards
    JMMohandas

    Reply

  338. 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

  339. 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

    1. 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

  340. please suggest me which Gold Fund is best one . I want to invest 2000 pm for 5 year thru SIP
    thx.
    ND

    Reply

  341. 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

  342. 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

  343. 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

  344. 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

    1. 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

  346. 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

    1. 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

  347. 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

    1. 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

  348. 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

    1. 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

  349. 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

    1. 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

  350. 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

    1. 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.

      https://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

    2. 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

        1. 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

  351. 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

    1. 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.

      https://www.onemint.com/2012/03/14/how-beginners-should-approach-investing-in-the-stock-market/

      Reply

      1. 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

  352. 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

    1. 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

  354. 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

    1. 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
  355. Pingback: How do FII Investments affect stock market?

  356. 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

  357. Dear Sir,
    Please discuss Tax Implications for FIIs and confusion vis-a-vis GAAR

    Thanks and Regards

    Vinod Kulkarni

    Reply

  358. 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

  359. 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

    1. 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

  360. 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

    1. 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
  361. Pingback: ICICI Bank b2 branchfree banking

  363. 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

    1. 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
  364. Pingback: GAAR in Simple Words

  365. 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

    1. What does that mean? Cash management in various companies? What exactly are you after and what will you use this information for?

      Reply

  370. how do the companies manage their cash in their business. it is required for my project work

    Reply

    1. 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
  371. Pingback: How is a share price calculated at any given time?
  373. Pingback: Part 1: Introduction to Futures and Options

      1. 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

        1. 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

  375. 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

    1. 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 https://www.onemint.com/category/etf/

      Manshu also wrote a post on eGold last January, you can go thro it.
      https://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

  376. 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

    1. 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
  377. Pingback: ICICI Pru SmartKid Premier ULIP Review

    2. 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

      1. 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

        1. 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

          1. 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.

  380. 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

    1. 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

      1. I was under impression that it is a captial gain. 🙂
        Your reply is wonderful and logical. It makes sense. Thanks.

        Reply

    2. 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

  381. 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

  382. 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

    1. 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

  383. 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

    1. 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

  384. 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

    2. 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

  386. 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

    1. 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

  387. 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

    2. 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

  388. 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

    1. 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

  389. 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

    1. 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

  390. Manshu, why dont you analyze and throw some light on the Junior BeEs that gives a feeler of safe and attractive returns? thanks !

    Reply

  391. 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
  392. Pingback: When you do get shares in another company automatically?

  393. 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

  394. 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

  396. Can we have a dedicated center for providing current information on Debt instruments (Traded debentures, Bonds, Tax Free Bonds).

    Reply

  397. Hi Manshu

    Can you write on how good the investment on real-estate is? And if it is a good investment option?

    Regards

    Reply

    1. 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

  398. I want explanation on ” why stock market is negatively co-related to Rupee depreciaton” whereas rupee depreciation is good for our exporters!

    Reply

  399. 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
  400. Pingback: How Rupee Depreciation Affects Exporters, Oil Bills, and Others

  401. 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

    1. 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

        1. 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

          1. 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 ?

          2. 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.

          3. 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?

          4. 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.

          5. 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.

          6. 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….

  402. 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

    1. 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

  403. 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

  404. 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

    1. 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

  405. 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

    1. 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

      1. Thanks Anu. will do tht…anw, i do have a term plan + SIP’s + an endowment policy+ health insurance….

        Reply
  406. Pingback: GS Nifty Junior BeES Review

  407. 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

  408. 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

    1. 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

  409. 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

    1. 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

      1. 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

        1. 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

  410. 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

    1. 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

      1. 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

    2. 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

      1. 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

          1. 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.

          2. Hi Manshu

            Thanks, I received the notification to join your circle. Will do the needful in the weekend.

            Umesh

          4. Hi Manshu

            I just added you in Google+ but I must admit that I do not know much about its working etc.

          5. Thanks Umesh, yeah I need to get used to it as well and we all need to figure out how this group will evolve.

          6. 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

  411. 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

    1. 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

  412. 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

    1. 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

      1. 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
  413. Pingback: Two big things to keep in mind while investing in company fixed deposits

  414. 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

  415. 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

  416. 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

  417. 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

    1. 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

  418. 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

    1. 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

  419. 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

  420. 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

    1. 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

  421. 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

  422. 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

  423. 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

  424. 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
  425. Pingback: What is Balance of Payments (BoP)?

  426. 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

  427. 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

    1. 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

  428. 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

  429. 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

      1. 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

        1. 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

  430. 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

  431. 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

  432. 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

  434. 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

    1. 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

  435. 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
  436. Pingback: What are some good saving instruments for beginners under the lowest tax bracket?

  437. 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

  438. 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

  439. 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

  441. Hi,

    Is possible to have an article on Tax Benefit on Preventive healthcare offers Rs. 5,000 deduction?

    Regards,
    Samir Nigam.

    Reply

  443. 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

  444. Hey Manshu,

    Can you please shed light on why US is still an economic power despite its huge public debt !

    Reply

  445. hi,

    can you explain the difference between CPI index and WPI index, and also which is better.

    Reply

  446. 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

    1. 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

      1. 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

  447. 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

    1. 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

    2. 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

  448. 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

    1. 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

  450. 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

  451. 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

    1. 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

  452. 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

    1. 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

  454. 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

    1. 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

      1. 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

        2. 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

  455. 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

  456. 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

    1. 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

  457. 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

  458. 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

    1. 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

  459. 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

  462. 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

    1. 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

    2. 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
  463. Pingback: UTI ULIP Review

  464. 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

  465. 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

    1. 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

      1. 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. [email protected]

        Reply

    2. 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

  467. 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
  468. Pingback: Thoughts on an Indian real estate bubble

  469. 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

        1. 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

          1. 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!!

          2. 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!!..

  470. 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

    1. 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

  471. 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

    1. 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
  472. Pingback: What does negative bond yield mean?

  473. Its OK to not mix investment & insurance together but what preferably plans should be taken individually..?

    Reply
  476. Pingback: How to generate retirement income for parents?

  477. 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

  478. 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

  479. 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
  480. Pingback: What planning for my wedding taught me about derisking my portfolio

  481. 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

    1. 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

    2. 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

  482. 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

    1. 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.

      https://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

  483. 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
  484. Pingback: Which is best listed tax free bond?

  485. 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

  486. 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
  487. Pingback: Tata Steel Perpetual Bonds Details

  488. 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

  489. 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

    1. 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

  491. Manshu,
    No insurance company offer term plan for woman who is house wife. Please give a detailed post on it.
    Regards,
    Kartavi.

    Reply

    1. 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

  492. 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

    1. 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

  493. 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

  495. Hi Manshu,

    I need to discuss with you regarding the UTI ULIP fund review that you have done recently. So, could you please give me your contact detials so we can take this discussion forward.

    Thank You.

    Reply

    1. I think you’re mistaken in what I do. There is nothing I have to discuss with you about this or any other ULIP. If you have any questions, leave a comment on the relevant post and I or someone else will answer that. That’s the only way to communicate with me.

      Reply

  496. Hi Sir,My name is Naveen.I have invested in metlife insurance.I paid 50k every year and agent had told me after 5 years .I will get a sum of rs 500000.but I had a doubt in this fund.So i discontinued my service after 3 years.Could you please guide me on this what I have to do to atleast get my principal.

    fund name-Balancer
    policy status-premium discontinuance
    closing balance-3907 units
    total balance is 79185

    Reply

    1. Hi Sir,My name is Naveen.I have invested in metlife insurance.I paid 50k every year and agent had told me after 5 years .I will get a sum of rs 500000.but I had a doubt in this fund.So i discontinued my service after 3 years.Could you please guide me on this what I have to do to atleast get my principal.
      Plan :met growth RP
      fund name-Balancer
      policy status-premium discontinuance
      closing balance-3907 units
      total balance is 79185

      Reply

      1. I’m sorry I don’t know enough to help you, best bet is to talk to the agent or the insurance company and find out how you can get the money back.

        Reply

  497. Hi Manshu,
    You have got a very informative website.
    Can you compare upon SIP and TIPs of Mutual funds/ETFs etc.
    SIP – Systematic investment plan
    TIP – Targeted investment plan
    Which one is better considering the current market outlook

    Reply

  498. Hi Manshu,

    I am currently an expat in the Gulf, remitting small amounts of money to my NRE account in India.

    I was wondering whether the cumulative effect of the money thus remitted, in various currencies, by all the Indian expats, contribute anything to India’s Forex kitty, and if so, which are the states topping the list of money being remitted inwards by its “residents” ?

    Thanks & regards,

    Koustubh.

    Reply

    1. Review I mean Analysis of returns from this endowment policy. I heard this is one of the best from LIC as it has some guaranteed returns from LIC profits. Please add your analysis on this this policy.

      Reply

  501. One of my relatives,in his 30s, is in a good position His wife,although a post graduate is a homemaker. He has a 3 year old son.

    He is a subscriber of EPF, PPF, NPS, NSC. has LIC Policies and shares and owns a 7 year old apartment without any loan liability.

    He seeks views on building of wealth.

    Reply

  502. Hi Manshu, you have covered health insurance a number of times. For most/many of us, major health issues start cropping up after we’re say 50. In my 30s, I for example, rarely have to visit a doctor more than once or twice a year, and I guess my basic insurance from work ought to suffice for me. However things will be different after 20 years, and that’s when I’d have to pay a higher premium, and actually require the use the insurance. I was wondering whether there’s a product that lets me keep paying premiums now without utilizing any benefits now, but gets activated after say 15-20 years of paying regular premiums– one could keep paying premiums at the same rate of course even after it gets activated. This kind of a health plan, I bet, would be useful for a lot of people. My research on this hasn’t yielded anything– do you your any of your readers know about something of this sort on offer?

    Reply

    1. This is a very interesting thought and as far as I know nothing like this exists. Do you know if such a product exists outside India? I think I haven’t come across anything like this in at least India or US.

      Reply

      1. Well, one could say that the general system in most European countries works that way in principle, but not quite– you pay for health insurance (and social security) while you’re working and get pension and benefits that include a free health insurance after the official retirement age. Of course with the worsening conditions, people are encouraged to get a private pension, and retirement age is also being increased, benefits decreased; nevertheless the social security network takes care of the medical stuff after retirement.
        The government has increased tax benefits on health insurance expenses in the past few years, but for me it’d be a total wastage of money unless it had a major future component (even if unit-linked or something similar).
        I wish insurance companies would start something of this kind soon, while I’m still in my 30s 🙂

        Reply

  504. Hi Manshu,

    I am an avid reader of your posts. Your thought and suggestions are very informative and gives me a clear picture of the current investment scenario. Have a few questions regd. investment & term insurance, would be glad if you could give your suggestions on them.

    1. I want to split my term insurance into 2 policies of say 50 lakhs each, is it possible to do so and will my family get the full coverage later on. Was thinking to go for HDFC Term Assurance Plan. Can i proceed, what’s ur suggestion?

    2. I want to invest in Gold ETF’s. Have gone through your posts and seen that Gold BEES seems like a good option to go for. Can i go ahead and how much % should i invest as a first time investor?

    3. I have invested a moderate amount of 1000 in the below MF’s from past 1 year. Should i continue to stay invested or back out of some MFs.

    a) Birla Sun Life Tax Relief 96
    b) Canara Robeco Mutual Fund-Equity Tax Saver Dividend Fund
    c) Franklin India TAXSHIELD -Dividend
    d) HDFC TOP 200 FUND – GROWTH
    e) SBI Magnum Tax Gain Fund – Growth
    f) Sundaram Tax Saver-Open Ended Fund-Dividend Reinvestment
    g) DSP Blackrock MF

    4. Also need to plan some good investments for my kid. Have few RDs and planning to start on a a FD too. Any other good investment suggestions that u can help me on to get a good returns in time (say 15-20 yrs) for my kid’s education and marriage and later on too.

    Awaiting your replies.

    Thanks,
    Sheer

    3.

    Reply

      1. Hi Sheer,

        I apologize for the delay in answering your comment and then now you’re not going to like this comment either because I can’t really give you any inputs on what you should do in this situation.

        As I’ve said earlier, giving individual advice is not what I can do in good conscience on this blog. I’m neither an expert on these things, and nor do I know anything about your individual situation to be able to confidently tell you what to do. I’ve stated this several times to other readers, and nothing has happened that changes my position on individual advice.

        Reply

  505. Hi Manshu,

    Since you have mentioned in your UTI ULIP review that you haven’t understood the terminology, here are some further details on the scheme:

    UTI’s ULIP is the first insurance linked mutual fund product in the country. The scheme is positioned as a debt oriented balanced fund with a long term investment objective aiming to deliver capital appreciation. Given the long term nature of the product, emphasis is laid on adjusting the asset allocation and the mix within an asset class depending on the prevailing market conditions. The scheme is ideally suited for investors looking for growth over a horizon of 10-15 years with added benefits of life insurance cover, accident cover and tax benefits.

    UTI Mutual Fund is a pioneer in this type of scheme, having launched its ULIP way back in 1971. UTI ULIP is a unique product, which provides multiple benefits viz. low cost life insurance cover without any medical examination (life cover up to Rs 15 lakh), accident cover up to Rs.50,000, and tax benefits under Sec 80C of Income Tax Act, 1961. Compared to other tax-savings instruments such as bonds, UTI-ULIP provides Easy Liquidity and Ability to time investments for payment of renewal contribution.
    As on 31/12/2011 the Rs 2207.58 crore UTI-ULIP has a sizeable investment (38%) in equities, while the balance is in debt instruments, including long-term debt, corporate paper and government securities. UTI-ULIP has outperformed its benchmark Crisil debt-hybrid (60 : 40) consistently over the years. The returns as on 31/12/2011 since inception is 10.75%. UTI-ULIP offers two options: Investors can either decide for a 10-year plan or a 15-year plan, while the target amount can vary between Rs 15,000 to Rs 15,00,000.

    Reply

    1. Thanks, but my questions were more to do with specifics of the plan related to the declining term insurance part of it. The way I understood it – it doesn’t make any sense for anyone to opt for that as I listed out in the article. Do you agree with that?

      Reply

      1. Manshu,

        Here is a clarification on UTI ULIP by UTI AMC:

        One unique aspect of an investor’s human capital is mortality risk i.e. the loss of human capital in the unfortunate event of premature death. Life insurance has long been used against mortality risk. Typically, the greater the value of human capital, the more the life insurance the family demands. As years pass by, the human capital reduces and the financial assets increase. The need for insurance cover and consequently the limit of insurance cover reduces as one gets older. In short, declining term cover is suitable for those whose need for insurance cover reduces over time.

        Reply

  506. Dear Manshu,
    I am reaching Sixty and my wife’s age is little less than this. We are finding it very difficult to get health insurance coverage. I approached two companies one in private and the other in public sector. Both have declined my requests. What exactly is the reason for this indifference to the elderly population. Can you suggest me a way out.

    Reply

  507. Hi,

    Does anyone know what is the best way to purchase ultra short term debt funds if the option is not available in a demat account?

    Thanks in advance.

    Regards,
    Roberto

    Reply
  508. Pingback: Senior Citizens Health Insurance Options
  509. Pingback: On gold prices and why you shouldn’t listen to me

  510. Have a child? Use these instruments / investment avenues to save on / optimise your net tax outgo.

    That’d be something of interest to many people, I’d think.

    Reply

  512. Hi Manshu,
    What is “Cost of carry” in case of futures and options?
    What can be inferred from the CoC movements in a particular derivative product?
    If possible, please explain with an example. Say L&T Stock future.
    Thanks.

    Reply

  513. Hi Manshu,

    Can you do a post comparing the top 5 – 10 long term debt funds. I want to invest my savings in a debt instrument and lock in the rates for a long period of time.

    Thanks.

    Reply

    1. No one even uses that any longer, that is not something I want to write about right now since it is not of much practical benefit to most people.

      Reply

  515. Can you suggest the Best Rates for Recurring Deposits For General and Senior Citizens.
    I am planning to Open a RD of 20000/- for 1-2 years.

    Reply

  516. SIR , I WOULD LIKE TO KNOW HOW THE BASE MARKET CAPITALIZATION IS CALCULATED . PLEASE DO HELP IN CLEARING THAT DOUBT. THANK YOU

    Reply

  518. Hi Manshu,
    Can you post an article on “Investing in Blue Chips to create wealth” ? Most people understand blue chips are good but when it comes to practically investing, they tend to get diverted by so-called returns from mid-small caps and penny stocks, which ruin their portfolio.
    Instead if they hold blue chips for 1.5- 2 years, they would see a significant boost to their returns in capital appreciations and holding for a few more years would give significant dividend income too.

    Reply

    1. I don’t quite agree with that in the sense that you write about it to recommend people to invest in blue chips or any other stocks directly. I see what you are trying to say that invest in better known companies instead of penny stocks, but I’ll go over and above that and say that just invest in good diversified mutual funds and don’t expose yourself to stock risk at all. That will be better for most people.

      Reply

  519. This is regarding your post on CAG,s Report on Coal India loss of Rs 1.86Lakh Crores.
    The whole issue is very confusing to me. I shall be grateful if you can kindly clarify the following points.
    1.What is this Coal allocation.I read that the allocation is made on the basis of requests from the respective state Govts.Is this allocation made one time basis or not?Is this a running contract?
    What is the price at which Coal India sells to the respective companies? Obviously is not at market price.Who determines the price?
    2.Why all this abstract presumptionous loss which CAG talking about?Instead why cant he calculate the actual loss for a given period for a given Company?

    Reply

  520. ICICI DIRECT

    ICICI DIRECT Is the website by icici bank which has been a pioneer in paperless investment destination for we investors in India. Today we can invest in SHARES/MUTUAL FUNDS/BANK DEPOSITS/DEBENTURES/ COMPANY FDS/ CURRENCY/OVERSEAS Equity
    ETC ETC many investors are unaware of this seamless facility offered . onemint can be a very good forum to discuss/ share our views on this ONESTOP FINANCIAL SUPERMARKET

    Reply

    1. ICICI Direct is one of many companies that provides these services and regular readers are aware of many of these services. I’m not sure I see value in this kind of post.

      Reply

    2. I quite agree with Manshu that ICICI Direct is one of many companies that provides these services.
      But drshetti has not mentioned anything about their charges/brokerage. For equity I don’t think they will be charging anything less than 0.4 – 0.5%, which is very high in this era of 0.1-0.15% brokerage.

      Reply
  521. Pingback: Best Company Fixed Deposits – Returns-Wise & Safety-Wise – Be Wise

  522. Hi Manshu,
    I have a situtation here where my wife will be a senior citizen next month. Some banks tell me that the FD’s she has with them earlier will automatically attract the senior citizen rate of interest once she turns 60. ie next month. Another bank says that is not possible. The earlier fd’s have to be retired and fresh ones made to get the benefit of senior citizen rates. Is there not a standard rule on this?
    I find bank employees are not well informed on their own rules and this results in misguidance.
    Appreciate your comments/clarification.
    Thanks in advance

    Anthony

    Reply

  523. Hi sir,
    your article on sensex & nifty calculations was wonderful for the fact that it was very easily understandable! i’m doing my PG in commerce & i hope u’ll be glad to know that your article has helped me the most for my seminar preparations; firstly, thank u!
    your article in fact has ignited in me the thirst to know more about the stock market.
    sir, will you pls explain how the weights in index are calculated?

    Reply

    1. I’m glad to hear that Ashwini – weights in the index are actually explained in the Sensex calculation article. They are calculated based on the free float methodology. I think if you revisit the article you might be able to follow the calculation.

      Reply
  524. Pingback: Mutual Fund Capital Gains Statement and Consolidated Account Statement Online

  525. Hi ,
    I wish to invest in mutual funds. I am an amateur and am completely lost in the numerous schemes offered by all companies. I wish to know the co relation between interest rates and stocks, debentures and money market instruments. Kindly guide on the same.
    Thanking you ,
    Ankita

    Reply

  526. Hi Manshu,

    Can you comment on the Future trend on Home Loan Rates in India.
    Is this a good time to go for a fixed tenure ( 10ys) with ROI 11%?

    HDFC has recently launched such a scheme.
    http://www.hdfc.com/loans/hm-loan-features.asp#truefix

    Though taking a loan from a PSU should be preferred but generally because of tireless formalities this task gets very daunting. So, if one chooses a pvt bank , is it better to go for a fixed ROI at this point?

    If you can share your opinion it would be truly helpful.

    Thanks,
    Saurabh

    Reply

    1. I am told Titile verification by PSU banks,especially SBI is very rigorous,while Pvt sector Banks, it is not that severe. The borrower will have to look for various other lega links and secure himself,while borrwoing from Pvt sector banks. Anyhow, this is the messgae I get from my friends and not mine.

      Reply

  527. Hi,
    Your explanation on the market pre-opening sessions was very useful
    Can you write about
    – how to pick a brokerage firm (online) – who has the best rates, tips, etc
    – different sectors and how to evaluate stocks within a sector – it could be a series perhaps?
    I’m new here, so if you’ve covered it already pls post the link
    Thanks!
    Keep writing !

    Reply

  528. Hi Manshu,

    Can u explain abt providend schemes in india…and employees contri on PF….and y only some companies cut PF while other dont wen it is compulsory…a short explanation is alrite..or if u can share some links..

    Thank u..

    Reply

  529. Dear Sir,

    I invested in the following IPO of tax free bonds /bonds but i am yet to see any annual interest in my bank account . I would be grareful if you can tell me when is the annual interest due:
    HUDCO BONDS: IPO came in January 2012
    REC LONG TERM INFRA BONDS : IPO came in January 2012
    PFC TAX – FREE BONDS : IPO came in December 2011
    NHAI TAX-FREE BONDS : IPO came in December 2011

    Reply

  530. hi Manshu,
    can you do a write up or invite someone to do a write up on “How to Review your Mutual Fund Portfolio” , the standard statement that i read and listen to is invest in MFs and review your portfolio in every 6 months. I am not sure how do i go about reviewing it, for example its now two years that invested in SIPs in certain funds.. some of the funds were giving a return of 30% few months back but i didnt do anything about infact i am not sure what to do , do i just shave off the profit only ? then do what with that profit , put it a debt fund ? or put that profit in my worst performing Fund ? or do i completely sell off that fund, then what do i do with a lump sum ? i dont want to invest the whole sum in another MF ? as i may be getting a bad deal at that time ? do i Use SWP ? when do i use SWP ? when do i kick out a fund ? they say when its performing below its index average ….. ok in what time ? 3 or 6 months ? also dont i lose in getting the fund taxed if i pull the plug before 1 yr ?
    So i am looking for you assistance to basically reveal some “MF juggling strategies” to make money in the long run. Coz today after 2 years i see My whole MF portfolio giving me 5% return, some of the funds in it are 30% profit , while some which were 20% profit 6 months back are at -5% loss today… i am really banking on these MF to help me retire.. i dont want to be disappointed when i am 60 coz when you look in retrospect investing a lumpsum 10 yrs back in a fund is a better deal than a SIP in the same fund… ( we discussed this a while back ) so i am not sure about the strategy…. with my broker taking 1.6% ( icici direct ) my returns are infact 3.5% today…
    Regards
    Sorabh
    can you do a post on this ?

    Reply

  531. Hi Sorabh,
    I think you have put too many questions so Ill answer a few which I can.
    For details of mutual fund performance the best place to go is http://www.valueresearchonline.com
    You’ll be surprised to find that most funds (except Gold ETFs, FMCG Funds, phrama and few others) gave good returns. Equity diversified funds disappointed, but this is due to the overall market trend.
    You mentioned that you have made some profits or want to book profits and not sure hot to reinvest the same. I would suggest a few options (pick what you like).
    – Invest in Gold ETF gradually (so you can diversify from typical equity or debt funds)
    – In case you have any loans (exclude home loans) such as credit cards, personal loans, car loans, use your funds/surplus to pay off the same
    – The most boring option is to consider ETFs instead of mutual funds – these actually provide index linked returns and they are highly transparent and cost effective. Instead of investing and tracking multiple funds you just invest in Nifty ETF and have a Nifty 50 portfolio…..it saves time, energy and costs.
    – MF juggling may not provide you great returns, but you can diversify across top performing funds which are consistent.
    These are my personal views which I hope is helpful……you can consider my suggestions and take a final call.

    Reply

  532. Hi,
    Could you pls. explain the advantages/disadvantages of FDs(presently int. rates of over 9% tax free) over FMP/Debt funds for NRI’s

    Thanks in advance

    Allwyn

    Reply

  533. Hi Manshu
    I like OneMint a lot. The articles here are genuine and articulate.
    I would suggest running a billboard or a discussion forum independent of any article where ppl can just post questions and discuss. Say a news/announcement happens, for e.g. today (06 Sept, 2012) SBI says its going ahead with a 50bp rate cut. Now unless someone writes an article about this, we really can’t discuss this. If we have a discussion forum, where day-2-day financial news and its impact can be discussed, it would be a wonderful experience.

    Thx
    Gaurav

    Reply

    2. Hi Gaurav,

      Thanks very much for your suggestion, and I have actually tried to do this twice in the past but had to bring down the forums at both times. The reason for that is spam. Now this is not the type of viagra spam that can be weeded out easily, but insurance agents and other such people creating posts about how great a policy is or deposit is or maybe even an infrastructure bond and how everyone should contact them to buy it.

      Weeding out this type of nonsense takes considerable time and it is very frustrating also. I don’t have that kind of bandwidth right now and am finding it hard even to write the 6 articles a week I used to do. There is real value in a forum when done properly but to do it properly you have to spend a lot of time, which I can’t do right now. Let’s hope the situation changes in the future but right now even though I see value in this I can’t start another thing which will demand my time.

      thanks again for your kind words and suggestion.

      Reply

      1. Bang on the money Manshu.
        It surely can be done but will require scrutinization of each and every post.
        Disruptive technologies don’t just have their name for nothing :~)

        Reply

  534. Tax free bonds like NHAI and PFC will declare dividend on 1st of october. I am in 20% tax bracket so i want to buy these bonds and at the same time want to take benefit of dividend but i dont know the record date. How can i know same? Pl. provide your reply as 1 st october is near now.

    Reply

    1. Hi VIRAL… NHAI and PFC “interest payment dates” are October 1st and October 15th respectively. NHAI bonds’ “record date” has been fixed as September 15th and ideally PFC’s “record date” should be October 1st. NHAI bonds should trade “ex-interest” either on September 13th or September 14th.

      Reply

  535. Hi.The highly regulated money markets and capital markets is facing a decent competition from the so called private chit fund companies who are guranteeing to double the money in 5 years and some in 3 years not only that the distributor payout goes as high as 30% and based on this promise they are collecting huge money especially from the tier 2 and tier 3 cities.This is simply unrealistic and irrational yet some of these companies are there for some 20 odd years.This topic has never been covered before.

    Reply

  536. Hi

    Was going through your website for the very first time and found that the quality of content is one notch higher than the rest of the world. My heartiest congratulations for that.
    Some of the topics that comes to my mind that can help some of the informed investors include:
    1. Best /worst 50 stock performances in last 5-10 years and why.
    2. Highest/lowest yielding instruments (customised) available in market. Example: International arbitrage of commodities .
    3.How real is Real estate : Topic can include the source of liquidity in real estate market and is it an investment product or consumption or both?

    Reply

  537. sir,
    people say 1% CRR will give 64000 crore rupees.so total deposits with banks in india is 64 lakh crore (ie) 64 trillion rupees.
    But recently i came across an article with RBI circular that at the end of JUN 2012

    Reply

  538. sir,
    people say 1% CRR will give 64000 crore rupees.so total deposits with banks in india is 64 lakh crore (ie) 64 trillion rupees.
    But recently i came across an article with RBI circular that at the end of JUN 2012 total currencies in circulation is 10.5 trillion rupees roughly.
    i just want to know actually how much currencies printed so far and can we get the figure like
    so far this much rupees printed/head in this country.i know its a bit difficult.But if u do it people like us will learn many things thru your post

    Reply

    1. Sir
      Can you please explain the relationship of CRR with money in circulation.Cash Reserve is directly related to total deposits with banks.Those Deposits need not be in cash only.Therefore I am not getting at what exactly you want?

      Reply

  540. Analyse the market price of NCDs across schemes, cum vs interest payment type of various periodicities viz. Q , HY, Annual – for different terms 3, 5 years and interest rates payable.
    I think long term cumulative options are not priced attractively while short term interest options commands better price. Is there any thoughts on this?

    I regularly follow your posts which are informative and interesting too.

    Reply

  541. Sir,

    You have been educating a large section of society by giving your ideas on a variety of topics. It is surprising to find that most of the investors are not bothered to reflect their incomes/losses in shares mutual funds in their income tax returns. There are good number of doctors/lawyers and other professionals who invest considerable amounts and time on these investments are complacent about showing these incomes/losses in their income tax returns. There are people who indulge in day trading in a big way do neither take nor give delivery and square up are triggering a bigger risk. Income tax department collects all the information and storing them for time to pounce upon these investors and punish them with penalties. The tax net, as Khalil Zibran says catches only small fish. Hope you will sound warning bells and investors shall understand ” for whom the bell tolls”

    Reply

  543. Can an exclusive article be written on PPF?. Actually, there is lot of confusion on this, despite the popularity of the product . The question is ,whether one individual can open two accounts -one in his name and the other on the name of minor child- and contribute Rs.100000/- to each of the accounts? everybody talks about availability of tax exemption upto Rs.100000/-, but nobody explicitly conforms that contribution can be made to multiple accounts exceeding Rs100000 and claim tax exemption upto Rs1.0 lakhs only.

    Reply

  545. Hi Mangal,
    New MF Debt schemes come up all the time, and the latest by JPMorgan MF five year Fixed Maturity Plan – Series 502 is the new kid on the block. When we who are new to investing in debt would like to analyze such a scheme from different angles such as: long term appreciation, asset safety, capital preservation, tax-implications, how does one go about doing this. I have perused for more information online, but cannot seem to come up with any more information or analysis that would help me make my decision. Please help. Thanks, Tippy

    Reply

  546. Can you please do a write up about QE(Quantity Easing).How does it work?As I understand ,US Federal Bank is supposed to buy US Bonds from US Govt which offer almost ZERO% interest.I suppose this is done by printing notes.OK. How does this money get pumped in to economy?Will US Govt. supply the money to various Banks who again lend them to companies or individuals?Will it not result in runaway inflation?So far it has not happened.So why all this laments, agony and severe protests from expert economists like Krugmen against the QE?

    Reply

  548. This has reference to Manshu,s comments /post titled”BIG RISK IN DIRECTLY INVESTING IN EQUITY STOCKS”.I totally agree.But the alternative is to leave the selection of the stocks to invest to Mutual Fund managers and therefore, to invest in a Mutual Fund.They are supposed to be experts and you are not.I was also of the same opinion and used to invest in MF.I gave them a long rope of about 5 Years and invested only in 5 star(Value Research) rated Funds. My experience was to say the least was not satisfactory.I withdrew the money from MF and started direct investment since about 2 years. So far the results are good.Hope they will stay good also.My exposure to direct investment in Equity is about 15% of my total investment.As I have told you I am NOT an expert.

    Reply

  549. Hello Mr.Ramamurthy
    We have been time and again hearing from media and experts all along that investors must take the mutual fund route. Yes, that advise has to be taken with a pinch of salt in today’s times. For people who dont have time to study, analyze or understand companies or stocks, the mutla fund route is the only option. However, if one is able to invest some time, energy and takes the initiative like you have done I’m sure anyone can pick stocks and maintain a portfolio.
    Sir, I would also advise you to consider Gold ETFs, which will further help you diversify beyond stocks, and it can be easily bought or sold just like stocks. This way you will be diversified beyond equities, and also be able to hedge against inflation.

    Reply

  550. Dear Sir,
    Please offer your views on Port Folio Management Service offered under Power of Attorney. How does it compare with personally managing your Folio across Asset Classes.

    Regards
    Parameswar

    Reply

  551. Can you please do a post on analysis of financial statements? or,if it is too big can you suggest the best web site where this info is found?Thanks
    Ramamurthy

    Reply

  552. Manshu – First of all, I want to mention that most of your / guest posts are very relevant and ring with everyday personal finance questions. The ULIP post was a great one.
    Anyway, I have been wondering if there is any site that allows you to review NPS pund manager’s performance so we can decide if there is a need to switch and if so, to which other fund?

    Reply

    1. Thanks Aashish!

      That information used to be in the PFRDA website itself and I remember looking it up a few months ago also. However, when I search for it now, I can’t find it. I’m pretty sure that information is present somewhere, but I need to search for it and then write about it. Sorry, don’t have a ready answer for you.

      Reply

  553. Hi, would be good if you can provide an analysis on investing in monthly gold schemes from jewellers. The typical scheme allows investors to allocate same amount every month for 3 years or 4 years. They allocate a gold bonus at the end of the period equivalent to cost of gold for 8 months or 16 month investments respectively (3 or 4 years). Does this make an attractive investment considering scenarios where gold appreciates, depreciates and remains constant, what are the different perspectuves to look at, what alternatives should one compare against

    Reply

    1. I’m not sure if I’ll be able to write about this because I don’t have enough knowledge on this topic. In fact I came to know of its existence by some comments here. Let me see what I can do.

      Reply

    1. Sensex will surely touch 25000. 25000 is just a rupee denominated number. As rupee depreciates and inflation remains stagnant, eventually sensex will reach 25000. If the question is when, I would guess the day will come in next 5 years. I know many people would want it early. 🙂 But I will prefer pessimistic number 🙂

      Reply

  555. For your NRI readers it would be interesting to know that now NRO deposits could be transferred to NRE. Experts may provide details on this topic.

    Reply

    1. Does it mean you can deposit INR in NRO deposits and then later transfer them to NRE accounts? There must be limits and pre-requisites. CA certificates. and also taxes involved. May be you can now sell a property purchased through Indian funds while you were a resident Indian, pay taxes and deposit the amount in NRO account and later park them in NRE accounts at your convenience say when $/Re rate is attractive, and then repatriate easily abroad? What happens to the limit of one Million Dollor? Yes a detailed update on the subject keeping in mind some practical difficulties in repatriating funds abroad being faced by recent NRIs will be very much appreciated.

      Reply
  556. Pingback: When will the Sensex touch 25000?

  557. Hi Manshu,

    Wanted to know if there is any way to find out the share price of an unlisted company using its financial reports. If there is indeed any such way, would request your expertise to know about the same.

    Thanks…

    Reply

  558. Hi Manshu,

    Offlate I have been listening many “Debt Recast” by banks to some of the institutions like Kingfisher, may be Suzlon. Could you please post a detailed article on this debt recast ? Will this affect banks ?

    Thanks much,
    Karthik

    Reply

  559. Hello Manshu,

    How about a post on Fidelity India selling itself to L & T Mutual Fund and what Fidelity investors should do now?

    Cheers,
    FL

    Reply

  560. This is about payout of interest earned on balance in Indian Savings account.

    India has a complicated banking system where interest is calculated on DAILY BASIS, with interest rate PER ANNUM and paid out HALF YEARLY in savings accounts. This creates confusion and makes it difficult for account holders to calculate and verify whether interest paid out is correct or not.

    Here in UAE banking system, interest is calculated on DAILY BASIS, with interest rate PER ANNUM, but paid out MONTHLY. This is lot more easier for account holders to track and also there is a sort of small income also credited every month which gives a pleasant feeling. This has a greater impact on NRI savings account where money remitted every month is considerably very high but due to lack of this transparency, NRIs prefer other tools of investment instead of keeping in savings account.

    I feel Reserve bank of India should also look in to this and adopt such a system. This will not only give lot of transparency but also encourage people to develop the good habit of saving surplus money in bank.

    Reply

  561. I dont know anything about indian economy.till now i’ve known nothing.i realized now and i want to know about statistics of indian economy.please can anyone help me for these questions.why always dollar demands over rupee?

    Reply
  562. Pingback: Understanding what Debt Recast means with Kingfisher Airline’s Example

  563. Insurance – Term Plans
    Do the term plans purchased via internet (without medical checkup) have hidden terms and conditions which is not the case with term plans purchased thru agents (with medical checkup)??

    I looked up my term plan policy document (purchased without medical checkup) but it is not very specific about what kind of death occurences are covered.

    Can you throw some light on the issue??

    Reply

  565. Hi,

    Could you please write on ‘how do the shares price change from time to time in the stock markets’. It will be great if you know let me know your analysis on few of them…eg: Al Exide Ind is fundamentally better than Amara Raja Batteries why Exide Ind has not performed so well on the bourses , compared to Amara Raja Batteries.?

    Thanks,
    Anil Kumar

    Reply

    1. There are many factors that go in deciding if price goes up or down, I don’t know about the specifics of these two stocks, but in general in such a situation you should keep in mind that you think it is fundamentally better but is that is your opinion and obviously someone else or rather a lot of other people don’t agree with your assessment that it is fundamentally better.

      Reply

  566. Manshu,

    Can you write an article on how to get best deals for the mobiles. There are so many online website, which coupon to use ?

    Reply

  567. Hi – Can you let me know the most optimal Index Fund for Indian markets, considering:
    1) Low Operating Cost – read low Fund management fees, because there’s so little to manage in an Index Fund
    2) Low Tracking Error
    3) Most efficient way to invest – are there alternatives to buying ETFs – say a NIFTY or BSE Sensex Product
    Thanks!

    Reply

  568. Hi Manshu

    Can you write a post on Bullionindia (www.bullionindiain), by Finkurve Bullion Private Limited and is jointly promoted by NCDEX Spot Exchange Limited (NSPOT), RiddiSiddhi Bullions Limited (RSBL), and Finkurve Financial Services Limited (FFSL)

    It is an online platform that allows investors to own small quantities of physical gold and silver at wholesale prices.

    As an FP do you recommend investing here for bullion rather with jewellers, NSEL, banks, MMTC, Gold ETF etc

    Thanks

    Reply

  569. please write an article on “what are the documents required for land purchase”,
    if you have written already, please give the link i am a new user.

    thanking you,
    best regards,
    jagadish babu macherla

    Reply

  570. What are the alternatives available for –
    Parking funds arising out of Capital Gains (both LT and ST)
    how either of the options is beneficial over the other, monetarily
    will parking funds in capital gains account with SBI nesseciate in utilising those funds only for purchase of property.

    Reply

  571. Dear Manshu,

    Several NRI’s such as myself inherit significant assets in India and abroad and look to professionalize the assets into an investment firm or have other business ideas we seek to execute by opening a company in India. Specifically, could you post a topic regarding advice on hiring company incorporation consultants to start a company in India? It is not that easy to identify credible company incorporation consultants online.

    This would really be useful to me (and I hope to others as well) as I am am looking to initiate the process of establishing a firm as soon as I receive my PAN card (by the end of November).

    Reply

  572. 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.

    Reply

    1. 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.

      Reply

      1. 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.

        Reply

  573. 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

    Reply

  574. 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.

    Reply

  575. 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!

    Reply

  576. 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?

    Reply

  577. 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.

    Reply

    1. 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.

      Reply

      1. Does this mean that by printing more and money USA is becoming richer?.If so economics books have to be re written:::

        Reply

        1. 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.

          Reply

          1. 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.

  578. 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?

    Reply

    1. 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.

      Reply

  579. 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?

    Reply

  580. 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?

    Reply

  581. 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.

    Reply

  582. 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

    Reply
  583. Pingback: Introduction to mutual funds in India

  584. 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)?

    Reply
  585. Pingback: Effects of black money on Indian economy
  586. Pingback: What is the difference between operating income and net income?
  587. Pingback: Can one person open two PPF accounts?

  588. 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

    Reply

  589. 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

    Reply

  590. 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!

    Reply

  591. 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?

    Reply

  592. 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?

    Reply

  595. 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

    Reply

  596. 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

    Reply

  597. 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

    Reply

    1. 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.

      Reply

      1. 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.

        Reply

        1. 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.

          Reply

          1. 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.

          3. 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.

          5. 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.

  599. 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

    Reply

    1. 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.

      Reply

  600. 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!!

    Reply

    1. 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.

      Reply

  601. 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

    Reply

  603. 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%..

    Reply

  605. 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?

    Reply

    1. 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.

      Reply

      1. 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.

        Reply

        1. 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.

          Reply

  606. 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.

    Reply

    1. 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?

      Reply

      1. 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

        Reply

        1. 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.

          Reply

          1. 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

          2. 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.

          3. Hi Umesh,

            There is flat charge of 1.5% or Rs.30 (whichever is lower) for every month. I guess this could be avoided.

          4. 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.

  608. 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.

    Reply

  609. 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.

    Reply

    1. 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.

      Reply

  610. 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

    Reply

    1. 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.

      Reply

  612. 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.

    Reply

  613. 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

    Reply

    1. 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.

      Reply

  614. 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

    Reply

  615. 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.

    Reply

    1. Cant you use your credit card for such payments?In Bangalore I pay my property Tax through credit card.No transaction charges are levied.

      Reply

  616. 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

    Reply

  617. 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.

    Reply

  618. I wan’t to understand the linkage between: fiscal deficit and inflation, inflation and lower exports and higher imports, which leads to currency devaluation.

    Reply

  619. 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

    Reply

  620. 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 ?

    Reply

  621. 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 .

    Reply

  622. 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

    Reply

      1. 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.

        Reply

  623. 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.

    Reply

  624. 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 ?

    Reply

  625. Sir whether dividend received from stock will be added to the NAV or it will be enjoyed by the Mutual fund institution

    Reply

    1. 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.

      Reply

      1. 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

        Reply

        1. 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.

          Reply

  626. With interest rates falling, the temptation to move into long term debt funds rather than FD for high tax paying citizens is becoming very compelling. How does one evaluate whether breaking an FD and paying penalty with low rate of interest makes better sense than waiting for FD to mature. Given that a part of the interest is taxed at 30%

    Reply

  628. I am a CA work as a financial planner in Club Kautilya- an initiative of Microsec Group whose core business is Financial Planning and advisory. I would like to write blog on financial planning for the subscriber of Onemint so that our thoughts can be shared with the masses for welfare.

    Hope you look into the suggestions and provide us an opportunity to work on a common platform with your team.

    regards,
    Sumit
    9831546009
    Club Kautilya

    Reply

    1. Sumit, you are welcome to answer questions on this thread, the forum or any other posts but I’m not looking for a guest post on financial planning at the moment because I don’t believe that’s what the readers are looking for from OneMint right now. Thanks for the offer and all the best with your venture.

      Reply

  629. Hey,

    I have one request. Can you please guide as in how to start buying shares? What is the process? I am completely new to this field and i did’nt find any information about it. How to invest,what is the process, what are per-requisites i would require to buy shares. Take some example and explain, as in i have balance of say Rs.50000 to invest in shares, how should i go? how much should i invest in safe deposits, how much in share?

    Kindly guide.

    Thanks
    Chintak Dholakia
    Newbie,unguided Share market enthusiast!

    Reply

  630. Hi,

    I have lumpsum of 5 lakhs in hand.The amount was allocated to my kid from my parents. so i don’t want to use it’s return for any near future plan.Will be useful to my kif future purpose.

    Pls give your suggestion.

    Regards,
    Anand.R

    Reply

    1. Since holding amount in cash will depreciate its value year on year due to inflation. It is better to invest the amount in some safer instrument (debt). Investment can be done in your children name but if the are minor than any return from the investments will be clubbed in your hand. For investing always look at investor tax slab. If a investor is in higher tax bracket than tax free bonds are advisable whereas if an investor is in lower tax slab than investment can be done in Fixed Deposits or FMP or any other debt instrument. Since you would be utilising the fund for your children needs will i believe which is for mandatory goals so any equity exposure should be completely avioded.

      regards,
      CA Sumit Gupta

      Reply

      1. Dear Sumit,

        Thanks for the suggestion.
        You are ture, i’m looking for safer investment.
        Can i invest partially (1 lakh ) in PPF and say 3 lakhs in FD (nominatting my wife) .I’m more confused about investing remaining 2 lakhs.

        Can i invest 2 lakh in buying bond or gold (form of coins or etf )?
        or sub dividing the 2 lakhs into other 2 investment’s or something?
        pls suggest.

        Thanks,
        Anand.R

        Reply

        1. First let me know for what purpose you want to use this 5 lacs fund ? Is it for children education or marriage. Before making any investment the objective of the investment should be given a concreate thought. Unless and until i know for what purpose you want to invest the amount, advising would be difficult task for a Financial Planner.

          Reply

          1. Dear Sumit,

            The purpose of investment is, someway this money should be used for him.

            Need not be for his marriage.Let’s use it for higher education.

          2. If the objective is for higher education than the asset allocation should be 100% in debt instruments. Check the investors tax slab and than make the investment. Investment can be done in Tax free bonds if the tax bracket is 20% or more. Income Fund can be a good option in this reducing interest rate scenario. For lower tax bracket better go for Fixed Deposit or FMP’s, March is a good time to invest in FMP since you can avail the benefit of indexsation prudently.

          3. Hi Sumit,

            Thanks.

            He is below 4 years old and i’m looking for long term plan.

            Which FMP is good? is there any FMP will give 3-5 yrs plan?

          4. Your son is 4 yr old so for higher education the investor horizon would be around 13-14 yrs. So it is advisable to invest in tax free bonds like HUDCO or IRFC where interest earn is tax free and in a down ward interest scenario the bond price would shoot up with every interest rate cut. The would be listed on exchanges so it can immediately liquidated as and when required.

          5. Sumit
            Problem with buying or selling Bonds in the Secondary market in India is lack of info like the Bond name,scrip name, quotations ,interest rate,maturity date.yield %,etc.Can you please let me know in which web site I can get all this info.As far as I can see edlweisse provides some of these data but it is only for NCD,s.Thank You

          6. Manshu
            Can I get a response to my query.I dont want to trouble you but I am keen on this topic.

          8. There are two types of loan facility available in the market.

            1) Home Loan
            2) Home Saver Loan.

            In the later one the person who buys loan for same tenure, same amt similar to the former one, is able to full-pay his dues in less term of years making a huge saving on interest burden.
            I need more info on this. I don’t have more clarity to it.

            Pls can you find it out.

          9. Hi Manshu,
            I wanted to ask whether 1% TDS will curb black money in real estate and if yes, how?

            Thanks,
            Manish

          10. They had tried to do this last year also and then didn’t implement it because it would’ve added more red tape. I don’t know how the thinking changed this year but it is certainly a good topic to look into in detail.

          11. From one website, I got to know that more than 50% of real estate transactions don’t quote PAN. Maybe, for TDS, buyer/seller have to mandatorily quote PAN number and that is how government can track flow of money from/to PAN number.
            This is just my guess.

          12. To add to what carnivas has asked…
            Many nationalised banks (including Bank of India, Canara Bank, etc) offer family floater mediclaim poilicies for their account holders. They are cheaper than getting it directly from the insurance companies themselves. I believe, they cost around 8000 for a 5 lakh cover for a year for a family of 4.
            Even I would be interested in knowing if there is any catch in the same. Can they not be renewed after a certain age, say 60 years? Is the coverage less than others? Or anything else?
            If not, why go anywhere else?

          13. While this is an interesting topic, I have very limited knowledge on mediclaim policies from nationalized banks and I’m not confident that I will actually be able to write on this topic and add details on whether there is catch in these policies as they are cheaper than the ones offered by insurance companies. I will try but it might take a little long. Thanks.

  631. Is this the right time to enter or exit Mutual Funds?

    Given that the market is at a two-year high, what should be one’s approach to Mutual Funds?

    My situation: I have been investing in the HDFC Top 200 Fund (monthly SIP) since 2010. The investment was done with a view to hedge against inflation and build a retirement fund (retirement is more than a decade away). HDFC Top 200 is currently showing a net gain of 15.22% for me. Should I continue investing in the fund given that the market is at a 2 year high or suspend investing (but not sell/redeem my existing units) till such time the market falls again?

    Can you explain how should one treat mutual funds? Are we supposed to keep investing them till such time we want to (in my case retirement) or are we supposed to sell/redeem when the gains are good (example lets say 30%) and then re-purchase when the market falls?

    Thanks

    Reply

    1. HDFC Top enjoys 4 star rating by Value Researchonline. As your target date is more than a decade my suggestion is to continue the SIP for 7 to 8 more years at the end of which you can redeem and invest in a debt MF.Valuerearchonline is a very good MF web site. Pl.see it.

      Reply

      1. Dear Mr. Ramamurthy,

        SIP can be an option but if u invest in debt Fund than the expense ratio and taxability on return must be seen also. Since debt fund generally gives you 8%-9% return but the post tax yields goes down lower to 6%-6.5%. With a inflation rate of 7.18% published last day it is a bad investment. Any investment which beats inflation creates Wealth. When you can get 8% tax free return from HUDCO Bonds than it can be one of the best investment, further with a down trend interest cycle this bonds would be traded at a premium once they get listed after the close of HUDCO issue on 22/01/2013.

        regards,
        Sumit
        9831546009

        Reply

        1. Sumit
          Yes sir, but, the current return of 8% to 9% is only in respect of short term debts.However some of the Gilt funds provides a return of 12 to 13%.Investment in Gilt funds is also as safe as short term debt.
          But what is your advice to Sanjay.He wants to know whether he may suspend SIP now and again resume investing when the market picks up.I feel this is not correct.The whole intention of SIP is since we cannot time the market it is better to go on continuing SIP till the target date is about 3 years away.

          Reply

          1. For Sanjay who wants to build his retirement corpus with his mutual fund equity SIP is a BIG NO NO. What happens if the equity market go down on the verge of his retirement, his whole retirement corpus would get a beating. Retirement corpus should have lower equity exposure and therefore the assets allocation should be more in debt than equity. Moreover SIP should be done with a objective of parking small amount out of saved discreationary expenses so that the amount invested in SIP would have been spent in luxury items like dinning out or muvie if SIP was not there. Further Sanjay should not try to time the market with his decision of whether to continue his existing SIP or not. He can vary well continue his SIP irrespective of what equity market is doing.

          2. Sumit
            So your advice to Sanjay.Get the **** out of HDFC Top.Invest in Debt cum equity MF tilted heavily in favour of Debt.
            One such fund which comes to my mind is HDFC MIP long term. Some details of this fund are
            Port folio Allocation Debt 75% Equity 25%
            Previous Years Returns in %
            Year Return
            1 14.16
            2 8.41
            3 8.36
            5 9.08
            Rating ****
            Source http://www.valuerearchonline.com
            Returns are taxable.
            Would you advise this?

    2. Manshu,
      Please have a full post, covering reply to the questions of sanjay (January 17, 2013 at 1:26 pm)
      It will be of a great guidance to many of us.
      Regards.

      Reply

  632. A pertinent question that could be discussed is since now the sensex has touched 20k, the govt seems to be taking some policy decisions, US fiscal cliff avoided for some time, as an investor should I be doing anything different in terms of investing in MFs is concerned?

    Reply

  633. Hi Manshu,

    I suggest you include a review of bullion trading website bullionindia.in on this blog. The documentary requirements and whole process for trading looks so easy to me. Not sure about other risk factors
    Hope you would like this topic for further research and publishing

    Thanks,
    Rajat

    Reply

  634. I have a query regarding the capital gains tax treatment of the newly introduced DIRECT PLANS of mutual funds. It makes sense for everyone to switch to the Direct Plan from your existing plan as over a period of time, the returns will be higher in Direct plan to the extent of about 50 bps in a year. All mutual funds allow this switch (with applicable exit loads, if any). My query is regarding the capital gains treatment of such switches. For instance, if the existing investments have all completed one year and hence they are eligible for tax exemption (if equity oriented), I do not have to pay tax on any redemption or switch. However, after switching to a direct plan, will the clock start ticking new for computing the time period of LTCG or will the old clock continue. In other words, would I have to pay Short Term Capital Gains tax if I redeem the units in Direct plan within a year of switch in?
    This is an interesting topic and I would request comments from experts on this.

    Reply

    1. Yes, the clock starts ticking again newly after the switch-in. The switch-in is considered a new investment. Only the exit load, from a non-direct plan to a direct plan, is exempted.

      Reply

      1. If this is so, it is clearly unfair to genuine investors, whose interests SEBI is trying to protect. Not only do the investors have to take the trouble of doing the switch-in, they now have to contend with a lock-in for a further period of 1 year to avoid STCG. Clearly unfair. A better way would have been to make the existing schemes be treated as a direct scheme by default ie they should be asked to charge lower expense rates and have the brokers worry about having to enrol new investors into the regular schemes. This way would have ensured that the genuine direct investors continued in the direct plan without having to do anything.

        Reply

  635. Dear Mr Rammohan
    I am not very sure.The old title of ownership ends and a new title commences.The switch over is considered as a fresh investment and the clock starts on the date when fresh units are allotted to you under the direct plan. I, as a tax payer, hope I am wrong::::

    Reply
  636. Pingback: Is this the right time to enter or exit mutual funds?

  637. hi
    can u pls post topic – details about monetary policy and fiscal policy in india. how govt and rbi are involved in this

    Reply

  638. The lending rate at which RBI lends to other Banks is now 7.75%.I have few questions here.
    1.How does RBI ensure that the money,s lent will be repaid by the Banks?
    2.Is there a limit up to which Banks can borrow money from RBI?
    3.Is it only the last resort or can Banks borrow money as a matter of routine even when there is no genuine need?
    4.Can the money borrowed be used by Banks for purposes other than lending to their customers?
    5.Can the Banks borrow and use the money for say investment purposes?

    Ramamurthy

    Reply

  639. i have an query regarding the distribution of profits of MNCs working in india. for example,the citi bank releases the balnce sheet of entire south asia at once and does not release individual country profits.then it distributes the profits to its share holders across the world.is india not losing tax revenue ,when a company profits are moved out of country without paying tax?.if it is paying tax ,then how can the government be sure,it pays the right amount of tax ,if it is not disclosing the country specific balance sheet.

    Reply
  640. Pingback: Should you break a fixed deposit to buy a debt mutual fund?

  641. Kindly enlighten us on interpretation of Bond Yields & its relevance in Debt fund returns… & how to apply this for maximising returns.

    Reply
  642. Pingback: Answers to 5 questions about the Repo and Reverse Repo Rate

  643. Manshu – can you do a post on Sec 80TTA which allows deduction of Rs. 10,000 on account of SB A/c Interest earned. Also does it allow interest earned in more than one SB A/c (total adding up to Rs. 10,000)

    Reply
  644. Pingback: Free PDF download – beginners guide to investing in the stock market

  645. The benefits of National Pension System are being written in various publications. However the choice of fund manager depends on the past performance. Can anybody give some info on the returns of various fund managers under the NPS scheme over the last 1, 2 and 3 years ? Also can a subscriber switch between fund managers ?

    Reply

  647. I read this article “Have you invested in a ‘Level 10’ stock?Written by Surbhi Jain – Team MoneyWorks4me 25. Jan, 2013 ” Could you suggest some level 10 stocks we can invest in each sector ?

    Reply

    1. I don’t even know what a level 10 stock is. This is not an appropriate topic for this website. The person who wrote the article about level 10 stocks should be the one who tells you the names of a few level 10 stocks.

      Reply

  648. Sir,

    The internet is flooded with many fake trading tips advisory service. They make big big promises about giving profitable calls & after subscription they fail to deliver the promise. They even promise to refund the subscription amount in case if we are not satisfied by their service. When we ask for refund, they never respond to our requests. One such advisory I came across was Opt2Wealth. I had subscribed to their service & found that it is fake advisory. The track record uploaded on their website is fake. In my 8 months subscription, I never received the same calls indicated on their website. I even complained many times about not receiving calls as indicated in their track record. They never responded to my E-mails or never attended my phone calls. They had promised to provide at least 50 to 60 profitable calls in options but they hardly gave around 12 calls. Out of 12 calls only 3 calls made marginal profits & rest incurred huge loss. Now I’m requesting for refund on their terms, but as usual they are not responding. Therefore, I would want to legal action against them for failing to deliver the assured promise. Could you please advise me what is the legal options available to prevent such fake advisory services to cheat again & again.

    Reply

  649. Hi Manshu…
    Can u pls post on securities lending schemes…
    I have shares lying idle in my demat a/c and i dont intend to sell them for some years…..so how can securities lending scheme help me…
    Thanks in advance..

    Reply

  650. Dear Mr Ramamurthy,

    Liked your views.Everyone is talking about how to invest for retirement but hardly anyone talking how to take care of monthly expenses during retirement years. i am 57 yrs old and have to retire early due to my health problems.I need rs 50k per month for my expenses.I have no loans pending.Have 1 daughter to be married and would need 20-25 lakhs in 2 years for the wedding.I have my own house and my investment are as follows:

    equity- rs 45.0 lakhs

    mfs: rs 25.0 lakhs

    ppf: 15 lakhs

    wbr,

    zips

    Reply

    1. Sir
      I am not a professional finance planner and am just a retired person.
      So if you want any advise about how to plan your retirement days and to achieve your planned objectives you may have to pose your query to some one else.I think you may to furnish more details like
      1.where is your residence located and its market value
      2.will you get any pension and other monetary retirement benefits
      3.Furthur details of your Equity and MF investments
      4.As you appear to have health problems whether post retirement employment is ruled out
      5.Many economic newspapers and financial websites provide answers to specific queries raised by readers.

      Reply

  651. It appears Govt in 2013-2014 may go in for lesser borrowings as they have sufficient cash.
    Whether this is true or not I dont know.But,I do know that the Govt borrowings will influence the performance of Gilt Mutual funds.Can you please do a post on this?

    Reply
  654. Pingback: IPO Safety Net

      1. Customer loyalty programs done using Loyalty cards. Give a generic overview on the topic(covering all sectors) and give a detailed view in retail sector(single brand & multi brand retail)

        Reply

  656. Hi,
    I want to know the details & working of HOME SAVER LOAN. Also, how does it stands apart from Home Loan.

    Thanks

    Reply

    1. I think the first thing is to limit your exposure to co-operative banks. These things haven’t happened to other banks as far as I know. The second thing is to have your savings deposited in bigger banks and spread them around. If HDFC Bank or PSB bank were to fall under trouble then there would be a lot more action from RBI and government than in case of smaller banks.
      The last thing is to keep an eye out for articles and quarterly reports of the banks you have deposits in. If you see reports of continuous losses or any other negative thing then it is time to move your money elsewhere.

      The good news I think is that Indian banks are safer when compared to other banks globally and anything going wrong with them is rare.

      Reply

  659. Manshu,
    A post on 2013 budget would be good. I see interesting trends in this budget of taxing the affluent people in all sections also nothing much for the general income tax payer.
    Interesting budget I think.

    Thanks,
    Amit

    Reply

  660. In today’s Economic Times, there was a news that 1% TDS on sale of property costing more than 50 lacs will curb black money. I really wonder why it would happen? If a person can show 50 lac rupees on paper then why can’t he put 50 thousand rupees as TDS?

    In fact, what I was thinking is it will cause even more underpricing of real estate on paper.

    Reply

  661. Hi,
    Your articles are very informative and good.
    I would like you to review on the health insurance ,Top-Up insurance,Critical Illness plans available in the market.

    Reply

  663. Hi Manshu,

    Query Subject: Recent Budget-2013 change of DDT from 13% to 25% for Debt Funds

    In the recent Budget-2013 PC has increased the DDT tax on Debt Funds from approx 13% to approx 25% . This has made Returns from investments in these Debt Funds, (esp for retirees with Monthly or Quarterly Dividend Payout options for having regular income) in these Debt Funds (vis-a-vis Bank FDs) unattractive. This may be affecting even Debt Conservative i.e. MIP funds?

    My questions are:
    1) Which classes of Debt Funds are affected?
    2) What remedial action is suggested?

    Some people have suggested switching toGrowth Option and then use SWP to get regular incomes. Is that a good option? If so, when to switch to Growth and what aspects to take care while doing so in terms of Short-Term Capital gains, Exit load windows etc.??

    Would welcome a comprehensive reply on this topic. If already covered please proved a pointer link.

    K. Srinivasan

    Reply

      1. From what I hear (and read) the impact of DDT increase on Debt funds is such that Net Return would come down by 1% p.a. or so; which is a significant degradation. And the only way to counter this is to Switch to Growth Options (from Divd payout) in the same fund/scheme. I heard this Switch (of only Mode) will not incur any fund exit load and the Units will retain original “purchase dates” even after switch for future capital gains calculations.

        However, Capital Gains (esp ST Capital Gain/Loss) will apply for switched Units. Hence best to ‘switch’ just after a Divd Payout when there is likely to be least STCG.

        Further since this is effective from 1st June 2013 it may be advisable to wait till then to be sure its being implemented.

        Still look forward to Manshu’s detailed post on this topic and confirmation.

        Reply

      2. Manshu, thanks for your detailed reply post on this topic yesterday. I have two supplementary questions based on same.

        1) Where do MIP funds stand on DDT? i.e. before and after Budget 2013 (specifically funds like HDFC-MIP-LTP or Reliance-MIP).

        2) If one just changes from Divd-Payout (or QD, MD etc.) to Growth in the same Fund & Scheme will the Fund’s Exit loads apply?

        Reply

        1. Thanks for the suggestion.

          1. It depends on whether they are debt or equity. I believe most MIPs are debt plans. That’s identified based on how much equity to debt ratio they have. If they have 65% or more equity then they are equity else they are debt fund. HDFC MIP LTP is a debt fund, and as such will attract the higher DDT.

          2. Some fund houses allow you to switch between funds of their own houses without incurring exit loads. You can look at the fund website to see if that’s the case.

          Reply

  664. Sir Why our govt is discouraging investment in Gold inspite of the fact that it is very much safe investment. Generally investor s are less likely to lose his money in gold investment which can be not be guaranteed in equity investment

    Reply
  665. Pingback: Change of DDT from 12.5% to 25% for Debt Funds

  666. Hi Manshu,

    Subject: Need your suggestion for long-term investment plan

    My friend is school teacher and mother of 2 kids (5 yr, 1yr). She has ~1.50-2L in her saving accounts and wants to invest them for long term (10yr-15yr), to help higher studies of her childern. She expects to save ~50k per year in coming years as well and invest them also for same purpose. Her income is within zero-tax limit.
    Can you please suggest what options serve her purpose well.

    Reply

  667. Mutual Funds are now thinking of investing in securitised loans as it gives them tax concessions
    promised under the recent Budget.
    This I think is totally antifriendly to investors.It is such loans which caused the financial melt down in 2008-2009 from which the world has never recovered.I feel the investors have to stay away from Fund Houses which invest in such securities.Do you agree?

    Reply

  668. Can an Indian citizen get a loan against property from a bank in USA?
    The Interest rates of US banks are very low. What do you say?

    Reply

  669. In early part of my carrier , I was a cenral Govt officer (17-18years ago)and i used to prepare RE( for current FY)/BE statement(for next FY ) in every september for the various projects in my unit based on feedback from field units.. I didnot not understand the meaning of RE/BE then , and never tried to understand. Now I am intersested to know what is RE(Revised Estimate) and BE(Budget estimate).Sir kindly explain

    Reply

  670. One positive proposal coming out of the recent Budget is, Govt will introduce Inflation Adjusted Bonds.I dont know how it works but expect some thing like this example given below:
    1 Face Value of Bond and tenure : Rs100 , 3 Years
    2.Base Interest Rate: 8% payable once a year
    3.Inflation Index Reference: WPI(CPI would be more Appropriate)
    4.Inflation Index at the time of purchase of Bond,say on 1-4-2013: 100
    5.Inflation index after 1 Year on 1-4-2014: 120
    6.Interest you will receive on 1-4-2014 per Bond: 120/100*8=Rs 9.60
    7.Inflation index on 1-4-2016 when the Bond will mature: 140
    8.Amount you will get on the maturity date on 1-4-2016: 140/100*100=Rs140
    Is this how it will work or it is too ambitious? Any thoughts please?
    I also understand RBI have in their Publication dated 9-12-2010 have indicated their opinion
    on the modalities of this Scheme.

    Reply

  671. Dear manshu,
    I have invested in some mutual funds to the extent of two lacs of rupees. i have proposed furthur investment shortly. I would like to track their growth from my computer. Is there any software which will help me to link with market prices on daily basis so that i can know the status of my funds on the click of a button. I am not investment savvy and i am trying to become one in the long run.

    Reply

    1. Dear Ganesh
      There are many websites which can do this.Just to mention 2 such sites
      1.www.valueresearchonline.com
      2.www.moneycontrol.com
      Happy investing.

      Reply

  672. Hi Manshu,

    I regularly read your blog.. Thanks for sharing these fantastic ideas and articles.

    A thought came to me to make a stock market gains or loss calculator. Please provide me your email address so I can email you the excel sheet.

    May be the sheet i made is immature but together we can improve it and share it with readers of this blog.

    Reply

  673. 1-Dear Sir, I am working as Engineer and I took home loan on joint acount i.e myself is the first applicant and second applicant is my wife. my wife is not an employee just house wife. I registered the property on my wife’s name. when i submitted the loan statement in my orginastion, they are not accepting it. the reason they saaying is that the property is not registered on my name. can you please clarify this.
    thanks for your help.
    2- how can joint ( self +wife) in land property ,if property is wife name.

    Reply

    1. I am not sure how you can receive insurance proceeds outside India and what the tax liability could be. I’m sorry but I won’t be able to write about this.

      Reply

  675. There is a saying that its lot more cheaper to hire the services of a Financial planner than go by the advise of free planners that you encounter every day (more so during the last quarter of the FY). Point is how do you locate a good one before you experiment with one at a considerable risk. Can you please advise.

    Reply

  677. There are mediclaim policies offered by banks in association with health insurance providers. For example: All account holders in Punjab National Bank are offered a health insurance policy through Oriental, that is lesser priced than directly going with Oriental.

    What is the catch here?

    Reply

  678. Recntly Supreme Court fined INR 100 crores to Sterlite industries for polluting the environment. My questions are:

    Whom does Sterlite pay the amount and who takes the custody of it?
    Who decides on how to spend the fine amount?

    Reply

    1. I’ve read about this too but I’m afraid I don’t know much beyond what’s already reported and I didn’t find the details of who the fine goes to.

      Reply

  679. My father had an accident and he is insured with united india insurance (under corporate policy of my employer). To process the claim the tpa requires ORIGINAL XRAY COPIES. Do all insurance companies ask for it and if so how can be get back for our future reference

    Reply

  680. Hi,

    I was reading about the NPS scheme and realised there are 3 types of NPS accounts – Tier 1, Tier 2 and Swavalamban scheme.

    Can I request you to cover the differences and features of these different types of accounts and what is better?

    Thanks
    Anshuman

    Reply

  681. My Income tax (TDS) refund is not coming through since the last 3-4 years. I am an NRI and the CPC says I have to apply to TIN-NSDL for changing my PAN address from Overseas address to local India address if I wish to receive a paper /cheque refund. I am worried:
    1) whether the TIN-NSDL will issue another PAN card (which I don’t wish because I already have one on record)
    2) If it will in any way complicate me in filing tax returns online.
    Thanks in advance.

    Reply
  682. Pingback: What is the difference between FDI and FII?

  684. Dear Sir,
    This is V.Saraf, a Web consultant at Consolidated Energy Consultants Ltd. Bhopal, India and am working on Web based communications for this reputed Wind consultancy organisation. I have gone through your website and found that it would be appropriate if you may kindly add name of CECL on that site. We shall be grateful for kind response.

    You may like to browse its home site http://www.cecl.in. Working since 25 years.
    Thanks,
    V.Saraf.

    Reply

    1. The page that you are referring to has list of providers of energy and I think your company is in consulting so there is a difference, right?

      Reply

  686. Can u please post on Preloaded Foreign currency [Dollar /Pound /Euro] Debit Cards issued by Banks to Indians while travelling abroad ?
    After I returned back from USA I find there is a fradulent use though I am in India and the US $ loaded card has all along been with me.
    I came to know when I went to reload for my next trip.
    Took up the matter with my Bank Branch and made formal complaints including FIR, as advisd by Branch.
    Bank is taking a long time and I NOW FEEL they are intentionally delaying investigation.
    Whom can I approach for remedy to get back my money ?

    Reply

  687. Hi,

    First of all i would like to thank you to make this website which is guiding investor for better investing.

    I need your support in understanding none aspect of insurance: Top-up premium in life insurance.

    I have taken life insurance policy Kotak invest maxima with five years premium payment and 25 years policy term. I have invested first year premium of one lack rupees. I still have cash surplus which needs to be invested. As per policy document i am free to make top-up up to 10 X first year premium .ie. 10 lacks. There is no top-up premium allocation charge under this policy. The top-up premium shall be lock-in for five years. The top-up premium will require 1.1 to 1.25 times insurance cover.

    My question is: What are tax implication if i invest 1 lack rupees additional as top-up and withdraw that amount after five years.?

    My request to you is if you can post an article on “Top-up in life insurance it’s benefits and tax implication”

    Thanks & regards,
    Harshit Shah

    Reply

    2. Greetings Sir, I’d suggest that you do an article on the badla system in the stock markets for greater clarity of the readers..

      Thanks a lot!!
      Puneet

      Reply

  688. What do you think about this?
    PPFAS Long Term Value Fund
    http://www.amc.ppfas.com/

    I have been hearing a lot about this recently what are your views on this and how would you evaluate this Warren Buffet style of investing in Indian Markets. How successful do you think this would be from a Indian markets perspective

    Reply

    1. I honestly don’t see what the fuss is all about PPFAS Long Term Value Fund Anoop. It is an actively managed fund, and there’s no way to tell if the fund will do well except for seeing its performance for a few years. I really don’t have much to say beyond that.

      Reply
  689. Pingback: What is the difference between NPS Tier 1 Account, Tier 2 Account and Swavalamban scheme?

  690. HI Could you pl delve more into REITs and how they function? What are the cost structures, returns, lock in periods and limitations.

    Similar question on PMS schemes please.

    Thank you!

    Reply

  691. I am seeking your advice on the following information which I have relating to tax exemption:
    1.Any one having total income upto Rs 5,00,000/- in a year can claim deduction of Rs 2,000/- in the return.
    2. Saving Bank interest income upto Rs 10,000/- is exempt from income tax.
    I shall appreciate receiving your advice.
    Thanking you,
    Anil Doshi

    Reply

    1. Yes Anil, you are right on both counts.

      If your taxable income is less than Rs. 5 lakhs then you will have to pay Rs. 5,000 less as tax, and yes savings bank interest income is in fact exempt up to Rs. 10,000.

      Reply

  692. Dear Manshu
    With so many term plans flooding the market, I did not find any comprehensive comparison report or conclusive review of those on any of the financial portals. As I am a subscriber and follower of OneMint ,I would love you to take some time out and review the term plans in a rating from 1-10 for the N number of plans available.

    Personally, my confusion is between buying HDFC Click2Protect vs Aviva ilife and the premium difference for 1 cr cover is 2000/- between the two for me. Please suggest.

    Regards
    Aditya

    Reply

    1. Dear Aditya,

      This is an interesting topic, and I will have to think about how I can approach this – there are so many of these plans individually that I don’t know if I’ll be able to review each one of them individually, and will it be worthwhile as well because what factors do I look at except for claims payment data and cost. I’ll think about this, and do a post about it in future. But I’m fairly certain it will not be in as much detail as you’d like it to be.

      Reply

  693. Please post an article on safety deposit boxes in banks.
    – how much of the contents are insured,
    – what happens in case of fire/theft in the bank,
    – relative costs of safety deposit boxes in various banks
    – reporting requirements to tax authorities

    Reply
  694. Pingback: Are top ups on life insurance policies eligible for 80C deductions?
  696. Pingback: REITs in India

  697. Hi Manshu,

    Recently, the scam relating to Saradha group’s fixed deposits was uncovered. Can you cover the topic of risks associated with company fixed deposits. As there could be many Saradha (after Sahara) in the making, raising money from public.

    Reply

  698. Manshu,
    I am not sure if you have already covered this, but I thought a post on investment for kids would be very good for me and many more.
    What I exactly mean by that is, what are ideal instruments like, MFs, Debt funds, insurances ( which I would personally not go for , but nevertheless if someone wants to go for ) and any other which one can go for to invest for kids for their future like marriage or education or any other.

    Thanks,
    Amit

    Reply

  699. Hi,

    I was reading the post ‘Difference between FDI and FII’ and a very fundamental question came to my mind .. How is FII helpful to the economy and country in general. I can understand they buying bonds which are helpful to the company but if they invest in shares they will just be fueling speculation and will be advantageous to only a handful of traders and speculators. I would request some views and expert comments on this.

    Reply

  700. On what basis business channels estimates the earnings of different companies and in maximum cases actual figure is in line with their estimation

    Reply

    1. Business channels don’t estimate earnings themselves, they are just showing you what analysts are estimating, and more often than not, analysts are estimating based on what companies guide themselves, trends and other assumptions.

      Reply

  701. Hi,

    Since CAD is in news lately,
    Can we go through in detail what actually constitutes the current account and capital account.
    Foreign exchange reserves.
    What factors constitutes domestic currency fluctuations.

    Regards,
    Sathvik

    Reply
  702. Pingback: PPFAS Mutual Fund Review

  703. Hi Manshu,

    Read your article “Beginner’s guide to investing in Stock Market” and found it very insightful. However, me and many of my kinds who have turned 30 and have not started investing anything yet, how do you think we should start investing? Basically, the problem is we don’t know where to start except for savings or fixed deposits. How do we start?

    Reply

    1. It is an interesting question Rahul. I think I have addressed this elsewhere in parts, but perhaps it will make sense to do a full post on specifically this topic as a lot of my other friends have asked similar stuff as well.

      Reply

  704. Can ITC chang e its brand name now as the company is engaged in diversified business activities. What’s your view?

    Reply

    1. Hi, actually ITC has already done that long time back. When they got rid of the dots from ‘I.T.C’ and became ITC, it meant there is no expandable full form of the company. ITC was established in 1910 and this name is so well entrenched that it did not make sense to change it.

      Reply

    2. Are they planning to do that? I wasn’t aware of that. I think they can do that because most of the products they sell are huge brands on their own and don’t really need the ITC brand to strengthen it. This is probably a good idea to do a post on umbrella branding. I’ll see if I can do that.

      Reply

    1. Hi Sunshine

      What you want to know about online banking. Please elaborate a little.

      If want to start online banking then visit your home branch of the bank, do the required paperwork, get password and thats all.

      Want to know how to do it etc
      Then SBI has a very good webpage on “How do I”
      https://www.onlinesbi.com/personal/sbijava/howdoi/prelogin/retail_hdi_sbi_base_prelogin.html

      Also, you can get demo procedure (video) etc. on the HDFC Bank website

      You yourself is a techie (visited your blog, a good one) so it wont be difficult for you to follow and understand whole procedure and steps.

      Any more queries, then post them here, will try to answer.

      Reply

  706. Hi,
    I have query as to how you manage all your transactions(stocks/MFs buy and sell) in writing for taxation purposes. I am salaried person and I file my tax returns myself. Now how to prepare accounts so that i am able to properly keep records which would be valid and can be used for legal purposes(Read IT Dept).. IT dept has knack at going behind for Tax Notices on salaried ppl(even when politicians just roam free 🙂 ). I want to do all accounts properly. (Long term gains/Losses caryy forward year after Year etc). I believe this can be informative to lot of people reading this blog..

    Thanks/Anurag

    Reply

    1. I do it like this.My wife and I both are independent assesees and have different Bank Accounts.All our transactions are thro bank.
      I have following Excel files for each of us.
      1.Bank Statement where all bank transactions are recorded showing all receipts and payments which is a replica of bank Pass Book containing more details of transactions.eg if I purchase some shares this file will show the Name of the Company,No of shares purchased as per contract notes,Cost. Even when actual money is not involved like
      simultaneous sell and buy transactions are recorded here.
      2.Company/Fund house wise all transactions (Buy,Sell, Balance,Rs) are recorded in this.The Rs part of this files are linked with the Bank statement referred to above
      The Income Tax returns are prepared from this source data.
      This is how basically I go about.Any suggestions please?

      Reply

  707. Hi Manshu,

    Please consider the below institutions,

    Non banking financial institutions, Non banking financial companies, other financial institutions, commercial banks, Non banking financial companies-micro finance institutions (NBFC-MFIs)

    With regards to the above institutions, can you please explain the following.

    The differences between them
    The regulatory body for each of them
    Conditions to start each of them
    Functions of each of them
    Whether each of them have to deposit funds with RBI (CRR)
    and other suitable features which distinguishes each of them.

    Regards
    Sathvik

    Reply

  708. Sir can you write details how shares/stocks were transacted at stock exchanges before computerization of the system . I think at those days mostly floor trading was done. alos elaborate how seetlement eas done at that time

    Reply

    1. Excuse me please,santonu.Unless you want to write a history of Indian Stock exchange or attempting to write an exam,I wonder what use is this info in your investment life.

      Reply

  709. Dear Manshu,

    The current issues rocking the indian parliament are the Coalgate scam and the 3G spectrum. Can you please elaborate on the same.

    Reply

  711. Could you talk about the security of demat accounts in India? Can something like what happened at MFGlobal (Jon Corzine) happen in India? What happens when sharekhan’s or NSDL’s data center catch fire or is hacked by the chinese and all records of demat accounts are destroyed? If your broker (e.g. sharekhan) goes bankrupt, can the authorities come after the customer’s account?

    Reply

  712. Persons of Indian origin settled in USA / UK holding Passports of respective countries wanting to invest in Indian Blue chip cos. directly and not through FIIs.
    Can they open DEMAT a/c with Resident Indian relative as Second /First holder ? If not how can they invest in Indian Equity Market ? Many of us would like to hear your valuable comments.

    Reply

  713. Sir
    I have designed a plan for human waste treatment.
    This plan will produce bio-energy and bio-manure from waste.
    It will produce 1,000,000 m3 gas in city of 1 million people yearly.
    Cost of production is much less than any other source.
    Construction cost is less than thermal plant.

    For more details call me +919876462273

    Abhishek gupta

    Reply

  714. Hi Manshu,

    I was looking for something related to financial planning for older parents in the age group 50-55, could not find anything interesting. Someone whose current investments are mainly in bank FDs, NSC, PPF only. Should he invest in mutual fund/ETF now?

    Reply

    2. Hi Vivek,

      Mr. Ramamurthy is perhaps the best person to do such a post, sir do you have the time to do a post on this topic with your experience and insights? I’m sure it will be useful for a lot of people.

      Reply

      1. Thank you Manshu.I hesitate to offer any investment advice to others.So far my investments have produced good(not at all spectacular) results.I am 80+. So my post may not benefit or liked by persons in the age group 50-55.
        What I would suggest Mr.Vivek is to get advice from financial web sites like Valueresearchonline,Economic Times,Hindu Business line etc. They all have “Ask Advice” features.But while seeking advice he has to furnish more particulars like
        1.His present financial net worth
        2.Family commitments
        3.Has he any specific targets to meet?
        4.Is he living in his own house .
        5.Does he want totally risk free investments?Etc Etc

        Reply

        2. You are wise, and have managed your money well. I’m sure we can learn from your example, ultimately it is for people to decide which parts of your style they want to follow, and the onus is on us but just to hear out your plans will be good.

          Reply

          1. Oh God I certainly am not wise.I have just followed some suggestions from wise guys like you.My investment decisions are very ordinary and please dont expect much.
            OK for whatever it is worth I will tell how I went about it.
            So far I have just offered my queries and comments in One Mint and you are now asking me to do a post.I will do it.But please tell me how I go about it.Shoud I just send an E Mail to you or is there any other means of doing a post in ONE Mint.Now you can judge my wisdom.I dont know how to do a post. I have come running to you for guidance!!!

    1. That’s a good suggestion, I don’t think there are many details about this right now, but I will try to do a brief post with whatever is available.

      Reply

  716. Hi Manshu,

    I am curious to know about implications of bonus issue of shares. Is there any existing post on this at onemint?

    Rajeev

    Reply

    1. Hi Rajeev,

      No I don’t remember writing anything about the implication of bonus shares…it is an interesting topic, I will do a post on it shortly in the future. Thank you!

      Reply

  717. Hi,
    It will be nice to know the reason why gold is falling and what is the future of gold for this year.
    Thanks,
    Payal

    Reply
  718. Pingback: Why are bonus shares issued and what are their advantages?

  719. hi,
    can you show with an example that how to do analysis of a company to see whether it’s stock is worth buying or not…
    a complete example will help us to get going…

    Reply

  720. I believe when individual issues a cheque the default validity of the cheque is 3 months from the date of issue.
    Can an individual reduce this validity by mentioning “Valid Until 01-06-2013” on cheque?

    Regards,

    Mac

    Reply

    1. I do not know about the law on this issue.Suppose you dont want your cheque to be encashed at all but yet you are required to issue a cheque. You can specify a condition
      which the drawee cannot perform.Say you date your cheque 25-5-2013 and say valid till 26-5-2013 and post it on 25-5-2013.For this reason I think the law has specified the limit of 3 months.I have practical examples which some dubious companies employ in despatching interest warrants.The date of the cheque is several days behind they actually post it just to gain time for them to arrange for the funds.

      Reply

  721. Hi Manshu,

    Thank you for taking the efforts to run a really useful website. I would suggest you to write an article on the 0% interest consumer finance model that is successfully run by companies like Bajaj Finserv. If you calculate their EMI breakup, there is no additional charges on the surface ? How do they make money ? Stats state 1 out of every 5 flat panels sold are through consumer finance.

    Reply

  722. Hi Manshu, Some more topics to explore:

    1) List of banks in India which offer creating and breaking of FDs through
    internet banking.

    2) List of banks which offer free demand drafts for customers.

    3) List of banks that have facility of zero balance for savings accounts
    customers even those that are above poverty line.

    Thanks.

    Reply

  723. Can you make a post on fradulent use of DEBIT CARDS by overseas scamsters and appealing authority in India or MASTER/VISA Autorities ? SANKAR.

    Reply

  724. Can you make a post on fradulent use of DEBIT CARDS abroad by overseas scamsters and appealing authority in India or MASTER/VISA Autorities ? SANKAR.

    Reply

  725. I have purchased a credit card from SBI Chennai in my son’s name, who is just out of college ( for educational purposes).
    I had asked for only Rs 50000/= as limit. They took one FD in his name for a sum of 1,50,000/= and arbitrarily increased his limit to 1,25,000/=. I had been requesting them to reduce the limits to the level I had requested. But they are delaying it for reasons better known to them. Practically no action is being taken.
    Tell me whom to report since nothing happens at branch level. OR is it better to surrender the same.

    Reply

    1. Hi Ganesh… You should write a mail to the customer care team of the SBI credit card division to reduce the limit of your credit card and keep the history of this complaint with you for future use.

      Reply

  726. Dear Manshu,

    Request you to write a topic on “efficient frontier”though i read the same somewhere else but i think u will enhance the same topic in a much better way.

    Reply

    1. Hi G V Appaji Rao… It is better to invest your money with some credible companies/banks. Some people have faced problems in getting their money back with Unitech in the past.

      Reply

  728. I have few questions, haven’t come across post on these topics, Pls share links to post incase I have missed.
    What’s wrong with Indian Economy
    Why is Indian GDP low than that of other developing countries
    Does stoping gold import will improve Indian Economy
    Why is rupee depreciation continuing, what would help rupee to gain

    Reply

  729. Dear Sirs, I want to know that when Corpus fund is disbursed to the individual members during redevelopment of the housing society building, whether the corpus fund is treated as long term capital gain or under any other head for the purpose of income tax.

    Reply

  730. Hi Sir,

    Recently Mr. Raghuram Rajan(Fin Sec) said that govt. is not short of any measures to curb the falling rupee. I am to consider, that Monetary stabilization is prerogative of the RBI with its quantitative/qualitative/ conventional/non-conventional ways to check money flow.
    Would be a great help if you could enlighten on what are the govt. measures to check money flow, also i had seen of capital control by govt. in few non coherent sites(couldn’t understand).

    Thanking you in anticipation
    Dinesh

    Reply

  732. Enquiry about loans from bajaj capital at 5% rate of interest.

    Hi all, I am posting a topics after long. My PC is down and hence typing through phone… plz forgive for any typos.

    Since last 2 weeks I am getting phone calls from sales executive from bajaj capital. The agent claims to provide loans for an interest rate of 5%.

    All tht one has to do is buy a bajaj alliance policy for a premium amount of 10% of the value of the loan required. For 10lacs of loan required one has to buy a single premium policy with premium of 1 lac.

    5hen these guys would internally make themselves the policy nominee (both being bajaj entities)as a security and disburse the loan amount.

    this offer seems very attractive, and there has to be a catch to it. which is not being revealed. however though at 5‰ interest rates it seems to be too good to be true.

    I tried calling Baja capital Helpdesk no, they gave me their delhi HO no., which no one responds to.

    I thought to bring it on this forum to know your views, opinions and advice on this.

    this could be a boon to a needy, or it could be a con or a misinformed investment trap.

    Please suggest.

    Reply

    1. An offer that seems too good or to attractive should be thoroughly checked/investigated.
      There may be/should be some catch.
      Otherwise in this time of high interest rates no one is going to give loan @ 5%

      Reply

    2. I have also heard about this type of product from birla finance and when i enquired about such type of product from internally from birla i got there are no such type of product released by the Company.

      Can somebody more explain on this.

      Reply

    3. I have not heard of anything like this and it doesn’t sound like a real offer to me. I can create a post out of this question, and see if anyone else has got such offers and what their experience has been. Like others, my first reaction is to stay away from any such plans.

      Reply

      1. Manshu, That is a great idea!

        I believe more people would want to know about the truth of such schemes, may want to benefit from it or stay away as per their situation. This would be helpful to all of the audience. Please create a post for this.

        I have also asked the person to call me on friday evening to discuss more. The person has tole me the process would be online(raises more suspiscion) and documents need to be sent to a Bajaj Capital office in Marol, Andheri, Mumbai. This gives some assurance that it may not be a con, but still need to discover the catch.

        Will keep all posted

        Reply

    4. Spoke to the guy on Tuesday,

      Just to make it easy for him. I told him I am interested. The agent kept on confirming that there are no hiddend charges!

      One has to buy a bajaj Allianz policy and use it as a security to take up the loan, when I constantly asked him to share Terms and conditions (To make sure this is not a fraud) he asked me to goto: http://www.bajajfinservlending.in/salaried-personal-loan.aspx

      However I had to pull away myself for a meeting. So I gave him my frnds no. as reference, that friend of mine works with acturial dept of an insurance company.

      SO he may get more info. 🙂

      Reply

      1. Hey!

        I too got a call from reliance capital today, the person said that they will give loan at 0%!!!!

        Reply

        1. I also got a two calls from reliance capital offering a loan at 5% interest rate a week or so back. I thought it is too good to be true and told them to not to bother me with any personal loan offers as my mobile number is registered with DND. I did not ask for any offer details.

          Reply

        2. even i got a call just today from bajaj allianz(as i was told),they told me they could provide me loans @ 0% interest. i was shocked so i investigated a little bit to know that there are no such offers provided by them.

          Reply

    5. They may be offering 5% loan at simple interest rate and not on reducing balance. The actual interest rate will be much higher when compared with reducing balance interest rate of 5%. Banks usually offer loans on reducing balance interest rate. finance companies usually fool people this way.

      Reply

      1. That is a good point, though in this case I feel the company itself is not giving out any loans, there are some agents that are doing it without the authorization of the company, and it is not legit.

        Reply

  733. Request some write-ups for the people with disabilities;

    What special benefits are available to them and how should they go about it? for e.g
    Taxation (Professional/Income/Gift/Service)
    Medical (Free/subsidized/special cases)
    Travel (Concessions/special arrangements)
    Education (concessional loans/subsidy/courses/institutions)
    Housing…..
    Investments…..
    Banking…….

    There are many disables who do not know their rights and hence struggle in life, we hear and read a lot about senior citizens.

    Reply

  734. can you explain the breaking out level of a stock , whether does such level exist or it is only a hype

    Reply

    1. It is a term used by technical analysts and I’m not familiar with what it means since I’m not a trader or even remotely interested in that.

      Reply

    2. Investopedia explains ‘Breakout’
      In practice, a breakout is most commonly used to refer to a situation where the price breaks above a level of resistance and heads higher, rather than breaking below a level of support and heading lower. Once a resistance level is broken, it is regarded as the next level of support when the asset experiences a pullback Most traders use chart patterns and other technical tools such as trendlines to identify possible candidates that are likely to break through a support/resistance level.

      A breakout is the bullish counterpart to a breakdown.

      Reply

  736. is there a comprehensive listing of the book-closure dates for determining interest payout with respect to all the recently launched tax free bonds of Hudco,REC,PFC, IIFCL, etc. Most of these tax free bonds were issued in 2012/2013. I had invested in the REC bonds Tranche 1 issued in m march 2012. i am yet to receive the annual interest.

    Reply

  737. Dear Manshu,

    Can you explain whether the US will never get into debt as it can print as many dollars as it wants as most countries reserves are in dollars?

    Reply

  738. Departtment of Post has applied for banking licence and being an govt of India entity should it be allowed to enter in the banking sector.

    Reply

  739. The recent full page advertisement in ET about the fixed deposit scheme launch by geetanjali jewellers looked interesting. THe interest rate offered was 11.5 %. I was looking for CRISIL rating or any such type but could not get.
    My question is what could be the reason for such a way of raising money, is it something like an NBFC and how reliable could this be.

    Reply

    1. Companies raise capital from the public in the form of fixed deposits all the time Shilpa so this is not new. I haven’t looked at this scheme yet but in general for all corporate FDs I feel that if you want to take advantage of the higher rate that’s fine, but a lot of your money shouldn’t be put in the same company because if something happens to that company then you are pretty much on your own. At least in the case of banks, there is some sort of implicit understanding that the RBI will intervene to save banks because of the risk the failure of any one of them will pose to the economy, but no such intervention can be hoped for in other companies.

      Reply

    2. Hi Shilpa,
      A big warning from my side if you are thinking of investing your hard-earned money in Gitanjali Gems’ fixed deposit (FD). You please do not even think of it. There is a high probability that this company is in a big trouble. Read on why:

      http://www.btvin.com/news/article/2767/sebi-suspects-internal-funding-during-gitanjali-gem's-ipo-period
      http://www.business-standard.com/article/news-cm/gitanjali-gems-slumps-65-in-12-sessions-113070400597_1.html
      http://rakesh-jhunjhunwala.in/index.php/2013/06/29/n-jayakumar-of-prime-securities-loses-heavy-in-gitanjali-gems-bear-attack/#&panel1-2
      http://articles.economictimes.indiatimes.com/2013-06-29/news/40271733_1_prime-securities-n-jayakumar-nse

      Reply

  740. Manshu,
    few days you wrote about current deficit where you said the foreign countries want USD as their mode of payment and if they had accepted INR for their exports, Govt. of India could have printed as many INR currency as required. This might sound like a stupid question, but why cant GOI print INR, get it exchanged for USD and pay the foreign countries from whom it is exporting to reduce the current deficit.
    Thanks,
    Vivek

    Reply

    1. Current Account Deficit ( CAD) means where Export < Import, you can put it in another way, like you export a pen @ USD 1 but Import a cotton @ USD 2, if you convert it into INR, you are receiving INR 60 but on the other hand spending INR 120, overall loss you are spending INR 60, so now the concern demand and supply of USD in India, the supply of USD is less and we are paying more INR for exchange of USD, therefore losing more INR for USD, and whenever you are doing any Import you have to pay them in USD not in INR. Govt have very less USD and many people are demanding the USD for the trade so there is a demand for USD and people are ready to pay more INR in exchange of USD so that INR is depreciating, and lastly government cant print more money because Government has to control the inflation, If you have more money your consumption will be more and demand for that product will more, if demand is more in very short period of time the price will go up. so printing more money is not the solution, it again will give you the same situation after a span of time what we are in present, so only thing can be done to reduce the CAD that is increase Export, and reduce consumption of Gold and Oil 🙂 hope this will help you. Manshu please correct me if somewhere am wrong.

      Reply

    2. Very simply Vivek, as you know the price of USDINR changes every second, and if the government simply kept printing currency it will impact the exchange rate negatively and you won’t get the same rate that you got before all the printing was done. The rate will keep worsening to 70, 80 or even a 100 – that’s why they can’t simply print.

      Reply

  742. I wanted to buy a flat in Chennai, promoted by a small builder. when I got the documents verified by the property assessor, I understand that the construction has deviated from approved CMDA plan by as much as 45%. Promoter is telling me that it is normal in Chennai and I can go for it.
    Is it worth investing in such properties. Already some private financial institutions have advanced loans against this property and the remaining flats have already been sold out.
    Can anybody give me suggestions.

    Reply

  743. Dear Sir,

    Myself & my friend had applied for HDFC Bank credit card. Myself & my friend take home salary is between 23,000 to 28,000. He is having 2 home loans & once he was a defaulter of HSBC Credit card. I have only 1 personal loan & I have never taken credit card (or) nor I’m defaulter in any bank. After applying & submitting the documents, My friend had received the SMS from Bank informing that this application is under process. After nearly 10 days he received the Credit card. Where as I didn’t receive any SMS from Bank about confirmation of application. After few days I called the executive & requested to confirm my application status. He informed that due to poor CIBIL score my application is rejected.
    Since I have very little liability & not a defaulter I was shocked to hear this. Therefore, sir what might be the reason for rejecting my application & could you please let me know the procedure for issuing credit card.

    Reply

  744. What are the pros and cons of Partial Reserve Banking system which is followed across the world? Does it mean somehow or the other perpetually there would be debt?

    Reply

  745. Hi! Shiv,

    As you may be aware of the corporate fixed deposit offered by the Unitech Group at a rate of interest of 12.50% for 36 months, I wish to know your view on this investment scheme.

    I wrote to the Unitech F.D. customer service wanting to know their credibility in the absence of any rating from the rating agencies, to which I received a reply mentioning a point that they’ve been offering this investment schemes since 15 years now, apart from other benefits offered.

    So what is your say in this?

    Please reply.

    Thanking You!
    -Saurabh Kesharwani

    Reply

    1. Hi Saurabh,
      If I were to invest my money, I would have avoided Unitech FD. I’ve seen people facing difficulties getting their money back on maturity. Instead you can invest in Shriram Transport NCDs. The fundamentals of Shriram Transport are good and the rates offered are in line with their previous issues despite falling interest rates.

      Reply

      1. That’s a good point you shared, that you’ve seen people facing difficulties getting their money back on maturity.

        Was it particularly Unitech?

        And why do you think, is that so?
        -because of the Group’s management, may be?
        -because it’s an un-rated deposit scheme?
        or some other reason?

        Reply

        1. I have come across three such companies/groups i.e. Yash Birla group, Unitech & JP group. But, I think it happens regularly with manufacturing companies with either weak managements, weak financials or weak fundamentals. I think rated or unrated FDs does not matter. Also, lack of strict legal action is one reason which makes these companies become careless about depositors’ money.

          Reply

          1. I see!

            Please elaborate ‘lack of strict legal action’, as I am starting to divert a little part of my investments in company FDs as well.

            And, how much ‘strict legal actions’ are in place, in the context of NCDs?

  746. Sir,
    My topic is about service tax on Construction Services i.e. flats/apartments/floors sold by builders. Because I have noticed that rate of service tax is not charged in uniformity throughout India. In some states 12% is being charged and recently I got a advertisement regarding sale of flats at Goa where they are demanding 3.09 % as service tax.

    My query is regarding component of service tax out of total price of flat
    and rate of abatement. As all the builders are charging service tax on the total
    price of flats, which is not right. i think that as per rules rebate for lower end
    constructions is 75%, so taxable portion comes to 25% and for the higher end
    constructions rebate is 70% and taxable portion comes to 30%. please clarify
    if am I right, if so, then how to get the refund of excess amount charged by
    builder/developer as service tax. So three questions arise:
    (i). What is the rate of service tax on build up flats/apartments/floors
    (ii) What is rate of abatement on such properties
    (iii) What remedy is available if builder/developer is charging excess service tax

    Thanks

    G S Virk

    Reply

    1. Your understanding appears to be right, on the basis of what I learn from my charted accountant recently in Chennai. Tax is only for labor portion, which is assumed to be 25%.
      But builders are not giving the correct picture.

      Reply

  747. Your understanding appears to be correct on the basis of what I learnt from my charted accountant recently in Chennai. Labor charges are the only taxable portion under service tax, which is generally assumed to be 25%.

    Reply

  748. Understanding Hedging has always been a problem with me. As far as I have understood especially about currency hedging,it is just an insurance.Suppose I export a commodity to USA and invoice the importer say 100 Us dollar for the transaction.The goods are sent on 1-7-2013 and according to the agreed payment terms the importer has to pay me 100 dollars on the 90th day viz 1-10-2013.I do not know what will be the the exchange rate on 1-10-2013.So I enter into a hedging contract at 1dollar to Rs 58/-.This contract has a small price which I am prepared to pay. This will ensure I will get Rs 5800 on 1-10-2013 irrespective of whatever is the actual exchange rate which prevails on 1-10-2013.Is my assumption correct?If this is correct then how the cash profitability of a company is affected by the hedging gain or loss? In my opinion this is purely notional and does not affect corporate cash profit or loss.Am I right?

    Reply

    1. Theoretically you are correct sir, but in the real world companies aren’t able to hedge completely, and some companies leave their positions un-hedged deliberately in order to take advantage of the exchange rate movements.

      So all the problems that you see with Indian companies repaying their debt that they raised abroad is a result of these loans being un-hedged. So in the real world, these losses are not notional at all, they affect cash profit.

      Reply

      1. Accounting of forex losses needs to be understood.

        Revenue : On 1-7-2013 (Date of sale) in my account books, revenues are booked as per rate as on date of sale (lets say its 59 on 1st July).
        Forex movement loss (timing): Now, when actual date of payment comes (1st Oct), rupee goes upto 60 (assume), so actual forex MTM gain is measured 60 (rate on receipt) minus 59 (rate on sale) =Re 1, accounted under non operating losses.
        Derivative loss: But there is also a loss on derivative: hedged rate (58) – 60 (rate as on receipt) = 2 re. This is a real loss

        Net there is a loss of Re 1, you incurred due to timing difference and derivative trade.

        Reply

  749. I agree there is a possibility of cash loss in case the currency in unhedged.
    But a report says that the profitability of TCS is likely to be hit by HEDGING loss.This is what I wanted to know.How could there be a HEDGING loss?There can be a nonhedging loss.But hedging Loss?

    Reply

    1. So the derivative trade loss i mentioned in above reply is TCS’s loss. This means that assume in Quarter April-June, average market rate is 58, whereas TCS realises only 55 due to prior hedges, its a hedging loss. All hedges are measured against the prevailing actual market rate to measure their standalone effectiveness. And secondly, Mr Ramamurthy, forwards are obligations to pay, they are not insurance (you cant back out of contract if rupee depreciated). A real insurance in this case would have been buying put option on USD. Thus if dollar appreciated to 58, you may not exercise your put option (you only loose upto the premium)

      Reply

      1. Mr.Ankurm
        My question is simple.At the time I invoice(1-7-2013) the foreign customer,the exchange rate is Rs 58 per Dollar.So I show a revenue of Rs 58 in my book. Simultanueosly, I enter into a FE contract,Call or Put option whichever is necessary to protect my Rs 58.I understand this is what is meant by hedging.So I have already hedged the transaction.I have NOT kept it open.
        On 1-10-2013 my client pays me. Because I have taken hedging measure ,I get my Rs 58 irrespective of the actual rate of exchange which prevails.So where is the question of hedging loss? Whatever difference is there in foreign exchange is only a NOTIONAL loss/gain which does not appear in my books of account.So when TCS says it incurred hedging loss can we assume they have not hedged the transactions and kept it open?

        Reply

        1. Mr Ramamurty. 2 points:

          Firstly, if you buy put option at strike price 58, USD goes to 60, you will not get 58 irrespective of actual rate. Pay off on put option is Max (Strike price minus Market price). You will not exercise the option as market rate of 60 is higher. Your Net realisation would be 60 minus premium on option (lets say Re 1) = 59. The example you have in your mind is that of Forward or Futures. Lets understand that and its accounting.

          The Hedging loss and forex fluctuations are separate heads required to be reported as per accounting standards. Yes, on a net basis, hedging loss is an opportunity loss to the firm (in case of forward, where by hedging at 58, you lost the opportunity to receive higher rate assume 60 I.e. rate on settlement date or balance sheet end). But as derivative transaction is entered with the bank/dealer (payoffs to bank or company); so separate accounting of this transaction has to be done. Therefore this 2 rupee loss on derivative transaction is classified in the accounts of TCS as “Hedging Loss”. Since, you asked what is hedging loss on TCS’ books, so I explained this concept.

          Reply

          1. Secondly, I did a very basic analysis to prove the point, its bit more complicated. It is not necessary for transaction to be settled to be reported a hedging loss. You have to mark to market your receivables and hedging positions as on balance sheet end date. You have receivables outstanding on your balance sheet end date at weighted average forward rate of 55, that is marked to market against not the actual rate but the prevailing forward rate (as in offset position).

          2. Mr.Ankurm,Thanks a lot.I have already taken much of your valuable time.I dont want to impose furthur.It will take sometime to fully understand you.I will do it and also do a little bit of digging.
            One last question.If in the financial report of TCS I see a figure under the heading ” hedging loss”, what does it represent?Is it an actual cash loss or notional?An answer in simple words will be much appreciated.
            Again thanks a lot.

          3. Yes, its the notional loss we talked about (loss arisen due to decision of CFO to hedge). I was trying to explain the accounting for it.

          5. Welcome. Hedging loss is indeed only on the position hedged. Manshu mentioned earlier that companies leave certain portion of sales unhedged, that is accounted under the head general “foreign exchange loss”, and is a real loss. (due to timing difference).

            Generally, exporters take a call on amount to be hedged based on their net dollar position (Exports less imports & dollar liabilities). So, they leave certain portion of sales unhedged.

  750. I am 28 years old and without doing any research, joined the MetAdvantage Plus pension plan of PND Metlife paying 0ne lakh per year. I have given Rs 5 lakhs now and have Rs 5.25 lakhs to show for it (Accelarator mode). When should I get out of this? I understand that I have to pay tax the maturity amount unlike life insurance. Please let me know the tax implications.

    Reply

  751. In an effort to protect Re against the rising Dollar,RBI opened a Pandora,s Box.The Bond Prices shot up overnight resulting in huge drop in NAV,s of debt mutual funds.Even Short term Liquid Debt MF,s were not spared. What was once thought” NEVER”,happened.Huge redemptions from debt mutual funds are being talked about.What is your take?

    Reply

  752. Despite, all the macro economic gloom, I find HDFC Bank always reports 25-30% growth in net profits. This is phenomenal given its large base. Can we cover on banking sector performance and HDFC’s high growth in such a gloomy scenario.

    Reply

    2. Hi Ankur,
      Today Kotak Mahindra Bank and Axis Bank also announced their Q1 results. Though Kotak suffered a bit on asset quality front, both the banks had a good quarter and investors gave a thumps up to both of them. Earlier IndusInd Bank announced good quarterly performance and I think other private banks like Yes Bank, ING Vysya Bank, Karur Vysya Bank etc. would also perform well.

      The problem lies with public sector banks. I think their managements are inefficient and there is a lack of accountability as far as growth numbers and asset qualities are concerned. Though the scenario is gloomy, I think companies with good managements continue to run their businesses quite well. As always, companies in the manufacturing sector keep expecting some good policy actions from our inefficient politicians.

      Reply

  753. This is regarding the policy announcement of RBI on 16-7-2013.This means to a common man like me that in future the interest rates on borrowings will be higher.We all know that Govt of India is the biggest borrower.So my question is , if Govt wants to borrow money in future it has to pay a higher interest?

    Reply

  754. Recently RBI have announced hike in the interest rates which they collect from Banks.So,it is tougher for Banks to borrow from RBI.They have to look elsewhere to borrow.Will this result in the hike in Bank FD interest rates?

    Reply

  755. Hi Manshu,

    I have a query related to filing of ITR return.

    If someone is not in India, he can file the income tax return online, how will he submit ITR-V?
    Can he send a signed scanned copy of ITR-V to his relatives in India who can then mail post it to Banglore office or he is required to directly mail them the original copy from his current location? In the latter case is it really possible to send mail to a post bag from abroad?

    —
    Ashish

    Reply

  756. Re: Treatment of CORPUS FUND in the hands of individual member of co=op housing society
    May I request you to advise me how the Corpus Fund is treated either as a Long Term Capital Gain or as a taxable income in the year in which it has accrued.
    Thanking you,
    A C Doshi

    Reply

  757. Investments in Debt schemes of Mutual funds is in news.
    I have the following questions regarding this
    1.We are advised to invest in such funds which coincides our investment horizon with the fund,s average maturity periods.What is this “Average Maturity Period”?
    2.For example the average maturity period of L&T Gilt funds is 9.18 Years.Does this mean to get best out of the fund if I invest in it to day I have to hold it for about 9 Years?
    3.Does this also mean I should not be concerned with the day to day changes in the NAV of the Fund during these years?
    4.Can we estimate to day what will be approximate NAV at the end of 9Years?.If this is not possible, how can knowing the average maturity period help us to make investment decisions?
    5.I know the changes in NAV will occur because of changes in the market interest rates and NAVs can change if there are any defaults>
    Thanks.

    Reply

  758. Manshu,
    Every day I wake up to some sort of disappointing news about Indian politics and policies. Sometimes it makes me wonder if India is too big (in terms of size and population) to be managed by one government. State govts rely heavily on central govt and whatever policies (well intentioned or otherwise) fail to trickle down efficiently to the common man. I realize this is hypothetical but should India be divided into 2 to be better managed? I know this is an outrageous thought but how else can we expect to improve the situation? Please share your thoughts.

    Reply

    1. I share your disappointment but I don’t think size is an impediment. I think India has not done well because even after the progress made in the last two decades, Indian politicians and public alike don’t understand the benefit of free markets and capitalism.

      The second term of UPA makes me wonder if anyone really ever understood this in India because it feels like all the reforms that were made in ’91 were due to the gun that IMF held to India’s head.

      America and China are much bigger countries that have done really well. India itself was doing really well till about 4 or 5 years ago. I don’t think the country is un-manageable, there aren’t enough people who can manage the country well enough and there aren’t enough voters who truly understand what managing the country well means.

      Reply

  759. why does govt not take consent from minority shareholder/retail investors before taking a decision on divestment through OFS /stake sale or is it not mandatory for Govt to inform the investors.

    Reply

  760. Hello,

    I heard that LIC is closing its many popular schemes from 30/sep/2013. Schemes like Jeevan Anand, Jeevan Saral and Jeevan shree etc. What could be the reason?

    Reply

  761. LIC CLOSING ITS POPULAR SCHEMES

    Hello,

    I heard that from 30/sep/2013 LIC would be closing Jeevan Saral, Jeevan Anand and few other well known plans/schemes. What could be the reason?

    Reply

  762. Hi Manshu,

    I recently was considering buying additional term insurance from private companies and was talking to an agent in that regard. My question was that would the insurance that I buy be applicable globally? Someone might be a frequent foreign traveler or in future might become an NRI, but may not have a clear idea right now. His ambiguous answer was that you’ll have to report to the company everytime before your foreign travel! I find that as a lot of hassle and mostly impractical. Despite having an attractive premium it concerns me that these private companies might use foreign travel as a reason to deny claims. On the contrary, an LIC agent that I talked to very confidently denied any such requirement, claiming that LIC’s term insurance is valid globally and that is the reason why its premium is higher than private players. Another interesting point that he threw was that these private insurance companies reporting high claim settlement ratio is as outcome of just “settling” claims and does not necessarily mean paying the full sum assured amount. Thus, they negotiate over the amount to be paid, so even if they end up paying much lower than the SA, from IRDA perspective it is considered as claim settled!

    On the same point, for NRIs living in the US, is there a significant difference in term insurance premium between US insurance companies and LIC?

    Could you please throw some light on this topics. Thanks!

    Reply

  763. Dear Manshu,why are you silent on NSEL crisis . What are the reasons for strange upovement price for all basemetals in vommodity markets.

    Reply

  764. Hi Manshu,

    In share market, brokerage value is charged on every buying/selling transaction. Is the value for the company(whose shares we are buying) or for the NSE/BSE who carries out the transactions or both. Can you please explain on how brokerage is split up for every transaction and the constituents of brokerage.Please link me some good article. Thanks.

    Reply

  765. Hi Mohit

    Brokerage paid by an investor/trader is broker’s money. It has nothing to do with the Company or the Exchange. There is Turnover Transaction Charges that goes to Exchange, Service Tax and STT to Central Govt., Stamp Duty to State Govt., SEBI charges to SEBI.

    Reply

  766. Hi Mohit

    Brokerage paid by an investor/trader is broker’s money. It has nothing to do with the Company or the Exchange. There is Turnover Transaction Charges that goes to Exchange, Service Tax and STT to Central Govt., Stamp Duty to State Govt., SEBI charges to SEBI.

    All these charges are charged and shown separately in the contract note. So there isnt any problem in distribution.

    Reply

  768. About PPF
    Can PPF account be maintained by NRI if it has been opened before the person was resident. A
    Can a check from NRE account be deposited in PPF account if not can it be funded by resident money taken from wife’s resident account as gift.

    Reply

  769. Can PPF account be funded by self NRE account. If not, can resident funds of wife taken as gift can be used to fund self PPF account.

    Reply

  770. What is the difference between DMAT account (e.g. icici direct account with icici securities) and an ISA account (Invest at ease by icici bank) . I am primarily buying mutual funds. they both offer same service with nominal difference in fees. Is there any difference when it comes to paying taxes ? Are they both paying STT ? DDT ? for buy and sell of MFs ?

    thanks.

    Reply

  771. Right now NAV,s of almost all of them have taken an unprecedented hits and the jittery investors have resorted to wide spread redemptions at a loss.
    These funds have different maturity periods.Perhaps,the investors will not exit from the funds if they know at the end of each day the maturity amount they will get if they hold on to the fund till the day the maturity period ends.I know the investors will have to face the default risk.At least they will know the maturity amount they are likely to get if there are NO default risk.
    Why cant this data be published along with the NAV at the end of each day?

    Reply

  772. One interesting post would be as an advice to a lot of folks in their 30’s to 40’s on how to create a secure second income through safe investments so that they can quit their jobs and attempt to chase their passion / dreams or do a startup commercial venture. This is technically not retirement (as most retirement plans tend to be) but more of temporary suspension of income and how it can be offset in the most efficient way.

    Reply

  773. Hello Sir,

    I want to suggest a topic to your website…

    the topic is about share market and sensex, bse, IPO etc.

    Please write about these topics… I want more info from you…

    Reply

  776. Dear Receipient, I am looking for retirement plan. Could you please suggest some good retirements plans (Fixed maturity & ULIPs) plan. My cuurent age is 32yrs. Regards

    Reply

  778. Hi Manshu,
    Keep hearing regularily, that Bond Yeilds is lesser now due to USD appreaction, could you Please let us know what exactly does it mean. If the Bonf Yeild is low, does it mean that the bonds are sold at lesser value, so the buyer would be benefited as the Bond is sold lesser than the face value of the Bond.
    Thanks!

    Reply

  779. How to Switch Personal Loan to Housing Loan:

    I have taken personal loan for land purchase (which is not approved by local authority). After 1 year, Land is approved by Local Authority & I want pay balance loan as Home Load (Not as personal Loan). Is there any way to convert it.

    Reply

  780. I have purchased a L & T infra Bond of amount 20,000/ at Guwahati, Assam. unfortunately, I have not received the original Bond paper till date. Neither my agent has informed me anything nor any information from you. kindly acknowledge me know the present status of my bond and how to get the original copy of it. At present, I have only the acknowledgement slip of the bond application form with me. Details of the bond applications, are as given below.

    1. Name of Bond: L & T Infra Bond
    2. Application No. 25883785, Dated 29-02-2012
    3. No. of Bond : 20
    4. Total amount of the Bond: Rs. 20, 0000/
    5. Cheque No. 570126, dated 29/02/2012, SBI, Guwahati University Branch, ( IFSc Code of Bank : SBIN0002060 )

    From:
    Dr. Shyamanta Chakraborty
    UGC-Academic Staff College, Guahati University, Guwahati,
    P.O. Guwahati University, 781014, Assam
    Phone No. 9859976185(M),
    Email: [email protected], [email protected]

    Reply

  781. The current rupee depreciating is mainly atributed to high CAD. So we need to export more.
    But infact USA imports more than it exports and has high CAD. Infact it is higher than that of Indias. Then why isint dollars value depreciating.?

    Reply

    1. Sathvik
      I think the reason why Dollar is not depreciating is this.US dollar is in great demand by International communities.eg If India imports Crude from Saudi India has to pay in Dollars.
      Most of the international trade is in terms of Dollars irrespective of the currencies of the trading parties.
      Let me confess.I am not a foreign exchange expert.This is only my guess.I could be totally wrong.

      Reply

  782. Hi Manshu,

    Recently some of the companies that issued FDs are on the brink of defaulting. I am personally struggling to get my principal and interest back from Avon Corporation and Ind-Swift Ltd (I am sure there are more such companies). I think it would be great to let readers know so that they don’t lose their hard earned money to these company FDs. If you search FD complaints for these 2 companies, you will find so many people who are not getting their money back. If you write article I am sure you will more people like myself who burned their hands by investing in company FDs.

    -Amit Parashar

    Reply

    1. Hi Amit, Were these companies rated by rating agencies like CARE/CRISIL? What were there ratings? Thanks for reporting this, BTW. This needs to get more blog/media coverage.

      Reply

      1. VikasG,

        The FDs themselves are not need rated but the short-term or long-term debt of a company is generally rated. Both companies had reasonable debt rating and that’s why I invested. I am a regular reader or this blog and hope that the “FD scandal” will get its due space here.

        Reply

  784. A lot of personal finance books written for US Citizens deal with ‘Individual Corporatization’ ie. forming an LLC or even a company to receive Investment income from fixed income, Rentals etc. The advantage seems to be that (a) a large no of expenses (Office, stationery,travel, Internet, Staff etc) can be deducted and only the residual profits subjected to tax (b) Assets are free from attempts at attachment through lawsuits, divorce suits etc. and (c) Ease of transfer to heirs as only the shares in the holding company need to be transferred, not every investment on its own.
    What are your views on this topic regarding Indian citizens? Would it make sense for a person in the highest tax bracket who has just retired and got a large sum through VRS etc to form his own Investment Company and route subsequent income and expenses through it?
    Initial research reveals that it takes just Rs 1 lakh in seed corpus to form a company in India!

    Reply

  785. Hi Manshu,

    I would like to request you to do an article on currency swap and how does it
    stop the downfall of INR and also please give your long term view on INR.

    Thanks n kind regards
    Deepak

    Reply

  786. Can I a resident Indian individual walk into any Bank and get dollars at the prevailing rate of exchange by offering the equivalent rupees?If yes, suppose the exchange rate is Rs 66 per dollar
    I give Rs 66 to the Bank and get 1 Dollar.I keep this 1 dollar and suppose the exchange rate at a future date is Rs70 per dollar I offer it and get 70 Rupees from the Bank.Can this be done?

    Reply

  787. How come no one is talking about investment in international
    mutual funds?Some of them are giving now an annual return of about 35%.

    Reply

  788. US $ LOADED MASTER TRAVEL CARD ISSUED BY AXIS BANK FRADULENT TRANSACTION TOOK PLACE IN USA. BACME AWAARE AFTER REACHING INDIA. COMPLAINTS LODGED WITH BANK AND FIR DONE AT LOCAL PS. BANK RELUCTANT TO TAKE ACTION AND DELAYING.
    WHOM TO APPROACH FOR SPEEDY & EFFECTIVE ACTION ? CONSUMER FORUM /RBI /FINANCE MINISTRY ?
    SANKAR.

    Reply

  791. Hi,

    Many banks does not charge penalty for premature withdrawal on fixed deposit. But few banks charge 1% of the applicable interest rate. Can you please write an article on this new changes to FD?

    Velu

    Reply

  792. Please explain the difference between Total Debt, Total Public Debt, Gross External Debt , Net External Debt.

    Please explain the difference between Trade deficit , Current Account Deficit and Fiscal Deficit, Revenue Deficit , Budget deficit,Debt to GDP Ratio.

    Please explain the difference Term Policy, Endowment Policy and Money Back Policy ?

    Please explain the difference between Hybrid Funds, MIP, Floating Rate Funds, FMP and Dynamic Bond Funds.

    Reply

  793. I am a regular investor of equity for last 10 yrs through mf only, sometimes i feel attracted for taxfree bonds or infrasticture bonds or some IPOs . but i ve not opened an Demat ac yet simply cuz i ve never required it plus unnecessary annual maintenance charges. Do you feel for only bonds/ipo I should open one or in other words is there any other use of demat ac ( i am comfortable with mf trasaction on electonic mode, dont need demat ac for that and dont want to buy stocks directly ).

    Reply

    1. you will not have to pay imaintenance fee if your stock value is less than Rs 50,00 per anum and only Rs.50 if it is in betwen Rs.50 K to one 1 Lac as per basic demat service. so opening a basic demat will not be a problem

      Reply

    1. It includes stocks,MF,bonds. I made an error above, the fee structure is as below

      1. 0-50K No annual maintenance fee
      2.50K -2 Lac- Annual maintenance fee isRs.100
      3.Above 2Lac- Normal charge will be applicable

      T &C:- You can have only one DMAT A/C.If you have two Demat A/C then you can avail Basic Demat Servic Account

      Reply

  795. Thanks Santonu for information.
    Do banks/DP charge for buying taxfree bonds or when it matures after 10/15 yrs. How will I get intrest if buy those on physical mode. I am staying in a small city of Orissa, even didnt find much informatio about taxfree bonds from banks, where from a person from a small towns find the bonds in physical mode. Thanks again.

    Reply

  796. Manshu,

    Can you provide an article on ‘ US Fed Shut down’ and more importantly, how would this affect Indian economy. Will this help the economy to recover, like FII would they start to invest in emerging c0untries due to Fed shut down.

    Thanks,
    Amit

    Reply

  797. Can you pls post various commission that an agent gets or to put in different way how does and how much an agent earns when he sell you say LIC policy or MF or Company FD or Post office scheme ,Bonds etc etc.or any other financial product?
    This article will be tough one.
    Thanks

    Reply

  798. I have been a very keen follower of your posts in Onemint blog and and I must commend the way you present the analysis, very lucid and simple to understand for layman investors like me

    I have recently got back from USA and and with the attractive dollar rates right now I have transferred my savings to India. I now have a lump sum capital of around Rs 10 Lacs and need a way diversify my investments into safe instruments with an outlook of around 5 years or less and gain maximum returns

    Any post on this topic would be very helpful for a lot people who have a similar dilemma.

    Reply

  799. Hi,

    Everytime I read an article about world economy or Indian economy, I face some words which are general to an economist, but a layman like me struggle to understand that article. In your website I want you to throw light on how economy works and some general terms regarding economy. How price going up/down effects other countries currency?.Why US currency is taken as a reference?What exactly is inflation and how some of the policies generated by RBI affects inflation and price rising. Please post some articles like this coz I ‘d love to learn those terms and understand every part of the economy.
    Thank You

    Reply

  800. Dear Sir,

    Can you write a post on investing in Post office MIS and the interest thereon getting credited to a RD which becomes self financing and the total rate of income generated thereon.

    Reply

  801. Hi Manshu,

    Can you provide an article how are Indian and Chinese economies are similar/differ to each other.

    Reply

  802. Hi, can you suggest ways for Indian citizens to invest in US Bonds beacuse as of now mutual funds are available for US stocks but I cant find way to invest in US bonds for small investors.

    Reply

  803. Hi Manshu,

    I have heard about the term “Common Stock”. Surfed and got to know abstractly. Can you write a post on it or give me a good link to know more about it detaily.

    Thanks.

    Reply

  804. Tata Global Beverages Low coupon bond. Or any other Low coupon bond.
    Should Investors touch it?
    Kindly provide your view on this.

    Reply

  805. There is an important change in the Reverse Mortgage policy.Earlier Banks were offering this scheme only for 20Years.Now a change has been made.Now there is no age cap.
    The mortgagee gets the benefits for life time.

    Reply

  808. Manshu ,you often write that you pick up stocks when market is down or stocks are at attarctive level.What is your strategy when market is high like these days ,sell or wait for further fall or keep idle

    Reply

  810. Hi Manshu,

    There are a number of tax free bonds in the market every year, for the past 3 years.
    The interest rates are different for each bond in each year!
    What makes it more complicated is that the interest rates are different for the same bond if you have got a direct allotment or bought it from the stock market.
    Each one comes with a different date of interest payment.

    With all this, it has become really difficult to track the interest payment. I also find it difficult to link the bonds to their Scrip ID and Code because of the long list of bonds in my statement.
    I also don’t know in which month will I receive the interest of the bonds that I purchased last year.

    Would it be possible for you to have a table with the following details as one of your articles?
    Company
    Year of Issue
    ISIN
    Scrip Id
    Scrip Code
    Rate of Interest (Direct Allotment)
    Rate of Interest (If purchased later)
    Due date of interest
    And anything else that you find appropriate…

    I’m certain it would benefit a lot of people.

    Regards,
    Deepak

    Reply

  811. I shall be deeply obliged if you can do a post on Quantititive easing.I would like it to be exhaustive but simple to understand.If you do not find time to do this can you please let me have links to some web sites which have done such an excercise.I googled but it was not a success.Thank you again.

    Reply

    1. Manshu,
      I agree with Ramamurthy’s point. I too would always like to have a simpler explanation of the QE, which you provide in an apt manner.

      Thanks,
      Amit

      Reply

  812. Introduction to investing.
    1) How to get started in the fascinating world of investment?
    2) Procedure to open a DeMat account etc…
    3) Any website which can be used to buy stocks etc. (being new, i am guessing that Sharekhan is such a website. But pls suggest ones which are good and easy to use and follow)

    Thanks!!!

    Reply

  813. Hi..
    Introduction to investing.
    1) How do I get into the fascinating world of investing?
    2) Procedure to open DeMat account etc.
    3) Any website that I can use to buy and sell stocks (being new I am guessing Sharekhan is one such website. But pls suggest ones that are easier and better – lower service charges etc)

    Thanks!!

    Reply

  814. I am trying with different DPs to open a Basic Demat Ac but still not suceesful. Can any one have an suggestion. Thanks

    Reply

  815. If we have to compare a stock performance with respect to its previous year, which will be a better tool -its market price or market cap. Market price may be misleading because it is linked with bonus share/stock split

    Reply

  816. I read in one of finance journals that BSE index is at 15xFY15 earning.
    Can you please let me know what does this mean and how is it calculated?

    Reply

  817. sir/madam .. i am preparing for a B school interview where my basics in finance is going to be tested. Hence i tried reading micro-economics and macro-economics higher school text books . However they are too humungous and are from a school exam point of view. So Is it possible for you to send me some material or come out with weekly explainers that are essential to understanding the world of bussiness , finance , stock market and numerous other jargons that come out in papers like Business line , Economic Times

    Reply

  818. Hi,
    LIC is withdrawing 34 policies from Jan 2014. I am a policy holder in Jeevan Anand since 6 years. Will I be affected ?

    Also they claim that they are withdrawing due to norms from IRDA. What are they ? What are the discrepancies ?

    Thanks
    Karthik

    Reply

  819. What is the impact to financial accounts owned by an Indian once he moves to a foreign nation for employment. What is he supposed to do with his savings accounts, mutual funds, demat account, PPF account, EPF account etc. Can you please do a writeup on this. Though I can find the information in internet I want to see your thoughts and also the experience of onemint readers on how they deal with it.

    Thanks
    Johnny

    Reply

  820. Given current 9 % yield of Government bond, I would like to lock it by purchasing long term gilt fund. Which gilt fund will you suggest for that? I would like to have gilt fund which always keep maturity around 10 years and does not charge more than 1.5%. So that I will be sure that my objective of “long term” gilt fund is met.

    Reply

  822. Hi,
    I am the regular reader of your article, which gives good knowledge about financial sector. I am investing in share market for couple of years and taking good returns of 5-7% per month. My topic is “what hedge fund guys are really doing?, and will be able to get same returns in India like other hedge funds in united states?

    Thanks,
    Prabakaran

    Reply

  823. can you write a topic about the difference of our behaviour /approach while purchasing through cash and credit card.

    Reply

  824. Manshu
    Market is around all time high. You have had a nice post on :thoughts on equity, gold, FD, house etc. Please go for it again.
    … common investors like us neither able to calculate forward PE of market nor identify the phase of the business cycle. They always remain in confusion : Should I start today (when market is near to all time high) a new MF SIP if there will surplus fund every month ?
    … regarding gold… they invest in gold not as an investment but to meet future social requirements. And looking to recent changes in govt’s gold policy, what one should choose : GOLD ETF or GOLD coins. Is there any threat to Gold ETF funds ? Which GOLD ETF is better at current situation ? Why the prices of GOLD ETFs like GOLDBEES, KOTAKGOLD and SBIGETS are different ?
    Please spare some time and post your thoughts…

    Reply

  826. Please enlighten us about rules, benefits and accounting of capital gains accounts with banks for depositing sale proceeds of house. Thanks

    Reply

  828. Please do write article related to retirement planning . This aspect is mostly not addressed during initial phase of life. How to create core corprus without having risk of capital erosion and regular flow of income. The product should be tax efficient.

    Reply

  829. Its really feels awesome reading your articles Thanks!!!!!!!!!!!!!!!!!!!!!!
    Somebody told that 1 US dollar stands x amount of rupees………
    1) Why we accept that
    2) How they found the exact values

    Reply

  830. Castrol is reducing its Capital from Rs 10 paid up shares to Rs 5. Can you pls advise how this will work for small investors like me and what will be the likely impact on share price in future?
    I think this is the first time any Indian company is taking this route for capital reduction?

    Thanks

    Reply

  831. Hi Manshu!
    I have a topic which I think would resonate with a lot of working professionals. I work in an MNC and am covered for medical insurance for self and dependents for Rs. 5 Lakhs by my employer. However, given the rising medical costs I feel I should go for an additional floater.
    My details : 27 years single male with dependent parents (mother & father)
    Question : What would be your recommendation for an additional floater? I’d like to choose a value insurance provider since I already enjoy a good base coverage from my employer. Please note that I also need to be able to add my spouse and kids as dependents in the future.
    PS – Was looking at Oriental Happy Family Floater (Silver Pack) as a viable option – your comments?

    Reply

    1. Hi Jatin,

      Thank you for the suggestion but I won’t be able to write on this because I’m not very well versed with the products in this area.

      Reply

  832. HI,
    May I request you to post on the Income tax deductions for people having two houses with home loans, with one being used as residence and other generating rental income?
    I know that rental income on second house (if any, else notional / standard rent as per the area) is part of income and the interest portion from the loan can be claimed for IT deduction in addition to the home loan interest (& principal repayment under 80C) for the home where one is residing. But I believe many people are not aware of this and end up hiding the rental income (& second home loan interest) and then paying “more” income tax.

    Cheers,
    Sagar

    Reply

  833. Hi Manshu,

    Would request if you could do a post on Assured Savings plan, Life insurance companies these days are luring customers with pay for 10 years and get guaranteed income after 15 years at 8% return and that to tax free. Should one be lured by such products.

    Reply

    1. I am yet to see an investment product from an insurance company that is worth considering, and I’ll be surprised if this changes anything. I’ll take a look though.

      Reply

    1. Hi Gaurav,

      FIIs started taking out money from the debt markets when US Fed decided to taper QE3 in May and also when CAD was a big problem for the Indian financial system. Now, with QE3 tapering factored in and CAD situation getting better, they probably think the worst is over for the Indian debt markets and so have decided to put their money here.

      Outflows from the equity markets were limited, so are the inflows. You’ll see higher inflows into the Indian equity markets with some improvement in the economic growth and with a stable & decision-making government at the centre, either Modi-led government or Kejriwal-led government.

      Reply

  837. HI,
    May I request you to post on the Income tax deductions for people having two houses with home loans, with one being used as residence and other generating rental income?
    I know that rental income on second house (if any, else notional / standard rent as per the area) is part of income and the interest portion from the loan can be claimed for IT deduction in addition to the home loan interest (& principal repayment under 80C) for the home where one is residing. But I believe many people are not aware of this and end up hiding the rental income (& second home loan interest) and then paying “more” income tax.

    Cheers,
    Sagar

    Reply

  840. Hi,

    Can you pls write an article explaining the co-relation between commodities,equity and bond market.
    Thanks

    Reply

  841. Hi Manshu & Shiv, can you please cover the topic of RBI phasing out pre-2005 notes. What is the impact. How will people with excess black money/ cash be able to get rid of those notes and who will accept such expiring currency from them?

    Thanks a lot

    Reply

  842. Hi,

    Can you pls write an article regarding the various options available to get monthly income to an individual like govt. schemes,any pvt.shemes,mutual fund which give montly dividend etc..pls also write about the taxation aspect for these options.
    Thanks.

    Reply

  843. I would like to suggest a topic for discussion:-

    Future Investments Strategies ( for e.g TFB, IPO, etc… or of similar kind) to catch upon in year 2014.
    With the initial analysis done, we can have a goal set to keep that much money aside and look forward for that investment.

    Reply

  844. Can any one you please tell from tax implication point of view what is the difference of dividend payout and dividend reinvestment of a liquid fund.and from a investor point of view which one is better – daily dividend/weekly dividend/ monthly dividend
    With regards,
    LN Sahoo

    Reply

  846. Hi,

    I recently stumbled upon your website. I am a techie with little to no knowledge of markets or investment area and would like your advise on how to put my money to good use.

    As of now , I have decided to split my investment corpus into 4 parts:
    1/4 in PPF
    1/4 in a Low risk investment like a FD/Tax free bonds/NSC (please suggest which one i should opt for)
    1/4 in a medium risk investment like a ULIP
    1/4 in a high return/risk Mutual fund.

    All of them would be a monthly investment. Could you please provide your inputs on this or if possible write a detailed topic(or point me to an appropriate post).

    Also I am being heavily suggested by a friend to invest in ULIP’s to get adv out of 10 10 D. Please let me know if that is a good idea or is there a better investment available.

    Reply

    1. Hi Nitin,

      As a techie myself, I understand your situation. But after the little bit which I have learnt, ULIPs are a bad option. Also your split above should ideally be decided by both your age as well as family responsibility. You can get posts on OneMint for both, look it up!

      IMHO if you are on younger side, 50% of “safe” investment (PPF + FDs/TFBs/etc) is too conservative and you would end up getting a lower return overall. You could instead look at well rated Mutual funds to up your returns.

      Good luck!

      Reply

  847. Is it better to buy tax-free bonds from secondary market which are now getting around 4-8% discounted rate or go for fresh applications?

    Reply

  848. Manshu,
    Market is all time high.
    Is it time to exit or enter ?
    Is it time to redeem/sell poor performed MF / Equities ?
    Is it time to book profit for good performed MF/ Equities and keep cash for investing at fall.
    … a small post please.

    Reply

  849. 1) BEST TAXFREE INVESTMENT OPTIONS WITH MAX. RETURNS WHERE WE DONT HAVE TO GO THROUGH THE ANNUAL NONSENSE OF CALCULATING CAPITAL GAINS – SHORT TERM, LONG TERM, medium term(congress will invent this too)! etc.

    2) BANKS LIKE HDFC WHO CHEATED MILLIONS OF CUSTOMERS SO FAR IN SWEEP ACCOUNTS THROUGH ‘FIFO’ INSTEAD OF ‘LIFO’, WHICH THEY DID ONLY RECENTLY AFTER MY 5-YR. LONG FIGHT WITH THEM!

    Reply

  850. Dear Manshu
    I remember sending a mail earlier regarding Real Estate market in India. and you wrote one article on the same. Now its long time that this article needs to be updated and to have latest updated information on real estate trends in India. Are we still bubble in Real Esate in India or real estate market has a long way to go before any major correction. A detailed article is expected with indepth analysis of market for general investors since most of the investors are still waiting on sidelines -whether they have missed the chance to invest OR still thre is a value left in Real Estate in India. Thanks

    Reply

  851. Kukreja Sir/Manshu Sir ,please give your valuable sugesstion in respect of LOHA -ISPAT IPO which is active now as this this the major IPO in NSE/BSE platform after a long time. Should we go for it

    Reply

  853. I’m keen that we somehow start a theme that compares keeping your money abroad (in say USD, GBP or SGD etc) vs sending it to India for investment purposes. Which is to say, how do foreign currency gains v the Indian rupee compare with high interest rates (on a/c of high inflation) in India.

    Reply

  854. Hey,

    Can you please explain the reason for the increasing importance of silver and why people are advising you to buy more silver now as it will be an important investment for the future? How did the importance shift from gold to silver? Also, what is the best way to invest in silver?

    Thanks!!

    Reply

  855. I think you must be planning to write a post to review the new CPSE ETF. In any ways, I thought it would be good to tell you that I’m waiting for that kind of post and would be helpful for a lot of people like me. Thanks in advance.

    Reply

  856. Dear Manshu,

    This is regarding the gold plans offered by Satyug Gold (a new firm promoted by Shilpa Shetty et al)

    The 5 year plan offered by them is interesting as it gives a 37% “discount” on the gold rate.

    It seems near impossible that the price of the gold will fall more than 37% in 5 years.
    The lock in of 5 years is acceptable as I don’t intend to sell the gold.
    The only concern is the credibility of the company. Is there any other catch or loop hole that I am not able to spot?

    Would you invest your money in this plan if you wanted to include gold in your portfolio?

    This can be an excellent article to make people aware of an alternative to invest in gold – or make them aware of the pitfalls.

    Reply

  857. Why is indian bond market and gsec yields struggling when other macros are significantly improving ? Inflation soothing , equity markets making new highs every day, FIIs pumping into the markets, Rupee rising.

    Just trying to understand why the debt market is left behind ? Could you please do a post highlighting the factors affecting this ?

    Reply

  858. Don’t Ask ” How ” ?

    At the bottom of the 42 page Election Manifesto of BJP , released yesterday , I tried to search , if in very small print somewhere , there was a footnote which read ,

    ” Please , don’t ask how we plan to implement these promises ;
    From where we plan to find all the money to execute these projects ”

    Here are my back-of-the-envelope estimates of what some of the MAJOR projects might cost :
    ————————————————————————————
    PROJECT ……………………………… Approx Cost ( Rs Lakh * Crores )
    ————————————————————————————-
    > 100 Mega Cities…………………… 90
    > Interlinking of Rivers……………… 60
    > Sagar Mala of Ports……………….. 30
    > Highways ( 25,000 Km )………….. 50
    > Housing ( 100 mill units )………… 100
    > Rivers Cleaning…………………….. 10
    > Other Infra Projects……………….. 100
    * Freight Corridors
    * Gas Grids
    * OFC Network
    * Quadrilateral Bullet Trains
    ————————————————————————————
    Total ……………………………………Rs 430 Lakh Crores
    ————————————————————————————
    Admittedly , not all of these money will be required in the very first budget that NaMo government ( – of course , only if voted to power ! ) , would present by end June 2014

    But a problem does not go away by postponement !

    There is only ONE viable solution to the FUNDING problem , viz:,

    > Union Government must NOT even try to fund these projects !
    There is NO WAY , it can find these kind of money thro taxation !
    There will be a revolt !

    ANSWER

    > Make it possible for the PUBLIC to invest into these projects by ” owning ”
    these projects – and earn a reasonable ” tax-free ” return on investments
    ( Bonds ? ) in these projects

    > Towards this end , create various INFRASTRUCTURE SPVs

    > Immediately modify PERSONAL INCOME TAX regime as follows :

    > Up to Rs 5 lakhs………………… NIL
    > 5.1 – 10 lakhs………………….. 8 %
    > 10.1 – 20 lakhs…………………. 6 %
    > 20.1 – 50 lakhs………………… 5 %
    > 50.1 – 100 lakhs………………… 3 %
    > Above 100 lakhs…………………. 1 %

    What is likely to happen with such ” INVERSE TAXATION ” regime ?

    Following few things :

    > Total personal tax payer base will go up dramatically from current 4
    crores tax-payers

    > with this ” INVERSE TAX REGIME ” , there will be no incentive to evade
    taxes and to generate ” BLACK MONEY ”

    There will be no resistance to accept ALL payments by cheque / electronic
    clearance

    The more you disclose as your income , the less you pay by way of taxes

    ( Of course , incrementally )

    > For a change , we will learn to reward honesty / efficiency / productivity !

    No need to bribe those Income Tax officers !

    > Suddenly , lakhs of crores of BLACK MONEY will become WHITE MONEY

    > There will be a huge surge in bank deposits ( – even with , the inevitable
    lower interest rates )

    > Banks will be awash with funds to finance businesses / infrastructure
    projects etc , encouraging entrepreneurs / self-employed to set up new
    businesses ( at 2 % interest rates of loans ) and generate millions of jobs

    In any case , BJP manifesto promises :

    > Rationalization and simplification of the tax regime – which is currently
    repulsive for honest tax payers

    > The process of bringing black money to India , what belongs to India , will
    be put in motion on priority

    > Minimize scope for Corruption

    Narendrabhai ,

    Here is your chance to ditch the ” Historical Baggage ” into the Indian Ocean
    and come up with an INNOVATION that will take India ahead of China !

    If President Kubitschek of Brazil ( 1956-61 ) – son of a poor salesman – could construct Capital city BRASILIA and a 1500 Km highway , in 41 months , surely , you can do better , 57 years later !

    * hemen parekh ( 08 April 2014 / Mumbai )

    Reply

    1. Dear Hemen
      About the inverse Tax slab you advocate,can you please let me know under which slab you come?

      Reply

      1. and the point is … what ?
        the idea sound s good , daring and debateable , so why know who proposed it and what slab he is in .

        Reply

  859. i really like you understanding i would like to know about how sensex and nifty work and how its share value incease and decrease .

    what current account deficit with example .

    Reply

  860. Please advise some fool proof way of creating long term wealth over a period of time horizon 10 to 20 years, such as
    1. Invest in RealEstate Plots
    2. Invest in ETF
    3. Invest in Gold and silver Bars

    Reply

  862. Why there is no FMP in 10 year in government bonds? Why there is no ETF in 10 year government bonds? These would be tax efficient structures saught by retail investor, right?

    Reply

  863. I have a real tough time to measure the current value of insurance-linked products that provide payback after the 20-25 year period. Is there a way to do this easily? How should i evaluate whether its worth continuing with a policy? Or just putting money to better use somewhere else.

    I am removing the insurance element (which is totally incorrect) from the equation but seems to be the only way to measure current worth. I could assume that i take a term policy perhaps to nullify this?

    Reply

    1. Colin, the way to do this is to simply calculate the IRR from the policies, and usually you will find that there are several assumptions you have to make to predict the returns of the insurance policy, and that’s where the companies have leeway in saying that the policy returns 10% and then have a cute little disclaimer that says only if the company generates that much return. So it is all a bit complicated. However, IRR is the easiest way to go about it. I might do a post about it or link to one that someone else has done.

      Reply

  864. Dear Sir,
    Please start new topic of Health Insurance Claim Settlement Ratio.
    Thanks and Regards,
    Prakash

    Reply

  865. Hi,
    Your post are seriously good and the way you present them are excellent.
    In some old post you gave an explanation about the ways Indian government gets revenue.

    Can you explain how the state governments in India get their revenues from.This would be really informative

    Reply

  866. what are the saving instruments that will give monthly 12% returns?
    how to save Rs.50lacs to get monthly returns with out tax burden?
    what are the best yielding saving schemes?

    Reply

  867. Hi,
    If possible can u guys talk about hyper inflation scenario in Zimbawe, Chile and other countries that faced it. I think it will share a good knowlegde on economics and finance. Or if u can share some informative articles on this.
    Thanks.

    Reply

  868. 8 Things to know before investing in the Stock Market
    From http://www.Way2investments.com Team

    Markets hit historic high; Sensex crossed 25,000 points last week and analysts are anticipating crossing 30,000 points in this financial year. If you are retail investor would like to be part in the recent rally then you have to be disciplined investor .There are many important things that you need to know to invest successfully in the stock market. 8 of the most important things that we can share with you based on many years of trading and investment experience are enumerated below.

    1. Don’t depend on Tips do your own research and take full responsibility for your investment decisions.

    2. Concentrate on long term results at least for 3-5 yrs

    3. Fear in others is an opportunity for you; always invest when market is in correction.

    4. Do Not Put All Your Eggs in One Basket, diversify your portfolio in 3/4 sectors to maximize profit.

    5. Don’t invest in stocks all at once: invest small amounts monthly.

    6. Have Realistic expectation, don’t expect 50/60% return from all stock

    7. Invest only your Surplus fund, don’t borrow or invest funds that you need in near term.

    8. Monitor rigorously, you need to review your portfolio time to time so that any important event doesn’t affect your profits.

    These are the best tips that you can follow while investing in stock market. Research well and be careful while investing. All the best for your success in share trading.

    Reply

  870. One useful topic for all widows, Is it required to declare pension as income? and if there are any components in pension that is non-taxable?

    Reply

  871. Hi,

    Recently I have heard the news of govt planning to merge many small PSU banks into larger PSU banks. How does it effect share holders ? Please enlighten.

    Thanks, Karthik

    Reply

  873. Dear Sir
    I would like to know which gives better yield. Fixed deposit or go in for Recurring Deposit. The advantage I find in a recurring deposit is that I am freezing the interest rate of the recurring deposit for the next 10 years or for the period of the recurring deposit irrespective of rate changes. Dont you think this is a great advantage for people who save monthly rather than going in for FD every month. Your views please
    Ninan

    Reply

  875. Dear Shiv,
    Could you please cover the new IPO – snowman logistics hitting next week in the market for bidding?
    its Gateway distripack promoted complany?
    Can you please advise on this IPO?

    Thanks
    Yogesh

    Reply

  876. Hi, Would like to get your or Kukreja’s views about recent Jaitley’s Jul-2014 Budget implication due to LTCG Tax in non-Equity Debt Mutual funds. The perspective I am looking for is NOT advise to new investors to enter Debt Funds .. but rather advise to Retail Investors who had invested in various Debt funds about a year or so ago (as safety measure during equity bear phase and waiting for Modi budget revelations to switch to Equity funds) but now ‘trapped’ in higher tax if they switch out!! I am thinking it is good to switch out anyway, paying the higher 20% tax in the hope of bettering returns from Equity-MF (in next 1-2 yaers) to compensate for the extra tax loss now. What do you think?

    Reply

  877. Hi Shiv, It looks like , everyone likes to take the advantage of the euphoria on markets…..So after Snowman IPO, there is a Sharda Cropchem IPO lined up in the queue opening tomoro….

    Are you going to cover it and advise if to invest in it?

    Thanks
    Yogesh

    Reply

  878. Demat Accounts
    1. The various charges levied in buying/selling shares.
    2. The multiple options available (market, limit, cash etc)

    Reply

  879. Hello Shiv,

    Can you post articles on the following topics:
    1) Inflation indexed mutual funds (like the upcoming SBI inflation indexed bond fund)
    2) Arbitrage mutual funds (latest finance bill offers additional tax sops on this)
    3) Open ended vs. close ended equity mutual funds?
    4) How to select a good equity mutual fund?

    Regards,
    SB

    Reply

  880. Can you please give your recommendation on Milestone Real Estate Fund 10, which is now open for subscription?

    Reply

  882. pl.give idea about mutualfund schewme portfolioturnover ratio and expense ratio and also guide about new fund offer why they are higlighting that issue at par

    Reply

  883. Hi Shiv,
    Could you please suggest your views on the de-merger plans for crompton Greaves for the consumer products. Lots of investors have turned down this move.?

    Reply

  884. Hi Manshu,

    I like your articles and am a regular follower of your article. I wish, you also cover on Currency Exposure risks and hedging through Currency Derivative Market.
    Are there any broker who provide Trading in Currency Options?

    Thanks & Regards,
    Abhigyan Gupta

    Reply

  886. Indian stock market is at life time high, economy is improving as per recent macro data, inflation is in downward trend, CAD/trade deficit is contracting, FII inflow is increasing, in spite of all these favorable factors ,why rupee is depreciating against USD day by day.

    Reply

    1. Rupee is depreciating coz US dollar is getting stronger against all other global currencies. Stronger US economy and withdrawal of quantitative easing by the Fed are the main reasons behind stronger US dollar. In fact, among some of the top economies of the world, Indian Rupee has depreciated the least against the dollar in the last 3-6 months.

      Reply

  887. Hi Shiv,

    Can you share your views on the Kotak banking sector ETF (closing 28th Nov 14) ? Considering that the banking sector stocks have peaked out, what is your view on future prospects, considering fundamentals and other factors?

    Thanks in advance for your views.

    Regards,
    SB

    Reply

    1. Hi SB,
      I think banking stocks have run up quite fast and are trading ahead of their fundamentals. In the short-term, a correction is expected, but in the long term, I am still quite bullish. ETFs track certain benchmarks and their performance is co-related to the benchmark’s performance. So, if the banking stocks perform, Kotak’s ETF will also perform.

      Reply

  890. Dear all,
    Stay away from Monte Carlo IPO. Please read research on Oswal Family business and then decide.
    Thank you.

    Reply

  892. I want to open a basic service demat account in order to minimise the charges since I am new to this..have been moving from one DP to other almost everyone discouraging ..saying you have to pay exactly same as a nonBSDA ac holder for trading account, some charging brokerage in the highest slab openly saying what the DP will get if you open BSDA..can anyone suggest or comment on this

    Reply

  893. I have a DEMAT account in my wife’s name. she has opened the account in her maiden name since the supporting document presented at that time had that name. But most of her MF accounts are in her new name after marriage with the surname added. Our broker has not advised her on this difference .Now the broker firm is refusing to DEMAT her MF accounts citing this anomaly. I am not interested in opening another DEMAT account with the new name since some of the holdings are still in her maiden name. Besides the trouble has come up by broker firm’s callous attitude. there are two broker firms involved, one refusing to do anything with the other MF.
    Can anybody suggest a way out.

    Reply

  894. Hi,

    I wish to start investing in direct plans of mutual funds. I know I’ll have to apply directly through fundhouse/AMC website and that means a lot of paperwork for a first time investor like me. To make it easier, I’ve come up with a methodology – please let me know if it will work or not.

    Methodology:

    1. Invest minimum amount (Rs 500) in my shortlisted mutual funds via ICICIdirect (I already have an active icicidirect account). This will give me folio numbers for those mutual funds.

    2. I can apply for online login to fundhouses/AMCs (for the mutual funds purchased in step 1) websites using the folio numbers – this will not require any paperwork.

    3. Once I have the online login for the AMC website, I can purchase direct plans.

    Will this work?

    Reply

    1. In my opinion do not invest in MF through a broker as high brokerage will add to the cost. Applying online is a better option.

      Reply

  895. Hi,

    I would like to know why in Indian Currency we have only Mahatma Gandhi ?? Whereas if you compare US dollar, you see various past political leaders of US. Why can’t we have other leaders on our currencies ??

    Please let me know.

    Thank you ,
    Satyam Chawla

    Reply

  896. Hi Shiv, Manshu

    Last week PM has launched ‘Sukanya Samridhi Yojana’. This is only for girl child. For current FY, its interest rate is 9.1%. It seems to be good scheme under debt category. Can you please write an article on it. you can cover its tax implications and whether it is better than PPF etc.

    Regards,
    Amit.

    Reply

  897. While announcing the OFS for CIL,Govt said that some part of CIL share will be sold through green shoe method. What is actually green shoe method

    Reply

  898. Being in the highest tax bracket, I’ve been trying to shift my investment from Bank Fixed Deposits to Fixed Maturity Plans which are more tax efficient.
    I’ve noticed that most FMP’s don’t go thro’ & are called off. Why is this so?
    In the last 2 months, BSL MF,Tata MF & Reliance MF have returned my money saying that they have been unable to raise the amount required to launch the FMP schemes.
    Are there other avenues for Sr Citizens like us?

    Reply

    1. Invest in Debt Long Term Gilt Funds.Currently giving about 15 to 20% Returns.Market expects a lower interest regime in future.It it happens it is good for such funds.If you can hold them for 3 Years it is tax efficient too.

      Reply

  899. Hello,
    I find your website very informative. Can you please spare some time to provide your view on mutual fund investment at this state? Some specific things I would look for:

    – SIP or lump sum, MF names to invest.
    – Outlook for debt MFs

    Thank You!

    Reply

  900. I invested last year in 1Yr FMP. The fund house sent me a letter asking my option to extend it for another 2 yrs. Is this because of favourable taxation of debt funds if held for 36months?I am told, that I may not get taxation benefit, if the FMP is extended in this manner till 3 yrs, because the original investment in FMP and later its extension will be under 2 different nos.Please clarify.

    Reply

  901. Please write about how to “Earn real money online” … so that i could get the idea of how to start having ‘passive income streams’

    Reply

  902. Please explain regarding Sukanya Sammriddhi Plan, what is the treatment of tax on interest income for the girl child?

    Reply

  903. Kindly cover an article about the new CAS report wherein Demat + MF consolidated information will be available for all the clients. This initiative is directed by SEBI to NSDL.

    Reply

  905. Shiv Kukreja-ji: I find information in One Mint balanced and actionable. Can you please write about investment in forex market. Thanks. Deep

    Reply

  906. Greetings!

    I am a US citizen residing permanently in India. I have an OCI card (Overseas Citizen of India). I have been living in India since the past 5 years and plan to continue.

    Can you please advise on the investment avenues available for US citizens living in India with OCI? What type of investments are considered safe from the PFIC and FATCA laws of USA?

    Reply

  907. Hi manshu,
    Lot has been written and discussed for resident Indians but very less is been discussed about the Investment options for NRIs in and outside India.
    There is adequate information is available for investment in India but nothing is precise for investment options for outside India.
    For eg. what about the retirement corpus for the NRI who is not planning to come back to India? What are options for him to invest outside India.
    I know you would like to target the majority of your followers but I understand that you are also keeping your eyes open across the world so thought might be good if you can also target small but promising fans of your blogs.

    Thanks for consideration and look forward something for NRIs.

    Best Regards,
    NRITK

    Reply

  908. Sir,
    I need info abt PLI..
    I ve an PLI in my native place…
    monthly i m paying Rs.440..
    Now I need to make the premium amount to be deducted from my Salary..
    Is there any provision to do so?
    ALso whether online facility is available to pay PLI?????????
    Expecting ur reply soon.

    Reply

  909. Hello,
    Kindly cover FINANCIAL PLANNING for individual who got married and have a child.
    Thanks in Advance.
    Bharat

    Reply

  910. Hi,

    I would love to know your views on investing in 401(k) in USA if a NRI plans to remain in USA short term like 5-7 years. Is it still worth it?
    Because the tax you save and employee matching comes down to around 40% benefit. But when you cash out your 401k account when you leave for India you have to pay tax on that amount in USA at around 30% and then 10% is penalty. Is is really worth the hassle to invest in 401(k) in USA? or should I be investing that money in India

    Reply

  911. There are lots of Importers who run either a Proprietorship firm or a small company. It would be great if you can shed some light on options/products they have available to safeguard against currency fluctuations and how they can hedge their risk and lock in a fixed USD-INR rate for a longer term

    Reply

  912. Hi, Manshu.

    I would like you to post an article on new provisions in NPS in finanical budget 2015-16. Is is advisable to choose NPS over PF contribution at my age, i.e., 36. Also, is it necessary to invest in NPS quota of 1,50,000 for tax saving to be eligible for additional tax exemption of Rs. 50,000 under section 80CCD (1B) as per new budget provisions?

    Expecting an article covering 360 dg view of the scheme as per new budget provisions from you or Shiv…Thanks in advance

    Reply

  913. Hi Shiv,

    Can you post an article on equity arbitrage fund like Kotak equity arbitrage fund.

    Regards,
    SB

    Reply

  914. Please let us your views/comments on forthcoming NCD issue of SREI Eqpt Finance Ltd…..and also about subscribing to GMR Infra Rights issue closing on 08 April 2015.

    Reply

  916. Hi Manshu,
    Didn’t come across any article about MF Utilities Platform and Common Account Number (CAN) that has been started by AMFI.

    To summarize, it’s an initiative by Indian Mutual Fund Industry to allow people to see consolidated view of their investment in ALL the Mutual Funds online and invest in DIRECT plans of any MF without separately creating online account with each one of the AMCs.

    CAN is a single point of contact with MF industry. Once CAN is created, and for example. if you add a nominee or change your address – it flows down to ALL your Folios with any of the AMCs.

    It’s all free as it’s run by Mutual Fund industry . You can read FAQs on mfuindia(dot)com. It’s just launched so not all MF transactions are online as of now – not sure though.

    Reply

  918. Dear sir, An HUF receives a sum of Rs.425000/- in the beginning of this financial year, of 30 yrs. old litigation this year through cheque as settlement amount through court. The basic amount was been shown since 30 yrs. Rs.115000/-in HUF Balance sheet (assets side) in the name of the party. Since 30 yrs. no provision of interest was made on that litigation amount. What would be the tax implications for that as that HUF income is only interest income about 80000/- annually from other sources.. Kindly suggest ways to save income tax . Are there any investment plans to save the entire amount from taxation. kindly guide me.

    Reply

  919. Hi ,

    Currently we see Mr.Modi ,having all the foreign tours.What has been the real impact of his recent tours ,like the signed pacts between the countries and what have we officially as Indian, gained.Any thoughts ?

    P.S I am just an IT developer 🙂

    Reply

      1. I heard that the accumulated amount will be paid to the nominee of the beneficiary in case the the later expires after the age of 60. Is such provision is available in other pension scheme

        Reply

  921. Manshu,
    Can you please post something on ….Goldilocks Economy ?
    Is Indian Economy is that ?
    What has happened in past after this phase of economy ?
    Kartavi

    Reply

  922. Hi,

    Could you please let me understand the Greece crisis. How it is impacting the Indian markets.

    Thank you,
    Satyam

    Reply

  923. I was going through a website called SmartOwner.com and it talks about the concept of online investment in real estate in India. The concept seems nice, but not sure about the reliability of the service and the process. Would you be able to write a review or analysis on this or any similar services?

    Reply

  924. Hi Manshu and Shiv,

    Can u guys talk on US interest rates and its data on inflation, unemployment, GDP (comparing it with India’s if possible) with some views of Fed chairwoman. And its impact on India (Indian markets and FIIs) if interest rates are hiked in coming months.

    Thanks,
    Krunal

    Reply

    1. Yes, this would be a great topic as well .. especially when there is one lobby in US with strong belief that FED will not raise rates and QE will continue. They predict the bubble will burst soon with dollar losing value in international markets leading to high inflation and surge in gold price
      Source: Youtube channels of Mike Maloney, Peter Schiff , Jim Rickards and Ron Paul

      Reply

  925. Tax free bonds in FY 2015-16 , impact on current tfb prices and does it make sense to book profits in 2013-14 bonds and get into new bonds for longer terms (20yr) ?

    Reply

  926. Request for Guest Blog

    Hi Team,

    I happened to stumble upon your blog https://www.onemint.com while surfing and really liked the posts.

    I am wondering if you’d be interested in a guest blog post about “5 Ways to Go Green and Save Money”. I have some ideas that I am sure will interest your readers. The post will be about 400-700 words.

    Looking forward to hear from you.

    Regards,
    Shanaya

    Reply

  928. Can you please provide a detailed guide on the following:
    1. How to transfer shares held in physical form? (w/o converting to demat)
    2. How to fill up Form SH-4?
    3. What is Franking?
    4. Where to find “share transfer stamp” in Delhi for form SH-4?
    5. How to transfer jointly held physical shares in the name of the first holder if the second holder is untraceable/missing?
    6. How to claim dividend for physical shares for the past 20 years?

    Reply

  929. Can a Bank lower FD rates on the already existing NRE FD that was opened between Mar’01 2014 and july’2014 citing reasons as “tp comply with RBI regulations”. Need suggestions as to how to proceed against the bank for breach of contract so that I can get compensation for the reduction of interest rate This was done by lakshmi Vilas bank for the already opened NRE FDs that was booked during 2014. The email sent by LVB is as follows
    “We refer to your NRE deposit(s) opened with our branch listed over leaf, for which the branch had issued deposit receipt, wherein the rate of interest has been erroneously mentioned as # %. It has been noticed that the applicable rate of interest for the deposits as on the said date was $ % as per the following Regulatory instructions issued by RBI.
    1. In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the directive issued by Reserve Bank of India vide their circular NO: DBOD.Dir.BC.70/13.03.00/2013-14 dated November 29, 2013 on Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits, the Reserve Bank of India having satisfied that it is necessary and expedient in the public interest to do so, has directed that instructions issued vide directive DBOD.Dir.BC.39/13.03.00/ 2013-14 dated August 14, 2013 will continue till February 28, 2014. With effect from March 1, 2014, the interest rate ceiling will revert to the position prior to August 14, 2013, i.e. interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
    2. In terms of the said regulatory instructions, the maximum interest rate applicable on your deposit(s) shall not exceed $%. While expressing our deep regret for the inadvertent error caused in compliance with the said RBI directives, we are compelled to modify the interest from # % to $ % for the said deposits till the date of maturity.
    [#-ROI erroneously printed in the TD receipt issued and $ the applicable ROI-Refer overleaf]
    3. Accordingly the revised Maturity Value in respect of DCD (Cumulative deposit) is mentioned over leaf, which will be paid at the time of maturity.
    4. In respect of fixed deposits with periodical interest pay out option, the already paid excess interest will be adjusted in the ensuing periodical interest pay out, the details of which have been mentioned overleaf.
    In the above backdrop, we have made changes in our system to ensure the interest rates offered to you are in conformity with RBI guidelines.

    While once again expressing our deep regrets for the inconvenience caused to you in the matter, we hope that you would appreciate the regulatory compulsion for the bank to effect the above modification in the rate of interest. To facilitate the bank to effect necessary corrections in the deposit receipt/s held by you, we request you to tender the said receipt/s at the branch for effecting necessary corrections. If for any reasons, the deposit receipts are not tendered for making necessary corrections, the deposit/s will be continued till the contracted date of maturity with a revised rate of interest at $ . We request you to continue your patronage and support.

    In case you need further details pls contact the Branch.”

    Reply

  930. Dear Sir,

    can you please advise me if there is any MF/fund which offers fixed interest higher than our bank deposits?

    Thanks,
    Kiran

    Reply

  931. Informative comments , I loved the information – Does anyone know where I could possibly find a template 2012 AF IMT 1206 copy to use ?

    Reply

  933. Hi

    A very nice initiative for the users to send in their topics you can cover up.

    Could you include something on peer-topeer lending sites such as iLends, Lendbox.in and Fairent that are trying to disrupt the bank lending model in India

    Reply

  935. Hello Respected,

    would you accepting third party content to submit in your blogs related topic in blogs. I appreciate your response.

    Thanks

    Reply

  937. wish to suggest a topic.
    what is the relation ship of the value of bond funds with other indicators, like sensex, inflation rate, interest rate, etc

    Reply

  938. This is Arwind Sharma, I completely Read your guest post criteria. I have one
    Personal finance regarding topic which title is ”
    Everything You Need To Know Before Taking A Personal Loan”. If you like this topic please tell me about article format and how can i send you my article content.

    I am giving you shorty that my article content is unique and non duplicate
    content. I am waiting for the your response.

    Thanks and Regards

    Reply

  940. Hi Manshu,
    Could you please message me your contact as there is a video series we r doing with a reputed financial firm and we would love to have you onboard as the host for the same.
    Thanks,
    Aditya(Outmedia.in)
    9769404968

    Reply

  942. Hi.
    As someone who takes care of her own personal investments i wante to understand how to read stocks that get listed on nse and bse. I have investments mainly in bonds and mutual funds. i am looking to invest in shares but the problem is i’m not sure how to read the information provided. So I was thinking if someone can explain how to read he nse page for a stock. what ratios should one look at. Anyway i hope you give it some thought.
    Thanks, Anika

    Reply

  943. Hi

    I have q query regarding Health insurance.

    A person is having a cover of 3 lac each from two insurance policies.

    If there is a claim of 5 lac in one financial year. What is the process of claimimg it.

    One will exhaust one insurance policy of 3 lac and then 3 lac form second policy. Is this the correct method.

    Regards
    Piyush

    Reply

  944. My nephew who is an Italian citizen now has an OCI Card.
    How can he open a bank A/c and invest in repatriable equities ?
    Are there tax implications ?

    Reply

  945. sir, kindly let me know whether investment made in senior citizen savings scheme is included in 80c exemption. I have read somewhere that it is is included. but my banker disagrees with me.

    Reply

  946. It would be great if you can analyse/share insights on some consistently best performing equity oriented MF’s to start SIPs in
    I was thinking that these can be a good bet
    1. Large cap – Franklin India Bluechip Fund
    2. Large and mid cap – Birla Sun Life Frontline Equity Fund
    3. Hybrid equity – HDFC Balanced Fund
    4. Mid and small cap – HDFC mid cap
    5. Mid and small cap – Franklin India smaller companies fund
    6. Mid and small cap – Motilal Oswal MOSt Focused Midcap 30 Fund – Regular Plan
    7. Mid and small cap – Mirae Asset Emerging Bluechip Fund – Regular Plan
    8. Mid and small cap –

    Reply

  948. Request you to advise ABOUT :
    Aribitrage Funds – [i] the pros & cons about these funds. [ii] How come these are not heard that much in investing arena. [iii] the best performing funds in this category [iv] your observations about these funds in the market vis-a-vis Bank FDs.
    Liquid funds – [i] Will you please highlight about the ‘Liquid’ part.
    [ii] which are the funds faring well in this category.
    [iii] whether the Arbitrage and Liquid funds are two identical type of funds or
    meant for totally different goals.
    Thank you very much for, the way your answers being drawn.

    Reply

  949. Demat account portability.
    Procedure on how to transfer from one demat account to another with same name/PAN etc.
    Which demat account is better/low-service charges?
    thanks you very much.

    Reply

  951. #Niveza #Review on Crude Oil Shares
    Crude Oil decrease further today by 4% because of no output in meeting of OPEC countries in Doha. As expected, Countries such as Saudi Arabia and Iran are not ready to freeze the output to Jan 2016 levels until October 2016. Countries such as Iran and Saudi Arabia are financially sound and they are not in danger yet compared to other countries such as Venezuela, Russia, and other OPEC members. So naturally they want to take advantage of this situation and improve or prevent their market shares. Their sustainability is more compared to other countries because of their previous years revenues and other factors. But further few months down the line if prices again drops to $30 level, then all these countries have to take a call on freeze and reducing the output of the Oil else few countries will go bankrupt and it will be the very bad event for the entire world markets.

    Reply

  952. Hi,

    Thanks for providing an opportunity to cover up the topics that we want people to drive focus on.
    Could you please cover the topic “A Fintech Technology – Peer to Peer Lending” and how companies like rupaiyaexchange.com, lendbox and how they cater to people who are not served by traditional bank institution like banks, NBFC’s etc.

    Reply

  954. Can you please review latest Mahindra and Mahindra NCD or any other latest NCD which is worth investing?

    Reply

  955. Hi,

    Could u give us the list of listed companies who have not give a bonus from the past 10 years and have been giving bonus before that. Also it would provide us the possible bonus candidates if the companies are doing well in the past few years.. would be helpful for the new investors to decide on the large and mid caps who can be safe bets in terms of investments.

    Reply

  956. Hi,

    Could you please explain P2P lending from an investment perspective?

    Example: LoanMeet, Faircent etc

    Thank you!

    Reply

  957. Dear Sir,

    A very good afternoon,
    I truly appreciate your effort in providing guidance.
    I am a new investor I want to invest in few good stocks can you please guide me.

    Reply

  958. Dear Sir,

    Could we please have a write up on DHFL ncd. Whether it is advisable to invest in it. Also we have been hearing about some upcoming debenture issues by corporates. Any additional information on it if available will be highly appreciated.

    Thanks
    VR

    Reply

  959. Hi to All,

    Please write article on Loan Foreclosure charges on home loan / Mortgage Loan from various banks/NBFC by making Primary Borrower Company when there is Proprietary Firm. So no need to take it in loan structure. So Beware all people when applying loan to NBFC and some banks.
    And save penalty at the time of Foreclosing the loan

    Reply

  960. Hello Dear,

    I am a blogger and I want a post on your website about to investment and insurance sector. Can you please suggest me the prise for the paid post.

    Thanks

    Reply

  961. Dear Shiv,
    As we know NPS is one of the cheapest and best option for retail investors. Under Tier – II account , one can even withdraw as and when required.
    Of course, we do not see much promotion from fund houses and financial institutions because they don’t get any benefit.
    Is it a better option to go for NPS instead of mutual fund to save fund management fees ?
    Because even for MFs there is no fixed parameter to choose which one is good. 99% people go by ratings from various websites while selecting.
    To me MF option is not any better than NPS , which one too is managed by same professionals.

    Please advise.

    Vasu

    Reply

  962. Many ppl (inc my father) are of the opinion that RDs, postal RDs in particular, are tax free.

    Despite many attempts to convince that no TDS doesn’t mean no Tax, they are still rigid about their opinion. Pls throw some light

    Reply

  963. Shiv, would be interested in knowing your thoughts on Sovereign Gold Bonds that are periodically on offer by GOI..

    Reply

  964. you forgot to give the list under this statement in the post on the police clearance certificate :

    Here is a list of all the documents that they accept as a residence proof:

    Reply

  965. Will the de-monetisation really flush out the black money? I hear all gimmicks being tried like buying gold, distributing through money changers, converting to foreign currency, hawala etc. Will this all just make sure this fails and back to status quo with new notes ?

    Reply

  966. Dear Sir,
    I am impressed the way to handle the topics namely Pre open session market and how fix the price of any stock.
    Sir, I am in the market since last year and learning various aspect of
    Day trading or cash trade or intra trade. Can you elaborate the how cash trade will be make profitable.
    Thanks and regards
    S.V. Thavare

    Reply

  967. Dear Sir,
    I like the way u elaborate the information related with financial decision.

    Thanks and regards
    S.V.Thavare

    Reply

  968. Hi,

    Thanks for providing valuation information, you are doing a great job.

    Topic Suggestion: since fd rates are getting lower now… can you please create one article to describe, what is debt mutual funds, comparison with Fixed deposit features, advantages and disadvantages debt mf, how to invest/when to invest.

    Thanks,
    Deepak

    Reply

  969. Can you please write about Airtel Payments Bank? Though I could Google out most of the information, one specific question is not being addressed.

    Can I make offline payments using Airtel Payment Bank account? If so, how? What infrastructure should the merchant have? Is it better to wait for Paytm Payment bank since they already have so many lakhs of merchants enabled?

    Reply

  970. Dear Shiv,
    I am about to retire and am looking for immediate annuity plans. Has there been any analysis done Jeevan Akshay VI and your recommendations on it ? Are there any similar plans from other insurers for comparison ? thanks for your service.

    Reply

  974. Hi Shiv sir,

    Kindly review and provide your valuable advise on upcoming HUDCO IPO. Also suggest, if it is a good idea to accumulate HUDCO shares on listing from secondary market as well for a long term investment purpose.

    Many Thanks & Best Regards,
    Vasu

    Reply

  975. Hi,
    InvIT seems to be a new product in the Indian financial Markets. I have already missed investing in the recent IRB InvIT.

    Could you please throw some light on the product and analyse the next upcoming InvIT issue. I ready Sterlite Power is listing one. What’s your view on this? Eager to know.

    Regards
    Sudhanshu

    Reply

  976. Hello Sir,

    I was searching for useful articles related to taxation and come across your post which is quite informational based on your detailed analysis or expertise.

    The content of your blog seems very comprehensive and interesting to read.

    I would like to draw your attention towards the Delhi-based online income tax filing services website.Kindly check out the link http://www.trutax.in/ .

    It is a portal where the taxpayer can upload their form-16 with required documents and file their income tax returns with ease.It is a platform to give the latest updates of taxation and manage client’s taxes as well as their income tax returns.

    This Might be a worth mention on your page.
    Either way, keep up the awesome work.

    Also, I was hoping you would consider us in contributing articles about topics related to taxes, taxing systems in India, etc. so that we can our knowledge and expertise with your audience.

    Is this something you would be interested in?
    Let me know what you think.

    Regards
    Harsh(TruTax)

    Reply

  981. GOI Bonds 2018

    Shiv,
    GOI 7.75%, 7-year bonds will be available from Jan 10, 2018. But they are NOT trade-able. Does that mean we can NOT sell them and stuck with them for 7 years? Looking forward to your analysis.
    Thank you.

    Reply

  982. Hi,

    How about adding two *Investment* columns – India Stocks – for Long Term (1+ Yrs) and Very Long Term (3yrs++) that includes what & when to BUY *as well as EXIT/Sell followups?

    Reply

  983. Dear Shiv

    Is it worth to consider / plan transfer of Home loan from a NFC (HDFC Ltd) to a bank (SBI) where currently SBI is offering less interest rates (~8%). Can you pl provide some analysis in current situation and considering next 5 yrs .

    thanks
    shri

    Reply

  984. Dear Shiv,
    After recent developments, what is your view and outlook for Banking and Financial sectors going forward? Both for PSU and Private Banking, and NBFC also.
    Appreciate if you could please kindly share your thoughts.

    Thanks,

    Warm Regards,
    Niraj Parik

    Reply

  985. Dear Sir,

    Can you provide data of shares buy back offer during yr 2016 & 2017 from Indian companies??

    Reply

  986. FYI – Upcoming NCD – April 9, 2018- From MUTHOOT FINANCE LIMITED

    Received the following email:

    Dear Sir,

    Our next Non-Convertible Debenture ( NCD) in D Mat form will open on 9th April 2018. Our earlier two NCD s were oversubscribed on the same day.

    This is yet another opportunity for our esteemed customers to invest in the Company . Please note that the “Subscription to NCD will be accepted only by Crossed /Account Payee cheque or Bank Draft favouring “ESCROW ACCOUNT MUTHOOT FINANCE NCD PUBLIC ISSUE”. MUTHOOT FINANCE LTD .

    Please await announcement in the print media and read the prospectus for further details before investing.

    Regards
    General Manager
    MOHAN CHANDRAN
    Muthoot Finance Ltd
    Head Office
    Kochi
    To unsubscribe, please click here.
    Muthoot Finance LTD
    Muthoot corporate office,Kurians tower,Opp Saritha theater complex,banerji road,Cochin,pin 682018

    Reply

  987. Hello,

    Hope you are doing great.

    I am Aman Khanna; having 5 years of grand experience in Finance domain; currently working as an independent Financial Advisor. I love reading informative blogs like yours.

    Since you already publish guest posts from different authors in your niche, I thought it would be nice if I too have an opportunity to present your blog’s readers with something of real value. Over the recent past, I’ve contributed guest articles to several niche industry blogs. I understand the need for unique and well-researched content. And I’m also very passionate about any topic or subject that I write about.

    Looking forward for a positive response from your side.

    My Suggested topic is that ¨Budget 2018 – Tax and other benefits for senior citizens at a glance!¨

    Please let me know if you like this topic i will provide you unique content for this

    Reply

    1. Hi Aman,
      You can send your article to me on my email id – [email protected]
      As we are very conscious about the quality of our content, I hope your article would meet our readers’ expectations. Please feel free to ask/suggest anything you have in mind.

      Reply

  989. Hi Shiv,
    Hope you are doing great.

    I am Vineeta Joshi , working as SEO Manager at Ziploan. Ziploan is an NBFC that provides collateral-free small business loans.

    While surfing the internet, I found your website be very interesting and informative. I would love to discuss an opportunity to create an article for you. My article would be custom made for your site and would be helpful for your readers.

    Please let me know if this is something you would be interested in.
    I look forward to your reply,

    Best regards,

    Vineeta Joshi

    Reply

    1. Hi Vineeta,
      Doing good, thanks and hope you too are doing great! 🙂
      You can send your article to me on my email id – [email protected]
      As we are very conscious about the quality of our content, I hope your article would meet our readers’ expectations. Please feel free to ask/suggest anything you have in mind.

      Reply

  993. I would want to know about ZestMoney cardless EMI. What are the benefits? I do not have a credit card so is this option good for me?

    Reply

  995. I am a certified and skilled research analyst. I can provide high accurate target based profitable signals and ideas to trade with the aim of getting high margins with minimum investment amount.

    Reply

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