The Arbitrage Edge
The Arbitrage Edge- Tax efficient and return efficient! The term arbitrage refers to buying and selling of an asset in order to profit from the difference in prices between two markets. For example, the equity stock price of Infosys was Rs. 1,243 in the cash market and the futures price of Infosys was Rs. 1,252 in the futures and options market. Hence by buying the stock in cash market and selling or shorting Infosys futures in the futures market you…read more
All New Goods and Service Tax (GST) Reforms
What is GST? From when is this effective? Who will be impacted / exempt? What is the need? What are the benefits? How will the same be streamlined? How will it impact sectors and Govt revenues ? Benefits to the economy. Industry specific benefits / demerits ! Stakeholders/ consumers benefits / demerits How GST fits in the Big Picture!! ….read more
A snapshot into Masala Bonds
Masala bonds are similar to corporate or government bonds which are issued to raise money by companies or the government. Masala bonds are rupee-denominated borrowings by Indian entities in the overseas market.They are issued to foreign investors such as UK markets (London Stock exchange)and Asian markets and settled in US dollars. Hence the currency risk lies with the investor and not the issuer, unlike external commercial borrowings (ECBs), where Indian companies raise money in foreign currency loans. These masala bond borrowings have…read more
FD vs FMP and MCLR Rates being offered by banks on loans and deposits
Agenda – Changes in the banking industry and current scenario – What is the impact on you ? – What Investment options do regular investors have – – Choice of FD Vs FMP ( bank wise rate descriptions ) – Choice of FMP ( MF schemes description ) – Tax implications General trend of declining interest rates – Future of your savings and market linked rates is the new theme Changes in the banking industry and current scenario from… read more
Is gold a sensible or a sentimental investment ?
There are 2 primary reasons why you need to invest in gold. Investing money in gold is worth because it is the best hedge against inflation. Over a period of time, the return on gold investment is in line with the rate of inflation. It is worth investing in gold for a one more very valid reason. Gold is negatively correlated to equity investments. Say for example 2007 onwards, the equity markets started performing poorly whereas the gold has performed …read more
Lease Vs Purchase – option offered by corporates
Of late, many companies have been offering a lease option to employees as a perquisite. This is advantageous to the employee since it offers tax benefits to them. However, often, when they are in the highest tax slab, there are doubts as to whether this is a better option than a loan. We have analysed this by assuming three scenarios; 1) Where the employee purchases the car outright. 2) Where the employee takes a loan to purchase the car….read more
Reverse Mortgage – how it works
How does a Reverse Mortgage work ? The reverse mortgage, introduced by the Union Government in 2007, is an answer to financial issues faced by senior citizens, giving them a life of dignity. For senior citizens, who have a lack of regular income or financial support , this could lead to a financial crisis. In simple terms, a reverse mortgage is the “opposite” of a conventional home loan. A reverse mortgage enables a senior citizen to receive a regular…read more
Real Estate Investments in India
The Current scenario Real estate has become a popular investment avenue. However, lack of transparency and tight regulations means buyers are making investment decisions with limited understanding of the risks involved in parking their hard-earned money in real estate. Though you cannot make your real estate investments risk-free, you must be aware of the possible dangers on the road to property ownership. Here, we discuss a few of these pitfalls. LOOK BEFORE YOU LEAP Until there are entry barriers and ….read more
SIP Investments versus Lumpsums
Systematic Investment Plans – are they better than lumpsum investments? A Systematic Investment Plan enables you to build a portfolio over a longer time horizon with small investments at regular intervals. This reduces the risk of market volatility as compared to investing a lumpsum amount at one go. One can choose between Quantity based and Amount based SIPs in Stocks, Mutual Funds, ETFs and Gold. Here we are analysing SIP investments in equity mutual funds and …read more
Insurance policies for the physically and mentally challenged people
The Demographics India houses the largest population of disabled people in the world; 26.8 Million disabled in India, as per Census 2011, that basically means every 2 out of 100 Indians are disabled. With such an astounding number of disabled people in India, almost every family is either dependent on a disabled person, or is responsible for taking care of a disabled member. Why do they matter ? The only disability a person can have is his attitude! There would …read more