In terms of alternative assets art, wine and gold are most preferred. Investors need to understand these investment vehicles and select products very carefully.
Real estate price in India is stabilizing and is facing steady slowdown especially in the metros. I have taken Bangalore as an example in this blog but other places too are affected by similar concerns. In Bangalore the real estate price is going crazy, though none of the real estate agencies would like to agree to this fact. Property prices moves due to the basic principle of Demand & Supply When demand is high & supply low prices will go up When demand is low & supply is high prices will come down For example let’s assume that somebody has bought a property for Rs X and he is trying to sell the property (say after a year), there can be three options, assumption being that the owner is in need of money and cannot wait for more than 3 months to sell the property. When the property prices are zooming everywhere> Here the owner will try to add as much premium to the property as possible, wait for three months and sell off in the last month at the highest bid ( RsX + RsY) W...
T he New Pension Scheme (NPS) has been launched on ‘Labour Day’ on Friday for all the citizens. This followed the confirmation by the National Interim Pension R egulator of the scheduled launch of the Mega Pension Plan from Friday. This scheme will be for for employees of private sector, self employed and extended it to everyone in the country. The Pension Fund Regulatory Development Authority ( PFRDA ) has decided to bring in some changes in the new pension scheme with effect from May 1, 2009. The new pension scheme(NPS) will allow the fund investment of nearly 50% in the high risk stock markets. Six major fund managers were shortlisted for the new pension scheme in the month of February. They include Reliance Capital,ICICI Prudential Life Insurance,State Bank of India,Kotak Mahindra Bank,UTI,IDFC. An expert panel was formed under the guidance of HDFC chairman Deepak Parekh to look into the matters of new pension scheme . The PFRDA has made a strict limit of inve...
An ETF or exchange traded fund is a basket of securities which tries to imitate/ track the index. Though an ETF and index fund is different lot of people get confused between the two. An index fund is a mutual fund which tries to imitate the index and its value is the closing day NAV. ETFs are traded on the stock exchange like other scrip’s and the price of it usually fluctuates every second. ETFs also have lower expense ratio than mutual funds but it attracts broking fees as it has to be bought from the stock market. It also has the same tax structure of an Equity mutual fund wherein the STCG is 10%.Due to it flexibility to be traded on the exchange with less charge and tax it can be a product in the portfolio to time the market. Example, If we had invested during the last market correction when sensex was down more than 18 % to 12000 levels from its peak, our money now at sensex of 14600 would have grown by an absolute return of 21% (pre tax and 19% post tax) in just 5 months. I have...
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