Money matters - Personal investing / finance

[spidermanusa]

Originally Posted by kongutamizhan

Traditionally we Indians tend to consider Gold investments a notch higher than Silver. Future might change considering the run silver had the past year. Apart from recent past performance, silver's industrial demand is on high too which is expected to drive its prices higher

The best time was to get in 2 years back. Unlike gold, silver can lose its value quickly. Of course if you are cost averaging, you do not have to worry about price movements.

[reswaran]

Originally Posted by spidermanusa

அரட்டை அரங்கத்துல அடிச்சது போதும் இங்க வந்து கொஞ்சம் தெளிவு படுத்துங்க.

Topic: Life Insurance

What is a good plan for life insurance - Term or Endowment? I tried looking at the various plans on LICs website and got confused. Is it a good idea to have cash value add up in your insurance? I'm torn between getting a death benefit or sum assured option. What are the expert thoughts here?

Term insurance is the best. Generally one is advised to take 10 times their annual salary as the sum assured in the term insurance so that in case of demise of the policy holder, his/her family will be able to maintain the same standard of living. Again its better to go for 2 term insurance. LIC's term plan has the highest premium in the industry. Some of the private players (icici, kotak and aegon religare) have introduced e-policy whose premium is the lowest since there is no agent involved in buying these policies. So if you want to go for 60L sum assured, take 30L term policy with LIC and 30L term policy (e-policy) with ICICI or Kotak.

[kongutamizhan]

Easwaran is correct. Term is the way to go.

Unfortunately in India insurance products are not treated as insurance products. We want to get back something if we pay something and that's the reason I think endowment policy sells well in India compared to other countries.

IMO, a smart investor like you should opt for term and take care of investing yourself. By taking an endowment policy you are paying extra premium to the company and insurance agent's pocket.

[spidermanusa]

Originally Posted by reswaran

Term insurance is the best. Generally one is advised to take 10 times their annual salary as the sum assured in the term insurance so that in case of demise of the policy holder, his/her family will be able to maintain the same standard of living. Again its better to go for 2 term insurance. LIC's term plan has the highest premium in the industry. Some of the private players (icici, kotak and aegon religare) have introduced e-policy whose premium is the lowest since there is no agent involved in buying these policies. So if you want to go for 60L sum assured, take 30L term policy with LIC and 30L term policy (e-policy) with ICICI or Kotak.

Thanks. This helped.

[Mr.Nellai]

Do anybody here have vast knowledge in share market? or do anybody have invested in share market? I need to know about RCF (fertilizer company), its prospect and everything.

[kongutamizhan]

I am no expert in speculating stocks. I could read technicals a bit So based on that my suggestion would be buy and hold. If the price goes down by 20% buy more

Technicals of this particular stock look good. People are betting on future of Ag stocks, so the sector is on rise, this particular stock is trading on a discounted price now. So why not buy it?

Having said that the key is how much % of your investment portfolio RCF will be? Diversification is the key here. I would suggest to keep any individual stock by not more than 15% of your investment portfolio. However hard you try or day-trade, over a long-term you cannot beat the index IMO. I tried that for over 10 years and learnt it the hard way. As I mentioned in several posts here, I am moving away from stocks and towards mutual funds. I am not advising you to do the same. Age is also a key factor. If you are still in your 20's and earn well it makes sense to play with stocks during this phase than mutual funds.

[Mr.Nellai]

Originally Posted by kongutamizhan

I am no expert in speculating stocks. I could read technicals a bit So based on that my suggestion would be buy and hold. If the price goes down by 20% buy more

Technicals of this particular stock look good. People are betting on future of Ag stocks, so the sector is on rise, this particular stock is trading on a discounted price now. So why not buy it?

Having said that the key is how much % of your investment portfolio RCF will be? Diversification is the key here. I would suggest to keep any individual stock by not more than 15% of your investment portfolio. However hard you try or day-trade, over a long-term you cannot beat the index IMO. I tried that for over 10 years and learnt it the hard way. As I mentioned in several posts here, I am moving away from stocks and towards mutual funds. I am not advising you to do the same. Age is also a key factor. If you are still in your 20's and earn well it makes sense to play with stocks during this phase than mutual funds.

First of all thank you.I am just graduating and i am not considering it seriously,it is just for passion.But nevertheless, like IIFL caption it is money honey.i had hardly 5 months experience in stock market.So far,i would say i have been very successful in stock market. You said you can't beat the IMo index. But,last january i bought a lot(1000) of put option of SAIL for 2.6, when it went on to 5.2, i thought i invested 2600 i got 5200, so that is enough but it went on to 19.2 so if u invested 2600 you would have got 19200

[kongutamizhan]

Originally Posted by Mr.Nellai

You said you can't beat the IMo index. But,last january i bought a lot(1000) of put option of SAIL for 2.6, when it went on to 5.2, i thought i invested 2600 i got 5200, so that is enough but it went on to 19.2 so if u invested 2600 you would have got 19200

Congrats on your cherry pick. Beware that all your picks may not be cherries and you might end up holding lemon sometimes. That's why I said it's hard to beat index long-term, meaning if you start your investing in 25, by the time you are 60 if you managed to get 80% of index growth you are considered as a great investor

http://www.usatoday.com/MONEY/usaedi...ket15_CV_U.htm

[spidermanusa]

Originally Posted by Mr.Nellai

But,last january i bought a lot(1000) of put option of SAIL for 2.6, when it went on to 5.2, i thought i invested 2600 i got 5200, so that is enough but it went on to 19.2 so if u invested 2600 you would have got 19200

That is the problem. You never know when it is bad enough to get in or good enough to get out.

[kongutamizhan]

Is the concept of Home owner's / Landlord's insurance catching up in India now among the homeowners? (especially middle class) Do we have enough awareness on this front yet? Tsunami in Japan made me to post this question.

[krishnaswamy]

Originally Posted by Mr.Nellai

First of all thank you.I am just graduating and i am not considering it seriously,it is just for passion.But nevertheless, like IIFL caption it is money honey.i had hardly 5 months experience in stock market.So far,i would say i have been very successful in stock market. You said you can't beat the IMo index. But,last january i bought a lot(1000) of put option of SAIL for 2.6, when it went on to 5.2, i thought i invested 2600 i got 5200, so that is enough but it went on to 19.2 so if u invested 2600 you would have got 19200

I was very aggressive in Stock Market and made quick money in 2006 to 2007..
but 2008 caused big havoc...Learnt lot of lessons and now waiting for my turn into markets again

few things should be in mind in Stock Market.
1. after making significant returns, you should come out..."Pothum endra maname pon seiyum marunthu"
2. Stop loss is very important...
3. you should not invest everything into stock market(risk is very high). Still we are depend on FIIs which is not good.
4. Split your savings into FDs, mutual funds & pension funds,Gold, Land and finally into equities..
5. people tend to buy when the market is up.... that is false.. buy at lows and sell at highs.. when the mkt crashes 400 points, try to buy some good stocks...
6. IMO, GMR Infra, Gujarat NRE, WIPRO, Dena Bank, City union bank will be best bets for the horizon of 1-2 yrs (though they are not actively participating in the current market run)
7. Keep L&T,Infosys & TCS for a very long term view(10-15 yrs).. keep it as it is and it will multiply.. Infosys bonus is due for a very long time.

[reswaran]

Originally Posted by krishnaswamy

I was very aggressive in Stock Market and made quick money in 2006 to 2007..
but 2008 caused big havoc...Learnt lot of lessons and now waiting for my turn into markets again

few things should be in mind in Stock Market.
1. after making significant returns, you should come out..."Pothum endra maname pon seiyum marunthu"
2. Stop loss is very important...
3. you should not invest everything into stock market(risk is very high). Still we are depend on FIIs which is not good.
4. Split your savings into FDs, mutual funds & pension funds,Gold, Land and finally into equities..
5. people tend to buy when the market is up.... that is false.. buy at lows and sell at highs.. when the mkt crashes 400 points, try to buy some good stocks...
6. IMO, GMR Infra, Gujarat NRE, WIPRO, Dena Bank, City union bank will be best bets for the horizon of 1-2 yrs (though they are not actively participating in the current market run)
7. Keep L&T,Infosys & TCS for a very long term view(10-15 yrs).. keep it as it is and it will multiply.. Infosys bonus is due for a very long time.

I like to add a point

- DO NOT invest in stocks if you cannot spend time to study the market and stocks. It should be an on-going activity. If you dont have time, go for SIP in Mutual Funds. Fund Manager will take care of doing the work for you. Of course, the returns will not be as high as in stocks but at the same time risk is also low. Again you need to spend sometime once in 2-3 months to monitor and re-jig them if necessary.

[satishanu]

Had ups and downs with Stock but happy with land, apartment and precious metals investment back in India.

Also, recently RBI allowed to remit tax free $1million per year (from property sales) from India to overseas countries.

http://www4.economictimes.indiatimes...ow/7127486.cms

[kongutamizhan]

Originally Posted by satishanu

Had ups and downs with Stock but happy with land, apartment and precious metals investment back in India.

Also, recently RBI allowed to remit tax free $1million per year (from property sales) from India to overseas countries.

http://www4.economictimes.indiatimes...ow/7127486.cms

Why did they do that? Shouldn't the logic be the other way round, meaning money coming into India be tax-free? Good for NRIs deciding against R2I of-course, not sure if it's good for the country!!

[kongutamizhan]

I am not a big fan of closed end funds. For some it might make perfect sense. Also if you are diversifying, this is one such option you can consider. My suggestion would be to keep it as last option (once you have exhausted stocks, precious metals, PPF, REIT's, mutual funds etc.,)

Source: Vikatan

எஃப்.டி-யைவிட அதிக லாபம் வேணுமா?


கூட்டணி சேர்வது என்றால் அது அவ்வளவு சாதாரண விஷயமா என்ன! அரசியலில் மட்டுமில்லை, முதலீட்டு விஷயத்திலும்கூட அப்படித்தான். முதலீட்டைப் பொறுத்தவரை பெரும்பாலானவர்கள் விரும்புவது குறைவான ரிஸ்க்கும் நல்ல வருமானமும் சேர்ந்து அமைக்கும் கூட்டணியைத்தான். அப்படி ஒரு வெற்றிக்கூட்டணியை அமைத்திருக்கிறது என்றால் அது 'ஃபிக்ஸட் மெச்சூரிட்டி பிளான்கள்’தான். சுருக்கமாகக் குறிப்பிடுவதென்றால் 'எஃப்.எம்.பி.’ கடந்த 2010-ம் ஆண்டில் மட்டும் சுமார் 340 எஃப்.எம்.பி. திட்டங்கள் புதிதாக வெளியிடப்பட்டு, 75,000 கோடி திரட்டப்பட்டிருக்கிறது என்பதை வைத்தே அதைப் புரிந்துகொள்ளலாம்.

மியூச்சுவல் ஃபண்டில் ஒரு வகைதான் இந்த எஃப்.எம்.பி. இதற்கு மட்டும் ஏன் இவ்வளவு ஆதரவு என்ற கேள்வியை 'ஹோலிஸ்டிக் இன்வெஸ்ட்மென்ட்’ நிறுவனத்தின் இயக்குநர் கே.ராமலிங்கத்திடம் கேட்டோம்...


''ஃபிக்ஸட் மெச்சூரிட்டி பிளான்கள் என்பது வேறு ஒன்று மில்லை, கடன் சார்ந்த மியூச்சுவல் திட்டங்கள்தான். வங்கி ஃபிக்ஸட் டெபாசிட் மாதிரிதான் இந்த ஃபண்டின் முதிர்வு காலங்களும். 'குளோஸ்ட் எண்டட்’ திட்ட மான இதில் திரட்டப்படும் நிதி, கமர்ஷியல் பேப்பர்கள், சர்டிஃபி கேட் ஆஃப் டெபாசிட், நிதிச் சந்தை, பாண்டுகள், கார்ப்பரேட் பாண்டுகள், ஃபிக்ஸட் டெபாசிட் போன்ற கடன் சார்ந்த திட்டங்களில் முதலீடு செய்யப்படும். இந்த ஆவணங்களின் முதிர்வும், எஃப்.எம்.பி. ஃபண்டின் முதிர்வும் கிட்டத்தட்ட ஒரே சமயத்தில் இருப்பது மாதிரி பார்த்துக் கொள்வார்கள். நுழைவு மற்றும் வெளியேறும் கட்டணம் கிடையாது. குறைந்தபட்சம் 5,000 ரூபாய் இருந்தால்கூட இதில் முதலீடு செய்துவிடலாம்'' என்று அடிப்படை விஷயங்களை விளக்கிச் சொன்ன ராமலிங்கம், எஃப்.எம்.பி. முதலீடு எப்போது லாபகரமாக இருக்கும் என்பதையும் குறிப்பிட்டார்.

''இது குளோஸ்ட் எண்டட் திட்டம் என்றாலும், என்.எஃப்.ஓ-வுக்குப் பிறகு பங்குச் சந்தையில் பட்டியலிடப்படும். அப்போது, பணம் தேவைப்பட்டால் இடையில் யூனிட்களை விற்றுக் கொள்ளலாம். அப்படி விற்க டீமேட் கணக்கு வேண்டும். மேலும், எஃப்.எம்.பி. ஃபண்டில் முதலீடு செய்யும்போது சந்தையில் வட்டி விகிதம் 9.50% என்று வைத்துக் கொள்வோம். இடையில் வட்டி விகிதம் 10.50 சதவிகிதத்துக்கு உயர்ந்துவிடுகிறது என்றால் எஃப்.எம்.பி-யின் என்.ஏ.வி. குறைந்து, தள்ளுபடி விலையில் வர்த்தகமாகும். இதுவே சந்தையில் வட்டி 8.50 சதவிகிதமாகக் குறையும்பட்சத்தில் எஃப்.எம்.பி. ஃபண்டுகளை வாங்க அதிக வரவேற்பு இருக்கும். முதலீட்டாளருக்கு ஃபிக்ஸட் டெபாசிட்டைவிட அதிக லாபம் கிடைக்கும்.



வட்டி விகிதம் உயரும்போது தான் இந்த ஃபண்டில் முதலீடு செய்யவேண்டும். அதுவும் அதிக முதிர்வு நாட்களைக் கொண்டவைகளில் முதலீடு செய்வது நல்லது. காரணம், முதலீடு செய்யப்படும்போது சந்தையில் என்ன வட்டி விகிதம் உள்ளதோ, அந்த அளவுக்கு முதிர்வின் போதும் கிடைக்க வாய்ப்பு இருக்கிறது.

இப்போது வட்டி அதிகரித்து வருவதால் எஃப்.எம்.பி. ஃபண்டுகளில் தாராளமாக முதலீடு செய்யலாம்.'' என்றவர் கவனிக்க வேண்டிய வேறு சில விஷயங்களையும் குறிப்பிடத் தவறவில்லை.

''ஃபிக்ஸட் மெச்சூரிட்டி பிளான்களில் ஃபிக்ஸட் டெபாசிட்டைப் போல் ஃபிக்ஸட் வருமானம் கிடைக்காது. அதே நேரத்தில், வங்கி டெபாசிட்டைக் காட்டிலும் ஃபிக்ஸட் மெச்சூரிட்டி திட்டங்களில் கொஞ்சம் அதிக வருமானம் எதிர்பார்க்கலாம்.

வருமான வரிக்குப் பிந்தைய நிலையில் எடுத்துக் கொண்டால் ஃபிக்ஸட் டெபாசிட்டைவிட அதிக லாபம் தரக்கூடியது. ஃபிக்ஸட் மெச்சூரிட்டி யூனிட்களை 12 மாதங்களுக்குள் விற்றால் குறுகிய கால மூலதன ஆதாயமாகக் கருதப்பட்டு வரி கட்ட வேண்டியதிருக்கும். ஓராண்டுக்கு மேல் யூனிட்களை வைத்திருந்து விற்கும் போது நீண்ட கால மூலதன ஆதாயத்துக்கு 10% (பணவீக்க சரிக்கட்டலுக்குப் பிறகு 20%) செலுத்த வேண்டும். இதுவே ஃபிக்ஸட் டெபாசிட் என்கிறபோது கிடைக்கும் வட்டி, வருமானத்தோடு சேர்க்கப்பட்டு அடிப்படை வரம்புக்கு ஏற்ப வரி (10%, 20%, 30%) செலுத்த வேண்டும்.

அதிக வரி வரம்புக்குள் இருப்பவர்களுக்கு, ஃபிக்ஸட் டெபாசிட்டைவிட எஃப்.எம்.பி. லாபகரமான முதலீடாக இருக்கும். அதற்கு எஃப்.எம்.பி-ன் முதிர்வு காலம் ஓராண்டுக்கு மேற்பட்டதாக இருப்பது அவசியம்'' என்றார்.

[greatshankar]

Originally Posted by reswaran

I like to add a point

- DO NOT invest in stocks if you cannot spend time to study the market and stocks. It should be an on-going activity. If you dont have time, go for SIP in Mutual Funds. Fund Manager will take care of doing the work for you. Of course, the returns will not be as high as in stocks but at the same time risk is also low. Again you need to spend sometime once in 2-3 months to monitor and re-jig them if necessary.

I am following this forum to read about stock market: http://www.theequitydesk.com/forum/ Good stock analysis, Company balance sheets, Portfolios, Stock synopsis, Emerging companies much more...

[jaish]

My idea would be Buy apartment or House in good upcoming area where you can expect good rent (like Marai malai nagar, Oragadam, siruseri, Ambattur) and let for the rent and Invest the rent in different portfolio ( Like Gold, Stock, MF). Here May be you can get the appericiation of Real estate and Financial Instruments also.

[kongutamizhan]

You haven't seen a housing bubble yet That threat is always there in India as long as we don't see some real infrastructure developments, and prices are affordable for majority of the population. I still don't see the value for money at current rate for any city in India (Metros included).

PS. I am saying this as someone having invested and profited from all my residential real estate investments in India.

[saysenthil]

Have a look.....

Are you always at a loss while planning your finances?

Are you aware of the investment options available in the market?

How best can you plan your finances?

What are the crieria for evaluating an investment option?

Are mutual funds profitable investment options? When and how should one buy mutual funds?

In an hour-long chat on rediff.com, financial planning expert Sailesh Multani offered some valuable tips:

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http://www.rediff.com/business/repor...s/20110317.htm

[Mr.Nellai]

Again markets are down




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