today i will start a new chapter all together in my life. its been almost 4 yrs that i have been working and now i have realised that its good to work for urself than to slog like an ass for others. 4 yrs in the financial services industry had definitely taught me many things. the most important being my own financial planning.
there is a famous saying ' those who fail to plan, plan to fail '
its very imp in todays world to do a financial planning exercise for urself. given the current scenario and expected economic condition in the future financial and retirement planning becomes very very important.
i have decided to help and advise you all for your investments and financial planning. today if u notice around you have old guys 55-60-65 yrs age working. they are here bcos they failed to plan for thier retirement and hence they have no option but to continue working till they physically can stop. i hope non of you wants to fall into this category in the future. so please start investing and plan for a brighter financially secure future ahead.
Monday, May 11, 2009
Sunday, September 16, 2007
Sensex may touch 17500 by Diwali: JM Financial
2007-09-14 12:54:16 Source : Moneycontrol.com
Atul Mehra, ED & Head-Capital Markets of JM Financial said that they are bullish on power, power transmission and distribution, capital goods, construction, alternate fuel and iron.
According to him, the concerns on crude and interest rates remain. The Fed cut by 25 bps could see cheer in the equity markets, stated Mehra. There are enough non-US funds moving around in markets to absorb shocks.
Excerpts from CNBC-TV18�s exclusive interview Atul Mehra:
Q: We are within striking distance of an all-time high, could we go much higher from here, if so how much?
A: Well we have not seen highs being created; we are going to see newer highs being created. My personal guess is you will see the index somewhere in the region of 17,500 closer to Diwali time. The fundamental reason that gives me motivation to believe that is going to be achieved is liquidity. The same old argument that we have been using for three years still continue to hold true.
Q: Fundamentally, there is a wee bit of a crack coming on the windscreen. You have this IIP number, which is not looking too good. Globally you could see a slowdown because credit is tight. So, would you say that this liquidity argument could get punctured?
A: If you want to add a slight bit of crack, add two more cracks to that. One is the oil price trading at USD 80 a barrel and interest rate, which still continues to trade in the vicinity of 10.5% to 11.5%, which is still high. These are what I call cracks, which are there. The question out over there is all these have been factored into our system, markets are taking note of it and right now corporate India may have given us enough confidence and made us believe that despite all these cracks and uncertainties their numbers will be very much on track and their growth will not be hampered in quarters and years to come ahead.
Q: You are looking at 17,000 by Diwali and perhaps a continued high, where should investors be putting their money sector-wise?
A: Let me give you five or six sectors that I am personally very excited about. Slot numbers one, two and three have been taken up by power sectors. We are very bullish on power, power transmission, and power distribution. So, all the three sectors in one bucket is the most exciting sector. We are bullish on the construction sector; we are bullish on capital goods as a sector. The two other sectors that are our favourites would be the opportunistic sectors and one of them would be the alternate fuel sector. This is a very interesting sector and I am pretty much excited about this sector.
The second sector, which is again very interesting, would be the resources sector, which is what I call as the metal resources sector, basically back into the iron ore or manganese ore, those kinds of companies. This is a very interesting sector and I would urge investors to look into that.
Q: Since you touched on liquidity, there are two important aspects. One is, what would the Fed do on September 18 and its impact? Is there any more seriousness to the subprime effect?
A: I would say that it is a very well kept secret that the Fed is meeting on September 18. Almost the entire world has given advice on what the Fed should be doing and the unanimous opinion is that the Fed should decrease the rates by another 25 basis points. I think that is pretty much given. If that happens, people would say all is fine and you would see some more euphoria continue in the market.
As long as we do not come across a subprime losses number, which is staggeringly above the number that people have factored into their assumptions, I think we will continue to do very well. Unless somebody tells us that the number is awfully different or the number is totally gigantically different, you would see the marketing taking a cue from that.
Q: If it is gigantically different, if there is a recession, if the flow of money from the US definitely stops or flows out, do you think the downside is very bad or do you think the downside is protected, because there is this middle eastern money that seems to be still coming?
A: Let us assume a hypothetical situation where all that we just discussed is true. I would say that there are enough shock absorbers that have been factored into it and one shock absorber is Middle Eastern money, and the second shock absorber is the domestic mutual fund money. Look at the amount of money that these mutual funds have gathered as a corpus, and what they invested in; in the last month or so, it is a pretty exciting number. What gives me terrific confidence is that the retail or wealthy individuals are putting every dime of their money into the market and that is a very encouraging sign.
Monday, August 6, 2007
Infrastructure Funds
India's economic performance, particularly over the past three years, has been robust on several counts. Economic growth has accelerated and is now averaging over 8% per annum.
In order to sustain this rate of economic growth, India's Planning Commission has estimated that investment would have to be made in infrastructure, such as road, rail, air and water transport, electric power, telecommunications, water supply and irrigation. During the Eleventh Plan period (2007-2012), it was estimated that an investment of almost US$ 320 billion would have to be made over the Eleventh Plan period.
Due to government initiatives, investments in India's infrastructure development are growing. Political parties, across ideologies, have realized the importance of infrastructure in sustaining economic growth. The Government recognizes the need to improve infrastructure and has stepped up investments in this direction.
Several indicators in the economy today point to the huge investments being made by both the Government and the private sector in infrastructure development. Some of them are:-
• India's construction equipment sector is growing at over 30% annually
• The order books of the 10 largest construction companies in India have risen by over 50%year-on- year
• Annual cement consumption has breached the150-million tonne mark for the first time.
Source: - India Brand Equity Foundation
According to India Brand Equity Foundation, investment requirements in some key sectors are:
• US$ 50.8 billion for modernization of highways
• US$ 9.25 billion for civil aviation
• US$ 11.5 billion for ports
• US$ 69.39 billion for railways
As we can see, there is a huge potential for profitable investments to be made in these sectors. Dedicated infrastructure funds such as Tata & ICICI Infrastructure Fund with its focus on investments in the Indian infrastructure sector, shows potential for long-term growth.
Investors who wish to be beneficiaries of this hugely developing sector can participate in it and create potential long term value for their investment.
In order to sustain this rate of economic growth, India's Planning Commission has estimated that investment would have to be made in infrastructure, such as road, rail, air and water transport, electric power, telecommunications, water supply and irrigation. During the Eleventh Plan period (2007-2012), it was estimated that an investment of almost US$ 320 billion would have to be made over the Eleventh Plan period.
Due to government initiatives, investments in India's infrastructure development are growing. Political parties, across ideologies, have realized the importance of infrastructure in sustaining economic growth. The Government recognizes the need to improve infrastructure and has stepped up investments in this direction.
Several indicators in the economy today point to the huge investments being made by both the Government and the private sector in infrastructure development. Some of them are:-
• India's construction equipment sector is growing at over 30% annually
• The order books of the 10 largest construction companies in India have risen by over 50%year-on- year
• Annual cement consumption has breached the150-million tonne mark for the first time.
Source: - India Brand Equity Foundation
According to India Brand Equity Foundation, investment requirements in some key sectors are:
• US$ 50.8 billion for modernization of highways
• US$ 9.25 billion for civil aviation
• US$ 11.5 billion for ports
• US$ 69.39 billion for railways
As we can see, there is a huge potential for profitable investments to be made in these sectors. Dedicated infrastructure funds such as Tata & ICICI Infrastructure Fund with its focus on investments in the Indian infrastructure sector, shows potential for long-term growth.
Investors who wish to be beneficiaries of this hugely developing sector can participate in it and create potential long term value for their investment.
Analysis, the key to investing money
2007-08-06 13:01:38 Source : Moneycontrol.com
By Kartik Jhaveri
Several factors need to be kept in mind when you are aiming to generate wealth – not just for yourself, but for your subsequent generations as well. Identifying multiple sources of income, understanding your financial expenditure, and having a healthy mind and a strong drive.
Given all that, when the time comes to actually investing, you are inundated with an explosion of information. You need to know how to cherry-pick from this flow and also sharpen your intelligence so as to take better financial decisions.
Identify trends
Consider this: Someone’s expense is your income and your expense is someone’s income. Now the lesser your expenses the more are your profits. The same applies to companies.
If interest rates go down, your expenses reduce. You can now take more loans and pay more interest. The companies that lend you money have a field day lending more and profiting more, since many others think like you and take loans to buy cars, houses and durables.
Doesn’t it now make sense to buy their shares at this point?
The trick is to see where you spend or would like to spend your money. See what people around you are buying, see where they money is flowing. You don’t need to see the balance sheet of each company, just be attuned to what’s happening around you. Tie news with its impact.
For example, if the rupee has appreciated, companies that are into import will be able to buy more for the same amount of rupees. They can also buy the same amount of goods for a lower price – profits are bound to be made.
Or consider a takeover – only a profitable company will have the money to buy another company, in most cases. Total assets increase; expenses go down as synergies are created.
Deploy resources
To take better decisions, you first need to know how much money is available to you. Creating budgets and financial controls can both increase this amount and inform you how much you have to create your castle with.
You also need to make sure your money is being ploughed into fruitful assets. Paying huge premiums for unneeded life insurance or being over insured are examples of ineffective use of resources. So is investing in PPF at a stage when you are looking to build wealth.
Make sure that what you pay for is worth your money. Of course, financial control does not mean cutting necessary expenditure – it is about effective deployment of your resources.
Think positive
Though you may not realise this, your mindset and emotions play a strong role in determining the wealth you will make. You especially need to eliminate fear and arrogance, since these cloud rational thinking, affecting your ability to take intelligent decisions.
Do not think, “I am born in a middle class household, I cant possibly get that Audi.” By doing that, you are pretty much condemning yourself to eternal poverty. Instead, think, “I want to get that Audi. How do I go about it?”
On the other hand, thinking in terms of “I know” or “I don’t need to know more” or “I am right, you/ that is wrong” is a sure-fire way of shutting doors on all knowledge.
Find out, investigate, talk and then take a more informed decision. Be curious always – to find out more, to learn new things. Getting rid of your arrogance will put you on the right track to making advantageous decisions.
By Kartik Jhaveri
Several factors need to be kept in mind when you are aiming to generate wealth – not just for yourself, but for your subsequent generations as well. Identifying multiple sources of income, understanding your financial expenditure, and having a healthy mind and a strong drive.
Given all that, when the time comes to actually investing, you are inundated with an explosion of information. You need to know how to cherry-pick from this flow and also sharpen your intelligence so as to take better financial decisions.
Identify trends
Consider this: Someone’s expense is your income and your expense is someone’s income. Now the lesser your expenses the more are your profits. The same applies to companies.
If interest rates go down, your expenses reduce. You can now take more loans and pay more interest. The companies that lend you money have a field day lending more and profiting more, since many others think like you and take loans to buy cars, houses and durables.
Doesn’t it now make sense to buy their shares at this point?
The trick is to see where you spend or would like to spend your money. See what people around you are buying, see where they money is flowing. You don’t need to see the balance sheet of each company, just be attuned to what’s happening around you. Tie news with its impact.
For example, if the rupee has appreciated, companies that are into import will be able to buy more for the same amount of rupees. They can also buy the same amount of goods for a lower price – profits are bound to be made.
Or consider a takeover – only a profitable company will have the money to buy another company, in most cases. Total assets increase; expenses go down as synergies are created.
Deploy resources
To take better decisions, you first need to know how much money is available to you. Creating budgets and financial controls can both increase this amount and inform you how much you have to create your castle with.
You also need to make sure your money is being ploughed into fruitful assets. Paying huge premiums for unneeded life insurance or being over insured are examples of ineffective use of resources. So is investing in PPF at a stage when you are looking to build wealth.
Make sure that what you pay for is worth your money. Of course, financial control does not mean cutting necessary expenditure – it is about effective deployment of your resources.
Think positive
Though you may not realise this, your mindset and emotions play a strong role in determining the wealth you will make. You especially need to eliminate fear and arrogance, since these cloud rational thinking, affecting your ability to take intelligent decisions.
Do not think, “I am born in a middle class household, I cant possibly get that Audi.” By doing that, you are pretty much condemning yourself to eternal poverty. Instead, think, “I want to get that Audi. How do I go about it?”
On the other hand, thinking in terms of “I know” or “I don’t need to know more” or “I am right, you/ that is wrong” is a sure-fire way of shutting doors on all knowledge.
Find out, investigate, talk and then take a more informed decision. Be curious always – to find out more, to learn new things. Getting rid of your arrogance will put you on the right track to making advantageous decisions.
Thursday, August 2, 2007
Credit Policy: RBI hikes CRR by 50 bps to 7%
2007-07-31 12:01:26 Source : Moneycontrol.com
The Reserve Bank Governor Dr Yaga Venugopal Reddy announced a 50 bps hike in the CRR rates, raising it to 7% from 6.5% in his Credit Policy announcement today.
However, the RBI has kept the repo, reverse repo and bank rates unchanged. There hasn't been much change in the monetary policy stance.
There was a general expectation that starting with this policy, lending rates would start heading southward. While deposit rates may come off after this policy, the pace at which interest rates or lending rates were expected to come off, may not be as swift as was originally expected.
Impact on Rates
Deposit rates likely to come down
Lending rates to remain the same
Highlights
Bank rate, Repo, Reverse Repo rates unchanged
CRR hiked by 50 bps to 7%
Rs 3,000 cr daily reverse repo cap withdrawn
FY08 economic growth target unchanged at 8.5%
Medium-term inflation target: 4-4.5%
FY08 inflation target: 5%
The RBI has been a little more hawkish than what the markets expected it to be. The move will effectively take out approximately Rs 15000 crore from the banking system and bring no returns for the banks for that kind of money. In terms of the stance of the RBI, it remains practically unchanged, which means it’s a pretty hawkish stance, pretty cautious, pretty vigilant on inflation.
It has acknowledged that headline inflation has come down, but it’s clearly worried about the kind of impact increased liquidity may have on forthcoming inflation.
The key takeaways from the policy are:
RBI hikes CRR by 50 bps to 7% from 6.5% from Aug 4
RBI keeps all other key rates unchanged
RBI removes Rs 3000 cr reverse cap from Aug 6
GDP forecast for FY08 retained at 8.5%
Has discontinued second auction of the day
Hedge Funds pose significant risks to markets
Financial stability added to monetary stance
Emphasis on price stability, anchored inflation expectation
Uncertainty over supply situation has increased
Inflation pressures seen from liquidity, high credit
Global inflationary pressures stronger than before
Inflation threat from re-emergence of producers' price power
This was the kind of stance that was enunciated on 31st January, continued in the April 24th policy and the wording more or less remains unchanged in today’s policy, with an addition that says that it will also watch out for financial stability in the country.
So, clearly, if it was a hawkish kind of a stance in January, the stance remains unchanged today, and the walk of RBI matches its talk, in as much as it is controlling the amount of cash available with the banks to lend.
It seems that domestic outlook will dominate the RBI policy in the period ahead. While, the domestic outlook continues to be favourable, fiscal deficit is evolving as per the Budget. The risk to inflation expectation is up due to the high oil prices. Global inflationary pressures are stronger than before. The monetary stance spelt out in April has been retained. According to the policy, prospects for FY08 GDP growth appear positive.
On growth, the RBI says that there is really no moderation – there seems to be increased capacity constraints in several industries like cement and even petroleum refining and it also points to the fact that there is perhaps return of pricing power and higher asset prices, all of which could lead to a rise in inflationary expectation
What's driving the markets down?
2007-08-01 11:22:15 Source : Moneycontrol.com
The markets are trading weak on account of weak cues from US markets, rising crude prices, shift in investor interest from equities to bonds, fears of a rise in interest rates and US sub-prime woes.
At 12.34 am, the Sensex is down 545.22 points at 15007.45, while the Nifty is down 162.05 points at 4366.35. About 1,101 shares have advanced, 1,804 shares declined, and 78 shares remained unchanged.
The Wall Street resumed its downward skid yesterday, falling sharply as renewed concerns about soured home loans blew away what had looked like a solid recovery rally. Wall Street has been concerned about lenders after some loans made to borrowers with poor credit have gone bad, and that anxiety contributed to the market's big plunge last week. Tuesday's trading showed how vulnerable the market remains, and how any advance can quickly evaporate.
Investors remain worried about credit getting tighter because of the faltering housing market. On Tuesday, a housing index released by Standard & Poor's showed that US home prices fell for a fifth consecutive month in May by the steepest amount in about 16 years.
The Dow Jones fell 146.32 points, or 1.1%, to 13,211.99, while investors seeking safety moved into bonds. It fell after being up as much as 140 points during the session. The Standard & Poor's 500 index declined 18.64 points, or 1.26%, to 1,455.27, and the Nasdaq Composite index fell 37.01 points, or 1.43%, to 2,546.27.
On the Nymex, crude also breached the USD 78 per barrel on expectations that inventory reports will show a decline in stockpiles last week. Reports of fresh bout of violence in Nigeria also pushed prices higher.
Taking a cue from US markets, Asian markets slipped into the red today. Japan's Nikkei tumbled 1.12%, or 193.31 points, at 17,055.58; Singapore's Straits Times plunged 1.3%, or 45.99 points, at 3,501.67; Taiwan Weighted slipped 0.38%, or 34.84 points, at 9,252.41; and South Korea's Seoul Composite declined 1.77%, or 34.13 points, at 1,899.14.
What to do when the Markets crash
hi friends,
this week we have seen the market behaving very volatile... yesterday the markets crashed 600 points ,,....
dont panic at all guys .. take this as a good buying opportunity,
stocks and funds that are very attractive at these levels are given below:
Engineering & Power Sector:
BHEL
L & T
Siemens
Areva TD
Sundaram Capex Fund
ICICI Infrastrucutre Fund
Banking and Financial Services Sector:
Reliance Capital
ICICI Bank
Punjab National Bank
Development Credit Bank
Kotak Mahindra Bank
UTI Banking Fund
Other stocks
Financial Technologies
M & M
Reliance Comm
IOL Broadband
Indo Borax
best way to beat the volatile index is to invest in mutual funds
either do a SIP or invest lumpsum in these mutual funds with a 2 yr horizon. i am sure u ll make good money.
to know more contact me at dhavalmehta84@gmail.com
happy investing!!!!!
rgds,
Dhaval
this week we have seen the market behaving very volatile... yesterday the markets crashed 600 points ,,....
dont panic at all guys .. take this as a good buying opportunity,
stocks and funds that are very attractive at these levels are given below:
Engineering & Power Sector:
BHEL
L & T
Siemens
Areva TD
Sundaram Capex Fund
ICICI Infrastrucutre Fund
Banking and Financial Services Sector:
Reliance Capital
ICICI Bank
Punjab National Bank
Development Credit Bank
Kotak Mahindra Bank
UTI Banking Fund
Other stocks
Financial Technologies
M & M
Reliance Comm
IOL Broadband
Indo Borax
best way to beat the volatile index is to invest in mutual funds
either do a SIP or invest lumpsum in these mutual funds with a 2 yr horizon. i am sure u ll make good money.
to know more contact me at dhavalmehta84@gmail.com
happy investing!!!!!
rgds,
Dhaval
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