Personal Finance

Are successful people Lucky or always Right

First time stock investors

Posted by : chief_kamani

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karshin-we will miss you a lot!!Enjoy holidays!!good night!!
...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Are successful people Lucky or always Right

First time stock investors

Posted by : NAUGHTY007

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have a pleasant trip-keep in touch if possible
we await ur return to the board
enjoy in the meantime...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Are successful people Lucky or always Right

First time stock investors

Posted by : rudra_sinha

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Enjoy the holidays my friend.

Cheers!
Rudra...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Are successful people Lucky or always Right

First time stock investors

Posted by : tara23

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wish you good holidaying......

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

The March Effect

Fixed Income

Posted by : prjayachandran

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The March effect

This message is not to give any stock idea or make any good investment proposal. It is just to make us all aware of a phenomenon that exists in debt markets, that can be exploited to suit investor preferences. It is only a matter of convenience and, in any case, it does not make the investor significantly richer.

March is a peculiar month for debt investors for two major reasons.

First, March is a time when most companies are tight on cash mainly due to factors like the need to pay advance tax, etc. (much like most of us are short of funds by month-end). As a result, companies quite often borrow for short term from the money markets by issuing instruments like certificates of deposit (CDs) and commercial papers (CPs). The rates they are willing to pay on such instruments shoot up due to their urgency for money. For example, CP rates have moved up to 5.98% and CD rates have moved up to 5.35% from 4.83% and 3.45% respectively in January 1. This is a VERY REGULAR and PREDICTABLE phenomenon EVERY YEAR MARCH. Hence, starting March, Liquid Funds (that have very short lock-in period of JUST ONE DAY or more) can give good annualised returns of almost 5.5% maybe all the way from March to June.

Secondly, March offers the opportunity to invest for just over a year, say 13 months – from March 2010 till April 2011 and get Double Indexation benefit.

`Double indexation benefit` means getting cost indexation benefit on Long Term capital gains for two financial years, by holding an asset for just over one year. This benefit is not available in case of fixed deposits and bonds, but are available to Fixed Maturity Plans (FMPs) of Mutual Funds, making them a much better option over one year FDs.

Fixed Maturity Plans offered by mutual funds, is a type of debt mutual fund for a fixed duration, just like bank FDs. The units of this plan mature on a predefined date and are hence called Fixed Maturity Plans. They are close-ended schemes meaning that they are not bought and sold on a daily basis. Their maturities range from one month to three years.
The money collected from you is invested in fixed-income instruments like Commercial Paper (CP), Certificate of Deposit (CD), money market instruments, corporate bonds and even bank fixed deposits.

After the FMP matures, say in April 2011, if the option is Growth Option, the profit on redemption is a Long Term Capital gain as you have held the FMP for more than one year. The profit will be taxed at 10% flat or at 20% with indexation benefit. You SHOULD TAKE the indexation benefit as it helps you get `double indexation benefit`.

Say, an investor invested Rs.100 in March 2008 when cost inflation index was 551 for FY 2007-08. When he withdraws the money in the FMP after 13 months in April 2009, he would be able to use cost inflation index for FY 2009-10 which was 632 and not just 582, which is cost inflation index for FY 2008-09.

If he had invested Rs.100, his cost of investment can be considered as Rs.100 multiplied by 632(CI Index of FY2009-10) divided by 551(CI Index of FY 2007-08), which is Rs.114.7. Hence, he needs to pay tax only if he earned more than 14.7% in his debt MF. As a result, his entire 7% appreciation in the FMP is available to him TAX-FREE! In fact, he can show a LONG TERM CAPITAL LOSS of 7.7% and offset some long term capital gains against this.

The possible yield of 13 months FMPs is likely to be around 7%. Presently, the highest 1 year FD rates by banks is 7.25% being offered are by Federal Bank, Karur Vysya Bank and South Indian Bank. For a person in the highest tax bracket, 7.25% interest on FD is ONLY 5.07% interest after tax is cut.

Particularly if you belong to the highest tax bracket and you are looking at a one year FD, applying for FMPs (there are PLENTY of them open now) before 31st March 2010 is a good option from appreciation and taxation point of view....

Are successful people Lucky or always Right

First time stock investors

Posted by : SAJIMON-PALAI

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Waiting for your return....

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Gold ETF

MFs & Markets

Posted by : adaljaarun

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you can buy from nse/bse brokers it is regularly traded everyday but it will come in demat form only....

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Gold ETF

Posted by : ashalanshu

Dear Yash, Plz. visit Rel. money website or any local Rel. money broker in ur area. In all probability u `ll be able to purchase the Gold ETF.

Plz. note u can purchase Gold ETFs thru ur Demat acct. only.

Thanks

Ashal

Are successful people Lucky or always Right

First time stock investors

Posted by : winwath

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enjoy ur trip - hope it is a well deserved holiday...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

lump sum money recd. on divorce

Tax Planning & Help

Posted by : rsrawat

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Is, the Lump sum amount received by wife at the time divorce by mutual consent, taxable? The husband is an NRI....

Are successful people Lucky or always Right

First time stock investors

Posted by : vuppala1948

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Dear Karshin
Enjoy your time - wherever you are...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Are successful people Lucky or always Right

First time stock investors

Posted by : bookworm

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Addressed to  karshin

bON VOYAGE...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Are successful people Lucky or always Right

First time stock investors

Posted by : radhika_nandlal

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Karshin,

Have a great time. We will miss you.. But that doesnt mean you should not have your holiday. ...

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Are successful people Lucky or always Right

Posted by : karshin

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night

Are successful people Lucky or always Right

First time stock investors

Posted by : karshin

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Addressed to  amitsgreat,  Dakshina murthy,  ar_akm,  Ashtrix,  bagram,  Be and Make,  Bhavani27,  bhusbhac,  brawnym,  chief_kamani,  chokksin,  nadhi,  togu,  dipakgod,  googol,  hindlevernet,  hsnmf,  patience,  sbalu,  KARUNAS,  malini22,  maximindia,  micky59,  mohankumar1000,  novice1000,  pandumanu,  pitquote,  marketman,  passsion2excel,  pranky,  psgs,  pss5588,  NAUGHTY007,  brainchild,  radhika_nandlal,  rajesh chhabria,  nakul,  rudra_sinha,  rvk41,  SAJIMON-PALAI,  sauravsachin,  subasu,  sd3,  bookworm,  Option Analyst,  silverseraph,  sodhan,  souravkundu,  Barat,  TrueCompanion,  Varner,  tara23,  vkk43,  vuppala1948,  winwath,  xyz_indian

dear boarders,
I am going out for 5 nights and four days fro m tonight. I will be earnestly missing you all.
Good night...

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Are successful people Lucky or always Right

Posted by : karshin

welcome. I will try my level best to give quality messages.

Are successful people Lucky or always Right

First time stock investors

Posted by : karshin

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welcome. I will try my level best to give quality messages....

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Are successful people Lucky or always Right

Posted by : tara23

thanks for the info...

Gold ETF

MFs & Markets

Posted by : ashalanshu

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Dear Yash, Plz. visit Rel. money website or any local Rel. money broker in ur area. In all probability u `ll be able to purchase the Gold ETF.

Plz. note u can purchase Gold ETFs thru ur Demat acct. only.

Thanks

Ashal...

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Gold ETF

Posted by : yash_03

dear sir,
i want to purchase gold etf.
But, i think these are not so popular
in the market as i asked customer care
of reliance money ( in which i`m having my demat a/c ) for purchase of gold etf (any ). But, They unable to provide the me neither the information nor the instruction to buy GOLD ETF.

Pls. tell me How can i purchase gold ETF. Also, tell me whether i can purchase it online or not ?