How to Decide where your Money goes?

We live in a world of uncertainties. Given that money runs the show, it is crucial to invest wisely whether you are looking at shares, bonds, insurance or anything else. While weighing an investment option, there are many factors that need to be considered. Often this process gets so complicated that you approach a financial advisor or a wealth management firm to make it easier.

It is important to understand the relationship between risk and return while investing. If you are willing to take a higher risk, you are likely to get higher returns. Therefore, optimizing your risk is one crucial aspect of investment decision. Socio-economic changes also have a deep impact on investments. Economic forces like recession, government policies, industry norms and unforeseen events affect the performance of stocks. Analyzing these factors forms an integral part of investment decision making.

Insurance is a very attractive option in this scenario because it not only provides a cover for your life and expenses, but also gives great returns. It helps in long-term wealth creation, provides tax benefits and gives dividends. There are life insurance contracts that accumulate cash value and against which you can borrow money in case of need. It allows you to plan for life, ensuring you have sufficient funds for going to the best college, organizing the perfect wedding, buying your dream home and having the most relaxed retired life.

Karvy Private Wealth provides insurance planning services that help you reap maximum benefits from insurance. A team of qualified professionals analyze your risk based on age, health, income and other factors.

To know more:
Contact us on karvy@gmail.com

Visit our website: http://www.karvywealth.com

Join us on Facebook: http://www.facebook.com/KarvyWealth

Follow us on Twitter: https://twitter.com/KarvyWealth

India among top five countries for investors

India has something to cheer, amidst the global slowdown fears. The Ernst & Young's 2012 India Attractiveness Survey says investors view India as an attractive investment destination.
In the survey's global ranking, India is the fourth destination for foreign direct investment just below the United States, China and Britain. China is the largest competitor of India in terms of attractiveness, according to the survey.

The three most attractive characteristics of the Indian market that attract investors include high potential of the domestic market driven by an emerging middle class, cost competitiveness and access to a highly qualified workforce. The survey estimates that India's rapidly rising middle class would grow from 160 million people in 2011 to 267 million people in 2016.

"India's domestic demand-driven growth model is acting as a catalyst for attracting foreign investments into the country. Although the ongoing global uncertainty may have prompted global investors to become more cautious, India's inherent advantages and proven resilience to counter-act macroeconomic challenges generally outweigh these concerns," says Rajiv Memani, country managing partner of Ernst & Young India.

The top five FDI destinations in India are Bangalore, Mumbai, Chennai, New Delhi and Pune. They attract 43 per cent of the investment projects, 34 per cent of the jobs created and 26 per cent of the value of FDI in India. According to the survey, while India has been one of the leading destinations for shared services, the country is rapidly emerging as a manufacturing location for many foreign corporations.

By 2020, 25 per cent of our survey respondents see India among the world's leading three destinations for manufacturing. Among the sectors, technology attracted the largest number of FDI projects (146 projects) in the country, followed by retail and consumer products (83 products) in 2011.

"India will be the next superpower in application development," says D Shivakumar, MD, Nokia India. Despite the issues in infrastructure sector, benefits outweigh costs for a majority of investors. Investors also find India an appealing destination for automotive manufacturing given its skilled technical labour, low-cost supplier base and strong domestic demand.

Michael Boneham, president & managing director, Ford India, says by 2020, India is forecast to become the world's third-largest auto market. And the increasing affluence of the average consumer Indian middle class will be one of the main factors fuelling this growth.

In healthcare too, improving R&D capabilities and proving inclusive access to primary healthcare will further improve the attractiveness of the sector, according to the respondents. The survey also points that private equity in India has significantly evolved over the last decade.

It mentions that 2,000 Indian companies were funded by PE in the last five years and $50 billion was invested from 2007 to 2011. Despite the ups and downs over the past decade, PE has emerged as a very important investor in India Inc and with the long term India growth story still intact, PE funds continue to look eagerly at investing in India," says the report.

Although investors believe India has great human capital, they remain concerned about the state of infrastructure, governance and transparency in the country. Seventy six per cent of the respondents say improving infrastructure will have a high impact and is a prerequisite to attract foreign investment. Another 60 per cent of the respondents believe better governance and transparency system will have a high impact on India's attractiveness.

Further, investors also remain unconvinced about the country's capacity as an innovation centre. The survey report calls for improving the quality of its infrastructure and increasing collaboration between academic institutions and corporate world before it earns recognition as an innovation destination. In conclusion, the survey highlights the need for strengthening the industry-academia relationships and improving quality of infrastructure and research laboratories.


Source: http://www.rediff.com/business/slide-show/slide-show-1-investors-view-india-as-an-attractive-destination/20120130.htm
Follow us on: www.facebook.com/KarvyWealth
www.twitter.com/KarvyWealth

Get Rich By The End Of 2011

‘Get Rich’ Should be your new year resolution . Achieve this goal by borrowing, investing and spending smartly.
This is about just simple tips, whereby you can end 2011 a bit richer than what you were at the end of 2010. These pertain to spending, insuring, investing and borrowing wisely. It is said that the longest journey begins with a single step. Well, here are a few steps you may like to take

Rein in spending

Take care of your credit card and it will take care of you. Our elders advised us not to use credit cards. All, we are saying: use it smartly. First, integrate your card usage with your daily purchases, be it at petrol pumps, supermarkets and other places. Do not reserve it only for big-ticket purchases.

Banks often advertise that you can enjoy a 50-day credit period. Beware, this is 50 days from the beginning of your billing cycle. Hence, try to 'front-load' your spending such that you spend more in the first 10 days rather than the last. This will enable you to enjoy a longer credit period. Also, remember that the free credit period ceases once you undertake part-payment of a card bill. Hence, try to pay your entire bill at one go.Revolving credit is one of the surest ways to end up poorer. Additionally, never fall for 'zero EMI' schemes, as the processing charges therein are nothing but interest in disguise

Insure adequately

Purchase insurance online and enjoy discounts of over 30 per cent on the premia, as compared to purchasing through an agent. Do not purchase life insurance if you are single and have no dependents. However, do not miss out on accident, health and property insurance.If you have taken a home loan, taking a level term cover to protect your family may be preferable to opting for a reducing balance mortgage redemption cover. Calculate accurately before taking a decision. While purchasing health insurance, give more importance to referrals from acquaintances, rather than opt for the one charging the lowest premium.

Investment planning

If you are opening a new broking account, look at the online option first, as brokerage charges are usually lower as compared to the offline option. Also, if you are an active trader operating from home, choose an unlimited use internet plan, as it will be more cost-effective in the long run. As a rule, never keep more money than required for emergency purposes in bank savings accounts, as you earn next to nothing in these. However, while doing so, ensure you maintain the required average quarterly balance in your account. This will help you avoid hefty non-maintenance charges. Never invest more than the amount absolutely necessary for tax saving in equity-linked savings schemes (ELSS).There are several diversified funds as good as these, without the three-year lock-in period. Stay clear of 'structured products' unless you are absolutely clear about the costs involved and the payoff structures. Opt for low-cost products such as index funds or exchange traded funds (ETFs).

Minimise borrowing

Put up as high a down payment as possible while purchasing a house or car. This will not only help you save on interest but also enhance your credibility and help you bargain for other freebies.Take a housing loan with daily or monthly reducing balance, as compared to a quarterly or annual one. Also, if you have surplus funds, you could repay your housing loan to the extent possible. Procure a copy of your credit history from Credit Information Bureau (India) (CIBIL) or any other credit rating agency, before embarking on the borrowing process. This will help you know where you stand and also bring any mistakes to your notice well in advance. Visit loan comparison websites to get a better grip on the prevailing rates and other terms. And, finally, keep an eye on your financial ratios. There are key financial ratios which you must always track to get a bird's-eye view of your situation.



Source :Rediff Business