Are you hungry...for returns?

You crave for food when you are hungry and you crave for returns when you are hungry for revenue. This happens when you have a very high expectations with your investments and you urge for more. Investment can be done only when you have that right amount of fund implemented at right place with proper understanding of it. The hunger for returns will get fulfilled only when you are convinced. If you are not convinced with the returns you are getting, that means either you have invested at wrong place or you are dreaming more than you actually should.

 

When you are hungry, you like whatever is kept on your plate and you easily eat it. But when you are done with it, you quite dislike the same thing you liked few minutes back. Same is with investment. When you are hungry for returns, whatever investment source is been displayed, you tend to accept it and invest. Later you realize it is not as good as other source. This happens only when you have not analyzed and understood about it. Later you repent.

The right way to fulfill your hunger is eat slow, eat fresh and eat by knowing the fact that you will soon find it less pleasurable. Whatever you have got, you have got it as per your investment and market conditions at that time. Hence if you want to fulfill your hunger, chose a right strategy and think of future, Ans if this is not possible, let us know.

Economy and Realty at glance- June 2012

GDP at a nine year low of 6.5%, high inflation at 7.55%. Ironically, in the fight between taming inflation and propelling growth, we are losing out on both

- Revenues of top-25 realty companies declined 9.30% in Q4FY12, mainly on account of low sales off-take due to higher prices and higher mortgage rates.

- The Realty Index on Bombay Stock Exchange (BSE) has dropped by more than 26% during the last one year compared to a 10% fall in the Sensex during the last fiscal year. In order to bring back the enthusiasm of the investor community into the sector, real estate companies will have to focus on factors such as improving cash flow position, lowering inventory, reducing debt and increasing profit margins

- RBI in its mid quarter review of monetary policy in June reaffirms that cheap interest rate is a far-fetched expectation in the wake of high inflation rate

- During the March 2012 quarter, interest cost as a percentage to sales stood at 15% compared to only 8% reported during the March 2010 quarter

- Although international crude oil price has declined by 20% since the beginning of the last fiscal year, the price of domestic fuel has gone up because the depreciation in Indian currency against USD by 25% during the same period has made import of crude oil expensive

- The Indian Rupee has depreciated by 18%, 8% and 32% against the British Pound, Euro and Yen respectively. Hence, a stubbornly high inflation rate will defer a lower interest rate regime