The World this Week: August 13 - August 17, 2012

The World this Week: August 13 - August 17, 2012 from Karvy Private Wealth

The World This Week - 6th August to 8th August, 2012

Predict & Win

In this pace of life, you cannot run faster than your limit. But what you can do is just reach to a level where you can at least prepare yourself for the consequences. Now, whether it works or not, you have at least a set of priorities that you can look for and accordingly plan for future. This doesn’t have to be the financial decisions that you make but can be any decision you are making for your life. In this case, you need to predict what can happen and who knows you can win the situations. Change is the only constant thing in the world and you can never estimate the change that can happen but you can always predict it. There is one advantage about this prediction, i.e. it leads you think about past, present and future. The who gets it right, wins.

What you can predict is what you believe and hence when you start going in a right path, you will get a measured result. Predicting that Insurance is not for the youth or it is not needed right now, can be a wrong prediction for you. There are so many insurance policies that not only cover your life but also your health. So explore this stream and just give it a try to at least understand the products and availability. Remember, a right prediction will lead you a right decision in the end.

If you are really eager to explore and don’t know how to take a step forward, Karvy Private Wealth helps you in the assistance.

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Investment on your Mind?

Investment is something that grabs your attention as soon as you start earning a decent living. Anxiety about the future and the desire to lead a comfortable and secure life, prod us to mull over the various options available for investment. From bank savings, stocks, bonds, mutual funds, and provident funds to post office savings schemes and insurance policies, there is a wide range of choices.

Fixed Deposits offer higher interest rates compared to Savings Account, whereas the stock market involves higher risk and return. Equity shares promise maximum returns in the long term if you are willing to take that kind of risk. While certain investment options have a high risk attached to them, some others are highly illiquid. In this scenario, it is crucial to critically analyze the options available and choose the right one depending on your risk appetite and investment goals.

Insurance is a very attractive investment option given that it enables the policyholder to mitigate risks while earning good returns on the funds. It protects policyholders against various risks to life and property, minimizing the damages and the impact. It helps to plan and prepare for life events like marriage, getting admission in your dream university, buying the perfect home and retirement. Loans are available against the accumulated cash value of the premiums paid. Dividends are paid out in the case of unit-linked plans like endowment policies.  Apart from this, insurance also offers tax benefits. Thus we find that the advantages of buying an insurance policy are manifold.

However, it is important to choose the most appropriate insurance policies to reap maximum benefits. Karvy Private Wealth offers high quality insurance planning services to guide you through the process. Experienced and qualified professionals analyze your risks based on age, health, income etc. and suggest the right plans for you.

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Secure your Sister’s Safety this Raksha Bandhan!

The festival of Raksha Bandhan celebrates the unique bond shared by brothers and sisters in India. As the name implies, it symbolizes the bondage of protective affection. When a girl ties her brother a Rakhi, he gives her a return gift as a promise to take care of her, come what may. Having a brother is one of the greatest blessings in a girl’s life because it gives her the security of knowing that she will never be left in lurch.

What better gift than health insurance to ensure the security of your beloved sister? Health Insurance provides protection in the wake of unforeseen events like accidents and health issues that can create chaos in your sister’s world. In today’s times where medical costs are rising and hospital bills are uncertain, it is important to prepare yourself financially for a health crisis.

Karvy Private Wealth offers very comprehensive health insurance plans such as mediclaim, family floater plans, senior citizens’ plans and critical illness plans. An individual health insurance plan (IHIP), or ‘mediclaim’, would cover your expenses if you are hospitalized for at least 24 hours. These plans are indemnity policies, that is, they reimburse the actual expenses incurred up to the amount of the cover that you buy. Some of the expenses that are covered are room rent, doctor’s fees, anaesthetist’s fees, cost of blood and oxygen and operation theatre charges. . Under a Family Floater (FF) health plan, the entire sum insured can be availed by any or all members and is not restricted to one individual as is the case in an individual health plan. A Critical Illness plan allows you to insure against the risk of a serious illness.

So choose your Rakhi gift wisely this season by picking something that would truly ensure her safety and protection. Happy Raksha Bandhan!

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Have you got your Insurance right?

As human beings, we do not like to lose control over situations. However, life has its own unique ways of surprising us. It can go totally against our plans and expectations, sometimes with disastrous consequences. Insurance is a tool that helps us manage the inherent risk associated with life.

There are different types of insurance that enable you to seek protection against damage to life and property. Any risk that can be quantified can be insured, which gives rise to a variety of insurance options like medical insurance, auto insurance, home insurance, unemployment insurance, accident insurance, workers’ compensation, credit insurance, crime insurance, mortgage insurance and so on. These fall under two major categories namely, Life and Non-Life.

 Life insurance policies give a monetary benefit to the insured’s family or any other beneficiary in the event of death, either in lump sum or as annuities. Some life insurance contracts like endowment policies provide investment opportunities through unit-linked funds. Non-life insurance includes all Property & Casualty (P&C) policies. Property insurance buffers against risks to property such as fire, theft or natural disasters.  Casualty insurance includes all other policies like auto and workers compensation.

The range of choices available makes it clear that choosing the right insurance policy is not a simple task. It demands careful analysis of the kind of risks faced by an individual and the types of protection needed. This is where an experienced and reliable financial advisor comes into play. Karvy Private Wealth guides you through the maze of insurance policies and helps you choose what best suits your risk profile.

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Secure Your Security

What makes life exciting is its unpredictability. But that is also what makes it scary and sometimes disastrous. Given that not one of us has the slightest clue about what is going to happen to us or the world, isn’t it wise to be a little wary? Isn’t it better to be a little cautious and plan for any unforeseen event? Even if you are willing to take life head on, would you risk the security of your loved ones who depend on you?

Providing for your family during this lifetime is a responsibility that you willingly embrace. But spare a moment to think about the calamity that would fall upon them if you were to suddenly vanish from the face of the earth. Every day we are faced with a variety of risks to our existence – road accidents, natural calamities and illnesses to name a few. It is to mitigate these risks that you primarily rely on insurance.

The second and equally compelling reason to insure yourself is the investment opportunity it provides. Insurance serves as a source of great returns if chosen prudently. In a world where money speaks and human needs continue to grow, it is crucial to invest wisely. Insurance is thus a very attractive proposition because it not only mitigates your risks, but helps to earn good money.

Karvy Private Wealth brings to you insurance planning services to manage your risks in the most efficient manner. A team of professionals analyze your risks with regard to age, income, health and other factors and recommend policies that ensure the maximum cover. Financial solutions being products that demand careful study, Karvy Private Wealth offers the much needed guidance, support and practical assistance for your insurance needs.

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Invest Options in Gold

If you intend to invest in gold especially now when it is trading at historic levels of 1600-1800 $/oz.

However, from the asset allocation point of view, some portion of one’s portfolio should be in gold. Accordingly, let us explore the different avenues available today to invest in gold.

a) Physical gold from Jewelers/banks

Buying physical gold from jewellers has been the traditional way since centuries. And within physical gold, jewellery has been the most common form of purchase. The balance, in relatively small quantities, has been the gold coins and bars. 

b)  Gold ETFs
Gold ETFs are mutual fund schemes that invest only in gold. Thus it is as good as holding gold; except that it is held electronically. Generally 1 unit of Gold ETF is roughly equivalent to 1 gram of gold and hence its price is also roughly equal to price of 1 gram of gold. You can buy a minimum of 1 unit of Gold ETF.

c) Equity-based Gold Funds:
These are mutual fund schemes that instead of investing directly in gold buy the equities of companies engaged in mining, extraction, processing and marketing of gold.

d) e-Gold
Launched recently by the National Spot Exchange, e-gold is also an electronic form of holding gold except that herein you are directly the owner of gold whereas in Gold ETF the Asset Management Company is holding the gold (of course, on your behalf).

Unlike Gold ETF, e-Gold also offers the facility of physical delivery. However, given the additional costs involved viz. delivery charges, VAT and octroi, it may be better not to opt for physical delivery.

e) Gold Futures
This is just a short term product useful mainly for trading in gold and not investing in gold. Hence, it is kept out of the purview of this article.

Source:  http://www.moneycontrol.com/news/gold/many-ways-to-investgold-which-is-best-option_641164.html 

Eliminate your Debt

Here are five steps to help you eliminate your debt and set yourself up to avoid problems in the future.
The world has advanced so much that nothing has become impossible. Technology has widened to a greater extent and simultaneously the way of living has also risen. But what in this high standard world is the amount of debt that has be created.
Getting out of this debt is obviously what one would desire but how? No one knows.
Here are five steps to help you eliminate your debt and set yourself up to avoid problems in the future.

1. Know what you owe: Figure out exactly whom you owe and for how much. Make a list of all your debts, minimum monthly payments, due dates, and interest rates. Rank your debts in order from those with the highest interest rates to those with the lowest. Determine which debt (if any) is worth keeping.
2. Set up a budget and pay up your debt:If you don't already have a budget, now is as good a time as any to start one. A budget will help you determine how much debt you can pay off, as well as where you can trim expenses to end up with more money to pay up debt.
3. Lower your borrowing costs: Review opportunities to transfer your loan to another provider who offers a more competitive rate. In the context of home loans, this is colloquially referred to as a 'balance transfer'. Based on the offers on hand, you should even consider negotiating with your current loan provider.
4. Set up an emergency fund: To keep yourself from falling back into a debt trap, you need to set yourself up for a secure financial future. An emergency fund is your financial cushion to help protect you from unexpected expenses (say, expenses on account of a medical contingency) or changes in income (such as losing a job). You should keep this fund in a safe and liquid avenue like a savings bank account.
5. Live within your means:This is a hard but necessary truth. Stick to cash whenever possible for future purchases. If you don't want to carry cash, use a debit card instead of a credit card. Even when you use a credit card, ensure that you pay it off every month and pay it off on time!

Source: http://www.rediff.com/getahead/slide-show/slide-show-1-money-five-steps-to-reduce-your-debt/20120718.htm

Narayana Murthy and Growth of Infosys

Infosys Technologies is one of the few Indian companies that has changed the way the world looks at India. 

No longer is India a land of snake charmers and beggars. It is now perceived as an economic giant to reckon with, bursting with brilliant software engineers and ambitious entrepreneurs. And Infosys is an symbol of India's information technology glory. 

Infosys has many firsts to its name: The first Indian firm to list on Nasdaq; the first to offer stock options to its employees. . . The company crossed $1 billion in revenues for the first time in 2004. TCS, however, was the first Indian IT firm to top $1-bn in revenues.Infosys is an organisation that inspires awe and respect, globally. On July 2, Infosys completed 25 years in existence. This is its amazing success story, illustrated by rare photographs.

The idea of Infosys was born on a morning in January 1981. That fateful day, N R Narayana Murthy and six software engineers sat in his apartment debating how they could create a company to write software codes. 

Six months later, Infosys was registered as a private limited company on July 2, 1981. Infosys co-founder N S Raghavan's house in Matunga, northcentral Mumbai, was its registered office. It was then known as Infosys Consultants Pvt Ltd. 

What was the company's starting capital? 

US $250. Murthy borrowed $250 from his wife Sudha to start the company. The front room of Murthy's home was Infosys' first office, although the registered office was Raghavan's home. 

Who were Murthy's six friends who joined hands to launch Infosys? 

Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora. 

Are all of them still the founding directors? 

Murthy is currently chief mentor and chairman while Nilekani is the chief executive officer and managing director. Gopalakrishnan, Shibulal and Dinesh are directors. Raghavan retired as joint managing director in 2000. He is currently the chairman of the advisory council of the N S Raghavan Centre for Entrepreneurial Learning at the Indian Institute of Management, Bangalore. Ashok Arora worked for the company till 1988 and left after selling his shares in the then unlisted company back to the other promoters. He moved to the United States where he now works as a consultant. 

 

The idea of Infosys was born on a morning in January 1981. That fateful day, N R Narayana Murthy and six software engineers sat in his apartment debating how they could create a company to write software codes. 

Six months later, Infosys was registered as a private limited company on July 2, 1981. Infosys co-founder N S Raghavan's house in Matunga, northcentral Mumbai, was its registered office. It was then known as Infosys Consultants Pvt Ltd. 

What was the company's starting capital? 

US $250. Murthy borrowed $250 from his wife Sudha to start the company. The front room of Murthy's home was Infosys' first office, although the registered office was Raghavan's home. 

Who were Murthy's six friends who joined hands to launch Infosys? 

Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora. 

Are all of them still the founding directors? 

Murthy is currently chief mentor and chairman while Nilekani is the chief executive officer and managing director. Gopalakrishnan, Shibulal and Dinesh are directors. Raghavan retired as joint managing director in 2000. He is currently the chairman of the advisory council of the N S Raghavan Centre for Entrepreneurial Learning at the Indian Institute of Management, Bangalore. Ashok Arora worked for the company till 1988 and left after selling his shares in the then unlisted company back to the other promoters. He moved to the United States where he now works as a consultant. 

 

25 years sheer determination, and growth 

In the last 25 years, Infosys has been growing and growing. 

Today, Infosys is India's second largest software exporter. It now enjoys a strong liquidity position with over Rs 6,000 crore (Rs 60 billion) in assets, including surplus cash. 

During 2005-2006, the Infosys internal cash accruals more adequately covered working capital requirements, capital expenditure and dividend payments leaving a surplus of Rs 1,612 crore (Rs 16.12 billion). 

As on March 2006, the company had liquid assets including investments in liquid mutual funds of Rs 4,463 crore (Rs 44.63 billion). This collectively makes the liquidity strength of Infosys at Rs 6,078 crore (Rs 60.78 billion). 

Where are these funds parked? 

These funds have been deposited with banks, highly rated financial institutions and in liquid mutual funds. Infosys last year derived an average yield of 4.48 per cent (tax free) from these investments. 

The company received Rs 647 crore (Rs 6.47 billion) on exercise of stock options by employees and cash equivalents including liquid mutual funds increased by Rs 1,612 crore during 2005-06.

Gift for your Father

A father is the one who has always looked up to your securities and has always fulfilled your command. He is the only one who might have spent less time with you but he does not have forgotten you even a single minute. This time it is a chance for you to give your father what he deserves. Give him something for which he is proud and will help him even after his retirement. When his time to earn has finished, that is when your time to make him live another life. Looking to this, Karvy Private Wealth has arranged a list of products that you can give to your father this Father’s Day.


Following are the list of products that Karvy Private Wealth has introduced for all the people who love their father and who are willing to gift their father something very special and unique:
Health Insurance – Gift your father health insurance
Annuity and high yield debt

a. Annuity – Typically invest a lump sum and father will get a monthly income from this till he is alive
b. High yield debt – Again a lump sum invested in secure product, which will give higher than inflation returns, paid out monthly. However tenure is 2-3 years and not life long as in case of annuity.

Now that the Father’s Day is taking place, why not make it special for your father and gift him a lifetime security! Be a proud son of a proud father and build a relationship which is not only emotionally based but also monetarily advanced.

For more details visit: www.karvywealth.com
Email us to: karvywealth@gmail.com

Now that you know what you can gift your dad, what you need to do is just participate in 'Love You Dad' contest and win exciting prizes. For more details click here: http://www.facebook.com/KarvyWealth/app_205174506179089

Disclaimer: The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it.

J R D Tata's Excellency

In 1939 the group included fourteen companies with sales of Rs 280 crore (Rs 2.80 billion); in 1993, the year of his death, sales were Rs 15,000 crore (Rs 150 billion) contributed by over fifty large manufacturing companies, besides innumerable holding, investment, subsidiaries and associate concerns, making it India's biggest business group.

Diversification

During the last half of the twentieth century Tata entered several new businesses, many of them unconventional, and produced a vast range of products -- from airlines to hotels, trucks to locomotives, soda ash and other heavy chemicals to pharmaceuticals and financial services, tea and air conditioning to lipsticks and cologne.

The group seemed to make everything and do everything. One of Tata's earliest achievements was to cajole ten rival cement companies to merge and form the Associated Cement Companies, run by the Tatas.

JRD strengthened existing businesses such as steel, power and hotels. At the same time, the group lost interest in some of its older core businesses.

Against all odds

His achievements have to be seen through the lens of India's economic and political history. Under British colonial rule until 1947, India was strait-jacketed by a foreign exchange crunch for almost forty years after independence, which gravely limited industrial entrepreneurship.

From 1964 to 1991 severe government controls on big business further curbed the growth of the Tata Group.Analysing his own performance, JRD Tata insisted that his only real contribution to the group's smorgasbord of companies was Air-India. For the rest, he generously gave credit to his executives.

The leader and the motivator

Leadership, according to JRD meant motivating others. 'As chairman, my main responsibility is to inspire respect.' Sometimes referred to as the 'chairmen's chairman,' JRD adopted a management by consensus style: 'When a number of persons are involved I am definitely a consensus man,' he once said, adding: 'but that does not mean that I do not disagree or that I do not express my views. Basically it is a question of having to deal with individual men heading different enterprises. You have to adapt yourself to their ways and deal accordingly and draw out the best in each man. If I have any merit it is getting on with individuals according to their ways and characteristics. In fifty years I have dealt with a hundred top directors and I have got on with all of them. At times it involves suppressing yourself. It is painful but necessary. To be a leader you have got to lead human beings with affection.'

Professionalism

JRD's respect for his managers bound the group. 'I am a firm believer that the disintegration of the Tata Group is impossible,' he once declared. Most business groups have disintegrated or drifted apart because of family ownership and management, with rival family members wanting to go their own way. In contrast, the Tata Group companies are run by professionals who firmly believe in the trusteeship concept laid down by J N Tata as also by Mahatma Gandhi. A university dropout, JRD was something of a self-taught technocrat, and died long before the phrase 'war for talent' was coined. Yet, almost every senior Tata director from the 1930s onwards held a degree from a foreign university. Tata willingly financed bright young boys who wanted to go abroad for further education.

Quality first

According to JRD, quality had to match innovation. He intensely disliked the laid-back Indian attitude, and much of his fabled short temper was triggered by the carelessness of others. He stressed: 'If you want excellence, you must aim at perfection. I know that aiming at perfection has its drawbacks. It makes you go into detail that you can avoid. It takes a lot of energy out of you but that's the only way you finally actually achieve excellence. So in that sense, being finicky is essential. A company, which uses the name Tata, shares a tradition. The symbol 'T' has to be a symbol of quality.'The achievements of the Tata Group would not have been possible without the support of its workforce. Before JRD took over, the labour situation at key Tata plants was frequently tense despite the fact that management had poured millions into subsidized housing for workers, offered free medical and hospital treatment, as well as free education and was miles ahead of government legislation in terms of labor practices.

A benign boss

According to Tata, the crux of any successful labor policy lay in making workers feel wanted. One of the inherent drawbacks of modern industry with its large and concentrated labor forces was that each man felt 'that instead of being a valued member of a friendly and human organisation, he was a mere cog in a soulless machine.'' Because of this, a worker's attitude towards management becomes one of indifference, mistrust and coldness often tinged with hostility. He is easily led to feeling himself the victim of callous and unfair treatment and little is needed to make him look upon his employers as his enemies and break out into open conflict.'

Tata Steel became one of the earliest companies in India to have a dedicated human resources department. Expressing surprise that the company had functioned for so long without one, Tata commented: 'If our operations required the employment of, say, 30,000 machine tools, we would undoubtedly have a special staff or department to look after them, to keep them in repair, replace them when necessary, maintain their efficiency, protect them from damage, etc.'

Save Tax

The IT Act 1961 is loaded with big dollops of taxpaying/tax saving information. Ways to save tax have always been an interesting consideration for tax payers all across the world and the Indian tax payer is no exception.Since tax saved is money saved, we hold that to be completely justified. While some of the tax-saving avenues are well-treated by the tax payers in the nation, there are some roads to tax saving which are lesser known.

In India, you can enjoy a tax deduction if you have contributions to make to a political party. The IT Act says that any amount of money that is donated to an acknowledged political party can be lawfully claimed for deduction, under Section 80GGC (For corporate it is 80 GGB).This deduction was launched in April 2010, and the same applies to any contributions made to electoral trusts as well.

There is no set upper limit for the deduction amount, but it can exclusively be claimed only if the contribution goes into the party funds.

It is interesting to note here that deduction on donations does not come into play if you are donating money to an individual. It is only applicable if you are donating it to specific organizations.

Simply stated the Loan to Value (LTV) is the ratio of the amount that you wish to borrow for a home to the actual value of the home. The LTV can be calculated from the actual worth of the home, the mortgage being taken and the down payment that has been made prior to the loan.

For example - the value of a house is Rs 40,00,000/- and a down payment of Rs 400,000/- has been made a loan of the balance amount that is Rs 36,00,000 is being sought. In this case the LTV comes to be Rs 36,00,000/- of the actual value of Rs 40,00,000/- which works out to 90 per cent. Thus the LTV is 90 per cent.

On the issue of LTV the RBI has made the following statement on February 03, 2012 vide their circular "RBI/2011-12/383 DBOD.No.BP.BC. 78 /08.12.001/2011-12" -- "In this connection, it has been brought to our notice that banks adopt different practices for deciding the value of the house property while sanctioning housing loans.

Some banks include stamp duty, registration and other documentation charges in the cost of the house property. This overstates the realizable value of the property as stamp duty, registration and other documentation charges are not realizable and consequently the margin stipulated gets diluted.Accordingly, banks should not include these charges in the cost of the housing property they finance so that the effectiveness of LTV norms is not diluted."

For example, Section 80G of the IT Act says that if you are donating funds to a charitable organization, you are entitled to get a deduction of 50 per cent-100 per cent for that.

However, note that there exists a ceiling here -- the percentage of deduction is restricted to 10 per cent of the donor's (gross) total income. Also, only donations in cash are taken into consideration for the purpose and not donations in kind.

Needless to say that the amount of tax you can save is dependent on the amount that you contribute.You would require a proof to claim this deduction and that's a stamped receipt of the amount donated, from the party or the organization to which you have made the contribution.

The Indian taxman has a heart of gold and it is seen nowhere better than this. Section 80 U of the IT Act says that if a taxpayer happens to suffer from any of the listed disabilities (see below), he is entitled to a tax deduction of Rs 75,000.

If the tax payer has a disabled dependent (spouse/parents/children/siblings) to support, Sec 80DD allows him to claim the same.

Disability list includes low vision, blindness, hearing disability, leprosy, loco-motor impediment, mental illness and mental retardation.

This deduction is obtainable only if the disability is at least 40 per centFor severe impairments, 80 per cent or above, the deductible amount becomes more – 1 lakhThe disabled must be fully dependent for upkeep on the taxpayer and must not be claiming deduction for it independently under Sec 80 U

Proof required to claim this deduction will be a disability certificate from a CMO of a government aided hospital or a civil surgeon.

Facts that Insurance agent never tells you

When the insurance advisor approaches to sell a policy or plan, his persuasive tone might drown your doubts. Features that provide a feel good factor are only disclosed to the customers and aspects that have even a marginal negative connotation are conveniently hidden by the agent. A careful inspection of the fine print in the policy document will reveal many such loopholes that may actually prevent you from getting all the promised benefits of the policy. It is, thus, a good idea to get all your doubts clarified right from the beginning to avoid unpleasant surprises later. One may also approach the branch manager or the training manager of the insurance company in order to get all the details simplified whenever there is any confusion regarding the terms and conditions or the features of the plan.

Depending on the insurance variant and nature of the plan the fee and charges will vary. If you are opting for a insurance plan that combines investment and insurance your agent might casually overlook any mention of the allocation fees and administrative charges that the insurance company is going to take from the amount deposited. The first aspect through which the buyer will lose money when taking an insurance policy is the allocation fees, which comprises the administrative charges and the risk premium charges. This implies that when you buy a policy there will be considerable amount deducted from the money paid towards allocation fees and the remaining will only be used to buy units for your insurance account. The allocation fee is typically highest in the first year and thereafter reduces proportionally. Thus in order to recover the basic amount that has been invested the investor will have to wait till the NAV of the remaining amount grows to make up for this amount.

The lock in period is another aspect that the agent is usually shy to explain. This is the mandatory period for which the money must stay invested with that company in order to derive benefits. In case the investor wishes to withdraw during this period there are likely to be severe penalties which will significantly reduce the net amount payable to the investor - as high as 4 per cent of the amount paid may be lost in case you withdraw before the completion of the minimum prescribed lock-in period. Thus while making the decision to buy a policy one must look at the possibilities of any requirements for withdrawing in between and then put in the money.

The surrender charges are never mentioned to the buyer at the time of purchase. The agent will usually promise that the entire NAV of the plan will be paid out to the customer incase the policy is surrendered before its maturity. However, this is not the case in majority of instances. All companies do levy a fixed surrender charge if the policy does not reach maturity. This charge can be quite an amount considering the fact that the plan is held for 10 years or more and surrendered before maturity. Thus while buying a plan it would be wise to carefully consider the maturity period specified for that plan.

There are several other factors that the terms and conditions of any insurance policy mention to which most buyers do not pay any heed at the time of purchase. However this slip up may actually render the policy invalid or make it extremely difficult to claim the full benefits at the time of requirement. It is in your own interest and the interest of the family members whom you are trying to protect, study all the clauses that is mentioned in the fine print of the policy before actually signing the deal.

Future of Gold

Made Governor of the Central Bank of India, d. Subbarao, tremendous efforts to dissuade the citizens of his country from investing in gold, and on the back of the pressures posed by imports of gold standard on the value of Indian rupee. Attention fans of shares and securities critical to invest in gold by saying that he lost any intrinsic value and is subject to theft, which is a source of concern to its owners.

And gold was made to its investors an annual return of 25% over the past five years, but in recent months has been subjected to the low value of 4%. Based on this, is there a reason to invest in gold?

Experts respond positively to this question, but they argue that investing in gold may be done only as insurance against the collapse of the other categories of assets. Says Lakshmi Iyer, head of investment products and fixed income in a box “Cuttack” common: “We believe that the difficulty in curbing inflation and performance moderate stocks and asset classes are included for the debt securities may induce many small investors to turn to gold, as a category of investment.” She adds: “The variability of the underlying market for foreign currency and the possibility of monetary expansion to some of the major currencies around the world, may push in turn also to the expected improved performance of gold, but it is a bad idea if you think that gold can be a substitute for other assets such as equities and fixed income. It For his part, says Kapil Narang, Chief Executive Officer, Foundation Ameriprise India: As long as you do not seek to achieve a return in the short term, we believe that we are always investing in gold should be part of a very diverse portfolio. “ And continued with saying, look to gold as a tool to ensure backup save the value when passing other categories of investment periods of volatility.

The record high for the price of gold increased by 30% during the last year is the very reason financial planners to advise investors not to do a large bet on the yellow metal. Says Aditya Daddy, a partner at Foundation The Tipping Point, a consulting firm financial: “We have passed the stage in which he was possible advice to invest in gold as a tactical, and we are now advised the investor that ensures its investment portfolio represented 5% of the precautionary measure of exchange against inflation Financial because the price of gold following the rate of inflation. “ He adds that those who actually chose to allocate 10% of their portfolio of gold, and then increased its share of the portfolio to 15% following a high price, they can sell part of gold and increasing the share of assets fell in value recently.

Although the above justify continued investment in gold, but that does not represent good news for women, it is not permissible to buy gold jewelery and consider it as an investment in gold, because the cost of production of jewelry and drop the price when the sale does not keep the profit margin mention of gold in order to an investment. Daddy says that even if the collection of gold for a future occasion such as marriage, it is the most logic to buy the metal through electronic funds traded in the financial markets, a form of non-physical forms of gold. He adds: “Even if you were buying gold in the form of alloys, there is still a difference between selling price and the repurchase price. And the best option is to invest in gold through funds traded in the financial markets, then sell when needed, and then do buy gold material.”

Has increased the spread of funds traded in the financial markets and investing in gold significantly, with the number of accounts in these funds from 147 047 in March of 2010 to 428,769 in September 2011, a high convergence rate of 192%. The total amount of gold owned by the fund rolling company AMC, an Indian company for asset management, has risen from 19 tons in March of 2011 to 28 tons in September and to 33 tons in December 2011, an increase of 74% during the nine months.

Upon observation of these popular enjoyed by ETFs investing in gold, I decided Exchange of India National (NSE) to do trading session private funds traded invested in gold, after the completion of trading cash and derivatives at half past three pm will be held on 24 April. At the time that can be traded funds, gold during a session of regular trading that are open in the ninth hour and a quarter of the morning and closed at half past three in the afternoon, is the resumption of trading funds, gold in the fourth and a half from that date to continue until eight o’clock pm, in order to enable investors to invest in gold until late in the evening. It was also decided not to impose fees on the implementation of the trading funds, gold transactions during the day, ie twenty-fourth of April.

Importance of a Rupee Symbol

In this fastest growing country where the growth rate has clocked over 7%-9% every year even after this huge downfall of the market, it is significant to live up to the standard and keep the pace constant. However, India remained an exception even during the worst two years of world economy in 2008-09. The growth rate didn’t slow down considerably and Indian remained a shining light in the gloom and doom scenario of recession. That reflects the strength of the Indian economy. Considering this, it was only recommended to have a unique Indian rupee symbol. 

The rupee symbol helps in differentiating with other currencies of Sri Lanka, Pakistan, Indonesia and Nepal. Worldwide, renowned economists have expressed their approval and delight at this new phenomenon. The new symbol will prove crucial in enhancing India’s growing financial clout. The rupee symbol reflects ever-increasing economic linkages between India and the world. 

Till now, Indian rupee was abbreviated as Rs, Re or INR. But soon we will have Indian rupee symbol in keyboards and other places. New symbol is a reflection of Indian ethos and culture. The symbol would be used across a wide range of technical applications including mobile phones, computer software, banners and web world. This will be definitely registered as a historic step in Indian economy that only reinforces the important role played by Indian economy in the global market. New Indian rupee symbol definitely gives all the Indians a reason to feel proud of our country.

Indian government cabinet gave approval to the new graphic symbol for the rupee on 15th July 2010. It is a well calculated move to project Indian currency as an icon of the growing importance of India in world’s economy. By giving its approval for new rupee symbol, India joined a very elite group of the USA, UK, Japan and European Union to have its own currency symbol. The new rupee symbol is a welcome addition to India’s influential role on the global stage. Considering the reputation of Indian financial markets, it was only fitting for Indian currency to have its own symbol.

Now, as the importance of the rupee symbol has grown, the amount of significance has to be at that level. Hence keeping the wealth safe and systematic is what Karvy Private Wealth believes in. For details join us on:

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We are very POSITIVE on India: Piaggio chairman

The economic squeeze may be getting tighter in the euro zone -- and more so in Italy apart from Greece and Spain -- with every passing day. But that has in no way deterred group Chairman and CEO of Piaggio Roberto Colaninno or affected his investment plans for India.

Replying to a query from Rediff.com, Colaninno said that while 50 per cent of the company's total investment outlay is meant for Italy, the remaining 50 per cent will be invested in markets across Asia that includes India and China.

He, however, did not clarify the size of Piaggio's total investment outlay and more particularly the quantum of that share the Italian company will invest in India.

"During our internal discussions we have delved on what kind of strategy we should have (for India)," Colaninno said without divulging any more details.

He said, "We are very positive about our investments in India."

He further added that the company has already initiated steps to double the capacity at Piaggio, Baramati, from 150,000 units per year to 300,000 units per year by mid-2013.

"I am very optimistic about our growth prospects in India," he said, emphasising the company's plans to bring in at least 20 million euros this year as investments in the Piaggio's Baramati plant that will manufacture the Vespa LX 125.

According to a press release issued by the company, the Indian subsidiary of Piaggio has already invested Rs 10 billion (Rs 1,000 crore) in India as of December 2011.

"The investment in Baramati is part of our strategic plan, which sees India as a significant destination in our growth trajectory," said the press release issued by the company.

It's offers galore to push petrol cars

For those shying away from driving home their dream vehicles, this may be the right time to go for it.

Automobile manufacturers are offering freebies, ranging from gold coins and LED televisions to record discounts, to push petrol vehicle sales.

While the country's largest passenger car maker, Maruti Suzuki India Ltd, has lined up discounts of Rs 20,000-25,000, including offers on its best-sellers Alto and WagonR, General Motors and Toyota Kirloskar Motor are offering free maintenance and insurance services, respectively.

Honda Siel has drawn up attractive financing schemes to drive sales of its small car Brio. "Discounts on petrol cars are at a record high in the industry this year, due to slow sales of the fuel variant.

"We are also working on strengthening our product offering with cars such as the Ertiga and on boosting sales in rural markets to drive up petrol car sales," said Mayank Pareek, managing executive officer (sales and marketing), MSIL.

In case of models which have both petrol and diesel variants, MSIL records 40 per cent sales from petrol variants in rural markets, compared to 15 per cent in urban markets.

Pareek said MSIL was seeing good off-take of petrol variants of hatchback Swift and sedan DZire. Promotional schemes are being offered on the Alto, WagonR, A-Star and Estilo. None of these models is available in diesel fuel option.

Petrol prices have risen five times over the last year. The differential between the two fuels stands at Rs 25.51 a litre, up from Rs 10 in April 2010, prompting an increasing number of consumers to opt for diesel cars.

Industry estimates suggest diesel vehicle sales grew 35 per cent last financial year to account for more than 47 per cent of the overall passenger vehicle sales. Petrol car sales dropped by 15 per cent. R. C Bhargava, MSIL chairman, had earlier told Business Standard, "In the current year, we are trying to bring down this decline to six per cent at Maruti Suzuki, but still, we'll be selling about 50,000 petrol cars less. We have 40 per cent of our petrol engine capacity lying idle at the Gurgaon unit."

To beat the slowdown, the country's second-largest car maker, Hyundai Motor India Ltd, is offering exchange royalty of Rs 10,000 on the Eon.

While discounts range upwards of Rs 15,000 on the Santro and Accent, freebies such as LED television sets are also being offered at the dealer's end on some products. 

A  company spokesperson said, "There are promotional offers on petrol variants, but these are region-specific."Toyota is taking initiatives to educate customers regarding the usage of diesel cars.

"We are taking initiatives to educate customers that the advantage of owning a diesel vehicle kicks in only if you drive up to 1,500 km a month. "We register 30 per cent of overall volumes from sale of petrol vehicles," said Sandeep Singh, deputy managing director, TKM. TKM is offering free insurance on petrol variants of sedans Etios and Corolla Altis, valued at one per cent of the prices of the vehicles.

Why you must invest in gold?

Gold has been performing well over the last 10 years. But, many investors are facing the dilemma of whether or not to invest in it at the current levels.  Gold's subdued performance over the past six months has also raised doubts in their minds about its potential.

No doubt, past performance is an important decision-making criterion. However, relying on it alone is never a wise thing to do. It can result either in over-exposure or under-exposure to an asset class, depending on how good or bad the asset class has been performing in the recent past. 

If you are a long-term investor, consider factors such as the contribution of an asset class to your asset allocation process, its ability to hedge inflation, liquidity, flexibility and tax-efficiency of the mode chosen to invest in that asset class. For example, if your objective is to accumulate gold for gifting it to your children on their marriage, the focus should be on investing through your time horizon, rather than worrying about price fluctuations.

As an investor, you must ensure proper asset allocation. Relying mainly on equities and debt instruments alone to achieve diversification in the portfolio may not be the right strategy. Gold can be an integral part of your portfolio, as it has a negative correlation with the other preferred asset classes. 

The price of gold retains its independence, mainly because the fundamental factors that impact it are different from those that affect other asset classes. Moreover, the sources of demand for gold are far more diverse. The existence of a range of buyers, such as jewellers, financial institutions, makers of industrial products as well as investment channels, including coins and bars, gold ETFs and e-gold also cuts the risk of liquidity. 

Besides, demand and supply factors do not always have the same impact on gold, as they do on other commodities for its hybrid nature - gold is a commodity, as well as a currency.  Gold is also a protector of wealth against inflation and can provide good returns over time. 

Another major advantage of investing in gold is it does not carry a credit risk. Of course, you may face the risk of price fluctuation. But, you can tackle it by investing systematically over time. Evidently, gold, as an asset class, has a lot to offer. Therefore, the issue is not whether or not you should have gold in your portfolio, but how much exposure should you have to it. 

While the thumb rule says it should be 10-15 per cent of your portfolio, the actual exposure would depend on the role you would like gold to play in your portfolio. I t is equally important to invest in gold by choosing the right option. There are hassle free options, such as Gold ETFs, gold savings funds and e-gold. 

The key is to realise that investing in paper gold is more beneficial than buying physical gold, especially if it is for investment purposes.