The post is about entrepreneurship in India where I have tried to put the views.
From the last couple of years Baba Ramdev, Kishore Biyani, Vijay Mallya and Govt. Of India has been making the news and there is lot more things common between them.
Lets begin with Baba Ramdev who became a household name by selling the benefits of yoga to the masses. He claimed that even diseases like cancer could be cured through yoga. Those who have seen his yoga View full article »
Exactly a month back I did a write-up on Fixed Maturity Plans V/s Fixed Deposits where both the instrument are issued by different authorities i.e banks and mutual funds.
Today’s write is concentrated on Mutual funds schemes, I came across Capital Protection Oriented Schemes (CPOSs). As the name suggests, the mainstay of such schemes is to provide capital protection. Structurally they are similar to another existing mutual fund category called Fixed Maturity Plans (FMPs), which has been around for a while. For investors, the presence of these categories which are structurally similar, yet distinct in terms of positioning can be confusing. View full article »
On an average the Indian market has given a 19% return in the last financial year that is the 3rd highest return after Egypt & Brazil who gave the better returns. The underlying is how many made the money because the markets where volatile , ruthless and driven by crisis over the year.
Wondering whether the 20 golden rules holds true for today’s market scenario :
- Your investor’s edge is not something you get from Dalal/Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
- Over the past 3 decades, the stock market has come to be dominated by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd.
- Often there is no correlation b/w success of a company’s operations and the success of its stock over a few months or even years. In the long-term there is 100% correlation b/w the success of the company and the success of the stock. This disparity is the key to making money: it pays to be patient, and to own successful companies.
- You have to know what you own, and why you own it. “This baby is a clinch to go up!” dosen’t count.
- Long shots almost always miss the mark
View full article »
Yesterday was going through a case on the art auction valuation under matters of pinion an article in Economist,where the UK
High court has passed the judgement against Sotheby’s the leading art auction house where Lord Coleridge claimed that the auction-house expert, Elizabeth Mitchell, was negligent when she gave an auction valuation of a treasured family heirloom. The historic gold chain of office had been in his family for generations, and the Coleridge’s (distant relatives of the poet Samuel Taylor Coleridge) believed it dated from the mid-16th century. Lord Coleridge had expected that the estimate for his rare Tudor jewel would be £500,000 or more. Ms Mitchell, however, proposed that it was from the late 17th century, and gave it an estimate of £25,000 to £35,000. This, Lord Coleridge claimed, had cost him a good deal of money. He sued for £415,000, the case is interesting and bit difficult to understand Caveat Vendor
Here are some thoughts on the why Art as an alternative Investment has become so popular and its bit complicate to understand the market, the auction houses and the pricing, View full article »
On my way from Mumbai to Bhopal last saturday was fortunate enough to watch the movie Other People’s Money . As I was more curious to know about the heated debate in US whether Private Equity to be termed as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance.
Let us try to understand Private Equity (PE) :
Private equity generally make investments in the operating companies through a variety of loosely affiliate investment strategies leveraged buyout, venture capital and growth capital.Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions.
They have been always in news as people see them as , private equity and job destruction aren’t the source of our employment woes. Rather, it is the clampdown on innovation. Some of the research claims that Private equity ownership resulted in both more rapid job destruction and faster job creation than other forms of ownership.
View full article »
Just wondering how many ever read the prospectus before signing the document for investments.
May be securities, Mutual funds, debt, Insurance or may be any other investment.
I already did a story long back in 2008 what to read in offer document http://wp.me/pc3rd-A
Here are some more bold points issued by SEBI (Stock exchange board of India)
In-case of Securities:-
- Read the Prospectus/ Abridged Prospectus and carefully note:
- Risk factors pertaining to the issue.
- Outstanding litigation’s and defaults, if any.
- Financials of the issuer.
- Object of the issue.
- Company history.
- Background of promoters.
View full article »
Yesterday one of my friend called me and shared his experience that he bought some shares on the advise of his agent (RM) and he cannot sell them as they are in to deep loses.
He was also having some mutual funds but they turned out to be ELSS as the 31st march is nearby.
The Term Financial planning is mis-directed, mis-guided and mis-selling lead to many such situations. I have just shared one of the case there may be many more :-
Systematic Investment Plan is an approach to investing within managed investments which involves investing a set of amount at regular intervals rather than investing a larger lump sum amount in one shot. By investing this way you are not attempting to capture the highs and lows of the market but rather the cost of your investment is averaged over a period of time. The essence of SIPs is that when the markets fall investors automatically acquire more units. Likewise they acquire lesser units when the market rises. This means that you buy less when the price is high whereas you buy more the price is low. Hence the average cost per unit drops down over a period of time.
I have suggested him to start an SIP for the following reasons learning from my prof:-
1. Understand the Power of Compounding: It looks odd to realise that the power of compounding is NOT taught well at school! They give you some simple examples – rarely are you taught the POWER! Even people working in financial services do not appreciate the power of compounding. Ignore this only at YOUR OWN PERIL.
2. Understand the Power of NOW: LEARN the power of starting to compound as soon as possible in life. If you have not understood, NO TIME LIKE TODAY..pick up the pen, call the advisor, click on the net – whateva…just start, NOW, TODAY.
3. Understand the Power of Regularity – start a SIP AND make sure you do it regularly – not missing a single month. If by chance you do miss a month of investing, immediately pick up a cheque and send it in! At the end of a YEAR you should have invested 12* Amount being invested every month. If suddenly you have money, top up the SAME account.
View full article »
1) Paris Pasu http://wp.me/pc3rd-f
2) RPL METHODOLOGY TO LURE THE RETAIL INVESTOR http://wp.me/pc3rd-i
3) HDFC all set to buy CBOP http://wp.me/pc3rd-k
4) Typical spinoff situation http://wp.me/pc3rd-l
5) MUTUAL FUNDS SURVEY BY BUSINESSWORLD http://wp.me/pc3rd-m
6) INDIA : THE EMERGING GIANT a book by Arvind Panagariya’s http://wp.me/pc3rd-n
7) Process of passing the Budget http://wp.me/pc3rd-o
8) THE ECONOMIC SURVEY 2007-08 http://wp.me/pc3rd-p
9) Things Which appears First to me http://wp.me/pc3rd-q
10) ICICI overseas losses mount to $264m credit exposure…http://wp.me/pc3rd-v
11) CRITIQUE FOR THE BUDGET 2008-09 http://wp.me/pc3rd-z
12) WHAT TO READ IN AN OFFER DOCUMENT ?? http://wp.me/pc3rd-A
13) Sensex down 27.5% ..just in 2 months time frame http://wp.me/pc3rd-B
14) YET AGAIN! FED CUT RATE BY 0.75%, Mayhem in markets http://wp.me/pc3rd-C
15) CAT Bonds and CAT Swaps http://wp.me/pc3rd-D
The last series was ended with http://wp.me/pc3rd-cX
- The main difference between government bailouts and smoking is that in some rare cases the statement “This is my last cigarette “holds true
- The difference between banks and Mafia: banks have better legal regulatory expertise, but Mafia understands the public opinion. Or you can say”Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world”
- When a woman says about a man that he is intelligent, she often means handsome; when a man says about a woman that she is dumb, he always means attractive.
- When some one starts a sentence with “SIMPLY” you should expect to hear something is very complicated.
- Half the people lie with their lips; the other half with their tears.
- Technology is at its best when it is invisible
- Those who do not think that employment is systemic slavery are either blind or employed
- It’s a good practice to always apologize, except when you have done something wrong
- To be completely cured of newspaper, spend a year reading the previous week’s newspaper
- The most painful moment are not those we spend with uninteresting people, rather they are those spent with uninteresting people trying hard to be interesting.