Wishing all my readers a very happy and prosperous new year . It was a long 2016 year end vacation .
Here are some of the bad financial habits that one need to give up in 2017 by saying No :
- Don’t carry a credit card balance.
- Don’t invest in high-turnover stock funds.
- Don’t trust brokers when their lips are moving.
- Don’t forget that a high potential return means high risk.
- Don’t buy a home if you think you’ll move in the next five years.
- Don’t invest 100% in stocks — or 100% in bonds.
- Don’t die without a will.
- Don’t retire with debt.
- Don’t buy initial public stock offerings. Continue reading “Just Say No – 2017 Resolutions”
The IPO season is back in the Indian market; Yesterday Thyrocare got listed on Indian bourses with more than 50% of premium. Ujjivan Financial Services will make the debut today, Parag milk foods owner of Go and Gowardhan brands of dairy products, is in the pipe line.
I have been always arguing the case Do IPO’s really make money for the investors? Yes/No
There is a proactive paper published in 2012 arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that Continue reading “Shall IPOs be abolished ?”
Yesterday I was going through some of the Indian newspapers and surprised to see some articles on Indian debt market, which is a very rare scenario where the Indian market is dominated by equities. May be it was more a tax saving investment as the equity market where more volatile and IPOs were flopped.
Whereas the developed world debt market dominates where the bond market, has experiences gains and losses in response to cyclical interest-rate, It’s like business cycle during which an economy expands, contracts and recovers could be termed as market cycle.
Before getting back to the Indian bond market let’s try to see the key components of Fixed Income securities, it’s the Credit quality, yield, and maturities are key components of fixed-income securities.
Continue reading “Fixed Income Investments in Indian Market”
There are so many products in this global financial market that sometimes a financial advisor feel more like a bouncer than anything else……..Sharing some of the pitches been made in the past and the on-going practices,
- Oil and Gas Limited partnerships. (If you being cut in on them, the wells are dry.)
- Principal protection funds. ( They are always come out after the market’s been killed and cap your upside on the recovery)
- Insurance broker selling asset management. (Does your hair – dresser also repair the roof on your house?)
- Stock broker selling guaranteed – return equity linked annuities. ( Yeah that’s end well) Continue reading “How Misselling is done -Investors Trap”
Last month SEBI bared DLF from tapping capital markets for three years in one of the watchdog’s toughest punishments to date.
The order was related to non-disclosures in its 2007 IPO documents. The order was passed against DLF’s six top executives for lapses in disclosures made at time of IPO in 2007.
In the same year on the 30th April 2007 SEBI decided to make grading of all IPOs mandatory. Grading makes additional information available for the investors, in the sense that it is supposedly an objective opinion of a credit rating agency arrived at after analyzing business and financial prospects, management quality and corporate governance practices etc of the issuer. Continue reading “IPO’s and the Grading Market”