Monthly Archives: July, 2013

Taking a “calculated risk” on your investment


English: Risk-Return Indifference Curves



“Is there any place I can invest and get a minimum fixed 12 % return per annum?”

As a financial planner, I often get such queries from people – friends/acquaintances/clients. There are others who read about some new public offer for investment plans or ULIPs  that offer attractive bonuses/ guaranteed return etc and want to check if their claims are authentic.  If someone were to tell them that there are indeed such schemes, I am sure the majority of them would invest.  And why not? What can be better than a fixed return with no risk of losing your capital?

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The gold crash- what should be your action plan?

Gold Bar and Investment Jewelry



Gold is perceived to be an asset class which is dependable, acts as a hedge to the portfolio and whose value appreciates steadily over time to give the investor decent stable returns. This was supported by the historical data- Gold prices per 10 gms steadily rose from  Rs. 1800 in 1981, Rs. 2500 in 1984, Rs. 3200 in 1990, Rs. 5000 in 1996, Rs.7000 in 2005, Rs. 12000 in 2008, Rs, 18000 in 2010, and Rs 26000 in 2011 before touching an all time high of over Rs. 32000 in November 2012.

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Various styles of equity fund management

A long time and regular mutual fund investor would be well aware of the risks and rewards associated with investing in equity mutual funds and the various types of equity mutual funds to invest in like large cap, mid cap, sectoral etc. depending upon the funds’ investment philosophy.

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How is an NCD different from a company FD?

Shriram Transport Finance is coming out with an NCD issue next week, which is the latest in the series of the many NCD issues it has launched till date. Now, the same company – Shriram Transport Finance Company Ltd also offers public fixed deposits for subscription with interest rates similar to those of the NCDs. This post is in response to a query by one of my clients who already has invested in the company’s FDs and wanted to know the basic difference between an NCD and an FD.

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Safeguarding your assets

financial portfolio review

We live in turbulent times – a volatile political and economic and environment, investment related scams and scandals, natural calamities and catastrophes and increased stress, lifestyle and personal issues. In such a scenario where everything is uncertain and unpredictable, the importance of protecting your assets cannot be over emphasized.

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Dealing with a salary cut


Piggy Bank with Coins



“Air India employees face salary cut from April 2013”

“Infosys recasts staffers’ salary structure, cuts variable”

“Cadburys India cuts the pay of its managing director and other senior executives”

Such news has been making headlines of newspapers and magazines in 2013. The job market was almost stagnant last year in 2012 with very few fresh recruitments and negligible salary hikes even for top performers, apart from the pay cuts due to cost cutting measures by organizations because of the economic slowdown. Though the situation seems to have improved this year, employers are still adopting a very conservative and cautious approach when it comes to paying bonuses and increments.

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