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Author Archive: Annapurna

Preparing yourself financially for a job loss


 

 

Even as I write this, India’s job market is going through one of the worst crises ever. Two of the largest sectors – finance and IT which employ the majority of India’s workforce are experiencing a major slowdown. A leading IT company was in the news recently for laying off as many as 1000 employees in the tech capital of Bangalore without any notice.

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Avoiding money conflicts in your relationships


“ Money may not buy love, but fighting about it will bankrupt your relationship”

This is a quote from an unknown author, but very apt in the current scenario.

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Product Review- Double My Money scheme by DHFL Fixed Deposit


Dewan Housing Finance Limited (DHFL) has launched a fixed deposit scheme  which enables the customer to double their investment in a timeframe ranging from 80 months to 86 months depending upon the client category and the amount to be invested as per the table below –

Deposit Amount

 

General Category

Deposit doubles in

Senior citizens, Shareholders and loan holders

Deposit doubles in

 

 Less than Rs. 25 lac.

Rate of Interest (% p.a.)

10.00%

  86 months

10.50%

82 

Annual Yield

14.13%

14.81%

months

Deposit Rs. 25 lac & above

Rate of interest (% p.a.)

10.25%

84 months

10.75%

80 

Annual Yield

14.47%

15.15%

months

This is a cumulative interest scheme with half yearly compounding of interest. The minimum amount required to be deposited is Rs. 10,000/-

About the company

Dewan Housing Finance limited is one of the largest housing finance companies in the country and has been in operation for 29 years now. DHFL fixed deposits are rated AA+ by CARE and FAAA by Brickworks, which makes it reasonably safe for investing. Apart from this new scheme, the company offers regular fixed deposits (DHFL Aashray Plus) of tenures ranging from 1 year to 5 years.

About the scheme

The scheme works like any other fixed deposit with standard features, the only difference being the longer tenure which gives the investor the benefit of compounding and an attractive annual yield. There are other fixed deposits rated as investment grade like Shriram Transport and Mahindra and Mahindra which offer similar rates of interest per annum. However the maximum period for which one can stay invested in these is 5 years. The scheme suffers from the advantages (higher interest rate than bank FDs, flexibility) and disadvantages (unsecured/risk of default, no deposit insurance) associated with company FDs.

Investors looking to invest in fixed income schemes for a longer term can consider these.

DISCLAIMER : All the views expressed here are just for informative purposes and do not constitute or indicate any kind of investment recommendation.

How the impending Fed taper could affect your investments


                                                                      

 

The whole world is waiting with bated breath for the Federal Reserve (Fed) to announce its next move today on reduction in its bond buying program or the much hyped and dreaded Fed taper, as it has come to be commonly known among the investing community in the recent past. For those who are not aware, here is a brief explanation of what the term “Fed taper” actually means.

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Are mutual fund colour code labels a true indicator of risk?


 

Stacked

 

SEBI has initiated the system of colour coding/ product labeling for mutual fund schemes, wherein the mutual fund application forms, brochures and all advertisements in newspapers and magazines will have a product label of a specific colour to indicate the level of risk associated with the investment. This came into effect from 1 July 2013 and will help investors understand the risk profile of the fund before considering investing.  The MFs have been divided in to three broad categories and assigned specific colours-

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Check these things before buying a credit card


Credit card

Every time I visit the local supermarket/hypermarket to buy the monthly grocery supplies, there are a few credit card agents waiting at the exit who promptly approach me and check how much my bill was. And if it happens to be a reasonable sum, they are quick to offer an on the spot credit card with minimum documentation and a lot of offers – free shopping vouchers at the supermarket, low interest rate, free balance transfer , high credit limit etc. And, you don’t really need to put a lot of effort except sign the form and produce whatever documents you are carrying at the moment. But before you succumb to the agents’ marketing skills and buy a card, understand and keep these things in mind-

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