Prajna Capital - An Investment Guide

5 points that matter while buying MF More often than not meritocracy of investments is often decided by the returns. Quite simply then a fund generating more returns than the other is considered better than the other. But this is just half the story. What most of us would appreciate is the level of risk that a fund has taken to generate this return? So what is really relevant is not just performance or returns. What matters therefore are Risk Adjusted Returns. The only caveat whilst using any risk-adjusted performance is the fact that their clairvoyance is decided by the past. Each of these measures uses past performance data and to that extent are not accurate indicators of the future. As an investor you just have to hope that the fund continues to be managed by the same set of principles in the future too. Following are the 5 Points: 1. STANDARD DEVIATION 2. BETA 3. R-SQUARED 4. ALPHA 5. SHARPE RATIO 1. STANDARD DEVIATION The most basic of all measures- Standard Deviation allows you ...

Missing the premium payment date does not mean you have to cancel your insurance policy. Check out its status with your agent and get it revived OPTING for the right insurance cover is like taking your first step towards financial planning. But if you want to keep this security cover intact then you need to be financially disciplined and make those timely payments towards the premium amount. Many times because of sheer negligence or unforeseen circumstances, you miss upon making the payments on time. And when you find those bills, reminders stacked in one corner of the house, you are not sure whether to make a call to the company and revive your policy or simply let it go. Well, if you have been deliberating the same, here is a lowdown on how you can revive your policy. THE PROCESS There is a misconception that once you miss your due date for paying premium, the insurance company cancels the policy. It is advisable that before you decide to forego your policy, you should check out with...

In the last few days, investors in the stock markets have seen it all. From the Sensex highs of 21,000 to the steep fall to 15,700 in and the complete U-turn the markets took to recover. An investor who was convinced that the bear market was on and sold off his holdings would be a poor, wise man today. Similarly, a person would waited for the markets to bottom out before buying stocks would have missed out the opportunity to buy stocks at lower valuations. Probably, the only investor who has benefited by the quick fall and subsequent rise of the markets is a systematic investment plan ( SIP ) investor. SIP is a simple, tried and tested strategy designed to help in investors' wealth creation in a disciplined manner over the long term. A disciplined approach to investing will provide you with these benefits: 1) Power of compounding 2) Makes market timing Irrelevant 3) Rupee cost Averaging 4) Convenience Power of compounding Many investors delay investment decision-making, as they ca...

PICK YOUR BATTLES CAREFULLY CEOs who sell and negotiate successfully know that sometimes even the most valiant fight may not be worth the potential loss it entails. They know it’s up to them to assign value to the campaign they decide to take on or decline — not outside forces like sales vice-presidents or prospective customers. In other words, good CEOs are more likely to ‘walk’ when they sense there will be no alternative to a bad deal. They don’t negotiate a deal just to say they’ve negotiated something. LEAVE NO LOOSE ENDS Once they take on a negotiating project — or any project, for that matter, — CEOs ensure everything on the ‘hot list’ gets taken care of. They can’t afford to leave any loose ends at a negotiating session, and they commit to following through on all their commitments. You’ll want to do the same. KNOW WHEN TO ASK, NOT JUST WHAT TO ASK FOR Successful CEOs know that you can’t reap what you don’t sow. Their actions always seem to be in accordance with the ‘ebb and...

A leader has to show Curiosity . He has to listen to people outside the ‘Yes, sir’ crowd. He has to read voraciously, because the world is a complicated place. A leader has to be Creative , go out on a limb, be willing to try something different. You know, think outside the box. Leadership is all about managing change — whether you’re leading a company or leading a country. Things change, and you get creative. You adapt. A leader has to Communicate . I’m not talking about running off at the mouth or spouting sound bites. I’m talking about facing reality and telling the truth. Communication has to start with telling the truth, even when it may be painful. A leader has to be a person of Character — knowing the difference between right and wrong and having the guts to do the right thing. Abraham Lincoln once said, ‘‘If you want to test a man’s character, give him power.” A leader must have Courage . Swagger isn’t courage. Tough talk isn’t courage. Courage in the twenty-first century does...

INFLUENCING LEADERSHIP has taken on new meaning and greater challenges in the last decades. Influencing is a critical skill that must be mastered simply because we work with a multitude of people. There is no right way, nor is there only one way to influence others. In organisational life, influence is a key skill. It helps earn co-operation from colleagues, ensures your voice is heard and makes you a better leader. Remember that the real skill is learning how to influence through commitment, loyalty and trust, rather than through mere compliance or, at worst, coercion. Know what you want: Start with the end in mind. You must clearly know what the end state is and what outcome you desire. Then identify the key stakeholders who you need to influence. Try to discover as much as you can about them and where they are coming from by asking open-ended questions that will encourage them to talk. Learn more about yourself: A heightened sense of selfawareness and the effect you have on other ...

3 Cs for growth: Character, Competence, Commitment SUCCESS stems, in part, from the values, wants and needs that are interwoven within individuals and an organisation, and the ways in which the individuals and the organisations resolve the many differences and conflicts that are an ongoing part of every organisation in these diverse pursuits. Of course, one must be able to attract and retain the “best and brightest” people into an organisation in order to succeed. But, this is just the beginning. Purposes, missions and goals that stimulate and encourage people and organisations too are essential. Within each of these areas, there are differences and conflicts. For example, just in the issue of goals with a group, there are at least four areas of potential conflict: • The personal goals of the individual within the group, • The goals of the individual for the group and its goals, • The goals of the group itself within the corporation, and • The goals of the group for the corporation an...