Prajna Capital - An Investment Guide

JAPAN’S Nomura asset management company(AMC) has picked up a 35% strategic stake in LIC Mutual Fund for Rs 308 crore, valuing the seventh largest fund house at Rs 800 crore. This valuation amounts to less than 2.5% of the total assets under management of Rs 32,415 crore of LIC MF Asset Management Company ( AMC ) as on June 2009. The sale of 35% stake involves both fresh issue of equity and secondary sale. Following this agreement, LIC will hold 45%, and LIC Housing Finance 20%. Nomura will hold the balance 35% stake in the AMC. As a part of the deal, Nomura will bring in expertise in equity management — an area where LIC MF has lagged behind. “India is a very big market and there is a huge value in finding a local partner.By building on LIC’s outstanding brand image and customer network, we will be able to apply best practices to our combined business through our extensive experience as a global asset manager”, said Takumi Shibata,Deputy President and COO, Nomura Holdings. ...

Ready to take a home loan? The bank may recommend a particular EMI scheme as the best, but one should look at the loan agreement for details before signing on the dotted lines Bear in mind, very little is known to most people about the different EMI repayment options beyond what the banks recommend to you when you take a home loan. Banks and home financing companies such as SBI, HDFC, HSBC, LIC Housing Finance and others may have one or many options that they may recommend as the right scheme for you. The criteria taken into account by the loan-giving agency include age, income, saving history, educational qualifications, job profile, number of dependants, type of property (including the builder) and so on. Here’s what you need to know about different EMI options available in case you are planning to take one. First things first. The simple ground rule for all EMI options is that the longer the term of your loan, the smaller will be your EMI. The EMI also has two components —...

A reverse mortgage is a product that’s structured around the needs of senior citizens for regular income. What’s more, the legal heirs can repay the loan and retain the property. You may want to know what a reverse mortgage is and how it can help you remain independent. Here’re the major points. WHAT ARE THEY? Reverse mortgages are products that have been structured around the need of senior citizens for a regular income. Instead of approaching a bank for a loan, which you have to pay it back as installments, a reverse mortgage allows you to mortgage your house to a bank or a housing finance company, which pays you a regular amount at regular intervals. This amount can be used for fulfilling your needs excluding any speculative or trading activity. Some of the banks/housing finance companies which provide reverse mortgage services include LIC Housing Finance, Dewan Housing Finance, Punjab National Bank, State Bank of India and Axis Bank. ELIGIBILITY CRITERIA To avail of a reverse mo...

Often under-rated and out of radar, deep value stocks can do wonders to your equity portfolio. THEY are believed to carry hidden treasure on Dalal Street. While investors call them the low-lying unpolished gems of the stock market, brokers say there are big bucks to be made if you can identify these stocks early. No prizes for guessing this, we are talking about deep value stocks which can do wonders to one’s portfolio when market re-assesses them. According to analysts, a deep value stock can be defined as something which is low priced in relation to the margin of safety the stock provides, to limit losses when a mistake is made. Lets get some insight into how to identify these stocks, what should be your ideal portfolio allocation and reasons behind their low valuations in the market. SLEEPING GIANTS They are like any other stock traded on the exchange, but there is no hypothetical understanding of them. A section of traders on the Bombay Stock Exchange even call these stocks as ‘ s...