Skip to main content

Are AIG MF investors safe?

AIG has borrowed nearly $150 bn from US Government ans its seeking more now. But hte total market cap og the company itself is $ 1 bn. Those of you worried about the state of AIG Mutual Fund can rest now.

The U.S. company was on the verge of declaring bankruptcy and needed up to $100 billion to stay afloat. Naturally, its shares plunged on Wall Street amid fears of its collapse.

But the government has come to the rescue of the American International Group (AIG).

Under the bailout deal, the U.S. Federal Reserve will lend AIG up to $85 billion to guarantee its short-term liquidity. But there will be a price for this lending hand. In return, the U.S. Government will take an 80% stake in the company with the right to veto the payment of dividends to shareholders.

This will save the company from bankruptcy. But it will need to sell assets to repay the loan, which will be due in 2 years' time.

An insurance company takes premium from people who've bought insurance and instead of investing it in safe instruments like bonds, starts guaranteeing CDS and other toxic instruments. We are in a situation where losses are being socialized and profits privatized.

Bailout may not be the right word. Bridge loan is the proper word. If we look at AIG's tentacles, they reach around the world. They touch all kinds of sectors and companies around the world. If it was left to fail, the effect of financial markets would be bad.

Meanwhile sources say, Tata AIG Life and Tata AIG General, AIG's largest business operations in India, have more than required solvency margins in Indian insurance JVs. Tata AIG insurance JVs together has nearly Rs 1500 crores in capital. Tata AIG policyholders & employees are safe & secure. Solvency in life insurance at 305%; general insurance at 176%. IRDA guidelines requires insurance business maintain 150% solvency margins. Tata AIG policyholders & employees are safe & secure. Insurance business fully funded as of now; no risk to business & policyholders. India insurance JV's employ nearly 9000 employees & there is no risk to staff. AIG India watching US situation on other businesses like PE, Asset management, Cons finance. AIG aircraft leasing business has 19-20 leased aircrafts with indian operations. AIG systems solutions, its captive bpo employs nearly 1100 employees. All AIG businesses in India continue to grow at a robust rate.

Below is the list of stocks held by Tata AIG in Indian companies :

  • Elecon Engg.Co
  • Action Construct
  • EMCO
  • McNally Bharat
  • Tata Motors
  • Tata Steel
  • Voltas
  • Zee News

Below is the list of stocks held by AIG Global Investment Corporation:

  • AIA Engg
  • Nucleus Software
  • Sun Pharma
  • Federal Bank
  • Mindtree
  • Ipca Labs
  • Bharati Shipyard
  • Gayatri Projects

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

SBI Magnum Taxgain

Grown 37 times in 23 years- SBI Magnum Taxgain Scheme   Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGet Rich on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300  

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

Mutual Fund Riskometer

Mutual Fund Riskometer   Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Down
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now