Skip to main content

Investment Planning – Safe, Sound and Secure

The stock market is on a down hilll trek & the sentiment is gloomy. You may be looking for better options, but there are some segments you should steer clear from at the moment
AVOIDING bad investments is as important as finding good ones. Post market crash, portfolio’s worth toady is not even a third of investments. With some genuine advise, people could have saved from investing at a wrong time. To make sure that you don’t fall into the same trap, we prepare a list of five segments you should refrain from investing in right now.

REALTY & TECH STOCKS

Stock market is a place where people with experience get money and people with money get experience. Words of wisdom, undoubtedly. But what should be your approach when it comes to where not to invest on Dalal Street? If analysts are to be believed, realty and technology sector stocks should be treated with extreme caution. The key to investing in the stock market is to avoid relying on hearsay. Given the volatility in the rupee-dollar exchange rate, investing in tech companies is a little risky. While the sub-prime crisis in the US is not directly related to performance of the Indian tech companies.

The other sector, according to analysts, where you should avoid exposure in the capital markets is realty. With execution costs of projects escalating, analysts believe that the capital intensive realty market needs more money and capital is costly at the moment. There is even a possibility of small builders folding up, which can further hurt sentiments in the sector. While this may be the right time to pick up some good value stocks, you should keep away from penny and small-cap stocks.

REAL ESTATE

The dream to own your own house is always alluring. More so now, given the slight dip in realty prices. But financial experts believe that the right time is yet to come. As a result of the liquidity crunch, further devaluation is expected in six months. Moreover, with interest rates headed north in the medium term, distress sales are expected to happen very soon. If you can be a little patient with your decision and wait for a while, the property that you are eyeing today, may get more affordable.

CRUDE OIL

Given the volatility and politics around crude prices, it is advisable that you refrain from speculative trade in it in the futures market. It is a very high risk game in today’s scenario. And with crude oil prices cracking up by almost 10%, it looks that they are headed for an intermediate downtrend. This could mean that you may end up dispensing large sums of money if you had built short positions in the futures market.

FIXED DEPOSITS

Fixed deposits (FDs) is a preferred investment vehicle for investors, especially in times when gloom descends over the equity markets. Experts, however, feel otherwise. Instead of parking funds in an FD, it is better for you to invest in Fixed Maturity Plans (FMPs), which not only guarantee fixed returns but also are highly tax efficient in comparison to fixed deposits Majority of the asset management companies (AMCs) in India offer such plans in the market.

With inflation loooking up and FD returns chargeable to tax when disbursed, forget about beating inflation your real returns are negative. This means that funds are actually eroding. Another option, feel analysts, is invest your earnings in floating rate funds. These funds are currently offering 7% returns. The returns, however, are likely to go up as they are inversely related to the stock market. Also, it is easier to withdraw money from a floating rate fund and switch to another alternative if interest rates come down.

GOLD

Gold may appear as an attractive investment bet in the current market conditions, but analysts have a different opinion. They caution that you should avoid adding the yellow metal to your portfolio. Reason: gold is positively correlated to crude oil prices, which means that any fall in crude oil prices will result in gold prices also heading south. Conservative investors, however, can still invest in Gold Exchange Traded Funds (ETFs). With interest rates going up, investing in Gold ETFs over a longer period is a more sensible decision than investing in gold itself.

Popular posts from this blog

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Time-tested methods to pick a good mutual fund

Proper understanding of a fund is important as it enables investors to keep a tab on its actual performance THERE are various types of mutual funds and one way of segregating them is on the basis of active or passive management. Th is makes the understanding of the nature of the fund easy for a lot of investors, as it shows the basis on which investment decisions will be made. Some funds also have a mixture of both active and passive management. Su ch funds need to be considered carefully if they are to be selected as an investment avenue. Here is a look at the manner in which such funds operate and its impact on decision-making. Mixture : The selection of the portfolio of an equity oriented mutual fund can be done in an active manner. The fund manager can take the decision about which stocks should be bought and sold by the fund. On the other hand, there can be a passive fund where the decision making is not in the hands of the fund manager as a specific index is followed for...

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...

Reliance Health Total

  Reliance Life Insurance has launched Reliance Health Total, a non-linked, non-participating and non-variable health insurance plan . It provides a fixed benefit cover for hospitalisation, critical illnesses and surgeries. The customer can also make a claim for over-the-counter health-related expenses. This is a regular-pay, five-year plan that can be renewed till the age of 99. The plan comes with two options: customers can choose a higher medical reimbursement benefit or a higher sum insured. 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 - I...
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