Scams and corruption is nothing new in India, but 2010, will be remembered for scmas, which are coming after each day. It all started with CWG, Mr. Kalmadi was on the receving end. Adarsh society, and most famous 2G scams, which is probably the biggest scam in Indian politics till date. The new one which has broken the trust of many investors of LIC, comes from such financial institution which have earned a huge reputations among the investor.LIC, is probably the most trusted brand for insurance, and when name of CEO of such a brand comes under such scam, the reputation which LIC has build over many years, suffers a lot.
These are the issues which comses to lime light, because of some internal issues between Govt, or may be because of alert Media or some may be because of intellegence of CBI.
But these scams are hurting the reputation of India, weare amonget the fastest growing ecconomies inthe world in current date, but such things brings shame to us.
There are still many other small or bigger scams which have still not comes in lime lght, but I am sure they are going to come up over the period of time, sooner or later.
Hall of Shame:
Those arrested by the CBI include Ramachandran Nair, LIC Housing Finance CEO; Naresh K Chopra, Secretary (Investment) of LIC (Mumbai); R N Tayal, General Manager of Bank of India (Mumbai); Maninder Singh Johar, Director (Chartered Accountant) of Central Bank of India (Delhi); Venkoba Gujjal, Deputy General Manager of Punjab National Bank (Delhi) and Rajesh Sharma, CMD of Mumbai-based NBFC Money Matters, with his staff members Suresh Gattani and Sanjay Sharma
Monday, November 29, 2010
Wednesday, November 24, 2010
Investing in Fixed Deposits
Fixed Deposits, in India is probably the most common investment avenue for Investors. Markets are moving up, and in a scenario where Stock, Mutual Fund, IPO’s Investments can give you more return most people are still comfortable with their Fixed Deposits, where the return is not going to be more than 8%, most cases. The reason why, Fixed Deposits (FDs) are most common investments, is because they are conventional for domestic investors, especially for the investors in rural areas. More important thing about Fixed Deposits is they are risk free investments. But there are also some fundamental concerns in FDs also which an investor should look into while investing in Fixed Deposits.
1.Credit profile of a Fixed Deposit:
Credit profile of a Fixed Deposit investments, is an indicator of the degree of risk associated with Fixed Deposit in terms of repayment of the principal amount and interest payments. For example, an 'AAA/FAAA' rating is indicative of the highest level of safety. Typically, an FD with a higher rating would offer lower returns vis-a-vis an FD with a lower rating. The additional return in a lower rated FD is in effect a compensation for the higher risk borne. Investors would do well to decide on the quantum of risk they are willing to bear and then select an FD.
2. Rate of return
ROI is simply interest rate, on your Fixed Deposit investments. Generally most of the FD’s they don’t offer an interest rate of more than 8%, and even this interest rate will vary from bank to bank, on similar kind of Fixed Deposits. Investors will have to opt for different FD’s depending upon their interest and the one which gives them better returns on their investments, at a rating that suits them.
3. Interest payout options
Investors can generally choose between various interest payout options like monthly, quarterly, annually or on maturity. Ideally, the investor's need for liquidity should be used to determine which interest payout option is chosen. Selecting the interest payout 'on maturity' option can help investors benefit from the compounding effect and clock a higher return.
4. Tenure
The FD's tenure is the period over which the investor stays invested. By and large, a longer tenure translates into a higher rate of return. Investors must match their investment tenure with their needs/objectives. For example, if the investor has an expense to meet 3 years hence, he can invest an appropriate amount in a 3-Yr FD to ensure that the maturity proceeds match his future obligation. On the same lines, if there is a 5-Yr investment tenure, then investments can be considered in tax-saving FDs; this will help the investor simultaneously benefit from tax sops under Section 80C.
5. Premature withdrawal
An often-ignored aspect of FD investing is the premature withdrawal clause. Investors opting for a premature withdrawal can be penalised by either being given a lower rate of return or zero interest depending on the terms and conditions of the FD. Investors would do well to acquaint themselves with the implications of a premature withdrawal before making an investment.
Credit profile of a Fixed Deposit investments, is an indicator of the degree of risk associated with Fixed Deposit in terms of repayment of the principal amount and interest payments. For example, an 'AAA/FAAA' rating is indicative of the highest level of safety. Typically, an FD with a higher rating would offer lower returns vis-a-vis an FD with a lower rating. The additional return in a lower rated FD is in effect a compensation for the higher risk borne. Investors would do well to decide on the quantum of risk they are willing to bear and then select an FD.
2. Rate of return
ROI is simply interest rate, on your Fixed Deposit investments. Generally most of the FD’s they don’t offer an interest rate of more than 8%, and even this interest rate will vary from bank to bank, on similar kind of Fixed Deposits. Investors will have to opt for different FD’s depending upon their interest and the one which gives them better returns on their investments, at a rating that suits them.
3. Interest payout options
Investors can generally choose between various interest payout options like monthly, quarterly, annually or on maturity. Ideally, the investor's need for liquidity should be used to determine which interest payout option is chosen. Selecting the interest payout 'on maturity' option can help investors benefit from the compounding effect and clock a higher return.
4. Tenure
The FD's tenure is the period over which the investor stays invested. By and large, a longer tenure translates into a higher rate of return. Investors must match their investment tenure with their needs/objectives. For example, if the investor has an expense to meet 3 years hence, he can invest an appropriate amount in a 3-Yr FD to ensure that the maturity proceeds match his future obligation. On the same lines, if there is a 5-Yr investment tenure, then investments can be considered in tax-saving FDs; this will help the investor simultaneously benefit from tax sops under Section 80C.
5. Premature withdrawal
An often-ignored aspect of FD investing is the premature withdrawal clause. Investors opting for a premature withdrawal can be penalised by either being given a lower rate of return or zero interest depending on the terms and conditions of the FD. Investors would do well to acquaint themselves with the implications of a premature withdrawal before making an investment.
Tuesday, November 23, 2010
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Earnning Money is not a big deal, but the real big deal is How you can get most out of Your Money, through your Investments, and on who gets most out his valued money is a real smart Investor.
Money Chats is going to be a platform, which will help you in becoming a real smart Investors.
We will be looking forward for your feedback on our Views through Different Posts, so feel free to comment on our Post, we will defilitly consider your most valued feedbacks, to make this platform better, over the period of time.
Money Chats
Money Chat will keep you updated on new Investments schemes, expert opinions on investing your valued money in different Schemes, Keeping an eye on Market trends.
Earnning Money is not a big deal, but the real big deal is How you can get most out of Your Money, through your Investments, and on who gets most out his valued money is a real smart Investor.
Money Chats is going to be a platform, which will help you in becoming a real smart Investors.
We will be looking forward for your feedback on our Views through Different Posts, so feel free to comment on our Post, we will defilitly consider your most valued feedbacks, to make this platform better, over the period of time.
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