Wednesday, April 16, 2014

OPD covers are bad for your financial health

opd-insurance-cover
Say No to OPD Insurance
A typical health insurance policy, as you all know, provides cover against medical problems that normally require at least 24 hours of hospitalization. 

It doesn't provide any relief against OPD (Out Patient Department) treatments. It also excludes dental treatment, diagnostic tests, routine visits to a doctor, pharmacy bills, eye glasses and such other minor illnesses / injuries. 

Well, the issues may be minor, but the expenses certainly aren't. A family has to shell out decent amount of money every year on many day-to-day illnesses.

Tuesday, April 15, 2014

Don't be fooled by Bonus Shares

bonus-shares
Bonus shares are nothing extra
I am sure there isn't a person in this world who wouldn't love to get something for free. As such bonus shares — shares that are given by a company to its existing shareholders totally free of cost — evoke intense joy and euphoria.

Naturally, investors are always on the look out for 'bonus candidates' i.e. companies that are likely to declare bonus in the near future.

Unfortunately, however, bonus shares are a myth like many other myths floating around in the universe of personal finance. (Some more tricks to fool you at 'To Protect Your Money, Don't Read Financial Ads'.)

Friday, April 11, 2014

SCORES at your service

Sebi-complaint-redress-system-scores
SEBI's SCORES system
If you have any complaint against a company listed on the stock exchange or against any of the intermediaries registered with SEBI (e.g. Brokers, Registrars and Transfer Agents, Stock Exchanges, Mutual Funds, Credit Rating Agencies, Depositories and its participants, Merchant Bankers, etc.), you have a very convenient online system to seek resolution.

SCORES or Sebi COmplaints REdress System (http://scores.gov.in/) is a web-based centralized grievance redress system initiated by SEBI that enables you to lodge your complaint and track its status 24 x 7. 

Thursday, April 10, 2014

Form 15H and 15G Decoded

form=15g-15h-tds-bank-interest
TDS on Bank Interest
Typically, you can have two types of accounts with a bank viz. a Savings Account and a Fixed Deposit. Accordingly, you earn two kinds of interest income viz. savings account interest and fixed deposit interest.

Many depositors make the mistake of treating them as the same. However, contrary to common misconception, under the income tax laws the two have to be treated differently.

Wednesday, April 9, 2014

Top 10 ways to turn your Net Worth positive and multiply it

positive-net-worth
Positive Net Worth
Few weeks back I had asked 'Is your Net Worth positive or negative?'. This, by the way, is the first step towards becoming rich and prosperous. It reveals your true financial position and identifies the critical areas that you must address to become a crorepati without banking on Shri Amitabh Bachchan's Kaun Banega Crorepati.

There is no big secret or a hidden formula involved here and I am sure that many of you would have already spotted the chinks in your financial armour.

Monday, April 7, 2014

Nifty at 12,000 on Jan 1, 2019?

nifty-after-five-years
Nifty Up, Down or Sideways?
In my previous blog post 'Should I sell as the Sensex / Nifty is at an "all-time high"?', I had argued that 
(a) Based on fact that the current market PE levels are around the historic average PE rating enjoyed by the Indian stock market over the last 15 years, equity market today is fairly valued
(b) India's GDP growth rate at 4.5-5% is probably at its lowest and any further downside may be limited.

Accordingly, if India is able to sort out its economic mess and move forward, equity markets today offer an excellent opportunity. 

Friday, April 4, 2014

Should I sell as the Sensex / Nifty is at an "all-time high"?

buy-sell-or-hold-my-stocks
Buy, Sell or Hold?
After many years the stock market is in the news for the right reasons... it is scaling new peaks.

The historic bull run of 2004-2007 ended in Jan 2008. First, we were witness to the catastrophic crash in the Sensex from 21,000 levels to below 9000. If this was not devastating enough, the market yo-yoed in a narrow range for six 'looonnng' years (after a reasonable recovery to 16,000-18,000 levels)... a fairly long bear phase indeed. 

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