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Showing posts from January, 2011


I got this message from one of my bank and thought of sharing with you all. As per Reserve Bank of India guidelines with effect from 1st January 2011, banks will solely rely on the account number details (name of the beneficiary’s bank and the branch, IFSC code number of the beneficiary’s branch, account type and account number) provided by the remitter for the purpose of affording credit in the RTGS/NEFT/NECS/ECS credit products. Name and account number information of the beneficiary will not be matched for affording credit. Responsibility to provide correct beneficiary account number details rests solely with the remitter. Hence customers are requested to furnish the correct account number details of beneficiary in the remittance instructions/Challans and through the online / internet delivery channel. Bank shall not be held liable for wrong credit because of incorrect account number details of beneficiary, furnished by the remitter in the application form/Challan or through the o

What is MIP(monthly income plans) Mutual Funds?

An MIP, as the name suggests, provides investors with a monthly income. Well, almost.   MIP is similar to your bank deposit with a monthly interest option, but unlike a fixed deposit where interest rate is known before you invest and the capital is repaid to you when you close it, neither the returns nor the capital is guaranteed in an MIP.   MIPs are typically suitable for investors who want to largely play it safe. They are for conservative investors who might be investing for the first time and are eyeing marginal exposure to the equity market.  These investors don't mind taking a little risk in order to increase the potential returns that pure income/debt funds or fixed instruments will provide. Also, MIPs are better for investors who are nearing retirement, do not have any other substantial source of regular income and do not mind a marginal additional equity risk.  In MIPs, typically a large portion (75-100 %) of the fund is invested in debt and money market instru

A Mutual Fund Portfolio for every investor

Age, many believe, is crucial to investing. Logically, the younger you are, the greater must be the equity exposure. One’s goals,investment horizon and risk tolerance should also be the determining factors. So there is no blanket rule. Given here are five different portfolios targeted at various profiles. Check to see which one suits you most. Consider these as guidelines to help fine tune your portfolio. AGGRESSIVE GROWTH This portfolio is meant for you: If wealth creation is your agenda If young and starting a career The riskiest portfolio of all, it has the capability to generate high returns. Your aim must be to build wealth. Age is on your side and you have almostzero financial liabilities - no dependents or loans to serve. Money saved in these years of your life will contribute the most to your overall wealth. GROWTH This portfolio is meant for you if you: Want to diversify your assets and already have an investment base Are fairly young or just married

Look beyond residential investment options

Everytime, I speak to an average property investor looking for investment opportunities, nine out of 10 chances are that he or she is in the market looking for residential options. Either it is a second home with scope for appreciation or it is an apartment with potential to rent. Sometimes it is just the neighbour’s flat two floors below!   For some of these investors, this preference for residential property may be part of a well-thought out investment strategy but for most it just happens to be the default option.   Why’s that? Largely because we all are comfortable dealing with residential real estate as an asset class. Typically , anyone looking to invest in another property would already own their present home and hence buying an investment with similar physical and commercial characteristics is just so much easier to deal with.   It is a fact that buying an office space or a retail store would not even cross the minds of most such investors. In fact, why even bother?   Well, th