Don’t lose sight of your goals
October 5, 2015
Praveen Kumar V is a Bangalore-based independent financial advisor. He observes that both the 2000 and 2008 crashes taught investors the importance of diversification. “In 2000, there was a frenzy in the market for technology stocks, many New Fund Offers in the technology space were launched. Then, in the selling that happened, all the money was sunk.” In 2007, infrastructure was in demand and people got stuck to those funds in 2008-09. So do clients tend to panic and rush to redeem when the market falls? “I have observed that this tendency is higher with clients who have a smaller exposure to markets when compared with HNI clients,” says Praveen. What should people do to weather such volatility? “My advice
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Don’t borrow and trade
October 5, 2015
Ashish KR Joshi from Valsad district, located on the Gujarat-Maharashtra border is a private wealth manager. He has closely observed all the three major crashes — 1992, 2000 and 2008. “The 1992 crash was spurred by excessive leverage; people even pledged their homes to play in stocks. Greed was at its peak then,” he recounts. “They were not ready to listen! In the end, they lost money, faith in the system and many tried to end their lives also! Even today I see the aftershocks of 1992.” Ashish is well placed to comment on the 1992 crash since he hails from a region where many are passionate about the stock market. He thinks that both in 1992 as well as
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Coping with market volatility
October 5, 2015
Collective investment schemes Collective investment schemes: All you wanted to know about…Calls Have you ever been tempted by easy instalment schemes to buy plots of land? Or by the prospect of high returns from growing teak, tending to apple orchards or rearing goats and emus? If you have, you should be warned that such schemes are illegal unless they have registered as collective investment schemes (CIS) with market regulator SEBI. Only last week, SEBI slapped a mammoth fine of Rs. 7,269 crore on PACL (formerly Pearl Agrotech) and its directors for running an illegal CIS which promised high returns from redeveloping barren plots into agricultural land. What is it? According to the Securities Laws (Amendment) Act 2014, a CIS is
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Fund Basics: Know about unified verification system
October 5, 2015
By registering with a KYC registration agency, you can make changes at a single point KYC is an acronym for “Know your Client,” a term commonly used for the client identification process. SEBI has prescribed certain requirements relating to KYC norms for financial institutions and financial intermediaries, including mutual funds. This is in the form of verification of identity and address, obtaining information of financial status, occupation and such other demographic information. With effect from January 2012, SEBI has set out revised KYC norms to make the process uniform across the securities market and introduced a common KYC application form for all SEBI-registered intermediaries, viz. mutual funds, portfolio managers, depository participants, and stock brokers, among others. Investors who have not
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Income Tax refunds to be sent to taxpayers in 7-10 days
October 5, 2015
Dept received 2.06 crore returns on its e-filing portal this year, against 1.63 crore filed last year In what could be good news for lakhs of taxpayers in India, the Income Tax Department will now process and send refunds in a short time of 7-10 days, as its latest technology upgrade of electronic and Aadhaar-based ITR verification has begun on a successful note. The department’s latest initiative to verify an Income Tax Return (ITR) by Aadhaar or other bank database, has received positive response from ITR filers because of which the taxman, for Assessment Year 2015-16, was able to process and send refunds to bank accounts of eligible taxpayers in less than 15 days. Customer-friendly system “Gone are the days
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