With equities, start in a small way
August 26, 2015
It’s important to be patient and committed for the long term Do the due diligence before investing in a stock and talk to people who understand equities better, urges Vikaas Sachdeva, CEO, Edelweiss Asset Management, in a chat with Business Line. When did you start investing? I used to read a lot about finance and that was when I realized that I was passionate about equities. I started investing in equities through IPOs when I was 20 years old. I used to save all the money I earned by taking tuition to do this.My first investment was in the IPO of Arvind Mills. Investing in IPOs then was very similar to a lottery. Thousands of people used to apply and
More »
Should you invest abroad?
August 26, 2015
Making investments abroad only to reduce market risk may not be worthwhile It is common to spread your investments across equity, bonds and real estate. But diversifying investments across geographies isn’t. In this article, we explore the relevance of global investments and when it would be appropriate to invest globally. Global investments You invest to achieve your life goals. Earning handsome returns on your investments is a means to achieving that goal. In a goal-based portfolio framework, each goal is considered a liability. For instance, if one of your life goals is to accumulate Rs. 1.5 crore in eight years to meet your daughter’s college education, your liability is Rs. 1.5 crore eight years hence. Matching the currency of your
More »
NPS gets cracking
August 10, 2015
You can now withdraw from your NPS corpus. But there are strings attached You can now withdraw from your NPS corpus. But there are strings attached. A big grouse you would have had with the retirement product — national pension system (NPS) — has recently been addressed. Now, early withdrawal from the scheme has been made a bit simpler by the regulator. Just as with the employee provident fund, where you are allowed to withdraw from your corpus for certain pressing reasons, the NPS too now allows you to take a portion of your amount out if you are in need. There has also been a modification to provide flexibility in withdrawing the corpus after retirement, with a provision to
More »
Regulator seeks details on non-regulated pension funds
August 7, 2015
The Pension Fund Regulatory & Development Authority is collecting information on various superannuation funds that are not regulated. According to BS Bhandari, Member, PFRDA, the idea is to bring them under the regulatory ambit while ensuring protection for subscribers. The PFRDA currently regulates the National Pension System and the newly launched Atal Pension Yojana. “The pension landscape in the country is varied…There are superannuation funds that are at present not regulated by any regulator. These seek tax exemption from EPFO or tax concession from the CBDT. Now we are trying to see whether there is adequate regulatory framework for protection of subscribers’ interest. We have written to some of the entities and companies and are collecting information on this
More »
Gold bonds coming soon
August 7, 2015
The Centre has released a draft paper on the sovereign gold bond scheme mentioned in the Budget. India imports about 300 tonnes of gold in coin form every year. As this is assumed to be investment demand, the government wants to replace this by offering gold bonds for investment purposes, with a sovereign guarantee. These bonds offer a better alternative to coins. You need not worry about safekeeping your gold or incur fund management charges, as you do for gold ETFs. According to the draft paper, gold bonds will be issued for tenures of five to seven years, in denominations of 2, 5 and 10 gram. The bond will be priced at the prevailing market price for gold. At the
More »
