Friday, July 13, 2012
Invest in Silver, now?
Why you should invest in Silver now?
While everybody’s gushing about the returns gold has delivered over the past four years, it’s the yellow metal’s poorer cousin that has been winning the race. Silver prices have jumped from Rs 16,525 per kg in 2008 to Rs 75,020 per kg in 2011, a gain of 354%.
However, over the past few months Silver prices have dropped to a more affordable level of Rs 54,000 per kg. Does this mean the potential in silver is already exhausted?
"There is still some steam left in silver. Bullion is expected to go up, so silver prices too shall rise steadily in the medium to long term," says Jayant Manglik, president, retail distribution, Religare Broking.
What’s pushing the prices up?
Silver’s easy availability, diversified use and lower price relative to gold places it high in the list of industrial and investor preference. Silver is malleable, ductile, strong and can endure high temperatures, making it ideal to use in various industries, from electronics to pharma.
Over the past century, technological explosion has magnified the scale of its usage. Its demand is outpacing the supply and leading to large gaps, which is one of the reasons why silver prices have been zooming up. Since 2008, the price rise has been further propelled by the global economic uncertainty and the depreciation of the rupee due to the US economy outpacing the European Union.
Central banks and their governments across the globe have stopped selling their silver reserves in the world marketplace, thereby freezing the supply, which, has caused silver to become more scarce and valuable. When there is lack of confidence in fiat money and the financial system, silver can be a hedge against inflation.
During global turmoil, central bankers devalue their currency and the best way to escape this is to stick with gold and silver. Also, mining of the metal is expected to become more limited due to scarcity constraints in the future.
Silver is a precious metal and an industrial metal, and both sectors are dynamic and volatile in nature.
The smallest movement can cause large variations, so silver may incur moderate price fluctuations in the short run. However, the white metal mirrors gold and in the long run, gold prices may escalate, leading to a positive trickledown effect on silver prices.
"The Chinese economy is expected to bounce back from its downturn with an aim to increase industrial output, so its demand for silver would also shoot up," says Naveen Mathur, associate director, commodities and currencies, Angel Broking.
How to invest
If you want to invest in the white metal, here’s a look at the various ways you can do it.
Coins and bars: These can be bought from jewellery stores at prevailing market rates. Decorative coins involve making charges, though these are much lower than what jewellers charge for gold ornaments, but you will not be able to recoup the charges when you sell the coins. A problem is that if you make a sizeable investment, it may be difficult to find a big storage space to keep these secure.
E-silver: The uniformity in the price of silver across the nation and the success of E-gold encouraged the National Spot Exchange Limited (NSEL) to launch E-silver in April 2010. The silver is 99.9% pure and is available in small denominations of 100 gm and its multiples.
E-silver can be stored in your demat account so you don’t have to worry about finding a secure storage space. You can also opt for the SIP (systematic investment plan) route to invest in e-silver through the online trading platform of the NSEL or through a broker.
This will help you benefit from rupee cost averaging without having to track the markets regularly. Also, SIPs inculcate discipline that enables you to build wealth over time. Whenever you want to redeem your investment, the NSEL will provide the silver to you in physical form.
Silver futures: Trading in silver futures is similar to that for gold. Silver futures provide the advantage of leverage position. To avoid the hassles of delivery, you must offset the futures contract before the maturity date is reached.
US Silver ETFs and mining companies: Currently, silver exchange traded funds (ETFs) are not available in India. However, keen investors can put their money in silver ETFs that are available in the US. They can also buy stocks of silver mining companies that are listed on the Dow or Nasdaq.
Friday, July 6, 2012
How employers can help staff save tax beyond 80C
by VIVEK KARWA, CPFA., CFPCM , Financial Chronicle 5/7/2012
source: http://wrd.mydigitalfc.com/personal-finance/how-employers-can-help-staff-save-tax-beyond-80c-507
Indian tax laws allow an individual to invest up to Rs 1,00,000 in a list of investments that qualify under section 80C and help the taxpayer save taxes of up to 30 per cent if the person is in the highest slab along with the cess. The intent of the law is to force individuals to invest at least for the sake of saving tax, but, the main purpose is to create savings for future needs. India does not have social security schemes, hence, it becomes even more important for every individual to save. We are seeing a gradual shift from guaranteed benefits to a contributory benefits system for many public and private sector employees.
Employees leaving organisations prematurely bring liabilities to the company in form of compensations during accidents/death, and such premature exits from the workplace also causes great amount of financial stress to the employee and his family because income stops abruptly.
Companies invest heavily in training its employees so that they learn the processes quickly and can start yielding returns in a short span of time. The biggest problem today is attrition.
Companies can take some initiatives to create loyal employees in addition to benefits mandated by law like PF or ESI. Since the amounts received by mandated laws are very marginal, companies may look at other options where the employees can protect their families, save higher taxes over and above the section 80C and help the employee save for future needs.
Group insurance: This is the cheapest form of insurance that most companies offer employees to protect families in case of premature death. The premiums can be paid by the company and in some cases, contributions are made by the employees also.
Keyman or key person insurance: A company may sign up for key man insurance on the life of certain employee or employees who may be contributing significantly to the business by virtue of experience, contacts, knowledge or expertise, who might be a loss to the company by quitting. The insurance compensates the company to the extent of cover taken on the employee’s life. Like the group insurance, this policy also is a term cover, and the company can claim the premium paid as an expense in its books.
The key difference between the group insurance and keyman’s insurance is that in the former the employee’s nominee gets the sum assured and in the latter, the company is compensated for the keyperson’s loss.
Employer employee insurance (EEI): This is a unique insurance product through which an employer can give his employee all three benefits – protection, tax savings and savings at the same time and earn an employee’s company loyalty.
There are no specially designed products under this scheme. Regular insurance products, both traditional and Ulips, can be purchased under this scheme.
For EEI, the employer, while signing the contract with the insurer, mentions the number of years the premiums will be paid by the employer on behalf of the employee and the number of years the policy will continue wherein the employee would remain covered.
The premiums paid by the company can be claimed as expense under section 37(1) of the IT Act. No tax is charged in the hands of employee either, if the employee after assignment decides to continue paying premiums, he will enjoy section 80C benefit also. The death claims will be tax free in the hands of the nominee under section 10(10D). If it’s a traditional insurance product, the surrender value (SV) is generally very low. The SV is generally calculated as 30 per cent of all the premiums paid, less the first year premium.
Tuesday, March 27, 2012
How too much gold is a drag on Indian economy
Posted by MarketFastFood on 26/03/2012
Tina Edwin, Economic Times 25/3/2012
source: http://m.economictimes.com/markets/commodities/how-too-much-gold-is-a-drag-on-indias-economy/articleshow/12395863.cms
The India-gold love affair is now facing a close scrutiny from the government. The budget has doubled import duty on bullion and non-standard gold to 4% and 10%, respectively, and slapped a 1% cess on unbranded jewellery. FM’s message is clear: reduce gold’s allure and head off Indians to other investments. For, too much gold is a drag on India’s economy. Here’s how:
The BIG Hoard – 20,000 tonnes
According to the World Gold Council, that’s approximately how much gold you’d find if you put together the store of individuals, institutions and the RBI at the end of 2011. Of this, 933.4 tonnes were added last year. Valued at Rs 27,000 per 10 grams, this stockpile is worth roughly Rs 54 lakh crore, 60% of the nominal GDP of India in 2011-12. Only a fraction, about 557.8 tonnes, is held by the RBI and constitutes 10.5% of India’s forex reserves.
But We Don’t Use Most Of It
2:1 is the ratio of gold to gross domestic capital formation. Had Indians bought more goods and services instead of gold, capital formation (economists’ term for fresh investments) would have been higher than Rs 26.92 lakh crore for 2010-11. How? Higher demand would push companies to expand capacity or invest in greenfield projects to build some items they currently import.
And Gold Doesn’t Work On Its Own
6.8:1 is the approximate ratio of the value of gold holdings to financial savings of households. Investments in financial instruments such as fixed deposits, insurance and equities release funds for productive activities by both the government and corporate sector. Gold does nothing but idle in safes or bank deposit boxes.
Yet, even though gold prices soared, household purchases did not decline proportionately. Instead, financial savings took a hit, falling to Rs 7.68 lakh crore in 2010-11 from `8.35 lakh crore in 2009-10. Inadequate banking infrastructure is to blame too: most of rural India cannot access financial instruments and has no choice but to buy gold as savings.
Plus, Gold Saps Precious Resources
Gold is the third largest component of India’s import bill beaten only by crude oil and capital goods. Crude keeps the economy running and capital goods help produce other goods, build infrastructure and keep growth rolling. But gold’s contribution to the economy is minuscule. Yet we spent $33.9 billion in 2010-11 to meet 92% of the gold demand. This year, the bill is likely to inflate to $58 billion, according to estimates of the Prime Minister’s Economic Advisory Council (EAC).
Gold Also Further Skews Numbers That Matter
Gold Imports as a % of GDP
1.7 in 2008-09
2.1 in 2009-10
2.0 in 2010-11
3.1 in 2011-12
12% is the estimated proportion of gold in the current year’s import bill of $479 billion. The trade deficit is likely to be $175 billion. If we imported less gold, the trade deficit would be less ugly. As a result, the current account deficit would have looked better and reduced depreciation pressure on the rupee. Import of gold also leads to imprudent use of foreign exchange earnings. A Macquaire Research report says the country’s net gold imports widened the current account deficit by 40 to 130 bps between 2007-08 and 2010-11.
So Will Import Duties End India’s Love Affair With Gold?
Unlikely. The World Gold Council believes there may be a very short-term impact on demand. In the long run, this increase will not matter. This is because the fundamental reasons for buying gold jewellery, rooted in Indian culture and weddings, remain unchanged. The demand for gold as an investment, driven by the need to protect against inflation, ease of liquidity and as a monetised asset to secure loans, will also be unaffected.
Some shining factoids
557.75 tonnes – Is RBI’s gold cache. Of this, 265.49 tonnes are held at Bank of England and Bank for International Settlement.
300% - Is the increase in gold holding of ETFs between 2009 and 2011. Now the stockpile is about 30 tonnes.
0.47 grams – Was India’s per capita consumption of gold jewellery in 2011.
Posted by MarketFastFood on 26/03/2012
Tina Edwin, Economic Times 25/3/2012
source: http://m.economictimes.com/markets/commodities/how-too-much-gold-is-a-drag-on-indias-economy/articleshow/12395863.cms
The India-gold love affair is now facing a close scrutiny from the government. The budget has doubled import duty on bullion and non-standard gold to 4% and 10%, respectively, and slapped a 1% cess on unbranded jewellery. FM’s message is clear: reduce gold’s allure and head off Indians to other investments. For, too much gold is a drag on India’s economy. Here’s how:
The BIG Hoard – 20,000 tonnes
According to the World Gold Council, that’s approximately how much gold you’d find if you put together the store of individuals, institutions and the RBI at the end of 2011. Of this, 933.4 tonnes were added last year. Valued at Rs 27,000 per 10 grams, this stockpile is worth roughly Rs 54 lakh crore, 60% of the nominal GDP of India in 2011-12. Only a fraction, about 557.8 tonnes, is held by the RBI and constitutes 10.5% of India’s forex reserves.
But We Don’t Use Most Of It
2:1 is the ratio of gold to gross domestic capital formation. Had Indians bought more goods and services instead of gold, capital formation (economists’ term for fresh investments) would have been higher than Rs 26.92 lakh crore for 2010-11. How? Higher demand would push companies to expand capacity or invest in greenfield projects to build some items they currently import.
And Gold Doesn’t Work On Its Own
6.8:1 is the approximate ratio of the value of gold holdings to financial savings of households. Investments in financial instruments such as fixed deposits, insurance and equities release funds for productive activities by both the government and corporate sector. Gold does nothing but idle in safes or bank deposit boxes.
Yet, even though gold prices soared, household purchases did not decline proportionately. Instead, financial savings took a hit, falling to Rs 7.68 lakh crore in 2010-11 from `8.35 lakh crore in 2009-10. Inadequate banking infrastructure is to blame too: most of rural India cannot access financial instruments and has no choice but to buy gold as savings.
Plus, Gold Saps Precious Resources
Gold is the third largest component of India’s import bill beaten only by crude oil and capital goods. Crude keeps the economy running and capital goods help produce other goods, build infrastructure and keep growth rolling. But gold’s contribution to the economy is minuscule. Yet we spent $33.9 billion in 2010-11 to meet 92% of the gold demand. This year, the bill is likely to inflate to $58 billion, according to estimates of the Prime Minister’s Economic Advisory Council (EAC).
Gold Also Further Skews Numbers That Matter
Gold Imports as a % of GDP
1.7 in 2008-09
2.1 in 2009-10
2.0 in 2010-11
3.1 in 2011-12
12% is the estimated proportion of gold in the current year’s import bill of $479 billion. The trade deficit is likely to be $175 billion. If we imported less gold, the trade deficit would be less ugly. As a result, the current account deficit would have looked better and reduced depreciation pressure on the rupee. Import of gold also leads to imprudent use of foreign exchange earnings. A Macquaire Research report says the country’s net gold imports widened the current account deficit by 40 to 130 bps between 2007-08 and 2010-11.
So Will Import Duties End India’s Love Affair With Gold?
Unlikely. The World Gold Council believes there may be a very short-term impact on demand. In the long run, this increase will not matter. This is because the fundamental reasons for buying gold jewellery, rooted in Indian culture and weddings, remain unchanged. The demand for gold as an investment, driven by the need to protect against inflation, ease of liquidity and as a monetised asset to secure loans, will also be unaffected.
Some shining factoids
557.75 tonnes – Is RBI’s gold cache. Of this, 265.49 tonnes are held at Bank of England and Bank for International Settlement.
300% - Is the increase in gold holding of ETFs between 2009 and 2011. Now the stockpile is about 30 tonnes.
0.47 grams – Was India’s per capita consumption of gold jewellery in 2011.
Wednesday, February 29, 2012
Robin Sharma - Secrets of success
The 73 Best Lessons I’ve Learned for Leadership Success in Business and Life ?By Robin Sharma, author of the international bestseller “The Leader Who Had No Title”
1. You can really Lead Without a Title.
2. Knowing what to do and not doing it is the same as not knowing what to do.
3. Give away what you most wish to receive.
4. The antidote to stagnation is innovation.
5. The conversations you are most resisting are the conversations you most need to be having.
6. Leadership is no longer about position – but passion. It’s no longer about image but impact. This is Leadership 2.0.
7. The bigger the dream, the more important to the team.
8. Visionaries see the “impossible” as the inevitable.
9. All great thinkers are initially ridiculed – and eventually revered.
10. The more you worry about being applauded by others and making money, the less you’ll focus on doing the great work that will generate applause. And make you money.
11. To double your net worth, double your self-worth. Because you will never exceed the height of your self-image.
12. The more messes you allow into your life, the more messes will become a normal (and acceptable) part of your life.
13. The secret to genius is not genetics but daily practice married with relentless perseverance.
14. The best leaders lift people up versus tear people down.
15. The most precious resource for businesspeople is not their time. It’s their energy. Manage it well.
16. The fears you run from run to you.
17. The most dangerous place is in your safety zone.
18. The more you go to your limits, the more your limits will expand.
19. Every moment in front of a customer is a gorgeous opportunity to live your values.
20. Be so good at what you do that no one else in the world can do what you do.
21. You’ll never go wrong in doing what is right.
22. It generally takes about 10 years to become an overnight sensation.
23. Never leave the site of a strong idea without doing something to execute around it.
24. A strong foundation at home sets you up for a strong foundation at work.
25. Never miss a moment to encourage someone you work with.
26. Saying “I’ll try” really means “I’m not really committed.”
27. The secret of passion is purpose.
28. Do a few things at mastery versus many things at mediocrity.
29. To have the rewards that very few have, do the things that very few people are willing to do.
30. Go where no one’s gone and leave a trail of excellence behind you.
31. Who you are becoming is more important than what you are accumulating.
32. Accept your teammates for what they are and inspire them to become all they can be.
33. To triple the growth of your organization, triple the growth of your people.
34. The best leaders are the most dedicated learners. Read great books daily. Investing in your self-development is the best investment you will ever make.
35. Other people’s opinions of you are none of your business.
36. Change is hardest at the beginning, messiest in the middle and best at the end.
37. Measure your success by your inner scorecard versus an outer one.
38. Understand the acute difference between the cost of something and the value of something.
39. Nothing fails like success. Because when you are at the top, it’s so easy to stop doing the very things that brought you to the top.
40. The best leaders blend courage with compassion.
41. The less you are like others, the less others will like you.
42. You’ll never go wrong in doing what’s right.
43. Excellence in one area is the beginning of excellence in every area.
44. The real reward for doing your best work is not the money you make but the leader you become.
45. Passion + production = performance.
46. The value of getting to your goals lives not in reaching the goal but what the talents/strengths/capabilities the journey reveals to you.
47. Stand for something. Or else you’ll fall for anything.
48. Say “thank you” when you’re grateful and “sorry” when you’re wrong.
49. Make the work you are doing today better than the work you did yesterday.
50. Small daily – seemingly insignificant – improvements and innovations lead to staggering achievements over time.
51. Peak performers replace depletion with inspiration on a daily basis.
52. Take care of your relationships and the sales/money will take care of itself.
53. You can’t be great if you don’t feel great. Make exceptional health your #1 priority.
54. Doing the difficult things that you’ve never done awakens the talents you never knew you had.
55. As we each express our natural genius, we all elevate our world.
56. Your daily schedule reflects your deepest values.
57. People do business with people who make them feel special.
58. All things being equal, the primary competitive advantage of your business will be your ability to grow Leaders Without Titles faster than your industry peers.
59. Treat people well on your way up and they’ll treat you well on your way down.
60. Success lies in a masterful consistency around a few fundamentals. It really is simple. Not easy. But simple.
61. The business (and person) who tries to be everything to everyone ends up being nothing to anyone.
62. One of the primary tactics for enduring winning is daily learning.
63. To have everything you want, help as many people as you can possibly find get everything they want.
64. Understand that a problem is only a problem if you choose to view it as a problem (vs. an opportunity).
65. Clarity precedes mastery. Craft clear and precise plans/goals/deliverables. And then block out all else.
66. The best in business spend far more time on learning than in leisure.
67. Lucky is where skill meets persistence.
68. The best Leaders Without a Title use their heads and listen to their hearts.
69. The things that are hardest to do are often the things that are the best to do.
70. Every single person in the world could be a genius at something, if they practiced it daily for at least ten years (as confirmed by the research of Anders Ericsson and others).
71. Daily exercise is an insurance policy against future illness. The best Leaders Without Titles are the fittest.
72. Education is the beginning of transformation. Dedicate yourself to daily learning via books/audios/seminars and coaching.
73. The quickest way to grow the sales of your business is to grow your people.
1. You can really Lead Without a Title.
2. Knowing what to do and not doing it is the same as not knowing what to do.
3. Give away what you most wish to receive.
4. The antidote to stagnation is innovation.
5. The conversations you are most resisting are the conversations you most need to be having.
6. Leadership is no longer about position – but passion. It’s no longer about image but impact. This is Leadership 2.0.
7. The bigger the dream, the more important to the team.
8. Visionaries see the “impossible” as the inevitable.
9. All great thinkers are initially ridiculed – and eventually revered.
10. The more you worry about being applauded by others and making money, the less you’ll focus on doing the great work that will generate applause. And make you money.
11. To double your net worth, double your self-worth. Because you will never exceed the height of your self-image.
12. The more messes you allow into your life, the more messes will become a normal (and acceptable) part of your life.
13. The secret to genius is not genetics but daily practice married with relentless perseverance.
14. The best leaders lift people up versus tear people down.
15. The most precious resource for businesspeople is not their time. It’s their energy. Manage it well.
16. The fears you run from run to you.
17. The most dangerous place is in your safety zone.
18. The more you go to your limits, the more your limits will expand.
19. Every moment in front of a customer is a gorgeous opportunity to live your values.
20. Be so good at what you do that no one else in the world can do what you do.
21. You’ll never go wrong in doing what is right.
22. It generally takes about 10 years to become an overnight sensation.
23. Never leave the site of a strong idea without doing something to execute around it.
24. A strong foundation at home sets you up for a strong foundation at work.
25. Never miss a moment to encourage someone you work with.
26. Saying “I’ll try” really means “I’m not really committed.”
27. The secret of passion is purpose.
28. Do a few things at mastery versus many things at mediocrity.
29. To have the rewards that very few have, do the things that very few people are willing to do.
30. Go where no one’s gone and leave a trail of excellence behind you.
31. Who you are becoming is more important than what you are accumulating.
32. Accept your teammates for what they are and inspire them to become all they can be.
33. To triple the growth of your organization, triple the growth of your people.
34. The best leaders are the most dedicated learners. Read great books daily. Investing in your self-development is the best investment you will ever make.
35. Other people’s opinions of you are none of your business.
36. Change is hardest at the beginning, messiest in the middle and best at the end.
37. Measure your success by your inner scorecard versus an outer one.
38. Understand the acute difference between the cost of something and the value of something.
39. Nothing fails like success. Because when you are at the top, it’s so easy to stop doing the very things that brought you to the top.
40. The best leaders blend courage with compassion.
41. The less you are like others, the less others will like you.
42. You’ll never go wrong in doing what’s right.
43. Excellence in one area is the beginning of excellence in every area.
44. The real reward for doing your best work is not the money you make but the leader you become.
45. Passion + production = performance.
46. The value of getting to your goals lives not in reaching the goal but what the talents/strengths/capabilities the journey reveals to you.
47. Stand for something. Or else you’ll fall for anything.
48. Say “thank you” when you’re grateful and “sorry” when you’re wrong.
49. Make the work you are doing today better than the work you did yesterday.
50. Small daily – seemingly insignificant – improvements and innovations lead to staggering achievements over time.
51. Peak performers replace depletion with inspiration on a daily basis.
52. Take care of your relationships and the sales/money will take care of itself.
53. You can’t be great if you don’t feel great. Make exceptional health your #1 priority.
54. Doing the difficult things that you’ve never done awakens the talents you never knew you had.
55. As we each express our natural genius, we all elevate our world.
56. Your daily schedule reflects your deepest values.
57. People do business with people who make them feel special.
58. All things being equal, the primary competitive advantage of your business will be your ability to grow Leaders Without Titles faster than your industry peers.
59. Treat people well on your way up and they’ll treat you well on your way down.
60. Success lies in a masterful consistency around a few fundamentals. It really is simple. Not easy. But simple.
61. The business (and person) who tries to be everything to everyone ends up being nothing to anyone.
62. One of the primary tactics for enduring winning is daily learning.
63. To have everything you want, help as many people as you can possibly find get everything they want.
64. Understand that a problem is only a problem if you choose to view it as a problem (vs. an opportunity).
65. Clarity precedes mastery. Craft clear and precise plans/goals/deliverables. And then block out all else.
66. The best in business spend far more time on learning than in leisure.
67. Lucky is where skill meets persistence.
68. The best Leaders Without a Title use their heads and listen to their hearts.
69. The things that are hardest to do are often the things that are the best to do.
70. Every single person in the world could be a genius at something, if they practiced it daily for at least ten years (as confirmed by the research of Anders Ericsson and others).
71. Daily exercise is an insurance policy against future illness. The best Leaders Without Titles are the fittest.
72. Education is the beginning of transformation. Dedicate yourself to daily learning via books/audios/seminars and coaching.
73. The quickest way to grow the sales of your business is to grow your people.
Thursday, February 23, 2012
Why is the wedding ring worn on fourth finger?
Have you ever wondered why married couples wear wedding rings on their forth finger or ring finger? There is a nice Chinese explanation regarding this.
Each finger symbolizes a relationship in your life :
· Thumb represents your parents
· Index finger represents your siblings
· Middle finger represents your self
· Ring finger represents your life partner
· Little finger represents children
Now, put your palms together and bend both of your middle fingers. Hold middle fingers back-to-back and hold all other four fingers tip-to-tip.
Now, if you try to separate your thumbs which represents your parents, you can! According to the Chinese, this is because your parents are not destined to live with you forever. You can also open your index finger because your sibling which is your brothers and/or sisters are going to left you to have there separate life or maybe build their own family. You can also open your little finger that represents your children. Your children will also be building their own separate lives and settle themselves someday with a family of their own.
Finally, try to separate your ring finger. You can't since as a husband and wife, you are destined to be together for better, for worse, for richer, for poorer, in sickness or in health, to love and to cherish 'till death separate you both.
Have you ever wondered why married couples wear wedding rings on their forth finger or ring finger? There is a nice Chinese explanation regarding this.
Each finger symbolizes a relationship in your life :
· Thumb represents your parents
· Index finger represents your siblings
· Middle finger represents your self
· Ring finger represents your life partner
· Little finger represents children
Now, put your palms together and bend both of your middle fingers. Hold middle fingers back-to-back and hold all other four fingers tip-to-tip.
Now, if you try to separate your thumbs which represents your parents, you can! According to the Chinese, this is because your parents are not destined to live with you forever. You can also open your index finger because your sibling which is your brothers and/or sisters are going to left you to have there separate life or maybe build their own family. You can also open your little finger that represents your children. Your children will also be building their own separate lives and settle themselves someday with a family of their own.
Finally, try to separate your ring finger. You can't since as a husband and wife, you are destined to be together for better, for worse, for richer, for poorer, in sickness or in health, to love and to cherish 'till death separate you both.
Wednesday, February 22, 2012
MUMBAI: Rashmi Patel, a housewife and insurance agent with the country's largest insurance company, has switched her moonlighting. She now sells other financial products such as credit card and loan products of a private sector bank. The Rajkot resident is among the lakhs of insurance agents who have either switched their profession or have faced licence cancellation due to lower commission.
In the first three quarters of the financial year 2011-12, more than 3 lakh active insurance agents have quit the profession. Insurance companies such as Life Insurance Corporation of India (LIC), ICICI Prudential and HDFC Life have seen mass exodus owing to lesser incentive to agents when compare with other similar sophisticated industries.
Individual agents are the traditional channel for selling life insurance products and contribute over 50% of new sales. The percentage of new business premium collection from this channel has dropped from 55 % to 44% as the number of agents has come down to 23.78 lakh in December 2011 from 27.10 lakh last year.
"We have to increase reward for agents. I think we should figure out how to increase the productivity of agents. At present, an agent sells 18 policies on an average in a year. We have to see how we can increase it to 25 policies," Insurance Regulatory and Development Authority, or Irda, chairman J Hari Narayan said. This will ensure better income for agents, he said.
Agents are abandoning the profession after the regulator reduced commissions and introduced a host of stringent norms making insurance products, especially unit-linked insurance plans, or Ulips, less lucrative. Insurance products, including pension plans, have vanished from the market after the new norms were implemented.
"The global average life of agents is 4-5 years. A lot of agents return to their previous jobs, join a broker, start selling mutual funds after leaving the insurance sector," said Anil Jha, an agent with LIC.
Insurance companies are also asking agents to leave if they fail to meet targets. Targets for agents are set on the basis of the number of policies sold and premium earned.
In 2010-11, over 10 lakh agents vacated the space as the business turned less alluring due to the cap on charges on unit-linked insurance plans, which were selling like hot cake. Now, agents earn 5% to 7% commission on Ulips as against 12% to 18% before the changes were introduced.
The total premium collected by the industry has decreased by 3% to Rs 1,80,240 crore from Rs 1,86,396 crore. New business income fell 17% to Rs 71,953 crore from Rs 86,698 crore mainly due to absence of pension products. As per provisional data, the total new premium collected under the individual pension category was RS 1,008 crore in the December 2011 quarter as against Rs 18,417 crore in the same period of the previous fiscal year.
In the first three quarters of the financial year 2011-12, more than 3 lakh active insurance agents have quit the profession. Insurance companies such as Life Insurance Corporation of India (LIC), ICICI Prudential and HDFC Life have seen mass exodus owing to lesser incentive to agents when compare with other similar sophisticated industries.
Individual agents are the traditional channel for selling life insurance products and contribute over 50% of new sales. The percentage of new business premium collection from this channel has dropped from 55 % to 44% as the number of agents has come down to 23.78 lakh in December 2011 from 27.10 lakh last year.
"We have to increase reward for agents. I think we should figure out how to increase the productivity of agents. At present, an agent sells 18 policies on an average in a year. We have to see how we can increase it to 25 policies," Insurance Regulatory and Development Authority, or Irda, chairman J Hari Narayan said. This will ensure better income for agents, he said.
Agents are abandoning the profession after the regulator reduced commissions and introduced a host of stringent norms making insurance products, especially unit-linked insurance plans, or Ulips, less lucrative. Insurance products, including pension plans, have vanished from the market after the new norms were implemented.
"The global average life of agents is 4-5 years. A lot of agents return to their previous jobs, join a broker, start selling mutual funds after leaving the insurance sector," said Anil Jha, an agent with LIC.
Insurance companies are also asking agents to leave if they fail to meet targets. Targets for agents are set on the basis of the number of policies sold and premium earned.
In 2010-11, over 10 lakh agents vacated the space as the business turned less alluring due to the cap on charges on unit-linked insurance plans, which were selling like hot cake. Now, agents earn 5% to 7% commission on Ulips as against 12% to 18% before the changes were introduced.
The total premium collected by the industry has decreased by 3% to Rs 1,80,240 crore from Rs 1,86,396 crore. New business income fell 17% to Rs 71,953 crore from Rs 86,698 crore mainly due to absence of pension products. As per provisional data, the total new premium collected under the individual pension category was RS 1,008 crore in the December 2011 quarter as against Rs 18,417 crore in the same period of the previous fiscal year.
Monday, January 30, 2012
How to choose a course on stock market
Posted by MarketFastFood on 30/01/2012
What to look out for while choosing a course on stock market investments
NIKHIL WALAVALKAR, Economic Times 30/1/2012
source: http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/what-to-look-out-for-while-choosing-a-course-on-stock-market-investments/articleshow/11680441.cms
Legends of stock market allure many individuals to try their hands on equities. But, barring a few, many end up losing their hard-earned money in the market. Some retire hurt, but some don’t give up and queue up to sign up for courses that are designed to help novices in the market. The queue gets longer especially when the market is in bad shape.
"Short duration courses dealing with the basics of stock market have been in demand for some time now," says Vinod Nair, head – academics and product development, BSE Institute. Many institutions and individuals are offering short-duration courses that are supposed to help individuals to get it right in the stock market.
What is on offer
Typically, an average investor would want to learn every ‘money making trick’ in a weekend. No wonder, there are many courses that are conducted on weekends. Sure, you also have the option of a three-month course. One can start with courses dealing with the basics of stock market: what is a stock market; how does it function. There are also courses that are focused on one aspect of investing, say, fundamental analysis.
A course of fundamental analysis will typically deal with industry analysis, financial analysis and valuation of companies. If you have been investing or trading for some time and aware of the operational aspects of the game, you can consider them. If you are fairly aware of fundamental analysis and keen to go deeper, you can look at financial modeling course that helps you build your own earnings models to project a company’s financials using the spreadsheet. Put simply, you have to first identify your requirement before going for a course.
For example, if you are comfortable trading using price behaviour of securities, go for a technical analysis course. If you believe in financial numbers, look for options in fundamental analysis. But since there is a problem of plenty – choose wisely.
How to choose
Professionally-managed institutes clearly define the objectives of a course and the ideal audience for the course. "Do not get carried away by tall claims lodged by some self-proclaimed experts to market their courses," says Chandrashekhar Thakur, head – investor education, Central Depository Services.
You should choose a course only when your requirements and the objectives of the course match. Go with a course that clearly outlines the course content. "Check if the course coverage is comprehensive and includes concepts, tools and techniques and relevant regulatory issues," says Vinod Nair.
If you have some doubts about the course content do get it clarified before you opt for the course. "You should also check the teaching approach used. Whether it is just an information download or does it use hands on exercises and current case studies," adds Vinod Nair. Go with a course that takes real life case studies. You can get this information from ex-students.
"Do check the credentials of the faculty conducting the course," adds Chandrashekhar Thakur. Role of faculty is more important since these are application-oriented course. Professional bodies with long-standing track record ensure faculties with rich market experience in respective domains. But when it comes to individuals or little known institutes, conducting courses, you have to exercise caution.
"If you are opting for a technical analysis course, check the track record of the faculty as a technical analyst. Especially his recommendations and views at critical junctures can give you an insight," says Nooresh Merani, chief executive officer, Analyse India Market Solutions. With the advent of electronic media such as websites and blogs, this is very much possible nowadays. Professional technical analysts do keep a time stamped record of recommendations on their websites or free blogs.
Infrastructure also matters a lot. If you have enrolled for a financial modeling course, the institute should provide each participant a computer in the classroom. Better confirm the same before enrolling, otherwise you have to carry your laptop with you. In case of a technical analysis course, the institute should offer you some handholding in terms of which charting software to buy after the course. The institute should also offer some post course assistance.
"Students need help from faculty after completing the course for clearing their doubts. Sometimes refresher courses at no extra cost work better," says Nooresh Merani. Some institutes also offer students online forums and groups to discuss doubts, trades and investment ideas with faculties and fellow students. If you are new to markets, this makes a lot more sense.
A course conducted for a day or two would be priced anything between Rs 3,000 and Rs 12,000. Long-duration programmes are priced between Rs 15,000 and Rs 25,000. If you are going for a technical analysis course, do consider the cost of charting software, which is priced in the range of Rs 10,000 and Rs 25,000 a year. It may look obvious to account for, but still, you need a computer and a broadband internet connection to trade using charting software.
The Road Ahead
"Nobody becomes an expert overnight. A good course gives you knowledge and enables you to use it in your favour," says a fund manager, who does not want to be named. Give yourself time to absorb what you have learnt in the course and gradually apply it in the market. Most courses will also offer some inputs on risk management and money management that bring in some discipline. Use your knowledge, be disciplined and patient, and you will be rewarded.
Posted by MarketFastFood on 30/01/2012
What to look out for while choosing a course on stock market investments
NIKHIL WALAVALKAR, Economic Times 30/1/2012
source: http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/what-to-look-out-for-while-choosing-a-course-on-stock-market-investments/articleshow/11680441.cms
Legends of stock market allure many individuals to try their hands on equities. But, barring a few, many end up losing their hard-earned money in the market. Some retire hurt, but some don’t give up and queue up to sign up for courses that are designed to help novices in the market. The queue gets longer especially when the market is in bad shape.
"Short duration courses dealing with the basics of stock market have been in demand for some time now," says Vinod Nair, head – academics and product development, BSE Institute. Many institutions and individuals are offering short-duration courses that are supposed to help individuals to get it right in the stock market.
What is on offer
Typically, an average investor would want to learn every ‘money making trick’ in a weekend. No wonder, there are many courses that are conducted on weekends. Sure, you also have the option of a three-month course. One can start with courses dealing with the basics of stock market: what is a stock market; how does it function. There are also courses that are focused on one aspect of investing, say, fundamental analysis.
A course of fundamental analysis will typically deal with industry analysis, financial analysis and valuation of companies. If you have been investing or trading for some time and aware of the operational aspects of the game, you can consider them. If you are fairly aware of fundamental analysis and keen to go deeper, you can look at financial modeling course that helps you build your own earnings models to project a company’s financials using the spreadsheet. Put simply, you have to first identify your requirement before going for a course.
For example, if you are comfortable trading using price behaviour of securities, go for a technical analysis course. If you believe in financial numbers, look for options in fundamental analysis. But since there is a problem of plenty – choose wisely.
How to choose
Professionally-managed institutes clearly define the objectives of a course and the ideal audience for the course. "Do not get carried away by tall claims lodged by some self-proclaimed experts to market their courses," says Chandrashekhar Thakur, head – investor education, Central Depository Services.
You should choose a course only when your requirements and the objectives of the course match. Go with a course that clearly outlines the course content. "Check if the course coverage is comprehensive and includes concepts, tools and techniques and relevant regulatory issues," says Vinod Nair.
If you have some doubts about the course content do get it clarified before you opt for the course. "You should also check the teaching approach used. Whether it is just an information download or does it use hands on exercises and current case studies," adds Vinod Nair. Go with a course that takes real life case studies. You can get this information from ex-students.
"Do check the credentials of the faculty conducting the course," adds Chandrashekhar Thakur. Role of faculty is more important since these are application-oriented course. Professional bodies with long-standing track record ensure faculties with rich market experience in respective domains. But when it comes to individuals or little known institutes, conducting courses, you have to exercise caution.
"If you are opting for a technical analysis course, check the track record of the faculty as a technical analyst. Especially his recommendations and views at critical junctures can give you an insight," says Nooresh Merani, chief executive officer, Analyse India Market Solutions. With the advent of electronic media such as websites and blogs, this is very much possible nowadays. Professional technical analysts do keep a time stamped record of recommendations on their websites or free blogs.
Infrastructure also matters a lot. If you have enrolled for a financial modeling course, the institute should provide each participant a computer in the classroom. Better confirm the same before enrolling, otherwise you have to carry your laptop with you. In case of a technical analysis course, the institute should offer you some handholding in terms of which charting software to buy after the course. The institute should also offer some post course assistance.
"Students need help from faculty after completing the course for clearing their doubts. Sometimes refresher courses at no extra cost work better," says Nooresh Merani. Some institutes also offer students online forums and groups to discuss doubts, trades and investment ideas with faculties and fellow students. If you are new to markets, this makes a lot more sense.
A course conducted for a day or two would be priced anything between Rs 3,000 and Rs 12,000. Long-duration programmes are priced between Rs 15,000 and Rs 25,000. If you are going for a technical analysis course, do consider the cost of charting software, which is priced in the range of Rs 10,000 and Rs 25,000 a year. It may look obvious to account for, but still, you need a computer and a broadband internet connection to trade using charting software.
The Road Ahead
"Nobody becomes an expert overnight. A good course gives you knowledge and enables you to use it in your favour," says a fund manager, who does not want to be named. Give yourself time to absorb what you have learnt in the course and gradually apply it in the market. Most courses will also offer some inputs on risk management and money management that bring in some discipline. Use your knowledge, be disciplined and patient, and you will be rewarded.
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