By Gods grace,
zee learn achived medium term tgt of 20%
Kiri dyes achived medium term tgt of 20%
within a week.
Wednesday, December 29, 2010
Wednesday, December 22, 2010
December 22nd performance
By Gods Grace
Harrisons Malayalam Ltd Short Term TGT achieved in single day 4.7% returns
Jayshree tea Short Term TGT achieved in single day 4% returns
Long term call Voltam given B@700 levels now trading @800levels within a month time-- 14% returns till now
Harrisons Malayalam Ltd Short Term TGT achieved in single day 4.7% returns
Jayshree tea Short Term TGT achieved in single day 4% returns
Long term call Voltam given B@700 levels now trading @800levels within a month time-- 14% returns till now
Tuesday, December 21, 2010
December 20th performance
By Gods Grace
Herohonda TGT achieved in 1 days--13.9% profit
HEG TGT achieved in 1 day-- 8.7% profit
camlin hit SL --4.4% loss
Tech mahindra missed TGT by 1 rs..days high 709..tgt given 710..upside till now 9%
GOLD B@20500 on 16th S@ 20538--3800Rs. profit per lot--4.75% profit per lot
Herohonda TGT achieved in 1 days--13.9% profit
HEG TGT achieved in 1 day-- 8.7% profit
camlin hit SL --4.4% loss
Tech mahindra missed TGT by 1 rs..days high 709..tgt given 710..upside till now 9%
GOLD B@20500 on 16th S@ 20538--3800Rs. profit per lot--4.75% profit per lot
Friday, December 17, 2010
Insurance FAQs
1)What is the difference between nomination and assignment?
Nomination is an authorization to receive the claim arising out of policy in the event of the death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. Further, the Nomination can be changed or cancelled at any time during the lifetime of the policyholder at his will and pleasure or by a subsequent assignment. On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities to the insurance policy in favour of the assignee.
To be continued...
Nomination is an authorization to receive the claim arising out of policy in the event of the death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. Further, the Nomination can be changed or cancelled at any time during the lifetime of the policyholder at his will and pleasure or by a subsequent assignment. On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities to the insurance policy in favour of the assignee.
To be continued...
LOAN TO REVAMP YOUR HOUSE
This article came in news paper Times Property dated 17-12-2010
You can avail a home improvement loan to complete all those pending repairs, says Kavita Sriram
Some homes may require urgent repairs. Homeowners need not wait indefinitely till they can augment enough money towards revamping their house. Banks lend money not only to buy a property but also for any home improvement project you may undertake.
The process of renovating or making additions to your house is home improvement. It includes painting, flooring, upgrading cabinets and wardrobe, expanding capacity of electrical and plumbing systems, and roofing. Some people may want to add a room or convert an unused corner to a living space. Home improvement loans are meant to finance these activities that could cost anywhere from a couple of lakhs to around Rs 10 lakhs.
Technological additions like installing security systems, fire prevention gadgets, water recycling units and rain water harvesting systems are expensive. Homeowners can also use the home improvement loan amount to buy home electronics like microwave oven, washing machine, hobs, kitchen chimney and air conditioners. This loan enables homeowners to concentrate on home improvement, free from the fretters of financial limitations.
Homeowners with a stable income over the last couple of years and a minimum age of 21 years are eligible for this loan. Most lenders limit the repayment period to 10 years. If you have a home loan already, applying for the new loan with the existing lender may be a good idea. This could make the loan process less cumbersome with minimal paperwork.
Most lenders expect margin money (down payment) to the tune of 20 percent of the cost of home improvement project.
The financial estimate can be made by an architect or may be based on the cost of gadgets you would like to purchase. Estimated cost of home improvement project includes cost of repairing, renovation or extension. Before applying for a loan, try to raise funds to meet the down payment.
Some banks finance the entire project cost for their existing customers with impressive repayment track record. Consider availing home improvement loan if you have pending internal and external repairs and other structural improvements to your home.
IT ’SBETTER TO BUY PROPERTY WITH HOME LOAN
This article came in news paper Times Property dated 17-12-2010
It is always advisable to buy a property with a home loan as you get tax benefits and the advantage of the bank carrying out a due diligence process, writes V Nagarajan
Most homebuyers need a home loan to buy a residential property. There are some who prefer to buy using their own funds. But there are risks associated in such cases. Many people have invested in vacant plots without seeking a site loan and there are instances where such investments have gone sour. The process of seeking a home loan not only assists a homebuyer in tiding over the financial need, but also helps him to a great extent in the due diligence process.
NRIs get benefit of due
diligence
For instance, take the case of NRIs who are away from home and who may have to go through the process of legal scrutiny while investing in a property. They have to depend on their relatives or friends. The best way out is to seek a home loan as the legal cell in the bank will scrutinise the documents and certify that the property is free from encumbrances before lending. It is always wiser for such people to invest in projects approved by banks as that ensure that all due diligence process has been completed. Incidentally, the Foreign Exchange Management Act (FEMA) rules prohibit NRIs from investing in agricultural land, farm land and plantation property.
Tax planning done
From a tax planning point of view as well, it would be better to buy a house with a home loan. It is also equally beneficial for those who have an investible surplus to invest in residential property through a home loan. The interest on the loan up to Rs 1.5 lakhs is tax deductible for a self-occupied house. This means a tax saving of nearly Rs 45,000 per individual. A housing loan of Rs 18.75 lakhs attracts around Rs 1.5 lakhs as interest at present. The interest payment can also be adjusted against salary income, business or profession income, or any other income. A loan can be taken from a bank, financial institution, relative or friend.
There is no limit on the deductibility of interest in the case of let-out and commercial properties. It is advisable to go in for a home loan especially when the property is to be let-out. So, you can take as much loan as one you can get from the lending institution. Here again, the interest payment is allowed as a deduction in full while computing 'income from house property'.
Further, capital repayments are eligible for deduction under Section 80C within the overall aggregate limit of Rs 1 lakh. Payments on account of stamp duty, registration fee and other expenses which have been incurred for the purpose of transfer of the house are available for deduction also.
Co-borrowers get benefits
Even while making a joint investment in property, every member gets a special deduction in respect of interest on the loan and also repayment of capital. From the point of wealth tax planning as well, one property is exempt from the purview of wealth tax irrespective of the value of the property for every individual.
Avoid wealth tax
Above all, if an investor is holding more than one residential property, he can avoid payment of wealth tax if the residential properties are given on rent for more than 300 days in a calendar year. Maximum marginal tax rate of 30 percent can be brought down to 21 percent in case the property owned is leased out.
So, go for a home loan while investing in property.
Six tips to make the most of your PPF
This article is taken from ET wealth
The stock market, despite the probability of giddy returns, can give you the heebie-jeebies due to the wild swings in share prices. Fixed deposits can be a turnoff because the interest earned is taxable. For investors seeking the best of both worlds, there is the Public Provident Fund (PPF). Wrapped in safety and free of tax, the PPF is almost a godsend for risk-averse investors.
“PPF is an excellent tool for long-term investment. It is risk-free as it is backed by the government,” says Harsh Roongta, CEO of apnapaisa.com. It is especially suitable for self-employed professionals and small businessmen who are not covered by the Employees' Provident Fund . “Those who don't have access to an organised setup can realise long-term goals through the PPF,” says Surya Bhatia, a Delhi-based financial planner .
Don’t think of your PPF account as a stodgy investment option where you put away something once in a year. With a little planning, it can be an important part of your financial portfolio. Here are a few tips that will help you make the most of this option:
“PPF is an excellent tool for long-term investment. It is risk-free as it is backed by the government,” says Harsh Roongta, CEO of apnapaisa.com. It is especially suitable for self-employed professionals and small businessmen who are not covered by the Employees' Provident Fund . “Those who don't have access to an organised setup can realise long-term goals through the PPF,” says Surya Bhatia, a Delhi-based financial planner .
Don’t think of your PPF account as a stodgy investment option where you put away something once in a year. With a little planning, it can be an important part of your financial portfolio. Here are a few tips that will help you make the most of this option:
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Maximise limit:
The 8% compounding interest you earn on the balance can work wonders for you, especially because a PPF account is a long-term investment. There is an annual limit of Rs 70,000 that one can invest in the PPF. You may feel it is a waste to be investing Rs 70,000 in this option when your Rs 1 lakh tax saving limit under Section 80C has already got exhausted. But don't let the tax savings alone guide your decision. Invest as much in PPF as you can afford to. If you contribute Rs 70,000 a year to your PPF for 15 years, your investment would grow to a gargantuan Rs 22.92 lakh on maturity.
And remember, this is tax-free money. In the 30% tax bracket, this is equivalent to receiving almost 11.5% interest on a bank fixed deposit. “The PPF offers the highest post-tax returns among all fixed income options since no tax is levied on the investment, income and withdrawals,” says Bhatia.
The 8% compounding interest you earn on the balance can work wonders for you, especially because a PPF account is a long-term investment. There is an annual limit of Rs 70,000 that one can invest in the PPF. You may feel it is a waste to be investing Rs 70,000 in this option when your Rs 1 lakh tax saving limit under Section 80C has already got exhausted. But don't let the tax savings alone guide your decision. Invest as much in PPF as you can afford to. If you contribute Rs 70,000 a year to your PPF for 15 years, your investment would grow to a gargantuan Rs 22.92 lakh on maturity.
And remember, this is tax-free money. In the 30% tax bracket, this is equivalent to receiving almost 11.5% interest on a bank fixed deposit. “The PPF offers the highest post-tax returns among all fixed income options since no tax is levied on the investment, income and withdrawals,” says Bhatia.
Distribute income:
There are benefits in store if you open a PPF account in the name of your spouse or child. Tax laws say that if any money gifted to a spouse is invested, the income from that investment is clubbed with the income of the giver. But since PPF income is tax free, it will not push up his tax liability. This way, you can invest more than Rs 70,000 a year in this tax-free haven and benefit from its various advantages.
This strategy does not work in case of minor children though. You can open a PPF account in the name of a minor child but the combined contribution to your and your child's account cannot exceed Rs 70,000 a year.
Invest for children:
However, if the child is over 18 years, up to Rs 70,000 a year can be invested in his name separately. The taxman insists on clubbing the income of minor children with that of the parent. But once they turn 18, they can have a separate income. “A PPF is an ideal way of building a fund for your child's educational needs instead of falling for all the ‘high-commission-paying’ child plans of insurers,” says Sandeep Shanbhag, director of Wonderland Consultants, a tax and financial planning firm. “In a child plan, you are not sure of the final returns.
There are benefits in store if you open a PPF account in the name of your spouse or child. Tax laws say that if any money gifted to a spouse is invested, the income from that investment is clubbed with the income of the giver. But since PPF income is tax free, it will not push up his tax liability. This way, you can invest more than Rs 70,000 a year in this tax-free haven and benefit from its various advantages.
This strategy does not work in case of minor children though. You can open a PPF account in the name of a minor child but the combined contribution to your and your child's account cannot exceed Rs 70,000 a year.
Invest for children:
However, if the child is over 18 years, up to Rs 70,000 a year can be invested in his name separately. The taxman insists on clubbing the income of minor children with that of the parent. But once they turn 18, they can have a separate income. “A PPF is an ideal way of building a fund for your child's educational needs instead of falling for all the ‘high-commission-paying’ child plans of insurers,” says Sandeep Shanbhag, director of Wonderland Consultants, a tax and financial planning firm. “In a child plan, you are not sure of the final returns.
”Invest before cut-off:
It’s important to keep an eye on the calendar when you make your contribution to the PPF. The interest on your investment is compounded annually but the calculation is monthly. The interest is calculated on the lowest balance between the 5th and last day of every month. So, if you invest before the 5th, the contribution will earn interest for that month too. Otherwise, it's like an interest-free loan to the government for a month.
Withdraw for emergencies:
The PPF can also be your emergency fund. Although it is not a good idea to dip into long-term savings for consumption, if you are faced with a terrible cash crunch, you can withdraw from your PPF account. It will be far cheaper than going in for a personal loan at 17-18%. Withdrawals are allowed after the sixth year. But you can withdraw only once in a year and only up to a specified limit.
Also, be sure to put back the amount you have withdrawn at the earliest. As we said earlier, this is not a good strategy if you do it frequently. Some investors use this tack to claim tax deduction. They withdraw from the PPF and then reinvest the money after sometime. This is a flawed investment strategy. They only look at their gross savings but their net savings do not grow.
Other helpful tips:
A PPF account matures in 15 years. Though you are allowed to open only one PPF account, you can extend it after it matures. Accounts can be extended in blocks of five years indefinitely. Even if you don't have a large sum to invest in the PPF, don't forget to invest the minimum Rs 500 in a financial year. There's a small but troublesome penalty of Rs 50 levied if you fail to do so. Don't invest more than the Rs 70,000 a year. The excess amount, even if credited to your account by mistake, will not earn any interest.
It’s important to keep an eye on the calendar when you make your contribution to the PPF. The interest on your investment is compounded annually but the calculation is monthly. The interest is calculated on the lowest balance between the 5th and last day of every month. So, if you invest before the 5th, the contribution will earn interest for that month too. Otherwise, it's like an interest-free loan to the government for a month.
Withdraw for emergencies:
The PPF can also be your emergency fund. Although it is not a good idea to dip into long-term savings for consumption, if you are faced with a terrible cash crunch, you can withdraw from your PPF account. It will be far cheaper than going in for a personal loan at 17-18%. Withdrawals are allowed after the sixth year. But you can withdraw only once in a year and only up to a specified limit.
Also, be sure to put back the amount you have withdrawn at the earliest. As we said earlier, this is not a good strategy if you do it frequently. Some investors use this tack to claim tax deduction. They withdraw from the PPF and then reinvest the money after sometime. This is a flawed investment strategy. They only look at their gross savings but their net savings do not grow.
Other helpful tips:
A PPF account matures in 15 years. Though you are allowed to open only one PPF account, you can extend it after it matures. Accounts can be extended in blocks of five years indefinitely. Even if you don't have a large sum to invest in the PPF, don't forget to invest the minimum Rs 500 in a financial year. There's a small but troublesome penalty of Rs 50 levied if you fail to do so. Don't invest more than the Rs 70,000 a year. The excess amount, even if credited to your account by mistake, will not earn any interest.
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