ESOP holders go for equities, avoid realty & IT stocks

ESOP holders go for equities, avoid realty & IT stocks

ET Intelligence Group: For top Indian information technology professionals sitting on a bulging pile of employee stock options (ESOPs), a diversified portfolio of equities is fast emerging as the preferred investment tool over the traditional themes of real estate and information technology (IT) stocks. Assets under management (AUM) of boutique portfolio management services (PMS) firms such as Trustline Holdings and Right Horizons, which primarily manage money of top IT executives,  have surged by 30-40% in the past two years. On average, such PMS firms reported over Rs 100 crore of…

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Sorry Mr Buffett, your advice of index fund investing not best choice in India

Sorry Mr Buffett, your advice of index fund investing not best choice in India

NEW DELHI: Berkshire Hathaway Chairman Warren Buffett, admired across the globe not only by the analyst community but also retail investors, said investors should “stick with low-cost index funds.” This guru mantra might work for investors in the US or any other developed market, but may not be that effective in India, at least at the current stage of evolution of the Indian equity market, say market analysts. Buffett, widely considered one of the world’s best equity investors, said in his annual letter to shareholders that trillions of dollars are managed…

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Demonetisation: Equities remain best bet; avoid exposure to gold, real estate

Demonetisation: Equities remain best bet; avoid exposure to gold, real estate

Domestic equity market has witnessed a slide in recent weeks even as there is widespread expectation that governor of Reserve Bank of India, Urjit Patel, will announce a cut in repo rate in the forthcoming fifth bi-monthly Monetary Policy statement on December 7 to spur growth. Sarbajeet K Sen The demonetisation exercise by the government has created negative impact on asset classes such as real estate and gold, with purchases slowing down in both. Domestic equity market has witnessed a slide in recent weeks even as there is widespread expectation…

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Cash & Demonetization: Payday kicks in, 6 ways to avoid banks crowds

Cash & Demonetization: Payday kicks in, 6 ways to avoid banks crowds

For most Indians, the salary day this month is going to be unlike any other. The reason being the unabated cash crunch due to the demonetization of ₹500 and ₹1,000 notes announced on 8 November. After the demonetization, which ceased the legal tender status of the notes and also introduced new ₹2,000 and ₹500 notes, there has been severe shortage of smaller denomination notes that has resulted in long queues at banks and ATMs. Banks and the RBI have also rationed the cash supply in order to meet the demand….

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Net Returns is all that matters – Asset Classes and Tax Implications.

Net Returns is all that matters – Asset Classes and Tax Implications.

As an investor it is imperative that you understand the different asset classes and its varied tax implications. It is true that every financial advisor you approach would talk about diversifying your investment portfolio and allocating your assets to a variety of asset classes depending on your risk profile and your short and long term financial goals. That’s enough of jargon talk. We’ll cut the finance babble and get to the point. First things first. Do you know how much you are taxed on your investments? Taxes make a big…

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Gift a Mutual Fund Investment this festive season

Gift a Mutual Fund Investment this festive season

What to Gift? A Made in China plastic toy or something to be cherished for many years in the future? The season is festive. Greetings are exchanged, families feted and friendships renewed. The ease of communication has brought a new dimension to the celebrations, sending a gift or a greeting – now the history, tradition and meaning of the festival is delivered by email or WhatsApp instead of being conveyed at the grandparent’s feet. Shopping, in a relatively prosperous generation, with access to the best of global goodies is simpler than…

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Planning to invest in debt? Here is how to structure your exposure

Planning to invest in debt? Here is how to structure your exposure

When other asset classes appear overheated or in risky zone or you want regular income, the best investment is to put your money in fixed income or debt instruments. However, a debt-instrument heavy investment portfolio is not always a healthy one since it would pull down the overall returns. If one hopes to beat inflation by a reasonable margin, one has to have a diversified portfolio with a fair sprinkling of equities, equity funds and commodities. So how much of this instrument is good in a normal investment portfolio and…

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Market Rally and the Festive Season. Truth, Tradition and Tale.

Market Rally and the Festive Season. Truth, Tradition and Tale.

It is no secret that the Indian Stock Market is expected to rally during the months October – April. Dipping to the year’s lowest most just before the onset of the festive season, it is a conceded notion for the markets to look up at a bull rally after the Muhurat trading session on Diwali day.  Yes it’s true. The markets ended on a three month low on the 17th of October 2016. The BSE Sensex closed at its lowest in more than three months on Monday, as investors braced…

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Planning to invest in Non Convertible Debentures? Here are 5 things to check before putting your money

Planning to invest in Non Convertible Debentures? Here are 5 things to check before putting your money

Non-convertible debentures (NCDs), issued by companies to raise funds, have been hitting the market at regular intervals. The most recent proposal is from Tata Motors which plans to get board approval soon to raise Rs 500 crore. In recent month, some NCDs have been runaway success with huge investment interest. Debentures issued from the likes of Dewan Housing Finance Ltd, which came up with inflation-linked NCDs, and Indiabulls Housing Finance received massive investor response. Along with these, SREI Infrastructure Finance raised funds through this route. While NCDs from big and…

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RBI has delivered on rate cut: How you can make money in stocks now

RBI has delivered on rate cut: How you can make money in stocks now

Earning in stocks of certain sectors is set to increase with the new RBI rate cut. The domestic stock market might like the new avatar of Urjit Patel as dovish RBI Governor. The jittery market and stocks breathed a sigh of relief after the Reserve Bank of India (RBI) slashed policy rates by 25 bps to 6.25 per cent and indicated that inflation will cool off in the subsequent quarters. Further cooling off in inflation will provide room to the central bank to cut rates further, which would be important…

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