Cover Story

Should I buy stocks now?
Yes, but you need to be more choosy about the shares you pick than ever before. If you can't, let a fund manager do it for you.

What investors want to know?
The days of heady returns on most assets are over for now. We advise you on where to invest.
Should I reallocate my assets?
Yes, and regularly, to ensure that your investment portfolio stays in sync with your timeline, investment goals and risk tolerance.
Is risk manageable?
Yes if you understand correlations between various investments you have made and how each asset moves in relation to others.
Is it time for fixed returns?
Volatile stock markets and high interest rates have made fixed income instruments attractive. Make most of this opportunity.

2007-06-14

Digital

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Mutual Fund

Balanced funds stand out in market decline

Floating rate funds are well-equipped to handle interest volatility, but even they are not completely safe.

NFO resume

Prasunjit Mukherjee, CEO of Plexus Management, a Kolkata-based fund tracker, deconstructs the NFO.

Expert View

Taking Interest

In the current scenario the debt and fixed return instruments look very attractive and interest rates on bank deposits are still above 10% is indicative of good times.

Ulips don't lie

Ulips give flexibility to decrease or increase protection over the term of the plan. One can also add health insurance cover by adding critical illness riders.

Engage early with the market

The entrepreneur should be willing to stay the course in spite of the inevitable initial hiccups and hurdles.

Enigma of returns

The question is not which sector looks good. It is where MFS and FIIS will be pumping in liquidity.

Riding volatility

Investors with a long-term perspective can take the systematic route to investing. Systematic investment and transfer plans operate on the principle of rupee cost averaging.

Hype defused

The rupee could further strengthen against the dollar to about Rs 38-39. But dipping exports, noise by exporters and low inflation could prompt the RBI to intervene and push it back to the Rs 40-42 range. Investors will just have to live with currency volatility.

Query Corner

Why a Rs 10 fund is as costly as a Rs 20 fund?

We introduce a new interactive section for investors. Write to us and we will give a detailed answer.

BASICS

SARAL but not short

If small is beautiful, taxpayers can say goodbye to Saral forms. The new income tax return forms are substantially lengthier than various Saral variants used till now.

Insurance

Are Ulips the right choice?

Yes. If you invest for at least 10 years and review allocation, it will give you the best combo of insurance and mutual funds.

Talk Back

Talk Back: Letters to the editor

It is a misconceived notion that wills must be made only in old age. A will should be written as soon as an individual has reasonable wealth that may be useful to the person it is bequeathed to.

Tax

'Go for liquid funds'

This will allow you to get the money in your credit on one day's notice, though at a minor interest loss.

Portfolio Doctor

Early bird advantage

Chennai-based U.N. Subhash has been wise to start investing early but must increase his exposure to equity and insure himself adequately.

My Story

Master of memory

Here's how Mahavir Jain, 32, used his power of mind to build a business. He had spare time to develop vocabulary building modules using mnemonics.

Small Fortune

Walk your way to wealth

Joining a gym can hurt your financial health. Instead, jogging or walking in the neighbourhood park can help you save Rs 6.15 lakh.

Sector Scenario

Cementing Gains

Valuations of cement stocks seem to be reasonably priced. Companies are upgrading their recommendation to ‘reduce’ from ‘sell’.

Stocks

'Buy' recommendation

Foreign institutional investors continue to be heavy buyers of Indian stocks, benefiting from a strong rupee that translates into higher returns in US dollars. Indian mutual funds too have turned buyers.

Cheers! UB Group buyout gets stocks on a high

Reliance Capital has attracted the interest of many foreign financial institutions. An expected sale of cross-holdings in its own group concerns should boost profits.

New Business

Make or break

Manoj worked on an idea for six years before turning full time entrepreneur. His payback time may be about to begin.

Editor's Note

From the Managing Editor

There are too many investors who could have avoided trouble and losses had they asked basic questions before investing their money. So “Ask Questions” is the best advice we can give you about how to invest wisely.

Real Estate

Home abroad

More and more Indians are now looking at buying a house abroad, be it as a second home or a holiday base. Here’s a look at the available options.

Nagpur:changing landscape rapidly

The number of new houses in Nagpur have almost doubled in the past four years. But the heavy demand for housing has ensured capital appreciation despite such robust supply.

Upfront