Cover Story

How to tame inflation
Like a beast on the rampage, inflation is playing havoc with our day-to-day finances. But there are steps we can take to protect our wallets from severe damage.Life-cycle inflationInflation-proof your portfolioWhy 13% inflation is a possibility

Life-cycle inflation
Your consumption basket changes over your lifetime. We explain how this affects your inflation. Also, five financial planners reveal their inflation computations.
The case for wage inflation
The rising inflation rate could mean lower standards of living unless we ensure that incomes keep up with prices.
Illusion of more
Do you know your purchasing power was higher in 2006 than in 2007? And the culprit is the higher rate of inflation.
Inflation-proof your portfolio
As the inflation rate moves up, key market indices are spiralling downward. Is there a way of making sure that your portfolio is not affected by this rising rate?
Appreciation of the rupee will bring down inflation
We interviewed Ajay Shah, Senior Fellow, National Institute for Public Finance and Policy, on how inflation can be controlled through exchange rate.
Squeezing out liquidity
The hike in home loan interest rates has depressed the demand for property. While investors have almost vanished, even end-users are postponing purchases.
Cushion against rising rates
With prime lending rates going up, all forms of loans have become costlier. Here’s how you can protect yourself from the sharp rise in borrowing costs.
Insure against inflation
You don’t have to chase exotic financial products to protect yourself from the ill-effects of inflation. Take a look at your insurance policy first.

2008-07-01

Digital

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New Business

Small idea, big league

‘Lilliput’ could well be a misnomer. For, there’s nothing small about a Rs 260-crore kids’ apparel empire that spans the country. Diligence and focus have seen Sanjeev Narula upgrade from working in an export house to owning Lilliput.

Mutual Fund

Systematic benefits

Systematic investment plans (SIPs) have become a popular mode of investing in mutual funds.

Tax-plan funds deliver negative returns

With four of the top five tax-plan funds delivering negative returns in the past year, this category has fared worse than the equity diversified funds.

Betting on commodities

Money Today - Plexus Management come together for evaluation of new fund. This time it's Mirae Asset Global Commodity Stocks Fund.

Nibbling away your returns

The commission charged by fund houses on investment in mutual funds where no intermediary has been used, is unjustified.

'Have exposure to global funds'

Avoid any complex and complicated product. Focus on proper asset allocation. Also, have exposure to global assets through international equity funds, suggests Balasubramaniam of  Birla Sun Life MF.

Expert View

Analysing WPI data for consumers is useless

Chief Statistician of India, Pranob Sen, demystifies inflation indices and explains why it isn’t wise to follow headline inflation blindly. Excerpts from an interview.

Why 13% inflation is a possibility

If you are worried about the wholesale price index inflation hitting a 13-year high of 11.63% (for the week ending June 21), there's more bad news in store. Inflation is headed higher and may fall only after touching 13%.

BASICS

Weigh your inflation

The extent to which the rise in the price of a product or service affects your family budget depends on two things—the level of price rise and the share of that product or service in the family’s consumption basket.

Books

Stock up on smart tips

A legendary fund manager profiles his career to list out 21 principles of stock picking. At times, the advice seems simplistic, even confusing, but given the current market scene, it makes for a good, practical read, says Tanvi Varma.

Travel

Rights in transit

India has finally signed the Montreal Convention. So now Indians flying abroad can claim higher compensation for perennial irritants like delayed flights and lost luggage.

Stocks

Spice Communacation performs well

A drop in the US crude inventories has sent the commodity to new heights of $144 a barrel. Analysts foresee the black gold at $150 a barrel soon.

Get ready to bottom fish

Fund manager Dipen Sheth picks up two previously held stocks and adds more of another blue-chip in the making, even as markets hit a 52-week low.

Insight

Your world: Currencies

A snapshot of the rupee’s performance to help you take decisions on travel and overseas investments.

Technology

Wired for sound

There’s no doubt we are growing increasingly dependent on headphones, earphones, earbuds, headsets, face-plugs or cans… call them what you will.

Portfolio Doctor

Early start to a safe future

Dhanbad-based Amit Kumar and Sonila Soni must invest their entire surplus income in a mix of equity diversified funds to exploit their high-risk appetite.

Query Corner

How should one choose a mutual fund?

There are some thumb rules to help you zero in on the best schemes. Read the four parameters on which a fund should be evaluated.

Insurance

A study in covers

If you’re planning higher education abroad, take a medical cover from India. It’s cheaper and offers more benefits.

Upfront

Six sins of Sensex

The nose-diving Sensex and the damp market sentiments may be giving you sleepless nights. We put the spotlight on the biggest market concerns at the moment and outline the way things may play out in future.

Talk Back

Write more on banking, insurance and mutual funds

We regularly carry stories on banking and insurance sectors, while four pages are devoted to mutual funds. However, we will try and cover these subjects more extensively.

Careers

Satisfaction over security

His quest for challenges made him a key figure in setting up the Indian Railways’ online ticketing system—he then left it to join Thomas Cook.

Tax

Is income from interest on savings taxable?

Any interest earned from saving is taxable. The interest income is to be added to your total income while computing your tax liability.

Now and Then

Sweet spot

While the prices of almost all food items, especially food grains and cereals, have risen sharply in the past 10 years, sugar prices have remained relatively stable.

In this MT Issue

Night riders

People love to party late but don’t want to risk driving afterwards. For Ankur Vaid, Saurabh Shah and Mishal Raheja, this wasn’t just a statement of fact, but an idea to start Party Hard Drivers in Mumbai.

Editor's Note

From the managing editor

For instance, how many of us know that inflation doesn’t actually destroy our wealth? It redistributes it—somebody’s high price is somebody else’s high income.

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