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Cover Story

  • Are you afraid of risk? Do you love credit cards? Take this quiz to find out how your attitude to money determines your investor profile.
  • By controlling your emotions, you can actually earn higher returns from the market. We tell you how to do it.
  • Emotions overshadow rationality more than you think. Take the following five psychological tests to understand how the mind works—and its impact on your financial decisions.
  • The urge to spend most of your income has serious long-term implications. The best way to control it is to invest it first.
  • High debt increases the cost of living and reduces your ability to save. Do not deny the problem and prepay expensive loans by funnelling all resources at hand.
  • Both ultra-conservative and ultra-aggressive investors are unlikely to build wealth in the long run. They must tweak their attitude towards risk to find the optimum balance.
  • The cost of delaying financial decisions is very high. Put your financial plan on autopilot by committing to predetermined investments that force you to be disciplined.
  • Rules tend to overlook the most important part of a financial plan—you. Learn how to customise your strategy according to your personality to increase its efficacy. Spendthrifts don't show me money Debt mongers stop losing interest Radicals seek the middle path
May 01, 2010
Mutual Fund Reach your financial goals with mutual funds

Reach your financial goals with mutual funds

Choosing the right type of fund is the first step in achieving your financial goals.

Advantage mutual funds

The most convenient and safe way to invest in equities without compromising on high returns is through mutual.

Looking beyond borders

Global funds are a good pick given their current underperformance, but research well on the country and currency risks.

Learn to be trigger happy

The trigger facility in equity funds helps individual investors rein in their impulses and book profits in a disciplined manner.
Investment High growth

High growth

The more time you give your money, the more it can grow. For example, Rs 1,000 invested every month at 15 per cent p.a. can grow to Rs 69 lakh over 30 years.

Starting early

Investing early gives your money more time to grow. There is also lesser chance of dipping into the investments that dilutes the effect of compounding.

Best performance

Equities has consistently outperformed all other asset classes. Therefore, it works well against rising prices.

Profit over time

Though the stock market is volatile in the short term, it has the potential to create immense and stable wealth in the long run.

Minimising loss

Though investing in the stock market is a risky proposition, it is possible to minimise the probability of loss by staying invested for the long term.

India on a high growth path

All macro indicators reveal that India has the potential of becoming an economic superpower in the next decade, which will reflect in the stock market.

Patience pays

Investing in equities is a must to ensure high growth for your portfolio. To minimise the chances of loss and maximise gains, stay invested for the long term.
Perspective The tug of war that pays

The tug of war that pays

Who says India is a nation of shirkers? On the contrary, the financial arena is witnessing a relentless tug of war between the leading regulators, each fighting for greater responsibility.

Hedging against currency risks

The rupee seems to be turbocharged, gaining almost 6 per cent against the dollar in the past year, from Rs 47 in April 2009 to Rs 44.4 currently.

Satisfactory take-off

Airlines are flying high as customers have given them a thumbs up.

Pay a derivative contract with a stock

The derivative market is set for a makeover if Sebi has its way. If its recent proposal on physical settlement of equity derivative contracts is implemented, investors will soon have the option of doing so by delivering stocks, in addition to using cash.

A gesture of goodwill

In April, the market regulator paid Rs 300 each to 4.75 lakh investors and Rs 20-300 to a portion of the 7.99 lakh investors, who were robbed of the opportunity to subscribe to 21 IPOs between 2003 and 2005.

Mutual funds have a small following

What will you do if you land a windfall? Buy a gadget or a mutual fund? If you spend it, you're one of a million who would do so, but if you invest it, then you belong to an elite category—the 10 per cent Indians who have invested in mutual funds.

Regulator watch

A look at the recent rulings which can affect you.
Query Corner How much capital gain tax do I need to pay for ancestral agricultural property?

How much capital gain tax do I need to pay for ancestral agricultural property?

The term ‘capital asset’ means property of any kind. Agricultural land is not considered a capital asset and so there is no tax on the sale of such land.
Talk Back "The story on debt choices was well researched"

"The story on debt choices was well researched"

The story on debt choices was well researched. But while it explained the investors how to tweak their portfolios in view of the rise in interest rates, it did not list the funds.
Portfolio Doctor Investing with the herd

Investing with the herd

The Neverights must read our cover story on investor psychology and how certain behavioural traits and attitudes towards money can be financially ruinous.
Smart Spending What to buy and what not to

What to buy and what not to

In this series we review recently launched products and services to help you sort the best buys from those that do not offer value for money.
Real Estate Builders baits'

Builders baits'

Real estate developers are using ingenious lures to sell their projects. Here are the false promises you need to beware of.
Stocks Is it time for stock shopping?

Is it time for stock shopping?

The Nifty's rise since February is likely to end. The ensuing correction will present a good opportunity to buy stocks.

Gainful flutter

A highly sophisticated strategy, the 'butterfly' helps limit losses without having to guess the market direction. However, it also offers limited gains.

Decoding raw data

Kamya Jaiswal realises that interpreting quarterly results is not easy, but the hands-on approach is educational.
Travel Think offbeat to save big

Think offbeat to save big

For vacation this year, swap the hot destinations for some unlikely scorchers. These may not be popular venues, but offer the same attractions at cheaper rates.

Bid for the best

Reverse auction portals allow you to set your own price for flights and hotel rooms, but be ready to be flexible and for a compromise on transparency.
Banking Cheque it out

Cheque it out

Speed Clearing System can help save time and effort by ensuring swift processing of outstation cheques. Find out how to avail of the facility.

The new rules of borrowing

The tumultuous changes in the economic landscape over the past two years have rewritten many canons of financial prudence.
Editors Note From the editor

From the editor

The two recent developments that have hogged the mindspace and headlines are the market movement and tug of war over Ulips.
Last Word Dream towers

Dream towers

After the slowdown, builders have been desperate to sell their projects. As real estate is primarily about location, they have been peddling projects with false information on the distance from landmarks as well as accessibility.
Expert View Overcome biases to win big

Overcome biases to win big

If investors had stayed on or even averaged down, the cost of investment would have been very cheap when the markets sprang up again.

Infrastructure: The magic word

The government is going all out to woo private sector investment in infrastructure like never before. This means exciting returns are possible for patient investors.

Stepping on the oil & gas

Even a success rate of 10 per cent in the new blocks where RIL is exploring oil will create huge wealth for shareholders.

"Health policies need to be more transparent, have less fine print"

Damien Marmion, CEO of Max Bupa Health Insurance Company, the newest player in the field, tells about what the future holds for policyholders.
Consumer Rights "The compliance rate is currently at around 80 per cent, down from nearly 94 per cent last year"

"The compliance rate is currently at around 80 per cent, down from nearly 94 per cent last year"

Alan Collaco, Secretary-General, Advertising Standards Council of India, talks about the grievance redressal mechanism, self-regulation and the body's future plans.
Financial Planning Accounting for deception

Accounting for deception

Corporates are wont to smudging figures to show enhanced performance. Here are some techniques you need to watch out for.

How to fund a foreign degree

Studying abroad can lend an edge to your resume, but can you afford it? Know how to finance your dream.
Insight Reaping what they had sown

Reaping what they had sown

Many companies are planning to divest their stakes in unlisted subsidiaries and associate companies. Here's how such moves could affect shareholders.

Will equities lose their sheen if long-term gains become taxable?

Replacing Rule Reversal, this new series on the Direct Taxes Code will consider the impact of the likely changes that will come into effect from 1 April 2011.
Tax EET: Saving grace

EET: Saving grace

The exempt-exempt-tax proposal under the Direct Taxes Code can be a boon for retirees instead of the cruel blow it is made out to be.
Careers Harvesting the gains

Harvesting the gains

Entrepreneurs have begun to leverage the opportunities in the agricultural sector and are reaping the benefits of venturing into this field.
Books The stock rule: Stating the obvious

The stock rule: Stating the obvious

The author's secrets are common knowledge, but his success in investing should prompt a perusal of the book by investors.

Learn to live like a millionaire

What makes you happy? A shiny, new sports car? A diamond necklace? Making it to the cover of Forbes? Even if you can get all the above, and more, you are not necessarily a millionaire.{mospagebreak}