Edition: December 2011

Cover Story

Chandralekha Mukerji

How to rebalance Ulip portfolio with fall in interest rates

With interest rates expected to fall, long-term debt funds have started buying debt papers with long tenures to gain from high yields. So, is it time to change your unit-linked insurance plan portfolio and use the free-switch option available with the plan to increase exposure to debt?

Market volatility: Best time to invest in debt funds? Debt funds, which invest in a range of debt and fixed-income securities of different maturities and credit quality, protect you from equity market volatility and offer decent returns. This could be the best time to bolster your portfolio with debt funds.
Company deposits, NCDs offer good returns Company deposits and NCDs offer more than bank deposits with slightly higher risk.
Volatile mkt? Invest in fixed-income units If you have not cushioned your portfolio with low-risk debt securities, this is the time to get locked into fixed-income instruments.
Is fixed-income savings plan taxable? Under existing laws, the net tax cost at the time of investment in savings plans may make certain investments lucrative. However, the tax impact on the returns at the time of accretion, redemption or maturity must also be considered.
Need more money? Invest in govt schemes With market-linked returns, government savings schemes will get a new look.
Investing in infrastructure bonds can help you save tax Tax-saving infrastructure bonds are a good option in the fixed income category. These are issued by infrastructure companies approved by the government and they offer a decent rate of interest plus tax benefits.
'Credit ratings are not investment recommendations' Credit ratings are not investment recommendations as an investment decision should be based on factors apart from credit risks, such as liquidity in the market and interest rate fluctuations.

Mutual Fund

Principal Large Cap MF outperforms

Principal Large Cap Mutual Fund has outperformed its category four times in past five years.

Technology

Pritam P Hans

Develop your Online Estate

As the Internet becomes important in our life, it is time for you, too, to set up a website.

Office in the Cloud Google (Docs) v/s Microsoft (Office 365): How do the two popular online office productivity suites fare when pitted against one another, feature for feature?

Stocks

Best Performing Stocks

Rajesh Exports is among the top gainers in the last six months with return of over 60 per cent.

Stocks that held strong amid sell-off We bring you an analysis of stocks that held strong amid sell-offs and how they are likely to perform.
Beaten down stocks that may turn hot again Market analysts say investors must look at a company's corporate governance standards, capital expenditure plans, management quality and order inflows while exploring for investment opportunities.

Banking

Best Loan Buys

Are you scouting for a loan to buy a house, a car or for your child's education? Given below are the best deals on offer from public and private sector lenders.

Query Corner

How to choose the best insurance policy

I have considerable investments in mutual funds and equities. Now I wish to liquidate some of them. I also have a second house that provides me an income of Rs 5,000 every month. Do I sell part of my equity investment and take a loan or sell my house?

Editors Note

From the Executive Editor: December 2011

The government's decision to accept all the major recommendations of the Shyamala Gopinath committee that reviewed the National Small Savings Fund (NSSF) will bring in major changes in the country's canvas of fixed-income securities.

Talk Back

Letters to the Editor

"The cover story (Filled with Hope, November 2011) paints an optimistic picture of the future of the Indian stock market. While it is true that that a predominant bearish sentiment is the best time to take a position in good stocks, I'm unable to understand whether the present slide has ended."

Smart Spending

Sam Abraham

The Hot & the not so Happening

Sam Abraham introduces new products and services to help you zero in on those that offer value for money.

Protect your Child Child safety seats are easily available in the market but which is the right one for your child?

Perspective

Pritam P Hans

Employees' Welfare

Supreme Court has ruled in a verdict delivered on 8 November, 2011, that if a company goes bust, its employees will have the first claim on it assets for their employee provident fund dues.

Regulator Watch A look at recent rulings in the banking, telecom and capital market which can affect you.
Rupee falls 13% in three months In the last 3 months alone, the rupee has depreciated by 13 per cent, falling from the level of Rs 45 in August 2011 to Rs 51 as of 16 November 2011.
Freedom for Borrowers The National Housing Bank (NHB) has directed housing finance companies (HFCs) to stop levying charges on repayment of all floating home loans ahead of scheduled tenure,
Women use debit cards lesser than men The central bank had commissioned the survey to assess customer satisfaction in the usage of automated teller machines (ATMs) across the country.
Trivia and Telling Figures 2.15 per cent is the growth in overall employment in India during April-June 2011, compared with 1.62 per cent a year ago, according to the labour ministry data.
Cheques now valid for just 3 months From 1 April 2012, cheques, drafts, pay orders and banker's cheques will be valid for only three months. Currently, these instruments are valid for six months from the date of issue.
Realty deals become transparent The real estate sector has become slightly more transparent with new disclosure norms for mortgaged commercial properties.
Inner Voices "If a person has idle cash in savings account, he should invest in liquid funds where there is relatively lower interest rate risk," says Lakshmi Iyer, Head (Fixed Income), Kotak Mutual Fund.
Pension schemes get user-friendly From 1 December 2011, you can expect pension plans to be more transparent and user-friendly, while providing a guaranteed return on your capital.