Edition: May, 2010

Cover Story

Know your investor type

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.

Master your money 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.
Dodgers wake up to reality 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.
Radicals seek the middle path 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.
Debt mongers stop losing interest 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.
Spendthrifts don't show me money The urge to spend most of your income has serious long-term implications. The best way to control it is to invest it first.
Tricks that the mind plays 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.
Make way for logic By controlling your emotions, you can actually earn higher returns from the market. We tell you how to do it.

Mutual Fund

Reach your financial goals with mutual funds

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

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

Tax

Babar Zaidi

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.

Stocks

Kamya Jaiswal

Decoding raw data

Kamya Jaiswal realises that interpreting quarterly results is not easy, but the hands-on approach is educational.

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

Investment

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.

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.

Books

Sushmita Choudhury

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}

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.

Query Corner

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.

Insight

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.

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.

Editors Note

Rakesh Rai

From the editor: May 2010

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

Talk Back

"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.

Smart Spending

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.

Consumer Rights

Tanvi Varma/Money Today

"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.

Last Word

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.

Perspective

Regulator watch

A look at the recent rulings which can affect you.

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.
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.
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.
Satisfactory take-off Airlines are flying high as customers have given them a thumbs up.
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.
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.