Money Today Archive November 27, 2008 Issue
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Edition: November 27, 2008

Cover Story

Dhirendra Kumar and Narayan Krishnamurthy

Indias most wanted stocks

The market is back to the January 2006 level. Value Research and Money Today look at how India’s most wanted stocks fared in this journey.
  • Can you bank on funds? No investment is risk-free. If the entire stock market declines in value, the value of mutual funds goes down too.
  • Time to adapt or perish Small businesses can’t solve all their problems. But in order to survive, they should ensure that they are not caught off-guard.
  • The unthinking borrower Easy loans, free credit cards and a rising standard of living have resulted in a debt trap for the middle class. Can it escape unscathed?
  • Living on a shoestring Rising costs and expenses and diminishing returns are forcing families to live on tight budgets and come up with innovative ways to save.
  • My experiments with a job loss If you have lost your job, this is not the time to be choosy. Sitting at home, waiting for a better job, increases frustration and depletes savings. If you can’t find another job, seriously consider self-employment.
  • Hanging by a threat The noose around your finances is tightening. It may seem impossible to do so, but there are ways to loosen it. Find out how.
  • Mirror the index, not the fund If you do not want to be disappointed when the bull market resumes, it is best to switch to an index fund, which will ensure that you get market returns for a minuscule fee.
  • Following in the market's footsteps People believe that fund managers will always be able to outperform the benchmark because the Indian market is inefficient and the managers have better information. but in practice, this theory falls flat.
  • 7 investment truths Everybody says, mutual funds are the best way to de-risk your portfolio. But the Money Today-Value Research list of India's Most Wanted Stocks over the past two years proves that this is a widely accepted fable. Here is the new set of investment truisms.
Mutual Fund
Invest in the market at current levels with a three-year perspective. The index is expected to deliver a CAGR of 15-20% over the next three years, says
Srividhya Rajesh.
Tax
If the income-tax office has provided incorrect account details, you can resolve the matter by visiting ITO with the copies of the acknowledgement of your return and the bank statement with the account details.
Technology
Brinda Vasudevan
Drop-dead gorgeous can as easily describe James Bond as his car or watch. Not all the gizmos are available in India yet, but with online shopping and shipping, you can still lay your hands on them.
Stocks
29.4 per cent is the return from Zandu Pharmaceutical stock since Jan 2008. The Sensex during the same period lost 52%.
  • Purging losers, adding winners As markets show signs of bottoming out, Dipen Sheth goes shopping for value picks and weeds out three spectacular duds.
  • Stocks with lifebuoys Stocks with high dividend yields tend to be less volatile. But there are other things to look out for before you invest in such shares.
Insurance
Insurance is as important for women as it is for men. Women should definitely buy life insurance the day they start earning and should revaluate the cover whenever they get a substantial raise.
Expert View
Dipen Sheth
Check if your favourite stock can withstand shocks such as a couple of bad quarters (look for low overheads), fund crunch (check the dividend yield), interest rate hikes (tolerate zero-to-low debt) and margin squeeze.
  • Small is risky, but can be profitable Stocks of small companies are not for people who are averse to risk. But if you are willing to put a small part of your portfolio at risk for a potential payoff, consider them seriously.
Portfolio Doctor
Noorul Hasan follows a disciplined asset allocation and chooses his mutual funds with utmost care. But he throws caution to the winds when it comes to stock-picking.
Books
Sameer Bhardwaj
If you are plagued by the twin bugaboos of financial formulas and cryptic concepts, turn to this book. Devoid of jargon, yet covering most analytical techniques, it will help you monitor your investments more adeptly, says Sameer Bhardwaj.
Query Corner
FMPs are closed-ended funds that primarily invest in bonds and fixed deposits, though some also have a small equity exposure.
Editors Note
Alam Srinivas
The explosive combination of Obama and the global financial crisis can create more jobs in India over the next few years. So, despite the fact that you are at risk now, expect some good times ahead.
Talk Back
The stock market work on the free market principle. So, it is almost impossible to fix a price for the stocks. The investors who want to play it safe can always go for debt instruments such as fixed deposits, National Savings Certificates and the Public Provident Fund.
Upfront
The Indian Cabinet has finally given the nod to the proposal to hike the foreign direct investment cap in insurance from 26% to 49%.
E2E
Tanvi Varma/Money Today
Meena Bindra's passion for clothes and perseverance have seen brand Biba grow to a Rs 87-crore entity.
Now and Then
Real estate prices are witnessing a correction but there has been no let up in the high cost of construction. The prices of almost all building materials have risen sharply in the past few years.
My Idea
Priya Kapoor
At Colour Factory, you can paint pottery, even make it, and take it home at nominal rates. Gurgaon-based Vikas Verma, 45, helps people lend colour to their creativity through the five outlets spread across the country.

December 25, 2008

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November 27, 2008

November 13, 2008

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October 16, 2008

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July, 24 2008

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