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Personal Finance
Tracked by: 0 Boarder
i think after the stock market, the property prices are the next to go.. in another 3-6 months we can see a sharp drop in real estate prices.. will increasing interest rates, the demand will slowly start reducing.. th only resistance in prices now will come from the demand that was waiting in the wings for prices to drop.. but after that blip that prices will steadily start falling...
...
Tracked by: 0 Boarder
The losses were incurred by trading thro` a regular stock broker and by paying STT on all transactions....
In reply to:
short term capital gains calculation
Posted by :
subasu
For the FY 2007 2008, you have already (perhaps) filed your tax returns. How did you exhibit these short term losses? Were these losses incurred by trading through a regular stock broker and by paying STT on each of the transactions?
A correct answer to your question will depend on the correct answer to these two questions. 
Tracked by: 0 Boarder
I am a senior citizen and my estimated income for the F.Y 2008-2009 is as under: Rent of 60,000 less 30%=42,000/- bank and other interests receivable Rs.1,30,000/.I have 2,50,000/- as short term capital gains in property and my short term loss in shares upto this day is about 1,00,000/-. I have invested Rs.1 lakh under sec. 80-C.Taking these figures as final, what would be my tax liability for the above period.Whether my total income will be worked out as 42,000 1,30,000 2,50,000/- Total Rs.4,22,000/ less investment u/s 80/c Rs. 1 lakh =3,22,000 less exempted limit for Sr.Citizens of Rs.2,25,000 Balance tax payable on Rs.97,000/- i.e. 9,700/- @ 10%. Or the capital loss of shares of Rs.1,00,000/- will be taken into consideration and deducted from my total income of Rs.3,22,000/- i.e less 1,00,000/-balance 2,22,000/- and I have not to pay any tax as it is within taxable limit.Please guide me suitablt....
Tracked by: 0 Boarder
Yes i have no loans until now... i wanted to take a housing loan to build on top of my parents house..but i am not working so no loan will be given.. Will they give against policies i wonder.... i thought i should begin some business and the best place of course is the terrace of my parents home.. lets see..... nobody is giving loans against fixed deposits etc i think... now SBI is giving 11% interest onf FD.....
In reply to:
Investment costs
Posted by : pcspune
Dear Radika Nandlal.
You should not Redeem any ULIP till next 1 year. Continue as PAID up( Insurance cover Continue without Paying Further Premium After 3 years if Insurance cover is high not 1-2 Lacs). If Insurance cover is less, Surrender the ULIPS after 1 year or so .
LIC Conventional Policies may be Redeemed after understanding the Losses ( These may not have Investments in Stock be Market ).
AVOID Loan against Conventional Policies.
P.C.Sharma
Tracked by: 0 Boarder
Dear Radika Nandlal.
You should not Redeem any ULIP till next 1 year. Continue as PAID up( Insurance cover Continue without Paying Further Premium After 3 years if Insurance cover is high not 1-2 Lacs). If Insurance cover is less, Surrender the ULIPS after 1 year or so .
LIC Conventional Policies may be Redeemed after understanding the Losses ( These may not have Investments in Stock be Market ).
AVOID Loan against Conventional Policies.
P.C.Sharma...
In reply to:
Investment costs
Posted by : radhika_nandlal
khilji,
I think my hubby was afraid of my rash driving and bought lots of insurance. lol lol... now whats to be done, i am wondering if i should redeem them.. will they give loans against insurance so i can pay back the loan itself when stocks move up..... pss5588 too was mentoining the same thing.
Tracked by: 0 Boarder
As a long term investment it is wise to buy stocks/MF because we can get lot of money after long term. I think now a days we can get stocks/MF at lowest price....
Tracked by: 0 Boarder
offcourse they lost there money......If you are stupid enough to take your own life and leave behind your two children that need your love and guidance through there early years and are far more important than money could ever be .......Its only money people!! you can get it back.....Life on the other hand is gone only once....
In reply to:
Beware! You can lose millions in minutes
Posted by : MMB Messenger
Stock market can be an ideal vehicle towards wealth creation, but the same can be really hazardous if you venture into its treacherous waters without any strategy in place.
Tracked by: 0 Boarder
ELSS is a part of your 80C investment. Make an asset allocation according to your age and risk appetite. Younger person can invest more in equity. A minimum of say 25 to 30% of your 80C - should go towards ELSS - whatever be your age. PPF can play a major part for older persons. Insurance should be the least contributor towards 80C . Always invest only via SIP. Go for value research rated funds. At present Sundaram Tax saver & DWS Tax saving fund are good options. Stick to your asset allocation. Please do not change your asset allocation according to the sensex levels. Also rebalance your portfolio every year accordingly. ...
In reply to:
Volatile Times - What should you do now?
Posted by :
Bullsinhell
How far it is advisable to invest in ELSS in the present market condition ?
Tracked by: 0 Boarder
This interconnectedness has even hit high-quality corporate and mortgage bonds, which are traditionally expected to hold up when stocks decline. Recently, investors have fled various types of bonds to seek the safety of U.S. Treasurys, hurting the liquidity and prices of other bonds. The average intermediate-term bond fund, which typically invests a majority of its money in high-quality bonds, was down 4.2% for the first nine months of 2008.
Separately, high-quality municipal-bond funds have been hurt partly because of worries about the financial strength of the bond insurers that back many muni bonds. The average municipal national intermediate fund is down 2.4% so far this year.
Investors in natural-resources and precious-metals funds have been whipsawed. These funds initially held up as the broad market declined. But in the past few months, these funds have fallen sharply as the prices of oil, gold and other commodities have fallen.
Natural-resources funds are down an average 22% so far in 2008 and precious-metals funds are down 26%. Advisers typically recommend only small investments in such funds.
The recent market volatility has provided a chance for investors to reassess whether they are comfortable with the amount of risk they are taking in their portfolios. Investment adviser Roger Gibson, of Wexford, Pa., says investors hardly think about risk when the stock market is doing well, and may even resist diversifying or putting money in bonds.
Now that the risk is staring investors in the face, they can re-examine whether they are "sleeping well at night," he says.
...
In reply to:
An Ugly Market`s Lessons for Investors
Posted by : sambala
It`s been almost a year -- a long and painful year for investors -- since stock-market benchmarks including the Dow Jones Industrial Average hit record highs last Oct. 9. The stormy markets since then have caused much upheaval for mutual-fund investors, but also highlight important lessons.
Chief among them: Some supposedly safe investments aren`t as secure as investors thought. And diversification doesn`t always prevent losses in the short term.
Looking at the 12 months through Sept. 30, the Dow industrials fell 22% (before dividend income). Fund investors didn`t find many places to hide because almost all types of funds, including those which invest in bonds, precious-metals stocks and foreign stocks, were hit.
Very Few Winners
Of the 69 stock- and bond-fund categories tracked by research firm Morningstar, only eight had positive returns for the 12 months through September. These are funds which invest in U.S. bonds, short-term municipal bonds and -- the big winner, up 22% -- "bear market" funds which bet against the stock market.
Looking at 2008 to date, meanwhile, the average diversified U.S.-stock fund is down 20% through Sept. 30, according to Morningstar.
One of the biggest surprises this year came from problems with investments which were perceived to be safe. These include money-market funds, which strive to maintain a $1 share price, and ultrashort bond funds, which had been marketed as conservative investments which provide better yields than money funds.
Last month, a big money fund, the $62 billion Reserve Primary Fund, saw the value of its holdings fall to 97 cents a share, due to its investments in Lehman Brothers Holdings, which filed for bankruptcy protection. Concerned about a possible run on other money funds, the U.S. stepped in with a plan to temporarily back the funds.
Also in the past year, several ultrashort bond funds lost 10% to 30% of their value, because they were holding exotic investments which became hard to sell amid the credit crunch and which fell in price.
This reiterates the need for investors to pay attention to the risks of their investments, and not rely on what a broker or marketing material may describe as safe. Also, "it points to the risks of chasing yield," says Christine Benz, director of personal finance at Morningstar.
Reserve Primary Fund`s 12-month yield of 4.04% as of Aug. 31 was the highest among 2,100-plus money funds tracked by Morningstar -- far above the average 2.75%.
Ms. Benz says that if investors find that their money fund has higher than average yields, they should dig into what`s driving that. "If the expense ratio isn`t rock-bottom and yet the fund is at the top of the chart, that could be an indication" of higher risk, she says.
Limits of Diversification
One unsettling phenomenon this year has been that asset classes including stocks, bonds, commodities and real estate have all fallen, though to different degrees. Investors often figure that diversifying their holdings among various asset classes will make it less likely that their overall portfolio will post a loss.
Sometimes in down markets, "in the short term, diversification doesn`t work," says Ross Levin, a financial adviser in Edina, Minn.
In the long run, however, asset classes don`t stay highly correlated, he says. Thus, investors are best served by sticking to their long-term asset allocation plan, even if it doesn`t seem to be working in the short run.
The worst-performing fund categories so far in 2008 are those that invest in foreign stocks, especially the more risky emerging markets. Stock funds that invest in Asia excluding Japan -- a category that includes funds that focus only on China or India -- are down an average 43% through Sept. 30. This is a sharp reversal from last year, when these funds topped the charts with an average return of 48%.
Not Immune to U.S. Pain
When economic problems began in the U.S. last year, many observers thought they wouldn`t much impact countries like China and India, which had rapid domestic economic growth. But it turns out that these countries, too, are being impacted by a global slowdown. That spillover effect, combined with withdrawals from these markets by increasingly risk-averse investors, has sent these markets crashing.
"Globalization and other factors have led to much more interconnectedness in the financial markets," says Kurt Brouwer, a financial planner in Tiburon, Calif.
Cont.....
Tracked by: 0 Boarder
It`s been almost a year -- a long and painful year for investors -- since stock-market benchmarks including the Dow Jones Industrial Average hit record highs last Oct. 9. The stormy markets since then have caused much upheaval for mutual-fund investors, but also highlight important lessons.
Chief among them: Some supposedly safe investments aren`t as secure as investors thought. And diversification doesn`t always prevent losses in the short term.
Looking at the 12 months through Sept. 30, the Dow industrials fell 22% (before dividend income). Fund investors didn`t find many places to hide because almost all types of funds, including those which invest in bonds, precious-metals stocks and foreign stocks, were hit.
Very Few Winners
Of the 69 stock- and bond-fund categories tracked by research firm Morningstar, only eight had positive returns for the 12 months through September. These are funds which invest in U.S. bonds, short-term municipal bonds and -- the big winner, up 22% -- "bear market" funds which bet against the stock market.
Looking at 2008 to date, meanwhile, the average diversified U.S.-stock fund is down 20% through Sept. 30, according to Morningstar.
One of the biggest surprises this year came from problems with investments which were perceived to be safe. These include money-market funds, which strive to maintain a $1 share price, and ultrashort bond funds, which had been marketed as conservative investments which provide better yields than money funds.
Last month, a big money fund, the $62 billion Reserve Primary Fund, saw the value of its holdings fall to 97 cents a share, due to its investments in Lehman Brothers Holdings, which filed for bankruptcy protection. Concerned about a possible run on other money funds, the U.S. stepped in with a plan to temporarily back the funds.
Also in the past year, several ultrashort bond funds lost 10% to 30% of their value, because they were holding exotic investments which became hard to sell amid the credit crunch and which fell in price.
This reiterates the need for investors to pay attention to the risks of their investments, and not rely on what a broker or marketing material may describe as safe. Also, "it points to the risks of chasing yield," says Christine Benz, director of personal finance at Morningstar.
Reserve Primary Fund`s 12-month yield of 4.04% as of Aug. 31 was the highest among 2,100-plus money funds tracked by Morningstar -- far above the average 2.75%.
Ms. Benz says that if investors find that their money fund has higher than average yields, they should dig into what`s driving that. "If the expense ratio isn`t rock-bottom and yet the fund is at the top of the chart, that could be an indication" of higher risk, she says.
Limits of Diversification
One unsettling phenomenon this year has been that asset classes including stocks, bonds, commodities and real estate have all fallen, though to different degrees. Investors often figure that diversifying their holdings among various asset classes will make it less likely that their overall portfolio will post a loss.
Sometimes in down markets, "in the short term, diversification doesn`t work," says Ross Levin, a financial adviser in Edina, Minn.
In the long run, however, asset classes don`t stay highly correlated, he says. Thus, investors are best served by sticking to their long-term asset allocation plan, even if it doesn`t seem to be working in the short run.
The worst-performing fund categories so far in 2008 are those that invest in foreign stocks, especially the more risky emerging markets. Stock funds that invest in Asia excluding Japan -- a category that includes funds that focus only on China or India -- are down an average 43% through Sept. 30. This is a sharp reversal from last year, when these funds topped the charts with an average return of 48%.
Not Immune to U.S. Pain
When economic problems began in the U.S. last year, many observers thought they wouldn`t much impact countries like China and India, which had rapid domestic economic growth. But it turns out that these countries, too, are being impacted by a global slowdown. That spillover effect, combined with withdrawals from these markets by increasingly risk-averse investors, has sent these markets crashing.
"Globalization and other factors have led to much more interconnectedness in the financial markets," says Kurt Brouwer, a financial planner in Tiburon, Calif.
Cont........
Tracked by: 0 Boarder
Now a days , in this volatile market one can safely save money in bank FDs , now bank is offering more than 10% interest...
Tracked by: 0 Boarder
Well written article Amit. Quite touching....
In reply to:
Beware! You can lose millions in minutes
Posted by : MMB Messenger
Stock market can be an ideal vehicle towards wealth creation, but the same can be really hazardous if you venture into its treacherous waters without any strategy in place.
Tracked by: 0 Boarder
Stock market can be an ideal vehicle towards wealth creation, but the same can be really hazardous if you venture into its treacherous waters without any strategy in place....
Tracked by: 0 Boarder
khilji,
I think my hubby was afraid of my rash driving and bought lots of insurance. lol lol... now whats to be done, i am wondering if i should redeem them.. will they give loans against insurance so i can pay back the loan itself when stocks move up..... pss5588 too was mentoining the same thing....
In reply to:
Investment costs
Posted by :
m_i_khilji
Dear radhika_nandlal,
Investment and Insurance are two completely different things.
One should not consider insurance policies as investment. Rather, one should go for top rated mutual funds, if looking for investment (for retirement, child`s marriage and/or education) etc.
Tracked by: 0 Boarder
Dear radhika_nandlal,
Investment and Insurance are two completely different things.
One should not consider insurance policies as investment. Rather, one should go for top rated mutual funds, if looking for investment (for retirement, child`s marriage and/or education) etc....
In reply to:
Investment costs
Posted by : radhika_nandlal
Okay winwath... will take a look, thanks for the info. Abroad the insurance covers docs fee but here its impossible to find such a medical cover. However thanks and yes the returns are a dismal 2-5% and i feel investing in insurance is a waste... one should periodically redeem and reneter there too. LOL
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