Stock Market Cycle
December 9, 2013 Leave a comment
HUDCO Tax-Free Bonds
December 9, 2013 Leave a comment
I rarely recommend specific financial products as I prefer to put up evergreen content on my blog.However 20 years is a fair length of time and so this recommendation.
I unreservedly recommend the HUDCO Tax-Free bonds Tranche-II,tenure 20 years, for retail investors.The bonds offer 9.01% interest,paid out annually.The interest is not taxable.So it won’t be clubbed with your future income and taxed.
In these inflationary times,there is the fear that the returns from fixed income instruments will not keep up with inflation.However,India s a functioning democracy and inflation does not remain high for decades on end.Witness yesterday’s results from assembly elections in 4 states.Governments pay for the distress caused by price rise.So,if you hold these bonds to maturity you won’t do badly.
Also being a government concern you can be sure of being paid back the interest and capital after 2 decades.
Lastly as the bonds tradable,you have the chance of withdrawing your capital in case of urgent need.
Efficient Gold Investing
December 5, 2013 Leave a comment
In unsettled times, gold remains relevant. It is an asset of the last resort. It comes in handy in times of personal and social crisis. If you have amassed a fortune, it makes sense to geographically disperse it to ensure that all eggs are not in one basket. Moreover gold tends to be a good hedge against a depreciating currency and can be freely bought and stored abroad to be converted to any currency of choice as needed. A further plus is the lower gold rates abroad. So, for readers who have written in to ask about alternatives to BullionIndia, if you can deal with larger quantities of bullion,there is a better option: BullionVault.
The best gold and silver deals are listed on the international professional bullion markets—where most trade and government industries and banks trade—not the Mumbai Wholesale market. But this market only deals gold in 400 oz good delivery bars, which cost around $500,000(3crores) each. The silver bars weigh 1,000 oz. This puts the best prices out of reach of most private individuals. Further good delivery bars are stored in accredited vaults. The vaults have a high minimum monthly charge, so you would need about 15 of these 400 oz gold bars, worth around $7,000,000(43crores), to make it economic for you to open an account yourself. The large starting balance tends to make the system inaccessible to many private customers. With the help of online trading such as BullionVault, you’re able to obtain information from international gold markets and own gold bars. It’s a good thing that you’ll also enjoy cheaper prices in terms of storage. So whether you are purchasing or selling, expect to find top notch international gold prices. BullionVault offers none of the free storage and zero commission on sales that BullionIndia offers. But the small fees are reasonable if you are dealing with larger amounts. You will make back these small expenses in the better rates you get. Also you will be offered priceless security and guarantees. Read more of this post
New Notes For Old
December 4, 2013 Leave a comment
If you are stuck with soiled and mutilated notes,you can get them exchanged and the RBI has prescribed the rules to do so:
RBI terms a  note as soiled when it becomes dirty due to normal wear and tear and also when two pieces are pasted together in such a way that both the pieces actually belong to the same note and form the entire note with no essential features missing. Such notes can be exchanged for full value over the counter at any bank branch. And, as per the RBI’s rule this type of note has to be accepted by the bank branch, even if you are not a customer of the bank.
According to the RBI, a  mutilated note is one of which a portion is missing or which is composed of more than two pieces.For Rs 5/10/20 you get the full value back if the area of the single biggest undivided piece of the note presented is more than 50 percent of the area of the respective denomination. If the biggest area (piece) is less than or 50 percent of the area of the note, you won’t get any money. If your note is of Rs 50 denomination or above, you will get full value of the note if the area of the single biggest undivided piece is more than 65 percent of the area of the respective denomination.But, if the biggest piece is between 40 percent and 65 percent of the area of the respective denomination, then you will get half the value of the note back. And, if the biggest piece is less than 40 percent, then you won’t get any value back and you will have to let go of the money
wealthymatters 