For Whom Wealth Matters
August 5, 2013 Leave a comment
Here is an Assocham finding:
In an average salary structure of Rs 40,000 per month, the amount available for discretionary spending is not more than Rs 17,000 as average employee shells out over Rs 6,000- Rs 8,000 on housing loan or rent, Rs 5,000 loan on cars or two wheelers, Rs 7,000-10,000 on education cost and FMCG,
How do you compare?How much of your income goes to create assets?Do you buy liabilities which create more expenses in time?
August 5, 2013 Leave a comment
Here is a graphical representation of the benefits of opting for the direct plans of mutual funds.
So think twice and do the math before expecting your MF adviser to work for free.There are no free lunches and you will pay one way or the other. So do the math and see what works better for you,paying a fee to your adviser directly or expecting your adviser to be paid by the asset management company.
August 2, 2013 Leave a comment
If you tender your shares in an open offer, if you have held them for over a year , you will have to pay 20% capital gains tax with indexation benefit, and 10% tax without indexation .If you tender shares within a year, you will have to pay income tax as per your tax slab.
If shares are sold in the open market after a year, they do not attract any capital gains tax, but if they are sold before a year, they attract 10% capital gains tax.Shares sold via the bourses however are subject to the STT.
August 1, 2013 Leave a comment
Historical data shows that holding company shares might not be good for minority shareholders as the market traditionally values holding companies — an entity that controls a clutch of businesses — at a discount to their book value.
ET looked at valuations of nine holding companies listed on Indian stock exchanges. Specifically, they looked at one metric: the price-to-book value ratio. Book value is the total value of a company’s assets less intangible assets (like trademark or intellectual property) and liabilities. For seven of these nine holding companies, this ratio was less than 1, indicating under-valuation. The average discount-to-book value was 40%, and ranged from 4% (EID Parry) to 93% (UB Holdings). Aditya Birla Nuvo and Tata Investment Corporation were the two exceptions (See table). Read more of this post
July 29, 2013 2 Comments
What’s Mine Is Yours: The Rise of Collaborative Consumption by Rachel Botsman and Roo Rogers is a book well worth reading.
In the 20th century humanity consumed products faster than ever, but as we now realize this way of living is no longer sustainable. This book shows how technological advances are driving forms of ‘collaborative consumption’ which will change forever the ways in which we interact both with businesses and with each other.
The average lawn mower is used for four hours a year. The average power drill is used for only twenty minutes in its entire lifespan. The average car is unused for 22 hours a day, and even when it is being used, there are normally three empty seats. Surely there must be a way to get the benefit out of things like mowers, drills and even cars, without having to carry the huge up-front costs of ownership? There is indeed. Collaborative consumption is not just a buzzword, it is a new win-win way of life.
This insightful and thought-provoking book by Rachel Botsman and Roo Rogers is an important and fast-moving survey of the dramatic changes we are seeing in the way we consume products. Many of us are familiar with freecycle, eBay, couchsurfing and Zipcar. But these are just the beginning of a new phenomenon. Rachel Botsman and Roo Rogers have interviewed business leaders and opinion makers around the world to draw together the many strands of Collaborative Consumption into a coherent and challenging argument to show that the way we did business and consumerism in the 20th century is not the way we will do it in the 21st century. Read more of this post
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