postaday | wealthymatters

Stick To The Shares Of Private Banks

September 12, 2013 Leave a comment

wealthymatters

The higher interest rates and slower GDP growth imply declining loan growth and rising NPAs in the banking system, most particularly in the cheap state-owned banks.

Current Indian gross NPAs are at 3.7% of total loans, but there are also another 4.6% of loans which are in the restructured category.

So despite the temptation to buy cheap banks on a contrarian basis, stick with the expensive quality private sector banks geared to the consumer space, since it is far from evident that India has passed the worst.

It is also the case that the credit problems are primarily in the corporate and infrastructure related sectors.

Filed under Paper Assets Tagged with HDFC shares, ICICI Shares, investing in shares, postaday

FII Facts

September 12, 2013 Leave a comment

wealthymatters

Foreigners currently own an estimated 22% of Indian equities.

The reason why foreign funds are not exiting India quicker is because they are heavily invested into quality expensive stocks, which are not worth selling at this point of time.

The long-term investment returns for foreign holders of the likes of HDFC or ITC have declined dramatically. Thus, the compound annual average return over five years of an owner of these two stocks in US dollars terms is now only 4% and 20%, respectively, compared with 13% and 30% in rupee terms.

The foreign ownership of Indian government securities is only 1.61% at the end of March, though it is up from 0.88% at the end of March 2012.

Filed under Paper Assets Tagged with foreign ownership of Indian equities, foreign ownership of Indian government securities, long term returns of FIIs invested in Indian equities, postaday

Private Equity Losses In India

September 12, 2013 Leave a comment

wealthymatters

Filed under Paper Assets Tagged with P/E, postaday, Private Equity, Private equity investments in India, private equity losses in India, private equity returns from India

China’s Top Billionaires

September 12, 2013 Leave a comment

Filed under Tidbits Tagged with Billionaires, Chinese billionaires, Hurun Rich List, Jiang Bin, Li Yanhong, Ma Huateng, postaday, Wang Jianlin, Wei Jianjun, Xu Rongmao, Yan Bin, Yang Huiyan, Zhang Jinding, Zing Qinghou

Of Gender Gaps And Glass Ceilings

September 12, 2013 Leave a comment

Good reason don’t you think for women to be more careful of their investments?If women can earn less from employment,it becomes doubly important to set-up side businesses and explore other sources of income and look towards building passive income streams.Just because women earn less,doesn’t mean it costs them less to live.In fact,its just the opposite:just take a look at the cost of comparable men’s and women’s underwear brands and the prices.And fortunately/unfortunately women often live longer and need more savings to fund retirement.