postaday2011 | wealthymatters

Shopping For NCDs on the Stock Market

July 6, 2011 7 Comments

wealthymatters.com Buying an NCD at an IPO when interest rates are high and holding it to maturity is a pretty sound idea.But buying NCDs in the secondary market can be pretty profitable too.

The prices of NCDs vary with changes in the prevailing interest rates.So careful shopping when prices fall as interest rates rise and holding on till maturity is more profitable.

If a person is good at figuring out which way the interest rates will move,he could buy NCDs cheap and exit them when their prices peak.This could potentially increase returns.

Investing in NCDs

July 4, 2011 4 Comments

A non-convertible debenture is a fixed income instrument where the issuer agrees to pay a fixed rate of interest to the investor. An NCD cannot be converted into equity of the issuing company unlike convertible debentures.NCDs are good substitutes for fixed deposits,especially company deposits.

Debentures are of two types secured and unsecured. The debentures with a “charge” on the assets of the issuer are called secured debentures. So in case of a default by the issuer, the secured debenture holders are paid by selling the assets against which the charge was created. Secured NCDs offer lower interest than their unsecured counterparts. Read more of this post

Filed under Paper Assets, Theory Tagged with bond, call option, capital appreciation, Company Deposits, credit rating, cumulative interest, debenture, default, deposit accepting company, face value, Fixed Deposits, Fixed Income Instruments, indexation, interests, issuer, Larsen and Toubro Finance, liquid, listed on stock exchanges, long term capital gain, maturity, National Stock Exchange, NCD, non convertible debenture, NSE, postaday2011, put option, RandomBlog2011, regular interest payouts, secured debentures, Shriram Transport Finance, Tata Capital, Tax Deduction at Source, Tenure, trading history, unsecured debentures, yield curve

Bye Bye Chaar Anna

June 29, 2011 1 Comment

wealthymatters.com The 25 paise coin, popularly called chaar anna , has cease to be legal tender today.It has passed into history just like the 1,2,3,5,10 & 20 paise coins.In a way it is the death of an era.It makes me a bit sad. Read more of this post

Filed under Tidbits Tagged with 24 paise, anna, chaar anna, decimal series, decimalization of the rupee, Inflation, legal tender, naya paisa, negative seigniorage, pies, postaday2011, RandomBlog2011, rupee

Some Inflation Figures

June 29, 2011 3 Comments

Here are some inflation figures from the report ‘Higher inflation cost households Rs 5.8 trillion’from CRISIL.They can be plugged into the calculator here: https://wealthymatters.com/2011/01/22/inflation-calculator/

Hope this helps with your financial planning.

‘The study shows that growth of private consumption expenditure in nominal terms increased to nearly 17 per cent per year during this period from 14 per cent in the preceding 3 years mainly due to the rise in food inflation.’

‘The rise in inflation to 8 per cent per year during 2008-09 to 2010-11 from 5 per cent in the preceding 3 years Read more of this post

Filed under Tool Kit Tagged with consumer durables, consumption expenditure, CRISIL, discretionary income, food inflation, high income group, Inflation, Inflation Calculator, inflation expectation, inflation figures, lower prices, middle income group, non food inflation, postaday2011, price decline, price rise, prices, RandomBlog2011, wholesale price index, WPI basket

India And Gold

June 28, 2011 3 Comments

wealthymatters.com The picture on the right might be what comes first to mind when a lot of people think about India and gold–A bride decked out in gold ornaments.

Here interesting facts about Indians and gold:

India is the world’s largest buyer of gold, accounted for 32% of the global demand in 2010.

India’s annual consumption demand has risen from an average of 300-400 tonnes (1998-2004) to about 900-1,000 tonnes in the last three years (2008-2010).

India’s demand for gold rose by 106% Y-o-Y,in 2010, substantially higher than the 60% recorded by the second-fastest growing market- China.

Indians invest over 11% of the gross savings in gold, against less than 2% by the Chinese. Read more of this post