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Sovereign Gold Bonds – I’ll Pass


wealthymattersThe first I heard of the Sovereign Gold Bonds was on Dhanteras day when my bank tried to get me to purchase some of them.At the time , I was on my way out shopping  and my first thought was: Do I really want to postpone my gold purchases for a year to earn an additional 275 rupees per Rs10,000/-?Yaar, I could haggle with the jeweller and easily get that much and more off my purchases. And then, I love wearing jewellery.Do I want to give up on that pleasure and experience, multiple times a year, for as little as 275 rupees? That too in the days when one simple restaurant meal, or a taxi ride might cost that much and more? The answer then was an easy “NO”.

Later, I was to learn worse about these bonds. They are priced higher than the price of physical gold on the street. So there goes any notional interest a person might have earned! Read more of this post

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On What Do India’s Wealthy Spend Their Money?


wealthymattersWhat do India’s wealthy like to buy with their buckets of money?

Customized holiday packages, luxury watches, diamonds and jewelry, and home electronics (including fancy mobiles and high-end cameras) — in that order.They buy luxury cars, too, but not Ferraris and Lamborghinis as one would expect. More like Honda and Toyota, according to the study conducted by Kotak Wealth Management and rating and research firm Crisil Ltd.The wealthy here are defined as households with a minimum average net worth of 250 million rupees ($5.6 million) for the financial year ended March 31, 2011.

Researchers interviewed 150 super-wealthy individuals in India’s major cities of Mumbai, Delhi and Bangalore, and others like Hyderabad, Ahmedabad and Chennai to put together the study. Senior personnel at major global luxury brands, art gallery owners, product dealers and industry body representatives were also interviewed. Read more of this post

Shopping For NCDs on the Stock Market


wealthymatters.comBuying 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.

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