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Investing In Turnaround Stocks


wealthymatters

Turnaround stocks are stocks of companies that have gone through a phase of weak financial performance and whose share prices have been beaten down,but are likely to rise again as companies change their business strategy to become profitable again.

Now,if you are the bargain minded sort,you are bound to be attracted to this idea of identifying gems going cheap,holding them long,and having your wisdom and foresight validated by tidy profits …..!

But do contain your eagerness and look before you leap.Investing in turnaround stocks can yield spectacular returns to investors willing to buy into them when there literally seem be few takers and hold on,but then again wrong calls can lead to permanent loss of capital when the anticipated turnaround doesn’t  happen or gets stalled. Read more of this post

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The New Case For FDs


wealthymattersYou can’t run a shop without cash in the till. And in the same way you can’t get through life smoothly without a certain cushion of readily accessible cash that you can dip into as per your need. For quite a while now, readily accessible money meant various types of bank accounts, stocks and mutual funds that you could cash in fast whenever needed even as they continued to grow quietly in the background.

However, this year’s budget has changed the situation a bit on account of the 2 quotes below:

The return on investment in equity is already quite attractive even without tax exemption. There is therefore a strong case for bringing long term capital gains from listed equities in the tax net. However, recognising the fact that vibrant equity market is essential for economic growth, I propose only a modest change in the present regime. I propose to tax such long term capital gains exceeding Rs1 lakh at the rate of 10% without allowing the benefit of any indexation. Read more of this post

Dynamic Asset Allocation Funds – For When You Need To Sit On Your Hands


wealthymatters

I’ve had my financial habits called “inertia”. So for most of the time I must be doing somethings right. There is nothing like hyperactivity and  thrill-seeking to destroy your wealth or the capacity for wealth. Read more of this post

Muhurat Trading


 

The  festival of Diwali is associated with Laxmi, the goddess of wealth; it is considered an auspicious time for spending and earning money. The customary trading tradition on the day of Diwali is unique to India where markets open for a short duration in the evening to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. This Muhurat Trading is a centuries old tradition. The day holds significance as it marks the beginning of the New Year, as per the Marwari tradition.Also the Gujarati new year begins a day after Diwali.

More often than not, the benchmark indices have ended higher, albeit by a small margin. The time for trading is specified by the exchanges and usually takes place for about an hour.This year,the  Muhurat trading  happened on 13 November between 3:30pm and 5:15pm.

Muhurat trading happens not only in stock markets but also commodity exchanges. Major commodity exchanges like MCX, NCDEX and others were open for trade from 5:30 pm to 8pm. Read more of this post

Safer Bets


 The return of capital is more important than the return on capital.So it is important to avoid the pump and dump operations of promoters and market operators. Here is a list of safer promoters compiled by jigs of  BSE India Market View

Indian promoter groups:

Birla(founded in 1861),
TATA (founded in 1868),
Dabur(1884),
Kirloskar(1888),
Godrej (1897),
Murugappa (1900),
TVS(1911),
Singhania(1918),
Bajaj(1926),
Ramco(1938),
Mahindra(1945),
Hero (1956),
Kalyani(1964),
HDFC(1977),
Jubilant (1978). Read more of this post
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