May Newsletter - 2020
- Mitraz Financial
- Jul 2 2020
FINANCIAL NEWSA committee appointed by the Reserve Bank of India (RBI), headed by the chief executive of Indian Banks’ Association (IBA) and consisting of representatives from all stakeholders, except bank customers, has recommended an increase in interchange charges for all transactions carried out on automated teller machines (ATMs) across the country. The committee also wants to cap cash withdrawal limit at Rs.5,000 per transaction and levy charges for any larger amount.The Union government...
April Newsletter - 2020
- Mitraz Financial
- May 26 2020
Financial News SEBI relaxes buyback regulation to enable the quicker raising of funds in times of the coronavirus pandemic. Currently, the buyback regulation disallows fresh raising of capital for a period of 1 year from expiry of the buyback period. SEBI has with immediate effect, reducing the 1 year period to 6 months applicable till Dec 31st 2020.SEBI on April 30th gave a three-month extension till June 30 for liquid funds to comply with the requirement of holding at least 20% of their assets...
Olympics and Investments
- Anup Bansal
- Sep 9 2016
Congratulations to our sportspersons P V Sindhu and Sakshi Malik on their medals and bringing laurels to the country. But more than that, my respect and appreciation to the 118 athletes and countless others who persist despite meagre means and support from the system.A headline from a mainstream newspaper (The Times of India, August 24) that caught my eye - "India stingy during training, splurges after medals won". See attached for a picture from that article. Quoting from the article - "..... It...
Opportunity Cost - Should Investors Pay Attention?
- Anup Bansal
- Jun 2 2014
"Opportunity Cost" of a choice is the value of the best alternative forgone in order to pursue a certain action. In other words, it is the cost incurred by not enjoying the benefit that would be had by taking the second or third etc. best choice available. The concept of opportunity cost comes into play because resources are limited. Resources can be either time or money or both. Often, when people say that they wasted time doing something, what they mean is that their time could have been better...
Stock Market Is Up - What Should I Do?
- Anup Bansal
- Sep 22 2014
Nifty has given an absolute return of 29% since the beginning of this year and relevant questions in every one's mind are should I invest more or should I book profits? Where are the markets headed? Many savvy investors, learning lessons from 2008 crash, do not want to be caught in the downward spiral, if it were to happen in the future. But at the same time, they don't want to be left behind in the participation of the India story especially after the positive sentiment created with the election...
The Hindu Undivided Family
- Aditya Shastri
- Sep 14 2013
The Indian Income tax Act recognises a Hindu Undivided family as a separate taxable assessee No! There is no such distinct tax on families. At least not yet! What this means is that HUF is treated as a separate person just like how companies are treated as separate entities/ assesses.HUF is a family hotchpot which is entitled to the same exemptions and deductions as any other individual taxpayer. Since HUF is taxed as a separate assessee, a basic exemption limit of 2 lakhs is allowed! Further the...
Dynamic Asset Allocation and the Role of Asset Classes
- Anup Bansal
- Jun 8 2013
A regular and fixed monthly investment over the period January 2008 - December 2012 in a well-known debt fund would have given a CAGR (compounded annual growth rate) of 8.43%. If the same amount was split between the debt fund and the NIFTY index through an ETF in a 50:50 split, the CAGR would increase to 9.05%. But if certain adjustments are made in the proportion depending upon the market conditions, the CAGR can be enhanced to 9.55%. For example, when market valuation is comparatively lower then...
Seven Steps in the Process of Investments
- Anup Bansal
- Jan 13 2013
Step 1 - Establish the investor's return and risk objectives from the current financial status, desired goals, risk questionnaire.Step 2 - Establish the investor's constraints - Liquidity, Time Horizon, Taxes etc.Step 3 - Determine investor's strategy for investments based on the return and risk objectives, constraints, suitability of an asset class and investments, historical data and market expectations.Step 4 - Determine investor's asset allocation that is most appropriate for meeting the return...
Determining Your Risk Profile For Investments
- Anup Bansal
- Jul 27 2012
When the markets are going up and up, everyone goes on the bandwagon irrespective of adequate understanding of financial goals, risk appetite and investment objectives. However, when the markets turn around and head downward, the investors are in for a rude awakening. Even the most daring of the investors realize that their risk appetite is lower (and much lower in many cases) than what they perceived it to be.The process of investments-making should not be started without determining the risk appetite...
Competence and Wealth Advisory
- Anup Bansal
- Dec 31 2012
It is a given that competence is required to produce anything valuable, to service clients and in general, to be successful. However, the question that needs to be asked is, is competence demanded and valued by everyone in a profession. Having been trained as an engineer and technology professional, competence and continuous learning are traits that are taken for granted in the engineering and technology industry. Is this true in the Financial Services Industry where an insurance agent and a mutual...
