img

Olympics and Investments

  • Anup Bansal
  • Sep 9 2016
Estimated reading time: 2 minutes 21 seconds

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...

img

Opportunity Cost - Should Investors Pay Attention?

  • Anup Bansal
  • Jun 2 2014
Estimated reading time: 4 minutes 17 seconds

"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...

img

Stock Market Is Up - What Should I Do?

  • Anup Bansal
  • Sep 22 2014
Estimated reading time: 3 minutes 5 seconds

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...

img

The Hindu Undivided Family

  • Aditya Shastri
  • Sep 14 2013
Estimated reading time: 4 minutes 28 seconds

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...

img

Dynamic Asset Allocation and the Role of Asset Classes

  • Anup Bansal
  • Jun 8 2013
Estimated reading time: 2 minutes 59 seconds

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...

img

Seven Steps in the Process of Investments

  • Anup Bansal
  • Jan 13 2013
Estimated reading time: 0 minutes 45 seconds

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...

img

Determining Your Risk Profile For Investments

  • Anup Bansal
  • Jul 27 2012
Estimated reading time: 2 minutes 56 seconds

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...

img

Competence and Wealth Advisory

  • Anup Bansal
  • Dec 31 2012
Estimated reading time: 3 minutes 6 seconds

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...

img

"Bucketizing" Your Investments

  • Anup Bansal
  • Mar 1 2012
Estimated reading time: 3 minutes 51 seconds

"Bucketizing" is not a word that can be found in English dictionaries so let me explain the term. I have coined the term "Bucketizing" for the process of allocating dedicated investments to a particular financial goal. For example, an individual may buy a Child Plan that provides both insurance as well as funds for the child's education when she turns 17 years old. Similarly, there may be dedicated investments for one's retirement plan. Hence, an individual plans by creating "Investment Buckets"...

img

The Curious Case of Real Estate Investments

  • Anup Bansal
  • Sep 13 2012
Estimated reading time: 4 minutes 52 seconds

Rs. 8 lakhs invested in a piece of land in 1990 in a non-metro city is worth Rs. 3 Cr today. We all have been reading and hearing about the phenomenal returns, that too risk-free (I will take that with a grain of salt), in real estate investments. Let us put things in perspective. The CAGR (Compounded Annual Growth Return) is 17% per annum on this investment. Now same 8 lakhs invested in the Sensex in 1990 - the index had touched 1000 first time that year - would have fetched Rs. 1.42 Cr today. Though...

Subscribe

Enter Your Name

This Email is registered already.

Please Enter Email

The email address is invalid

Disclaimer - Mitraz is NOT a Loan Provider.

It is a Wealth Management & Advisory Firm.