December 2008 - Posts - Simple Equation

December 2008 - Posts

Investment Prophecy for 2009

Posted by Harish Rao at 
While doing some crystal ball gazing for 2009, I thought about a few likely scenarios (may be proven unlikely) that may confront us over the next 12 months. 1. The Equity market may drift along the 9000-10000 Sensex band with a few periods of excessive volatility (going down to 7000 or rising to 12000). This scenario would unsettle most investors, who...

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Where are the customers’ yachts?

Posted by Harish Rao at 
This is the title of a 1955 book based on a question posed by a visitor to Wall Street on seeing the yachts owned by Wall Street brokers, bankers and investment advisors. Recently a friend of mine sent me a SMS with an interesting tidbit. A couple of investment advisors we knew, featured in a list of India's highest paid executives. Though I have...

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Be careful, very careful

Posted by Harish Rao at 
Three very unsettling events unfolded over the past few days. The Madoff Ponzi scheme, the bail-out to the real estate sector and finally the attempted heist in Hyderabad. All three bring out - in varying intensity - the worst facets of modern day business : greed, lack of regulatory oversight, vested interests, abdication of responsibility. The Madoff...

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Real Estate Mutual Funds….Now?

Posted by Harish Rao at 
Real Estate Mutual Funds (REMFs) received the nod from the Finance Ministry earlier this year and the Securities and Exchange Board of India (SEBI) had infact released it's notification on April 16 th , 2008. Preliminary perusal of the notification shows that SEBI has framed practical rules and regulations after much thought. Some of the highlights...

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You know it’s a recession in India when…

Posted by Harish Rao at 
The technical indicator of a recession is two consecutive quarters of negative economic growth, as measured by a country's Gross Domestic Product (GDP). By no stretch of imagination is India witnessing a recessionary phase. However, I thought of just how much life would change if indeed we were to experience a recession. Letting my imagination run...

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The Mutual Fund AUM riddle

Posted by Harish Rao at 
AUM is pronounced OM in the fund management industry. Why not? It is the most important metric in the fund management industry. AUM is Assets Under Management and is usually expressed in Crores of Rs. The figure is provided by Asset Management Companies (AMCs) to AMFI (Association of Mutual Funds in India) on the first business day of every subsequent...

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