February 2009 - Posts - Simple Equation

February 2009 - Posts

New Pension Scheme – Small Step, Giant Leap

Posted by Harish Rao at 
Much like Neil Armstrong heralded a new era of vigour and adventure into space travel with his moon mission and immortal words ‘ That's one small step for man, one giant leap for mankind', PFRDA has set into motion a process of significant investment implications. The Pension Fund Regulatory Development Authority of India (PFRDA) is the regulator...

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Variable Load Structure for Mutual Funds

Posted by Harish Rao at 
The Securities and Exchange Board of India (SEBI) is mulling introduction of a variable load structure for mutual funds in India. This is a game changing initiative which can have several ramifications for investment management in general and mutual funds in particular. SEBI has by and large been an excellent regulator. Most regulations, atleast concerning...

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Disturbing Signals from Mutual Fund Data

Posted by Harish Rao at 
Data - especially equity flows - from mutual funds are a good indicator of just what the Indian retail investor's mood is right now. You guessed right - the mood is overwhelmingly risk-averse. Data released by the Association of Mutual Funds in India (AMFI) shows that Net inflows (Purchases - Redemptions) in 2008 was 3088 crores, as compared to...

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Five items in my investment wishlist

Posted by Harish Rao at 
The financial services industry in India is presently in an inert state. But, while in full flow, it is one of the most exciting industries to be part of. As one scans the investment universe, there are quite a few things that can dramatically improve the overall investment milieu and make investing a lot more safe, easier and equitable. So, here goes...

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Tata Capital NCDs – Not a bad idea, sirji

Posted by Harish Rao at 
Tata Capital , a wholly owned subsidiary of Tata Sons has floated its public issue of Non Convertible Debentures (NCD). The size of the issue, alongwith oversubscription, is 1500 crores and has a tenor of 5 years. Allotment would be made on a first-come-first-served basis. Tata Capital is a Non-Deposit taking Non Banking Financial Company (NBFC). It...

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The Thirty Day Rule and 99 other ways to save money.

Posted by Harish Rao at 
The slowdown is truly upon us. Almost everything (except IPL auction prices) is being discounted or marked down. It takes a brave heart to announce a price increase. Those that do it, invariably do it with slyness and cunning. For example, the tea packet I buy has reduced quantity from 500 grams to 490 grams. This is a crooked and dishonest way to increase...

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LIC's Jeevan Aastha : a question of 8000 crores

Posted by Harish Rao at 
Reports from various sources indicate that LIC's Jeevan Aastha has collected over 8000 crores. My congrats to LIC on this stupendous achievement. Very impressive when you consider that the net inflow into equity mutual funds was Rs. 3088 crores in 2008. Talk about risk-appetite deserting Indians ! This proves quite a few things : a. Mediocre 'guaranteed'...

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