Archive for the ‘income tax’ Category

Points Discussed in Budget :)

  • Excise duty on silver rose to 10%
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  • Surcharge on domestic cos reduced to 7.5% from 10%..
  • Excise duty on oil rose to 10%.
  • Fiscal deficit will be at 5.5% in 10-11, at 4.8% in 11-12 and 4.1% in 12-13
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  • Revised income tax slabs 🙂
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  • Net market borrowing for 2010-11 at Rs 3, 45,010..
  • Extended 1% interest subsidy scheme for affordable housing.
  • Rs 5400 cr of funds allocated for urban development..
  • Defense allocation rose to Rs 147344 cr.
  • Rs 48000 cr allocated for Bharat Nirman.
  • Farmer loans extended for 6 months to June 30th 2011.
  • Allocated Rs1.73 lakh cr for infrastructure..
  • Agriculture credit flow targets at Rs. 375000cr.
  • FDI worth $20.9 bn in April to Dec 2009.
  • Proposed Rs 16500 cr for PSU banks.
  • Challenge for a 9% growth, need to review stimulus.
  • Stay Tuned for More updates 🙂

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    Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

    BUDGET PREVIEW 2011 – Part 1 :)

    At last the much talked topic “BUDGET” among AAM ADMI, CORPORATES or INVESTORS that comes to INDIA – is approaching. “The million dollar question is that will 2010 budget be another year to cheer the economy by giving some relief in indirect taxes, personal income tax and by implementing various schemes to induce social & infrastructure sector in order to maintain high trajectory growth”.

    Generally, it is seen that the incentives which are given in the period of recession or slow down and moreover, when the government in power is about to complete its tenure, are above from expectations. It is seen that budget in two years usually comes good when the Govt. is in the last year of power & in the first year of the rule as a vote of thanks.The mid three years out of the five year term usually remains tight on the policies.

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    For the common man, we expect that Finance Minister may raise the exemption limit in personal income tax & investment limit Under Sec.80C. The reason to our belief:

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    1. The rocketing prices of food articles like sugar, pulses and vegetables have been cutting the pockets of a middle class.

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    2. By coming out with these measures (above mentioned) the government will lower the tax incidence on the common man & will also help it to put the opposition on backfoot.

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    By & large everyone is aware of the level of fiscal deficits globally and many of us know that it is essential to minimize deficits & returning to fiscal consolidation is necessary. The main question is why it is so important. Let’s look at the consequences of high fiscal deficit:

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    A risk to high government borrowings leads to more debt servicing that cuts expenditure on various social welfare schemes, if TAX revenues do not matchup. In the current financial year, out of the 4 lakh crore borrowing, more than 50% has gone towards interest payments.

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    Secondly, the higher government borrowing from market means less availability of funds to private borrowers. In the current Fiscal year, due to dismal credit growth, we haven’t seen pressure on Interest rates. But going forward we foresee normal credit growth in the next financial year. However as the government borrowing is expected to remain at same level in the next fiscal, pressure on interest rate is expected.

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    So, this year the theme of Budget would any way be to maintain economic recovery through investment for building infrastructure rather than funding the expenses/consumption. But at the same time focus will be to bring down the fiscal deficit.

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    The catch here is bringing down deficit by cutting expenditure means risk to growth & the other alternative is to increase revenues. While the direct tax collections are encouraging, on the indirect taxes front the government is still struggling to get desired revenues. This is because after September 2008, when the global financial system collapsed, the government came out with stimulus packages to keep up the desired growth pace.

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    Excise rates since December 2008 had been progressively cut from 16, 12 and 8 per cent to 10, 8 and 4 per cent respectively depending on the product in question. Service tax was also reduced from 12 to 10 per cent.

    How To Get Started in Online Investing? Final Part

    Hello Friends here we come up with an extension of our previous blog “How To Get Started in Online Investing?” Part 1.

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    How To Get Started in Online Investing?

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    In previous blog, we have touched upon the questions, any beginner investors do have in their mind while going for investing.

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    At the same time we had also tried to look in previous blog that what is Online Trading, resources needed first of all to invest online, few steps to start investing online and how SMC ONLINE helps investors in reaping the benefits of online trading.

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    In this Blog, we would try to discuss about what are the further steps an investors need to take once the initial registrations are done with.

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    Once the registration formalities are done with, you would be required to load your online investing trading account with funds.

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    Once Funds would be deposited you would need to look out for the stocks on which you would like to invest prima facie.

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    One thing you should bear in mind that before investing, you should do the in-depth research about the company’s profile, performances and services.

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    In this respect investing firms like SMC ONLINE comes to your rescue usually by helping you with their excellent research support, stocks recommendations and quality statistics.

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    These things are really very important while you invest in buying the shares of any company.

    As a wise investor you should keep your eyes open, and don’t blindly trust anyone.

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    Another very important thing is RISK FACTOR.

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    You’ll have to take the risk in terms of investing your money in the stock market.

    Stock market is a bit similar to gambling.

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    But there is a big difference between the risk and calculated risk.

    For a beginner, you should only go for calculated risk.

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    Don’t put your entire money in terms of buying the shares of a new company, even if the future potential of that company seems very high.

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    Start slowly, understand the market, earn some decent amount of money first of all and then go for big trading.

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    Once you have gotten started, you should start by learning a little bit about chart reading.

    If you can read the charts you will have a good idea what is going on.

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    And as I said earlier, I would conclude this topic by saying that any beginner investor should look for a broker firm that gives good value for money with their commission fees.

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    🙂

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    Stay Tuned for more and more on this 🙂

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    However For More latest Industry,Stock Market and Economy News Updates, Click Here

    Domestic Economy Rolls as Corporate India Offers 40% More Bonus Shares

    Domestic Economy Rolls as Corporate India Offers 40% More Bonus Shares

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    Issue of bonus shares by Corporate India to its shareholders in the first 10 months of the fiscal has shot up 40% over the total during the fiscal ended March ‘09, after declining for two straight years.

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    This interesting jump in bonus issues indicates positive sentiment of the corporate sector to serve a larger equity base.

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    Companies like Britannia, TCS, Reliance Industries, Adani Enterprises, Jindal Steel, Divi’s Lab, JP Associates etc  have  issued bonus shares in the April ‘09-January ‘10 period.

    There are as many as 61 companies which have done so.

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    Jagannadham Thunuguntla, equity head with Delhi-based merchant bank SMC Capitals, said:  “The increase in companies doling out bonus equity to its shareholders reflects that the domestic economy is on the path of recovery.”

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    Corporate India has got the confidence to expand equity capital base and issue bonus shares owing to the fact that they have performed very well this fiscal.

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    Bonus issue is an offer of free additional shares to existing shareholders.

    This is one of the ways of rewarding shareholders, who largely benefit from capital gains.

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    A company may decide to distribute further shares as an alternative to increasing the dividend payout.

    It is also known as a “scrip issue” or “capitalization issue”.

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    The number of companies issuing bonus shares declined more than a quarter after hitting a peak in 2006-07 to 72 firms in 2007-08 and shrunk further to just 44 companies for the year ended March ‘09.

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    This came after three consecutive years of rise in number of bonus issues, when more listed firms announced a bonus bonanza in line with the bull run of the stock market.

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    Bonus shares are issued by companies through capitalization of their free reserves.

    When a company announces bonus issue, it is an indication of its management’s confidence to serve a larger equity base.

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    🙂

    Weekly Update of The Market (08th-12th February)

    Hello Friends, here, we bring you the weekly overview of the Indian as well as of the Global economy and  latest global business and industry updates.

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    Weekly Update of The Market (08th-12th February)

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    After starting the year on a good note & Indices making fresh highs within few weeks many Asian markets have corrected between 7 to 10%.

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    The global sell off over sovereign debt problems in Europe and an unexpected rise in jobless claims in US put investors on the defensive mode.

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    The anxiety about sovereign debt in Greece, Portugal and Spain sparked a sell-off in the Euro & has led strength to US dollar.

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    Foreign investors sell off is an outcome of dollar-carry-trade unwinding as when they borrowed the dollar was cheap & now it is recovering.

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    Investors viewed the markets in year 2010 with confidence in view of recovery gaining momentum is now shaken over the debt problems, nascent economic recovery & confidence of the governments that stand behind the euro.

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    Efforts of China to curb lending preventing overheating in economy also pose a risk to derail the global recovery.

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    Back at home, the effect of turmoil in the international market also made government to think its strategy on ambitious disinvestment programme.

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    🙂

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    Lukewarm response to the NTPC, the much awaited issue managed to get subscription of just 1.2 times on its closing day.

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    The maximum bid of 20.87 crore shares was put by Indian institution under the first time adopted French Auction route.

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    This has challenged the finance Ministry hopes on the proceeds from disinvestments to make up the sliding revenue & rising expenditure.

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    While it looks that PSU disinvestment may not yield desired results on market weakness, the 3G auction i.e. expected to garner Rs. 35,000 crore could be postponed to next fiscal year.

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    🙂

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    The fate of some of the IPO’s like NMDC, Satluj Jal Vidyut Nigam Ltd and Rural Electrification Corporation that are on the disinvestment agenda before March 31, looks tough to sail through, if the stock markets do not rise and big investors do not come back.

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    On the contrary, Banks like Bank of Baroda & Indian Bank that were expected to raise money overseas have put now their plans on hold.

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    🙂

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    The good news from the external sector continued as the data showed a 9.3% annual increase in exports in December to $14.6 billion, a second consecutive month rise.

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    While imports increased by 27.2% from a year earlier to $24.75 billion.

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    Food inflation remained at high levels & rose to 17.56% in the week ended 23 January 2010 from 17.40% in the previous week on the back of rising pulses & potato prices.

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    Markets are likely to take a closer view of the advance estimates on economic growth for the current fiscal ending March 2010 scheduled to be released on Monday.

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    In the days to come an activity in the sectors like railways, fertiliser, textiles, pharma, education, power and infrastructure may be seen on expected positive policy announcements and budgetary sops.

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    It was clearly mentioned last week that world markets are going in downtrend and one should be careful in such a scenario and that one should be moving in cash.

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    Now the markets have taken a very sharp fall last week due to rise in Dollar Index and fall in all asset classes.

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    The coming week might see some counter rally from lower levels.

    Nifty faces resistance between 4900-5000 levels and Sensex between 16400-17000 levels.

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    🙂

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    If we talk about commodity markets then one can see that strengthening dollar and lack of firm global cues had pressurized commodities prices to move southward.

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    Investors are selling riskier assets and putting their money in dollar as a safe haven buying.

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    Debt concerns facing Greece, Portugal and Spain coupled with dollar index which is trading above the mark of 80 is most likely to compel commodities to trade lower.

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    French and euro zone GDP, USD advance retail sales, USD U. of Michigan Confidence will give further direction to commodities.

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    Investors should keep an eye on gold – silver ratio.

    It was 58:1 few months back, now reached to 67:1 on MCX, heading towards the level of 70:1.

    It is demonstrating more selling in silver.

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    🙂

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    Stay Tuned for More on weekly updates.

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    Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

    Moneywise…Be Wise ;)

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    If you find yourself asking the question –

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    Why should I Save ?

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    Why should I Invest ?

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    Where do I Invest ?

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    Who would Guide me to take informed decision on my Investments ?

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    …then look no further !

    Why SMC?

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    SMC Group, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

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    SMC Group, having rich experience of more then two decades in financial markets, is one of the largest & most reputed investment solutions company that provides a wide range of services to its client base of more than 5, 50,000 clients with presence in more then 1500 cities.

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    SMC Online, an unit of SMC Group, is one stop financial investment portal for investor’s all financial needs.

    Investors can trade online in Equities, FNO, Currency Futures, Commodities, apply online for IPOs, and invest online in Mutual Funds.

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    SMC is :

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    a) 4th Largest broking house of India in terms of trading terminals (Source: Dun and Bradsheet, 2008)

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    b) 5th largest distributor of Initial Public Offering (IPOs) in retail (Source: Prime Data Ranking)

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    c) Awarded ‘Fastest Growing Retail Distribution Network in Financial Services’ (Source: Business Sphere, 2008)

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    d) Recipient of ‘Major Volume Driver Award’ from BSE for last three years consecutively.

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    e) Nominated among the top three in the CNBC Optimix Financial Services Award 2008 under National Level Retail Category.

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    f) One of the largest Proprietary Arbitrage Desk doing risk free arbitrage in equities & commodities.

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    g) Commanding turnover of more then 3% in equity market, 4% in commodity market and 10% in DGCX.

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    h) Transparent and professional management.

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    j) Relentless focus on investor care.

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    k) World class in-house research facilities providing research support to investors.

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    l) All financial products and services under one roof.

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    Next Blog we would try to read more about the other SMC’s investment products and services.

    Stay Tuned for more on this 🙂

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    To know more about the SMC Products and Services, click here.

    Set Up New Financial Plans After A Divorce !!

    Set Up A New Financial Plans After A Divorce

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    You need to do long term financial planning when you are going through a divorce.

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    It’s important that you recover from the split by assessing your situation as singles and setting up new financial plans with a focus on longevity.

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    Here are five simple steps for building your financial future after a divorce:

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    1. Start with a plan.

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    Take a look at your finances before the divorce and then subtract what you’ve lost to give you a good perspective on your fiscal situation.

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    Be realistic with yourself and set a budget that you can easily manage with your new single status.

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    2. Check your credit.

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    Maintaining your credit is an important step in walking away from a divorce financially intact.

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    Examine your credit reports and ensure that any name changes or card closures are accurate and taken care of.

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    3. Ensure your retirement.

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    Confirm that all of your retirement arrangements are intact and that any assets or funds you are entitled to have been taken care of.

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    Division of savings and accounts should be paramount in your review.

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    4. Obtain the necessary insurance.

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    Examine your insurance policies and make sure that you and your property are still covered.

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    5. Review your taxes.

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    Understanding the tax ramifications of your divorce is a key part of planning for your financial future.

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    Confirm that all tax responsibilities between you and your spouse are coordinated appropriately.

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    🙂

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    Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

    Morning News Capsules – 29th Jan 2010

    Hello Friends, here, we bring you the latest updates from the Indian market and Industry.

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    Latest updates from the Indian market and Industry

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    NEWS CAPSULES

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    India’s food price index rose 17.40 percent in the 12 months to Jan. 16, rising for the first time after falling for three consecutive weeks, while the fuel index was up 5.70 percent.

    Bharat Heavy Electricals Ltd (BHEL), the country’s largest power equipment manufacturer, signed a joint venture (JV) deal with Madhya Pradesh Power Generation Company Ltd (MPPGCL) for setting up a 1,600-Mw supercritical thermal power plant in Khandwa district.

    • State-run Hindustan Petroleum Corp plans to invest Rs 25,000 crore to set up a refinery with an annual capacity of 15 million tonnes a year on the west coast.

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    The new refinery may be located anywhere between Mumbai and Goa on the western coast and is being mulled to make up for the space constraint the Mumbai refinery faces.

    HCL Technologies said it has received a contract worth around Rs 231 crore from UK-based defence equipment maker Meggitt for providing engineering services.

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    Meggitt signs $50 million (around Rs 231 crore) global engineering transformation services agreement with the company’s engineering and R&D services (HCL ERS) division.

    Tata Steel said its net profit on a standalone basis for the quarter ended December 31 more than doubled to Rs 1,190 crore against Rs 466 crore a year ago.

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    The company’s profit grew on the back of higher demand for steel from automakers and builders.

    Sales for the company grew by 33 per cent to Rs 6,307 crore in the period.

    Jindal Steel & Power (JSPL) said its consolidated net profit declined by 3.20 per cent to Rs 874.35 crore for the third quarter ended December 31, compared to the same period corresponding fiscal.

    Cipla has posted a 29 per cent increase in net profit at Rs 289 crore for the quarter ended December 31, 2009.

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    The company had registered a profit of Rs 223 crore in the corresponding quarter of the previous financial year.

    Bharat Petroleum Corporation (BPCL) today reported a fall of 52.6 per cent in net profit at Rs 379.09 crore for the third quarter of 2009-10.

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    It had a net profit of Rs 799.84 crore in the year-ago period.

    Cairn India today reported a 23 per cent rise in net profit to Rs 291 crore in the third quarter.

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    The company had a net profit of Rs 290.96 crore in October-December compared with Rs 236.42 crore in the corresponding period previous fiscal.

    • An increase in total expenditure, coupled with a heavy deferred tax burden, pulled down the consolidated net profit of Tata Tea Ltd by 77 per cent to Rs 92.23 crore in the quarter ended December 31, 2009.

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    The company had clocked a profit of Rs 396.12 crore in the corresponding period in the previous financial year.

    🙂

    Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

    Mutual Funds : Marginalise Your Investment Risk

    Hello Friends here we come up with another write up on “SMC Gyan Series”.

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    Mutual Funds : Marginalise Your Investment Risk

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    Topic is “Mutual Funds : Marginalise Your Investment Risk
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    Mutual funds are the best investment tool for the retail investor as it offers the twin benefits of good returns and safety as compared with other avenues such as bank deposits or stock investing.

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    Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit.

    Keep in mind the points listed below and you could at least marginalize your investment risk:

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    1) Past performance –

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    While past performance is not an indicator of the future it does throw some light on the investment philosophies of the fund, how it has performed in the past and the kind of returns it is offering to the investor over a period of time.

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    Also check out the two-year and one-year returns for consistency.

    How did these funds perform in the bull and bear markets of the immediate past?

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    Tracking the performance in the bear market is particularly important because the true test of a portfolio is often revealed in how little it falls in a bad market.

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    🙂

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    2) Know your fund manager

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    The success of a fund to a great extent depends on the fund manager.

    The same fund managers manage most successful funds.

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    Ask before investing, has the fund manager or strategy changed recently?

    For instance, the portfolio manager who generated the fund’s successful performance may no longer be managing the fund.

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    🙂

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    3) Does it suit your risk profile?

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    Certain sector-specific schemes come with a high-risk  high-return tag.

    Such plans are suspect to crashes in case the industry loses the market men fancy.

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    If the investor is totally risk averse he can opt for pure debt schemes with little or no risk.

    Most prefer the balanced schemes which invest in the equity and debt markets.

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    Growth and pure equity plans give greater returns than pure debt plans but their risk is higher.

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    🙂

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    4) Read the prospectus

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    The prospectus says a lot about the fund.

    A reading of the fund’s prospectus is a must to learn about its investment strategy and the risk that it will expose you to.

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    Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.

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    But remember that all funds carry some level of risk.

    Just because a fund invests in does not mean it does not have significant risk.

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    Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you.

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    🙂

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    5) How will the fund affect the diversification of your portfolio?

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    When choosing a mutual fund, you should consider how your interest in that fund affects the overall diversification of your investment portfolio.

    Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk.

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    🙂

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    6) What it costs you?

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    A fund with high costs must perform better than a low-cost fund to generate the same returns for you.

    Even small differences in fees can translate into large differences in returns over time.

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    Finally, don’t pick a fund simply because it has shown a spurt in value in the current rally.

    Ferret out information of a fund for at least three years.

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    The one thing to remember while investing in equity funds is that it makes no sense to get in and out of a fund with each turn of the market.

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    Like stocks, the right equity mutual fund will pay off big — if you have the patience.

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    Similarly, it makes little sense to hold on to a fund that lags behind the total market year after year.

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    🙂

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    SMC Global Securities : Money Wise Be Wise !