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Showing posts from September, 2012

Understanding Market Capitalization

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Let's say in a room there are 100 boxes, each priced at Rs 100. What would be the value of all the boxes? It would amount to Rs100 x 100 boxes = Rs 10,000 If we replace the “boxes” with “shares of a company”, then according to the above working, the cost of all the shares of the company would be Rs 10,000, which is nothing but the total value of outstanding shares or market capitalization of the company. However, this brings us to another term, “OUTSTANDING SHARES”. OUTSTANDING SHARES are shares currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. However, one should note that shares that have been repurchased by the company are not considered as a part of outstanding shares. Now, if the price of the boxes were to go up due an increase in demand, the total prices of the entire set of boxes would go up. Similarly, when the value of the shares goes up, so does the market capit...

Fw: Prof. Simply Simple - Understanding Difference between Monetary and Fiscal Policy

------Original Message------ From: Tata Mutual Fund To: kathpalia.rajesh@gmail.com ReplyTo: professor@tataamc.com Subject: Prof. Simply Simple - Understanding Difference between Monetary and Fiscal Policy Sent: Aug 14, 2012 2:03 PM Click Here to view this mailer on the web. If one reads the financial papers, especially in times when the economy is up against challenges to its growth, one often encounters the terms: a) Monetary Policy     b) Fiscal Policy   Let's try and make a distinction between these terms. Both “Monetary Policy” and “Fiscal Policy” are used to regulate the economy, i.e. to either increase or decrease the pace of economic growth to some extent. What is vital for us is to know is how they are used. Monetary Policy is a tool that is used by the Central Bank (in case of India, it is the Reserve Bank of India) and they do this by way of regulating the interest rates. If the need is to stimulate the economy a...

Know Your Customer - Mutual Fund Investments

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Dear Investor, Greetings from Tata Asset Management Limited. As you are aware, uniform Know Your Customer (KYC) is implemented across all intermediaries of SEBI effective 1st Jan 2012 in accordance with SEBI circulars dated 22nd Aug 2011, 5th Oct 2011, 2nd Dec 2011 and 23rd Dec 2011. INDIVIDUAL INVESTORS WITH CVL KYC PRIOR TO 1st Jan 2012 We wish to inform that if you are an individual investor and have done KYC with CVL prior to 1st Jan 2012, then you are requested to fill up Section A and B in the enclosed KYC details Change form (CVL-KRA KYC Change Individual Form) and submit the same to the nearest Cams or Karvy offices. Based on representation by AMFI, SEBI has permitted mutual funds time up to 30th Nov 2012 to obtain missing/not available KYC information and also complete In-Person Verification (IPV). Therefore, mutual fund investors will need to complete the above formalities in order to enable them to invest in a new mutual fund post 30th Nov 2012. NON INDIVI...

Fw: How do I know that I’m invested in the wrong mutual fund?

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Sent from BlackBerry® on Airtel From: OneMint <onemint@gmail.com> Sender: noreply+feedproxy@google.com Date: Thu, 13 Sep 2012 01:02:00 +0000 To: <kathpalia.rajesh@gmail.com> Subject: How do I know that I'm invested in the wrong mutual fund? How do I know that I’m invested in the wrong mutual fund? How do I know that I’m invested in the wrong mutual fund? Posted: 12 Sep 2012 04:12 PM PDT Sorabh had posted a fairly lengthy comment a few days ago, and I really don’t know the answer to all his questions or even the primary one which was how you go about reviewing your mutual fund portfolio but I do have some thoughts (which are probably fairly obvious to everyone) on how to identify a mutual fund that you should get out of. First, here is the comment (edited) for context: Sorabh September 2, 2012 at 12:06 am [ edit ] Hi Manshu, Can you do a write up or invite someone to do a write up on "How to R...

Fw: How did CAG reach the figure of 1.86 lakh crores?

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Sent from BlackBerry® on Airtel From: OneMint <onemint@gmail.com> Sender: noreply+feedproxy@google.com Date: Mon, 20 Aug 2012 01:03:04 +0000 To: <kathpalia.rajesh@gmail.com> Subject: How did CAG reach the figure of 1.86 lakh crores? How did CAG reach the figure of 1.86 lakh crores? How did CAG reach the figure of 1.86 lakh crores? Posted: 19 Aug 2012 04:57 PM PDT CAG’s report on coal allocation was the big news last week, and the figure of Rs. 1.86 lakhs got a lot of attention as you would have expected it to. It has now become a regular feature of CAG reports to have a massive number which represents the loss to exchequer and I was curious to see how they arrived at the number for this report. The full report is available at this link , and the calculation that leads to the notional loss is present in chapter 4 of the report which can be downloaded separately from that page. I think the report does a good ...

Fw: Best Company Fixed Deposits – Returns-Wise & Safety-Wise – Be Wise

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Sent from BlackBerry® on Airtel From: OneMint <onemint@gmail.com> Sender: noreply+feedproxy@google.com Date: Tue, 21 Aug 2012 01:01:53 +0000 To: <kathpalia.rajesh@gmail.com> Subject: Best Company Fixed Deposits – Returns-Wise & Safety-Wise – Be Wise Best Company Fixed Deposits – Returns-Wise & Safety-Wise – Be Wise Best Company Fixed Deposits – Returns-Wise & Safety-Wise – Be Wise Posted: 20 Aug 2012 03:42 PM PDT This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in Continuous volatility in the stock markets coupled with bad macro-economic data, high inflation numbers and unclear government policies have forced many investors to shift their investments from equity to fixed income instruments like tax-free bonds, non-convertible debentures (NCDs), bank fi...

Fw: Part 3: Futures and Options – How do Options work?

------Original Message------ From: OneMint Sender: noreply+feedproxy@google.com To: kathpalia.rajesh@gmail.com Subject: Part 3: Futures and Options â€" How do Options work? Sent: Aug 27, 2012 6:34 AM Part 3: Futures and Options â€" How do Options work? Part 3: Futures and Options â€" How do Options work? Posted: 26 Aug 2012 03:36 PM PDT There are two types of Options that you can trade in â€" Call Options and Put Options. You buy Call Options when you think a share is going to go up in value and you buy Put options when you think a share is going to go down in value. This means that the value of your Calls go up as the stock rises, while the value of your Puts go up when your share falls. For a retail investor, there are three common reasons for owning an Option. Why own an Option? 1. Speculation: Options are a way to take a short term speculative position given that they can’t be held for very long. 2. Going Short: You can’t borrow ...

Fw: Now Get Live Subscription Numbers for IPOs of NCDs and Tax-Free Bonds

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Sent from BlackBerry® on Airtel From: OneMint <onemint@gmail.com> Sender: noreply+feedproxy@google.com Date: Mon, 10 Sep 2012 01:01:45 +0000 To: <kathpalia.rajesh@gmail.com> Subject: Now Get Live Subscription Numbers for IPOs of NCDs and Tax-Free Bonds Now Get Live Subscription Numbers for IPOs of NCDs and Tax-Free Bonds Now Get Live Subscription Numbers for IPOs of NCDs and Tax-Free Bonds Posted: 09 Sep 2012 03:08 PM PDT   This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in Markets for corporate non-convertible debentures (NCDs), mostly issued by NBFCs, and tax-free bonds issued by public sector undertakings (PSUs) like NHAI, PFC, REC, IRFC and HUDCO have been expanding at a very rapid pace. With more and more awareness spreading about them, investors are getting interested in t...

Fw: Currency Composition of India’s External Debt

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Sent from BlackBerry® on Airtel From: OneMint <onemint@gmail.com> Sender: noreply+feedproxy@google.com Date: Tue, 11 Sep 2012 01:04:06 +0000 To: <kathpalia.rajesh@gmail.com> Subject: Currency Composition of India's External Debt Currency Composition of India’s External Debt Currency Composition of India’s External Debt Posted: 10 Sep 2012 05:50 PM PDT I wrote about India’s external debt over a year ago, and the Ministry of Finance has released a new report on India’s external debt that gives a good opportunity to revisit the topic, and look at some numbers again. For a short period earlier this year, falling Rupee, declining forex reserves and rising external debt made some articles talk about an Indian sovereign debt default but that didn’t last long and it’s largely because government’s debt is only a small portion of the overall external debt. Out of the total debt of $...

Fw: Religare Finvest NCD Issue Details

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Sent from BlackBerry® on Airtel From: OneMint <onemint@gmail.com> Sender: noreply+feedproxy@google.com Date: Wed, 12 Sep 2012 01:03:41 +0000 To: <kathpalia.rajesh@gmail.com> Subject: Religare Finvest NCD Issue Details Religare Finvest NCD Issue Details Religare Finvest NCD Issue Details Posted: 11 Sep 2012 03:46 PM PDT Religare Finvest which is a fully owned subsidiary of Religare is also coming out with a NCD issue shortly, and this is about the same time when they issued NCDs last year . I’m going to talk about some key points that people looking to invest in NCDs are looking for and then move on to some general aspects. Issue Open and Close Date : The NCD open date is on September 14 2012 and the close date is on September 27 2012. Issue Available to NRIs: NRIs can invest in these NCDs on a non – repatriable basis. Minimum Investment Amount and Listing: There will be 5 series and the minimum f...