A lot of you reply to the daily emails with suggestions for posts, and I really appreciate that because it gives me post ideas, and I can write about stuff that is most relevant to you.
Normally, I take the gist of your suggestion; create a title of the post, and note it down on a virtual sticky note. But, the issue with this is that it is easy enough to miss an email, and sometimes the titles on the sticky notes don’t make any sense to me when I look at them later on.
So, I am creating a page here that is specifically for your suggestions for posts. You can leave a comment here suggesting an idea for a post, and if I know enough about the topic I will write about it.
That way we won’t lose track of anything you say, and if multiple people suggest the same topic for a post then I know that it should be written prior to moving on to other things.
Thanks for reading – and writing!
Hi Manshu,
While I was in US, i had bought my company shares under ESPP and held the shares for over 2 years (till 2012, for long term gains it is not taxable in US). However I came back to India last year and sold the shares while I am in India. Now I came to know that even the shares are tax free in US, since I came back to India, all the gains are taxable in India and the income is not treated as capital gains. I have to pay around 20% of gain as taxes with indexation and around 30% of gains as taxes without indexation.
Please write blog posts with your insights on “Tax calculation with Indexation” and “Tax treatment for long term gains overseas”.
Taxation is a very complex issue and there is a lot that I don’t know about so I generally avoid writing about tax issues. In this case, I didn’t even know that such a situation could arise so I don’t even know where to begin and I’m afraid I’m not in a position to write about this.
I am NRE account holder & now i would like to settle permanently in india & would you like to advise me best investment in India.
Thanks
Regards
Abdul Rashid
I completed my graduation in BE Computer Science june 2011 from VTU and i has been struggling to get a job in software industry.. please suggest me what can i do and how can i get the job
Try some contacts and see if you can create a resume in a site like Monster and get some jobs. It can be hard if you’re just starting out and your best bet will be to tap any contacts you may have in the software industry.
Hi Manshu,
Can you please provide your comments and reviews on term insurance policies in 2012?I would like to know which is the best one to go for, in online mode.
I’m not sure I understand the question correctly, what bearing does 2012 have on term plans, are you asking about new plans specifically or just all plans available?
I agree with the suggestion from one of our readers that HOME INSURANCE is a subject where many of us need guidance. our awareness on this front is very limited.
I have subscribed for Muthoot Finance NCDs series I & II and also bought them from Market.
I have not received any interest so far till today i.e. 18 May 2012. (They are not of Cumulative Option) When do they pay interest. Other such NCDs from IISL and Shriram Transport etc. paid interest on 31st March 2012. Please let me know if you have any information.
The next interest dates are
series 1 14-9-2012
series 2 18-1-2013
Its always said tht whenever near an important goal, de-risking of the portfolio is done, i.e for eg. transfer frm Equity MF to a debt fund.
1) hw many yrs before shd this process begin??
2) Wht kind of Debt MF wud be ideal ??
It wud be really gud if u cud put light on this query
risks in debt funds.
As I understand, debt mutual fund wont fall in value. So it will be interesting to know of any debt mutual funds which was not able to pay even the principal amount to investor. or any debt mutual fund which showed fall in NAV by 10 % or more. If you include the reasons also that would be great.
As far as I know there aren’t any debt funds that have had negative returns, but if I do come across something like this then I will write about it.
At present debt securities have residual maturity of 91 days or less, are not supposed to market to market; they report NAV of that with accrued interest. SEBI has proposed to reduce this tenure to 60 days. Still, risk of principal decline (due to int rate increase) is very low for short term debt funds due to their shorter duration. Longer duration bond funds like G-Sec funds have highest exposure to interest rate risk and show decline in value due to interest rate hike.
You should write some articles on HUGE REAL ESTATE MARKET in India. Where are we heading?? ARe we going USA / Europe / UAE direction? OR INdia has potential to absorb all the way and will come out stronger and not like these other coutnries faced teh position in REal Estate.
It is an interesting topic, and I have touched upon these topics a few times earlier and I’ll write about it again when I see something interesting or noteworthy going on in the sector.
I had a random idea. Not sure whether it is a workable, but here it is:
Currently for small-time retail investors, it is difficult to get quality Stock-specific advice (the key word being QUALITY). Either the research reports cost a bit or the free information available on the internet is really of dubious origin and quality.
Given the above problem, I thought of a solution to “crowd-source” the research by creating some sort of an Online Investor Club. We can use tools like Google-Plus for sharing and collaborating. What I have in mind is something like this;
1. Create and Share a G+ circle called “OneMint Investor Club”. If Manshu doesn’t want to dilute the “OneMint” brand name, we can call it something else also.
2. Members join the circle. Since G+ works only for identified individuals, we will not get spammers.
3. At the beginning of every month, we pick up a single stock. Only ONE per month, so as to reduce the clutter. This has to be followed very strictly. If there are more candidates, the top stock can be chosen by voting.
4. One member voluntarily agrees to be the main researcher. Others can contribute to the research. But at the end of the month, the main researcher publishes a report, a recommendation, and the reasoning.
5. There is no free-lunches. If somebody doesn’t volunteer to be the main researcher or doesn’t contribute positively towards the research for a few months, they will be removed from the circle.
We can work out the detailed modalities later also.
How will it help?
1. If not enriching monetarily, we can enrich our knowledge of other industries than our own. For e.g. If the main researcher works in a port, and he/she researches on Adani Ports and SEZ, he/she can bring in a lot of perspective which is not available to people like me. But strictly NO INSIDER INFO.
2. Researching and publishing a report itself would be a rewarding experience in itself for amateurs like me.
What do you or other readers think?
regards
Ashok
It’s a very exciting idea and I would love to experiment with something like this. Can you create the G+ circle please? I’ll think of how to communicate this to a wider audience and invite people. Thanks Ashok! Let’s see where this takes us.
Hi Manshu,
It will take sometime for me to try this out. Though I use G+ to “follow” a few public personas and some news sites, I still have to figure out the concept of Shared and public circles . Will let you know.
Hi Ashok. I think this is a great idea. I’m sure all participants will learn a lot through this.
Manshu, I can create a G+ circle. Let me know what name should it ? Also, Do I just create a circle in my account or do we need to create a new gmail account for this?
I’ve created a circle called OneMint Investment Group with my own id and added the two of you based on email address. Let me know if you get the message because I’m not sure if it adds people with email addresses other than Google.
I’ll be away for a few days so there will be a delay in responding but do let me know if you get added or not. Thanks Pallavi, Ashok!
Hi Manshu
I am interested in joining the group and want to know the details.
I’ve added you to the circle Umesh. Please let me know if you get the notification and are added, the other two haven’t responded yet but I think they haven’t been added.
Hi Manshu
Thanks, I received the notification to join your circle. Will do the needful in the weekend.
Umesh
okay that’s good.
Hi Manshu
I just added you in Google+ but I must admit that I do not know much about its working etc.
Thanks Umesh, yeah I need to get used to it as well and we all need to figure out how this group will evolve.
Hi Manshu,
I got an invite into the email id I had used previously on your blog. Please include my Gmail Id provided with this comment into the circle.
regards
Ashok
done.
thanks a lot manshu
Hi Manshu,
I replied to you with my gmail I’d. Please send me an invite on it. Thx
Hi,
I wantd to knw the tax implications for Mutual fund ( equity as well as debt funds, more specifically Liquid funds) done in the name of a Limited Liability Partnership (LLP) firm.
Is it safe enuf to invest in Liquid funds?? I knw MF’s always have a risk, bt practically how safe is the capital in a liquid fund??
I’m not sure how the two parts of your question tie together, what has tax implication got to do with the safety of the fund?
yeah, they dont tie together. Its tht i m trying to knw more on liquid funds & MF’s in general. i m unaware of these 2 questions, hence these 2 questions together….
liquid and liquid funds are used for short term parking of the funds. these are the tools to generate the better returns or making your money work for you. Since these days the liquidity situation in the market is tight so these funds are generating the 8plus kind of return. although in general it ranges from 6 to 7 % but still better than saving and current account. But one should take these funds with dividend re investment option in order to avoid the short term gain. Talking about risk its almost negligible for good credit quality portfolio,
Hi,
I read the following terms in the annual reports, but I’m not sure of the difference between them:
1) Standalone results & consolidated results
2) Basic EPS & Diluted EPS
I would appreciate if you would throw some light on these.
Cheers!
That’s good topic suggestions. In general standalone versus consolidated means that that consolidated has the effect of the subsidiaries as well whereas standalone doesn’t.
Diluted EPS also includes the stocks that will be issued as stock options and thus increases the number of shares to decrease the EPS and hence it’s called diluted EPS.
How about doing a post on home insurances and its different shapes and forms? I see in our country everybody mixes investments and insurances and the home insurance as a protection against natural calamity etc is never considered and most are loath to getting it.
how about a small post on it?
I’ll try but don’t know much about home insurance so not sure how in depth the post is going to be.
Hi Manshu,
I have an ULIP- HDFC SL Youngstar unit linked plan since 2005 valid til 2030. the amount invested so far is 350000/- & the current fund value is 447000/-. It gives a life cover 0f 5 lacs. I do have a term plan & invest in Diversified Euity MF’s. Shd i continue with this ULIP? Hw wud u rate it?? I don’t mind going ahead with it provided its gud enuf. kindly suggest.. thanks !!!
Compare it with the same amount if invested in the mutual fund Like BSL dividend yield plus, HDFC equity, fidility special situation.Also answer yourself that what 5 lac cover matters for your family. If you are in the young stage try the combination of term+general+SIP+debt.
Thanks Anu. will do tht…anw, i do have a term plan + SIP’s + an endowment policy+ health insurance….
Can You please do a post on Joint development agreement under which a property owner enters into an agreement with a developer for demolition of a house and building flats. The developer builds say 8 Flats and Keeps 4 for himself and hands over 4 to the property owner.Particularly under such types of agreement what are the Capital Gains Tax implications?
I’m afraid I don’t know anything about this stuff to be able to write about it so sorry I won’t be able to do a post on this.
I observed that Rupee value beyond 52 against USD has also put pressure on IT stocks like infosys,TCS,HCL,wipro and why this is happening Si?
Thanks for your insights on the financial jungle.
Manshu, can you do a review of the only ULIP in India managed by a Mutual Fund. I am talking about UTI ULIP, which claims to be lowest cost ULIP in the market.
Manshu,
It seems that you have missed my comment requesting your review of ULIP scheme by UTI Mutual Fund or have you done review in the past ?
I did in fact miss it so thanks for the follow up. That’s a good suggestion and I’ll write on this topic as well.
I wish to add gold to my portfolio. Its purely for long term investment, to have a diversified folio. I have a demat account. Which route do i prefer- ETF’s Or Gold FoF’s ??? i have read about advantages/disadvantages of both….But wht is preferable from long term point of view?? Is it worth paying more expense ratio in a FoF ??? Is it true that all ETF’s r not easily sold on the exchange whrn we need it?? Kindly help & recommend ETF’s tht r easily sold on the exchange.
THANKs…
It’s not true that ETFs aren’t easily sold on the exchange, whoever wrote that either misled or didn’t understand ETFs enough. A FoF will ultimately own the same ETF so whatever troubles you will have selling the ETF, they will have too (if there are any at all). The only benefit I see of owning a FoF is that you save on brokerage charges and that can matter if you are buying small quantities. Other than that an ETF like GS GOLDBEES or SBI or Kotak’s Gold ETF has got good volumes and that’s a reasonable bet.
Thanks a lot for tht input. So if i plan to invest 3000/- pm, shd i go for a FoF ??
An ETF should also be fine for this much, but if you don’t have a trading account already then it won’t be worthwhile to open one just for this.
I do have a trading account linked to my demat thru which i buy shares. i suppose tht wd work. So i wd rather go for an ETF as per ur suggestion. Wht r the brokerage charges usually?? wht shd be the cut off value to decide ?
Hi Sameer
As you have trading account and demat account for shares, it will be better for you to invest in ETFs.
Brokerage charges varies with different brokers, 0.1 to .5% (one side) (cash/delivery segment) plus other taxes and statutory charges and levies. Further, you must know that there is a term called minimum brokerage and it is about 20-30 INR. And as you said you plan to invest ETF worth 3000 INR per month, the brokerage for this will be somewhere 0.7-1% (one side). Calculate all the expanses on your investment beforehand.
So, check with your broker about the total charges.
Yes that will work. Those charges will vary from one broker to the other so best call them up and find out. What do you mean by the cut off value?
cut off value as in- Just as u said tht i can go for etf if i am investing 3000 pm, i wanted to knw if at all there is any cut off value below which a FoF turns out to better than an ETF.
Oh okay got it. Well, I was thinking in terms of say Rs.25 is the min commission and then you have STT and Demat charges so if you’re buying ETF worth just a 1,000 bucks then you’re paying a little over 2.5% commission one side so that’s much more than a MF expense. With 3,000 that’s much lesser so I thought that sounded like a reasonable sum to buy just a low cost GOLDBEES type ETF. 2,000 is probably a gray area and you could go either way.
thanks a lot Manshu… you r the first one to address this query of mine to my satisfaction. No one till date gave me a definite answer. thanks a lot for the Clarity !!! Looking forward to ur help always….