Why the new Sovereign Gold Bond Scheme makes investment sense…

The original Sovereign Gold Bond Scheme launched last year did not really set the turnstiles on fire. There were quite a few reasons for the same. Firstly, the pricing was not very attractive. The price of the Sovereign Bond Scheme was higher than the spot price of gold which made it prima facie unattractive. Secondly, last year the price of gold was on a down trend and equities were having a fairly good time. This really did not entice the retail investors to give up equities in favour of gold. Last but not the least, the product was still not well understood by the investors and hence there was reluctance to jump into a lock-in product. The second tranche of Sovereign Gold Bonds may however be a tad different. Continue reading “Why the new Sovereign Gold Bond Scheme makes investment sense…”

An Education Loan can be highly tax efficient for you…

For most assesses, tax benefits typically revolve around Section 80C for insurance premiums and provident fund payments, Section 24 for interest on housing loan and Section 80D for payment of medical insurance premium. These are normally the most commonly used sections in India. However, there is another very important and less talked about provision under Section 80E for interest paid on education loans pertaining to higher studies. The beauty of this provision is that there is no upper limit for Section 80E and technically any amount can be claimed. The only condition is that it should pertain to interest paid on an education loan taken for the purpose of higher studies. Continue reading “An Education Loan can be highly tax efficient for you…”

Gold Bond Scheme

It looks a lot more attractive, this time around…

The second tranche of the Sovereign Gold Bond scheme seems to be better designed and executed compared to the first tranche. Considering the current global scenario and asset preferences, one must seriously look at the Sovereign Gold Bond scheme this time around. Here is why… Continue reading “Gold Bond Scheme”

Discount Brokers

How much lower can they go from here…?

Open any pink paper and the ads of discount brokers are ubiquitous. The model is of fairly recent origin. Unlike the full service brokers who give you research and other services, the discount brokers purely give you a platform for executing trades and invest more in technology and less in people. Hence small brokerage costs are able to defray these fixed costs as long as large volumes can be assured. Today, these discount brokers account for a large chunk of F&O volumes and intraday volumes in India. And the trend is only getting sharper by the day. But there are 3 risks to this model… Continue reading “Discount Brokers”

FII Inflows

When will they return to India?

FII selling has been the big story since August. After selling nearly Rs.50,000 crore worth of equities in the last 7 months of 2015, the New Year has begun on a discouraging note. In the month of January 2016, FIIs have sold equities worth over $2 billion in the first 16 days of trading. What is more, they have been heavy sellers on 15 out of these 16 days, which clearly shows which way the FIIs are trending. During the same period, the DFIS have been buyers to the tune of nearly $2 billion but their impact has been limited due to the absence of currency effect in case of the domestic institutions. What is the outlook for FIIs in 2016? Continue reading “FII Inflows”