Page 51 - Investment

RBI's cautiously optimistic approach

There could be a surge in 'catch-up' buying activity if the apex bank cuts rates in January

Stick to debt for short-term goals

If you shift entirely to equity and if markets fall, your investments will be hit

Ensure policy proceeds reach the right person

Businessmen with liabilities can buy an insurance policy under the Married Women's Property Act to insulate the family from any default

Consumer loan or credit card loan?

A discount on the product may make a credit card loan seem cheaper than a consumer durable loan. But missing a payment in case of the former will mean exorbitant charges

Know about the taxes on under-construction flats

VAT and service tax will push up the final cost of property. So, make your investment with care

Fixed deposits with a time frame of 1-2 years can work

By November-December 2014, investors should also look at debt funds

Don't trade in your company's shares

Stringent rules for trading in a no-transaction period by staffers. A breach can lead to wage freeze, suspension, denial of Esops

Don't get swayed by the euphoria

Not all good performing funds will be able to sustain returns for long. So, select the right mix of funds

Case study

Readers' Corner: Anuj Agarwal

Today, Anuj Agarwal, CEO of Bajaj Allianz Life Insurance, answers your questions

Hot Spot: Kanjurmarg, Mumbai

Affordability & connectivity

Tax law penalises buyers for construction delay by builders

At that time, nobody would have thought a construction period of three to four years would be grossly inadequate

PPF still the best among tax-exempt instruments

Since PPF has become market-linked, any reduction in rates will make it unattractive in comparison to deposits and tax-free bonds as these lock the rate of return

Currency impact of a rate cut

A rate cut can trigger some depreciation in the value of the currency, making it more difficult for companies to import. Exporters, of course, stand to gain

Currency fluctuation can increase cost in overseas card transactions

In case of a dispute, there is a window of 7-45 days for reversal of charges

Good time to scout for property

With prices unlikely to run up sharply, genuine buyers can start readying deals before the festival season starts

Increase your savings as your income rises

Look at savings as a percentage of income rather than a fixed amount. Both should rise in the same proportion

Systematic investments in top equities make sense

It makes sense to do it this way. It's also important to understand the rationale behind choosing particular stocks and when to sell

Case study

Realty check