Page 56 - Investment

Bouncing back from a job loss

Get your family involved, renegotiate loans and retool yourself

Realty check

Case study

Banking: Prashant Joshi

Do you know your home loan interest rate?

RBI and NHB have both acknowledged the market practice of Indian lenders is to charge higher rates to old home loan consumers, while providing lower rates to new ones

Policy boost for short-term debt funds

From a long-term perspective, the 10-year G-sec is not appealing for additional exposure over the next 4-5 months

Too early to enter auto sector

It will look attractive if rupee stays weak and sales pick up at the same time

Cover medical expenses of donors, too

With costs of medication for organ donors increasing, it makes sense to get them covered

When small is probably better

Firms in the small-cap and mid-cap space are available at cheaper valuations; with some basic checks, these can be worthwhile investments

Invest early to gain from compounding

Get into the savings habit now. The more you invest for as long as possible, the higher will be your end corpus

Check the forex exposure of companies

Those with abnormally high treasury and forex gains or losses are likely to be at the highest risk

Subvention scheme is a double-edged sword

If possession is delayed, the home buyer could end up paying both rent and home loan instalments

Stop-loss is a strategic device

Setting one forces you to consider the chances of losing money

Manage your risk better

The challenge is to ensure you stay invested long enough to get returns commensurate to risk

Don't panic when markets turn volatile

The recent ups and downs reaffirm the fact that there is no alternative to asset class diversification

Have the right strategy in case of co-borrowing

A co-borrower increases your home loan eligibility and reduces interest cost but banks do not prefer some categories due to legal issues

The Rajan rally will not continue

The spurt in banking may be short-lived because of his limited options

Tax liability of Esops

Don't sell the shares immediately after you get possession. It might translate into tax liability, if not held for one year or more

Check sub-limits within covers

Insurers put these sub-limits in health policies to ensure that their liability is limited

Locked in a financial dispute? It will be a long haul

The NSEL fiasco has brought the focus back on the investor redressal mechanism. But it's best to avoid exotic products