The difference between low-value PSUs and high-value private banks may grow

Bank licence will improve valuation of the listed parent

Business Standard

Use a mix of instruments that will beat both the wholesale and consumer price indices

Six ways to stay ahead of inflation

Ensure you don't get benefits that get reversed, while filing returns

Changing jobs? Declare past income to new employer

Share prices of smaller exporters are at reasonable valuations. The weak rupee could mean windfall gains for some of them

Go long on export companies

Rating of products comes in handy as low ratings reflect high risk

Look for sustainable returns

Additionally, invest money in a health fund for emergencies

Have one comprehensive health cover for the family

Along with risk tolerance and aspirations, also take into account life expectancy when deciding how much and when to invest

No single formula for asset allocation

Assess if goals are on track and make corrections, if necessary

Review financial plans regularly

After the policy gets paid up, opt for ETI plan if you wish to extend your life cover or take the reduced paid-up if you need cash in hand

Extend your insurance cover on paid-up policies

If the interest rate dips, as is widely expected, these could give you higher gains

G-secs offer good liquidity, high safety

Looking for a regular income from the stock market? High dividend paying companies could be your answer

Beat market blues with dividend stocks

Chief Executive Officer of Reliance General Insurance, answers your queries

Readers' Corner: Rakesh Jain

Talagang Co-operative Group Housing Society had engaged the services of Otis Elevators to install 22 passenger electronic traction elevators at a cost of Rs 7.9 lakh each, totalling Rs 173,80,000. The contract, dated April 29, 1996, provided the work would be completed within 52 weeks, computed from the date of receipt of the order, advance payment, layout approval, and settlement of all technical details, whichever was last.The society paid Rs 7 lakh as advance and requested Otis to start the installation. Yet, Otis ignored the request. Even after about two years, work didn't commence.Subsequently, a meeting was held between the society's office bearers and Otis officials. A fresh schedule was prepared, with the assurance work would commence from June 1998 and four elevators would be installed every month. An additional Rs 19.63 lakh was paid to Otis. Then, Otis demanded Rs 66,835 as escalation charges for the materials for four lifts.After commencing work, Otis sent a bill of Rs 20,4

Those delaying work can't levy escalation charges

Debt returns are always negative for investors in India, unless they are willing to take huge risk

Inflation-indexed bonds are disappointing

While an occasional big expense is fine, it is important to maintain a lifestyle that leaves enough surplus to invest and save

Lifestyle expenses can wreck important goals

While information technology companies will benefit, firms with high foreign borrowings or heavy dependence on imports will be hurt

Rupee dampener for several firms

If government statistics are at variance with private data flow, chances are high that the latter present a picture closer to reality

Don't blindly believe preliminary data

Every Monday, Business Standard analyses one family's finances and suggests a suitable way forward

Case study

Realty check

Ask an employee about Employees' Provident Fund (EPF) and the most likely answer is that it is a part of their salary to be contributed every month. While employees divert 12 per cent of their basic salary towards EPF, their employers give an equal amount each month. But, this is not all.There are several crucial aspects about EPF that many would not know. For instance, there are two elements to EPF - EPF and Employees' Pension Scheme (EPS). The 12 per cent employee contribution goes to EPF. However, the employer's contribution is divided in 8.33 per cent that goes in EPS, subject to a maximum of Rs 541 a month. The rest goes to EPF.However, an employee is eligible to earn pension only on attaining 58 years of age, after completing 10 years of service. Or, on having contributed to it for 20 years. In either case, the pensionable service or number of years of contribution are increased by two years. "For instance, one has attained 58 years and contributed for 25 years. Then, the pension

Things to know about Employee Provident Fund

What if a National Pension System (NPS) subscriber stops investing without paying the minimum amount? The subscriber will have to bear a default penalty of Rs 100 a year, and the account would become dormant. To reactivate the account, the subscriber has to pay the minimum amount of Rs 6,000, along with the penalty for the dormant period. The dormant account would be closed if the account value falls to zero.What happens to the investments if one discontinues the scheme?If a subscriber plans to exit or discontinue NPS before the age of 60, he/she has to compulsorily withdraw up to 20 per cent of the accumulated sum and buy annuity with the remaining money. If the subscriber dies before 60, the entire sum goes to the nominee.

Page 59 - Investment