BE A LONG TERM PLAYER IN STOCK MARKET

IT PAYS RATHER HIGHLY IF ONE INVESTS AND REMAINS LONG IN LEADERS IN
A GROUP SHARES OR FUNDAMENTALLY STRONG SHARES OR GROWTH SHARES.
IT HAPPENS MORE OFTEN THAN NOT, THAT INVESTORS THINK AND ACT SHORT TERM IN SHARE MARKET.
PATIENCE AND AMBITION ARE OFTEN REPLACED BY IMPATIENCE AND GREED.
ONE IS GUIDED BY IMPULSIVENESS AND GREED.
THEN THE QUESTION REMAINS HOW TO IDENTIFY LEADERS .A LEADER IN ANY SECTOR HAS STRONG COMMITMENT FOR FURTURE,REASONABLY GOOD EPS,SHAREHOLDER FRIENDLY,AND SEEN IMPLEMENTING GROWTH PLANS.
HE IS NOT AN OPERATOR IN HIS SCRIP.PREFERENTIAL ALLOTMENTS TO PROPMOTER GROUP ARE NOT SEEN TOO OFTEN AND IN HIGH VOLLUMES AND AT QUESTIONABLE PRICES.HE MAINTAINS GOOD DIVIDEND AND BONUS AND RIGHTS RECORDS AND IMPLEMENTS SOUND CORPORATE GOVERNANCE PRACTICES.

EQUITY INVESTMENT

WE SAW EARLIER ABOUT INVESTMENTS IN POST OFFICE AND BANKS DEPOSIT SCHEMES AND ALSO SEEN MUTUAL FUND INVESTMENT DETAILS.
NOW WE GO TO SEE BRIEFLY ABOUT INVESTMENT IN SHARES OF PUBLICLY LISTED COMPANIES.
EQUITY INVESTMENT IS RISKY BUT ASSOCIATED WITH AMPLE REWARDS ALSO.
ON HAS TO BE A LONG TERM PLAYER IN STOCK MARKETS.DAY TRADING ieBUYING AND SELLING INTRA DAY OR DURING SAME DAY IS VERY RISKY AND BOUND TO RESULT IN LOSSES.
WHILE CHOOSING A COMPANY SHARE TO INVEST ,ONE HAS TO SEE THAT IT IS A LEADER IN THE SECTOR LIKE INFOSYS OR DR. REDDY LABS OR RELIANCE.
IN SUCH CASES THE MANAGEMENTS ARE PROFESSIONAL, REWARDS ARE ASSURED AND HIGH LIQUIDITY IN SUCH SHARES.
IF ONE CAN INVEST IN GOOD COMPANIES WHOSE FUTURE GROWTH PROSPECTS ARE GOOD AND INVESTOR FRIENDLY COMPANIES WHO REWARD INVESTORS WITH GOOD DIVIDEND,BONUS SHRAES OR RIGHTS SHARES AND ARE GROWTH ORIENTD ,THERE IS NO RISK IN INVESTMENTS. BUT ONE HAS TO WAIT FOR THE REAWARD FOR ATLEAST 2 TO 3 YEARS TO BE REWARDED.
OVERNIGHT BUYING OR SELLING ,OR BUYING ON TIPS AND GOSSIP AND UNCONFIRMED RUMOURS WILL NOT BRING ANY PROFITS AND MPREOVER THERE IS A LIKELIHOOD OF LOSING THE INVESTED AMOUNT IT SELF IN PART OR IN TOTAL.
ONE NEEDS TO CONSTANTLY WATCH THE MARKET MOVEMENTS AND ALSO NATIONAL AND INTERNATIONAL CHANGES IN NATIONAL OR GLOBAL ECONOMY.
PRESENTLY POWER SECTOR,FMCG ,TECH SECTOR, INFRASTRUCTURE AND PHARMA SECTORS LOOK GOOD FOR A HANDSOME REWARD OVER NEXT 2 TO 3 YEARS.
IF ONE HAS NO TIME OR RESOURCES OR SKILL FOR A KEEN WATCH ON MARKET,MUTUAL FUND INVESTMENT IS GOOD AS THESE FUNDS ARE MANAGED BY EXPERTS.

MUTUAL FUND INVESTMENTS

IN THIS POST WE SHALL TALK ABOUT INVESTMENTS IN MUTUAL FUNS,WHICH ARE VERY POPULAR WITH INVESTORS because MUTUAL FUND INVESTMENTS ELIMINATE THE RISK OF DIRECT SHARE MARKET INVESTMENTS BY INDIVIDUAL INVESTORS AND THE INVESTMENT DECISIONS ARE MANAGED BY EXPERTS ON BEHALF OF THE INVESTORS.MOREOVER POOLING OF RESOURCES OF MANY SMALL INVESTORS IS POSSIBLE IN MUTUAL FUNDS ONLY. THE MUTUAL FUND MANAGERS INVEST THESE COLLECTIVE RESOURCES IN EQUITIES.DEBT FUNDS,SECURITIES/SECTOR FUNDS AND GENERATE RETURNS FOR THE INVESTORS THROUGH BETTER MANAGEMENT .
THE NAV OR NETASSET VALUE OF OPEN FUNDS ARE DECLARED ALMOST DAILY AND ARE TRADED LIKE SHARES OR CAN ALSO BE REDEEMED AT THE PREVAILING NAV.
IN CASE OF CLOSED ENDED FUNDS ,THERE IS A LOCK IN PERIOD RANGING FROM 3 TO 10 YEARS .ONLY THEN THESE UNITS IN CLOSED ENDED MUTUAL. FUNDS ARE TRADED OR REDEEMED .
SIP OR SYSTEMATIC INVESTMENT PLAN IS A BETTER ALTERNATIVE WHILE INVESTING IN MUTUAL FUNDS AS THIS RESULTS IN RUPEE COST AVERAGING AND IT DOES NOT MATTER VEERY MUCH WHETHER THE MARKET IS IN UPTREND OR DOWN TREND.
BASICALLY MUTUAL FUNDS INVEST IN EQUITIES OR DEBT SECURITIES OR SECTORS LIKE POWER SECTOR OR BANKING SECTOR ETC....
ONE HAS A CHOICE OF INVESTING IN ANY TYPE OUT OF THE ABOVE 3 CATEGORIES,OR PARTLY IN EQUITY AND PARTLY IN DEBT SECURITIES CALLED BALANCED FUNDS .A SWITCH OVER AMONG THESE TYPES OF FUNDS IS ALSO ALLOWED SUBJECT TO APPLICABLE RULES.
IN INDIA,RELIANCE MUTUAL FUND HAS STARTED SIP AMOUNT AS LOW AS RS 100 P.M.
MUTUAL FUNDS OFFER LIQUIDITY, FAIR RETURNS ON INVESTMENTS AND ALSO SECURITY COMPARED TO DIRECT STOCK MARKET INVESTMENTS BY INVESTORS.

RBI BONDS AS AN INCOME OPTION

EARLIER WE HAVE SEEN POST OFFICE AND BANKS SAVINGS SCHEMES.
NOW LET US SEE RBI BONDS AS AN INCOME OPTION. THESE BONDS OFFER 8%INTEREST P.A(TAXABLE)PAYABLE HALF YEARLY IN FEB AND AUGUST EVERY YEAR.THISINTEREST IS TAXABLE. SO ONE HAS TO SUBMIT FORM 15 G OR 15H(IN CASE OF SENIOR CITI ZEN) TO AVOID TAX DEDUCTION AT SOURCE.THERE IS NO UPPER LIMIT ON INVESTMENT.SO HUGE AMOUNTS CAN BE INVESTED.
IN THE NEXT POSTINGS WE SHALL SEE ABOUT MUTUAL FUNDS,SHARES AND REAL ESTATE AS INVESTMENT AVENUES.

RALLABANDI VENKATA RAO

various saving schemes

as of now in india, we have several savings schemes like nsc,kvp,post office monthly interest scheme,senior citizen savings scheme.,post office time deposits,.post office savings bank account, post office recurring deposits. All these schemes offer annual interest varying between 3.5% to 9% p.a.all interest income from above schemes is taxable.
FOR the above schemes there is no TDS except in senior citizen savings schemes for which one may submit form 15H TO AVOID TDS.
banks now a days offer better rate of interest thanks to rising inflation and RBI steps to reduce inflation.For bank deposits tds is applicable if interest per annum exceeds Rs 10000/.ONE MAY SUBMIT FORM 15G/FORM 15 H to avoid tds by banks.
some companies also accept fixed deposits and pay interestranging between 6 to 10.5%p.adepending on period of deposit and frequency of interest payment like monthly,qrtrly,halfyearly/annually.
better opt for TRIPLE-AAARATING COMPANY DEPOSITS.remember to submit form 15G/15H to avoid tds

save money with a few help tips

ONE OUGHT TO KEEP FIT AT ANY AGE.OTHERWISE ILLHEALTH LEADS TO LOSS OF PEACE OF MIND AND ALSO LOSS OF MONEY.
I MAKE IT A POINT TO DO TREAD MILL FOR ATLEAST 20 TO 30 MINUTES A DAY,FOLLOWED BY STRECHING OF BODY AND MUSCLES AND BONES IN DIFFERENT DIRECTIONS.
I NEVER EVER TAKE TO LIFT.MUST GO BY STEPS ALWAYS UNLESS YOU NEED TO REACH MORE THAN THE 6TH OR 7 T FLOOR.
WALKING IS THE SIMPLEST EXERCISE AT ANY TIME AT ANY AGE.DEEP BREATHING EXERCISES ALSO HELP IN GOOD HEALTH.
ONE CANNOT BE MENTALLY ACTIVE OR ALERT UNLESS ONE IS PHYSICALLY FIT.

tips to avoid income tax

whenever one makes a fixed deposit in bank or elsewhere , pl.remember to submit form 15G if you ARE NOT A SENIOR CITIZEN.
If you are a senoior citizen,remember to sumbmit form 15H.
THESE FORMS need to be submitted in duplicate once at the time of making a deposit and again in every year April to be on safe side.
on submission of these forms income tax will not be deducted from the interest income.otherwise one stands to lose interest income through income tax.
in case income tax is deducted by banks /others from the interest income for whatever reason ,one has to file income tax return and claim the refund by submitting the TDS certificate provided by the deductor of income tax.