security and safety of your savings

SAFETY OF YOUR MONEY IS MORE IMPORTANT THAN THE RETURN YOU ARE OFFERED ON YOUR INVESTMENTS.
FOR EXAMPLE,IF YOU ARE OFFERED A RATE OF INTEREST OF 11% PERANNUM BY A COMPANY ACCEPTING FIXED DEPOSITS,THIS WILL CERTAINLY ATTRACT YOU TO DEPOSIT MONEY WHICH YOU HAVE SAVED TO EARN 11% RATE OF INTEREST.
BUT HOLD FOR A MINUTE .
SEE IF THE COMPANY'S DEPOSITS CARRY ANY RATING LIKE AAA,A++ ETC...
AAA RATING INDICATES HIGHEST SAFETY.
SOME COMPANIES LIKE HDFC.,BAJAJ, ETC.. OFEERR AAA RATED DEPOSITS BUR THEIR INTEREST RATE MAY BE SLIGHTLY LOWER.
BUT STILL MY VIEW IS YOU SHOULD OPT FOR SAVING WITH A COMPANY WITH A GOOD RATING THAN A COMPANY WITH NO RATING ,THOUGH UNRATED COMPANIES MAY OFFER HIGHER RATE OF INTEREST.
IN INDIA , SUCH RATING IS GIVEN BY COMPANIES LIKE ICRA,CRISIL
THE PRINCIPAL MONEY INVESTED BY THE INVESTOR SHOULD BE SAFE. DO NOT BOTHER FOR A SLIGHTLY MORE RATE OF INTEREST.
RALLABANDI VENKATA RAO

BANK FIXED DEPOSIT RATES WENT UP IN INDIA..TAKE THE CALL

SHOCKED BY STOCK MARKET STEEP FALL AND LOSS OF HUGE INVESTMENT VALUE EVEN BY NOTIONAL CALCULATION (EVERY BODY DOES NOT SELL HIS/HER SHARES ON A FALL IN STOCK MARKET BUT ONLY CALCULATES THE LOSS),THE MIDDLE CLASS INVESTORS ARE RALLYING ROUND THE INDIAN BANKS AND GOOD RATED DEPOSITS OF COMPANIES TO SAVE MONEY AND PROTECT THE CAPITAL AND ALSO EARN MORE INCOME PERIODICALLY .
THIS HELPS THE PENSIONERS AND RETIRED PEOPLE ,WHO LOOK FOR ASSURED MONTHLY INCOME AS THEY ARE GETTING MORE MONTHLY INTEREST NOW THAN EARLIER.
BUT OF COURSE THE SMALL INCREASE IN MONTHLY INTEREST IS MORE THAN OFFSET BY STEEP INCREASE IN INFLATION.
GLOBAL FINANCIAL CRISIS THAT IS PRESENTLY SHAKING THE WORLD AND STOCK MARKETS MAY BRING SOME MORE SUDDEN DEVELOPMENTS LIKE THE ABOVE .
BECAUSE OF AVBOVE SITUATION, THE INVESTORS OF STOCK MARKETS ARE NOW SHATTERED BY THE STEEP FALL IN STOCK MARKETS AND TURNING TO BANK DEPOSITS AND TRIPLE-AAA- RATED COMPANIES TO SAVE THEIR MONEY
TAKE THE CALL ,AVAIL THE OPPORTUNITY AND GET PROTECTED BY SAVING IN BANKS AND TRIPLE -AAA -RATED COMPANIES DEPOSITS LIKE HDFC, BAJAJ ETC...
SUCH RATING TO THE DEPOSITS IS GIVEN BY ICRA AND CRISIL ETC...IN INDIA.
THESE DEPOSITS OFFER CURRENTLY BETTER RATES OF INTEREST THAN IN THE PAST. BUT SUCH RETURNS ARE BY NO MEANS COMPARABLE TO STOCK MARKET RETURNS.
BUT STOCK MARKET GIVES ASSURED RETURNS OVER A 3 YEAR PERIOD IF YOU INVEST IN SHARES OF GOOD COMPANIES WITH GROWTH STORY AND COMMITTED MANAGEMENT.
GREED AND FEAR ARE WORST ENEMIES FOR INVESTORS IN STOCK MARKETS.
GOOD DAY AND HAPPY INVESTING.
R.V.RAO

stunning and shocking capital markets

stunning and shocking capital markets--this phrase only mildly describes the state of world stock markets.gloom spread allround. hushed silence among investors.this is due to heavy fall in stock markets and the crash seen across the globe.
but please remember it is good news for a long term investor.when every body sells in stock market,buy good stocks for a long term investment objective. you make decent gains in 2 or 3 years.
is it not a good news?
yes. we heve seen many stock market crashes since 1990.
but every time the stock markets rose like a phoenix and returned very large returns to those who invested after the crash.
actually no one likes to buy in such a desperate situation. but only those who know what a market can reward in long run only will buy.
see for example infosys tech in india is now available around INR 1200 per share.
i know personally how long people are waiting to buy that darling share for a reasonable price.
now is the time.
wait a little time. then buy. this gives you rewards in 3 years by leaps and bounds.
afterall what goes down naturally comes up and vice a versa.
this is the logic to buy now.
have a happy investing and long time rewards.
rallabandi venkatarao

stock market crash-an opportunity to create wealth in long run

THE RECENT HEAVY FALL IN INDIAN STOCK MARKET IS AN OPPORTUNITY TO CREATE WEALTH IN LONG RUN FOR WISE INVESTORS.
FUNDAMENTALLY STRONG STOCKS OF COMPANIES WHICH ARE LEADERS IN THEIR SECTOR LIKE DR. REDDY,INFOSYS,RELIANCE IND.,SATYAM ETC.. MAY BE BOUGHT .
IF NOT A HEAVY INVESTMENT ,ATLEAST SHARES IN SMALL LOTS CAN BE ACCUMMULATED FOR A SMART GAIN IN LONG RUN OF ATLEAST 2 TO 3 YEARS.
STOCKS DO PAY IN LONGRUN.
SUCH OPPORTUNITIES DO ARISE IN ANY STOCK MARKET LIKE JAPAN,INDIA,SINGAPORE,HONGKONG ,IN FACT ANY WHERE.
ONLY THE WISE INVESTORS BUY IN CRASH AND SELL IN BOOM TO MAKE MONEY.
R.V.RAO

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.