Standard deviation steps in where average failed. It gives you an idea about the rating of the quality for the average. It can be defined as the difference between the numbers used in calculating the average and the actual average. It is an indication of how accurately the average represents its parent numbers.
Historically, gold has been the perfect hedge for inflation. This is based on data from the year 1800 AD. But in terms of absolute returns gold has fared rather poorly giving returns at only 0.8% above inflation. Real estate and shares beat gold squarely on the capital appreciation front. Real estate and shares have given… Read More »
While deciding between the companies operating in the same sector, examine the rate at which the EPS of these companies has changed during the final two quarters and compare this difference with the rate of change of EPS during the last 3-5 years. If the EPS has shown an increase, it would mean the company… Read More »
What is your purpose in investing? Are you saving for a short-term goal like buying a car or for long-term goal like retirement plan? How comfortable are you with taking risks? Answering these questions is important to prepare the correct plan for your finances. Unfortunately, not many spend time answering these questions.
The earlier proposal of introducing taxation upon withdrawal (EET) instead of the existing tax free (EEE) status for certain instruments like PPF etc. had earlier been withdrawn in a revision. If that were to be implemented perhaps the tax slabs could have led to a dramatic saving for all the individuals in different tax brackets.… Read More »
After negotiations, it has been decided that hospitals will be categorized in 3 categories based on the infrastructure capabilities and the rates will be standardized for 42 standard medical procedures covering almost all ailments requiring hospitalization for the 3 categories of hospitals. The rationale is that high-end or specialty hospitals cannot be asked to accept… Read More »
What is the volatility of the fund? Remember in most instances funds with high returns tend to be more volatile. E.g. funds with mid-cap exposure and sector funds tend to be more volatile, but also offer higher returns. Also some fund managers tend to churn the portfolio in order to give higher returns, thus making… Read More »
Don’t let the money that you save lie around in your bank account. Keep a certain amount for an emergency and invest the rest in the best options for investment. You have to educate yourself about the options available. Try to increase your investments steadily every month.
The biggest personal loan lender in the country, ICICI Bank has increased deposit rates by 25 to 75 basis points. One basis point equals 0.001% point. The bank has also stated that increase in lending rates in expected in immediate future.
An NRI must give careful thought to his investments in India. While mutual fund investments are not taxed in India, you may have to pay tax if you decide to go back to your native country. Also if you redeem your mutual fund investments, before one year, you end up paying short term capital gains.… Read More »