Saturday, November 28, 2015

Entry Load - Exit Load

Entry Load: Mutual Funds charge investors an entry load of up to 2.25% to compensate for distribution costs. It is charged at the time an investor purchases the units of a scheme.

Exit Load: The commission or charge paid when an investor exits from a mutual fund. They are basically imposed to discourage withdrawals.

Wednesday, November 18, 2015

Warren Buffett

Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor and philanthropist. He is the most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and as the third wealthiest in 2015. In 2012 Time named Buffett one of the world's most influential people.

Buffett is often referred to as the "Wizard of Omaha" or "Oracle of Omaha," or the "Sage of Omaha," and is noted for his adherence to value investing and for his personal frugality despite his immense wealth. Buffett is a notable philanthropist, having pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Gates Foundation. On April 11, 2012, he was diagnosed with prostate cancer, for which he successfully completed treatment in September 201. 

Saturday, November 14, 2015

Halo Effect

The halo effect is a term used in marketing to explain the bias shown by customers towards certain products because of a favorable experience with other products made by the same manufacturer or maker. Basically, the halo effect is driven by brand equity.
A classic example of the halo effect is the relationship between the Mac notebooks and iPod. When the iPod was released, there was speculation in the market place that the sales of Apple's Mac laptops would increase, because of the success of the iPod. The belief was based on the halo effect, as customers who had a great experience with the iPod would buy a Mac simply because it is made by Apple Inc.

Monday, November 9, 2015

Capital Gains Tax

At the time of Sale of any Asset, tax is liable to be paidon the gains earned on the sale of Asset. Such Gains could either be Short Term or Long Term. The Clssification for the same for Assets other than Shares and Mutual Funds are as follows,

1. Short Term Capital Gain (STCG): If the Asset is held for less than 36 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 36 Months

Classification for Sell of Shares or Mutual Funds:

1. Short Term Capital Gain (STCG): If the Asset is held for less than 12 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 12 Months

Thursday, November 5, 2015

Stocks to Invest: Maruti Suzuki

 Company: Maruti Suzuki India Limited
Type: Public
Traded as: BSE: 532500, NSE: MARUTI
Industry: Automotive
Founded: 1981
Number of employees: 12,900(2015,Sept.)
Slogan: Way of Life!

Current Models:
Omni - 1984 - Minivan
Gypsy - 1985 - SUV
WagonR - 1999 - Hatchback
Swift - 2005 - Hatchback
Grand Vitara - 2007 - Mini SUV
DZire - 2008 - Sedan
Ritz - 2009 - Hatchback
Eeco - 2009 - Hatchback    
Alto K10 - 2010 - Hatchback    
Ertiga - 2012 - Mini MPV
Alto 800 - 2012 - Hatchback
Stingray - 2013 - Hatchback
Celerio - 2014 - Hatchback
Ciaz - 2014 - Sedan

Monday, November 2, 2015

Foreign Investors

Qualified foreign investors (QFIs) can now invest directly in Indian equities. A QFI is an individual, an association or a group from a foreign country complaint with standards mandated by the Financial Action Task Force, an inter-governmental body that formulates policies to combat money laundering and terrorist financing. Foreign institutional investors (FIIs) and foreign venture capital investments do not come under the QFI category.

An individual QFI can invest up to 5 per cent of the paid-up capital of a listed company. Total investment by QFIs in a listed company cannot exceed 10per cent of its paid-up capital. Foreign investors will also be allowed to acquire equity shares by way of rights issue, bonus shares or equity shares on account of stock split, amalgamation, demerger or such corporate action.

The QFI investment limits will be over and above the ceilings set for FII and non-resident Indians under the Portfolio Investment Scheme for foreign investment in India.