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.

www.switch2life.com

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

www.switch2life.com

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

www.switch2life.com

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.

www.switch2life.com

Stocks to Invest: Hindustan Unilever

Traded as: BSE: 500696
Industry: Consumer goods
Founded: 1932
Headquarters: Mumbai, Maharashtra, India
Products: Foods, beverages, cleaning agents personal care products and water purifiers.
Revenue: Rs 30,170 crores (2014-15)
Net income: Rs 4,315 crores (2014-15)
No. of employees: 18,000

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.

Food brands:

• Annapurna salt and atta 
• Bru coffee 
• Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea 
• Kissan squashes, ketchups, juices and jams 
• Lipton tea
• Knorr soups & meal makers and soupy noodles 
• Kwality Wall's frozen dessert 
• Modern Bread 
• Magnum

Homecare Brands: 

• Active Wheel detergent 
• Cif Cream Cleaner 
• Comfort fabric softeners 
• Domex disinfectant/toilet cleaner 
• Rin detergents and bleach 
• Sunlight detergent and colour care 
• Surf Excel detergent and gentle wash 
• Vim dishwash 
• Magic – Water Saver

Personal Care Brands: 

• Aviance Beauty Solutions 
• Axe deodorant and aftershaving lotion and soap 
• LEVER Ayush Therapy ayurvedic health care and personal care products 
• Breeze beauty soap
• Clear anti-dandruff hair products 
• Clinic Plus shampoo and oil 
• Close Up toothpaste 
• Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants 
• Denim shaving products 
• Fair & Lovely skin-lightening products 
• Hamam 
• Lakmé beauty products and salons 
• Lifebuoy soaps and handwash range 
• Liril 2000 soap 
• Lux soap, body wash and deodorant 
• Pears soap 
• Pepsodent toothpaste 
• Pond's talcs and creams 
• Rexona soap 
• Sunsilk shampoo 
• Sure anti-perspirant 
• Vaseline petroleum jelly, skin care lotions 
• TRESemmé 
• TIGI

Water Purifier Brand: 

•  Pureit Water Purifier

 

www.switch2life.com

Yo-Yo Market

Very volatile market is known as Yo-Yo Market. It will have no distinguishing features of either an up or down market, taking on characteristics of both. Security prices in a yo-yo market will swing very high to low over a given period of time, making it difficult for buy and hold investors to profit.

Yo-yo markets can, however, be profitable environments for astute traders who are able to recognize buy and sell points and make trades before the market reverses. The name comes from the movements of a yo-yo, where security prices continually go up and down; a yo-yo market moves like its toy namesake.

www.switch2life.com

Obligation

In the financial world, obligation refers to an outstanding debt that a party must still repay - and if they do not pay, they default on the debt. Obligation is a facility which supports selling of shares on the next trading day after they are purchased in delivery, by allowing you to sell the shares that you have purchased in delivery even before those shares are credited to your Demat account.
Suppose, you have purchased a specific share on Monday, it will take two trading days for those shares to be credited to your demat account i.e. you will receive those shares on Wednesday evening. This is known as T+2 settlement of shares. During these two days when the settlement is still under process these shares will remain in obligation. Thus giving you the liberty to sell those shares even before the settlement cycle is completed.

www.switch2life.com