Did you know?

Starting April 1 2012, RBI has announced that the validity of Cheques & Demand draft would be only 3 months (Earlier it was 6 months)

Can i buy Bank stocks?

Market is going down. No sight of bottom. All the bank stocks are crashing due to multiple negative news around them.
Main reasons are

1. Due to Inflation , Repo & CRR rate hike by RBI.
2. NPA was raising due to high interest rates.

Should i wait or buy or sell? Valuations have become very attractive hence start the accumulation and add more when it goes down below

Here are my points to ask everyone to start buying the bank stocks

1. RBI hinted that they would be hold raising interest rates in next cycle.
2. Monsoon was very good and it should reduce the Inflation.
3. Our banks are very well controller by RBI unlike international banks. Hence even if Greek (PIGS) issue goes big, it won't affect banks

I would recommend buying the Large cap banks so that you have some stability in your portfolio, also they would with stand even during extreme times.

Name of the Bank	Current Price	Net Profit	Deposit Growth	Non Performing Asset
ICICI Bank	821	18.43%	19.54%	0.93%
Axis Bank	1057	17.44%	12.65%	0.34%
HDFC Bank	464.05	17.85%	16.22%	0.20%
SBIN	1798.35	10.82%	11.98%	2.04%
Bank of Baroda	775.85	16.08%	14.52%	0.47%

The above listed banks can give very good returns in the long term and also provide stability to your portfolio. 

Health is Wealth

Day in day out, we work and we earn to live life for the future. But how many of you think that our wealth is in our health. As long as our health is good, we don't care about it and we take it for granted. My sincere advice to you is that take care of your health now so that it takes care of you. How much ever money we earn, unless your health is good, you can't enjoy it.

Posting few images below. Please smile :-))

Mostly every one use this :-))

How much do I save & where do I invest them?

There is no fixed calculation which says that how much you need to save. But mostly everyone recommends that one has to save 10% of income. It would be a good starting point and you should consider increasing saving amount month on month.

The other way to find how much money you can save is by increasing the amount you could save until it starts to hurt you. But one should keep themselves little tight so that they could save them from lavish spending.

Saving money from your salary is not enough for your future. You should invest them at right places so that it can grow itself (Money making Money J).  Now how do you plan?

Purpose	% of money from your saving
Liquid Funds (For Emergency Purpose)	15%
Term & Health Insurance	5%
Stocks & Mutual Funds	35%
Fixed Deposits, Bonds & RD	30%
Gold	10%

I would go about explain each one of them in coming days.

Do you know about eGold?

Almost everyone knows about various Gold ETF But, do you know about the concept of ‘e-Gold’ (electronic gold) which houses equivalent physical gold maintained in exchange designated vault?

First let us understand the differance between Gold ETF and E-Gold

Gold ETF	eGOLD
Gold ETF is an exchange traded mutual fund scheme	e-Gold is physical gold held in dematerialized form which can be traded electronically at National Spot Exchange Ltd (NSEL), in India.
Objective of Gold ETF is to track closely the spot prices of the precious yellow metal, it does not necessarily hold physical gold stock at its fullest	e-Gold is a digital gold currency that allows you to trade or even redeem physical gold from your demat account.
It can’t be converted to Physical gold	It can be converted to physical gold. For conversion of e-gold into physical gold as per the current rates, VAT will be 1 % of the value of goods. In case physical delivery takes place in Mumbai, octroi @ 0.1 % of the value of delivery will also be applicable.
Only transaction charges while you buy or sell are applicable over here as per your brokerage.	Apart from transaction charges, The Exchange shall levy the turnover charges of Rs. 20 per lakh of turnover to both buyer and seller member on monthly basis. This shall be applicable on all executed transactions. Storage charges shall be levied by the Exchange on monthly basis. Such charges will be computed based on the holding in the respective accounts on the last Saturday of every month. The charges per month per unit of E-GOLD will be 60 paise only.

Benefits of trading in E-Gold

•  Convenience to trade and transparency in price.
• ETFs as fund houses charge for AMCs; e-Gold is digital gold currency.
• E-Gold can be redeemed for physical gold, unlike Gold ETFs.
• In future, e-Gold can be converted into jewellery; unlike Gold ETFs.
• E-Gold is tradable for longer hours than Gold ETFs.
• E-Gold are spot rates of gold, Gold ETFs intends to mirror gold prices.

Taxation

The e-Gold units will be treated as Gold for tax purposes. The units should be held for more than 36 months for availing the confessional tax treatment accorded to long term capital gains and for exemption eligibility under Section 54 F or 54 EC of Income Tax Act, 1956. You will also have to pay wealth tax on the market value of the electronic units lying in your account as on 31st March of each year, if the total value of your taxable wealth together with market value of e-Gold exceeds Rs. 30 lacs.

	Gold Mutual fund	Gold ETF	eGold	Gold from jeweler
Short term capital gains	General rate of taxation	General rate of taxation	General rate of taxation	General rate of taxation
Time in which asset becomes long term ( which is eligible for lower rate of tax @ 10 %)	Yes, within one year only , the rate of tax goes down to 10 %	Yes, within one year only , the rate of tax goes down to 10 %	In 3 years it becomes long term capital asset.	In 3 years it becomes long term capital asset.
Long term Gains tax	10 % without indexation	10 % without indexation	20%	20%
Wealth tax	Nil	Nil	Yes	Yes
Dividend	Tax Free	Tax Free	No dividend	No dividend

Conclusion

Though the product serves the purpose of common man of accumulating gold in small-small quantities over a period of time, not many people are aware of this product. If you are looking to park your money temperorily in gold related investment, then Gold ETF is best. In case you are looking to accumulate & invest your money in gold for your kids then eGold is the best method.

Disclaimer: This Blog, its owner, creator & contributor are not responsible for any loss arising out of any information, post or recommendations appearing on this blog. Investors are advised to consult financial consultant before acting on any such information.

Sukhjit Starch and Chemicals BSE: 524542

Here is again a golden oppurtunity in front of us. Before I ask you to accumulate, i would like to tell you why it is attractive buy

 Background about the company : Sukhjit starch and chemicals is one of the largestmanufacturer of starch and starch derivatives in India. Company has four units one each in Punjab,Andhhra Pradesh,West Bengal and Himachal. Company’s products are widely used in industrieslike Confectionery, Bakery ,Preserved food,Baby foods,Ice creams..etc. All of theseindustries are closely related with directconsumer spending. Company is a preferredsupplier of well known firms like WrigleyIndia Ltd., Dabur India Ltd., PerfettiIndia Ltd.,Godrej,  Parle, and  Cadbury.

Financial Background : They have made the EPS of Rs53 year ending Mar 2011. In Mar 2010 they made Rs19. This is 300% growth. But this qtr due to Monsoon and other inflation the results were bad (Profits down by 50%). But if you look at past results their Sep Qtr is always weak.

Rewarding Investors : This company has a trend of announcing huge dividents and Bonus regularly. Also promotors keep buying the shares from open market and increase their % of holdings. As of last Qtr they have 58.66% shares.

Future Growth -- This company is selected by famous research magazine as one of the company which can become future gaint in the coming years.

Range to buy : It is again very good oppurtunity to buy this company at lower price and have it in your portfolio. You may accumulate this share below Rs240.

Disclaimer: This Blog, its owner, creator & contributor are not responsible for any loss arising out of any information, post or recommendations appearing on this blog. Investors are advised to consult financial consultant before acting on any such information.