MUMBAI: Brokers expect the domestic stock market to begin the week firmly, as renewed signs of a recovery in the US economy are likely to lift the mood in world markets. US stocks rose on Friday, posting their fourth consecutive weekly gain, as investors were heartened by improving demand for capital goods, technology products and consumer items.
Back home, brokers warned that any uptrend could be accompanied by sharp swings in share prices, as is usually the case in the week when equity derivatives contracts expire. Futures and options contracts for the current month expire on Thursday.
Benchmark indices have risen nearly 12% this month alone, raising concerns that the market may be overheating, because of excess liquidity. Foreign institutional investors (FIIs) have poured over $16 billion into Indian shares in 2010 — over $4 billion in September alone — driving the Sensex and Nifty above the psychological levels of 20000 and 6000, respectively.
The BSE’s Sensex ended last week at a 32-month closing high of 20045 and the NSE’s Nifty closed at 6018. At roughly 19 times estimated one-year forward earnings, the Indian market appears expensive relative to its historical average, even as the outlook on the economy and corporate earnings is robust.
“The momentum has been very strong. So, even if valuations may seem expensive, the underlying positive tone will help the market make new highs,” said Bhavin Desai, manager-derivatives, Motilal Oswal Financial Services. “The Nifty’s expiry rise to around 6100 by Thursday at derivatives expiry, but the choppy situation will increase. So, traders should be cautious,” added Mr Desai.
However, investors who are cautious at current levels have increased their exposure to defensive sectors like pharma and fast-moving consumer goods (FMCG), as these stocks traditionally fall to a lesser extent during a market correction. Shares of FMCG behemoth Hindustan Unilever (HUL) rose to a 10-year high on Friday.
“Investors, who had entered the market at lower levels, have been booking profits and reinvesting them in these stocks,” said Manish Boricha, vice-president & business head, PMS & HNI sales, Sharekhan, referring to the interest in defensive stocks. “These will remain the flavour of the market near term,” he added.
On the global front, investors will keenly observe the manufacturing and personal income data, along with consumer-spending data for August, which is expected to show moderate gains.
Sunday, September 26, 2010
India ranked third among most powerful nations
Washington: India is listed as the third most powerful country in the world after the U.S. and China and the fourth most powerful bloc after the U.S., China and the European Union in a new official U.S. report.
The new global power lineup for 2010 also predicted that New Delhi's clout in the world will further rise by 2025, according to "Global Governance 2025" jointly issued by the National Intelligence Council (NIC) of the US and the European Union's Institute for Security Studies (EUISS).
Using the insights of a host of experts from Brazil, Russia, India and China, among others, and fictionalised scenarios, the report illustrates what could happen over the next 25 years in terms of global governance.
In 2010, the U.S. tops the list of powerful countries/regions, accounting for nearly 22 percent of the global power.
The U.S. is followed by China with European Union at 16 percent and India at eight percent. India is followed by Japan, Russia and Brazil with less than five percent each.
According to this international futures model, by 2025 the power of the U.S., EU, Japan and Russia will decline while that of China, India and Brazil will increase, even though there will be no change in this listing.
By 2025, the U.S. will still be the most powerful country of the world, but it will have a little over 18 percent of the global power.
The U.S. will be closely followed by China with 16 percent, European Union with 14 percent and India with 10 per cent.
"The growing number of issues on the international agenda, and their complexity, is outpacing the ability of international organizations and national governments to cope," the report warns.
This critical turning point includes issues of climate change, ethnic and regional conflicts, new technology, and the managing of natural resources.
The report also highlights the challenges proponents of effective global governance face.
On one hand, rapid globalization, economic and otherwise, has led to an intertwining of domestic politics and international issues and fueled the need for more cooperation and more effective leadership.
But on the other hand, an increasingly multipolar world, often dominated by non-state actors, have put a snag in progress toward effectual global governance, it said
The new global power lineup for 2010 also predicted that New Delhi's clout in the world will further rise by 2025, according to "Global Governance 2025" jointly issued by the National Intelligence Council (NIC) of the US and the European Union's Institute for Security Studies (EUISS).
Using the insights of a host of experts from Brazil, Russia, India and China, among others, and fictionalised scenarios, the report illustrates what could happen over the next 25 years in terms of global governance.
In 2010, the U.S. tops the list of powerful countries/regions, accounting for nearly 22 percent of the global power.
The U.S. is followed by China with European Union at 16 percent and India at eight percent. India is followed by Japan, Russia and Brazil with less than five percent each.
According to this international futures model, by 2025 the power of the U.S., EU, Japan and Russia will decline while that of China, India and Brazil will increase, even though there will be no change in this listing.
By 2025, the U.S. will still be the most powerful country of the world, but it will have a little over 18 percent of the global power.
The U.S. will be closely followed by China with 16 percent, European Union with 14 percent and India with 10 per cent.
"The growing number of issues on the international agenda, and their complexity, is outpacing the ability of international organizations and national governments to cope," the report warns.
This critical turning point includes issues of climate change, ethnic and regional conflicts, new technology, and the managing of natural resources.
The report also highlights the challenges proponents of effective global governance face.
On one hand, rapid globalization, economic and otherwise, has led to an intertwining of domestic politics and international issues and fueled the need for more cooperation and more effective leadership.
But on the other hand, an increasingly multipolar world, often dominated by non-state actors, have put a snag in progress toward effectual global governance, it said
Saturday, September 25, 2010
Why don't we learn from China: Infosys' Narayana Murthy
The man who founded India’s second largest IT services company three decades ago is getting ready to hang up his boots in a year’s time — an event that has turned the spotlight right back on the company and its much heralded chairman. In an interview with TOI over a south Indian lunch at Infosys’ plush campus in Bangalore , Murthy spoke on why he isn’t losing sleep over the brouhaha at US’ protectionist rhetoric, on why he will never sacrifice margins and profitability for revenues and of course, on his succession and his rightly earned time “to smell the coffee” . Excerpts:
Is this the most protectionist that you have seen the US to be? Earlier, there was a lot of rhetoric, now there are legislating to make outsourcing difficult...
No. First of all, we (Indian industry) do very little work with the government, either state or federal. Therefore, whatever happened in Ohio is not going to have much impact on us. As far as the H1, L1 visas are concerned, you know, having a financial filter to vary policy is probably the best because that way there will be a certain burden on us but also an incentive to innovate, to come out with better value propositions for our customers.
You will not lose any sleep over it?
No, I don’t think so.
But the fear is that a window has been opened. Now that they have legislated on one thing (H1, L1 visas) they might do on other fronts too?
You know, it was very interesting to listen to Anand Sharma (union commerce minister ) who was on our campus recently. I never thought a time would come when an Indian Cabinet minister would be talking about the protectionist tendencies of the US! I never thought that I would live to see that. I think these are very clearly examples of how the global scenario has changed. Frankly, looking at it from the perspective of President Obama, I can understand him. For a nation that is generally used to 4-5 % unemployment, to have that touch 9-10 % and where employment is the prime issue in elections, I can understand him. But I know one thing.
The solution for us is not to become strident or jingoistic. It would be better to use innovation, use ideas by which we become more indispensable to our customer. You see, today, China does not talk. They have demonstrated by becoming more and more indispensable to the global economic order thanks to their hard work and commitment. China has understood that talk can take you only so far.
If we, together — industry, individual companies, academia and government — can make Indian companies more and more indispensable to the new world economic order, that would be enough. China is a fantastic example — a nation which has become the second largest economy globally in a matter of 32 years. Isn’t it extraordinary? Somehow, nobody says here, “Why don’t we learn from China?” Arnold Schwarzenegger goes to China and says — I find this unbelievable — that China will be one of the two countries they will shortlist to build California’s high-speed metro! Coming back to the Indian market, in the last few quarters, your competitors seem to be catching up with you. Cognizant is doing brilliantly. I am very happy for them.
There is a feeling that Infosys has gotten conservative...
No. Look at it this way. We are growing in some ways more than the industry average. Other than Cognizant , we have been growing pretty well. We have maintained our margin difference. Also there’s a difference between growth at $3 billion and at $5 billion. If you look at our growth rate, when we were $3 billion, certainly we also grew fast. While I congratulate and am happy with the performance of Cognizant as an Indian, we must look at facts and data and then come to conclusions.
There’s a feeling that Infosys has lost its mojo. It isn’t setting the lead the way it used to.
No. Kris (S Gopalakrishnan, Infosys CEO) has done a fantastic job. I am extremely happy. He has been the first CEO under these tough conditions and he has done a pretty good job. The only area where we have not been able to do as well as we want to is in acquisitions.
So not chasing acquisitions for top-line growth is deliberate?
No. But unless we find a candidate that we are very confident will add significant value to us, we don’t want to do it. I don’t want to mention specific names, but you please look at all those people who have done acquisitions and whether they have indeed got value. It’s not that clear. We don’t want to do acquisitions that bring down our margins significantly because we don’t play the top-line game. We have never done that.
But the over-emphasis on bottom-line at the expense of volumes...
If anybody can be held responsible for that, it’s me. It’s my belief that in the end, you have to make good bottom-line . That’s what gives you cash to invest in people, in new technologies , new initiatives, new infrastructure , etc. I don’t think there is another company — I may be wrong — which has invested as much as we have in physical/technological infrastructure. We have 650 fellows in our SETlabs (R&D arm). We work with several universities . The kind of facilities we have provided our employees, I don’t think anybody else has.
Is this the most protectionist that you have seen the US to be? Earlier, there was a lot of rhetoric, now there are legislating to make outsourcing difficult...
No. First of all, we (Indian industry) do very little work with the government, either state or federal. Therefore, whatever happened in Ohio is not going to have much impact on us. As far as the H1, L1 visas are concerned, you know, having a financial filter to vary policy is probably the best because that way there will be a certain burden on us but also an incentive to innovate, to come out with better value propositions for our customers.
You will not lose any sleep over it?
No, I don’t think so.
But the fear is that a window has been opened. Now that they have legislated on one thing (H1, L1 visas) they might do on other fronts too?
You know, it was very interesting to listen to Anand Sharma (union commerce minister ) who was on our campus recently. I never thought a time would come when an Indian Cabinet minister would be talking about the protectionist tendencies of the US! I never thought that I would live to see that. I think these are very clearly examples of how the global scenario has changed. Frankly, looking at it from the perspective of President Obama, I can understand him. For a nation that is generally used to 4-5 % unemployment, to have that touch 9-10 % and where employment is the prime issue in elections, I can understand him. But I know one thing.
The solution for us is not to become strident or jingoistic. It would be better to use innovation, use ideas by which we become more indispensable to our customer. You see, today, China does not talk. They have demonstrated by becoming more and more indispensable to the global economic order thanks to their hard work and commitment. China has understood that talk can take you only so far.
If we, together — industry, individual companies, academia and government — can make Indian companies more and more indispensable to the new world economic order, that would be enough. China is a fantastic example — a nation which has become the second largest economy globally in a matter of 32 years. Isn’t it extraordinary? Somehow, nobody says here, “Why don’t we learn from China?” Arnold Schwarzenegger goes to China and says — I find this unbelievable — that China will be one of the two countries they will shortlist to build California’s high-speed metro! Coming back to the Indian market, in the last few quarters, your competitors seem to be catching up with you. Cognizant is doing brilliantly. I am very happy for them.
There is a feeling that Infosys has gotten conservative...
No. Look at it this way. We are growing in some ways more than the industry average. Other than Cognizant , we have been growing pretty well. We have maintained our margin difference. Also there’s a difference between growth at $3 billion and at $5 billion. If you look at our growth rate, when we were $3 billion, certainly we also grew fast. While I congratulate and am happy with the performance of Cognizant as an Indian, we must look at facts and data and then come to conclusions.
There’s a feeling that Infosys has lost its mojo. It isn’t setting the lead the way it used to.
No. Kris (S Gopalakrishnan, Infosys CEO) has done a fantastic job. I am extremely happy. He has been the first CEO under these tough conditions and he has done a pretty good job. The only area where we have not been able to do as well as we want to is in acquisitions.
So not chasing acquisitions for top-line growth is deliberate?
No. But unless we find a candidate that we are very confident will add significant value to us, we don’t want to do it. I don’t want to mention specific names, but you please look at all those people who have done acquisitions and whether they have indeed got value. It’s not that clear. We don’t want to do acquisitions that bring down our margins significantly because we don’t play the top-line game. We have never done that.
But the over-emphasis on bottom-line at the expense of volumes...
If anybody can be held responsible for that, it’s me. It’s my belief that in the end, you have to make good bottom-line . That’s what gives you cash to invest in people, in new technologies , new initiatives, new infrastructure , etc. I don’t think there is another company — I may be wrong — which has invested as much as we have in physical/technological infrastructure. We have 650 fellows in our SETlabs (R&D arm). We work with several universities . The kind of facilities we have provided our employees, I don’t think anybody else has.
Friday, September 24, 2010
INTERVIEWS AT CELEB FINANCIAL PLANNERS Global
INTERVIEWS @ CELEB FINANCIAL PLANNERS Global
VENUE: 1st Floor, 7 Arjun Nagar, Kotla MubarakPur, Bhishmapitama Marg, opp Defence Colony, New Delhi -1100003
Time: 10:00 HRS to 15:00 HRS SATURDAY
10:00 HRS to 20:00 HRS MONDAY to FRIDAY
INTERVIEWS will continue from today 25-09-2010 till 28-02-2011
LEVELS:
Level 1: SCREENING
Level 2: Summer Internship/ Projects/ Certification
Level 3: Case Study
Level 4: Psycho- Analysis
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Level 6:Board of Interview
Positions: FINANCIAL PLANNERS, FINANCIAL ANALYSTS, BUSINESS ANALYSTS, BUSINESS CONSULTANTS, RESEARCH ANALYSTS, ADMINSTRATION Executives, HUMAN RESOURCE Executives, OPERATIONS Executives, IT associates
Final Joinings: 1st APRIL 2011
Place of Postings: Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad, Chandigarh, Jaipur, Ludhiana, Pune, Nasik, Bangalore, Hyderabad, Chennai, Cochin, Trivandrum, Ernakulam, Allapuzha, Secunderabad, Ahmedabad, Kolkata, Lucknow, Kanpur, Indore, Bhopal, Mumbai Metropolitan.
send in your resumes @ hrcfpg@cfpglobal.com; Addressed to Mrs. SreeDevi JKP, Head HR
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HC dismisses writs on LU BEd entrance result
ALLAHABAD: The Allahabad High Court dismissed a bunch of writ petitions seeking direction for the Lucknow University to declare the result of the candidates who appeared in the BEd entrance examination-2010 and had below 50% marks in graduation/postgraduation.
Hearing the petitions, Justice AP Sahi observed that the statutory provisions in the shape of National Council for Teachers Education (NCTE) Regulations 2009 clearly lay down a minimum of 50% marks at the qualifying level and any wrong mention in the brochure will not confer any right or any legitimate expectation which can be founded on some right of the petitioners to claim admission without having obtained a minimum of 50% marks.
Earlier, it was argued on behalf of petitioners that in the advertisement issued by the Lucknow University, the minimum marks required were only 45% and all such candidates had also been issued admit cards for the entrance. Moreover, when such candidates were restrained by the university authorities, the Lucknow bench of the Allahabad High Court had directed the university to permit all such candidates to appear in the said examination. As such, the decision of the university not to declare their result is arbitrary, the petitioners argued.
Representing the state government, standing counsel pointed out that prior to holding of the BEd entrance, earlier scheduled to be held on May 5, the state government had issued a notification on April 30 enhancing the minimum eligibility criterion from 45% to 50% in consonance with the NCTE regulations.
Appearing on behalf of NCTE, R A Akhtar argued that NCTE was the sole regulatory authority in the country to regulate the teachers' education courses which had fixed minimum 50% marks in graduation/postgraduation for BEd course by means of Regulations 2009 and no person can be permitted to violate these statutory regulations.
Read more: HC dismisses writs on LU BEd entrance result - The Times of India http://timesofindia.indiatimes.com/city/lucknow/HC-dismisses-writs-on-LU-BEd-entrance-result/articleshow/6616223.cms#ixzz10VUiDzCJ
Hearing the petitions, Justice AP Sahi observed that the statutory provisions in the shape of National Council for Teachers Education (NCTE) Regulations 2009 clearly lay down a minimum of 50% marks at the qualifying level and any wrong mention in the brochure will not confer any right or any legitimate expectation which can be founded on some right of the petitioners to claim admission without having obtained a minimum of 50% marks.
Earlier, it was argued on behalf of petitioners that in the advertisement issued by the Lucknow University, the minimum marks required were only 45% and all such candidates had also been issued admit cards for the entrance. Moreover, when such candidates were restrained by the university authorities, the Lucknow bench of the Allahabad High Court had directed the university to permit all such candidates to appear in the said examination. As such, the decision of the university not to declare their result is arbitrary, the petitioners argued.
Representing the state government, standing counsel pointed out that prior to holding of the BEd entrance, earlier scheduled to be held on May 5, the state government had issued a notification on April 30 enhancing the minimum eligibility criterion from 45% to 50% in consonance with the NCTE regulations.
Appearing on behalf of NCTE, R A Akhtar argued that NCTE was the sole regulatory authority in the country to regulate the teachers' education courses which had fixed minimum 50% marks in graduation/postgraduation for BEd course by means of Regulations 2009 and no person can be permitted to violate these statutory regulations.
Read more: HC dismisses writs on LU BEd entrance result - The Times of India http://timesofindia.indiatimes.com/city/lucknow/HC-dismisses-writs-on-LU-BEd-entrance-result/articleshow/6616223.cms#ixzz10VUiDzCJ
CHECK THAT ATTITUDE - Sunil Kalra
Recently I came across an entrepreneur who is looking for investment and had a very good idea. I was interested in investing in his idea and would have loved to fund him. I had done my research about the business and had found it interesting, only to realize that the person in question is very arrogant and would not listen. I could have helped him by opening the right doors, but he is not willing to listen.
So what would the outcome be in such a case? I will not invest in this company. It is said to be a successful entrepreneur you need to have a good idea, money and luck. For me, though, it is much more than that. I think Indian entrepreneurs will do well to work hard with passion and the correct attitude.
Interact
Learn to interact with people more easily and with interest. It is easy to find information from books and now from the Internet but you may have a lot to learn from a person whom the world considers illiterate. When you find the right people, it is important to ask the right questions and you should be humble enough to say “I don’t know this. I need help.” This is where I find a lot of Indian entrepreneurs fall and fumble.
No shortcuts
Entrepreneurs need to know what their core skills are and how big and scalable the business is. If you are making Rs.1 lakh at your job and think you can easily make Rs.2 lakh a month if you do it on your own, I would say that is not being an entrepreneur because you are not thinking big enough. To start a business there are many personal sacrifices and a thumb rule is that for the first three years your quality of life will fall. You business stabilizes by the fifth year and to get rich or get rewards it takes about 10 years. People do not have the patience and want a business which after six months or two years makes them rich. People with get-rich-quick schemes are not building enterprises.
The A-team
Teams are very important. In the modern world there are very few businesses that can be built and run by one person. It is all about collaborative efforts, working with people to maximize reach, value and minimize cost.
Unfortunately I come across a lot of entrepreneurs who do not understand the true value of management. The reason they are in business is again because they want to get rich and buy the fancy car and a great home.
Decisive
I meet entrepreneurs who are not decisive and when they take a decision and falter, start a blame game. In the path to success there are failures, but one needs to figure out what went wrong and do it all over again. My message to youngsters who want to start businesses is do not become an entrepreneur if you cannot get a job and think you can make a lot of money.
Take criticism in stride
Many entrepreneurs have big egos and taking criticism is not easy. They have to learn to deal with criticism because as a company grows, your public visibility grows. So you would move from being a small company to mid-sized company and then a public company. Listen to people with an open heart and an open mind so that you get to hear the things which may prove to be important to you.
SUNIL KARLA is a part of the Indian Angel Network.
©Entrepreneur July 2010
So what would the outcome be in such a case? I will not invest in this company. It is said to be a successful entrepreneur you need to have a good idea, money and luck. For me, though, it is much more than that. I think Indian entrepreneurs will do well to work hard with passion and the correct attitude.
Interact
Learn to interact with people more easily and with interest. It is easy to find information from books and now from the Internet but you may have a lot to learn from a person whom the world considers illiterate. When you find the right people, it is important to ask the right questions and you should be humble enough to say “I don’t know this. I need help.” This is where I find a lot of Indian entrepreneurs fall and fumble.
No shortcuts
Entrepreneurs need to know what their core skills are and how big and scalable the business is. If you are making Rs.1 lakh at your job and think you can easily make Rs.2 lakh a month if you do it on your own, I would say that is not being an entrepreneur because you are not thinking big enough. To start a business there are many personal sacrifices and a thumb rule is that for the first three years your quality of life will fall. You business stabilizes by the fifth year and to get rich or get rewards it takes about 10 years. People do not have the patience and want a business which after six months or two years makes them rich. People with get-rich-quick schemes are not building enterprises.
The A-team
Teams are very important. In the modern world there are very few businesses that can be built and run by one person. It is all about collaborative efforts, working with people to maximize reach, value and minimize cost.
Unfortunately I come across a lot of entrepreneurs who do not understand the true value of management. The reason they are in business is again because they want to get rich and buy the fancy car and a great home.
Decisive
I meet entrepreneurs who are not decisive and when they take a decision and falter, start a blame game. In the path to success there are failures, but one needs to figure out what went wrong and do it all over again. My message to youngsters who want to start businesses is do not become an entrepreneur if you cannot get a job and think you can make a lot of money.
Take criticism in stride
Many entrepreneurs have big egos and taking criticism is not easy. They have to learn to deal with criticism because as a company grows, your public visibility grows. So you would move from being a small company to mid-sized company and then a public company. Listen to people with an open heart and an open mind so that you get to hear the things which may prove to be important to you.
SUNIL KARLA is a part of the Indian Angel Network.
©Entrepreneur July 2010
Celebrity Endorsements Still Push Product
Why, in the Era of Social Media, the Rewards Continue to Outweigh the Risks
by Dean Crutchfield
"Everybody lives by selling something," wrote Robert Louis Stevenson, author of "Treasure Island." Agents, CMOs and deal makers will always get starry-eyed by the big names of "celebrity" because brands love endorsements, and consumers buy into "celebrity." Questions remain, however, as to whether the international obloquy related to the Tiger Woods crisis dealt a devastating blow to celebrity endorsement. In light of the risks, is the celebrity endorsement deal still worth it?
MTV
Even C-listers like Nicole 'Snooki' Polizzi of 'Jersey Shore' can lead to little marketing triumphs. Companies know there's risk when they choose a celebrity-endorsement approach. Many have learned the hard way that it becomes a reflection of themselves; just ask Coca-Cola, with its speedy capitulation of its Michael Vick sponsorship. If you put a face to a name, the more likely you'll remember it, and marketers know the same goes with hitching celebrities to their brands.
Recent studies of hundreds of endorsements have indicated that sales for some brands increased up to 20% upon commencing an endorsement deal. According to Anita Elberse, associate professor at Harvard Business School, some companies have seen their stock increase by .25% on the day the deal was announced.
There is the issue of overexposure to consider. We receive more than 3,000 commercial images a day; our subconscious absorbs more than 150 images and roughly 30 reach our conscious mind. Therefore, practice has it that if you use a celebrity-endorsement strategy, you dramatically accelerate the potential for your brand to reach the conscious mind of the consumer, especially given research from Weber Shandwick that finds peer endorsement trumps advertising.
So if word-of-mouth is the No. 1 purchase decision-maker, why are some CMOs displaying recalcitrance toward big names that can create so much brand buzz and peer recommendation? Are we witnessing the decline and fall of "celebrity"? It's true that not every brand needs a celebrity -- it has to be relevant to the brand and the consumer. More important, if there were a face for every brand out there, it would be a calamity.
On the upside, celebrity endorsement has the power to instigate and inspire, enlighten and enrage, entertain and edify the consumer. Its inherent benefits are that it can be leveraged across multiple channel experiences (and potentially services), cuts through advertising clutter, creates a brand narrative and allows for channel-specific optimization. Ultimately, celebrity endorsement is always worth investing in if you have the right person. It's an expensive but easy option for companies, but it should be treated like a marriage with added creature comforts that make the partnership invaluable:
The opportunity to create new markets and/or tap into an activation base of fans. Such was the strategy behind Patrick Dempsey's Unscripted men's perfume for Avon.
The ability to spark sales by enticing consumers to learn more about the brand. LeBron James is one of the top three paid athletes in the world and generates a brand halo.
The means to promote a unique, relevant and sustainable brand attribute that might be hard to attain otherwise. Nike's rapid success in the golf category was chiefly because golfers wanted to lay claim to the number-one golfer in the world.
The option to build reciprocity into the partnership by supporting the celebrity endorser's brand. Lady Gaga knows how to sell, and business publications praise her business smarts as she masters social media and expands her brand beyond music.
The grounds for innovating the product/service offering. Rihanna's "Umbrella" song hit big at the Grammys, and her designs for Totes' umbrellas hit big at the retailer.
The challenge to a preconceived notion. Givenchy used Justin Timberlake's endorsement for the women's perfume Play for Her.
The collaboration that can impact the business model of the partnership. A noteworthy example is Sean Combs taking a 50/50 ownership in Diageo's ailing grape vodka, Ciroc.
All are sound criteria for a celebrity endorsement strategy, but the split over the Tiger Woods affair conflicts with an otherwise inviolable marketing convention: using celebrities to market the offer instead of featuring the product or service's value for consumers and the value that underpins their manufacture.
And what about the role and risks of social media? Celebrity endorsement is often stymied by constraints and contractual limitations; does leveraging social media represent the next evolution for celebrity endorsement and brand advocacy? 95% of social-media users believe a company should have a presence in social media, which can get the brand into the conversation because social media enables consumers to adopt new behaviors.
And CMOs need to incorporate these new behaviors into celebrity-endorsement strategies because social networks make up marketing's most powerful media: recommendation. Though fraught with danger, social media's potential for making celebrity endorsement a multi-platform juggernaut rests not with what happens inside it, but what it makes occur outside of it.
Horror and probes over the last 18 months demonstrate that celebrity-endorsement strategies are a scary, inherently unstable but essential marketing activity, as brand share is too strong an incentive to keep celebrity endorsement down. An estimated $50 billion is invested globally on corporate sponsorships and endorsements. While a majority of that is spent on sports marketing, "celebrity" plays a dynamic role.
However, the machinations over value and values are the debate of the industry. The bottom line: The more problematic high-profile celebrity endorsers, the better bargaining power for CMOs.
CMOs understand the value of owning celebrity endorsement and using it to bolster the customer relationship. CMOs know that few brand-building strategies can deliver on the bottom line as much as celebrities, simply because the product will sell better. Newer forces are also fortuitously propping up the celebrity endorsement boom with B-, C- and reality-TV-listers constantly seeking new ways to blur the lines between commercial and entertainment worlds. Even C-listers like Nicole "Snooki" Polizzi of "Jersey Shore" can lead to little marketing triumphs.
U.S. celebrities show up in more than 15% of advertisements, according to Millward Brown, and the number is far higher in markets such as India (24%) and Taiwan (45%). So before we shoot a golf ball through celebrity endorsements, let's recognize that they've never gone out of vogue nor will they, because the rewards of relying on an endorser can far outweigh the risks.
What we search for in celebrities is not so far from what we search for in our friends. The secret is to never trust an animal no matter how many legs it has.
ABOUT THE AUTHOR
Dean Crutchfield is chief engagement officer at Method, a brand experience agency with offices in New York, San Francisco and London.
by Dean Crutchfield
"Everybody lives by selling something," wrote Robert Louis Stevenson, author of "Treasure Island." Agents, CMOs and deal makers will always get starry-eyed by the big names of "celebrity" because brands love endorsements, and consumers buy into "celebrity." Questions remain, however, as to whether the international obloquy related to the Tiger Woods crisis dealt a devastating blow to celebrity endorsement. In light of the risks, is the celebrity endorsement deal still worth it?
MTV
Even C-listers like Nicole 'Snooki' Polizzi of 'Jersey Shore' can lead to little marketing triumphs. Companies know there's risk when they choose a celebrity-endorsement approach. Many have learned the hard way that it becomes a reflection of themselves; just ask Coca-Cola, with its speedy capitulation of its Michael Vick sponsorship. If you put a face to a name, the more likely you'll remember it, and marketers know the same goes with hitching celebrities to their brands.
Recent studies of hundreds of endorsements have indicated that sales for some brands increased up to 20% upon commencing an endorsement deal. According to Anita Elberse, associate professor at Harvard Business School, some companies have seen their stock increase by .25% on the day the deal was announced.
There is the issue of overexposure to consider. We receive more than 3,000 commercial images a day; our subconscious absorbs more than 150 images and roughly 30 reach our conscious mind. Therefore, practice has it that if you use a celebrity-endorsement strategy, you dramatically accelerate the potential for your brand to reach the conscious mind of the consumer, especially given research from Weber Shandwick that finds peer endorsement trumps advertising.
So if word-of-mouth is the No. 1 purchase decision-maker, why are some CMOs displaying recalcitrance toward big names that can create so much brand buzz and peer recommendation? Are we witnessing the decline and fall of "celebrity"? It's true that not every brand needs a celebrity -- it has to be relevant to the brand and the consumer. More important, if there were a face for every brand out there, it would be a calamity.
On the upside, celebrity endorsement has the power to instigate and inspire, enlighten and enrage, entertain and edify the consumer. Its inherent benefits are that it can be leveraged across multiple channel experiences (and potentially services), cuts through advertising clutter, creates a brand narrative and allows for channel-specific optimization. Ultimately, celebrity endorsement is always worth investing in if you have the right person. It's an expensive but easy option for companies, but it should be treated like a marriage with added creature comforts that make the partnership invaluable:
The opportunity to create new markets and/or tap into an activation base of fans. Such was the strategy behind Patrick Dempsey's Unscripted men's perfume for Avon.
The ability to spark sales by enticing consumers to learn more about the brand. LeBron James is one of the top three paid athletes in the world and generates a brand halo.
The means to promote a unique, relevant and sustainable brand attribute that might be hard to attain otherwise. Nike's rapid success in the golf category was chiefly because golfers wanted to lay claim to the number-one golfer in the world.
The option to build reciprocity into the partnership by supporting the celebrity endorser's brand. Lady Gaga knows how to sell, and business publications praise her business smarts as she masters social media and expands her brand beyond music.
The grounds for innovating the product/service offering. Rihanna's "Umbrella" song hit big at the Grammys, and her designs for Totes' umbrellas hit big at the retailer.
The challenge to a preconceived notion. Givenchy used Justin Timberlake's endorsement for the women's perfume Play for Her.
The collaboration that can impact the business model of the partnership. A noteworthy example is Sean Combs taking a 50/50 ownership in Diageo's ailing grape vodka, Ciroc.
All are sound criteria for a celebrity endorsement strategy, but the split over the Tiger Woods affair conflicts with an otherwise inviolable marketing convention: using celebrities to market the offer instead of featuring the product or service's value for consumers and the value that underpins their manufacture.
And what about the role and risks of social media? Celebrity endorsement is often stymied by constraints and contractual limitations; does leveraging social media represent the next evolution for celebrity endorsement and brand advocacy? 95% of social-media users believe a company should have a presence in social media, which can get the brand into the conversation because social media enables consumers to adopt new behaviors.
And CMOs need to incorporate these new behaviors into celebrity-endorsement strategies because social networks make up marketing's most powerful media: recommendation. Though fraught with danger, social media's potential for making celebrity endorsement a multi-platform juggernaut rests not with what happens inside it, but what it makes occur outside of it.
Horror and probes over the last 18 months demonstrate that celebrity-endorsement strategies are a scary, inherently unstable but essential marketing activity, as brand share is too strong an incentive to keep celebrity endorsement down. An estimated $50 billion is invested globally on corporate sponsorships and endorsements. While a majority of that is spent on sports marketing, "celebrity" plays a dynamic role.
However, the machinations over value and values are the debate of the industry. The bottom line: The more problematic high-profile celebrity endorsers, the better bargaining power for CMOs.
CMOs understand the value of owning celebrity endorsement and using it to bolster the customer relationship. CMOs know that few brand-building strategies can deliver on the bottom line as much as celebrities, simply because the product will sell better. Newer forces are also fortuitously propping up the celebrity endorsement boom with B-, C- and reality-TV-listers constantly seeking new ways to blur the lines between commercial and entertainment worlds. Even C-listers like Nicole "Snooki" Polizzi of "Jersey Shore" can lead to little marketing triumphs.
U.S. celebrities show up in more than 15% of advertisements, according to Millward Brown, and the number is far higher in markets such as India (24%) and Taiwan (45%). So before we shoot a golf ball through celebrity endorsements, let's recognize that they've never gone out of vogue nor will they, because the rewards of relying on an endorser can far outweigh the risks.
What we search for in celebrities is not so far from what we search for in our friends. The secret is to never trust an animal no matter how many legs it has.
ABOUT THE AUTHOR
Dean Crutchfield is chief engagement officer at Method, a brand experience agency with offices in New York, San Francisco and London.
Wednesday, September 22, 2010
INTERVIEWS ON SATURDAY 10:00 HRS TO 14:00 HRS
Why CELEB FINANCIAL PLANNERS Global
At CELEB FINANCIAL PLANNERS GLOBAL in India, you will find challenging opportunities in an environment that recognizes and rewards exceptional performance. We seek experienced individuals capable of delivering a wide range of value-added services to our clients around the world, while helping them to confront today's critical issues head on. CELEB FINANCIAL PLANNERS GLOBAL is an Indian company providing professional services in the field of business consulting, financial consulting , and accounting services, with a consistent standard of service delivery and commitment to quality.
Message from the Head of HR
The mantra of human resource management in CELEB FINANCIAL PLANNERS Global is its ability to recognize the different set of values, experience and skills set that various individuals bring and to nurture an environment where every employee feels a sense of ownership and aspires to make a difference.
CELEB FINANCIAL PLANNERS GLOBAL Values
The CELEB FINANCIAL PLANNERS GLOBAL believes in mesmerizing the best practices of all cultural values which are ethically correct (ethically here signifies anything which your true conscience says it is wrong) is one of the most comprehensive and rigorous description of what CELEB FINANCIAL PLANNERS GLOBAL stands for. It is how we think we can make a difference in the lives of people in and outside the organization. In doing so, it brings together elements of the organization that have previously been inconsistently linked.
Celebrated 02 years
"Every day, CELEB FINANCIAL PLANNERS GLOBAL in India serve a number of India’s largest and most respected companies, invest their time and resources to community initiatives, and continue to make CELEB FINANCIAL PLANNERS GLOBAL a great place to build a career."
–AJIT PANICKER, MD & CEO, Celeb Financial Planners GLOBAL
Work and Life at CELEB FINANCIAL PLANNERS GLOBAL
CELEB FINANCIAL PLANNERS GLOBAL in India is a vibrant and dynamic organization, which thrives on working hard but also seeks to provide ample opportunities for our people to entertain themselves in the process. The entire firm involves itself in a variety of activities including sports, yoga sessions, games and events and this is apparent when you join CELEB FINANCIAL PLANNERS GLOBAL in India.
All through the year, numerous social events are arranged within your work group as well as across the firm. These events and activities are aimed at giving you the opportunity to interact and socialize with your colleagues across locations within India.
CELEB FINANCIAL PLANNERS GLOBAL in India provides a supportive work culture to employees by initiating some good policies for employee welfare. There is openness towards discussing new ideas and the support of the senior management is quite encouraging. There is respect for an individual and team working is valued. There is definitely a healthy work environment provided. There are good practices and initiatives that are being actioned by various disciplines that can be replicated across the organization.
It is our ambition that everyone at CELEB FINANCIAL PLANNERS GLOBAL in India should accomplish a personal and professional balance in their life, for which we also provide exciting avenues for your overall development.
Career Progression
Career mobility at CELEB FINANCIAL PLANNERS GLOBAL is not just about working abroad. We recognize that moving to another department down the corridor can be just as beneficial as moving to another country. At CELEB FINANCIAL PLANNERS GLOBAL, you have the opportunity to apply for internal vacancies to assist you in maximizing your career.
People Focus
Life Balance – we understand it is tough to maintain the right balance between your personal and professional life. Hence offering our people an energetic and healthy work environment improves performance and boosts employee morale.
Frequently Asked Questions
Q: I have submitted my application for a position 2 weeks ago. I am interested in a different position now. Do I need to re-submit my resume?
A: No, you are not required to re-submit your resume as it would already have been captured in our database and we will do a search for suitable matches. However, if you wish to apply for another position, you can utilize or update the same resume you have submitted to us via the website.
Q: I would like to submit my resume for your retention so that you can call me if there are any suitable positions. How can I do that? Who do I send it to?
A: Please use the online application form within the recruitment website and your resume will be captured on our database for future openings.
Q: If I am currently in another industry and wish to pursue a career with CELEB FINANCIAL PLANNERS GLOBAL will my application be considered?
A: All applications will be considered in accordance with the requirements of the role.
Q: If I am considered unsuitable for a position, will I be informed?
A: Unfortunately, only short-listed candidates will be notified.
Q: If I wish to apply for a position in Australia, how do I go about doing it?
A: Please select the country of your choice and apply directly to the CELEB FINANCIAL PLANNERS GLOBAL website.
Q: How many interviews would one have to go for before a job offer is made?
A: There would be an average of about three stages to the recruitment process, one with HR, and two with the business that is hiring this position.
Q: Will I be sent for training courses to upgrade my skills?
A: Yes. CELEB FINANCIAL PLANNERS GLOBAL strongly believes in continuous training and development.
Q: Do I need to meet all the requirements stated for a position before I can apply for the job?
A: No. You can still apply for the position even if you do not meet all the requirements whereby your application will be considered with all other applications.
Q: I do not hold a valid work permit to work in India, can I still apply for a position for India?
A: We will consider your application in accordance with the local labor law.
Careers
CELEB FINANCIAL PLANNERS GLOBAL in India is looking to recruit energetic, dynamic and talented individuals for its various teams in India.
CELEB FINANCIAL PLANNERS GLOBAL offers its people a professional, challenging and stimulating environment where you will be an integral member of the team. You can look forward to experiencing an opportunity that will encourage you to grow on both the professional and personal front - by providing you invaluable experience and knowledge in a variety of business areas and interpersonal skills.
The listing of our current open positions is available for your viewing.
Interested applicants can forward their profiles to the indicated email id by clearing specifying the Function and Position name in the subject column.
1.Business analysts
2.Financial analysts
3.Research analysts
4.Consultants
5.Administrative Officer–EA to MD & CEO
6.Financial planners
Send ur RESUMES to hrcfpg@cfpglobal.com, addressed to Mrs. Sreedevi JKP, HEAD HR
At CELEB FINANCIAL PLANNERS GLOBAL in India, you will find challenging opportunities in an environment that recognizes and rewards exceptional performance. We seek experienced individuals capable of delivering a wide range of value-added services to our clients around the world, while helping them to confront today's critical issues head on. CELEB FINANCIAL PLANNERS GLOBAL is an Indian company providing professional services in the field of business consulting, financial consulting , and accounting services, with a consistent standard of service delivery and commitment to quality.
Message from the Head of HR
The mantra of human resource management in CELEB FINANCIAL PLANNERS Global is its ability to recognize the different set of values, experience and skills set that various individuals bring and to nurture an environment where every employee feels a sense of ownership and aspires to make a difference.
CELEB FINANCIAL PLANNERS GLOBAL Values
The CELEB FINANCIAL PLANNERS GLOBAL believes in mesmerizing the best practices of all cultural values which are ethically correct (ethically here signifies anything which your true conscience says it is wrong) is one of the most comprehensive and rigorous description of what CELEB FINANCIAL PLANNERS GLOBAL stands for. It is how we think we can make a difference in the lives of people in and outside the organization. In doing so, it brings together elements of the organization that have previously been inconsistently linked.
Celebrated 02 years
"Every day, CELEB FINANCIAL PLANNERS GLOBAL in India serve a number of India’s largest and most respected companies, invest their time and resources to community initiatives, and continue to make CELEB FINANCIAL PLANNERS GLOBAL a great place to build a career."
–AJIT PANICKER, MD & CEO, Celeb Financial Planners GLOBAL
Work and Life at CELEB FINANCIAL PLANNERS GLOBAL
CELEB FINANCIAL PLANNERS GLOBAL in India is a vibrant and dynamic organization, which thrives on working hard but also seeks to provide ample opportunities for our people to entertain themselves in the process. The entire firm involves itself in a variety of activities including sports, yoga sessions, games and events and this is apparent when you join CELEB FINANCIAL PLANNERS GLOBAL in India.
All through the year, numerous social events are arranged within your work group as well as across the firm. These events and activities are aimed at giving you the opportunity to interact and socialize with your colleagues across locations within India.
CELEB FINANCIAL PLANNERS GLOBAL in India provides a supportive work culture to employees by initiating some good policies for employee welfare. There is openness towards discussing new ideas and the support of the senior management is quite encouraging. There is respect for an individual and team working is valued. There is definitely a healthy work environment provided. There are good practices and initiatives that are being actioned by various disciplines that can be replicated across the organization.
It is our ambition that everyone at CELEB FINANCIAL PLANNERS GLOBAL in India should accomplish a personal and professional balance in their life, for which we also provide exciting avenues for your overall development.
Career Progression
Career mobility at CELEB FINANCIAL PLANNERS GLOBAL is not just about working abroad. We recognize that moving to another department down the corridor can be just as beneficial as moving to another country. At CELEB FINANCIAL PLANNERS GLOBAL, you have the opportunity to apply for internal vacancies to assist you in maximizing your career.
People Focus
Life Balance – we understand it is tough to maintain the right balance between your personal and professional life. Hence offering our people an energetic and healthy work environment improves performance and boosts employee morale.
Frequently Asked Questions
Q: I have submitted my application for a position 2 weeks ago. I am interested in a different position now. Do I need to re-submit my resume?
A: No, you are not required to re-submit your resume as it would already have been captured in our database and we will do a search for suitable matches. However, if you wish to apply for another position, you can utilize or update the same resume you have submitted to us via the website.
Q: I would like to submit my resume for your retention so that you can call me if there are any suitable positions. How can I do that? Who do I send it to?
A: Please use the online application form within the recruitment website and your resume will be captured on our database for future openings.
Q: If I am currently in another industry and wish to pursue a career with CELEB FINANCIAL PLANNERS GLOBAL will my application be considered?
A: All applications will be considered in accordance with the requirements of the role.
Q: If I am considered unsuitable for a position, will I be informed?
A: Unfortunately, only short-listed candidates will be notified.
Q: If I wish to apply for a position in Australia, how do I go about doing it?
A: Please select the country of your choice and apply directly to the CELEB FINANCIAL PLANNERS GLOBAL website.
Q: How many interviews would one have to go for before a job offer is made?
A: There would be an average of about three stages to the recruitment process, one with HR, and two with the business that is hiring this position.
Q: Will I be sent for training courses to upgrade my skills?
A: Yes. CELEB FINANCIAL PLANNERS GLOBAL strongly believes in continuous training and development.
Q: Do I need to meet all the requirements stated for a position before I can apply for the job?
A: No. You can still apply for the position even if you do not meet all the requirements whereby your application will be considered with all other applications.
Q: I do not hold a valid work permit to work in India, can I still apply for a position for India?
A: We will consider your application in accordance with the local labor law.
Careers
CELEB FINANCIAL PLANNERS GLOBAL in India is looking to recruit energetic, dynamic and talented individuals for its various teams in India.
CELEB FINANCIAL PLANNERS GLOBAL offers its people a professional, challenging and stimulating environment where you will be an integral member of the team. You can look forward to experiencing an opportunity that will encourage you to grow on both the professional and personal front - by providing you invaluable experience and knowledge in a variety of business areas and interpersonal skills.
The listing of our current open positions is available for your viewing.
Interested applicants can forward their profiles to the indicated email id by clearing specifying the Function and Position name in the subject column.
1.Business analysts
2.Financial analysts
3.Research analysts
4.Consultants
5.Administrative Officer–EA to MD & CEO
6.Financial planners
Send ur RESUMES to hrcfpg@cfpglobal.com, addressed to Mrs. Sreedevi JKP, HEAD HR
India's 'savings culture' is its saving grace
India has been traditionally a nation of savers. We have managed to spend less than our income and save the maximum possible amount out of regular income for securing our future. This has also meant postponement of current consumption for a better future.
Maybe, we have not learnt to invest our savings wisely, over the years — as the bank deposits figures will tell us. But all the same, we have been doing reasonably well, post retirement, mainly because of this savings “culture”.
The big question that faces all of us now is: Whether this savings culture is changing? Recently, I addressed a group of fresh recruits of officers in a public sector oil marketing company. I was explaining the virtues of investments and how to plan for meeting the various life goals from a young age.
The group comprised very enthusiastic men and women in the age group of 25-30 years. They appreciated the presentation but one gentleman asked this very important question: “Why are you advising us to save from our salary and invest? What is wrong if we spent our salary on luxuries of life? Why should we not borrow money through credit cards and banks to buy cars and bigger houses and enjoy our life to the fullest at this young age, just like the Americans do?”
I have more than two decades of expeience in advising all age groups of individuals on savings, investments and financial planning but I have never come across a question like this. This is clearly the way the young Indian generation is thinking.
I have been collecting personal information regarding the present state of income and expenditure, assets and liabilities from clients to advise them on financial planning. Of late, I find that the middle aged corporate managers/executives, in the age group of 35-45 years, have very fat pay cheques — much fatter than what thay used to get a few years ago. The unfortunate part is more than 60% of the post-tax salary income, in several cases, is used to pay EMIs on home loans, car loans, consumer durable loans among a host of other loans.
The question raised by the young man as well as the EMI fixation of middle-aged salary earners is setting an alarming trend. Not very long ago, during October 2008 to March 2009, these same middle-aged executives were scared of their future because of the economic downturn and were selling assets to bring down their EMI commitments.
We all learn from history and we also know that history repeats itself. It is nice to be aggressive. There are no arguments against having a decent life with almost all luxuries at a young age. India is proud of its domestic consumption story.
India needs its people to spend. All the same, we should not be carried away by the easy spending consumer culture of the West. One look at the so called “developed economies” will convince us about the virtue of savings “culture” of our country.
In many developed countries “social security” for a senior citizen lies only on paper. The ground reality is that people in the advanced age of 70-75 work in malls at cash registers, airports cleaning the wash rooms, rent-a-car companies, transporting people to and from airports and so on. The Indian middle class may not enjoy a great standard of living but the savings culture definitely ensures that they need not slog at the age of 70 and 80.
Let us stick to our culture — save today; invest regularly and wisely and ensure a safe and comfortable future.
(The expert is Investment Consultant, Trendy Investments
Maybe, we have not learnt to invest our savings wisely, over the years — as the bank deposits figures will tell us. But all the same, we have been doing reasonably well, post retirement, mainly because of this savings “culture”.
The big question that faces all of us now is: Whether this savings culture is changing? Recently, I addressed a group of fresh recruits of officers in a public sector oil marketing company. I was explaining the virtues of investments and how to plan for meeting the various life goals from a young age.
The group comprised very enthusiastic men and women in the age group of 25-30 years. They appreciated the presentation but one gentleman asked this very important question: “Why are you advising us to save from our salary and invest? What is wrong if we spent our salary on luxuries of life? Why should we not borrow money through credit cards and banks to buy cars and bigger houses and enjoy our life to the fullest at this young age, just like the Americans do?”
I have more than two decades of expeience in advising all age groups of individuals on savings, investments and financial planning but I have never come across a question like this. This is clearly the way the young Indian generation is thinking.
I have been collecting personal information regarding the present state of income and expenditure, assets and liabilities from clients to advise them on financial planning. Of late, I find that the middle aged corporate managers/executives, in the age group of 35-45 years, have very fat pay cheques — much fatter than what thay used to get a few years ago. The unfortunate part is more than 60% of the post-tax salary income, in several cases, is used to pay EMIs on home loans, car loans, consumer durable loans among a host of other loans.
The question raised by the young man as well as the EMI fixation of middle-aged salary earners is setting an alarming trend. Not very long ago, during October 2008 to March 2009, these same middle-aged executives were scared of their future because of the economic downturn and were selling assets to bring down their EMI commitments.
We all learn from history and we also know that history repeats itself. It is nice to be aggressive. There are no arguments against having a decent life with almost all luxuries at a young age. India is proud of its domestic consumption story.
India needs its people to spend. All the same, we should not be carried away by the easy spending consumer culture of the West. One look at the so called “developed economies” will convince us about the virtue of savings “culture” of our country.
In many developed countries “social security” for a senior citizen lies only on paper. The ground reality is that people in the advanced age of 70-75 work in malls at cash registers, airports cleaning the wash rooms, rent-a-car companies, transporting people to and from airports and so on. The Indian middle class may not enjoy a great standard of living but the savings culture definitely ensures that they need not slog at the age of 70 and 80.
Let us stick to our culture — save today; invest regularly and wisely and ensure a safe and comfortable future.
(The expert is Investment Consultant, Trendy Investments
Tuesday, September 21, 2010
LETS WIN THE BATTLE OF COMMENWEALTH GAMES 2010 WITH MOTHER YAMUNA AND INDIAN FORCES
Dear All,
With the incessant rains from past 2 months and yamuna flowing above the danger line first time this way in 100 years, the complete indian economy's reputation based on the performance of how well the commenwealth games 2010 gets accomplished is a task to watch.
what i optimistacally think over the situation is that almost 75% of all indian lands were really requiring this wetness inside the earthsphere of india, our BHARAT. This has actually brought floods and alongwith the havoc for all the people who have their livelihood along the banks of yamuna, but in long term what i see is that the economy is going to prosper as the agricultural land would greatly flourish.
As far as the common wealth games 2010 is concerned , on an immediate basis without thinking much about the JUGAAD concept which off late, indians have started following should be immediately stopped, and all time best tested source of protection , THE INDIAN FORCES- INDIAN ARMY, INDIAN NAVY, AND INDAIN AIR FORCE and THE SPECIAL TASK FORCE should be deployed in huge numbers so that indians can again proudly say afer the games that INDIA can do anything I-M-POSSIBLE.
With the incessant rains from past 2 months and yamuna flowing above the danger line first time this way in 100 years, the complete indian economy's reputation based on the performance of how well the commenwealth games 2010 gets accomplished is a task to watch.
what i optimistacally think over the situation is that almost 75% of all indian lands were really requiring this wetness inside the earthsphere of india, our BHARAT. This has actually brought floods and alongwith the havoc for all the people who have their livelihood along the banks of yamuna, but in long term what i see is that the economy is going to prosper as the agricultural land would greatly flourish.
As far as the common wealth games 2010 is concerned , on an immediate basis without thinking much about the JUGAAD concept which off late, indians have started following should be immediately stopped, and all time best tested source of protection , THE INDIAN FORCES- INDIAN ARMY, INDIAN NAVY, AND INDAIN AIR FORCE and THE SPECIAL TASK FORCE should be deployed in huge numbers so that indians can again proudly say afer the games that INDIA can do anything I-M-POSSIBLE.
Monday, September 20, 2010
Busiest week for IPO market in 15 years; a choice of 11 IPOs
NEW DELHI: This week is slated to be the busiest in the last 15-years for the primary market, with eight companies seeking to raise around Rs 3,000 crore through public offers, in addition to three already underway.
The initial public offers of eight small and medium scale companies, including Cantabil Retail and Ramky Infrastructure, are opening this week. The combined value of these IPOs is Rs 2,853 crore.
Besides, three issue which opened last week are underway to raise Rs 612 crore.
So, in all, people have the choice to invest in as many as 11 companies in a single week, highest since 2007.
"This will be the busiest week in the Indian primary market history after 1995. Even during the red-hot bull market of 2007, no single week featured 11 IPOs," SMC Global Securities Equity Head Jagannadham Thunuguntla said.
He added that the last high was in February 2007, when 10 IPOs had hit the capital market in one week.
Analysts believe that there is enough appetite in the market to absorb these issues.
"There is enough appetite among investors, and large number of IPOs are providing more choices to them. They can choose issue from a variety of options," Enam Securities MD Yogesh Kapur said.
The companies, which are hitting the primary market this week include, Orient Green Power (Rs 900 crore), VA Tech Wabag (Rs 500 crore), Electrosteel (Rs 285 crore), Tecpro Systems (Rs 268 crore), Ashoka Buildcon (Rs 225 crore) and Gallant Ispat (Rs 40.50 crore).
While Ramky Infrastructure and Cantabil Retail will hit the capital market with issue sizes of Rs 530 crore and Rs 105 crore respectively.
Besides, tutorial service provider Career Point, entertainment and media firm Eros International and Microsec Financial Services, which opened last week, will be available for subscription this week.
Recently, public issues of a number of entities including SKS Microfinance, Prakash Steelage Ltd and Gujarat Pipavav Port Ltd got good response from investors and were oversubscribed. Listing of these firms was also impressive.
The follow-on public offer of the state-run Engineers India Ltd also received big investor response.
Corporate India raised over Rs 47,867 crore through 44 public offers during 2009-2010, a period when the stock market benchmark Sensex gave a handsome return of over 80 per cent.
Apart from some big IPOs such as that of JSW Energy and Adani Power, the fiscal also saw divestment of the government's stake in NMDC and NTPC through the follow-on offers.
The initial public offers of eight small and medium scale companies, including Cantabil Retail and Ramky Infrastructure, are opening this week. The combined value of these IPOs is Rs 2,853 crore.
Besides, three issue which opened last week are underway to raise Rs 612 crore.
So, in all, people have the choice to invest in as many as 11 companies in a single week, highest since 2007.
"This will be the busiest week in the Indian primary market history after 1995. Even during the red-hot bull market of 2007, no single week featured 11 IPOs," SMC Global Securities Equity Head Jagannadham Thunuguntla said.
He added that the last high was in February 2007, when 10 IPOs had hit the capital market in one week.
Analysts believe that there is enough appetite in the market to absorb these issues.
"There is enough appetite among investors, and large number of IPOs are providing more choices to them. They can choose issue from a variety of options," Enam Securities MD Yogesh Kapur said.
The companies, which are hitting the primary market this week include, Orient Green Power (Rs 900 crore), VA Tech Wabag (Rs 500 crore), Electrosteel (Rs 285 crore), Tecpro Systems (Rs 268 crore), Ashoka Buildcon (Rs 225 crore) and Gallant Ispat (Rs 40.50 crore).
While Ramky Infrastructure and Cantabil Retail will hit the capital market with issue sizes of Rs 530 crore and Rs 105 crore respectively.
Besides, tutorial service provider Career Point, entertainment and media firm Eros International and Microsec Financial Services, which opened last week, will be available for subscription this week.
Recently, public issues of a number of entities including SKS Microfinance, Prakash Steelage Ltd and Gujarat Pipavav Port Ltd got good response from investors and were oversubscribed. Listing of these firms was also impressive.
The follow-on public offer of the state-run Engineers India Ltd also received big investor response.
Corporate India raised over Rs 47,867 crore through 44 public offers during 2009-2010, a period when the stock market benchmark Sensex gave a handsome return of over 80 per cent.
Apart from some big IPOs such as that of JSW Energy and Adani Power, the fiscal also saw divestment of the government's stake in NMDC and NTPC through the follow-on offers.
Look for winners in company FDs
Prashant Mahesh, ET Bureau
Talk about interest rates going up has picked up pace after the Reserve Bank of India (RBI) raised key policy rates last week. For most of us, it is almost a non-event — unless you have a floating rate housing loan — as a quarter percentage increase in fixed deposits (FDs) does not make many people rush to the dance floor.
However, there is another large group, which keenly follows the trends in interest rates — people whose idea about investing and savings end with bank FDs and company FDs. Due to spiralling living expenses, this class of investors has started taking a hard look at company deposits lately, say financial advisors. Company FDs have seen a renewed interest and higher flows from investors in the past one month, they say
Talk about interest rates going up has picked up pace after the Reserve Bank of India (RBI) raised key policy rates last week. For most of us, it is almost a non-event — unless you have a floating rate housing loan — as a quarter percentage increase in fixed deposits (FDs) does not make many people rush to the dance floor.
However, there is another large group, which keenly follows the trends in interest rates — people whose idea about investing and savings end with bank FDs and company FDs. Due to spiralling living expenses, this class of investors has started taking a hard look at company deposits lately, say financial advisors. Company FDs have seen a renewed interest and higher flows from investors in the past one month, they say
Saturday, September 18, 2010
LADY WHO WROTE A LETTER TO JRD TATA
THE GIRL WRITING AS HERSELF....
It was probably the April of 1974. Bangalore was getting warm and gulmohars were blooming at the IISc campus. I was the only girl in my postgraduate department and was staying at the ladies' hostel. Other girls were pursuing research in different departments of Science. I was looking forward to going abroad to complete a doctorate in computer science. I had been offered scholarships from Universities in the US... I had not thought of taking up a job in India.
One day, while on the way to my hostel from our lecture-hall complex, I saw an advertisement on the notice board. It was a standard job-requirement notice from the famous automobile company Telco (now Tata Motors)... It stated that the company required young, bright engineers, hardworking and with an excellent academic background, etc.
At the bottom was a small line: 'Lady Candidates need not apply.' I read it and was very upset. For the first time in my life I was up against gender discrimination.
Though I was not keen on taking up the job, I saw it as a challenge. I had done extremely well in academics, better than most of my male peers... Little did I know then that in real life academic excellence is not enough to be successful?
After reading the notice I went fuming to my room. I decided to inform the topmost person in Telco's management about the injustice the company was perpetrating. I got a postcard and started to write, but there was a problem: I did not know who headed Telco
I thought it must be one of the Tatas. I knew JRD Tata was the head of the Tata Group; I had seen his pictures in newspapers (actually, Sumant Moolgaokar was the company's chairman then) I took the card, addressed it to JRD and started writing. To this day I remember clearly what I wrote. 'The great Tatas have always been pioneers. They are the people who started the basic infrastructure industries in India, such as iron and steel, chemicals, textiles and locomotives they have cared for higher education in India since 1900 and they were responsible for the establishment of the Indian Institute of Science. Fortunately, I study there. But I am surprised how a company such as Telco is discriminating on the basis of gender.'
I posted the letter and forgot about it. Less than 10 days later, I received a telegram stating that I had to appear for an interview at Telco's Pune facility at the company's expense. I was taken aback by the telegram. My hostel mate told me I should use the opportunity to go to Pune free of cost and buy them the famous Pune saris for cheap! I collected Rs30 each from everyone who wanted a sari when I look back, I feel like laughing at the reasons for my going, but back then they seemed good enough to make the trip.
It was my first visit to Pune and I immediately fell in love with the city.
To this day it remains dear to me. I feel as much at home in Pune as I do in Hubli, my hometown. The place changed my life in so many ways. As directed, I went to Telco's Pimpri office for the interview.
There were six people on the panel and I realized then that this was serious business.
'This is the girl who wrote to JRD,' I heard somebody whisper as soon as I entered the room. By then I knew for sure that I would not get the job. The realization abolished all fear from my mind, so I was rather cool while the interview was being conducted.
Even before the interview started, I reckoned the panel was biased, so I told them, rather impolitely, 'I hope this is only a technical interview.'
They were taken aback by my rudeness, and even today I am ashamed about my attitude. The panel asked me technical questions and I answered all of them.
Then an elderly gentleman with an affectionate voice told me, 'Do you know why we said lady candidates need not apply? The reason is that we have never employed any ladies on the shop floor. This is not a co-ed college; this is a factory. When it comes to academics, you are a first ranker throughout. We appreciate that, but people like you should work in research laboratories.
I was a young girl from small-town Hubli. My world had been a limited place.
I did not know the ways of large corporate houses and their difficulties, so I answered, 'But you must start somewhere, otherwise no woman will ever be able to work in your factories.'
Finally, after a long interview, I was told I had been successful. So this was what the future had in store for me. Never had I thought I would take up a job in Pune. I met a shy young man from Karnataka there, we became good friends and we got married.
It was only after joining Telco that I realized who JRD was: the uncrowned king of Indian industry. Now I was scared, but I did not get to meet him till I was transferred to Bombay. One day I had to show some reports to Mr Moolgaokar, our chairman, who we all knew as SM. I was in his office on the first floor of Bombay House (the Tata headquarters) when, suddenly JRD walked in. That was the first time I saw 'appro JRD'. Appro means 'our' in Gujarati. This was the affectionate term by which people at Bombay House called him. I was feeling very nervous, remembering my postcard episode. SM introduced me nicely, 'Jeh (that's what his close associates called him), this young woman is an engineer and that too a postgraduate. 'Always start with confidence. When you are successful you must give back to society. Society gives us so much; we must reciprocate. Wish you all the best.' (Sudha Murthy is a widely published writer and chairperson of the Infosys Foundation involved in a number of social development initiatives. Infosys chairman Narayana Murthy is her husband.)
She is the first woman to work on the Telco shop floor.' JRD looked at me. I was praying he would not ask me any questions about my interview (or the postcard that preceded it).
Thankfully, he didn't. Instead, he remarked. 'It is nice that girls are getting into engineering in our country. By the way, what is your name?'
'When I joined Telco I was Sudha Kulkarni, Sir,' I replied. 'Now I am Sudha Murthy.' He smiled and kindly smile and started a discussion with SM. As for me, I almost ran out of the room.
After that I used to see JRD on and off. He was the Tata Group chairman and I was merely an engineer. There was nothing that we had in common. I was in awe of him.
One day I was waiting for Murthy, my husband, to pick me up after office hours. To my surprise I saw JRD standing next to me. I did not know how to react. Yet again I started worrying about that postcard. Looking back, I realize JRD had forgotten about it. It must have been a small incident for him, but not so for me.
'Young lady, why are you here?' he asked. 'Office time is over.' I said, 'Sir, I'm waiting for my husband to come and pick me up.' JRD said, 'It is getting dark and there's no one in the corridor.
I'll wait with you till your husband comes.'
I was quite used to waiting for Murthy, but having JRD waiting alongside made me extremely uncomfortable.
I was nervous. Out of the corner of my eye I looked at him. He wore a simple white pant and shirt. He was old, yet his face was glowing. There wasn't any air of superiority about him. I was thinking, 'Look at this person. He is a chairman, a well-respected man in our country and he is waiting for the sake of an ordinary employee.'
Then I saw Murthy and I rushed out. JRD called and said, 'Young lady, tell your husband never to make his wife wait again.' In 1982 I had to resign from my job at Telco. I was reluctant to go, but I really did not have a choice. I was coming down the steps of Bombay House after wrapping up my final settlement when I saw JRD coming up. He was absorbed in thought. I wanted to say goodbye to him, so I stopped. He saw me and paused.
Gently, he said, 'So what are you doing, Mrs. Kulkarni?' (That was the way he always addressed me.) 'Sir, I am leaving Telco.'
'Where are you going?' he asked. 'Pune, Sir. My husband is starting a company called Infosys and I'm shifting to Pune.'
'Oh! And what will you do when you are successful.'
'Sir, I don't know whether we will be successful.' 'Never start with diffidence,' he advised me
Then JRD continued walking up the stairs. I stood there for what seemed like a millennium. That was the last time I saw him alive.
Many years later I met Ratan Tata in the same Bombay House, occupying the chair JRD once did. I told him of my many sweet memories of working with Telco. Later, he wrote to me, 'It was nice hearing about Jeh from you. The sad part is that he's not alive to see you today.'
I consider JRD a great man because, despite being an extremely busy person, he valued one postcard written by a young girl seeking justice. He must have received thousands of letters everyday. He could have thrown mine away, but he didn't do that. He respected the intentions of that unknown girl, who had neither influence nor money, and gave her an opportunity in his company. He did not merely give her a job; he changed her life and mindset forever.
Close to 50 per cent of the students in today's engineering colleges are girls. And there are women on the shop floor in many industry segments. I see these changes and I think of JRD. If at all time stops and asks me what I want from life, I would say I wish JRD were alive today to see how the company we started has grown. He would have enjoyed it wholeheartedly.
My love and respect for the House of Tata remains undiminished by the passage of time. I always looked up to JRD. I saw him as a role model for his simplicity, his generosity, his kindness and the care he took of his employees. Those blue eyes always reminded me of the sky; they had the same vastness and magnificence.
Article sourced from: Lasting Legacies (Tata Review- Special Commemorative Issue 2004), brought out by the house of Tatas to commemorate the 100th birth anniversary of JRD Tata on July 29, 2004 .
Sudha Murthy and Narayana Murthy
It was probably the April of 1974. Bangalore was getting warm and gulmohars were blooming at the IISc campus. I was the only girl in my postgraduate department and was staying at the ladies' hostel. Other girls were pursuing research in different departments of Science. I was looking forward to going abroad to complete a doctorate in computer science. I had been offered scholarships from Universities in the US... I had not thought of taking up a job in India.
One day, while on the way to my hostel from our lecture-hall complex, I saw an advertisement on the notice board. It was a standard job-requirement notice from the famous automobile company Telco (now Tata Motors)... It stated that the company required young, bright engineers, hardworking and with an excellent academic background, etc.
At the bottom was a small line: 'Lady Candidates need not apply.' I read it and was very upset. For the first time in my life I was up against gender discrimination.
Though I was not keen on taking up the job, I saw it as a challenge. I had done extremely well in academics, better than most of my male peers... Little did I know then that in real life academic excellence is not enough to be successful?
After reading the notice I went fuming to my room. I decided to inform the topmost person in Telco's management about the injustice the company was perpetrating. I got a postcard and started to write, but there was a problem: I did not know who headed Telco
I thought it must be one of the Tatas. I knew JRD Tata was the head of the Tata Group; I had seen his pictures in newspapers (actually, Sumant Moolgaokar was the company's chairman then) I took the card, addressed it to JRD and started writing. To this day I remember clearly what I wrote. 'The great Tatas have always been pioneers. They are the people who started the basic infrastructure industries in India, such as iron and steel, chemicals, textiles and locomotives they have cared for higher education in India since 1900 and they were responsible for the establishment of the Indian Institute of Science. Fortunately, I study there. But I am surprised how a company such as Telco is discriminating on the basis of gender.'
I posted the letter and forgot about it. Less than 10 days later, I received a telegram stating that I had to appear for an interview at Telco's Pune facility at the company's expense. I was taken aback by the telegram. My hostel mate told me I should use the opportunity to go to Pune free of cost and buy them the famous Pune saris for cheap! I collected Rs30 each from everyone who wanted a sari when I look back, I feel like laughing at the reasons for my going, but back then they seemed good enough to make the trip.
It was my first visit to Pune and I immediately fell in love with the city.
To this day it remains dear to me. I feel as much at home in Pune as I do in Hubli, my hometown. The place changed my life in so many ways. As directed, I went to Telco's Pimpri office for the interview.
There were six people on the panel and I realized then that this was serious business.
'This is the girl who wrote to JRD,' I heard somebody whisper as soon as I entered the room. By then I knew for sure that I would not get the job. The realization abolished all fear from my mind, so I was rather cool while the interview was being conducted.
Even before the interview started, I reckoned the panel was biased, so I told them, rather impolitely, 'I hope this is only a technical interview.'
They were taken aback by my rudeness, and even today I am ashamed about my attitude. The panel asked me technical questions and I answered all of them.
Then an elderly gentleman with an affectionate voice told me, 'Do you know why we said lady candidates need not apply? The reason is that we have never employed any ladies on the shop floor. This is not a co-ed college; this is a factory. When it comes to academics, you are a first ranker throughout. We appreciate that, but people like you should work in research laboratories.
I was a young girl from small-town Hubli. My world had been a limited place.
I did not know the ways of large corporate houses and their difficulties, so I answered, 'But you must start somewhere, otherwise no woman will ever be able to work in your factories.'
Finally, after a long interview, I was told I had been successful. So this was what the future had in store for me. Never had I thought I would take up a job in Pune. I met a shy young man from Karnataka there, we became good friends and we got married.
It was only after joining Telco that I realized who JRD was: the uncrowned king of Indian industry. Now I was scared, but I did not get to meet him till I was transferred to Bombay. One day I had to show some reports to Mr Moolgaokar, our chairman, who we all knew as SM. I was in his office on the first floor of Bombay House (the Tata headquarters) when, suddenly JRD walked in. That was the first time I saw 'appro JRD'. Appro means 'our' in Gujarati. This was the affectionate term by which people at Bombay House called him. I was feeling very nervous, remembering my postcard episode. SM introduced me nicely, 'Jeh (that's what his close associates called him), this young woman is an engineer and that too a postgraduate. 'Always start with confidence. When you are successful you must give back to society. Society gives us so much; we must reciprocate. Wish you all the best.' (Sudha Murthy is a widely published writer and chairperson of the Infosys Foundation involved in a number of social development initiatives. Infosys chairman Narayana Murthy is her husband.)
She is the first woman to work on the Telco shop floor.' JRD looked at me. I was praying he would not ask me any questions about my interview (or the postcard that preceded it).
Thankfully, he didn't. Instead, he remarked. 'It is nice that girls are getting into engineering in our country. By the way, what is your name?'
'When I joined Telco I was Sudha Kulkarni, Sir,' I replied. 'Now I am Sudha Murthy.' He smiled and kindly smile and started a discussion with SM. As for me, I almost ran out of the room.
After that I used to see JRD on and off. He was the Tata Group chairman and I was merely an engineer. There was nothing that we had in common. I was in awe of him.
One day I was waiting for Murthy, my husband, to pick me up after office hours. To my surprise I saw JRD standing next to me. I did not know how to react. Yet again I started worrying about that postcard. Looking back, I realize JRD had forgotten about it. It must have been a small incident for him, but not so for me.
'Young lady, why are you here?' he asked. 'Office time is over.' I said, 'Sir, I'm waiting for my husband to come and pick me up.' JRD said, 'It is getting dark and there's no one in the corridor.
I'll wait with you till your husband comes.'
I was quite used to waiting for Murthy, but having JRD waiting alongside made me extremely uncomfortable.
I was nervous. Out of the corner of my eye I looked at him. He wore a simple white pant and shirt. He was old, yet his face was glowing. There wasn't any air of superiority about him. I was thinking, 'Look at this person. He is a chairman, a well-respected man in our country and he is waiting for the sake of an ordinary employee.'
Then I saw Murthy and I rushed out. JRD called and said, 'Young lady, tell your husband never to make his wife wait again.' In 1982 I had to resign from my job at Telco. I was reluctant to go, but I really did not have a choice. I was coming down the steps of Bombay House after wrapping up my final settlement when I saw JRD coming up. He was absorbed in thought. I wanted to say goodbye to him, so I stopped. He saw me and paused.
Gently, he said, 'So what are you doing, Mrs. Kulkarni?' (That was the way he always addressed me.) 'Sir, I am leaving Telco.'
'Where are you going?' he asked. 'Pune, Sir. My husband is starting a company called Infosys and I'm shifting to Pune.'
'Oh! And what will you do when you are successful.'
'Sir, I don't know whether we will be successful.' 'Never start with diffidence,' he advised me
Then JRD continued walking up the stairs. I stood there for what seemed like a millennium. That was the last time I saw him alive.
Many years later I met Ratan Tata in the same Bombay House, occupying the chair JRD once did. I told him of my many sweet memories of working with Telco. Later, he wrote to me, 'It was nice hearing about Jeh from you. The sad part is that he's not alive to see you today.'
I consider JRD a great man because, despite being an extremely busy person, he valued one postcard written by a young girl seeking justice. He must have received thousands of letters everyday. He could have thrown mine away, but he didn't do that. He respected the intentions of that unknown girl, who had neither influence nor money, and gave her an opportunity in his company. He did not merely give her a job; he changed her life and mindset forever.
Close to 50 per cent of the students in today's engineering colleges are girls. And there are women on the shop floor in many industry segments. I see these changes and I think of JRD. If at all time stops and asks me what I want from life, I would say I wish JRD were alive today to see how the company we started has grown. He would have enjoyed it wholeheartedly.
My love and respect for the House of Tata remains undiminished by the passage of time. I always looked up to JRD. I saw him as a role model for his simplicity, his generosity, his kindness and the care he took of his employees. Those blue eyes always reminded me of the sky; they had the same vastness and magnificence.
Article sourced from: Lasting Legacies (Tata Review- Special Commemorative Issue 2004), brought out by the house of Tatas to commemorate the 100th birth anniversary of JRD Tata on July 29, 2004 .
Sudha Murthy and Narayana Murthy
Thursday, September 16, 2010
Indian School of Business (ISB) wins AIMA’s 7th 'National Competition for Management Students’
The National Competition for Management Students (NCMS) has been successful to establish its brand equity since 2003 and is an eagerly awaited management competition of the country. This year the competition attracted a record participation from prestigious B-schools across India. NCMS is unique with respect to its highly interactive, creative and innovative format each year and is a platform where students of management sciences could showcase their intellect, at the same time being watched by industry leaders across India.
Mukta and Megha from Indian School of business school emerged victorious at the grand finale, which was held between eight teams selected through four regional finals held earlier. In the grueling stage, the pair with their prompt responses, extra-ordinary presentation and out of the box thinking rose above their competitors to emerge as champions.
The Chief Guest for the afternoon, Dr. A. K. Balyan, CEO & MD, Petronet LNG Ltd. and Amandeep Gupta, executive director, Dalmia Cement (Bharat), Ltd. felicitated the winners. The 1st runners-up team of the Grand Finale was of Anand Moroney & Sameer Karkhanis from IIM Calcutta and the second runners-up team was of Sabitha and Gayattri from University of Madras.
The award for Budding Manager was shared by Jhanvi Vyas from Amity Business School and Megha from ISB.
RBI's Annual Monetary Policy for 2010-11 Combating inflation once again
The Reserve Bank of India (RBI) today announced its annual monetary policy for 2010-11. The move taken by the central bank is aimed at controlling the spiralling inflation without choking growth.
Inflation, as measured by the Wholesale Price Index (WPI), which earlier moderated in the first half of 2009-10, firmed up in the second half of the year. It accelerated from 1.50% in October 2009 to 9.90% by March 2010.
http://www.reuters.com/
The deficient south-west monsoon rainfall have also accentuated the pressure on food prices, thus taking food inflation to a 16 month high of 17.70% for the week ended March 27, 2010.
According to the RBI, three major uncertainties cloud the outlook for inflation:
First - The prospects of the monsoon in 2010-11 are not yet clear.
Second - The continuous volatility in crude prices.
Third - Evidence of demand side pressures building up.
Hence, keeping in view the domestic demand-supply balance and the global trend in commodity prices, the baseline projection for WPI inflation for March 2011 is placed at 5.50%
In order to combat the spiraling inflation, RBI has taken the following measures:
Increased the Cash Reserve Ratio (CRR) by 25 basis points from 5.75% to 6.00% with effect from April 24, 2010.
•Repo rate has been increased from 5.00% to 5.25%: The repo rate is the interest charged by the central bank on borrowings by the commercial banks. A hike in the same means increased cost of borrowings for commercial banks.
•Reverse Repo rate has been increased from 3.50% to 3.75%: The reverse repo rate is the rate at which the commercial banks park their funds with the central bank. An increase in the same makes it more attractive for commercial banks to park funds with the central bank.
The other highlights of the monetary policy are as follows:
•Bank rate left unchanged at 6.00%.
•Statutory Liquidity Ratio (SLR) has been left unchanged at 25.00%: SLR is that amount which a bank has to maintain in the form of cash, gold or approved securities. The quantum is specified in terms of percentage of the total demand and time liabilities of a bank.
The RBI believes that the stance taken in the monetary policy is intended to:
•Anchor inflation expectations, while being prepared to respond appropriately, swiftly and effectively to further build-up of inflationary pressures.
•Actively manage liquidity to ensure that the growth in demand for credit by both the private and public sectors is satisfied in a non-disruptive way.
•Maintain an interest rate regime consistent with price, output and financial stability.
GDP estimate: The RBI has projected the overall GDP growth rate for 2010-11 at 8.00%. This is after factoring in the assumption of a normal monsoon and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
What should Debt fund investors do?
Debt funds are not the ideal investments in a rising interest rate scenario. This is because the bond price and interest rates are inversely related to each other. In the current scenario, we recommend that investors stay away from pure income and government securities funds till June 2010. However, any mid policy rate hikes will be opportune time for investors to start looking at shorter duration income funds. The first quarter review of monetary policy 2010-11 is scheduled on July 27, 2010.
Investors with a short-term time horizon would be better off by investing in liquid and liquid plus funds for the next 2-3 months; while the medium term investors with an investment horizon of over 6 months can allocate their investments to floating rate funds.
Investors should refrain from investing immediately in fixed deposits till a further increase in deposit rates is offered by banks. One year bank FDs would be attractive only above 7.50%. One year FDs are currently available at 5.00% to 6.50%.
What should equity investors do?
We do not see a rise in interest rates as a source of risk, as it will only moderate growth and not derail it. Moderating the growth is good for the long term growth of the economy.
We believe that these are opportune times for investors to buy fundamentally sound stocks and/or mutual funds and stay invested for long-term.
Investors should continue to invest in diversified equity funds, preferably in a phased manner through SIP, in order to benefit from the volatility witnessed in the equity markets.
source: personalfn.com
Inflation, as measured by the Wholesale Price Index (WPI), which earlier moderated in the first half of 2009-10, firmed up in the second half of the year. It accelerated from 1.50% in October 2009 to 9.90% by March 2010.
http://www.reuters.com/
The deficient south-west monsoon rainfall have also accentuated the pressure on food prices, thus taking food inflation to a 16 month high of 17.70% for the week ended March 27, 2010.
According to the RBI, three major uncertainties cloud the outlook for inflation:
First - The prospects of the monsoon in 2010-11 are not yet clear.
Second - The continuous volatility in crude prices.
Third - Evidence of demand side pressures building up.
Hence, keeping in view the domestic demand-supply balance and the global trend in commodity prices, the baseline projection for WPI inflation for March 2011 is placed at 5.50%
In order to combat the spiraling inflation, RBI has taken the following measures:
Increased the Cash Reserve Ratio (CRR) by 25 basis points from 5.75% to 6.00% with effect from April 24, 2010.
•Repo rate has been increased from 5.00% to 5.25%: The repo rate is the interest charged by the central bank on borrowings by the commercial banks. A hike in the same means increased cost of borrowings for commercial banks.
•Reverse Repo rate has been increased from 3.50% to 3.75%: The reverse repo rate is the rate at which the commercial banks park their funds with the central bank. An increase in the same makes it more attractive for commercial banks to park funds with the central bank.
The other highlights of the monetary policy are as follows:
•Bank rate left unchanged at 6.00%.
•Statutory Liquidity Ratio (SLR) has been left unchanged at 25.00%: SLR is that amount which a bank has to maintain in the form of cash, gold or approved securities. The quantum is specified in terms of percentage of the total demand and time liabilities of a bank.
The RBI believes that the stance taken in the monetary policy is intended to:
•Anchor inflation expectations, while being prepared to respond appropriately, swiftly and effectively to further build-up of inflationary pressures.
•Actively manage liquidity to ensure that the growth in demand for credit by both the private and public sectors is satisfied in a non-disruptive way.
•Maintain an interest rate regime consistent with price, output and financial stability.
GDP estimate: The RBI has projected the overall GDP growth rate for 2010-11 at 8.00%. This is after factoring in the assumption of a normal monsoon and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
What should Debt fund investors do?
Debt funds are not the ideal investments in a rising interest rate scenario. This is because the bond price and interest rates are inversely related to each other. In the current scenario, we recommend that investors stay away from pure income and government securities funds till June 2010. However, any mid policy rate hikes will be opportune time for investors to start looking at shorter duration income funds. The first quarter review of monetary policy 2010-11 is scheduled on July 27, 2010.
Investors with a short-term time horizon would be better off by investing in liquid and liquid plus funds for the next 2-3 months; while the medium term investors with an investment horizon of over 6 months can allocate their investments to floating rate funds.
Investors should refrain from investing immediately in fixed deposits till a further increase in deposit rates is offered by banks. One year bank FDs would be attractive only above 7.50%. One year FDs are currently available at 5.00% to 6.50%.
What should equity investors do?
We do not see a rise in interest rates as a source of risk, as it will only moderate growth and not derail it. Moderating the growth is good for the long term growth of the economy.
We believe that these are opportune times for investors to buy fundamentally sound stocks and/or mutual funds and stay invested for long-term.
Investors should continue to invest in diversified equity funds, preferably in a phased manner through SIP, in order to benefit from the volatility witnessed in the equity markets.
source: personalfn.com
Wednesday, September 15, 2010
Get ready for competition from India: Barack Obama
Get ready for competition from India: Obama
'Nobody gets to write your destiny but you. Your future is in your hands,' the US President has counselled American children
Arun Kumar
Wednesday, September 15, 2010
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WASHINGTON, USA: US President Barack Obama has counselled American children to aim high as the country's success in the 21st century depends on them in the face of increasing competition from "Bangalore, India" and "Beijing, China" where students are "working harder than ever".
"You've got an obligation to yourselves, and America has an obligation to you to make sure you're getting the best education possible," he said Tuesday in a back-to-school address at a Pennsylvania magnet school.
"At a time when other countries are competing with us like never before, when students around the world in Beijing, China, or Bangalore, India, are working harder than ever, and doing better than ever, your success in school is not just going to determine your success, it's going to determine America's success in the 21st century," Obama said.
"And making sure you get that kind of education is going to take all of us working hand-in-hand," the president told pupils at the Masterman Laboratory and Demonstration School, which covers grades 5 through 12.
"Nobody gets to write your destiny but you. Your future is in your hands," he added.
"Your life is what you make of it. And nothing - absolutely nothing - is beyond your reach. So long as you're willing to dream big. So long as you're willing to work hard. So long as you're willing to stay focused on your education."
"You've got to instil a sense of excellence in everything that you do. That kind of discipline, that kind of drive, that kind of hard work, is absolutely essential for success," he said citing his own example.
"I wasn't always disciplined. I wasn't always the best student when I was younger. I made my share of mistakes. I still remember a conversation I had with my mother in high school. I was kind of a goof-off," Obama said.
But eventually his mother's "words had the intended effect, because I got serious about my studies. And I started to make an effort in everything that I did. And I began to see my grades and my prospects improve".
"And I know that if hard work could make the difference for me, then it can make a difference for all of you," Obama said
'Nobody gets to write your destiny but you. Your future is in your hands,' the US President has counselled American children
Arun Kumar
Wednesday, September 15, 2010
Email Print Comments RSS
WASHINGTON, USA: US President Barack Obama has counselled American children to aim high as the country's success in the 21st century depends on them in the face of increasing competition from "Bangalore, India" and "Beijing, China" where students are "working harder than ever".
"You've got an obligation to yourselves, and America has an obligation to you to make sure you're getting the best education possible," he said Tuesday in a back-to-school address at a Pennsylvania magnet school.
"At a time when other countries are competing with us like never before, when students around the world in Beijing, China, or Bangalore, India, are working harder than ever, and doing better than ever, your success in school is not just going to determine your success, it's going to determine America's success in the 21st century," Obama said.
"And making sure you get that kind of education is going to take all of us working hand-in-hand," the president told pupils at the Masterman Laboratory and Demonstration School, which covers grades 5 through 12.
"Nobody gets to write your destiny but you. Your future is in your hands," he added.
"Your life is what you make of it. And nothing - absolutely nothing - is beyond your reach. So long as you're willing to dream big. So long as you're willing to work hard. So long as you're willing to stay focused on your education."
"You've got to instil a sense of excellence in everything that you do. That kind of discipline, that kind of drive, that kind of hard work, is absolutely essential for success," he said citing his own example.
"I wasn't always disciplined. I wasn't always the best student when I was younger. I made my share of mistakes. I still remember a conversation I had with my mother in high school. I was kind of a goof-off," Obama said.
But eventually his mother's "words had the intended effect, because I got serious about my studies. And I started to make an effort in everything that I did. And I began to see my grades and my prospects improve".
"And I know that if hard work could make the difference for me, then it can make a difference for all of you," Obama said
Tuesday, September 14, 2010
NOW IAM AN APPROVED AND AUTHORIZED BLOGGER ON INSURANCE-LEADS-ADVISOR.COM
http://www.insurance-leads-advisor.com/optimize-your-clients.html
Hi AJIT PANICKER,
I've just reviewed your contribution and approved it. It's now a Web page on my site. I'm sure visitors are going to love it as it really adds to the site.
It will be fun to watch the comments it gets. Let your friends and family know they can rate and give feedback about your contribution.
You can see it now at this link...
http://www.insurance-leads-advisor.com/optimize-your-clients.html
Thanks very much for sharing. Please drop by my site again and offer other thoughts or opinions. The more, the merrier!
Best regards,
Insurance-Leads-Adviosr.com
Brian Maroevich
P.S. By the way, this is your first Site Build It! page. I used it to build insurance-leads-advisor.com
I could not imagine building a successful Web site any other way.
Hi AJIT PANICKER,
I've just reviewed your contribution and approved it. It's now a Web page on my site. I'm sure visitors are going to love it as it really adds to the site.
It will be fun to watch the comments it gets. Let your friends and family know they can rate and give feedback about your contribution.
You can see it now at this link...
http://www.insurance-leads-advisor.com/optimize-your-clients.html
Thanks very much for sharing. Please drop by my site again and offer other thoughts or opinions. The more, the merrier!
Best regards,
Insurance-Leads-Adviosr.com
Brian Maroevich
P.S. By the way, this is your first Site Build It! page. I used it to build insurance-leads-advisor.com
I could not imagine building a successful Web site any other way.
7th NATIONAL COMPETITION FOR MANAGEMENT STUDENTS NCMS- 2010
To, Mr. Kamal Singh,
The NCMS Competition organized by AIMA, this year was really enthralling and eye soothing, the 8 teams selected by your panelists really deserved to be there, hence the BEST were competing, the speeches by the chief guest of honour, and other important guests and delegates had delivered some real good LEARNING experiences, as well as how to go about managing the challenges in the real corporate world.
For me as a Management consultant, it was a good experience, discussing and putting across the questions to the B- schools students participating in the contest.
I would look forward to all such kind of conferences and summits being organized by AIMA, because iam a regular attendee to all major international and national conventions , conferences and summits , the most recent being the 7TH INTERNATIONAL TAX CONFERENCE, at Hotel Taj mahal, on 13th sep 2010, in which the official guests were Sunil mitra(Secretary , Department of revenue) and Dr. Kaushik Basu( Chief Economic Advisor).
Met many of the Life members of AIMA during this competition do let me know all the affiliations with AIMA, i can be a good source of enriching the reach of AIMA, because my company's business operate in DELHI METROPOLITAN( inclusive of NCR), MUMBAI metropilitan, Bangalore, Hyderabad, Chennai, Cochin, Jaipur, Pune, Nagpur, Chandigarh, Lucknow, Ahmedabad, Kolkatta, Indore and Bhopal.
Sorry , that i was not able to meet you, but would meet you soon, as i had some urgent meeting lined up in chandigarh yesterday evening and i had to rush to catch my flight.( for easy catch- i was the man with long moustaches and asking many questions, though i had 2 questions lined up for each team, but because of paucity of time and because others were equally participating in the discussion)
Thanks & Regards
Ajit Panicker
Chief Financial Planner
CELEB FINANCIAL PLANNERS Global
+919811536424
ajitkpanicker@cfpglobal.com
www.cfpglobal.com
The NCMS Competition organized by AIMA, this year was really enthralling and eye soothing, the 8 teams selected by your panelists really deserved to be there, hence the BEST were competing, the speeches by the chief guest of honour, and other important guests and delegates had delivered some real good LEARNING experiences, as well as how to go about managing the challenges in the real corporate world.
For me as a Management consultant, it was a good experience, discussing and putting across the questions to the B- schools students participating in the contest.
I would look forward to all such kind of conferences and summits being organized by AIMA, because iam a regular attendee to all major international and national conventions , conferences and summits , the most recent being the 7TH INTERNATIONAL TAX CONFERENCE, at Hotel Taj mahal, on 13th sep 2010, in which the official guests were Sunil mitra(Secretary , Department of revenue) and Dr. Kaushik Basu( Chief Economic Advisor).
Met many of the Life members of AIMA during this competition do let me know all the affiliations with AIMA, i can be a good source of enriching the reach of AIMA, because my company's business operate in DELHI METROPOLITAN( inclusive of NCR), MUMBAI metropilitan, Bangalore, Hyderabad, Chennai, Cochin, Jaipur, Pune, Nagpur, Chandigarh, Lucknow, Ahmedabad, Kolkatta, Indore and Bhopal.
Sorry , that i was not able to meet you, but would meet you soon, as i had some urgent meeting lined up in chandigarh yesterday evening and i had to rush to catch my flight.( for easy catch- i was the man with long moustaches and asking many questions, though i had 2 questions lined up for each team, but because of paucity of time and because others were equally participating in the discussion)
Thanks & Regards
Ajit Panicker
Chief Financial Planner
CELEB FINANCIAL PLANNERS Global
+919811536424
ajitkpanicker@cfpglobal.com
www.cfpglobal.com
Monday, September 13, 2010
What are MIPs and how are they different from FDs?
Monthly Income Plans, or MIPs, are hybrid instruments that invest a small part of their portfolio (around 5-25 %) in equities and the remaining (75-95%) in debt and money market instruments. Their portfolio is essentially biased towards debt, but a small exposure to equity is added as a kicker. MIPs aim to give a monthly income to investors. The investor can decide the periodicity at which he wants dividends, which could be monthly, quarterly, half-yearly or annually. In addition to this, a growth option is also available, where gains come in the form of capital appreciation.
MIP returns are market-driven. That means, the fund manager is under no obligation to declare a monthly dividend, though most fund houses try their level best to declare dividends regularly. This is the main difference between MIPs and fixed deposits (FDs) that offer assured interests. However, compared with FDs, MIPs are tax-efficient as dividends declared under MIPs are tax-free.
Typically, retired people or those nearing retirement (in their late 50s) can opt for MIPs as they can generate an adequate income flow that can help them meet their monthly expenses. However, investors should remember that dividends are not guaranteed. If the stock market runs into rough weather, the fund manager may not declare dividends for that period. This is a risk the investor should be able to factor in. In short, MIPs can only be an additional source of income to the regular income form pension, annuity and so on.
Apart from retirees, novices to the market who wish to take a small exposure to equity can also consider investing in equity. The modest equity exposure will generate extra income, while the debt portion will preserve the capital. They can also pocket extra returns, thanks to the stocks in the portfolio. However, always remember that equity is a risky investment option, despite the fund manager’s best effort it could underperform in certain periods due to bad market conditions.
MIP returns are market-driven. That means, the fund manager is under no obligation to declare a monthly dividend, though most fund houses try their level best to declare dividends regularly. This is the main difference between MIPs and fixed deposits (FDs) that offer assured interests. However, compared with FDs, MIPs are tax-efficient as dividends declared under MIPs are tax-free.
Typically, retired people or those nearing retirement (in their late 50s) can opt for MIPs as they can generate an adequate income flow that can help them meet their monthly expenses. However, investors should remember that dividends are not guaranteed. If the stock market runs into rough weather, the fund manager may not declare dividends for that period. This is a risk the investor should be able to factor in. In short, MIPs can only be an additional source of income to the regular income form pension, annuity and so on.
Apart from retirees, novices to the market who wish to take a small exposure to equity can also consider investing in equity. The modest equity exposure will generate extra income, while the debt portion will preserve the capital. They can also pocket extra returns, thanks to the stocks in the portfolio. However, always remember that equity is a risky investment option, despite the fund manager’s best effort it could underperform in certain periods due to bad market conditions.
Sunday, September 12, 2010
New Eight Services Added under Service Tax
Finance Bill 2010 has introduced eight new services to charge service tax. These 8 New services Added in Service Tax Net ( Tax will come in force from the date to be Notified). The following are the list of services introduced in Finance Bill 2010. You can see the highlights of Budget 2010 related to direct and indirect taxes. This article is only the part of the service tax highlights in budget 2010 for the time saving of the readers.
Services of promoting, marketing or organizing of games of chance, including lottery.
Health services, namely:(a) Health check up undertaken by hospitals or medical establishments for the employees of business entities; and (b) Health services provided under health insurance schemes offered by insurance companies.
Services provided for maintenance of medical records of employees of a business entity.
Services of promoting of a ‘brand’ of goods, services, events, business entity etc.
Services of permitting commercial use or exploitation of any event organized by a person or organization.
Services provided by Electricity Exchanges.
Services related to two types of copyrights hitherto not covered under existing taxable service ‘Intellectual Property Right (IPR)’, namely, those on (a) cinematographic films; and (b) sound recording.
Special services provided by a builder etc. to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges. w.e.f. a notified date after enactment of Finance Bill, 2010
Services of promoting, marketing or organizing of games of chance, including lottery.
Health services, namely:(a) Health check up undertaken by hospitals or medical establishments for the employees of business entities; and (b) Health services provided under health insurance schemes offered by insurance companies.
Services provided for maintenance of medical records of employees of a business entity.
Services of promoting of a ‘brand’ of goods, services, events, business entity etc.
Services of permitting commercial use or exploitation of any event organized by a person or organization.
Services provided by Electricity Exchanges.
Services related to two types of copyrights hitherto not covered under existing taxable service ‘Intellectual Property Right (IPR)’, namely, those on (a) cinematographic films; and (b) sound recording.
Special services provided by a builder etc. to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges. w.e.f. a notified date after enactment of Finance Bill, 2010
Saturday, September 11, 2010
Why You Should Draft A Will
Many people believe that when they die, their personal belongings and all of their worldly possessions will automatically go to their next of kin - even if they don't have a will. Unfortunately, they're wrong. In fact, if an individual dies intestate (without a will) the probate courts will determine how to distribute that person's assets. And although the court system may ultimately decide to distribute the individual's assets in a manner that is consistent with his or her wishes, there is no guarantee that this will occur.
There are other downsides to the probate process (and dying without a will) as well. For example, it could take many weeks or months for the courts to compile an accurate list of an individual's assets. It could also take a prolonged period of time to identify and locate potential beneficiaries. Unfortunately, until this process is complete, money may not be distributed, even to legitimate and known beneficiaries!
By drafting a will, an individual ensures that his or her belongings will go to the desired beneficiaries. In addition, although some states may still probate/review wills for their validity, the existence of a will can speed up the court review process considerably. In this article, we'll go over the major benefits of drafting a will.
Wills Can Limit Family Disputes
Courts will allow wills to be contested in very rare circumstances. This usually occurs when there is reason to believe that the will is not totally legitimate - for example, if the person making the will is not of sound mind at the time the will is drafted and was influenced by some opportunistic third party. Although there is no guarantee that a relative won't contest a will or sue to obtain assets not bequeathed to them in the document, a well-written will can limit family arguments.
Be Specific
The key is to be as specific as possible when leaving an asset to a relative. For example, rather than including statements such as "I leave my rare coin collection to my cousin Jack", such a provision should read: "I give my entire rare coin collection, which consists of one 1812 United States "penny" and one 1810 American $1 bill, to my cousin Jack F. Kennedy, 100 Main Street, Anywhere, USA 12345." Again, the idea is to provide as many details as possible about both the asset(s) and the person that should receive the property. Specificity can prevent fighting, so try to lay out your wishes as explicitly as possible.
If you leave a valuable asset to a member of your family, create a follow-up provision stating who will be next in line to receive this asset if your chosen beneficiary dies before you do or is unable to accept the inheritance. Naming a contingent beneficiary is recommended because it will prevent family fights should the initial beneficiary be unable to accept the gift. (For more insight, see Refusing An Inheritance and Disclaiming Inherited Plan Assets.)
Wills Can Outline Personal Preferences/Desires
In addition to bequeathing assets to beneficiaries, a grantor (the deceased) may also outline how he or she would like certain assets to be used in the future. For example, a provision might say something like, "I give my antique 1938 Ford automobile to my son Jeffrey Smith of 123 Oak Street, Anywhere, USA 12345. I hope that my son will sell this asset to pay for his education or for a down payment on a new home."
To be clear, such a stipulation is not legally binding. In other words, the son would not be legally mandated to sell the vehicle. However, it is considered by some to be a great venue for an individual to convey his or her final wishes in simple terms for both family members and beneficiaries. These types of provisions may also prove to be extremely valuable to beneficiaries and executors who might otherwise be unprepared to handle the administration of an estate. (For related reading, see Encouraging Good Habits With An Incentive Trust.)
Wills Make Quantifying and Distributing Assets Easier
Without a will, a probate court might send out letters of inquiry to local banks, brokerage firms and other financial institutions to get a better handle on the deceased's financial situation. In addition, relatives may be asked to produce financial paperwork such as brokerage statements, stock certificates, government bonds or other similar documents. The logic behind these efforts is that the court first needs to know all of the assets that exist (or that existed), so that it may distribute them in an equitable manner. A will prevents the need for all that footwork and paperwork because it formally outlines the deceased's assets. It may also quantify what certain assets are worth.
What happens if a certain asset isn't identified by name in a will? How will it be distributed then?
In order to provide for that contingency, the will may contain a clause indicating that "any remaining assets not previously distributed elsewhere shall be paid to my mother Jennifer Smith, 456 Main Street, Anywhere, USA 56789." Such a provision will help to ensure that all an individual's remaining assets (such as assets acquired after the will was drafted) will be distributed. Incidentally, without a will, a court will decide what happens to the asset(s).
Wills Can Name a Guardian for Your Children
Without a will, the state in which you reside will determine who will retain guardianship over your children. While the state might choose someone you approve of, such as a family member, they may also choose an institution or an unrelated party. To avoid this, a will may outline a guardian of your choosing. To parents with young children, this is an invaluable provision that mustn't be overlooked.
Providing for Heirs with Special Needs
Suppose that one of your desired beneficiaries is either too young or too immature to manage an inheritance. In such cases a will may, by provision, place these assets in another vehicle known as a trust (upon your death) for the benefit of that individual. Stipulations can then be put in place (within the trust) which limit when and under which conditions the individual can access the inheritance. (For more insight, see Update Your Beneficiaries and Establishing A Revocable Living Trust.)
For example, a provision might provide for distribution of the assets when the beneficiary reaches the age of 25, or it might allow for the distribution of monies over a period of time. The logic behind such a provision is that the beneficiary will become more financially savvy and more mature over time. Incidentally, provisions may be tailored to care for elderly family members or those with other special needs as well.
Bottom Line
Individuals seeking to prevent family infighting, and who want to ensure that their spouses, children and other relatives are properly taken care of after they die would be wise to consider drafting a will. Due to the very legal nature of a will, be sure to consult an attorney prior to drafting or executing the document. An attorney will tailor a plan specific to your circumstances.
by Glenn Curtis (Contact Author
Biography)
Glenn Curtis started his career as an equity analyst at Cantone Research, a New Jersey-based regional brokerage firm. He has since worked as an equity analyst and a financial writer at a number of print/web publications and brokerage firms including Registered Representative Magazine, Advanced Trading Magazine, Worldlyinvestor.com, RealMoney.com, TheStreet.com and Prudential Securities. Curtis has also held Series 6,7,24 and 63 securities licenses.
There are other downsides to the probate process (and dying without a will) as well. For example, it could take many weeks or months for the courts to compile an accurate list of an individual's assets. It could also take a prolonged period of time to identify and locate potential beneficiaries. Unfortunately, until this process is complete, money may not be distributed, even to legitimate and known beneficiaries!
By drafting a will, an individual ensures that his or her belongings will go to the desired beneficiaries. In addition, although some states may still probate/review wills for their validity, the existence of a will can speed up the court review process considerably. In this article, we'll go over the major benefits of drafting a will.
Wills Can Limit Family Disputes
Courts will allow wills to be contested in very rare circumstances. This usually occurs when there is reason to believe that the will is not totally legitimate - for example, if the person making the will is not of sound mind at the time the will is drafted and was influenced by some opportunistic third party. Although there is no guarantee that a relative won't contest a will or sue to obtain assets not bequeathed to them in the document, a well-written will can limit family arguments.
Be Specific
The key is to be as specific as possible when leaving an asset to a relative. For example, rather than including statements such as "I leave my rare coin collection to my cousin Jack", such a provision should read: "I give my entire rare coin collection, which consists of one 1812 United States "penny" and one 1810 American $1 bill, to my cousin Jack F. Kennedy, 100 Main Street, Anywhere, USA 12345." Again, the idea is to provide as many details as possible about both the asset(s) and the person that should receive the property. Specificity can prevent fighting, so try to lay out your wishes as explicitly as possible.
If you leave a valuable asset to a member of your family, create a follow-up provision stating who will be next in line to receive this asset if your chosen beneficiary dies before you do or is unable to accept the inheritance. Naming a contingent beneficiary is recommended because it will prevent family fights should the initial beneficiary be unable to accept the gift. (For more insight, see Refusing An Inheritance and Disclaiming Inherited Plan Assets.)
Wills Can Outline Personal Preferences/Desires
In addition to bequeathing assets to beneficiaries, a grantor (the deceased) may also outline how he or she would like certain assets to be used in the future. For example, a provision might say something like, "I give my antique 1938 Ford automobile to my son Jeffrey Smith of 123 Oak Street, Anywhere, USA 12345. I hope that my son will sell this asset to pay for his education or for a down payment on a new home."
To be clear, such a stipulation is not legally binding. In other words, the son would not be legally mandated to sell the vehicle. However, it is considered by some to be a great venue for an individual to convey his or her final wishes in simple terms for both family members and beneficiaries. These types of provisions may also prove to be extremely valuable to beneficiaries and executors who might otherwise be unprepared to handle the administration of an estate. (For related reading, see Encouraging Good Habits With An Incentive Trust.)
Wills Make Quantifying and Distributing Assets Easier
Without a will, a probate court might send out letters of inquiry to local banks, brokerage firms and other financial institutions to get a better handle on the deceased's financial situation. In addition, relatives may be asked to produce financial paperwork such as brokerage statements, stock certificates, government bonds or other similar documents. The logic behind these efforts is that the court first needs to know all of the assets that exist (or that existed), so that it may distribute them in an equitable manner. A will prevents the need for all that footwork and paperwork because it formally outlines the deceased's assets. It may also quantify what certain assets are worth.
What happens if a certain asset isn't identified by name in a will? How will it be distributed then?
In order to provide for that contingency, the will may contain a clause indicating that "any remaining assets not previously distributed elsewhere shall be paid to my mother Jennifer Smith, 456 Main Street, Anywhere, USA 56789." Such a provision will help to ensure that all an individual's remaining assets (such as assets acquired after the will was drafted) will be distributed. Incidentally, without a will, a court will decide what happens to the asset(s).
Wills Can Name a Guardian for Your Children
Without a will, the state in which you reside will determine who will retain guardianship over your children. While the state might choose someone you approve of, such as a family member, they may also choose an institution or an unrelated party. To avoid this, a will may outline a guardian of your choosing. To parents with young children, this is an invaluable provision that mustn't be overlooked.
Providing for Heirs with Special Needs
Suppose that one of your desired beneficiaries is either too young or too immature to manage an inheritance. In such cases a will may, by provision, place these assets in another vehicle known as a trust (upon your death) for the benefit of that individual. Stipulations can then be put in place (within the trust) which limit when and under which conditions the individual can access the inheritance. (For more insight, see Update Your Beneficiaries and Establishing A Revocable Living Trust.)
For example, a provision might provide for distribution of the assets when the beneficiary reaches the age of 25, or it might allow for the distribution of monies over a period of time. The logic behind such a provision is that the beneficiary will become more financially savvy and more mature over time. Incidentally, provisions may be tailored to care for elderly family members or those with other special needs as well.
Bottom Line
Individuals seeking to prevent family infighting, and who want to ensure that their spouses, children and other relatives are properly taken care of after they die would be wise to consider drafting a will. Due to the very legal nature of a will, be sure to consult an attorney prior to drafting or executing the document. An attorney will tailor a plan specific to your circumstances.
by Glenn Curtis (Contact Author
Biography)
Glenn Curtis started his career as an equity analyst at Cantone Research, a New Jersey-based regional brokerage firm. He has since worked as an equity analyst and a financial writer at a number of print/web publications and brokerage firms including Registered Representative Magazine, Advanced Trading Magazine, Worldlyinvestor.com, RealMoney.com, TheStreet.com and Prudential Securities. Curtis has also held Series 6,7,24 and 63 securities licenses.
Thursday, September 9, 2010
Long-Term Investing: Hot Or Not?
The headlines blaze from magazine titles, book covers, newspapers and websites: "Beat the market!", "Here's the strategy you need!", "Get rich trading!" and "A five-star fund!" The talking heads on television fuel the fire even further, with some of them dancing around like crazed animals, frothing at the mouth and screaming for investors to "Buy!" It's enough to sway the convictions of even the most rational investors. Unfortunately, these seductive siren songs usually turn out to be all wrong. If you've ever struggled to keep up with market fluctuations in your investment strategy, read on to learn more about a simple investment strategy that will keep your returns on the rise.
The Truth
If these masterful investment strategies were as good as their advertisements, wouldn't there be a lot more rich people in your neighborhood? If the strategies can't lose, why do the mutual fund firms, wire houses and discount brokerages book huge profits while the average investor fares worse than an unmanaged index? The answer is simple: The financial services firms get paid even if you lose money.
The Numbers Don't Lie
According to Quantitative Analysis of Investor Behavior (2006), a study by the financial research organization Dalbar, the average investor in an open-ended mutual fund earned a 3.9% total yearly return for the 20-year period ending December 31, 2005. The S&P 500 index earned an annual return of 11.9%. The index didn't just beat the investors, it crushed them! (To learn more, see You Can't Judge An Index Fund By Its Cover and Index Investing.)
Dalbar reports that the average mutual fund investor purchased a fund and held it for just 4.3 years before selling. That was during good times - the holding period slipped to just 2.5 years during bear markets. Neither time period suggests that the average mutual fund investor understands the objective of long-term investing or the risks involved in short-term trading in pursuit of performance. (For related reading, check out Ten Tips For The Successful Long-Term Investor.)
The concept of selling the fund you have in order to purchase something different is encouraged by the idea that better returns can be had if only you choose "the right fund". In seeking this most desirable of all investments, most investors turn to historical performance as their guide. They see a fund with a "five star" rating or a particular sector of the economy (such as technology) delivering "hot" performance, and they trade in their current investments to purchase what they are sure must be "the next big thing". It's a classic mistake. (For more on this, see Digging Deeper: The Mutual Fund Prospectus.)
By the time the average investor is aware of a top-performing fund or industry sector, they are looking at last year's winner. The gains have happened already. The folks that made big money did it last year, last quarter or even last week. It doesn't take long before the investment is overpriced, overvalued and headed downhill. It's the perfect time to sell, but generally a foolish time to buy. Unfortunately, as the Dalbar numbers demonstrate, it's precisely the time far too many investors send their dollars in the wrong direction, buying an investment that is unlikely to repeat its past performance anytime soon.
Even when a few lucky investors do manage to grab on to the tail end of a trend, the strategy of chasing performance usually ends badly. For the most part, these investors are too greedy to sell and lock in their profits. They hold the investment as long as the price is going up and continue to hold it on the way back down - and, when the house of cards folds, they can get hurt.
Doesn't Anybody Win?
There's absolutely no doubt that some investment managers beat their benchmarks. Some even manage the task for prolonged periods of time. That said, even Warren Buffet has down years. It is simply unrealistic to expect that any investment or any strategy will always deliver positive performance. (To learn more about Warren Buffett's investment strategies, see Warren Buffett: How He Does It and What Is Warren Buffett's Investing Style?)
With that in mind, it is equally important to remember that a bad year does not reflect a bad strategy necessarily. Market conditions change all the time. Factors beyond an individual company's control, such as bad weather, political problems, war, terrorism or simply the need to remodel aging facilities, can cause temporary setbacks. In the long term, these setbacks are just blips on the radar - not a reason to abandon a successful investment.
The Long-Term Trend Is Your Friend
Short-term market performance is unpredictable. Daily price swings occur, sometimes for seemingly irrational reasons, which is why long-term investors ignore short-term distractions. To get a better sense of the long term, take a look at the performance of any major market index over a 20-year period. The trend is for the numbers to move upward. Sure, there are peaks and valleys, but overall, the direction of the movement is up.
Plan to Win
Take advantage of the long-term trend when planning your investment strategy. Accept the fact that your portfolio won't always be in the "right" place at the "right" time, and that you won't always own the "hot" investment. Instead of acting like an amateur and chasing short-term performance, plan your investments like a professional.
Set a long-term goal and then choose a strategy that has a high likelihood of achieving that goal. Make logical decisions, not emotional reactions. Think about inflation and don't count on cash to appreciate at a greater rate. Rely on the time-tested theories of diversification and low-cost investing to help you over the long term.
Conclusion
Although many people manage to build sizable amounts of wealth by jumping from one "hot" strategy to another, the odds are against you if you try to follow in their footsteps. One wrong move and your portfolio's value could suffer irreversible damage. In the long-run, buying and holding will probably leave you at least as well-off, if not better, and it sure is a lot less stressful!
The Truth
If these masterful investment strategies were as good as their advertisements, wouldn't there be a lot more rich people in your neighborhood? If the strategies can't lose, why do the mutual fund firms, wire houses and discount brokerages book huge profits while the average investor fares worse than an unmanaged index? The answer is simple: The financial services firms get paid even if you lose money.
The Numbers Don't Lie
According to Quantitative Analysis of Investor Behavior (2006), a study by the financial research organization Dalbar, the average investor in an open-ended mutual fund earned a 3.9% total yearly return for the 20-year period ending December 31, 2005. The S&P 500 index earned an annual return of 11.9%. The index didn't just beat the investors, it crushed them! (To learn more, see You Can't Judge An Index Fund By Its Cover and Index Investing.)
Dalbar reports that the average mutual fund investor purchased a fund and held it for just 4.3 years before selling. That was during good times - the holding period slipped to just 2.5 years during bear markets. Neither time period suggests that the average mutual fund investor understands the objective of long-term investing or the risks involved in short-term trading in pursuit of performance. (For related reading, check out Ten Tips For The Successful Long-Term Investor.)
The concept of selling the fund you have in order to purchase something different is encouraged by the idea that better returns can be had if only you choose "the right fund". In seeking this most desirable of all investments, most investors turn to historical performance as their guide. They see a fund with a "five star" rating or a particular sector of the economy (such as technology) delivering "hot" performance, and they trade in their current investments to purchase what they are sure must be "the next big thing". It's a classic mistake. (For more on this, see Digging Deeper: The Mutual Fund Prospectus.)
By the time the average investor is aware of a top-performing fund or industry sector, they are looking at last year's winner. The gains have happened already. The folks that made big money did it last year, last quarter or even last week. It doesn't take long before the investment is overpriced, overvalued and headed downhill. It's the perfect time to sell, but generally a foolish time to buy. Unfortunately, as the Dalbar numbers demonstrate, it's precisely the time far too many investors send their dollars in the wrong direction, buying an investment that is unlikely to repeat its past performance anytime soon.
Even when a few lucky investors do manage to grab on to the tail end of a trend, the strategy of chasing performance usually ends badly. For the most part, these investors are too greedy to sell and lock in their profits. They hold the investment as long as the price is going up and continue to hold it on the way back down - and, when the house of cards folds, they can get hurt.
Doesn't Anybody Win?
There's absolutely no doubt that some investment managers beat their benchmarks. Some even manage the task for prolonged periods of time. That said, even Warren Buffet has down years. It is simply unrealistic to expect that any investment or any strategy will always deliver positive performance. (To learn more about Warren Buffett's investment strategies, see Warren Buffett: How He Does It and What Is Warren Buffett's Investing Style?)
With that in mind, it is equally important to remember that a bad year does not reflect a bad strategy necessarily. Market conditions change all the time. Factors beyond an individual company's control, such as bad weather, political problems, war, terrorism or simply the need to remodel aging facilities, can cause temporary setbacks. In the long term, these setbacks are just blips on the radar - not a reason to abandon a successful investment.
The Long-Term Trend Is Your Friend
Short-term market performance is unpredictable. Daily price swings occur, sometimes for seemingly irrational reasons, which is why long-term investors ignore short-term distractions. To get a better sense of the long term, take a look at the performance of any major market index over a 20-year period. The trend is for the numbers to move upward. Sure, there are peaks and valleys, but overall, the direction of the movement is up.
Plan to Win
Take advantage of the long-term trend when planning your investment strategy. Accept the fact that your portfolio won't always be in the "right" place at the "right" time, and that you won't always own the "hot" investment. Instead of acting like an amateur and chasing short-term performance, plan your investments like a professional.
Set a long-term goal and then choose a strategy that has a high likelihood of achieving that goal. Make logical decisions, not emotional reactions. Think about inflation and don't count on cash to appreciate at a greater rate. Rely on the time-tested theories of diversification and low-cost investing to help you over the long term.
Conclusion
Although many people manage to build sizable amounts of wealth by jumping from one "hot" strategy to another, the odds are against you if you try to follow in their footsteps. One wrong move and your portfolio's value could suffer irreversible damage. In the long-run, buying and holding will probably leave you at least as well-off, if not better, and it sure is a lot less stressful!
Tuesday, September 7, 2010
COMING BACK TO LUMBA- A DAY
COMING BACK TO LUMBA- A DAY
Date: 07.09.2010
Time: 13:00 hrs to 14:55 hrs
It was really reminiscing and refreshing at the same time when you come to your B-school campus, but the day in my life had to come after exactly 4 years after I passed out of LUMBA( Lucknow university MBA).
The instant interaction with Mr. chandran as soon as I entered the doors of happiness for me, meeting and have some great mindstorming discussions with Dr( Prof) J K Sharma sir and Mr. Sanjay Medhavi sir, gave me a strong impetus to go on and interact with the present batch of LUMBA 2009-2011 and 2010-2012.
The interaction was predecided at 1300 Hrs at department’s conference hall, which started dot on time, and then went on the guest lecture which the B-schools says and the corporate world says , but for me and my team from CELEB FINANCIAL PLANNERS Global, it is a kind of experience which would always be called a discussion.
We interacted on the the following parameters:
The world outside the campus on the work front.
The entrepreneurial skill developments
How to start small business set ups
The concept of boss management
The targets, achievements, excellence in the jobs outside the campus.
Time management and health management
Stress management
Pursuit of happiness” in following your talent”
Though the time slot was limited, but tried to disseminate as much as possible in the session of 1 hr 55 minutes.
Looking forward to some great talents coming out of this campus every single year and probably in next 5 years time making it the most prestigious learning centre and a B-school, across the country.
Regards
AJIT PANICKER
Chief Financial Planner
CELEB FINANCIAL PLANNERS Global
+919811536424
ajitkpanicker@cfpglobal.com
www.cfpglobal.com
Date: 07.09.2010
Time: 13:00 hrs to 14:55 hrs
It was really reminiscing and refreshing at the same time when you come to your B-school campus, but the day in my life had to come after exactly 4 years after I passed out of LUMBA( Lucknow university MBA).
The instant interaction with Mr. chandran as soon as I entered the doors of happiness for me, meeting and have some great mindstorming discussions with Dr( Prof) J K Sharma sir and Mr. Sanjay Medhavi sir, gave me a strong impetus to go on and interact with the present batch of LUMBA 2009-2011 and 2010-2012.
The interaction was predecided at 1300 Hrs at department’s conference hall, which started dot on time, and then went on the guest lecture which the B-schools says and the corporate world says , but for me and my team from CELEB FINANCIAL PLANNERS Global, it is a kind of experience which would always be called a discussion.
We interacted on the the following parameters:
The world outside the campus on the work front.
The entrepreneurial skill developments
How to start small business set ups
The concept of boss management
The targets, achievements, excellence in the jobs outside the campus.
Time management and health management
Stress management
Pursuit of happiness” in following your talent”
Though the time slot was limited, but tried to disseminate as much as possible in the session of 1 hr 55 minutes.
Looking forward to some great talents coming out of this campus every single year and probably in next 5 years time making it the most prestigious learning centre and a B-school, across the country.
Regards
AJIT PANICKER
Chief Financial Planner
CELEB FINANCIAL PLANNERS Global
+919811536424
ajitkpanicker@cfpglobal.com
www.cfpglobal.com
Sunday, September 5, 2010
6 Signs That You've Made It To Middle Class
Not so long ago, most people viewed the hallmarks of success as something along the lines of a house, two weeks vacation, two children and the ability to send those kids to college. Today, the middle class is a vanishing breed according to nearly every survey and statistic on the topic. Its disappearance is of such grave concern to the fabric of American society that the U.S. government launched a task force to explore the issue. Despite all of the attention to the subject, defining "middle class" remains a challenge, as everyone wants to be in the middle regardless of their income. Instead of focusing on the dollars, let's take a look at the lifestyle benchmarks that define middle class status. (For a background on the topic, see Losing The Middle Class.)
Have You Made it to the Middle?
A wide variety of numbers have been thrown around in an effort to define the middle. People earning 20% of the average income and people earning 80% all claim to be part of the middle class. More than a few millionaires make the claim too. While there is no official financial standard, the middle class as defined by the government task force is characterized in terms of six financial aspirations, which we can view as benchmarks.
•Home Ownership
Home ownership remains the American dream. The step up from renting to owning signifies prosperity and achievement. With median home prices ranges differing by so much in different cities across the United States, the ability to achieve this goal varies significantly by geographical location. Someone earning an income in the 50% range in Detroit may not be able to afford even a small house in Los Angeles. (Looking to leap into homeownership? Read Top Tips For First-Time Home Buyers.)
•Automobile Ownership
Owning an automobile provides freedom of movement and the luxury of avoiding the limited schedules and cramped quarters offered by mass transportation options such as buses and subways. Here again, the cost of cars varying widely, as does the kind of automobile required. For one driver, a used Hyundai will do the trick. For another, a new BMW signifies the achievement of this goal.
•A College Education for the Kids
Helping children get ahead in life is a primary goal for middle class families. Paying for a college education for children can cost anywhere from the low tens of thousands of dollars to hundreds of thousands. Decisions about which university of college to attend can have a significant impact on the price tag. (Worried about footing the university bill? Check out 5 Ways To Fund A College Education.)
•Retirement Security
Retirement is a goal nearly everyone wants to achieve. It demonstrates success and provides a reward for decades of hard work. Once again, definitions make a difference. The amount of gold required to support your golden years will vary significantly depending on whether you want a staff of 10 at your villa in the South of France or a townhouse in Peoria, Illinois.
•Health Care Coverage
The ability to obtain healthcare is an important goal for middle class wager earners and their families. The high and rising cost of medical care and prescription drugs make healthcare coverage an ever-increasing need, as going without it can have serious negative financial implications in the event of a severe illness or injury.
•Family Vacation
The family vacation is a middle class staple. Vacations demonstrate that a family has disposable income and has been successful enough to take time away from work to focus on leisure. (Check out 3 Money-Saving
Cruise Ship Tips and 7 Ways To Save On Summer Getaways for tips on how to have a fun and budget-friendly summer adventure.)
What Happened on the Way to the Dream?
Globalization and technological advances began to reverse the growth of the middle class. The manufacturing base in the United States changed, as good-paying jobs in factories and heavy industries went overseas to lower-paying markets and labor unions lost much of their ability to bargain for high wages and good benefits. Later, white-collar jobs from accounting and data entry to reading medical images and answering telephones in call centers were also sent offshore. Many jobs that remained in the U.S. were eliminated by computers and other technological advancements that increased productivity.
To achieve or maintain a middle-class lifestyle, many households became two-income families. Achieving middle class goals became more difficult as employers eliminated their pension plans and defined-benefit
plans, the cost of a college education continued to rise and the cost of healthcare jumped. For most of the 20-year period following 1990, the Commerce Department reports that real median income grew at a rate of about 20%, while the cost of a college education grew between 43% and 60%, the cost of housing rose 56% and healthcare costs jumped by 155%.
How to Get There
Although there are significant challenges to obtaining middle class status, there are some proactive steps that can help make the dream a reality. Budgeting is one of the most obvious. Understanding where your money goes each month can help you determine the exact makeup of the benchmarks you are trying to match. Are you looking for a Hyundai or a BMW? (Check out 6 Months To A Better Budget for some helpful tips.)
Planning is another crucial step. Are the kids going to a state university or a private college? Are scholarships an option? Some savvy families find money for college by participating in programs which can aide families with the costs related to sending a child to university.
Working is another one of the requirements. A second job or a side business might be just what you need to boost your income and achieve some of your goals. Putting your money to work is also an important consideration. Investing has helped build wealth for generations. In fact, income earners ranked in the top 1% enjoyed significant increases in wealth even as the middle class fell into decline. Most of that wealth came from investments. Even if you don't have the means to invest for current income, you can take a few dollars from each paycheck and save for your retirement.
The Bottom Line
Don't underestimate the role of hard work and luck. Sometimes being in the right place at the right time or taking one particular course of action over another can make all the difference. So keep watching for opportunities and make the most of them when you find them. As motion-picture mogul Samuel Goldwyn said, "The harder I work, the luckier I get." (For a whole lot more on saving for the important things in your life, see our Investopedia Special Feature: Budgeting 101.)
by James E. McWhinney (Contact Author
Biography)
Have You Made it to the Middle?
A wide variety of numbers have been thrown around in an effort to define the middle. People earning 20% of the average income and people earning 80% all claim to be part of the middle class. More than a few millionaires make the claim too. While there is no official financial standard, the middle class as defined by the government task force is characterized in terms of six financial aspirations, which we can view as benchmarks.
•Home Ownership
Home ownership remains the American dream. The step up from renting to owning signifies prosperity and achievement. With median home prices ranges differing by so much in different cities across the United States, the ability to achieve this goal varies significantly by geographical location. Someone earning an income in the 50% range in Detroit may not be able to afford even a small house in Los Angeles. (Looking to leap into homeownership? Read Top Tips For First-Time Home Buyers.)
•Automobile Ownership
Owning an automobile provides freedom of movement and the luxury of avoiding the limited schedules and cramped quarters offered by mass transportation options such as buses and subways. Here again, the cost of cars varying widely, as does the kind of automobile required. For one driver, a used Hyundai will do the trick. For another, a new BMW signifies the achievement of this goal.
•A College Education for the Kids
Helping children get ahead in life is a primary goal for middle class families. Paying for a college education for children can cost anywhere from the low tens of thousands of dollars to hundreds of thousands. Decisions about which university of college to attend can have a significant impact on the price tag. (Worried about footing the university bill? Check out 5 Ways To Fund A College Education.)
•Retirement Security
Retirement is a goal nearly everyone wants to achieve. It demonstrates success and provides a reward for decades of hard work. Once again, definitions make a difference. The amount of gold required to support your golden years will vary significantly depending on whether you want a staff of 10 at your villa in the South of France or a townhouse in Peoria, Illinois.
•Health Care Coverage
The ability to obtain healthcare is an important goal for middle class wager earners and their families. The high and rising cost of medical care and prescription drugs make healthcare coverage an ever-increasing need, as going without it can have serious negative financial implications in the event of a severe illness or injury.
•Family Vacation
The family vacation is a middle class staple. Vacations demonstrate that a family has disposable income and has been successful enough to take time away from work to focus on leisure. (Check out 3 Money-Saving
Cruise Ship Tips and 7 Ways To Save On Summer Getaways for tips on how to have a fun and budget-friendly summer adventure.)
What Happened on the Way to the Dream?
Globalization and technological advances began to reverse the growth of the middle class. The manufacturing base in the United States changed, as good-paying jobs in factories and heavy industries went overseas to lower-paying markets and labor unions lost much of their ability to bargain for high wages and good benefits. Later, white-collar jobs from accounting and data entry to reading medical images and answering telephones in call centers were also sent offshore. Many jobs that remained in the U.S. were eliminated by computers and other technological advancements that increased productivity.
To achieve or maintain a middle-class lifestyle, many households became two-income families. Achieving middle class goals became more difficult as employers eliminated their pension plans and defined-benefit
plans, the cost of a college education continued to rise and the cost of healthcare jumped. For most of the 20-year period following 1990, the Commerce Department reports that real median income grew at a rate of about 20%, while the cost of a college education grew between 43% and 60%, the cost of housing rose 56% and healthcare costs jumped by 155%.
How to Get There
Although there are significant challenges to obtaining middle class status, there are some proactive steps that can help make the dream a reality. Budgeting is one of the most obvious. Understanding where your money goes each month can help you determine the exact makeup of the benchmarks you are trying to match. Are you looking for a Hyundai or a BMW? (Check out 6 Months To A Better Budget for some helpful tips.)
Planning is another crucial step. Are the kids going to a state university or a private college? Are scholarships an option? Some savvy families find money for college by participating in programs which can aide families with the costs related to sending a child to university.
Working is another one of the requirements. A second job or a side business might be just what you need to boost your income and achieve some of your goals. Putting your money to work is also an important consideration. Investing has helped build wealth for generations. In fact, income earners ranked in the top 1% enjoyed significant increases in wealth even as the middle class fell into decline. Most of that wealth came from investments. Even if you don't have the means to invest for current income, you can take a few dollars from each paycheck and save for your retirement.
The Bottom Line
Don't underestimate the role of hard work and luck. Sometimes being in the right place at the right time or taking one particular course of action over another can make all the difference. So keep watching for opportunities and make the most of them when you find them. As motion-picture mogul Samuel Goldwyn said, "The harder I work, the luckier I get." (For a whole lot more on saving for the important things in your life, see our Investopedia Special Feature: Budgeting 101.)
by James E. McWhinney (Contact Author
Biography)
Saturday, September 4, 2010
Use your gold if you are in a financial crisis
Have you been in a money crunch or desperate to raise some cash to get out of a personal financial crisis? If you own some gold, this might be an opportunity when you can actually realize the glittering quality of gold. Did you know that you can use... Read More
Use your gold if you are in a financial crisis
How can you use gold if you are financially strained?
Loans against gold:
Did you know that you can take a loan against your gold jewellery and ornaments. Many banks and non-banking companies like Muthoot and Mannapuram can offer you loans almost instantaneously if you take a loan from them and offer your gold as a security... Read More
Sell your physical gold or gold ETFs:
Many families buy gold as a store of value that they can encash on a rainy day. Whether you own gold in physical form (jewellery, bars) or in paper form (ETFs), if you need to raise cash, you can consider selling your gold. The advantage of selling gold is that its a market that is very liquid, which is... Read More
Gold deposit schemes:
Just like you can deposit cash into a Fixed Deposit and earn interest on it, you can also deposit your gold coins, jewellery into a gold deposit and earn interest income on it. Some banks like SBI offer this service. Your gold will be converted into bars and you will get a certificate to the effect... Read More
Leasing your gold jewellery:
Leasing your gold jewellery is not yet done in the organised market, but there are certain places where you can lease out your gold jewellery for other people's wedding. This is often practiced by retailers and beauty shops who provide wedding dresses. You can earn "rent" on your jewellery... Read More
So the next time you are in a tight financial situation, be creative and see if you can use your existing gold. Rather than it sitting idle in a locker somewhere, use it to get out of your financial crisis.
Use your gold if you are in a financial crisis
How can you use gold if you are financially strained?
Loans against gold:
Did you know that you can take a loan against your gold jewellery and ornaments. Many banks and non-banking companies like Muthoot and Mannapuram can offer you loans almost instantaneously if you take a loan from them and offer your gold as a security... Read More
Sell your physical gold or gold ETFs:
Many families buy gold as a store of value that they can encash on a rainy day. Whether you own gold in physical form (jewellery, bars) or in paper form (ETFs), if you need to raise cash, you can consider selling your gold. The advantage of selling gold is that its a market that is very liquid, which is... Read More
Gold deposit schemes:
Just like you can deposit cash into a Fixed Deposit and earn interest on it, you can also deposit your gold coins, jewellery into a gold deposit and earn interest income on it. Some banks like SBI offer this service. Your gold will be converted into bars and you will get a certificate to the effect... Read More
Leasing your gold jewellery:
Leasing your gold jewellery is not yet done in the organised market, but there are certain places where you can lease out your gold jewellery for other people's wedding. This is often practiced by retailers and beauty shops who provide wedding dresses. You can earn "rent" on your jewellery... Read More
So the next time you are in a tight financial situation, be creative and see if you can use your existing gold. Rather than it sitting idle in a locker somewhere, use it to get out of your financial crisis.
Friday, September 3, 2010
Piramal Healthcare got Rs 12,000 cr to play with
Investors Likely To Get Special Dividend; OTC & Contract Biz Could See Big Push
AFTER persistent rumours of a sell-out to various multinational pharma players, Piramal Healthcare has finally chosen to hawk its domestic formulations business to US-based Abbott Laboratories.
For Piramal, the deal is indeed an attractive one.The domestic business which generates annual revenues
aggregating Rs 1,800 crore and having one of the largest sales force in the country is the most profitable part of the business.
While divesting it probably may not be the best decision for the company given the size of revenues, selling it at over nine times its revenues means that the company has clinched a good deal. For Piramal
Healthcare, this will translate into a large cashpile.
The transaction will lead to fund flows of Rs 17,000 crore into the company. Assuming the
company pays Rs 3,750 crore towards long-term capital gains tax and utilises a further Rs 1,300 crore
for retiring debt on its books, Piramal Healthcare will be left holding free cash of close to Rs 12,000 crore.
The company plans to use this cash for paying a special dividend to its shareholders while the balance will be used to fund the growth plans of its remaining businesses of contract manufacturing, critical care, over-the-counter (OTC) products, API business, vitamin and fine chemicals, diagnostic services;
The company’s management, however, is yet to provide full details about new business areas that it proposes to enter into using the cash pile generated through the sale.
The reaction of the street, which appeared to a knee-jerk one, has been negative. The company’s stock has shed the gains recorded over the last four trading sessions — sliding over 12%. Piramal Healthcare, trading at a market cap of Rs 11,000 crore, could well see a further drop in its stock price in the near term following the divestment of the company’s core business.
The cash in hand of close to Rs 12,000 crore may help in propping the stock value in the near term
until it declares the special dividend. However, as the company unveils the plans for deployment of cash in
the existing and new businesses, there could be greater clarity on future earnings of the company.
For investors in Piramal Healthcare, it may make sense to hold on for a while considering that the company is still left with promising businesses such as contract manufacturing and OTC businesses. With the fresh inflow of funds, the company would be in a position to scale up these businesses. The special dividend, which is likely to be quite generous given the size of the deal, may also be a clincher
AFTER persistent rumours of a sell-out to various multinational pharma players, Piramal Healthcare has finally chosen to hawk its domestic formulations business to US-based Abbott Laboratories.
For Piramal, the deal is indeed an attractive one.The domestic business which generates annual revenues
aggregating Rs 1,800 crore and having one of the largest sales force in the country is the most profitable part of the business.
While divesting it probably may not be the best decision for the company given the size of revenues, selling it at over nine times its revenues means that the company has clinched a good deal. For Piramal
Healthcare, this will translate into a large cashpile.
The transaction will lead to fund flows of Rs 17,000 crore into the company. Assuming the
company pays Rs 3,750 crore towards long-term capital gains tax and utilises a further Rs 1,300 crore
for retiring debt on its books, Piramal Healthcare will be left holding free cash of close to Rs 12,000 crore.
The company plans to use this cash for paying a special dividend to its shareholders while the balance will be used to fund the growth plans of its remaining businesses of contract manufacturing, critical care, over-the-counter (OTC) products, API business, vitamin and fine chemicals, diagnostic services;
The company’s management, however, is yet to provide full details about new business areas that it proposes to enter into using the cash pile generated through the sale.
The reaction of the street, which appeared to a knee-jerk one, has been negative. The company’s stock has shed the gains recorded over the last four trading sessions — sliding over 12%. Piramal Healthcare, trading at a market cap of Rs 11,000 crore, could well see a further drop in its stock price in the near term following the divestment of the company’s core business.
The cash in hand of close to Rs 12,000 crore may help in propping the stock value in the near term
until it declares the special dividend. However, as the company unveils the plans for deployment of cash in
the existing and new businesses, there could be greater clarity on future earnings of the company.
For investors in Piramal Healthcare, it may make sense to hold on for a while considering that the company is still left with promising businesses such as contract manufacturing and OTC businesses. With the fresh inflow of funds, the company would be in a position to scale up these businesses. The special dividend, which is likely to be quite generous given the size of the deal, may also be a clincher
Thursday, September 2, 2010
UBI lowers rates on its FCNR, NRE term deposits
UBI lowers rates on its FCNR, NRE term deposits
Public sector lender, Union Bank of India (UBI), today said that it has lowered interest rates on its Foreign Currency Non Resident (FCNR-B) and Non Resident External (Rupee) Term Deposits.
The revised rates are with effect from today, the bank said in a press release issued here.
For NRE (Rupee) term deposits of a maturity of one-year to less than two-years, the rate has been lowered to 2.59 per cent from 2.79 per cent, while for a maturity of two-years to less than three-years, it has been lowered to 2.42 per cent from 2.49 per cent, the release said.
For a maturity of three-years and above, it has been lowered to 2.70 per cent from 2.82 per cent.
For FCNR (B) US dollar-denominiated deposits, the rate has been lowered to 1.84 per cent from 2.04 per cent for a maturity period of one-year to less than two-years.
For two-years to less than three-years, it has been lowered to 1.67 per cent from 1.74 per cent, while for three-years to less than four-years, it has been lowered to 1.95 per cent from 2.07 per cent, it said.
For a maturity of four-years to less than five-years, the new rate is 2.27 as against the earlier 2.43 per cent, the release said.
For a maturity of five-years, the rate has been revised to 2.57 per cent from the earlier 2.79 per cent.
Interest rates have also been revised for GBP and Euro-denominated FCNR (B) deposits, the release said
Public sector lender, Union Bank of India (UBI), today said that it has lowered interest rates on its Foreign Currency Non Resident (FCNR-B) and Non Resident External (Rupee) Term Deposits.
The revised rates are with effect from today, the bank said in a press release issued here.
For NRE (Rupee) term deposits of a maturity of one-year to less than two-years, the rate has been lowered to 2.59 per cent from 2.79 per cent, while for a maturity of two-years to less than three-years, it has been lowered to 2.42 per cent from 2.49 per cent, the release said.
For a maturity of three-years and above, it has been lowered to 2.70 per cent from 2.82 per cent.
For FCNR (B) US dollar-denominiated deposits, the rate has been lowered to 1.84 per cent from 2.04 per cent for a maturity period of one-year to less than two-years.
For two-years to less than three-years, it has been lowered to 1.67 per cent from 1.74 per cent, while for three-years to less than four-years, it has been lowered to 1.95 per cent from 2.07 per cent, it said.
For a maturity of four-years to less than five-years, the new rate is 2.27 as against the earlier 2.43 per cent, the release said.
For a maturity of five-years, the rate has been revised to 2.57 per cent from the earlier 2.79 per cent.
Interest rates have also been revised for GBP and Euro-denominated FCNR (B) deposits, the release said
Personal loan may not always be a good idea
Personal loan may rescue you in an hour of need, but are you aware there exist not only better options but also more secured ones to get money quickly. Financial planners profess a personal loan should be the last item on your menu when shopping for money even if your requirement is immediate.
Personal loans and loan on credit cards are responsible for today millions of people under debt trap. Yet these people never realised they had a choice beyond even borrowing from friends and relatives, which was on decent terms and conditions.
With the credit history of the borrowers being increasingly considered for any future loans, a lot of your plans for today and tomorrow depend on how respectfully you manage your debt. Judicious debt management helps not only reduce the burden but also grows assets. It is the most practical way to evade debt in the financial ecosystem. Here’s a ready reckoner on better alternatives to a personal loan
Personal loans and loan on credit cards are responsible for today millions of people under debt trap. Yet these people never realised they had a choice beyond even borrowing from friends and relatives, which was on decent terms and conditions.
With the credit history of the borrowers being increasingly considered for any future loans, a lot of your plans for today and tomorrow depend on how respectfully you manage your debt. Judicious debt management helps not only reduce the burden but also grows assets. It is the most practical way to evade debt in the financial ecosystem. Here’s a ready reckoner on better alternatives to a personal loan
Wednesday, September 1, 2010
LTA to enjoy tax exemption in new regime
The government may allow the Leave Travel Allowance (LTA) to be exempted from taxation once the Direct Tax Code (DTC) comes into effect. The directive to this extent will figure in the rules to be framed by the finance ministry after the DTC is passed by Parliament.
A senior finance ministry official, who is involved with the framing of the DTC, clarified that the LTA will enjoy tax exemption and individual taxpayers would continue to enjoy the same benefits that are available at present — actual expenditure on account of the LTA will be exempted for two years in a block of four.
However, in the new structure, the LTA will be clubbed as a part of the income. The difference will reflect in the reporting mechanism, where the LTA will have to be accounted in the total income and then deductions would be allowed. The idea behind this reporting mechanism is to ascertain the amount of money an employee gets as the LTA. So far, LTAs don't reflect in either salary slips or in Form 16. After the DTC Rules are framed, the LTAs will also find mention in Form 16 issued by employers.
As the LTA was missing from the list of exemptions in the proposed DTC, tabled in Parliament last week, there was a growing perception that the government has done away with the incentive and decided to tax employees
A senior finance ministry official, who is involved with the framing of the DTC, clarified that the LTA will enjoy tax exemption and individual taxpayers would continue to enjoy the same benefits that are available at present — actual expenditure on account of the LTA will be exempted for two years in a block of four.
However, in the new structure, the LTA will be clubbed as a part of the income. The difference will reflect in the reporting mechanism, where the LTA will have to be accounted in the total income and then deductions would be allowed. The idea behind this reporting mechanism is to ascertain the amount of money an employee gets as the LTA. So far, LTAs don't reflect in either salary slips or in Form 16. After the DTC Rules are framed, the LTAs will also find mention in Form 16 issued by employers.
As the LTA was missing from the list of exemptions in the proposed DTC, tabled in Parliament last week, there was a growing perception that the government has done away with the incentive and decided to tax employees
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