Exchange Traded Fund (ETF).
Exchange traded fund (ETF) are traded on the recognized stocks exchanges and usually it is the mutual funds schemes or Index or other asset class (like for example Gold). ETF can be bought and sold like any other stocks or securities. Mostly across the world most of the Indices are traded in ETF forms. The ETF can be hold as dematerialized forms in the Investor accounts. Though usually, most of the ETF are traded in secondary market, but practically, both primary & secondary market can co-exists in a particular country.
Read more at http://www.einfomet.com/exchange-traded-fund-etf/
Food for thought for Priority Investor – Dividend and Rental Income approach
After 2008 global turmoil, there has been a debate on earning from dividend yield stocks and earning from rental property (Residential and as well as commercial). Both of them scored high on various parameters such as principal of an investment, cash flow benefits & risk profiling. It’s a superior vehicle for building wealth for the investor. Though the yardstick for analyzing dividend paying stocks and rental property asset may be different for our priority customer, but both of them certainly can match cash flow requirement and ability to provide the higher return in alternate asset class.
Analysing Dividend yield and Rental Income comparison
“Google Search” now can predict Next Stock market Crash
Do you remember Amitabh Bachchan (famous Indian Actor) dialog in “PAA” ( a Hindi Indian Movie) that “Google se Bach ke kaha Jaoge” ( Means You cannot escape from Google”). Yes, now it is true for stock market investor also. By looking at a specific topics (rather Keyword) people search for on internet by using Google search, the new analysis can tell you is the stock market is headed for a crash?
As per the study by the National Academy of Sciences, researchers from Warwick Business School & Boston University have created a method to identify search terms that precede a stock market crash. They have developed algorithms to identify the trend based on search engine. The algorithms based on Wikipedia into different financial topics such as “management,” “business,” & “bank). The institute has done extensive research based on these algorithm & then consulted Google Trends to find spikes in business- and politics-related queries. Based on their study, they have found “rise in certain terms” which can predict stock market falls in advance.
Basis of the Study
Search engines “Google” record everything we search for. Google has supreme leadership position with 114.73 billion search queries or have around 65.2 % market share. China search giant Baidu has 8.2 % and Yahoo has around 4.9 percent%. The method shows that increases in searches proceeded falls in the stock market. Based on Google Search optimization, the researcher applied an appropriate set of keywords related to finance.
Records of these search queries allow the research to learn about how people gather information online before making any investment decisions in the real world. So, there is a link between search & action. These data certainly help to finds trend from what large groups of people may do.
Summary of Observation
FDI IN INSURANCE
The government has raised long awaited FDI in insurance from 26% to 49% in the Union Budget 2014- 15. It is expected that the government wants to promote “FDI” selectively. The proposal is pending since 2008. The increase in the FDI limit to 49% would certainly help domestic insurance firms to get access to the much needed capital from its overseas partners.. This is the big positive & stocks like , Max India, Bajaj Finserve , Exide industry Aditya Birla Nuvo is like to get benefited.
With this, lets understand the impact on longer term perspective.
As per Harsha Kapoor, Managing Partner – Avizare Solutions,) FDI Will make the Indian Insurance sector more vibrant and dynamic in the intermediate and long term. Insurance companies and other players have to gear-up and plan now to reap the future benefits. They have prepared an excellent fundamental report & the report can be viwed at link below-
Longer term Growth Driver
1) Rising income & growth of middle class
2) Financial Sophistication
3) Societal changes and urbanization
Focus of Insurance will shift to -
• Shift focus to untapped markets
• innovate on products and services
• Strengthen risk management practices
• Achieve operational efficiency
Foreign Partner will have first right of refusal
Another issue that the Government’s decision to increase Foreign Direct Investment ( FDI) cap in the insurance sector to 49% could reopen the prickly issue of pricing the additional 23% stake sale to the foreign partner. The much needed increase will like to t open gate. Most insurance joint ventures (Like SBI life , HDFC life etc) have given its alliance partner “the right of first refusal” rights to buy additional stake. This includes, company like like SBI Life and HDFC Life etc. As per HDFC Standard life, the first right to buy stake for at market price is with Standard life, if limits are raised.
- See more at: http://www.einfomet.com/fdi-insurance/#sthash.ils6KcdC.dpuf
Fixed income is as “Asset Class” generally defensive in nature. It provides capital stability, income, liquidity and diversification to other growth- oriented asset classes. Fixed income asset provides fixed income stream. The investor gets returned, by way, of interest to the investor for a particular fixed period of time. Upon maturity, the investor gets back their principal along with Interest due if any. Irrespective of any market fluctuation, the income for the investor is fixed & that is the reason it is usually called as “Fixed Income”. However, fixed income assets historically have had a lower rate of return than other riskier asset class.
- See more at: http://www.einfomet.com/fixed-income-asset-class/
Billionaire investor Shivanand Mankekar bought Jain Irrigation
The billionaire investor & professor Mr Shivanand Shankar Mankekar has recently bought 82 lakh shares or 1.86% stake in Jain Irrigation ltd as per the June ending quarter. Domestic institutional investors (DII) have increased their holding in the company to 14.71% & foreign institutional investors (FII) hiked their holding marginally to 39.52% from 39.14%. However, retail investors reduced it to 17.08% in the June quarter from 18.74%.
Read Motilal oswal fundamental report . Click here to get report MOTILAL OSWAL ON JAIN IRRIGATION
Who is Prof. Mankekar?
Professor Shivanand Shankar Mankekar, in his mid-50s, lives in Mumbai. But, Mankekar is no ordinary professor. Mankekar as per information teaches financial markets at Jamnalal Bajaj Institute of Management in Mumbai. He came in to limelight with his “Pantaloon investment in 2003. It is said to be early investor Pantaloons, has said to be given 100-times of his investment. His present successful Investment includes United Spirits is worth about Rs 500 crore. He has also significant holding in companies like Talwalkars health, and MT Educare , among others.
He is largest Retail investor in United sprite.
Read More about him & his portfolio – .
Learn how US Crude oil export expected to change its fundamental Dynamics
Read this interesting article on Global crude oil demand. This is a fundamental change in Crude oil demand & it is expected that US may increase the output in days to come and export from Middle East will reduce in days to come. Putting a summary for my reader -
The recent partial lifting of a ban on crude oil exports by the U.S. government has sparked ripples in major oil markets, as it has the potential to drastically change the flow of crude oil around the globe.
1) US crude oil exports could spark change in global oil market.
2) U.S. crude oil output is estimated to have jumped 16% year on year in May to 8.4 million barrels a day, the highest level in 26 years. But the massive volume of shale oil output is not necessarily processed smoothly into petroleum products.
3) The U.S. boosted the export of petroleum products and raised crude oil exports to Canada, which has been allowed as a special exclusion from the crude oil export ban. But these efforts have not done much to improve the supply-demand balance.
4) The export of these oil will probably will go to Europe as the region is suffering from light crude oil shortages due to the reduced production in Libya,
Under this scenario of the shale revolution dramatically changing the flow of crude oil around the globe, exports from the Middle East to North America and Europe will fall to zero by 2040
Budget – 2014-15 – Focus on Efficiency & Execution
NDA- II Budget FY2015
Budget FY2015 highlighted the new government’s rational approach towards policies for taxation, government spending and growth. Now the focus is back to Infrastructure, housing and finance sectors were amongst the biggest winners.
Most importantly, to us is the Fiscal prudence was maintained, sticking to a 4.1% fiscal deficit target. While the tax revenue assumptions may still be a bit on the optimistic side, but a key area where the budget math differed from the vote on account was in its assumption of higher non-tax receipts.
Few highlight -
Most of us loose money in trading. while 95% loose money and 5% makes money. Its true. Understand how to become 5% of the trader.
Trading 80:20 principal – Boosting profits
What is 80:20 Principal ?
The “Pareto principle” of the “80/20 rule” can be applied to the trading or speculation also. This principal is now applied successfully in business studies, sales, economy and many other theory. Now lets understand how how this 80: 20 rule can help you to optimize your trading and boost your profits.
As per wikipedia the Pareto principle is a a principle which emphasis that that, roughly 80% of the effects come from 20% of the causes. IT happens to our life or business even on trading. Just for example, in any business it may happen that the 80% of your sales come from 20% of your clients.
80:20 principal In trading (Speculation)
– See more at: http://www.einfomet.com/trading-8020-principal-boosting-profits/#sthash.jh7hymOg.dpuf
9 habit which make you reach – Read more at http://www.einfomet.com/9-daily-habits-rich-poor/