Loyalty addition in Life Insurance

Loyalty addition in Life Insurance is a relatively new term but somewhat similar feature. Unit linked Insurance policies used to be the hottest life insurance products till last year. In fact they were on par with mutual funds. But they way these policies were structured and sold use to create a lot of controversies. They were insurance products but were sold as investment products and in the backside, loaded with the charges. Insurance regulatory and development authority of India took many steps to control it. And finally when it changed the entire structure of unit linked insurance policies, it almost ended the sale of ULIP policies in India. It was a huge set back for these mushrooming life insurance companies which were getting 80 to 85 per cent of their business from these policies.

Loyalty addition in Life Insurance represent a huge change in the approach of Life Insurance companies in India. Life Insurance till last year was more about selling ULIP policies and less about servicing those policies. IRDA bought massive changes in order to restore sanity in the Life Insurance Industry. They structured the product in such a way where servicing a policy became as important as selling it.

Loyalty addition in Life Insurance basically represent this shift. It is a kind of bonus which is given to the policy holder for encourage a policy holder to remain invested in the policy. It is basically awarded as percentage of annual premium. It could vary with company to company and policy to policy. It could be something like 5 per cent of the annual premium. It is either paid at the policy maturity along with the maturity benefit or at regular intervals like every 3 or 5 years.

Loyality addition in Life Insurance is to ensure that insured is continuously remain invested in the policy. Loyalty additions are being offered on most of the life insurance policies currently available in the market like Unit Linked Insurance policies (ULIPs) as well as endowment policies. But that doesn’t mean that investors should stop looking at other features of the product like charges and get carried away.

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HDFC Gold Mutual Fund

HDFC Gold Mutual Fund are the newer products in comparison of many other financial instruments. Gold has been shining for very long time now. In last five years, gold has delivered very good return. Gold has been traditionally used as ornaments, they are still widely used as ornaments in rings, chain etc. India is one of the biggest consumer of gold. But in the last few years, with the constant turbulence and volatility in the stock market, Gold is gradually pulling more and more investors everyday.

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Sensex of India in Short Term

Sensex of India in Short Term will remain volatile. Currently it is trading at 15792.41 and experts opinion is that it may further fall from here. Nifty is currently trading 4751.30. This is a tough phase for most of the stock markets in world and for many countries in Europe and USA. Indian stock markets have performed fairly well in 2011 but Sensex of India have bombed in 2011. Since the beginning of the year, Sensex and Nifty have lost lot of weight which they have put on in 2011.

Sensex of India in short term is a reflection of state of the Indian Economy. Indian economy is also currently struggling to maintain its pace. Indian GDP is going to be bit less than expectation. By the end of last year, Sensex of India was nearly touching 20000 mark and there was lot of hysteria around it. Most of the stock were overvalued and buying them at stage would have been fundamentally incorrect choice. Now Sensex of India have fallen consistently for last 8-10 months and they are at a level where investors can start taking their position based upon their long term goals.

Sensex of India in short term is expected to loose 8-10 per cent from here and so as Nifty. So one should look at the long term investing strategy and design the investment portfolio in such a way that it can compensate for that 8-10 per cent fall from here. Trading in equity is more about profit and loss than over or under value of the stock market.  Therefore one should invest systematically at this point so that if Sensex of India falls from here then you can take the advantage of that for averaging.

This is a ideal time to start fresh buying with a long term investment goal. Many quality stocks are available at the cheaper prices and as stock markets are expected to fall further, they are going to be available at even better prices. So make a list of few good stocks which you know well and want to buy and start putting your money systematically into them.

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ICICI Bank Long term stock solution

ICICI Bank is our pick for the long term. ICICI bank limited is the second largest financial services company in India. ICICI Bank has 2,533 branches,6,800 ATMs in India and has a presence in 19 countries, including India. Other than India  they operate in United Kingdom, Russia, Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Center. They also have branches in Belgium and Germany.

ICICI Bank has been doing well in Life and Non-Life Insurance business as well. ICICI Bank is one of most aggressive player in the banking sector and their presence in smaller cities put them in a perfect position to benefit from the growth in smaller cities and town. At the moment, stock markets across the world are going through lot of turbulence. India has been suffering from domestic unstable political situation and high inflation rate. As a result, Indian stock markets have  lost lot of unwanted fat in last 6-8 months.

ICICI bank has also lost considerable amount from its 52 week peak and is currently trading at 839.10 at NSE. It’s 52 week high is 1279. Indian long term growth story is still intact and the biggest beneficiary of that growth would be Indian Banks, especially bigger banks. ICICI bank is in a very good position to take advantage of that.

ICICI bank has also gone through lot of changes in last few years. It has taken lot of steps to improve its NPA. Their last quarter results were also in line with the expectations and considering the given scenario, they cannot be considered bad. Currently ICICI bank is in downtrend and if its fall from here which seems to be the case in current market situation, it may slide further in the short run. But it is still a very good company to bet for long term.

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HDFC Top 200

HDFC  Top 200  is one of the pioneer among equity mutual fund India. Those who don’t know, it is a open ended mid and large cap equity mutual fund offered by HDFC group. It has earned lot of good name through its performance in last few years. Stock markets have been going bizarre. They will rise for few hundred point one day and fall another day. In a situation when markets are consistently rising and falling, investors are always in tizzy.

HDFC Top 200 is an ideal solution for investors who are looking good return yielding, reliable and sustainable fund. The biggest dilemma for investors in these kind of market situation is that when they invest markets falls and when they withdraw, it rises. So to make sure that you don’t loose your capital and at the same time can generate good returns over a particular period of time, HDFC Top 200 act as a very good investment fund.

HDFC Top 200 is one of the best equity mutual fund available in India among funds targeting primarily large and mid cap segment. It was launch in september 1996 (G OPTION). Its net asset stands at Rs 10,507.61 crore as of  30/06/11(G OPTION). HDFC Top 200 0ffers better returns with comparatively lesser risk in comparison to many other funds available in the same category.

HDFC Top 200’s latest nav is 190.305  as  of 29/09/11 (G OPTION). Investment in stock through mutual fund can be extremely beneficiary for investors who do not want to take risk on their initial investment. HDFC Top 200 is a very good investment fund for them. HDFC Top 200 fund mainly consist of large cap funds. It help this fund in mitigating their risk in volatile market conditions.

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Reliance Ind Share Review

Reliance Industries is one of the biggest private company of India. It is still the kingmaker as far as long term trend of Indian stock markets are concerned. One can’t expect Indian share markets to do better in long term without support of Reliance Industries. Reliance Industries has been trading in the lower region for last few months and it has been quite range bound.

Reliance Industries’s market capitalization for the fiscal year ending March 2011 stood at massive 76.9 billion dollars. It primary deals in Oil & Gas, Petrochemicals, Petroleum, Polyester, Textiles, Retail, Insurance and SEZ. Since last year Reliance Industries share has been not performing as per the investors and experts expectation.

Reliance Industry touched Rs 1111.30 at NSE on November 8,2010. Since then it has been falling consistently. Its last 52 week trading range has been 712.00 – 1,124.90. It is currently trading at Rs 797.20 at NSE. Long term investors can still go for it. For a investment term of 2-3 years, Reliance Industries seem to be a good stock at current levels, but short term outlook remain negative.

Charts indicate that stock has still got some weakness, it is not suitable for the current market situations. But to reassert, it is at a good level for the long term investors so anyone with a time frame of 2-3 years of higher can still go for it. It may break further from here, but those levels can be used to increase the quantity.

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TIJARIA POLYPIPES LIMITED IPO

TIJARIA POLYPIPES LIMITED IPO:

Issue Open: September 27, 2011
Issue close: September 29, 2011
Price Band: Rs. 60 – Rs. 60 Per Equity Share
Minimum Bid Size: 100 Equity Shares
Face Value: Rs. 10 Per Equity Share
Issue Type: Fixed Price
Maximum Subscription Amount  for Retail Investor: Rs. 200000

 

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M AND B SWITCHGEARS LIMITED IPO

M AND B SWITCHGEARS LIMITED IPO

Issue Open: September 28, 2011
Issue close: October 05, 2011
Price Band: Rs. 180 – Rs. 186 Per Equity Share
Minimum Bid Size: 30 Equity Shares
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amount  for Retail Investor: Rs. 200000

 

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FLEXITUFF INTERNATIONAL LIMITED IPO

FLEXITUFF INTERNATIONAL LIMITED IPO

Issue Open: September 29, 2011
Issue close: October 05, 2011
Price Band: Rs. 145 – Rs. 155 Per Equity Share
Minimum Bid Size: 40 Equity Shares
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amount  for Retail Investor: Rs. 200000

 

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Stock for long term- SBI

Stock for long term- SBI is one of the best stock to be in anyone’s portfolio for long term investment objective. State bank of india is the biggest bank in Indian banking sector and it is still one of the most trusted bank as well. In the last few years, SBI has also revamped its customer service and banking practices to accommodate itself in the rising competition from the private sector banks. SBI had got biggest network in the country and it is still the choice for many banking customers. it is ideal stock for long term.

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SWAJAS AIR CHARTERS LIMITED IPO

SWAJAS AIR CHARTERS LIMITED IPO:

Issue Open: September 26, 2011
Issue close: September 28, 2011
Price Band: Rs. 90 – Rs. 100 Per Equity Share
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amount  for Retail Investor: Rs. 200000

 

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Short term funds

Short Term Funds are the key to success in current market scenario. Short term funds have delivery good returns for short term and they extremely good for parking your money in turbulent situation like this. Stock markets have gone crazy and are behaving in a way where it has become extremely difficult to predict their next moves. Short term future for stock market is not yet clear but chances of going down are much high than going up.

Short term funds act as a wallet and they not only help in parking money for short term, but also generate good returns to compensate. In fact, they are gradually becoming the flavor of the month. More and more investors are getting interested in them. Short term debt funds extremely good for these kind of situations.

Short term funds are imperative for investors who do not want to take much risk on their investment and at the same time are looking for some returns as well. Debt funds performance has been good and they will continue to perform well in the future also. When market is susceptible to move in any direction, Short term debt funds work better than even balance funds and short term bonds. Short term debt fund is a fund which invest in short-term debt instruments of high quality and low risk that mature in approximately 15 to 18 months and is best for investors with 1 to 2 years of investment horizon.

We have shortlisted some of the best short term debt funds. They have performed very well in the past and are extremely good for investors with less risk appetite. In fact, given current conditions, they are suitable for most of the investors. Current market conditions are good for traders who understand technical stock analysis and are comfortable with charts, patterns, indicators and trends.

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