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My equity investments are in losses, what should I do?

My equity investments are in losses, what should I do?

When the markets are going down, the value of people’s market related investments like stocks, equity mutual funds and ULIPs also go down. This has probably been the case for most investors who started investing within the last 2 years and now see their investments in the red after the markets started their downturn sometime in 2018. So why have the such investments been disappointing lately and what should an investor do now? We’ll explain with the example of equity mutual funds. Markets work in cycles The answer, of course, is to deal with volatility. Over a period of 5 or 6 years, the returns are often great but the variability is high. In any given short period, you could face poor returns, or even losses. There's another way to look at it. The equity markets move in cycles, and often it takes five to seven years to go through ...
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PMS

PMS – What is it?

Portfolio Management Service (PMS), as offered by a large number of PMS companies, has a very concentrated portfolio consisting of about 20 high-conviction stocks (shares) managed in a very ‘hands-on’ manner by a professional portfolio manager. PMS surged in popularity last year after generating outstanding returns, much over the market indices and even most of the mutual funds, during that bull market (2017-18). However, they also fell equally fast when markets entered a bearish phase later in the year (2018). PMS almost always invest in small companies which have not been discovered by the general investing public - and that precisely is where the risk is. Such stocks are likely to go up hugely when markets go up but are also almost the first ones to fall down when the tide turns. Eg, one of the most popular PMS was down by about 50% last year-end when markets went down ...
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Trade your bank FDs for these Non-Convertible Debentures (NCDs) from a L&T Company

Dear Sir/Madam, L&T Finance Limited (L&TFL), an L&T (Larsen & Toubro) group company, is coming out with an offer of Secured Redeemable Non-Convertible Debenture (NCDs) Public issue offering very attractive rates of interest rates in the range of 8.89% - 9.35%. Who is it meant for? They are meant as a superior, higher interest bearing alternative to other safe investments like bank FDs, Post Office deposits and even most of the corporate FDs for a period ranging from 37 months – 120 months. Along with the high interest rates on offer, there is also the flexibility of choosing the frequency of interest payment in the form of monthly, annual and cumulative interest pay-outs. So, if you’re looking for a safe, high interest bearing and flexible FD, these NCDs by an L&T Group company could be a good alternative to your bank FDs. Further Details L&TFL is offering NCDs with a face ...
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Financial Question And Answer

Do these financial googlies worry you too as an Armed Forces Officer?-4

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9th Jan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 days ...
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Financial Question And Answer Sessions

Do these financial googlies worry you too as an Armed Forces Officer?-3

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9th Jan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 days ...
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Financial Question Sessions

Do these financial googlies also worry you as an Armed Forces Officer?-2

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9thJan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 days. This one ...
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Do these financial googlies also worry you as an Armed Forces Officer?-1

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9 th Jan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 ...
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Safe Investment Avenue

Want higher rate of interest without compromising on safety?

When it comes to safe investments, most Armed forces officers don’t look past DSOPF (if serving), PPF or bank FDs. They derive comfort from the fact that these are extremely safe fixed income investments. However, these avenues have many shortcomings – DSOPF has a low return, PPF has a low return combined with the restrictions of withdrawal as also the yearly investment capped at Rs 1.5 Lakhs only, and the bank FDs actually erode the purchasing power of your money post-tax which is unavoidable. If you take a bank FD rate of interest to be 7% today and you are in 30% tax-bracket, you actually get just 4.9% on the FD after taxations, which is far less than India’s long-term inflation rate of 7%. Hence, while cost of things gallop at 7%, your money continues to sleep at 4.9%.  This is where good alternate investment avenues come in, which provide ...
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Infrastructure Leasing & Financial Services

IL&FS – What is the problem

What happened? IL&FS Group, a vast conglomerate that funds infrastructure projects across the world’s fastest-growing major economy ,ie, India, sent waves through Indian credit markets when it began missing debt repayments. What is IL&FS? Infrastructure Leasing & Financial Services Ltd (IL&FS) is a more than 30 years old conglomerate. The company has been a pioneer of public-private partnerships, with a portfolio of about 13,100 kilometres of roads and other assets. Major shareholders include India’s largest insurer LIC, its biggest lender State Bank of India and Japan’s Orix Corp. On credit quality, IL&FS group’s debt securities always looked good. The rating for IL&FS Financial Services Ltd was reaffirmed A1+ (top most rating—highest probability of repayment) before the crisis surfaced in August 2018. What happened to IL&FS? IL&FS would take a short-term financing loan and provide long term funding to projects. This, over a period of time, created pressure in the company ...
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Writing of Will and A sample format by Hum Fauji Initiatives

We have amended the format of Will which we had been sending to you and to our Financial Planning clients. We have made it in a word format so that you can edit it as you deem fit to suit your requirements. Also, we neither have, nor intend to have a copyright to this format - hence, you can freely distribute this format to anybody whom you wish to benefit. The format should largely meet the requirements of most of the families and may not require any major changes in most cases. Please remember that there is no fixed format of a Will and it can be written in a manner that you find best suited to you. However, there are certain guiding points which you may find useful while preparing this important document:- You need to be at least 21 years old to write a Will. Do use the ...
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