World Of Finance

        World of Finance by M.Vijaya Sai Credit risk is an investor's risk of loss arising from a borrower who does not make payments as promised. Such an event is called a default. Another term for credit risk is default risk. Investor losses include lost principal and interest, decreased cash flow, and increased collection costs, which arise in a number of circumstances: A consumer does not make a payment due on a mortgage loan, credit card, line of credit, or other loan. A business does not make a payment due on a mortgage, credit card, line of credit, or other loan A business or consumer does not pay a trade invoice when due A business does not pay an employee's earned wages when due A business or government bond issuer does not make a payment on a coupon or principal payment when due An insolvent insurance company does not pay a policy obligation An insolvent bank won't return funds to a depositor A government grants bankruptcy protection to an insolvent consumer

        World of Finance by M.Vijaya Sai According to Union Budget 2010-11, a few changes have been made in Income Tax Saving Schemes structure. Here is a glimpse to new additions in tax saving methods : The relaxation limit under section 80C has been inceased to Rs. 2 lakhs. The presumptive tax limit has also been raised to Rs 60 lacs. Announcement of a deduction of Rs 20000 on investment in infra bonds In India, the middle class feels the heat of Income Tax more than anyone else. However the intensified tax system poses great stress on the earner's thinking to manipulate different ways to save tax. Here is a list of certain steps which can help you save your income and minimize your Income Tax. House Rent Allowance Applicable If A portion of your salary is marked as House Rent Allowance or HRA You are paying rent of your house Conditions The house should not be in your kids, spouses or your own name. Max Deductions The total amount of rent paid

        World of Finance by M.Vijaya Sai A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Formation of business strategy largely dependent upon the factors such as long-term goals and risk on the investment. As the return on investment is not always clear, so the investors prepare the strategy so as to face the ongoing challenges in investment. A balanced investment strategy is generally required in the process of investment, which possesses long time period and some risk tolerance. In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An efficient strategy can be obtained from portfolio theory, which shows good estimates on risk and return. Investment Strategy is usually considered to be more of a branch of finance than economics. It is defined as set of rules, a definite behavior or procedure guiding an inv

        World of Finance by M.Vijaya Sai FINANCIAL planning. If that word is a put off, don't let it be. It's the all important word in your money dictionary. Here, we simplify it for you. Start with Step 1 - Put your finances in order We spend more than half our lives working and saving, but hardly spend any time planning on how to put that hard-earned money to work more effectively. So, how do you plan your financial life? Put your (financial) house in order Financial planning starts with a review of your overall financial profile, and not at investing. Before rushing to build an investment portfolio, you need to address the following issues: Insure your health, life and assets Start by protecting your family's current lifestyle against events/ expenses beyond your control. Buy appropriate insurance policies for your medical expenses, life, car, and other important assets. Repay high-cost loans Paying credit card bills on time can save yo

        World of Finance by M.Vijaya Sai The process of reforms as part of liberalization has resulted in greater investment in Indian economy. Government policies have become investment friendly and paper work reduced. The capital markets have also been able to receive huge inflow of funds. The Indian economy today is ready to face the competition from overseas market and International investors see India has a potential market for excellent return on investment. Policy Changes Industrial Policy The Indian government has ushered in a policy of reforms to bring about accelerated economic growth. The government has removed the requisition of industrial license except for certain sectors, simplified the procedure for investment and opened the market for foreign technology. Industrial Licensing The following industries require Industrial license. Public Sector enterprises. Industries retained under compulsory licensing. Manufacturing of products reser

        World of Finance by M.Vijaya Sai The basic needs of man are food, clothing, shelter and entertainment. Today, most of us have graduated from needs to luxuries. When the newspaper headlines were screaming inflation at 11.9 per cent, it became a topic of worry. Today, the challenges are not just high standard of living, high commodity prices, it's job loss too.  How do you deal with meeting your basic requirements with less means to buy them? While eating just one meal a day is good for Yogis and is a nice way to cut down costs, that is not what I'm suggesting. Instead, Try something simpler. 1. Eat at home Eating out can be expensive. If you are spending Rs 200 on eating out compared to Rs 50 at home, you would be surprised to know the kind of amount you are spending. A systematic investment plan of Rs 150 (200-50) a day saved for 30 years can give you returns in excess of Rs 5 crore! 2. Know what you are buying Plan your shopping. If y

        World of Finance by M.Vijaya Sai Round one in the unseemly quarrel between two financial regulators — the Securities and Exchange Board of India, or Sebi, and the Insurance Regulatory and Development Authority of India, or IRDA — on who should supervise ULIPs (unit-linked insurance plans), has gone to IRDA. The government has brokered a temporary truce, leaving the matter to be settled in court. But, for IRDA, it may turn out to be a case of winning a battle but losing the war. The debate is whether ULIPs, which are nothing but mutual fund schemes with the added protection of an insurance cover, should be regulated by Sebi or by IRDA. Sebi, the capital markets regulator, has pointed out that the attributes of ULIPs are very different from traditional insurance products, which is correct. But barring 14 insurance companies from selling ULIPs, was — to say the least — a hasty and thoughtless move on Sebi’s part, and could have created panic am