| Difference Between Core Inflation and Headline Inflation Posted: 26 Mar 2013 05:06 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) John is assigned the job of a coach of the school cricket team. For the next few days, he ascertains the strength and weakness of each player. He realizes that there is one player in the team called Sam whose performance is very erratic. Though talented, he experiences severe mood swings. On certain days when he is charged up, his performance is exceptional and he can change the outcome of a match. However, on other days when his game is lackluster, the team's performance is markedly mediocre.
While John does not like the mood swings of his key player, he has to select him most of the time because of his exceptional skills. However, when asked by the school board about the overall performance of the team, he chooses to exclude Sam while calculating team's performance as a whole. This is because the volatility of his performance would paint an incorrect picture about the performance of the team as a whole. In a good quarter when Sam has been at his best, the overall performance of the team would look brilliant while in another quarter where Sam was lackluster, it could look dismal.
Headline inflation and Core inflation are two concepts which are very similar to the above situation. While Headline inflation judges the increase in prices over a year of a basket of goods, this basket contains products which are like Sam i.e. volatile in terms of their individual prices. So to get a better understanding of inflation, just as John removed Sam for the purpose of calculating team's performance, similarly, volatile products are removed from the basket that determines Headline Inflation. And once these volatile products are removed, the remaining products give a better estimate of the overall inflation trend in the country. This is known as Core Inflation. Crude oil is one such product which displays price swings based on global economic conditions that are beyond the control of local policymakers.
Trust the above story has explained the difference between Core Inflation and Headline Inflation. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving) Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications These Application Forms can be used for buying regular mutual funds also Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) - ICICI Prudential Tax PlanInvest Online
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| Why did the Dividend Distribution Tax (DDT) is increased? Posted: 26 Mar 2013 04:01 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Why did the finance minister raise the DDT? To mobilise deposits, banks had asked the finance minister to provide better tax treatment to bank fixed deposits (ie, increase the limit of TDS from 10,000, make bank interest tax-free in the hands of investors, etc). Instead, the finance minister has increased the DDT on all non-equity funds. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving) Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications These Application Forms can be used for buying regular mutual funds also Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) - ICICI Prudential Tax PlanInvest Online
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| Investing in Stocks Posted: 26 Mar 2013 01:58 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Under most circumstances, investors are better off investing in mutual funds where they get the advantage of diversification and expert fund management. With a limited amount of money, it is difficult for most investors to build an adequately diversified portfolio of stocks. Moreover, most investors lack the knowledge and expertise required for stock selection. Expert fund management also calls for access to a database of companies (annual subscription to which costs about Rs 75,000 per year). Moreover, fund managers at mutual funds have access to company management. They speak to them regularly and are the first to know about a development, positive or negative, at a company. If you are keen on investing in stocks, set aside a small sum of money (apart from what you invest in other investment instruments) for investing in stocks. Look up the stock's vital statistics: growth in revenue, operating profits and profit after tax over the last three to five years. Check out its level of debt (shouldn't be too high). Check out return ratios such as return on equity and return on capital employed. Choose a stock that has the better numbers. Furthermore, make sure that the stock you are considering is available at an attractive valuation (low PE, PB, and PEG).
All the above checks establish the stock's track record. Next, go through its annual report (particularly management analysis). Finally, lay your hands on a few recent reports issued by brokerage houses on that stock. Together with the annual report, these brokerage-house reports will give you a good sense of whether the stock enjoys sound prospects. Only if all is well should you invest in the stock with a horizon of at least three to five years. Every six months, check to ensure that all is well with the stock. As you can see from the above, investing in stocks requires time and effort. It should only be undertaken if you have the required knowledge, expertise and time
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving) Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications These Application Forms can be used for buying regular mutual funds also Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) - ICICI Prudential Tax PlanInvest Online
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- DSP BlackRock Tax Saver FundInvest Online
- Reliance Tax Saver (ELSS) FundInvest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) FundInvest Online
- SBI Magnum Tax Gain Scheme 1993Invest Online
- Sundaram Tax SaverInvest Online
- Edelweiss ELSS Invest Online
------------------ Best Performing Mutual Funds - Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFundsInvest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
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