What is the first thought that strikes our mind when we come across names such as Enron and Satyam Computers? The only thing we remember about these two completely different companies is their involvement in accounting frauds. Why is it that most of the so called intelligent Wall Street investment experts and the retail investors failed to smell the rat? The only possible reason could be utter negligence to the quality of the earnings posted by such tainted companies. Now, let’s try to understand what is meant by “Quality of earnings” and how the firms can manipulate the numbers to positively surprise the markets positively. Why go so far into the history to find a case? Recently (in 2008), Jet Airways changed its depreciation accounting method to artificially boost its profits. It is rightly said that don’t judge a book by its cover. As retail investors, it is very important […]Read more
The quarter ending December 2012 looked up to the Government for some major reforms through its Union Budget for FY13-14, to address the macro problems affecting the economic growth of the country, such as slow investment growth, high inflation and rising current account deficit.
Capital intensive sectors took a hit on the back of sluggish construction activity and slowdown in order inflow, while companies in the defensive sectors outperformed.
In this backdrop, let’s look at how the Nifty 50 companies performed in Q3 of FY12-13? Has the market overvalued or undervalued Nifty vis-à-vis its MRP, and, what should investors do?
Let’s find out…Read more
Over the last 2-3 years, we have seen the economy riding a roller coaster, offering less foresight, and more structural distortions. In such a scenario, are factors like rising inflation & mis-selling by financial institutions shaking the retail investors’ confidence? Are they being driven to gold and real estate as preferred investment avenues rather than to sensible equity investing which could manifold their existing returns?
The budget provides the government with an important platform to introduce constructive reforms. So, could the FM, through the forthcoming Union Budget 2013, have anything in store to bring investor confidence back to the Indian Stock Market? Let’s find out…Read more
In our last week’s article on new pension scheme, we told you what an NPS account is, what its key features are and how it works.
But, is it better than other retirement schemes? Does it provide better returns? What are its disadvantages? Let’s find out in this article…Read more
You may be aware of the young average age of the Indian population, with more than 50% being between the age of 25-50. By 2050, most of them would be approaching their retirement. Moreover, with improving life expectancy, tomorrow’s retirees will need to accumulate a bigger corpus for their sunset years. The way to ensure this is good retirement planning.
So, have you planned for your retirement yet? If not, lets learn about an instrument that helps you plan your retirement in a disciplined manner, along with the provision of tax benefits i.e. NPS. Read on for more…Read more