First Rediff brought this in Business Column. Next it came on again after a couple of days. Now it occupies "headlines" - maybe Rediff is desperate about getting some attention to this article !!
in india, we had one type of instruments called secured debentures. this was one of the biggest frauds of modern india.
theoretically, the debentures were secured against some XYZ property of the company, but, the type of bas**rds that the company promoters we have, never paid back secured debentures if they did not want to. there would be some theoretical trustees for the instruments and they would charge a fee , but would do nothing.
i have never heard of anyone getting money of their secured debentures back if the company went into default.
Transparency is the best route to risk management. Historical information may not be relevant for an investment. NPV and IRR are not presented as routinely as they should. Sensitivity profiles are hidden from public views. The Balanced Scorecard of Kaplan and Norton needs more exposure as a measure of business appraisal.
Though investors have many options and the author of this article has tried to evaluate all options I feel that practically speaking, it is mainly share market / equities that occupies centre stage. Most people invest in stocks and few people opt for the other categories. Hence in times of a bear market you find more people affected as far as India is concerned simply because of the fascination we have for stocks. We certainly need more experts to offer whatever guidance they can on the stock market.
I feel the author could have added one more category on the liquidity options - apart from cash, G-Sec, bank current account, the author could have liquid funds to this category. They are excellent in terms of liquidity as well as returns and with high safety levels as well.
RE:LIQUIDITY
by Anup Saxena on Jun 28, 2008 03:30 PM Permalink
Quite true for physical Gold. Even lot of jewelers refuse to buy old Gold ornaments altogether (even those they themselves sold sometime back coz the crooks know it was of lower karatage than they claimed while selling!).
The exception is Gold ETFs. Try those. They have fairly good liquidity. They are backed by physical Gold (their value varies with Gold market price) and are traded like stocks.
RE:ULIP as a good investment choice
by prasad sawant on Jun 24, 2008 02:31 PM Permalink
DONT INVEST IN ULIP THEY CHARGED A LOT FOR INVESTING YOUR MONEY
RE:RE:ULIP as a good investment choice
by prasad sawant on Jun 24, 2008 02:45 PM Permalink
DONT INVEST IN ULIP All these agents get hire comissing for fulling people invest in mutual fund directly u will get higher returns
RE:RE:RE:ULIP as a good investment choice
by rajendra rohra on Jun 24, 2008 04:02 PM Permalink
all life insurance scheme fool people while agents get 5per or more commission (i.e.yearly interest)and enjoy while talking how they fooled the investor.
