Category Archives: Business
SUBSIDY FOR EDUCATIONAL LOAN
Educational Loan facility is started by Central Government for students from financially backward families. They even started giving interest subsidy for educational loan in the year 2009-10. Not many know about interest reduction from the central government.
Interest subsidy is applicable for students from families whose yearly income is less than 4.5lakhs INR. Interest reduction is given to the loan taken in between April 2009 and March 2010. Any loan taken before this period will get interest for amount of rupees paid to the bank.
Central Ministry for Human Resource selected Canara Bank as Nodal Agency. Subsidy can be received from any bank registered under Indian bank association. Subsidy is given to all loan taken in between 2009-10 bank year. Application should be given to the bank from which loan was taken. Those banks collect application and are given to Canara Bank.
Educational Loan is given to those students who are studying for technical/professional courses after 12th standard. Subsidy is given to students from families having yearly income less than Rs4.5lakhs. In Kerala income certificate from village officers is taken as a proof. Some banks have their own forms for income certificate.
Interest reduction is given to Educational Loans in moratorium period. Moratorium period means one year after course completion or 6 months after getting job which comes first.
Details about Educational Loan and Subsidy are given in website of Central Ministry of Human Resources.
http://www.education.nic.in/scholarship/IBAM.pdf
http://education.nic.in/uhe/Eduloan-IBN.pdf
Priority credit section of Canara bank at Bangalore is coordinating the loan subsidy action. (Priority credit section, pc wing, Canara Bank, head office, no.112, JC road, banglore-560002; hopcs@canbank.co.in)
Different types of Stock Market Investing
Value investing
This is one of the techniques used by some investors and even portfolio managers. It is the technique of finding the inner worth of companies. The people who follow this technique is called value investors. They are creating wealth through this method. Warren Buffet, the world famous investor and Rakesh Jhunjhunwala, the chairman of Aptech ltd used value investing as a successful investing technique. The value investors find the real worth of a company according to income, value, and the sales of a particular company. If this stock is available below the inner value, they will buy the stock. The management of the company will be scanned by these people. They make a lot of money through this method. According to Value investing, you don’t need to predict the Sensex or Nifty in tomorrow and the day after tomorrow. You just watch your company’s performance and how your company reacts in the difficult market conditions. Many of the investors are confused to find the inner value of companies. It is the real challenge in front of the value investor. This problem can be remedied by the analyzing of the current PE and expected PE.
Growth investing
The base of this method is finding growth businesses. There will be businesses in front of us with great potential. It is the big challenge of the investor to find the good businesses. Wind energy, hospitals, Pharmaceuticals and education are examples for growth businesses. Thomas Rowe Price an American investor known as the father of growth investing. The growth investors who seek the profit which a company is going to earn in future. They are not worried by the current situation of a company.
Technical investing
The technical investors are the fans of support and resistance levels. Majority of the technical investors are short term players. They make profit by utilizing the variation of a particular stock. They predict the future stock prices by the price, momentum and volume of a particular stock. They use different techniques like Moving averages, Fibonacci retracement levels and Relative strength index. Technical investors are very cautious about their stop loss. They are not interested on the long term benefits by a company. Majority of them are the broking house visitors. They are ready to book loss in the different market condition. They are do or die kind of investors.
Idea Launches 3G services in Kerala
- Idea 3G
Idea launches 3G service in Kerala. Initially they have launched the 3G service in 7 districts only, later Idea will extend the service to the other districts also. Gold Standard 3G Service of Idea will be first available in Ernakulam, Kozhikode, Malappuram, Thrissur, Alapuzha, Kollam and Pathanamthitta districts. Inauguration of 3G service is done by Deputy Managing Director Amberish Jain and Kerala Circle Chief Operating Officer B. Ramakrishnan. Idea Cellular Ltd. is the largest mobile service provider in Kerala.
From Idea 3G video conferencing, mobile TV, Video on Demand and High Speed Internet will be available. Time Based Billing plan is given to 3G service to reduce bill amount. Idea has started 3G services in Madhya Pradesh, Gujarat, Himachal Pradesh, Maharashtra, Harayana and U.P. Idea got the 3G license in 11 circles in India.
The service will be available in Kozhikode town, Payyoli, Koyilandi, Faroqe, Bapoor, Mallapuram, Kottakkal, Vengara, Parappanagady, Thrissur town, Ollur, Mannathy, Chettur, Amalanagar, Kochi, Fort Kochi, Trippunithara, Kalamasherry, Aluva, Alappuzha, Cherthala, Adoor, Kottarakkara and Punalur in the above districts. At the end of this year the service will be available in 175 towns across Kerala. At the end 2012 it will be available in 1215 places around Kerala.
Three other Mobile providers already launched the 3G services in Kerala. BSNL 3G is the 1st one launched in Kerala. Tata Docomo and Aircel are the two other mobile providers already launched the 3G services in Kerala.
Investment Style of Warren Buffett
Power of long term investment
warren buffett
“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years”. It s the words by the great American investor named Warren Buffet. According to Forbes magazine, he is the 3rd richest man in the world.
Majority people have no idea to create wealth through stock markets. They are just wasting their time before the computer in the broking house. They just want to know the support and
resistance levels of the market. They just want to become rich within one day. They are in the mood to select vegetables in the super markets. They are looking on their stop loss. They are spending their time to predict about the stock market movements in the coming week. It is clear that they are losing their money.
Day trading is a foolish strategy to make money. According to warren Buffet, Derivatives are financial weapons of mass destruction. It proves 90% of the traders losing their money. Is there any hope for those people who are wasting their valuable time before the computer by sharing their tragedies with the fellow traders?
These are some ideas which should be the backbone of your investment.
1 Think long term
It is not possible for a child to grow 50 years within 5 years. Every process has its own time. It is the law of nature. Don’t overtake that. If you study, how the great investors like Buffet made money, it is the result of long term patience.
2 Use dips to buy
It is a challenging world. There will be recessions, tsunami, earthquakes, and other natural calamities. But it is not a reason to stay away from stock markets. For example, the recent Tsunami and earth quake in Japan threatens majority investors. 20th century witnessed two big wars, and many natural calamities. But Dow Jones rose from 66 to 12000. It proves no natural calamities can make long term impacts in the stock market. It is not possible to live more than 100 years, but the stock market will be forever up to the world. So stay invested.
3 Be patient
If you are not ready to hold a stock more than 10 years, just stay away from stock market. It is not a good place for you.
New Income Tax Slabs
It is because of the increasing inflation Pranab Mukherjee increased the limit of tax less income from Rs 180000 from Rs 160000. It is a relief to tax payers in India. They can gain Rs 2000 from the next financial year. But if it is calculated in the ground of increasing inflation, it is not a big one. It is expected that the Tax less income will be Rs 200000 when the implementation of Direct Tax Code in 2012 – 13.
The income between Rs 180000 and 500000 has to give 10% tax and the income between Rs 500000 to Rs 800000 is 20% and 30% for the income above Rs 800000. There is no change in the Tax less amount for women. It stands Rs 190000. The definition of senior citizen has been changed to above 80 from above 65.Tax less income of senior citizens has been changed to Rs 250000 from Rs 240000.Thre are special concessions to the people above 80 years. They do not have to pay tax up to Rs 500000.
There was an amendment in tax relief to the people who invested in the new pension scheme. There was tax relief to both the employer and the employee in the new pension scheme earlier. But now it is only for the employee. No tax relief will be got to the investment by the employer. According to FM, direct tax code will be implemented in 2012 – 13. Then many of the current Tax relieves will be ended. For example Tax relives five year post office fixed deposits, Pension plans in the mutual funds, unit linked insurance plans, Equity linked savings schemes in mutual funds, and senior citizen saving schemes.
Tax Slabs
Men up to 60 years
| Tax | 2010 – 11 | 2011 – 12 |
| Nil | 1.6 Lakhs | 1.8 Lakhs |
| 10% | 1.6 – 5 Lakhs | 1.8 – 5 Lakhs |
| 20% | 5 – 8 Lakhs | 5 – 8 Lakhs |
| 30% | Above 8 Lakhs | Above 8 Lakhs |
Women up to 60 years
| Tax | 2010 –11 | 2011 – 12 |
| Nil | 1.9 Lakhs | 1.9 Lakhs |
| 10% | 1.9 – 5 Lakhs | 1.9 – 5 Lakhs |
| 20% | 5 – 8 Lakhs | 5 – 8 Lakhs |
| 30% | Above 8 Lakhs | Above 8 Lakhs |
60 – 80 years
| Tax | 2010 – 11 | 2011 – 12 |
| Nil | 2.4 Lakhs | 2.5 Lakhs |
| 10% | 1.9 – 5 Lakhs | 1.9 – 5 Lakhs |
| 20% | 5 – 8 Lakhs | 5 – 8 Lakhs |
| 30% | Above 8 Lakhs | Above 8 Lakhs |
Above 80 years
| Tax | 2010 – 11 | 2011 – 12 |
| Nil | 2.4 Lakhs | 5 Lakhs |
| 10% | 1.9 – 5 Lakhs | 1.9 – 5 Lakhs |
| 20% | 5 – 8 Lakhs | 5 – 8 Lakhs |
| 30% | Above 8 Lakhs | Above 8 Lakhs |
New Kotak Classic Opportunities Fund
- Kotak Funds
It is a ULIP plan in which one can join up to 65 years. In this policy the method of payment can be chosen by the investors. Four options are annually, half yearly, quarterly, and monthly. There is minimum premium for monthly is Rs 5000, half yearly Rs 15000, quarterly Rs 30000, annually Rs 50000. Sum assured for Entry age of less than 45 yrs: Minimum – Higher of (10 X Annual premium) or (0.5 X Policy Term X annual premium). Sum assured for Entry age of 45 yrs and above: Minimum – Higher of (7 X Annual premium) or (0.25 X Policy Term X Annual premium). The maximum sum assured will be 25 x Annual premium. Top up option is available in this fund. Top up starts from 10000 and the maximum of the ten times of the premium.
Minimum maturity age in this policy is 18 and maximum maturity age in this policy is 75. In this policy partial withdrawals can be done from the sixth year. If there is a situation where you cannot continue with this policy, you can discontinue from sixth year without any discontinuance charges. You will have switching opportunity in this policy. You can alter your sum assured with certain conditions. Loan facility is also available with some conditions.
There will be premium allocation charges in this policy. One year premium charges: If your premium amount is between 99000 to 499999 , 5% for one year , 3% for 2-5 years and 1.5% from 6th year. If your premium is in between 500000 and 2499999, 4% for one year, 3% for 2-5 years, and 1.5% from 6th year. If your premium is from 2500000, 2% for 1-5 years and 1.5% from 6th year.
Policy Administration Charges
The administration charges will be the percentage of annual premium and will be charged monthly by the cancellation of their units. It will be applicable up to the end of the policy term, not for the top up premiums. If the premium is between 99999 and 499999, the charge will be 0.2% per month, if the premium is between 500000 and 999999, the charge will be 0.1% and the premium is above 1000000, there will not be any charges. These charges will not exceed 500 per month. There will 1.35% annual fund management charges on NAV. That will be deducted on a daily basis. Rs 500 will be deducted for switching after 12 free switches in a policy year.
Honda Launched CBR250R In India
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- CBR250R
Honda launched a 250cc bike CBR250R in India. The booking of CBR has already started in January itself and got a booking of about 3000. CBR is designed for all kind of riders, from beginners to experienced riders.
A 250cc, 4 stroke, DOHC, 4 valve liquid cooled engine given to CBR by Honda. Produce an output of about 25BHP@8500rpm. CBR got 6 speed manual gear with wet muliplate with coil spring. Programmed fuel injection (PGM-FI) is the main feature of CBR, which ensure smooth fuel delivery. It got self starter and full-transistor battery ignition. Fuel tank capacity is 13 litres. CBR250R got a maximum speed of about 160km/hr and it can attain 100km/hr in about 8sec. The new CBR250R is able to get fuel efficiency of 25Km/litre in city and 30km/litre in highway.
Chassis is twin spar steel diamond frame. The front suspension of CBR250R is telescopic and rear is Swing arm (Pro-link suspension type).
Honda launched two model of CBR250R, one with ABS (Anti-lock Braking System) and non ABS models. CBR250R is the world’s first ABS motorcycle. Bike will be available in three colours red, black and silver.
CBR250R will be available for test drive from April, and will be on road by may end. The price of non ABS model is 1.55lakh and ABS model price is 1.77lakh (ex-showroom).
