How Does RBI Decides Interest Rate?
Every quarter, there is a buzz around whether the RBI will cut or increase the interest rate. The RBI decides interest rate periodically and takes decisions whether to hike/slash the rate or leave it unchanged. The central bank’s monetary policy committee’s decision could impact liquidity and inflation in the Indian economy. RBI Decides Interest Rate […]
What Are Payment Banks And How Can They Ever Work?
What are payment banks? According to RBI guidelines: the objectives of setting up of payment banks is to further financial inclusion by providing – small savings accounts and payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users. What does it mean? Nothing too complex – it […]
How to Earn Fixed Interest Income in Trading Accounts?
I wasn’t really sure of the title to this post but the idea stemmed out of a question that I received from a subscriber. Instead of repeating the exact question, I will break it up into 2: Can you earn fixed interest income on the spare cash lying in your trading account? Should you transfer […]
Sectors Which Will Outperform In The Next Bull Run
The year that started with great optimism is ending on a somewhat somber note for stocks. Here’s a look back at the year that was. In all we recommended 63 stocks and closed 54* stocks in 2015 (Jan- Dec). Average Gain % from total calls closed = 26.71%. *Note: 54 calls closed include 22 calls initiated in the […]
Loan against Securities – Interest Rate Comparison
For those who may be new to the concept of loan against securities, let me start by way of brief introduction and the advantages. Loan against securities (like shares, mutual funds, bonds or any other similar instrument) works like a standard term loan with the underlying security pledged to guarantee the loan. Advantages of Loan […]
Limits on FII holding in Indian Stock Markets
What are Foreign Institutional Investors (FIIs)? FIIs are overseas entities registered in India and allowed to invest in the Indian stock markets. FII money forms a big part of the overall pie of investment in Indian stocks. FII money is often termed as ‘hot money’ as FIIs buy/sell a large number of shares in Indian markets on […]
5 Easy Money Saving Tips From Everyday Life
Before I get to some of the most ridiculous places where I spend my money, let me motivate you about the power of small savings with a story. King & The Shaman A King once challenged a shaman to a game of chess and offered any reward which the shaman wished for if he were […]
Return on Equity (ROE) or Valuation – What’s More Important?
One of the most common mistakes which investors make while selecting stocks is paying more attention than is due to the Return on Equity (ROE) or the return which the company generates on the employed capital. While ROE is an extremely important metric it should not be treated as the holy gospel of investing. A single […]
Non Performing Assets (NPAs) in Public & Private Sector Banks
Public Sector Banks (PSBs) in India have performed rather poorly over the past 3-4 years. For the most part this has been on account of Non Performing Asset (NPA) related worries which have so far been brushed under the carpet. The current level of NPAs as disclosed by most public sector banks are far from […]
Types of Bank Loans in India – Interest Rates and Charges
From starting a business to purchasing a luxury car, buying a home to going on a vacation – these days you will find customized bank loans for all your needs. This creates a huge opportunity not only for banks but also for businesses selling consumers products. Banks label loans on the basis of end use of […]