More Downside in the Market?

Ajay Bagga, CEO of Lotus Asset Management,is of the view that markets are likely to trade volatile in the short-term with more risks on the downside. “As global cues improve, you could see pretty good returns coming back in the Indian markets.”

He feels investors should wait and watch, see how the growth trend in global economies plays out and if there is a sharper reduction in growth before investing.

Don’t buy now, book profits: Amit Nalin Secs

Source : IMW/CNBC-TV18
According to Amit Dalal of Amit Nalin Securities, this is not the time to buy stocks but to book profits.He feels that "May will not be a strong month, it will remain a weak month. He is asking advisors to continue selling in May and go away.

The Simple Rupee:Balance Sheet,a useful tool

1. The Balance Sheet is a very important source for helping you gauge your need for Life Insurance.If you've read my previous article ,you will recollect my having written about liabilities (what you owe).No one would like to pass on the burden of outstanding debts to their loved ones.This is where the Balance Sheet can help you decide the quantum of Life Insurance you should have so that your loved ones are left with enough to clear the debts as well as live comfortably in the event of any untoward incident.
2. The Balance Sheet can help you allocate your investments properly so that you get a decent rate of return (more than what the banks,NSCs and GOI Bonds have to offer!).
3. The Balance Sheet can help you plan for your retirement.Unless you know what is coming in and what is going out,how are you going to know how much to save towards your retirement goal?
4.Planning your Will:You need to know what your assets are before you decide what you want done with them.
5.Moving towards your goals:If you get into the habit of preparing annual balnce sheets and comparing these with the previous year's totals,you can assess how much closer you are to your goal(s).You can make the necessary adjustments when required.
I do not claim to be a financial advisor.Please don't construe this as financial advice.But as I said in the beginning,there may be someone who gains a new insight into their finances through my journey.
First published by me on my blog :ALL THINGS GOOD

The Simple Rupee:Gathering Data

In this article,I will discuss one of the most important steps in Financial Planning:
Gathering Data.What this means is that you need to know what is coming in and what is going out.One of the best tools to record this is a Balance Sheet.This is a list of everything you own (your ASSETS) and everything you owe (your LIABILITIES).This is like a snapshot of your financial picture.This changes in every moment of time.Moreover,it can also help in giving you an idea of where you stand and where you will be in the near or distant future.Your Balance Sheet gives you your NET WORTH (Assets-Liabilities).This can either be a positive or a negative figure.Of course,everyone would love to have the former!An example of what can be listed in Assets :
1.All the cash you have right now.
2. All the money in your Savings Accounts.
3. The cash value of your life insurance policies.
INVESTED ASSETS.For eg.
1.Stocks and Mutual Funds.
2.GOI Bonds.
3. Pension Funds.
Other assets like.1.Your home2.Property3.Vehicles4.Personal property5.Antiques,paintings,works of art.
LIABILITIES may include:
1.Loans of all kinds
2.Credit card debts
This is by no means an exhaustive list of assets and liabilities.I have given examples of what you will commonly find in a balance sheet.Once you list out your assets and liabilities in a balance sheet in two columns,it becomes easier to assess your Net Worth.In my next article,I will try and explain how useful a Balance Sheet can be as a tool in your Financial Planning.