Arjun Parthasarathy has spent 20 years in the financial markets, having worked with Indian and multinational organisations. His last job was as head of fixed income at a mutual fund. An MBA from the University of Hull, he has managed portfolios independently and is currently the editor of www.investorsareidiots.com . The website is for investors who want to invest in the right financial products at the right time.
Life insurers are regulated by the IRDA and have strict capital norms. Most of them have partnerships with big global insurers. Hence credit risk to a private sector insurance company policyholder should ideally be low. On a pure credit risk aspect on insurers, LIC does not have a big advantage over private sector insurers.
Given the positive factors and the uncertainty on the economy and elections, my opinion on whether you should buy equities going into the elections is yes, you should buy equities but be stock and sector specific and be prudent on weights of each stock in your portfolio.
Stable outlook for the rupee coupled with high interest rates will prompt arbitrage flows leading to the rupee strengthening against the dollar. The rupee's appreciation will further encourage arbitrage flows, a self fulfilling cycle that could take up the value of the rupee by a good margin.
Open a laptop or tablet, open one of the numerous software available for technical analysis and start to trade. There are "n" number of books, courses, advice, training on technical analysis. Everybody is supposed to make money trading technicals.
It is a Catch-22 situation for the RBI. It cannot loosen its guard against inflation; at the same time if the economy falters further, it will face difficulties in managing govt borrowing and bank NPAs
The government has budgeted for bond redemptions of Rs 900 billion but bonds maturing in fiscal 2014-15 that are coming up for redemptions is Rs 1567 billion. How is the difference of Rs 667 billion (Rs 1567 billion - Rs 900 billion) accounted for?