Moneylife Foundation's seminar on safe and smart investing for young students of finance from the Management Course at the Atharva College, Malad
Moneylife Foundation held a seminar on safe and smart investing for finance students of Atharva College, Malad. While most of the attendees, who are students of business administration and finance, would be expected to have a good grounding in matters of finance, there is little in a college education that can prepare you for the intricacies and the realities of the financial services sector. While many students would go on to work for financial firms, all of them would need to have a good understanding of what it takes to invest safely and in a manner that would deliver prosperity in the long term.
Ms. Sucheta Dalal, Founder Trustee of Money Foundation, spoke on the financial traps to avoid, in order to keep your savings and capital safe. Debashis Basu spoke in the second half of the sesssion, with a focus on investments and how you could invest safely and yet build a corpus to enable a secure and comfortable future. As Mr. Basu put it, “having the benefit of hindsight, I can now tell you what you can do, which many middle-aged and older people wish they had been told in their twenties.”
Ms Dalal began with explaining to the students how to identify financial traps and scams, which could lead to upending your financial lives. “Everytime you speak to a salesman, make sure you don't fall for the sales pitch,” she said. She explained to the young audience that what salesmen of financial products say in their pitches can be far from the reality of the performance of the products. She spoke about the common mistake of falling for a well-known brand name and expecting good products, or performance, based solely on that.
She went on to detail the most ubiquitous scams, including Multi Level Marketing (MLM), Advance Fee Scams and Ponzi Schemes, among others. She also gave a brief account of safe financial behaviour over the internet, with a young and internet savvy audience, this was covered quite easily. “If scamsters are caught, the well-connected investors will be refunded and regular savers will rarely ever see their money.”
After a discussion on celebrity endorsements of bad financial products, Ms Dalal went on to explain the concepts of credit safety, credit scores and credit bureaus. This was of special significance, considering the profile of the audience, most of whom were in their twenties and as a result, most vulnerable to exuberant borrowing and credit expenditure.
In the second session of the seminar, Mr Basu's presentation was titled, “Salary Cannot Make You Rich, What Can?” With a short introduction to the young students, on the usual spending patterns, he went on to explain the need to have a clear understanding of your salary outgoings and possible savings.
He then spoke about goal-based investments and the relevant products that one could use to achieve those goals. Coming to the kernel of investment decisions he said, “Like all good Indians, we all want to know, 'kitna deti hai?'” He was, of course, referring to the average returns generated by the various asset classes available for investment. He went on to discuss the relationship between investment horizon and volatility, and then explained the immense power of compounding. The simple concept of compound interest, when applied to regular and relatively modest investments can deliver huge growth and future returns.
As if on cue, in his discussion of Real Estate as an investment, one of the students raised the question that he had forever heard and believed in the salience of real estate as a safe investment. Mr Basu stressed on the lack of reliable data, the numerous cases of builders cheating buyers and a comparison with the stock market. He then closed the exchange by saying that, “for every story you hear of a windfall gain on real estate investments, by your relatives or friends, there are many more cases where the investment has gone bad and which you don't hear about.”
PM Narendra Modi addressed poll-bound Haryana at the foundation laying ceremony of the Kaithal-Rajasthan Highway
Prime Minister Narendra Modi was in Kaithal, Haryana today, for the foundation ceremony of the border section of the Kaithal-Rajasthan National Highway.
The PM was accompanied by Union Minister Nitin Gadkari and Haryana Chief Minister Bhupinder Hooda at the foundation laying ceremony.
PM Modi's address comes at a time when Haryana's political atmosphere is charged up in anticipation of the upcoming Assembly Elections.
5 Key Takeaways:
• “'Mera Kya' and 'Mujhe Kya' have ruined us, we need a corruption free nation.”
The PM announced the launch of the “Prime Minister Gram Krishi Sichaee Yojana.”
• “Some Central schemes (for farmers) have been lying incomplete, I assure you that I will try and complete them.”
• “Corruption is dangerous and spreading more dangerously than cancer. It is destroying the country.”
• “Do you want a corruption-free country or not? Should strong steps not be taken to remove corruption? We will take those steps.”
Further controversy erupted after the ceremony, when the Haryana CM vowed never to attend another event with the Prime Minister.
When the CM stood up to speak at the function, the crowd booed him and shouted him down. Taking it as an insult by PM Modi's supporters, Hooda made said he would never attend another event with the PM. On the other hand, when the PM spoke to the audience, they heard him with full attention and in complete silence.
Nifty may give up some gains over the next few sessions
Today after opening in a highly upbeat mood, the indices soon started moving lower. This was followed by the indices moving in a narrow range for the remaining session. Positive data from the US and UK helped the positive momentum on the benchmark to continue.
S&P BSE Sensex opened at 26,483 and immediately hit its life time high at 26,531 while the CNX Nifty opened at 7,901 and hit its all-time high at 7,919. Both the indices hit its daily low at 26,388 and 7,881. The benchmark today again managed to close at its new all-time high at 26,421 (up 30 points or 0.11%) and 7,898 (up 23 points or 0.30%). The NSE recorded a volume of 89.28 crore shares. India VIX rose 2.98% to close at 13.9050.
Except for Service (0.06%), Finance (0.18%) and IT (0.51%) all other indices on the NSE closed in the positive. The top five gainers were Auto (2.46%), Realty (1.57%), Smallcap (1.42%), PSE (1.15%) and Consumption (1.13%).
Of the 50 stocks on the Nifty, 37 ended in the green. The top five gainers were BPCL (3.93%), M&M (3.77%), Tata Motors (3.33%), Bajaj Auto (3.30%) and IndusInd Bank (3.23%). The top five losers were HDFC (2.49%), TCS (1.99%), Hindalco (1.02%), Sun Pharma (1.00%) and HDFC Bank (0.99%).
Of the 1,600 companies on the NSE, 933 companies closed in the green, 600 companies closed in the red while 67 companies closed flat.
On Monday, India said that it would not attend talks involving the foreign secretaries of the two countries, which were set to take place on 25 August 2014, in Islamabad, because Pakistan consulted Kashmiri separatists ahead of the meeting.
Muthoot Finance (9.65%) was the top gainer in the ‘A’ group on the BSE. It has come out with a public issue of secured NCDs and unsecured NCDs aggregating upto Rs200 crore, with an option to retain over-subscription upto Rs200 crore for issuance of additional secured NCDs and unsecured NCDs, aggregating to a total of upto Rs400 crore. Out of the funds raised, 75% will be utilised for the purpose of lending, while 25% will be used for general corporate purposes. The issue opened on August 18 and is scheduled to close on 18 September 2014.
Hitting its 52-week low today again, Bhushan Steel (4.98%) was among the top two losers in the ‘A’ group on the BSE. Bhushan’s managing director and promoter Neeraj Singhal was arrested in the Syndicate Bank bribery case last week. Lenders were scheduled to meet on Monday to look at various options to reduce the debt service burden.
Today Mahindra & Mahindra hit its 52-week high and closed 3.67% higher. It was the top gainer in the Sensex 30 pack. M&M had recently announced that as part of aligning its production with sales requirements, it would be observing no production days at its automotive plants for upto four days during the remaining period of August 2014. One of its wholly owned subsidiaries viz., Mahindra Vehicle Manufacturers Limited Plant at Chakan would also be observing no production days for upto four days during the remaining period of August 2014. The management does not envisage any adverse impact on the availability of vehicles in the market as the company has adequate vehicle stocks to serve the market requirements.
HDFC which hit its 52-week high on 14 August 2014 was the top loser (2.48%) in the Sensex 30 stock today.
US indices closed sharply higher on Monday. US homebuilder sentiment rose in August to its highest since January, the National Association of Home Builders said on Monday, marking a third straight monthly gain.
The minutes from the last Federal Open Market Committee meeting will be released tomorrow.
All the Asian indices which were trading today closed in the green. Taiwan Weighted (1.12%) was the top gainer.
European indices were trading in the green. US Futures too were trading higher.