Finergo Episode 26 Dt 01june09

04 KALEIDOSCOPE

ERGO Monday, June 1, 2009

Quiz 1. The organisation which takes care of the securities and assets of a mutual fund is called a) Custodian b) Guardian c) AMC d) Trustee 2. DBS in DBS Chola is a group belonging to which country a) Australia b) Denmark c) Dunedin d) Singapore 3. Which is the first actively managed Shariah compliant fund in India? a) DSP Black rock b) Taurus Ethical Fund c) SBI Magnum Sector d) JM core 11 fund 4. If inflation averages a modest three percent per year, how long will it take for the average price you pay for goods and services doubles? a) 9 years b) 24 years c) 41.5 years d) Never 5. A stock which trades for less than two cents (USA) is called as a) Cheap stock b) Not a stock c) Penny stock d) Cent stock 6. STT in tax parlance means a) Short Term Tax b) Sales and Trade Tax c) Securities Transaction Tax d) Subsidized Trade Tax 7. IX is an indicator of market mood in a) Short Term

b) Long term c) Past week d) Past year 8. If you took a loan of Rs 1,000,000 for 10 years at reducing interest rate of 13.25% what would be the EMI? a) 15100 b) 15078 c) 15200 d) 15780 9. If you took housing loan of 2,000,000 for 20 years at 11% pa and paid the EMI for 10 years, what would be the balance principal at the end of the 10th year? a) 1,498,000 b) 1,000,000 c) 800,000 d) 1,100,000 10. If your father had purchased 100 shares of Wipro at Rs 100 per share in 1980, how many shares would you have today? a) 100 b) 10000 c) 5,760,000 d) 58,889 Winner gets a cash prize of Rs 500. Answers should reach us by June 6 and will be declared in these columns, issue dated June 8. Winner will be chosen from a lucky draw of all correct entries. Send your answers to [email protected] or SMS your answers to 92813 98889. For example if you choose a) as the answer to question 1 and b) as the answer to question 2 type it as 1a2b. Answers for last week’s quiz Mutual Fund Religare

News you can use Double valuation of mutual funds The Association of Mutual Funds in India (AMFI) has decided that very soon mutual funds will be able to use ICRA’s (Indian Credit Rating Agency’s) services to value their debt funds. As of now only CRISIL gives the valuations based on which the funds set their NAV’s for each day.

SBI does it again After reducing interest on housing loans the State Bank of India has fixed car loan rates at 10 per cent for the coming year. Any new car loan

will be at 10% for the first year and then at the rate prevailing in the market. This is 1.5% lower than the rate currently prevailing in the market.

Property services from Geogit Leading brokerage firm Geogit is entering the real estate domain with the launch of its Property Services Division. This division is like a real estate broker but more professional and systematic. It comes as a common professional service to help both property buyers and property sellers. The first operations would start from Kochi and then expand to the rest of the country.

Do plan a good insurance scheme for a happy life ahead.

Don’t buy life insurance If you don’t care for your family and loved ones SNEHA BAJAJ [email protected]

T

he first impulse that we get when somebody says “I am a life insurance agent” is to run away. Traditional methods of selling have brought about such a sorry state. Though the purpose of insurance is to protect or preserve the value of assets. Assets include houses and commercial buildings, vehicles, health and life. Insurance ensures that the financial value of the asset is given back to the owners so that they can rebuild or reacquire the asset, in case it is lost. The biggest asset we have is our life and it can never be restored. Even health can be recovered to a great extent.

When I lose a house and get insurance, I can build my house again. But if I lose my life, what is the point in my insurance cover, anyway I am not going to use the money – that’s the general view.

Asset vs beneficiary of asset The house is the asset and the beneficiary is we and the owners of the house. For our own lives, we are the asset and our dependents are the beneficiaries. Therefore life insurance is not for us but for our dependents. So we do need life insurance if we care for our loved ones truly.

How much insurance do I need? Income Replacement Method: This method is based on the premises that at least our last drawn salary or income should go to our family on a regular basis if we are no more. The table below illustrates an example for an executive earning a monthly salary of Rs.10, 000. This amount of say Rs.11 lakhs (Rounded from the value above) is the minimum life cover required for a person earning Rs.10, 000 and spending Rs.2, 000 on himself. ■