Finergo Episode 29 Dt 22june09

04 KALEIDOSCOPE

ERGO Monday, June 22, 2009

Numbers that matter Gold: Rs. 1350 per gram Silver: Rs. 23,600 per kilogram Sensex closing: 14521.89 (June 19) Nifty closing: 4274.05 (June 19) Dollar: Rs. 48.0103 per USD (The rates given above are as on June 20)

Quiz A: State Bank of Pathankot B: UTI Bank C: SBI Bank D: Grindlays Bank 2. NFO stands for: A: Nationalised Financial Organisations B: New Fixed Deposits C: New Fund Offer D: Nano Fund offers 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 and send it. Winner will be chosen by lucky draw from all correct answers.

Answers for last week’s quiz: Equity Linked Savings Scheme Capitalisation

News you can use Guaranteed returns from Bajaj Allianz Bajaj Allianz Life Insurance has launched Investplus, a Life Insurance product that guarantees a specific return on the investment. It is a traditional insurance plan in which the investor is made aware of a guaranteed minimum investment right at the beginning of the year and also a guaranteed maturity value at the end of the term.

New life plan Future Generalli India Life Insurance Company has launched Future Anand, a life insurance plan which is a combination of endowment and whole life plan. The plan assures Guaranteed Additions at the rate of 3.5 per cent of sum assured per annum compounding at the end of each of the first five policy years and compounded reversionary bonuses thereafter.

Fixed deposit from Mahindra Mahindra and Mahindra Financial Services launched a three-year cumulative fixed deposit giving returns at the rate of 10 per cent. This interest is considerably higher than what most banks and financial institutions are offering. The FD also has been given a good credit rating and this backed by the brand of the Mahindras makes this a good investment opportunity.

Is it housing boom? DIVYA DARSHINI [email protected]

The price fall in the housing loan industry might be over and one can expect a rise in real estate prices soon, say industry officials

T

op CEOs in the housing loan industry have indicated that the property prices are expected to go up soon. Reason: There seems to be an increase in demand for houses. This is besides other economic indicators. During the past few months property prices were showing stagnation and in many cases a downward trend mainly due to drop in demand for housing. This forced builders to lower the price and focus on economically priced projects. In fact, it looked as if the demand for expensive or luxurious properties would not go up for a long time. But, that doesn’t seem to be the trend. The demand for housing is slowly but surely coming back and there seems to be renewed activity in the housing domain.

Why is demand rising 1. People probably feel more secure and comfortable to see a stable government at the centre.

2. The liquidity situation is improving and the cash flow in the market seems to be getting better. 3. There is also a strong indication that interest rates on loans will continue to drop. This is again an incentive for investors to borrow and spend on their dream house.

What’s happening Business move by corporates in the housing finance domain also indicate an upcoming price hike. LIC Housing Finance has witnessed a 40 per cent rise in the number of loan applications compared to last year. The TATA Group re-launched the TATA Capital Housing Finance Ltd, which had stopped its housing finance business about six years ago.

What should I do as an investor? If you are a prospective buyer and have been waiting for prices to fall further, it’s time you start talking to loan companies. Any chance of further price drop seems minimal. ■