Nandi Housing Project : Nandi Retreat

Felt it would be nice to share my experience to reviewing Nandi Retreat project of Nandi Housing Group.

On Sep18 2012:
I checked Nandi Retreat in Gottikere yesterday. They are charging 3500 psf. Apartments are in the dimension 1030 , 1000 and 990. The place is quite isolated. Its very close to gottikere lake. The site also seems quite small. This must be the smallest project undertaken by Nandi group.
On the good side the floor plan is very nice.

On May 15 2013:
Close to booking Nandi Retreat project in Gottikere.  Its 1.3 kms from bannerghata road if you enter through Radclif school on gottikere. If you go through the road after Meenakshi Mall, its 2.6 kms. The roads connecting from Bannergata road and from Meenakshi Residency is in good shape now.

Note:
In 6 months a lot has changed in the area. Lots of new projects coming up.

National Pension Scheme

NATIONAL PENSION SCHEME [NPS]

Guess most of us have not heard about this scheme. Its largely because Financial Institutions and Agents are not promoting it owing to less commission.

Explain New Pension Scheme?
The NPS was introduced by the government last year to give people a way to get a pension during their old age. Employees of the government sector already get a pension, so this scheme was introduced as a social security measure that enables people from the unorganized sector to draw a pension as well.



The working mechanism is quite simple – you contribute a certain sum every month during your working years, which is then invested according to your preference. You can then withdraw the money when you retire, which is currently set at 60 years old.
When I say you invest according to your preference, I mean that there are a couple of different options that you need to select from. These options pertain to your preference on withdrawal, and asset allocation.




Explain  Tier I and Tier II accounts in the NPS?
The NPS is meant to be a pension scheme, so it is geared towards giving you a steady stream of income on your retirement.
That means that NPS makes it difficult to withdraw your money during your working years or till the age of 60 in this case.
Tier I and Tier II are two options under the scheme where you can invest your money, the primary difference between them is how they differ in allowing you to withdraw your money before retirement.




NPS Tier I
There is severe restriction on withdrawing your money before the age of 60, because it is necessary to invest 80% of your money in an annuity with Insurance Regulatory Development Authority (IRDA) if you withdraw before 60. You can keep the remaining 20% with you.
When you attain the age of 60, you have to invest at least 40% in an annuity with IRDA; the remaining can be withdrawn in lump-sum or in a phased manner.




NPS Tier II Account
The first thing about the NPS Tier II account is that you need to have a Tier I account in order to open a Tier II account.
The Tier II account makes it easy for you to withdraw your money before retirement because there is no limit on the withdrawals you can make from the Tier II account.
You need to maintain a minimum balance of Rs. 2,000, and you can transfer money from the Tier II account to Tier I account, but not the other way around.
There is a Rs. 350 CRA (Credit Record Keeping Agency) charge which is not present in the Tier II account, but the rest of the fees remain the same.

Fees and Costs related to the NPS

I talk about expenses a lot here, and the expenses on the NPS are really low. The annual fund management charge is 0.0009%, which is probably the lowest in the world.

What is the minimum amount needed to invest in the NPS?

For a Tier I NPS account you need to contribute a minimum of Rs. 6,000 per year, and make at least 4 contributions in a year. The minimum amount per contribution can be Rs. 500.

Minimum amount for opening Tier II account is Rs. 1,000, minimum balance at the end of a year is Rs. 2,000, and you need to make at least 4 contributions in a year.

What are the tax implications of NPS?

The revised Direct Tax Code proposes to make the NPS tax exempt at the time of withdrawal. Initially NPS was going to be taxed at the time of withdrawal, and that had put it at a disadvantage to other products like ULIPs and Mutual Funds. But the revised code proposes it to be exempt from tax, and that really adds to its lure.

How to open a NPS account?

You can open a NPS account by going to the bank branches of the banks that are authorized to sell this.

Ex:

Axis Bank Ltd

State Bank of India

State Bank of Mysore

LIC of India

Central Bank of India

IDBI Bank

Conclusion

This is quite a good option for people who wish to invest for their retirement, and the government has done good to come up with such an option. It is still early days for the scheme so there are going to be some teething troubles, and I am sure you have come across several articles that write the NPS off completely, or suggest major changes.

HOW TO BUY A TELEVISION

Step in to a store to buy a new TV and you are greeted by intimidating array of flat screens playing everthing from saas-bahu programmes and movies to cricket and football matches.

There are four major types of TV’s available in the market today. They are PLASMA , LED  , LCD and CRT.

PLASMA TV:

These offer the best colours and widest viewing angles and in fast moving pictures , motion blur or ghosting is almost non-existent. However, Plasma consume three times as much power as LED, LCD Tv’s. Repairing of these TV is also quite costly.

Price : 35000 Rs to 3.2 Lakhs

LED TV:

These TV’s are much sleeker and the most power efficient. Images are sharp and structure finishing is smooth. But the disadvantage is that the colours can be uneven at times.

Price : 28000 Rs to 1.5 Lakhs

LCD TV:

It provides smooth picture quality and is power efficient. It again supports rich colours. But at times can overlap. Its prone to ghosting while watching sports or playing video games.

Price : 20000 Rs to 70000 Rs

CRT TV:

Its the old Cathode Ray Tube system. Its major point is its cost advantage. Its very cheap. Manufacturers are trying hard to dispose it off as soon as possible.

The disadvantage is big size, high power consumption, parts to repair becoming redundant, mono system, ghosting and less range in colors.

April Vegetable Price in Bangalore

I have gathered and listed vegetable prices as available on April 16 and April 21:
Source Bigbazar : Jayanagar 9 Block

April 16 2012

Capcicum: 58 Rs /Kg 
Beans : 55 Rs/Kg  ,
Potato : 16 Rs/Kg ,
Brinjal 28 Rs/ Kg
Tomato : 26 Rs / Kg
BottleGoud : 19 Rs /Kg ,
Onion 11 Rs /Kg
Madras Cucumber : 34 Rs/Kg
Cocunut : 13 Rs


April 21 2012

Tomato : 20 Rs/Kg
Gourd Snake : 30 Rs/Kg
Coriander : 4 Rs/Kg
ARBI (Crocienia) : 36 Rs/Kg
Ladies Finger 36 Rs/Kg
Brinjal : 26 Rs/Kg
Pudina : 3 Rs/Piece
Green Chilli: 41 Rs/Kg
Curry Leaves: 3 Rs/Piece
Lemon : 90 Rs/Kg
Onion : 11 Rs/Kg
Potato : 16 Rs/Kg
Coconut : 13 Rs


Prices have shot up for a lot of vegetables on account of summer.

Make Fiscal Year Resolutions

As we enter the new fiscal, I would like to list some simple yet effective steps you can take to keep tabs on and improve your financial goals...

Set specific Financial Goals:

Consult your family members to chalk out what your family’s long-term financial goal should be. Then if needed consult a financial planner about how to achieve those goals. Some of the important things to take care are of here are to remain realistic about the goals, and keep the plan and the portfolio simple.

Regularly Check Your Financial Health:

You take care of your and your family’s health and probably go for regular check-ups. Remember to do the same with investments. Revisit regularly the status of your investments to see if they are aligned to your long-term financial goals.

Write down all investment related information:

Maintain a notebook or a diary for this. When you make the investment – be it a mutual fund, stocks , bonds , gold or any other asset class – write down the rationale for investing in the particular asset. It should also contain the expected rate of return which should help you achieve your financial goals.

Also write down the information that you believe are important to your investment decisions, and keep updating it as and when you find some-thing relevant. Flip through its pages once in a while.

This should help you evolve into an educated and alert Investor.

Keep All Investment Papers in Order and Updated:

This is as critical as investing. Keep all your mutual fund account statements updated and at one place. Be careful to update your contact details with the companies with which you have investment related relationships, like mutual fund houses , broker , insurers etc.

Make sure you read all the papers, documents and letters that are sent to you from these companies. If you don’t understand something reach out to your investment adviser or the companies directly.

Be Prepared to Fight for Your Rights as as Investor:

With the number of companies offering investment products growing, along with the number of investors, there is bound to be some investment related problems.

In case you are an investor facing such a problem, be sure to address the problem without much delay.

Approach the right forum to resolve it. It it’s not resolved on time, or to your satisfaction , escalate the problem to the next level.

Saving Account Looks Attractive

With the announcement in Budget 2011-2012 that interest up t 10K would not be taxed, Saving Account looks far more attractive.

There are three main reasons to consider Saving Account than Fixed Deposits right now
 i)  Interest up to 10K is tax free
ii)  Higher interest rate provided by YES and Kotak Mahindra.
     They offer 6% for deposits over 100K.
iii) High liquidly offered By saving account.

I am listing below , the rates offered by various banks on Savings Account:

 

Bank	SB A/c Intt Rate(as on 24.10.2011) %	SB A/c Intt Rate as on 21.03.2012 (w.e.f) %
Allahabad Bank	4.00	4.00(25.10.2011)
Andhra Bank	4.00	4.00(25.10.2011)
Bank Of Baroda	4.00	4.00(25.10.2011)
Bank Of India	4.00	4.00(25.10.2011)
Bank Of Maharashtra	4.00	4.00(25.10.2011)
Canara Bank	4.00	4.00(25.10.2011)
Central Bank Of India	4.00	4.00(25.10.2011)
Corporation Bank	4.00	4.00(25.10.2011)
Dena Bank	4.00	4.00(25.10.2011)
IDBI	4.00	4.00(25.10.2011)
Indian Bank	4.00	4.00(25.10.2011)
Indian Overseas Bank	4.00	4.00(25.10.2011)
Oriental Bank (OBC)	4.00	4.00(25.10.2011)
Punjab & Sind Bank	4.00	4.00(25.10.2011)
Punjab National Bank	4.00	4.00(25.10.2011)
Syndicate Bank	4.00	4.00(25.10.2011)
UCO Bank	4.00	4.00(25.10.2011)
Union Bank Of India	4.00	4.00(25.10.2011)
United Bank Of India	4.00	4.00(25.10.2011)
Vijaya Bank	4.00	4.00(25.10.2011)
State Bank Of India	4.00	4.00(25.10.2011)
State Bank of Bik & Jaipr	4.00	4.00(25.10.2011)
State Bank Of Hyderabad	4.00	4.00(25.10.2011)
State Bank Of Mysore	4.00	4.00(25.10.2011)
State Bank Of Patiala	4.00	4.00(25.10.2011)
State Bank Of Travancore	4.00	4.00(25.10.2011)
ICICI Bank Ltd	4.00	4.00(25.10.2011)
Axis Bank Ltd.	4.00	4.00(25.10.2011)
IndusInd Bank Ltd.	4.00	5.50(01.11.2011)
Yes Bank Ltd.	4.00	6.00(25.10.2011)
HDFC Bank Ltd.	4.00	4.00(25.10.2011)
Kotak Mahindra Bank	4.00	6.00(25.10.2011)

 I am planning to contact Kotak Mahindra and Yes Bank in the coming days. Rates are excellent.

TRENDS AND TREND-LINES

Trend identification can be called the keystone of technical analysis.

The price typically moves in a wave like motion forming a series of peaks and troughs. The direction in which these peaks and troughs are moving is called the trend.

In an uptrend, we have a series of higher peaks and higher troughs.

In a downtrend, we can see successive lower peaks and troughs.

When the peaks and bottoms move horizontally we call it the sideways trend.

An example is the stock of Reliance Communications is in a downtrend since January 2008.

A stock chart that resembles a roller-coaster ride is typically in a sideways trend.

Sintex Industries is moving between Rs 60 and Rs 250 since 2006. Such sharp price swings are common when stocks enter a sideways or consolidation phase.

Trend identification is done with help of trend lines. Constructing a trend line is fairly simple. When the stock is in an uptrend, the trend line is constructed by joining the troughs formed during the uptrend.

Conversely, a down trend line is formed by connecting the peaks formed during the down trend.

A buy signal is generated when the stock price moves above the down trend line. A sell signal would be generated when the stock price moves below the up trend line.

Lets look at one more example:

Andhra Bank has been in a downtrend ever since it peaked at Rs 190 in December 2010. The next significant peak was formed at Rs 159 in April 2011. We should join these two peaks with the help of a trend line.

This downward sloping trend line was breached in February this year thus signalling a trend reversal. 

TYPES OF EQUITY

Essentially seven types of equity shares are important from the investor’s point of view:

1.   Blue chips

2.   Growth Stocks

3.   Defensive Stocks

4.   Cyclical Stocks

5.   Turnaround Stocks

6.   PSU Stocks

7.   MNC Stocks

The above classification has to be understood in a broad sense for there is scope for overlap, as the last two categories are based on ownership. It is possible to classify the PSU stocks and MNC stocks into one of the first five categories.

BLUE CHIP STOCKS                     

Shares of established companies whose asset, sales , turnover and profits continue to grow rapidly are fittingly called Blue Chips. Ex: HDFC Bank, TITAN etc

GROWTH STOCKS:

Shares of relatively new companies which are performing in outstanding manner are known as growth shocks.

Growth stocks eventually graduate into established blue chips. Ex is Infosys and Dr Reddy’s LAB

DEFENSIVE STOCKS

Typically these are shares of traditional companies engaged in stable and mature industries. Their earnings do not fluctuate very widely from year to year. Market prices of defensive shares tend to fluctuate within a narrow range.

CYCLICAL STOCKS:

These are shares of companies engaged in business which are susceptible to fluctuations  caused by economic and trade cycles. Typically do very well in Boom and hit the bottom in Bust phase.

Ex : Real Estate industry, Automobile industry , Sugar industry etc.

TURNAROUND STOCKS:

A turnaround share is one whose market price is currently lower than its intrinsic value because the company has recently gone through a bad patch. One of the example is TATA Motors.

Choosing the Right Equity

This is a truly tricky decision to make for most. But if you are willing to study and follow fundamental principal for investment, it should be a good decision.

Let me look at some salient factors that you must keep in mind:

Pinpointing a Company:

All companies in a particular industry earmarked for investment may not be uniformly good. You have to pick the right company or companies based on fundamental criteria and non-financial aspects such as management  reputation , past track record , future plans , etc.

 Deciding on the Right Price:

Having chosen a company, you need to decide , whether its stock is attractive at the prevailing price. Is it overpriced, is it under priced , or is the price just right.  Whether a price is right or not essentially depends not so much on a company’s asset base but upon its earning power. If the earnings are good and growing, a high price may be justified ; otherwise not.

 Deciding on the Right Time:

In a way, the time and price issues are interlinked and may be examined together. A good understanding of share price movement chart may help in timing your purchase. Here to perception of an investor and trader is different.  An investor has more freedom here than a trader. Investor can survive a fall in price better than a trader.

Equity Buyers

At the highest level you have just two types of people buying stocks. One is Trader and the other is Investor. 

Trader can be qualified as daily trader , weekly trader and monthly trader.

Investor  typically hold on to his investment for a long time.  A investor might be holding on to a equity anywhere from 1 year to 10 years.

I shall try to perceive stock buyers in terms of their risk taking appetite.

Low Risk Takers : They should invest in blue chips and aim at long term gains (3 yaers and above) only. They need to adopt a buy and hold strategy

Medium Risk Takers: They should invest in growth stocks and aim at medium term (1 to 3 years). They should adopt a reasonably aggressive strategy.

High Risk Takers: They should invest in turnaround stocks and aim at short-term gains only (around 1 year). Adopting a very bold investment strategy , they should go bargain-hunting.

DALAL STREET AND ITS BULLS AND BEARS

The Bulls , Bears and investors are the kingpins of  the money game on DalalStreet.

The BULLS:

The bulls , whether investors or brokers have an optimistic view of the market.

A half empty glass always looks half filled to the bulls.

They expect stock prices to rise. A strong and rising market is known as a bull market.

When bulls swing in to action , prices tend to rise. The bulls buy shares hoping to sell them soon afterwards at higher prices.

The BEARS:

The bears, whether  investor or broker hold a pessimistic view of the market.

A half full glass always looks half empty to the bears.

They expect stock prices to decline. A weak and declining market is known as bear market. When bears are active stock prices tend to decline. The bears sell shares hoping to buy them soon afterwards at lower prices.

The stock prices on Dalal Street fluctuate due to brisk buying and selling from bulls and bears. The market has been a silent witness to numerous periods of bull run and bear hug.

 

New Service Tax Impact after Budget

                       New Service Tax Impact

Budget 2012 has delivered a staggering blow by hiking the service tax and excise duty from 10% to 12%.

So, if you were feeling thrilled at being able to take home a bigger salary, I am here to burst your bubble: your expenses are bound to go up too, more so since the service tax net has been widened to include almost all services that comprise a huge chunk of the household consumption basket. Only 17 items, such as essential education, public transport and services meant for agriculture, are exempt from this tax.

A good example of little gain on the tax front is your expenditure on health. Though preventive health check-ups for up to Rs 5,000 are exempt, a visit to the dentist or diagnostic tests will be more expensive due to the higher service tax levied on these. You will also be shelling out more on your life insurance policy.

The service tax on the premium for policies where the mortality charges are explicit has also been raised on the charges. For other policies, the service tax on the gross premium for the first year has been hiked from 1.5% to 3%, while subsequent premiums will be taxed at 1.5%.

Even the hike in excise duty and customs duty is going to bloat your expenses as manufacturers are bound to pass these on to the end-consumer. Be prepared to pay more on everything from cigarettes and cosmetics to watches and washing machines. If you were planning to buy a sedan this year, increase your savings as the duty on cars that are more than 4 m in length has been hiked from 22% to 24% and 27%, depending on the engine.

The good news: since these taxes are mostly levied on discretionary spends, not on roti, kapda and makaan, you could tighten your purse strings if you want. Here's a look at how much more you will pay every year as service tax and other indirect taxes.

ITEM	Expenses	Service Tax	Service Tax
		10.30%	12.36%
TelePhone Bills	12000	1236	1483
Coaching Classes	24000	2472	2966
Eating Out	20000	2060	2472
Gyms	12000	1236	1483
Car maintenance and Repair	12000	1236	1483
Cable TV	3600	371	445
HealthCare	5000	515	618
Life Insurance Premium	6000	618	742
Functions : catering , photographer etc	20000	2060	2472
Real estate agent/ stock broker	10000	1030	1236
Salons , courier , packaging services	8000	824	989

ITEM	Expenses	Service Tax	Service Tax
		Old	New
Transportation : There hasn't been any change in the road cess, which is charged on diesel and petrol. Its at 2 Rs/Litre. Assuming petrol consumption at 1000 litres a year at 74 Rs/ Litre	74000	2000	2000
Jewellery: Prices will rise as customs duty on gold and platinum has been hiked from 2% to 4%. While excise duty for gold has been increased from 1.5% to 3%.	50000	1000	2000
Entertainment : No change in entertainment tax. It still ranges from 15% to 40%	6000	1200	1200
Holiday :  Hotel Stay for 5 days	25000	3125	3125
Holiday :  Food and beverages at hotel	6000	618	742
Holiday : Air Travel	20000	2060	24600
Holiday : Train Travel	12000	Nil	1483
Holiday : Tour operator / Travel agent	3000	309	371

As you can see friends almost all areas are going to come under new tax regime.