Article: 1

PATH TO FINANCIAL INDEPENDENCE Saving prudently and investing wisely hold the key to monetary emancipation -Vikaas M Sachdeva

Financial freedom is a term that has a lot of significance for each one of us. Financial illiteracy is usually the bane of financial freedom. Therefore, it is important to recognise and plan for various needs that arise at different stages of life, such as a child's education or buying a house. Having a good financial planner is a must because only he can profile your risk appetite and recommend investment avenues accordingly. Save regularly: As a first step, you should focus on saving for the future. This simply means that you have to ensure that your combined expenses are lower than the income generated. Invest wisely: Investments are assets that typically grow in value over a period of time and create wealth. In an elementary sense, it is money working overtime for you and creating more of its own kind. There are several investment options available where you can invest your hardearned money-bank fixed deposits, insurance policies, National Saving Certificates ( NSC), Public Provident Fund ( PPF), real estate, mutual funds, stock markets and pension schemes. The longer the duration, the lower the risk and better the returns. Typically, higher risk investments, such as stocks and equity mutual funds, are recommended for a minimum period of 3-5 years. Mutual funds: gateway to financial freedom: Mutual funds also provide the convenience of various frequencies, amounts and even different types of asset allocation. The choice and customisation offered by mutual funds to convince and comfort the investor fraternity are plenty. Every investor can easily find one that is suitable for him. Invest wisely and experience the joys of financial freedom.

Article: 2

WILL THE GLOBAL CRICIS AFFECT THE INDIAN STOCK MARKET? Though the Indian economy is likely to weather the current turmoil, corporate earnings may take a knock. Avoid the companies linked to the developed markets and go for those based on domestic themes. -Narendra Nathan
The Indian markets had been underperforming the global equities, especially compared to the developed markets, for several quarters. However, the Indian markets and several Asian markets did not fall as much as the global indices in the recent crash. Equity investors must exercise caution and not jump into the market right now. It is not reasonable to expect India to remain unaffected when the entire world is going through a crisis. Two major factors will contribute to correction or bear market - first, the US slowdown. Second is the uncertainty created by the lack of clear response to the ongoing crisis, both in the US and the EU zones. The US Federal Reserve has already exhausted most options. If it prints more money, inflation will shoot up. The US may not face the double dip, but perhaps it is in a long period of low, sluggish growth. The RBI will continue to do its job and may not be influenced with what is going on in the stock market," says Shah. "Since inflation is not totally under control, the RBI will continue with its rate action; 25 bps rate hike in the coming meeting and another 25 bps later this year. The flow may come to the debt market due to higher yields and also as a long-term play on currencies (Indian rupee is expected to appreciate in the long term). It is best to avoid companies with a high leverage, even if they are catering to the domestic markets, because of the rising interest rate regime in India. Besides, these companies' plans to raise cheap debt from foreign markets through ECB, FCCB, etc, have also taken a hit. FMCG continues to be a good story and companies like ITC and Marico still offer good values. Also, the companies with strong balance sheets will be able to ride the storm better than the rest.

Article: 3

INVESTING IN UNCERTAIN TIMES There is mayhem in the markets. Heres what small investors should do to cushion their portfolios against the downturn.
For equity investors, the past two weeks have been a replay of the 2008 nightmare. The Nifty has not exactly fallen off the cliff as it did in September 2008, but the 8% decline since 1 August is worrying chartists and fundamentalists alike. Overleveraged speculators and panic-stricken investors were the only ones who lost money in the 2008-9 crash. For the disciplined long-term investor, the spectacular decline in the markets that saw the Sensex hitting a multi-year low was actually an opportunity. It's difficult to get this argument across when investors are staring at an 8% dip in the index, the world's largest economy has been downgraded, and other developed nations are on the brink of debt defaults. Even so, here are a few steps that can help cushion the impact of volatility and ensure that investors don't get carried away by the predictions of doomsayers. Don't stop the SIPs: The impact cost of stopping a Ulip premium is higher than terminating an SIP, so many investors opt for the latter. Investors tend to be cavalier about their mutual fund investments, but are very diligent about Ulips. Stick to blue chips: It's best to stick to large-cap stocks in the coming months instead of risky mid-caps and small-caps. Be choosy: Even within the large-cap universe, you will have to be careful while picking stocks and sectors. Conduct thorough research before you place that buy order with your broker. Diversify your bets: It's a good time to start nibbling at some infrastructure stocks at these beaten down levels. Rupee-cost averaging: To avoid buying high, don't invest lump-sum amounts, but do so in monthly instalments. In this manner, you will be able to gain the advantage of the rupee-cost averaging that the SIPs offer.

Article: 4

GAIN BY BUYING IN A GROUP You may wrangle a discount of up to 30% while picking a house, but carry out a cost-benefit analysis before you do so. -Amit Shanbaug
Group buying is typically a good strategy, be it for travel deals or buying consumer durables, as it can help you get discounts ranging from 5% to 25%. More recently, companies such as Groffer.com and Home Buyers Combine (HBC) have taken the lead in extending this principle to real estate. As a home buyer, you can bag a discount of up to 30% by tapping these companies. Group purchasing brings a ready, not to forget substantial, cash flow to the developer and simultaneously generates business without him having to advertise any kind of discount. It's similar to the set-up that developers share with speculators who generally buy in bulk. Such investors are able to get discounts of 30-40% since they come in at a stage when the project has not yet started and typically pay 50% of the property's value upfront and in cash. Group buying companies prove more beneficial for developers as the latter get away with providing lesser discounts to them. Consider the pre-launch stage, when future sales are uncertain. This is the time we're able to get the maximum discounts, ranging between 20% and 30%. In each project, we are able to distribute our costs effectively and demand only 0.5% service charge from buyers compared to the market trend of up to 2%. Given a saving of 10-20% on the total property cost and the added benefits, this is a nominal charge. Developers generally charge around 20% upfront money, while the remaining usually comes from the home loan taken by the buyer. In case of group buying, they can insist on an upfront payment of 30-40% of the property value. Registering with a group buying company may promise big savings, but it need not be the best option for all home buyers. Do a careful cost-benefit analysis before you proceed.

Article: 5

HOW TO GET A TRAVEL CARD WHILE TRAVELLING ABROAD

The modern alternative is the travel card, which is a prepaid card that works like a debit or a credit card. It is accepted at merchant establishments abroad due to the backing of MasterCard and Visa. It can also be used in ATM machines to withdraw cash while abroad. The travel card helps save on transaction charges of up to 3.5%, which are imposed when a normal credit card is used in international transactions. It also helps avoid the risk that comes from fluctuating exchange rates that are applied when a traveller's cheque is encashed. Authorisation: A travel card is issued under the RBI guidelines, which permit foreign exchange to be bought to fund international travel. The purchased currency is reflected in the card.

Limit: The limit imposed on buying foreign exchange for international travel is $10,000 per calendar year for most transactions. It goes up to $25,000 per visit if the travel is for business purposes.

Payment: The amount required in rupees, based on the exchange rate on the date of purchase and bank charges, has to be remitted to the bank. Travel cards are issued by a bank to both customers and non-customers.

Reload: A travel card has a unique number and can be reloaded remotely for additional sums, as required. Indian rupees have to be remitted to the bank for reloading the card.