Stock Market NSE BSE

Pullback Day Trading

2009-04-22T20:25:00.005+05:30

Pullback Day Trading

A stock you follow takes off and trends sharply. But you miss your entry and watch in frustration as it clears one hurdle after another. Finally it stops and reverses. As it pulls back on your 5-min chart and Level II screen, you have to decide whether or not to join the action. Predicting price movement when an intraday trend pulls back requires both skill and patience. Some corrections persist or roll over into ranges that empty trading accounts. But others quickly bounce and take off to new highs. How can you tell which outcome is more likely?
The first pullback from a breakout has high odds of rapidly ejecting in the direction of the new trend. But watch the depth of the correction. If it breaks through several minor support levels before reversing, sellers will likely emerge when price tests the short term high. This common scenario will still produce good trades. With enough reward between your entry and the short-term high, you can place a sell order 1/16th or 1/8th below the top and ride the bounce into a quick fill. Use a 6-Out rule to measure trend pullbacks. Start your count with the first bar lower than the parabolic extension of the trend. Watch for a pullback at the same angle as the trend itself or in a tight sideways pattern. The next trend leg should begin no later than the 6th congestion bar.
Why does this work? Many day traders set their short-term chart indicators to periods that measure 5 to 8 price bars. 6 bar corrections will often reflect short-term support at these common settings. If price does not eject, the next bar can signal a trend change and trigger waves of reflex selling by this fast-finger crowd.

Keep in mind that markets often move in 1-2-3 patterns. Countertrends follow a natural tendency to pullback, bounce and then pullback again before finding support. Traders often fool themselves by jumping on the first bounce rather than waiting for the corrective move to unwind. The deeper a stock corrects, the less likely it will take out the old trend high and break into another wave. For this reason, only tight and small 1-2-3 patterns signal new trend movement.

Use a short-term oscillator, such as Stochastics, to measure an intraday rally's duration. After each price thrust, odds decrease that the trend will continue. Oscillators measure the depth of this overbought condition and provide early warning when a pullback lasts too long. Set these indicators to watch the same signals that other traders use to make their decisions. Then plan your trades to step in front of their reactions.

10 Common Pitfalls Of Selling Short

2009-04-22T20:25:00.004+05:30

10 Common Pitfalls Of Selling Short

A pro recently joked the bear market will end when Joe Sixpack quits his job so he can sell short for a living. Of course, it was Joe who led the charge in the bull's final days, and got his head handed to him for the effort. In other words, it will be time to go long in a big way when the public finally gets around to selling short.
Short selling is the hottest game in town these days, for obvious reasons. But it's still not easy to make money selling first, and buying later. In fact, most of us can look at plummeting charts for hours, and still jump in at exactly the wrong time. This is one of the great truths of short selling.

Let's examine 10 common pitfalls of this classic trading strategy. After you review this list, you'll understand why the practice can cause so much pain. Keep in mind the bear environment actually makes short selling more difficult at times, because the market loves to punish the majority.

1. Choppy Sloppy -- This bear market shows tremendous overlap in daily price range for equities and indices. In other words, pick out today's high and low for a particular instrument, and tomorrow's market will probably trade through a portion of that range. Why is this a problem for short sellers? It undermines logical stop placement, and makes good entry prices harder to find.

2. Duck, Duck, Duck, Goose -- Price doesn't go anywhere most of the time, even in a bear market. The real declines tend to occur quickly, and in sudden bursts. This means you need to wait around for a seller's market to tap you on the shoulder, and/or get burned because your timing isn't perfect.

3. Too Many Bozos on This Bus -- Short selling makes a terrible group sport. Many stocks carry high short interest and attract frequent squeezes, regardless of how rotten the chart looks. And you're the most exposed playing the same tech stocks as everyone else.

4. Misguided Missiles -- So you think you're a wizard when it comes to resistance levels? Well, think again, Merlin. Support-resistance is three-dimensional, and price often goes further than you expect, up and down. This means you'll find yourself shorting into bear rallies that keep on going up, and up, and up. Until you give up and cover.

5. Tummy Bumpers -- Short sellers are their own worst enemies, and your stomach is the culprit. It twists and turns when it sees your short-sale tick up, one penny at a time. This particular agony is not the same as watching an investment take a dive. Our sense of gravity helps us rationalize those events a whole lot better.

6. Monkey See, Monkey Die -- It's often too late to sell short by the time you see a selloff gather steam. Those shorting from higher levels are already looking to cover by the time you think it's safe to sell short. They add buying power to the market when they close their positions. That's why you'll sell the bottom, and get crushed on a short squeeze.

7. Fear of Fleckenstein -- Sure it's the end of the world, but how does the chart look? You may hate a company and think it's going to hell, but you're going to lose money if the chart doesn't agree with you. You can't turn a profit by selling stories short. You need a stock to do that.

8. Tom and Jerry -- That cheese sure looks appetizing, but did you notice the spring-loaded mousetrap? The most obvious selling spots routinely trigger the most violent squeezes. This forces us to find the less-traveled path if we're serious about selling the market.

9. The Unbear Market -- This is a bear market, right? You may not be so sure if you look at the weekly charts. Many stocks and futures have gone sideways for the last 9 months, not straight down. This indicates a balance of buying and selling power, rather than a one-sided rout.

10. Calendar Cramps -- Short sale profits depend on the time of the month. Positions entered around option expiration get burned because of all the put/call unwinding. And buying power can surge near month's end, especially during window-dressing season. This can make a falling market float like a butterfly for a week or two.

Pattern Failure

2009-04-22T20:25:00.003+05:30

Pattern Failure

Patterns appear at the end of thrusting price movements. They are characterized by constricted swings between key support and resistance levels. Pattern development completes when a new trend leg breaks through this wall into directional price change. This new thrust may be in the same or opposite direction as the previous one. A pattern between adjacent price moves in a single direction continues that trend. Alternatively, when a breakout turns and retraces the last trend leg, the intervening pattern reverses the prior move.
You can categorize most patterns by their tendency toward continuation or reversal. This familiar bias underlies the predictive power of these structures. By their repeating nature, a well-marked chart landscape can be drawn to profit from the expected breakout. Use classic observation and well-chosen technical indicators to examine patterns as they develop. Their bullish or bearish nature can often be identified well before completion and exact entry points chosen where new price momentum will likely erupt.
But sometimes patterns won't do what the crowd expects.
One of the most powerful signals in pattern analysis flashes when a setup fails to act according to its tendency. This pattern failure often triggers sharp price movement in the opposite direction from the formation's natural bias. Have a contrarian entry system based on this reversal waiting in your trader's toolbox. But first exercise sound risk management as you recognize this event in progress and wait for ripe opportunity to appear.

Probability underlies all prediction. Through skilled observation or system-driven signals, technicians anticipate future price movement and enter trades they hope will profit from it. But the most common price patterns often fail to act as expected. Look to the edges of these rogue formations to identify trigger points where price signals a break in the low-odds, high-profit direction. One obvious example can be seen in the unexpected Tellabs rally after it drew a recognized reversal formation.

The classic Head and Shoulders reversal has been subject to intensive study over the last century. In fact, one popular investigation discovered this well-known pattern works only 79% of the time. While this figure lies well outside random outcome, it illustrates just how wrong you might be the next time you sell short at the H &S neckline.

Momentum Cycles

2009-04-22T20:25:00.001+05:30

Momentum Cycles

Neophytes quickly fall under the spell of fast moving markets. However, trading momentum is far more difficult than most participants admit. When the emotional crowd ignites sharp price movement, greed clouds risk awareness. The inexperienced trader reacts foolishly and chases positions just behind the big volume, where odds of a reversal quickly increase.
Prices rarely move in a straight line. As shocks destabilize a market, counter force emerges to restrain price back toward its stable state. An inevitable backward reaction follows each forward impulse. Burning the fuel of the crowd's money, markets seek equilibrium before proceeding with the next price thrust. Unskilled traders fail to consider this cycle when entering momentum trades. They blindly execute positions with a common and dangerous strategy: market entries on accelerating thrusts.
Lacking trailing stops and effective risk management, both good and bad positions bleed money as sharp countertrends destroy profits. As these inevitable reactions wind down, losses escalate as blind fear chooses the exact turning point to finally get out.

Consider both action and reaction when developing effective momentum trades. This demands complex planning and detached execution. One successful strategy requires trading opposite to natural bias: entries on counter trend reactions and exits on accelerating thrusts. This aligns positions to the underlying trend but against the current crowd emotion. Entries into accelerating momentum can also work when tight stops are placed and the trader exits into further acceleration. This eliminates risk associated with the inevitable pullback.

Choosing the wrong action-reaction trigger produces frustrating results. Every trader knows the pain of executing a low risk entry, riding a profitable trend, then losing everything on a subsequent reaction. Avoid this experience using clearly defined tactics to minimize emotional momentum trading. Supplement this discipline with multi-trend technical analysis
and cross-verification to identify profitable swing-points and locate natural escape routes.

Hell's Triangle

2009-04-22T20:23:00.001+05:30

Hell's Triangle

The classic Descending Triangle illustrates the painful rollover from bull to bear market better than any other pattern. But why does it work with such deadly accuracy? Most traders don't understand how or why patterns predict outcomes. Some even believe these important tools rely on mysticism or convenient curve fitting. The simple truth is more powerful: congestion patterns in technical analysis reflect the impact of crowd psychology on changes in price and momentum.
Shock and fear quickly follow the first reversal marking a triangle's major top. But many shareholders remain true believers and expect their profits will return when selling dissipates. They continue to hold positions as hope slowly replaces better judgement. The selloff then carries further than anticipated and their discomfort increases. Just as pain begins to escalate, the correction suddenly ends and the stock firmly bounces.
For many longs, this late buying reinforces a dangerous bias that they were right all along. Renewed confidence even prompts some to add to positions. But smarter players have a change of heart and view this new rally as a chance to get out. As they quietly exit, the strong bounce loses momentum and the stock once again turns and fails. Those still riding the issue now watch the low of the first reversal with much apprehension.

The classic Descending Triangle illustrates the painful rollover from bull to bear market better than any other pattern. But why does it work with such deadly accuracy? Most traders don't understand how or why patterns predict outcomes. Some even believe these important tools rely on mysticism or convenient curve fitting. The simple truth is more powerful: congestion patterns in technical analysis reflect the impact of crowd psychology on changes in price and momentum.

Shock and fear quickly follow the first reversal marking a triangle's major top. But many shareholders remain true believers and expect their profits will return when selling dissipates. They continue to hold positions as hope slowly replaces better judgement. The selloff then carries further than anticipated and their discomfort increases. Just as pain begins to escalate, the correction suddenly ends and the stock firmly bounces.

For many longs, this late buying reinforces a dangerous bias that they were right all along. Renewed confidence even prompts some to add to positions. But smarter players have a change of heart and view this new rally as a chance to get out. As they quietly exit, the strong bounce loses momentum and the stock once again turns and fails. Those still riding the issue now watch the low of the first reversal with much apprehension.

Prior countertrend lows present trading opportunities to those familiar with double bottom behavior. As price descends a second time toward the emotional barrier of the last low, short-term traders step in looking for a good DB play. Price again stabilizes near that prior value, encouraging new investors (with very bad timing) to enter final long positions.

By this time, the stock's bullish momentum has slowly drained through the criss-cross price swings. Relative strength indicators now signal sharp negative divergence but price continues to hold up well through this sideways development. Momentum indicators roll over and Bollinger Bands contract as price range narrows.

This double bottom appears to hold as a weak rally draws a third high. But this final bounce fades and traders exit quickly. Shorts now smell blood and enter initial positions. Fear increases and stops build just under the double low shelf. Price returns for one final test as negative sentiment expands sharply. Often, price and volatility then contract right at the break point.

The bulls must hold this line.

20 Golden Rules for Traders

2008-11-17T16:16:00.000+05:30

Want to trade successfully? Just choose the good positions and avoid the bad ones. Poor trade selection takes a heavy toll as it bleeds your confidence and wallet. You face many crossroads during each market day. Without a system of discipline for your decision-making, impulse and emotion will undermine skills as you chase the wrong stocks at the worst times.

Many short-term players view trading as a form of gambling. Without planning or discipline, they throw money at the market. The occasional big score reinforces this easy money attitude but sets them up for ultimate failure. Without defensive rules, insiders easily feed off these losers and send them off to other hobbies.

Technical Analysis teaches traders to execute positions based on numbers, time and volume. This discipline forces traders to distance themselves from reckless gambling behavior. Through detached execution and solid risk management, short-term trading finally "works".

Markets echo similar patterns over and over again. The science of trend allows you to build systematic rules to play these repeating formations and avoid the chase:

1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.

2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.

3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.

4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.

5. Don't buy up into a major moving average or sell down into one. See #3.

6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.

7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.

8. Trends test the point of last support/resistance. Enter here even if it hurts.

9. Trade with the TICK not against it. Don't be a hero. Go with the money flow.

10. If you have to look, it isn't there. Forget your college degree and trust your instincts.

11. Sell the second high, buy the second low. After sharp pullsbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.

12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.

13. Avoid the open. They see YOU coming sucker

14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.

15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.

16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.

17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.

18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.

19. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight.

20. Beat the crowd in and out the door. You have to take their money before they take yours, period.

Five Fibonacci Tricks

2008-09-11T13:02:00.000+05:30

Fibonacci jumped into the technical mainstream late in the bull market. Futures traders had it all to themselves until real-time software ported it over to the equity markets. Its popularity exploded as retail traders experimented with its arcane math and discovered its many virtues.

Fibonacci ratios describe the interaction between trend and countertrend markets -- 38%, 50% and 62% retracements form the primary pullback levels. Apply these percentages after a trend in either direction to predict the extent of the countertrend swing. Stretch a grid over the most obvious up or down wave, and see how percentages cross key price levels.
Convergence between pattern and retracement can point to excellent trading opportunities. Keep in mind that retracements work poorly in a vacuum. Always examine highs, lows and moving averages to confirm the importance of a specific level.

Discord between retracement and the underlying pattern generates noise instead of profit. Move on to a new chart when nothing lines up correctly. This divergence generates most of the whipsaw in a price chart. Alternatively, strong phasing between Fibonacci and pattern exposes highly predictive reversals at narrow price levels.

Let's look at five tricks to improve your Fibonacci skills. Add these twists and turns to your toolbox and apply them to your next trade. I promise they'll serve you very well in the years ahead.

First Rise/First Failure

First Rise/First Failure marks the first 100% retracement of a trend within your time frame of interest. It provides an early reversal warning after a new high or low. The 100% retracement violates the major price direction and terminates the trend it corrects. From this level, the old trend can reestablish itself if it breaks through the old 38% level. More often, traders will use that level to enter low-risk positions against the old trend.

Parabola Hunt

Parabolic movement tends to occur between the 0%-to-38% and 62%-to-100% Fibonacci levels in all trends. This tendency offers a great tool for finding the big moves when looking for trades. Watch for congestion to form at the 38% or 62% level. Then use a simple breakout or breakdown strategy when price moves past it. The next thrust can be dramatic, with price moving like a magnet back to an old high or low. Of course, the strategy only works when you can find these levels in advance.

Continuation Gap Extensions

You can often target the exact price a rally or selloff will end at by using the continuation gap as a Fibonacci extension tool. Identify the gap by its location at the dead center of a vertical price wave. Then start a Fib grid at the beginning of the trend and extend it so the gap sits under the 50% retracement level. The grid extension points to the terminating price for the rally or selloff.

Overnight Grids

Find an active stock and start a grid from the high (or low) of a session's last hour. Stretch the grid to the opposite end of the next morning's first hour low (or high). This defines a specific price wave traders can use to uncover intraday reversals, breakouts and breakdowns. The overnight grid also offers a way to trade morning gaps. The gap will often stretch across a key retracement level and target low-risk entry on a pullback.

Second High/Low

Many traders can't figure out where to start a Fib grid. Here's a trick to help you place it where it'll do the most good. The absolute high or low in a price wave isn't the best starting point for a grid most of the time. Instead, look for a small double bottom or double top within the congestion where the trend began. Swing one end of the grid over this second high (or low), instead of the first. This will capture a specific Elliott Wave that conforms to the trend you're trying to trade.

What is head and shoulder pattern?

2008-08-30T12:02:00.002+05:30

Head and Shoulders

Head and Shoulders patterns resemble the upper part of a person's body, specifically a shoulder on either side of a head. The line connecting the left and right armpit is referred to as the neckline.After a rise in the market, if a formation that looks like a head and shoulders is forming and price breaks through the neckline after completing the right shoulder, this indicates a possibility that a reversal of the price trend may occur.
A head and shoulders pattern can also occur at the market bottom. When it is at a bottom the formation is inverted, like someone upside down.Volume is usually highest during the left shoulder formation. As prices slip back, volume recedes, when a second rally forms, volume is again high, the head of the pattern is formed when surging prices and volumes begin to ease and fall back again. The trough between the head and the right shoulder must be below the peak of the left shoulder for the pattern to be considered a head and shoulder pattern.
The right shoulder is another rally in prices but typically volume is lower than the volume that created the left shoulder and the head. Once the head and shoulders formation is complete, a breakout down through the neckline can be a good indication that the trend of prices will continue in the direction of the breakout.

Price projections are identified by taking the point or percent change (dependent on the price of the security) between the Head and the Neckline. Then, that amount is projecting from the point of penetration of the neckline in the direction of the penetration after formation of the right shoulder. Price projections are only estimates and should accompany other supporting evidence in developing.

Sometimes head and shoulders patterns can be more apparent on indicators than in price action. The pattern is valid when it occurs on an indicator but does not mean a reversal of the price trend will necessarily occur. Momentum indicators like the MACD shown below can diverge from price for some time and so it is strongly recommended to wait for price reversal to occur before making trading decisions.

Source:Some Book

Brief History of Insurance in India

2008-08-26T03:11:00.001+05:30

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Some Insurance Plans

2008-08-26T02:38:00.001+05:30

ICICI Prudential Life Insurance

India´s Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India´s foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 680 offices, over 235,000 advisors, and 23 banc assurance partners.

ICICI Prudential Insurance providing following plans:
Life
Ques: What is Life Insurance?
Ans: Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance.

Ques: Key Benefits of Life Insurance?
Life insurance, especially tailored to meet financial needs

Need for Life Insurance Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

Asset Protection From an investor´s point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation.

Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house, education or marriage of their children. As one grows older, planning for one´s retirement will begin to take precedence. Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.

Human Life Value
Ques: What is your Human Life Value?
Ans: Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to the financial support you offer your parents, spouse or children. This worth is referred to as Human Life Value (HLV). In the future, if your family does not have the protective blanket of your presence, they will no longer be able to enjoy the benefits of the income you earned. Put simply, Human Life Value is the present value of your future earnings.

Ques: Why should you calculate your Human Life Value?
Ans: You should calculate your Human Life Value so you can accordingly invest in insurance plans that provide your family with adequate finances and hence security even in your absence.

Ques: How do you determine your Human Life Value?
Ans: Your Human Life Value is determined by 3 factors:
1. Your age
2. Current and future expenses
3. Current and future income

As a thumb rule, if you are 30 years of age, you should insure yourself for an amount approximately 8 times your annual income. At 35, your investment should be close to 6 times your income.

Life Stage Profiler
All through your life, several significant events the birth of your child, moving to a larger home, his or her education and wedding, buying a new car, retiring from work will occur at various stages and demand your financial commitment. If you plan in advance for these events, you will quite naturally be prepared when they occur.
Life insurance is an effective tool that assists you to plan for your future such that you are financially equipped to meet all your goals.

Ques: Which important goals should you plan for in advance?
Ans: 1. Your family´s protection: So that your loved ones are secure should an unfortunate event happen to you. Life insurance can guarantee that your family receives a lump sum that safely tides them over any financial crises that might occur in your absence.

2. Child´s education: As parent, your primary responsibility is to guarantee your children´s future. Our Education Insurance plans ensure your child receives money at key stages of his or her education even in your absence.

3. Savings: Savings plans allow you to steadily save towards a pre-decided goal in a secure manner. These plans provide you with a host of benefits. You can choose the premium, the underlying fund in which you want to invest your money, the ratio between protection and investment as per your requirements.

4. Retirement: Retirement plans help you secure guaranteed income for your retired life. During the Accumulation phase, you systematically save while you are working. When you retire, the Payout stage of the plan begins. You then purchase an annuity, which will serve as a steady stream of income, for the rest of your life.

6. Health: An integral part for financial planning is protecting oneself against any medical emergencies as well. Hence, a very prudent decision would be to choose a combination of plans that look after your finances and offer you a protective health cover to ensure your financial planning is in track despite any major illnesses.

Life Stage Profiler
Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments:

Unit Linked Insurance Product
ULIPs have gained high acceptance due to attractive features they offer. These include:

1. Flexibility
• Flexibility to choose Sum Assured.
• Flexibility to choose premium amount.
• Option to change level of Premium / Sum Assured even after the plan has started.
• Flexibility to change asset allocation by switching between funds.

2. Transparency
• Charges in the plan & net amount invested are known to the customer.
• Convenience of tracking one´s investment performance on a daily basis.

3. Liquidity
• Option to withdraw money after few years (comfort required in case of exigency)
• Low minimum tenure.
• Partial / Systematic withdrawal allowed.

4. Fund Options
• A choice of funds (ranging from equity, debt, cash or a combination).
• Option to choose your fund mix based on desired asset allocation.

Traditional Plans
These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment
• Major chunk of ingestible funds are in debt instruments.
• Steady and almost assured returns over the long term.

2. Features
• Death benefit is Sum Assured + guaranteed & vested bonus.
• Helps in asset creation as they are for a long tenure.
• Premium to Sum Assured ratios are fixed for each plan and age.
• Generally withdrawals are not allowed before maturity.

Life Insurance Plans
Education Insurance Plans
One of your most important responsibilities as a parent is to ensure that your child gets the best possible education that can be provided.

ICICI Prudential offers a wide portfolio of education insurance plans that are designed to provide peace of mind to you, as a parent, that your child´s education will be secure. These plans ensure that money is made available at the crucial junctures in a child´s education - Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the child´s future. Importantly, education insurance plans ensure that in the unfortunate event of the death of a parent, the child´s education continues unhampered.

Under the education insurance plans platform, ICICI Prudential brings the following products to you. • SmartKid New Unit-Linked Regular Premium.
• SmartKid New Unit-Linked Single Premium.
• SmartKid Unit-Linked Regular Premium.

Wealth Creation Plans
Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. Wealth creation plans offer the customer more liquidity options as compared to traditional plans. As such, ULIPs are ideal for customers who want the protection of a life cover to be allied to the returns of market-linked instrument – giving them an unmatched combination of benefits.

Under the wealth creation platform, ICICI Prudential brings the following:
• LifeTime Super.
• LifeLink Super.
• PremiumLife Gold.
• LifeTiem plus.

Premium Guarantee Plans The latest addition to the life insurance product portfolio of ICICI Prudential is the Premium Guarantee plan - InvestShield Life New. Premium Guarantee plans are the ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns of a market-linked instrument, but without taking any market risk.

Under the Premium Guarantee Plans platform, ICICI Prudential brings to you the following products: • InvestShield Life New
• InvestShield CashBak.

Protection Plans
The sole objective of these plans, as their name indicates, is to serve the protection needs of the customer and by doing so, safeguard one´s family from the financial implications of unfortunate circumstances than one cannot foresee.

Under the Protection Plans platform, ICICI Prudential brings to you the following products:
• Lifeguard
• Save & Protect
• CashBack
• Home Assure

Retirement
Ques: Why is retirement planning important?
Ans: A retirement plan is an assurance that you will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when you are no longer working. To understand why an increasing number of individuals have already started planning for their retirement, and why you should too, read on.

Independence is the new way of life: An increasing number of young Indian professionals are moving away from the traditional joint family structure. Since support no longer comes easily, parents have realized the need to provide for themselves during their retirement years.

Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance. With rates rising everyday, you can imagine how high they will be when you are ready to retire. A retirement plan provides you with a steady income every month, to arm you in the face of rising costs.

Non-earning retirement phase is now longer: Only 4% of India working population- mostly government employees – are covered by pensions. The remaining 96% comprises self-employed and salaried professionals who do not have a formal, mandated provision for pensions.

Ques: Why start planning for retirement right away?
Ans: Both Ramesh and Vikram want to retire at the age of 60 years. To take care of his post-retirement requirements, Ramesh invests a total amount of Rs. 35 lakhs towards his retirement corpus. On the other hand, Vikram invests a total of Rs 50 lakh towards his retirement. Despite investing less, Ramesh accumulates Rs 298 lakh, compared to Vikram´s accumulation of Rs 216 lakh!. Read on to find out how..

What Ramesh had in his favour been TIME? He began investing a sum of Rs 1 lakh p.a. earlier, at the age of 25 years, up to the age of 60. Ramesh, to compensate for lost time, saved twice the amount invested by Ramesh i.e. Rs. 2 lakhs every year from the age of 35, till the age of 59 years.

It is for this precise reason you should plan for your retirement now-and not later; so you get the advantage of investments that multiply quickly each year, giving you the added advantage!
The graph above shows the retirement amount both Ramesh and Vikram accumulate by the age of 60 years.
Please note: The assumption is that both investments appreciate at the rate of 10% per annum.

Ques: How to plan for retirement?
Ans: 5 simple steps to arrive at an ideal retirement plan:

Step 1: Decide how much income you require to live comfortably in your post-retirement years. Remember to take into account aspects like increased medical costs, vacations and gifts for family, but reduce costs like children´s education and rent, if you own your home. Use our easy Inflation Index Calculator to calculate the impact of inflation.

Step 2: Determine how much you need to save regularly, starting today. Use our Retirement Calculator to determine how large a kitty you will need and how much you need to save each year.

Step 3: Select the right retirement plan that enables you to meet your post-retirement requirements. Preferably invest in market-linked plans, which can provide you with potentially higher returns in the long run. Our Life Stage Profiler will help you select the plan that meets your criteria.

Step 4: Start saving now so you have time on your side and can enjoy the power of compounding. Use our simple Power of Compounding Calculator.

Step 5: Systematically invest a fixed amount every month for your post-retirement years.

ULIP Vs Traditional
Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments:

Unit Linked Insurance Product
ULIPs have gained high acceptance due to attractive features they offer. These include:
1. Flexibility
• Flexibility to choose Sum Assured.
• Flexibility to choose premium amount.
• Option to change level of Premium / Sum Assured even after the plan has started.
• Flexibility to change asset allocation by switching between funds.

2. Transparency
• Charges in the plan & net amount invested are known to the customer.
• Convenience of tracking one’s investment performance on a daily basis.

3. Liquidity
• Option to withdraw money after few years (comfort required in case of exigency).
• Low minimum tenure.
• Partial / Systematic withdrawal allowed.

4. Fund Options
• A choice of funds (ranging from equity, debt, cash or a combination).
• Option to choose your fund mix based on desired asset allocation.

Life Insurance Plans
These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment
• Major chunk of ingestible funds are in debt instruments.
• Steady and almost assured returns over the long term.

2. Features
• Death benefit is Sum Assured + guaranteed & vested bonus.
• Helps in asset creation as they are for a long tenure.
• Premium to Sum Assured ratios is fixed for each plan and age.
• Generally withdrawals are not allowed before maturity.

Types of Annuity
An annuity is a series or stream of payments. In the context of retirement planning, an annuity is a contract between you and the insurance company under which the insurance company promises pays you money for a stipulated period-often for life. You, the person receiving the payments, are the "annuitant".

Types of annuity options offered by ICICI Prudential:

Life Annuity: In this plan, you receive annuities for as long as you live. Payments are no longer made after your demise.

Life Annuity with Return of Purchase Price: You receive annuities for as long as you live and your nominee receives the purchase price of the policy after demise. The purchase price refers to the value of your investment corpus at the end of the accumulation phase (with which the annuity was purchased).

Life Annuity Guaranteed for 5, 10 and 15 Years and Life Thereafter: You receive annuities for a minimum term i.e. 5, 10 or 15 years. Annuities continue for life thereafter. If death occurs before the end of the pre-decided term, the company pays the annuity till the end of that term to the nominee.

Joint Life, Last Survivor Annuity without Return of Purchase Price: Both your spouse and you will receive annuities for life.

Joint Life, Last Survivor Annuity with Return of Purchase Price: Both your spouse and you will receive annuities for life. After this, the purchase price is returned to your nominee.

Retirement Solutions
To cater to the needs of a customer looking for retirement planning, ICICI Prudential presents a wide array of products. These products have been designed to take into account the diverse set of needs that characterize individual customers. Please click on the plans to know more about them and identify which plan is just right for you.
• LifeTime Super Pension
• LifeLink Super Pension
• ForeverLife
• Immediate Annuity

Health
Health Cover Corner

Indians at greater risk
Reason 1: Lifestyles have changed: Indians today suffer from high levels of stress. Long hours at work, little exercise, disregard for a healthy balanced diet and a consequent dependence on junk food have weakened our immune systems and put us at an increased risk of contracting illnesses.

Reason 2: Rare non-communicable diseases now common: Obesity, high blood pressure, strokes, and heart attacks, which were earlier considered rare, now affect an increasing number of urban Indians-almost every day.

Shocking Truths
• 18% of the urban population suffers from hypertension, which leads to renal failure, stroke and cardio vascular diseases.
• 30% of the population suffers heart attacks before age 40.
• 66% of deaths today are due to cardio vascular diseases.
• Almost 3.5 million Indians suffer from diabetes.
• Cardiovascular diseases (CVDs) like heart disease and stroke are the main causes of death and disability.

The Cost Factor
Reason 3: Medical care is unbelievably expensive: Medical breakthroughs have resulted in cures for dreaded diseases. These cures, however, are available only to a select few. High operating expenses—therapy for breast cancer costs as much as Rs. 2 lakhs for 3 days—have restricted treatment to the richest. In fact, even among the affluent groups, 20% need to sell their valuable assets so they can accumulate the required amount for their medication.

Reason 4: Indirect costs add to the financial burden: Indirect sources of expense—travel, boarding and lodging, and even temporary loss of income—account for as much as 35% of the overall cost of treatment. Most often, we overlook this fact when planning for medical expenses.

Reason 5: Incomplete financial planning: Most of us have insured our home, vehicle, child´s education, and even our retirement years. Ironically however, we have not insured our health. We ignore the fact that illnesses strike without warning—and seriously impact our finances and eat into our savings in the absence of a good health cover.

Health Product Suite
Under Health Product Suite, ICICI Prudential offers plans under the following major need categories:
• HealthAssure
• HealthAssure Plus
• Hospital Care
• Cancer Care
• Cancer Care Plus
• Crisis Cover
• Diabetes Care
• Diabetes Care Plus

Life Insurance Corporation

As per LIC Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:
• The date of maturity, or
• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates ‘risk’, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilization´s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:

1. That of dying prematurely leaving a dependent family to fend for itself.
2. That of living till old age without visible means of support.

LIC providing following plans:

Insurance Plans
As individuals it is inherent to differ. Each individual insurance needs and requirements are different from that of the others. LIC Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Child Plans
Jeevan Anurag
Benefits
LIC´s Jeevan ANURAG is a, with profits plan specifically designed to take care of the educational needs of children. The plan can be taken by a parent on his or her own life. Benefits under the plan are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. In addition, this plan also provides for an immediate payment of Basic Sum Assured amount on death of the Life Assured during the term of the policy.

Assured Benefit
Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. At maturity, 40% of the Basic Sum Assured along with reversionary bonuses declared from time to time on full Sum Assured for the full term and the Terminal bonus, if any shall be payable. For example, if term of the policy is 20 years, 20% of the Sum assured will be payable at the end of the 17th,18th, 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus, if any, at the end of the 20th year.

Death Benefit
Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured.

Age at entry Age of the Life Assured- 20 to 60 years (age nearest birthday)
Age of the Life Assured at maturity Maximum 70 years (age nearest birthday)
Term All terms from 10 to 25 years. In case of single premium mode minimum term shall be 5 Years.
Minimum Sum Assured Rs. 50,000 /-
Maximum Sum assured No limit. Sum Assured will be in multiples of Rs.5, 000 /- only.
Mode Yearly, Half yearly, Quarterly, Monthly or through salary deductions in case of regular premiums.

For Term Assurance Rider
Age at entry Age of the Life Assured- 20 to 50 years (age nearest birthday)
Age of the Life Assured at maturity Maximum 60 years (age nearest birthday)
Term NIL
Minimum Sum Assured Rs. 1,00,000 /-
Maximum Sum assured An amount equal to the Sum Assured under Basic Plan subject to the maximum of Rs. 25 lakh overall limit taking all term assurance riders availed under all existing policies of the life assured and the term assurance rider under the new proposal into consideration.
Mode NIL

The Term Assurance Rider Sum Assured will be in multiples of Rs.25,000 /-

For Critical Illness Rider
Age at entry Age of the life Assured- 20 to 50 years (age nearest birthday)
Age of the Life Assured at maturity Maximum 60 years (age nearest birthday)
Term NIL
Minimum Sum Assured Rs. 50,000 /-
Maximum Sum assured An amount equal to the Sum Assured under Basic Plan subject to the maximum of Rs. 5 lakh overall limit taking all critical illness riders availed under all existing policies of the life assured and the critical illness rider under the new proposal into consideration.
Mode NIL

The Critical Illness Rider Sum Assured will be in multiples of Rs.10,000 /-

CDA Endowment Vesting At 21
Features
Product Summary
This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child´ life starts from the Deferred Date and is available during the latter period.

Bonuses:
This is a with-profits plan and participates in the profits of the Corporation´s life insurance business after the deferred date. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan.

Benefits

Death Benefit:
The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the deferrement period. If death occurs before the deferrement period all premiums paid is refunded.

Maturity Benefit:
Sum assured along with all bonuses declared up to maturity date is payable in lump sum.

CDA Endowment Vesting At 18
Features
Product Summary
This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child´s life starts from the Deferred Date and is available during the latter period.

Benefits

Death Benefit:
The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the deferrement period. If death occurs before the deferrement period all premiums paid is refunded.

Maturity Benefit:
Sum assured along with all bonuses declared up to maturity date is payable in lump sum.

Jeevan Kishore
Features
Product Summary
This is an Endowment Assurance Plan available for children of less than 12 years of age. The policy may be purchased by any of the parent / grand parent.

Bonuses:
This is a with-profits plan and participates in the profits of the Corporation´s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided policy has run for certain minimum period.

Benefits

Death Benefit:
The Sum Assured along with vested bonuses, if any, is payable in a lump sum upon the death of the life assured after the commencement of the risk. If death occurs before the commencement of the risk, the premiums paid excluding the premiums for the Premium Waiver Benefit, if any, will be refunded.

Premium Waiver Benefit:
This is an optional benefit that can be added to your basic plan. An additional premium is required to be paid for this benefit. By payment of this additional premium, the proposer can secure the benefit of cessation of premiums from his/her death to the end of the deferment period. The deferment period for this purpose is to be taken as 18 minus age at entry of child.
Child Career Plan
Features
Introduction
This plan is specially designed to meet the increasing educational and other needs of growing children. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations.

Benefits
Survival Benefit:
On life assured surviving to the end of the specified durations an amount specified below is payable:
5 years before the date of expiry of policy term 30% of the Sum Assured along with vested Simple Reversionary Bonuses
4 years before the date of expiry of policy term 15% of the Sum Assured
3 years before the date of expiry of policy term 15% of the Sum Assured
2 years before the date of expiry of policy term 15% of the Sum Assured
1 years before the date of expiry of policy term 15% of the Sum Assured
On the date of expiry of policy term 15% of the Sum Assured along with Final (Additional) Bonus, if any.
Death Benefits:
On death (after the Date of Commencement of Risk)
(i) If death occurs within the period from date of commencement of risk to 5 years before the date of expiry of policy term: Sum Assured along with Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any) is payable.

(ii) If death occurs within 5 years before the date of expiry of policy term: Sum Assured along with Final (Additional) bonus (if any) is payable.

On death during the Extended Term - Sum Assured is payable.

On death (before the Date of Commencement of Risk) - All the premiums paid (excluding extra premium and premium for premium waiver benefit, if any,) along with interest of 3% p.a compounding yearly shall be payable.

Komal Jeevan
Features
Product Summary
This is a Children´s Money Back Plan that provides financial protection against death during the term of plan with periodic payments on survival at specified durations. This plan can be purchased by any of the parent or grand parent for a child aged 0 to 10 years.

Benefits

Survival Benefit:
The percentage of sum assured as mentioned below will be paid on survival to the end of specified durations:
On the policy anniversary immediately following the Life assured attains the age of % Of Sum Assured
18 Years 20%
20 Years 20%
22 Years 30%
24 Years 30%
Death Benefit:
In case of death of the life assured before the commencement of risk, the policy shall stand cancelled and premiums paid (excluding the Premium for Premium waiver Benefit ) under the policy will be refunded. However, if death occurs after the commencement of risk but before the policy matures, the full Sum Assured plus Guaranteed Additions together with Loyalty Additions, if any, is payable.

Maturity Benefit:
The Guaranteed Additions together with Loyalty Additions, if any, is payable in a lump sum on survival to the end of the policy term.
Plans for Handicapped Departments
Jeevan Adhar
Features
Product Summary
This plan may be offered to a person who has a handicapped dependant satisfying conditions as specified in Section 80DDA of Income Tax Act, 1961. The plan provides life insurance cover throughout the lifetime of the purchaser. The benefits under the plan are for the handicapped dependant which are partly in lump sum and partly in the form of an annuity.

The premiums paid under this plan are eligible for Income Tax relief under Section 80DDA of Income Tax Act.

Benefits

Death Benefit:
On the death of the Life Assured, Sum Assured together with the Guaranteed Additions and terminal additions, if any, become payable. 20% of such benefit amount shall be paid in lump sum and the balance amount shall be utilized to provide an annuity of 15 years certain and for life thereafter on the life of the handicapped dependant. The annuity rates are guaranteed for this purpose.

If the handicapped dependant predeceases the Life Assured during the premium paying term of the policy, the contract ceases and the Life Assured will have the option of either keeping the policy for a reduced paid-up Sum Assured or receive the refund of premiums. Death Benefit:
In case of death of the life assured before the commencement of risk, the policy shall stand cancelled and premiums paid (excluding the Premium for Premium waiver Benefit ) under the policy will be refunded. However, if death occurs after the commencement of risk but before the policy matures, the full Sum Assured plus Guaranteed Additions together with Loyalty Additions, if any, is payable.

Maturity Benefit:
The Guaranteed Additions together with Loyalty Additions, if any, is payable in a lump sum on survival to the end of the policy term.

Jeevan Vishwas
Features
Product Summary
This is an Endowment Assurance plan designed for the benefit of handicapped dependants.

Benefits

Benefits on maturity or earlier death:
On surviving till the end of the term of the policy or earlier death, Sum Assured together with the Guaranteed Additions and Loyalty Additions, if any, become payable. 20% of such benefit amount shall be paid in a lump sum and the balance amount shall be utilized to provide an annuity on the life of handicapped dependant. A number of annuity options are available under the plan.

Supplementary / Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Endowment Assurance Plans
The Endowment Assurance Policy
Features

This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time.

Bonus:
Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but only if it is a ‘with profits’ policy. Every year the Life Insurance Corporation distributes its surplus among policyholder to ‘with profits’ polices in the form of bonuses. Substantial bonuses have been declared in the past after each valuation of policy liabilities.

Benefits
This is the most popular form of life assurance since it not only makes provision for the family of the Life Assured in the event of his early death, but also assures a lump sum at any desired age. The amount assured, if not paid by reason of his earlier death, becomes payable at the end of the endowment term when it may be invested to provide an annuity during the remainder of his life or in any other way he may think most suitable at the time.

The Endowment Assurance Policy-Limited Payment
Features
Just as in the case of limited payment whole life polices, here, too, the payment of premium can be limited either to a single payment or to a term shorter than the policy. The endowment is, however, payable only at the end of the policy term, or on death of the policyholder if it takes place earlier.

If payment of the premiums ceases after at least three years´ premiums have been paid, a free paid-up Policy for an amount bearing the same proportion to the sum assured as the number of premiums actually paid bears to the number stipulated for in the policy, will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than Rs.250.

Benefits
This is the most popular form of life assurance since it not only makes provision for the family of the Life Assured in the event of his early death, but also assures a lump sum at any desired age. The amount assured, if not paid by reason of his earlier death, becomes payable at the end of the endowment term when it may be invested to provide an annuity during the remainder of his life or in any other way he may think most suitable at the time.

Jeevan Mitra (Double Cover Endowment Plan)
Features
Product summary
This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.

Benefits

Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term.

Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Jeevan Mitra (Triple Cover Endowment Plan)
Features
Product summary
This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.

Bonuses
This is a with-profit plan and participates in the profits of the Corporation´s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

Benefits

Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term.

Supplementary / Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Jeevan Anand
Features
Product summary:
This plan is a combination of Endowment Assurance and Whole Life plans. It provides financial protection against death throughout the lifetime of the life assured with the provision of payment of a lump sum at the end of the selected term in case of his survival.

Bonuses:
This is a with-profit plan and participates in the profits of the Corporation´s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period.

Benefits
Benefits in case of death during the selected term:
The Sum Assured along with the vested bonuses is payable on death in a lump sum.

Benefits in case of survival to the end of selected term:
The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the end of the term. An additional Sum Assured is payable on death thereafter.

Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on death due to accident up to age 70 of life assured. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in installments.

Supplementary / Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

New Janaraksha Plan
Features
Product summary:
This is an Endowment Assurance plan that provides financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the term.

Bonuses:
This is a with-profit plan and participates in the profits of the Corporation´s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

Benefits
Death Benefit:
The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured during the policy term.

Accident Benefit:
The Sum Assured (subject to a limit of Rs.5 lakhs) is payable in a lump sum on accidental death of the life assured during the policy term. In case of permanent disability of the life assured due to accident during the policy term, this benefit is payable in installments.
Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term.

Jeevan Amrit
Features
Product summary:
Some people, particularly the younger ones, want to have high cover at a low cost. Further, many of them do not want commitment to pay premiums for a longer duration. LIC´s Jeevan Amrit is most suitable for such persons. Under this plan premium payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher than the premiums payable in subsequent years.

Benefits
Death Benefit:
An amount equal to Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus (if any) is payable in lump sum immediately on death of the Life Assured during the term of the policy.

Maturity Benefit:
Payment of total amount of premiums (excluding extra premiums, if any) paid along with vested Reversionary Bonuses and Final (Additional) Bonus, if any, in case of Life Assured surviving to the end of the term.

Plan for High worth Individuals
Jeevan Shree-I
Features
Product summary:
This is an Endowment Assurance plan offering the choice of many convenient premium-paying terms. It provides financial protection against death throughout the term of plan with the payment of maturity amount on survival to the end of the policy term.

Bonuses:
The policy participates in the profits of the Corporation´s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Basic Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the plan.

Benefits
Death Benefit:
The Sum Assured along with guaranteed additions and vested bonuses, if any, is payable in a lump sum on death of the life assured during the policy term.

Maturity Benefit:
The Sum Assured along with guaranteed additions and reversionary bonuses, if any is payable in a lump sum on survival to the end of the policy term.

Supplementary / Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Jeevan Pramukh
Features
Here´s an exclusive policy for people with an exclusive lifestyle. Whether you´re a professional, industrialist, estate owner, NRI, film star, or an individual successful in your own area of work. This is a policy that offers insurance protection match your profile.

Bonuses :
The policy participates in the profits of the Corporation´s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the policy.

Benefits: Death Benefit:
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on death of the life assured during the policy term.

Maturity Benefit:
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on survival to the end of the policy term.

More in my next posts.

Today's Tutorial[09-08-08]

2008-08-09T09:45:00.001+05:30

Basic Rules for A NewBie

There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below.

1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.

2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.

Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.

3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes rule."

4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.

A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.

5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.

6. The trend is your friend (until the end!). Since the trend is the basis of all profit, we need powerful trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.

7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient condition to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading “system” in itself.

8. The Efficient Market Hypothesis may be fallacious and may actually be a derivative of the perfect competition model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist.

The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn.

The combination of superior information for some investors and the usual panic as losses mount caused by buying high and selling low for others, creates inefficient markets.

9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people employ.

If you eliminate optimization, data mining, subjectivism, and other such statistical tricks and data manipulation, most trading ideas are losers.

10. Be careful re the advice and/or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, newsletter publishers, trading authors, etc - often they have a vested interest.

Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.

11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience.

You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.

Since your starting point is critical in determining your total return, if you buy low, your long term investment results are irrefutably better than someone that bought high.

12. The most successful swing trading investing methods should take most individuals no more than four or five hours per week and, for the majority of us, only one or two hours per week with little to no stress involved.

Reply to ur query

2008-08-05T20:24:00.005+05:30

@Deepak

Apollo tyres is a good company to remain invested in.it has an eps of abt 4.35.the company will regain its levels where u bought by 6-9months and may go 5-10 points further.so if u keep it as a long term investment,i think u ll make decent returns out of it coz the EPS is expected to rise to 6 in abt 1.5-2yrs time.

For others i wud recommend a buy on it with a taget of 46-48 in 9-12months.

Hope my advice ll help u maximize ur profits.

Todays Tutorial--Few Terms

2008-08-04T07:28:00.003+05:30

bear - an investor who sells his stocks, and gambles on buying it back at a lower price.

bear market - a market where stock prices are falling, favoring a bear.

block trade - a transaction involving over 10,000 shares.

blue chip - the highest and best shares to buy. Comes from poker, where a blue chip is the most valuable.

broker - the person who can order stocks to be bought or sold.

bull - an investor who buys stocks, and gambles on selling it at a higher price.

bull market - a market where stock prices are rising, favoring a bull.

close - the final price of the stock at the end of the trading day.

closely held corporation - a corporation that only allows a few people to invest in it, such as friends and relatives.

commission - the profit that a broker gets every time you buy or sell a stock through him or her.

cyclical stock - a stock that tends to rise and fall with the economy.

dip - a drop in the price of a stock that is temporary, making it the ideal time to buy the stock.

discount brokers - a simple broker that only takes orders on buying and selling.

fundamental analysis- a method of stock analysis based on the management of the company and past stock movements.

going public - when a company puts their stock up for sale.

gross - value before tax.

growth stocks - stocks that pay low dividends, but are expected to grow.

high - the highest price of the stock during the trading day.

home run - a referral to an investors large gain in a short period.

hostile takeover - a company or person that tries to buy a controlling amount of stocks in a company in order to control it. Usually this is not for the good of the company, and is similar to raiders.

hot stock - a stock whose price rises quickly the day it goes public.

income stocks - stocks that have consistently paid high dividends.

Initial Public Offering (IPO) - The formal name for going public.

limit order - an order that limits the price the broker can buy or sell at.

limit order to sell - an order to sell stocks only if they can be sold at a certain price.

low - the lowest price of the stock during the trading day.

market order - an order to buy or sell at the best price available.

market trend - the upward or downward movement of a market for six months or more.

odd lot - an amount of stocks that is not the usual trading number.

portfolio - a collection of stocks that is owned by an investor.

privately held corporation - a corporation that allows only a select group of people to purchase stock.

proxy ballot - a voting ballot that allows you to control what happens with the company you have stock in.

publicly held corporation - a corporation that allows anyone in the public to purchase their stock.

raiders - a person or group of people that attempt to buy over 50% of the shares of a company in order to control the company by using the voting power of the stocks.

round lot - an amount of stocks that is the usual trading number, such as 100 on the Sensex.

shareholder - a person who buys stock in a corporation, and therefore becomes a part-owner of the corporation.

stag - an investor who buys and sells stocks rapidly, usually to make profits quickly.

stock certificate - the actual piece of paper that is evidence of stock ownership, usually watermarked and patterned to make itself hard to forge.

stockbrokers - a broker that in addition to taking orders, also offers advice on investing.

stop order - an order to sell all stocks if the price of the stock drops to a certain point.

technical analysis - an analysis of a stocks future based strictly on numbers, such as earnings, sales, and assets.

tombstones - the advertisments that are put out when a company goes public.

white knight - a person or company that saves another company from an unwanted hostile takeover.

yo-yo stock - a stock with a price that often rises and often drops rapidly.

Today's Tutorial[19-7-08]

2008-07-19T13:40:00.000+05:30

How to track a stock??

To track how your stocks are doing, you have to look at stock listings. Stock listings are published in just about every newspaper. The listings look confusing at first, since they look like a mixture of numbers, but can be a very useful tool when tracking your stock's progress. The listings are organized into many columns, including the following information : 52 weeks high and low, company name, symbol, dividend, percent yield, PE ratio, volume, high, low, close and net change.

52 weeks high and low This field is a good indicator about a stocks volatility. Volatility is an indicator of the riskiness and potential for profit that the stock has. The greater the difference between the high and low, the riskier the stock is for loss and gain. If the difference between the high and low is small, then there is little potential for either loss or gain.

Company name - This field is usually abbreviated in the listings, and listed alphabetically.

Symbol - This field is a one to four character symbol used as a sort of nickname for the company.

Dividend - This field is listed in dollar format, and it is the cash amount of money that the company will pay you each year for each stock.

Percent yield - This field is calculated by dividing the dividend by the closing price. It just tells you how much of the price of the stock you will be paid in dividends each year.

PE ratio - The price-earnings ratio calculates the relationship between the price of a company's stock, and the annual earnings of a company. It is calculated by divinding the closing price of the stock by the earnings per share of each stock.

Volume - The volume is the amount of stocks that were traded the day before. This number is given in hundreds, so to get the actual number of stocks traded, multiply the number in that field by one hundred. If a small z is before the number, then the volume is not given in hundreds, and is the actual number of stocks traded.

High, low and close - These are the highest and lowest prices of the stock the day before, and the closing price for the day before. This is an indicator of how much the price of the stock fluctuated throughout the previous day.

Net change - This is the change of the price of the stock from the previous day. This gives you an idea whether the price is dropping or rising.

In addition to the stock listings, stock price charts can sometimes offer a better view of how the stock is doing. The price charts graphically organize the value of the stock over time. The charts can give you information on the company's historical performance, the stock's stability or volatility, the stock's current price relative to the past, and the stock's growth rate.

@ Ashish

2008-07-17T16:35:00.001+05:30

Sorry,bro there was some problem wid the chat box,dint get ur query properly;plz resend it.

Reply to ur queries

2008-07-14T21:53:00.002+05:30

@DINS

I wud advise u to increase the time of ur investment coz i c a fall,much awaited coming in 1-2months,there after the markets may take atleast 1yr to recover.so my advise wud b invest atleat wid a span of 9-12months.
Here are the support n resistance levels for the stocks u mentioned.

Tata Motors S=372,365 R=426,432
HDFC Bank S=990,978 R=1112,1130
RIL S=1860,1780 R=2124,2160
SPICEJET I advise u to b away from this stock,dont buy....

Today's Tutorial[12-7-08]

2008-07-12T02:59:00.003+05:30

The first step when buying stocks is to decide what company to buy stock in. You can buy stock in any publicly held corporation, which means that the public can control the corporation. You cannot buy stock in a privately held or closely held corporation, which are corporations that are controlled either by a small group of individuals or by close friends and family. Fortunately, most of the larger companies are publicly held, and you can buy from them. When selecting a company to invest in, you should make sure they are in a strong industry, and make sure the company is strong or growing. For example, INFOSYS is a large company that is one of the strongest in the IT industry. This would make it a good stock to invest in, although finding a newer company that is growing rapidly might get you more profits quicker. Choosing the company to invest in is no easy job, and there are many different methods people have come up with to select one. Fundamental analysis is one method, in which you study the company's current management and position in the market. Technical analysis is another method which is totally based on charts, in which you indentify trends the company has, and invest accordingly. One popular method is just throwing darts at the stock page, which often beats out all the other methods.

After you decide what company to invest in, you need to find a broker. A broker is the only person that can make an order to buy or sell stocks. There are two types of brokers that every brokerage firm has. The first type of broker is a stockbroker, who researches investments, helps make goals, and give advice on investing. Discount brokers on the other hand, do not offer advice, and they do no research. They just are middle men in the transactions. When you give a stockbroker your order, they relay the order to the floorbrokers. The floorbrokers do all the actual buying and selling, and they hold a seat on the exchange.

After you find a broker and buy the stocks, the broker does the rest of the work. You just have to call him up and place an order with him. The most basic order is the market order, where you just ask the broker to buy or sell your stocks at the best price he can get his hands on. Another type of order which takes more research and predicting on your part is a limit order. In a limit order, you tell the broker to trade only when the stock is at a certain price or better. A stop loss an order which can save you from extreme loss. In a stop order, you tell the broker to sell your shares if the stock drops too low, and you tell him the price not to let it drop below.

Reply to ur query

2008-07-09T10:14:00.000+05:30

@ Dinesh

Buy Nifty 4000 July PUT at Rs102 or less with SL of Rs88 for target of Rs130-135

Reply to ur queries

2008-07-09T00:00:00.004+05:30

@ Malli

The overall effect of the left withdrawing the support hasnt been a negative one.Its rather good.The only thing that ll affect the market is the fact that whether the Govt manages to gain support in the parliament.If the govt falls then it ll b bad for the market,but if the govt manages to get to the magic figure of 272 then it ll b certainly good for the Market

This ll mean that the 123 agreement,US N-Deal ll come through wch ll ensure supply of the Nuclear fuel mainly uranium in power starved india.SO it is the main factor.

SP has supported Govt but still its short of MPs,So keep track of the latest event.

MPs change colours like chameleon,so they ur guess are as wild as mine as to whether the govt manages to survive or no.

@Dinesh

The abv reply is for u also.Keep checking for my blog for info abt intra-day calls.Nifty,i ll let u know tomm morn.

Reply to ur queries

2008-07-08T09:58:00.002+05:30

@ Atif
I see RCOM breaching the 52 week low of 380 n might go to abt 365 bcz of these reasons

Its fight with RIL

Deal with MTN

Its no exception to the over all downfall due to

The rising crude

slow economy

political crisis.

SO i wud advice u to wait n enter at the right time.BUT IT HAS STRONG SUPPORT AT 399 AND 392.

@ ASHISH

U SHUD HV SOLD OFF.the last hr sell off yest was due to the political crisis n some other factors.Todays major factor is the LEFT WITHDRAWING SUPPORT.So as of now u wont b able to sell it at better levels.I dont it improving either

Reply to ur Queries

2008-07-05T20:21:00.002+05:30

@ RENJI

There is immediate support for Tata steel at 628 then at 612.These levels can be tasted due to the reduction in the steel prices.Going further with the market condition,being no exception to the over all downfall,the next support level is at 598.so i wud advice u to wait n then enter.Tata steel has good potential,it is also fairly valued.so my very short term target wud be abt 696.

@ Rajesh Joshi

U shud hv exited from any reality stock quite a long time back since this subprime crisis came to surface.DLF is the over all leader in the reality space n hs good expansion plans.but the market prices speak the other story.It has gone below its listing price.so one good thing is that there isnt much of downside left in this stock.At the max when the markets gonna fumble it can reach 302(+ or -10) and the max it can reach in the very near term bfre the fall(ie. when nifty is at 4450) is 455(+ or - 10)so my advice to u is clear,exit ur postions when it reaches the highest point.

Then either re-enter into it when the market falls else u can look for other companies like IT sector wch is looking extremely attractive esp aft the Dollar has again started gainin strength.

Today's Tutorial[5-7-08]

2008-07-05T13:08:00.000+05:30

Why does the stock market go up and down? Theses fluctuations occur partly because companies make money, or lose money, but it is much more involved than that. A stock is only worth what someone will pay for it. Usually, if a company makes a lot of money, its value rises, because people are willing to pay more for a company's stock if the company is doing well. There are many other factors that affect the value of stocks. One example is interest rates, or the amount of money you have to pay a bank to loan money, or how much it has to pay you to keep your money in their bank. If interest rates are high, stock prices generally go down, because if people can make a decent amount of money, by keeping their money in banks, or buying bonds, they feel like they should not take the risk in the stock market.

Many other factors have an effect on the stock market- for example, the state of the economy. If there is more money floating around, there is more flowing into companies making their prices rise. Yet another factor is time of year, and publicity. Many stocks are seasonal, meaning they do well during certain parts of the year, and worse during others. An example is an ice company, the ones that package ice that you buy at the supermarket. During the summer, with picnics, and sweltering heat, their product sells well, and thus their stock price goes up; But during the winter, when people are not as interested in a picnic with 20 below temperatures, their price goes down. Publicity has an effect on stock prices. If an article comes out saying that company ABC, has just invented this new type of ice that will revolutionize the industry, odds are their price will increase. Conversely, if an article comes out saying that company ABC's president is a crook, and stole the pension funds, it is a good bet that the price will go down.

REPLY TO UR QUERIES

2008-07-04T18:35:00.003+05:30

@ DINS

As u r new to the markets and there are such dreaded times at the markets the best way for u to start investment is via SIP.All the analysis and technicalities go wrong even for an expert person so u r bound to go wrong.Better u invest in the Mutual Funds via a SIP.And if u dont want to take any risks at all(0%) then u can start a RD in a bank becz the interest rates are high enough.

Inspite of this if u want to invest in the share market then i wud advice u to wait for a while max 15-20 days,the markets ll reach their lowest levels and u can invest wid least risk.

@Ashish

My advice to investors who hav lost large sum of money is quite clear.As far as the Nifty is concerned the max upside in the very short term is abt 4450 provided their is no political crisis on 7th.So in case of essar oil i feel it can reach abt 198 (+ or - 5)if all is well.so i wud advice u to exit ur positions at these levels so that u can reenter wen the markets reach lower levels(wch is bound to happen,in the near future).This will minimize ur losses and maximize ur profits.

Dont try to recover ur losses by playing risky intra-day trades on the advice of anybody,u may lose the remaining sum as well.Be extremely cautious.And one more thing dont go for panic selling at any cost let ur actions b rational and well thought after.

@ Sripal

Wat price range,i mean the company price,do u want?

@Badulla

Keep visiting my blog for regular news and updates. :-)

Reply to ur query

2008-07-04T09:31:00.005+05:30

@ Ashish

I see HDIL breaching the 52-week low of 320 in the near future though it has support at 330.

Its a good company to invest for a long term

but when the global cues r so -ve and the market sentiment so nervous with the rising crude(it may reach 170$),i c a downfall in the indian market for very short term and no company including HDIL is exception for this.

So i wud advice u to wait for the right time to enter into this stock to maximize ur profits.

hope u benefit from my opinion.

@ All NOTICE

I wud request u to gv detailed info abt urself like
1) term of investment(short,medium,long)
2)type trader/investor
3)risk appetite
4)type of investor small or large(based on amt of investment)
etc
when u ask ur queries.so that i can gv specific advice to u.
Bcz the same opinions dont apply to all in this diversified world.

Replies to the Queries

2008-06-29T12:32:00.002+05:30

@ Madhu

As far as the market is concerned,i wont b surprised if there is a fall abt 1000+ (sensex) in the near future;this may happen if the crude oil touches 150-170$,wch seems very much possible now.

So considering this fact and the technicalities of rpower i feel that it may fall to a level of abt 115-125.So my advice to u wud b to wait and follow the market closely.keep the cash wid u,dont invest till there is a greater fall.keep a horizon of atleast 9months.Once the rpower plant becomes operational the stock can trade at the levels of 300+.so be patient with this stock.

@ Santosh

Sorry to hear that bro.But dont b depressed.Millions of retail investors like u,hv lost thousands n perhaps lakhs in this downfall of stocks.But there is a silver lining to this cloud like always.Dont panic and sell off the stocks,now that u hv lost so much of money i wud advice u,not to take part in intra-day trading;or fall pray to the crooks who promise that u can make up for ur losses in one day or two by investing in F&O or intra-day considering the fact that u ll b entitled to greater margins.See these are risky options wid greater inclination to losses in the current situation.So be away from these.

As far as ur losses are concerned i feel u can recover them in a couple of years.The indian growth story is strong enough.It continues to grow at the rate of 8%.remain invested,switch to fundamentally stronger stocks,wch have a lower risk liability.there are no short-cuts.

N i wud advice u to make ur own research n invest accordingly rather than payin lakhs for advices as u hv done already wid no benefit.

Today's Tutorial[28-6-08]

2008-06-28T12:35:00.003+05:30

DONT LET UR PROFITS TURN INTO LOSSES.

LEARN TO TIME THE MARKET WELL.

WAIT FOR THE RIGHT TIME TO ENTER THE MARKETS.

KEEP SOME CASH ON SIDELINE SO AS TO ENTER WHEN THERE IS A FALL IN THE MARKET.

DONT LET GREED RUIN UR PROSPECTS.

WHENEVER U BUY ANY STOCK HV A VERY CLEAR IDEA AS TO WHAT TARGET PRICE U R LOOKING FOR(% RETURNS) AND AS SOON AS THE STOCK PRICE REACHES THAT POINT IMMEDIATELY SELL IT.AND LET THE TARGET BE REALISTIC.

IF U KEEP ON WAITING FOR THE STOCK TO MOVE UP FURTHER;IT MAY SO HAPPEN THAT IT MAY FALL BY A HUGE MARGIN AND U WONT GET ANY TIME TO EXIT.

DONT LET ANYONE'S OPINION INFLUENCE UR IDEAS UNLESS U R VERY SURE THAT IT MAY BENEFIT U(I M NO EXCEPTION)

DONT BELIEVE ON THE RUMORS IN THE MARKET.HAVE TRUSTWORTHY SOURCES.

IF U HV LOW RISK APPETITE BE AWAY FROM THE MOMEMTUM STOCKS,THEY SEEM TO BE VERY TEMPTING,MAY EARN UR THOUSANDS BUT ROB U OF LAKHS.

IF U WANT AN ASSURED RETURN THEN MAKE SURE U R INVESTING ATLEAST FOR A SPAN OF 9-12MONTHS.BETTER U INVEST IN A LARGE CAP STOCK.

THATS ALL FOR THIS WEEK FOLKS!!!

Today's Tutorial[22-6-08]

2008-06-22T16:02:00.002+05:30

What are Mutual Funds??

Well it was pretty easy to buy a few shares of Infosys, but what if you are not sure about which stock you should buy? Maybe you would rather let a professional choose the stocks for you. Well, you are not alone. Millions of people turn over control of their finances to professionals by buying Mutual Funds. There are two types of mutual funds, open and closed.

Open mutual funds people put their money in them, just like a bank. The difference is that banks take your money and lend it out, and then pay you interest on the money you gave it. This is static, in that it does not change. When you put your money in, the bank usually says we will give you 10 percent interest. When you put your money in a mutual fund, they take that money, along with that of millions of other people who are investing, and buy stocks and bonds with it. They then take out part of the profits for themselves, a commission, and give you your share.

Closed end mutual funds, are similar to their open counterparts in that you turn over control of your money to professionals but, rather than putting money in them like a bank, you buy shares like a stock. This means that a closed end mutual fund acts just like any other stock on the Stock Exchange, they have Ticker Symbols, and are traded. The difference is that these mutual funds, instead of making burgers, or creating airplanes, take the money they have, invest it, and return the profits to the share holders.Most of them hv a time limit say of 3yrs.

Top Performing Mutual Funds

2008-06-17T22:09:00.004+05:30

CLICK ON THE IMAGE TO VIEW THE LARGER IMAGE

Tutorial 1

2008-06-14T12:38:00.003+05:30

As a part of my initiative to educate the newbies and warn the rest abt the realities of Stock Market,i m starting with a new series TUTORIAL.In this i ll be highlighting the basics that hv to be borne into mind while investing.I ll be posting every saturday a new topic with regards to this Tutorial.With out wasting much of time,let me start with the topic for this Saturday.

What is a trading system?
A trading system is a collection of rules that define everything you may do before,and more imp,aft you buy any stock or investment.It is a planned approach that provides structure to your investment activity in the market.

The trading system is basically a plan that not only says how you are goin to trade successfully but what you are goin to do if things go wrong.

Building wealth is just like building a house.You wouldnt build a house without a plan and neither should you attempt to build wealth through trading without a solid trading system.

NEVER PUT ALL OF YOUR EGGS IN ONE BASKET

The most imp rule of investing properly in not to lose the money that you hv started wid,This might seem obvious , but it is amazing how many ppl's trading strategies dont look at ways of managing risks.

There is some form of risk involved in every kind of investment.Risk management means taking action that will significantly reduce the likelihood that you could lose the money u hv invested.

One of the 1st things that u can do to reduce the risk is diversify.You may b familiar wih the term "diversification".When talking abt investment this really means spreading the risk.

If u hv all of ur money in 1 stock u hv more possibility of losing it all.Imagine if that stock unexpectedly goes down.Even bfore u could sell the stocks u own,u may hv lost a major portion of ur investment.

On the other hand if u hd taken the same amount of money and spread it over four diff stocks it is unlikely that all of the 4 stocks will fall dramatically at the same time.This is esp true if you make sure that the stocks are in diff industries.

So how can u put this idea into practise?By creating a simple first rule in your trading plant that limits the amt of investment capital that you will risk in any one investment.

For example,if u hv Rs.10,000 to invest then u may wish to create a rule whereby u nvr put more than 10% into any one share.This means that u wud not invest more than Rs.1,000.That way if a particular stock goes bad,the most u can lose is Rs.1,000.

Whether u know it or not,u hv just introduced the concept of money management into ur trading plan.Money management means using rules to protect ur money regardless of whether the stock market goes up or down.We'll learn more abt money management in the next few tutorials.