The Investment Thread

[zack2137]

How are REC (Rural Electrification corp, Govt of India) Rural Electrification Corporation Limited - Bonds Status tax free bonds offering upto 8.71% for retail investors?

There are 2 issues with REC bonds. Gestation period (can be traded on BSE but buyers!) and over-subscription.

 

[skysat2005]

There's a FD or similar offered by LIC Housing Finance as well. I guess they are offering 10.5% or so.

Interest on all FD schemes is taxable as per income tax slabs, however these are tax free bonds but with 10/15/20 years of lock in period.
No bank is offering 10/10%+ interest rates as of now.

 

[Big Daddy]

Indexing is hard to beat. For last 23 years, Sensex has returned approximately 16% per year. Here are some other returns.

 

[citymonk]

Any good Mutual Fund in pipeline.

 

[Yogesh Sarkar]

Quite an interesting article to read about, Trading bots create extreme events faster than humans can react | Ars Technica. Of course all this does impact the small trader and investor as well.

 

[Prasham]

I've read a book some time back (sorry can't remember the name) where there was a mention of a broking firm in San Franscisco who had a computer program which did all the deals for their customers. This was way back in 1990s. This isn't anything new.

 

[Yogesh Sarkar]

Yes it isn’t new. However what the article is pointing to is very short term (less than second) volatility, which is being generated by automated trades and these automated trades going wrong due to it.

 

[Prasham]

Yes it isn’t new. However what the article is pointing to is very short term (less than second) volatility, which is being generated by automated trades and these automated trades going wrong due to it.

Oh sorry, I didn't read the article. I actually replied on basis of title of the article

 

[Big Daddy]

Actually these trading bot do cause short term market falls and as a result, US market closes for a while when something unusual (a bug in the system or a rumor on twitter or worse like Sept. 11) happens. I have been slowly buying gold and it seems it is better to still wait. Funny how things change. Everyone was saying how great gold was now it is down 22% and still more way to go downwards (Gold's worst days are coming - The Term Sheet: Fortune's deals blogTerm Sheet).

BTW if you have read post#593 then I want to add that actual returns for indexing are higher than estimated 15.66% if dividends are reinvested because then you are earning interest on interest.

 

[Prasham]

There's lot of buzz about retirement planning these days & hence I checked few retirement plans but wasn't much inspired. Instead I was toying with idea of systematically buying shares of few companies with good dividend paying record. Along with capital appreciation they are giving decent dividends which I believe is cool.

Some of the companies that I've shortlisted are Axis Bank, Corporation Bank, Colgate Palmolive, Shree Cement, Reliance Infra. All these are consistently giving decent dividends since last many years.

What are the negatives and positives about this idea ?