Health Insurance for 70+ in India

A week ago I happened to overhear a gentleman’s conversation with probably his friend while I accompanied my friend’s father for his routine check up to the doctor and was sitting, waiting for our turn. This gentleman had come to seek a second opinion about his father who had been advised an angioplasty by another cardiologist. I first thought he was concerned about his father’s health but he appeared to be more concerned about the expenses.  To read more  visit  http://www.google.com/url?q=http://www.investmentyogi.com/health-insurance-for-70-in-india/&usd=2&usg=ALhdy2_xDLOXLvq9LNNTAseLLo3sUniobQ

How To Buy Mutual Funds Online?

A few years ago people made customary trips to the banks for their regular transactions; then came   the net banking. Now transactions are done with a click of mouse, sitting at home. Convenience is of prime importance today. However, when it comes to investment many people still do the traditional way, through an agent. Online investing is still not very big in India but it's a convenient option. To read more visit 
http://www.investmentyogi.com/how-to-buy-mutual-funds-online/ 

Business Insurance : Partnership

It’s not uncommon for entrepreneurs to start their business in partnership. In fact a huge portion of business houses across India are partnership firms. And they are doing wonderfully well. But many entering into partnership contract ignore an important aspect; the partnership insurance. To read more visit 
http://www.investmentyogi.com/what-is-partnership-insurance/

Business Insurance: Married Women's Property Act

Buying a life insurance cover alone will not necessarily ensure that your loved ones get the insurance amount in the event of your death. If you are the owner of a business with a high component of loans and have accumulated debts, your creditors will have the first claim on your policy proceeds. To protect your loved ones from such situations insure yourself under MWPA. To read more visit http://www.investmentyogi.com/insurance/married-women-s-rights-amp-empowerment-indian-property-law.aspx

The Penny Stock Fallacy

According to a recent Economic Times report nearly 200 penny stocks, which were never traded since 2000, have seen a resumption of trading on the BSE in the past one year and some of these stocks have appreciated between 100 per cent and 1000 per cent; months after making a comeback, while a few of them hit the upper circuit successively over the period. Moral of the story; if there is any one type of stock which is still dazzling in this choppy market, it is the penny stock. With the recent fall in the stock market along with brighter future projections make a lucrative combo, with high growth potential. Impressive!!  Now what is a penny stock? A stock which is generally sold at less than 10% of its offer value and sold below par.

Two common beliefs pertaining to stocks market are that many of today's stocks were once penny stocks and that there is a positive correlation between the number of stocks a person owns and his or her returns. While many of today’s bluechips once started small, the exponential growth they witnessed was based on strong fundamentals and sound business models. Plus for every one hit you also have ten or more misses.

Investors who have fallen into the trap of the first fallacy believe Wal-Mart, Microsoft and many other large companies were once penny stocks that have appreciated to high rupee values. Many investors make this mistake because they are looking at the "adjusted stock price," which takes into account all stock splits. Rather than starting at a low market price, these companies actually started high, continually rising until they needed to be split.

The second reason that many investors may be attracted to penny stocks is the notion that there is more room for appreciation and more opportunity to own more stock. If a stock is at 10 paise and rises by five paise, you will have made a 50% return. This, together with the fact that a Rs1,000 investment can buy 10,000 shares, convinces investors that penny  stocks are a rapid, surefire way to increase profits. Want to invest in the IT sector? With Rs 7,500 you can buy three shares of Infosys Technologies—or 3,000 shares of Software Technology Group. The very thought that they can buy 1,000 times more shares makes many investors walk into the trap of penny stocks.

Unfortunately, people tend to see only the upside of penny stocks, while forgetting about the downside. A ten paisa stock can just as easily go down by five paisa and lose half its value. Most often, these stocks do not succeed, and there is a high probability that you will lose your entire investment.

The price may be low, but the mistake of investing in a penny stock can be very costly. Infosys has risen in value and enriched investors with dividends and bonus issues. The last time that Software Technology Group was trading above Rs 10 was in September 2009. The company has been in losses for the past two years and has no reserves.

Now you know why one is trading at Rs 2,500 and the other at Rs 2.50. There is a greater chance of Infosys rising by Rs 500 than the Software Technology Group by 50 paise. Besides, the average daily traded volume of Infosys in the past 30 days is 11 lakh shares. Only 2,800 shares of Software Tech have been traded daily. Even after taking into account the current challenges that Infosys faced, it still stands head and shoulders above almost all of the penny stocks floating in the market.

Penny stocks aren't a lost cause, but they are very high-risk investments that aren't suitable for all investors. If you can't resist the lure of penny stocks, make sure you do extensive research and understand what you are getting into. After all it’s like searching diamond in scrap; someone might get lucky. Do your homework well and consider limiting your exposure to a maximum amount, over which you would risk losing your sleep. Stay Blessed!!