The note on Public Issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds to be issued by “Housing & Urban development Corporation Ltd” (HUDCO).

The Company has filed Draft Shelf Prospectus with SEBI on 11th January 2012. Issue is expected to be launch by end Jan. ie 27th Jan 2012.

We will update you about the exact issue dates and coupon rate once tranche Prospectus is filed.

The issue will be open for NRI investors on repatriable as well as non-repatriable basis.

Being rated AA+ the interest rates,commercials will be better off as compared to IRFC Tax Free Issue which will be open on more or less similar timelines.

Housing and Urban Development Corporation Limited Profile Snippets
Housing and Urban Development Corporation Limited (HUDCO) was established in 1970 as a wholly owned Government company with the objective to provide long term finance and undertake housing and urban infrastructure development programmes. HUDCO’s sustained performance and profitability earned them Mini-Ratna status conferred in FY 05. HUDCO had sanctioned loans of Rs. 37,464 cr for housing and Rs. 84,906 cr for urban infrastructure on a cumulative basis up to Dec 2011.

Salient features of the bond issue

• The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible Debentures and the interest on the Bonds will not form part of the total income.
• In case of over-subscription; allotment shall be on first cum first serve basis up to the date falling 1 day prior to the date of over-subscription and on proportionate basis on the date of over-subscription, in the manner specified in the Tranche Prospectus.
• CARE has assigned a rating of ‘CARE AA+’ to the Bonds. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Fitch has assigned a rating of ‘Fitch AA+ (ind)’ to the Bonds.
• The bonds are secured by way of floating first pari passu charge on the present and future receivables of the company to the extent of amount mobilized under the issue. The security cover will be at least 100% of the outstanding Bonds at any point in time.
• HUDCO shall pay [xx] % p.a. for Tranche 1 Bonds as interest on the Application amount retained.HUDCO shall also pay [xx]% p.a. on refund of application amount. Such interest shall be paid along with the monies liable to be refunded.
• Bonds will be issued in Dematerialised form or physical form as specified by an Applicant in the Application Form. The bonds will be listed on NSE and BSE both and will be available in Demat form facilitating trading of these bonds.
• Investors can pledge or hypothecate these bonds to avail loans.

Financial Summary

Business Overview
The business is broadly classified into the following two business platforms:

• Housing finance:  HUDCO finances dwelling units in the urban and the rural areas. HUDCO has sanctioned Housing Finance of Rs 36,110 cr (30.65% of total financing activities as on March 31, 2011).  
• Urban infrastructure finance:  HUDCO finances projects relating to social infrastructure and area development, water supply, sewerage and drainage, roads and transport, power, emerging sector, commercial infrastructure and others. HUDCO has sanctioned Urban Infrastructure Finance to the tune of Rs 81,691 cr (69.33% of total financing activities as on March 31, 2011).
• In addition, HUDCO also provide consultancy services in the field of urban and regional planning, design and development, environmental engineering, social development, government programmes and others.

Operational and Financial Performance

Strengths

• Strong financial position: HUDCO has been operating its financing business profitably since inception.
• Rich Parentage: Their business is funded through equity from the GoI & market borrowings. Relationship with the GoI provides them access to lower cost funding & enable them to source foreign currency loans.
• Pan-India presence:- HUDCO has extended finance for housing and urban infrastructure projects to customers in 33 states and union territories covering around 1,800 cities and towns.
• Established track record:- HUDCO has 41-years of experience in the housing financing market. As on Dec 31, 2011, the Company had provided finance for over 15 mn dwelling units and over 1,600 urban infrastructure projects in India.
• Wide spectrum of consultancy services:- As part of consultancy services, up to Dec 31 2011, they had appraised 1,236 projects with a project cost of Rs 27,515.34 cr under JNNURM.
• ‘CARE AAA (SO)’ rating for HUDCO’s unsecured bonds: – CARE has assigned a rating of ‘CARE AAA (SO)’ to the unsecured bonds issued by HUDCO aggregating to Rs 1,036.4 cr as on Oct 10, 2011. The rating of ‘CARE AAA (SO)’ was primarily based on credit enhancement in the form of ‘Letter of Comfort’ from the then Ministry of Urban Employment and Poverty Alleviation.
• Loans backed by Govt. guarantees: Most of HUDCO’s loans to various state entities are secured by guarantees from the relevant state governments to repay outstanding debt facilities or mortgage of properties with a minimum security cover of 125% of the total loan amount. Further, loans to entities in the private sector are secured by mortgages of the respective project properties providing a minimum security cover of 150% of the total loan amount, personal guarantees and contributions by promoters, as deemed fit by HUDCO.

Investment Options

*Allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis
 
Tax Benefits

1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;
2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders;
3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.Under section 112 of the I.T. Act, capital gains arising on the transfer of long term capital assets being listed securities are subject to tax at the rate of 20% of capital gains calculated after reducing indexed cost of acquisition or 10% of capital gains without indexation of the cost of acquisition;
4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.

 Financial Summary

Dear All,

Please note that Tree House Education & Accessories Limited IPO  will opens for subscription from Wednesday i.e 10th August, 2011  and  closes on Friday ,12th August, 2011

Tree House Education & Accessories Limited  -Issue Details

Issue Program: -

• Issue Opens on – Wednesday ,  10th August, 2011
• Issue Closes on – Friday, 12th August, 2011

Price Band: –                 Rs. 135/- to Rs. 153/-
 
Retail applicants are eligible for a discount of Rs 6/-.

BID lot:-                          40 Equity Shares & in multiples there of

The economy is one big arena where all commodities depend primarily in the ups and downs of gas or oil prices.  Once gas prices goes up, all the rest of the basic commodities will as well follow its trend.  The same is true if the price of gasoline falls down, the basic products in the market will somehow mark low or bring down its prices.  Meaning to say, gas price dictates the flow of all the rest of other products.

Why do gasoline prices undergo fluctuation?  Well, economists and other monetary and investment experts agree to the following reasons why gas price fluctuates.  First reason is due to the reality of the supply and demand principle.  This economic principle quickly changes the prices of gas and oil.  The second reason why oil or gas prices occur is due to the so-called market speculation or simply put the analysis from the business experts such as the Forex monetary institute on whether the value of a country’s money will be high or low.  Thirdly is the expense or budget needed in bringing forthgasoline from crude oil through the process called refining.

In view of the reality concerning the supply and demand of the gasoline, it is obvious that the effect of which is direct in as much as the price of crude oil is concerned.  It is a fact that every time the supply is high, then it goes without saying that the price of gasoline will eventually be low as a consequence.  On the contrary, if the supply gets low, meaning to see there is not enough oil supply, then the oil price will definitely be quite expensive or the current price will go up, to the great advantage of the businessmen.

What will happen then if gasoline prices will fluctuate? Well the people primarily the consumers will really be hit hard and they too will tighten their belts so as to survive.  We therefore should work hard together so that the prices this most precious commodity will remain stable.

Best Reading:

• How To Save Petrol
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As a conclusion, we therefore should do our part in making the oil or gas prices stable so that in the end we will not be able to face the consequences of having a low return of our investment.  This is something difficult and crucial to do simply because of the fact that we are quite preoccupied and busy with a lot of stuff.  We must therefore work hand in hand so as to get the dreams that we aspire for in view of our family and also in view of all our relatives friends and the entire society as well.  Only then can we truly say that as a country we did help each other in putting everything into its proper perspective.  This is one tall order which may not be easy to do alone but in unity we surely will be able to make this a reality.

Just very recently, a radical move has been proposed and agreed upon by the governing agency over all Life insurance companies of India primarily to bring into the scenario a more dependable and stronger foundation of the Life Insurance system all over India. The reality of disclosing the assets and financial status of these Life Insurances are basically the one which is demanded by IRDA so as to check and balance all of the income and expenditures of the many Life Insurance businesses mushrooming in India.  This is both beneficial to the clients to be, the government of India and the Life Insurance Companies as well together with their possible investors.

Hence, because of this memorandum of agreement, Life insurance companies planning to raise money from bourses will now have to provide a financial account and disclose the investment performance of various unit-linked insurance plans (Ulips) over the past five years in order to help prospective investors gauge risks better.  In this way, investors will be able to decide on whether to invest or not from those said prospective Life Insurance Companies.

Moreover, these companies will also have to give guidance on earnings from their present business and agreements with foreign promoters this way, clients and investors alike will be able to have a bigger and clearer picture of the entire business company where they will invest their money. This set up is basically to be followed and implemented according to new norms cleared by an inter-regulatory panel set up by SEBI. Good thing is, most of IRDA’s suggestions on disclosures have been accepted by the panel, said a senior official privy to the development.  This new development is therefore close to being a great success.

It is interesting to note that Ulips are similar to equity schemes of mutual funds, but with an insurance cover thrown in. This is something safe and secured due to the cover insurance itself.  This category accounts for over 80% of the portfolio of private insurers. Insurance watchdog IRDA, which has been granted the right to regulate Ulips after a public spat with SEBI, has tightened regulations to ward off criticism against untoward selling of this hybrid product. This practice will prevent abuses from the Life Insurance Companies.

Finally, loss-making companies will be allowed to tap the equity market since given the nature of the business, insurers can’t wait forever till they make profits, said another person familiar with the developments. “They should make all disclosures and let investors take the call,” the person said.  This may not be a good signal to these losing companies but the most important fact is that all parties will be able to find where to stand and start all over again by finding the remedy with the help of everyone concerned.

Best Reading:

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As a conclusion, IRDA, all Life Insurance Companies, the would-be investors and all prospective clients should exert efforts in trying to iron things out and finding the best possible solutions to remedy the problem that may emerge from the Life Insurance Companies’ not disclosing their respective assets and financial transactions.  This would provide all sectors the best plans and evaluation in view of making the most of their business endeavors that will surely bring the economy to its apex progress and the lives of the citizens and these said companies stable.

IPO (Initial Public Offering) is a float or an offer to buy a company’s stock or shares while mutual fund is an investment company that invests its pooled funds in a diversified list of securities. Diversify means to invest in the securities of different companies in different industries.
Mutual funds can be closed-end funds, open-end funds, large cap funds, mid-cap funds, equity funds, balanced funds, growth funds, no load funds, exchange traded funds, value funds, money market funds, international mutual funds, regional mutual funds, sector funds, index funds and funds of funds.
In our previous article we mention detail about what is IPO
Closed-end funds
Closed-end mutual fund has a set number of shares issued to the public through an initial public offering.
Open-end funds
These are operated by a mutual fund house which raises money from shareholders and invests in a group of assets.
Large cap funds
These seek capital appreciation by investing primarily in stocks of large blue chip companies.
Mid-cap funds
Mid cap funds are those mutual funds, which invest in small / medium sized companies. As there is no standard definition classifying companies.
Equity funds
Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies.
Balanced funds
Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds
Growth funds
Growth funds are those mutual funds that aim to achieve capital appreciation by investing in growth stocks.
No load funds
Mutual funds can be classified into two types – Load mutual funds and No-Load mutual funds. Exchange traded funds
Exchange Traded Funds (ETFs) represent a basket of securities that is traded on an exchange, similar to a stock.
Value funds
Value funds are those mutual funds that tend to focus on safety rather than growth, and often choose investments providing dividends as well as capital appreciation.
Money market funds
Money market fund is a mutual fund that invests solely in money market instruments. Money market instruments are forms of debt that mature in less than one year and are very liquid.
International mutual funds
International mutual funds are those funds that invest in non-domestic securities markets throughout the world. Regional mutual funds
Regional mutual fund
This is a mutual fund that confines itself to investments in securities from a specified geographical area, usually, the fund’s local region.
Sector funds
Sector mutual funds are those mutual funds that restrict their investments to a particular segment or sector of the economy.
Index funds
An index fund is a mutual fund or exchange-traded fund) that aims to replicate the movements of an index of a specific financial market.
Fund of funds
A fund of funds (FoF) is an investment fund that holds a portfolio of other investment funds rather than investing directly in shares, bonds or other securities.

QUOTE OF THE DAY:
Know what is advantage and disadvantage of a thing and try to analyze it.

CONCLUSION:
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. An initial public stock offering (IPO) referred to simply as an “offering” or “flotation,” is when a company issues common stock or shares to the public for the first time.

Today we will talk about demat account,Demat – means a material is dematerialized. Here the demat mean the documents of shares that is in paper form will be demated and will be kep electronically in an account. This account is opened at many banks and majority of stock brokers. Your own bank where you have a savings account, they too may have this facility please ask them. Anyone who is holding the shares can open this account.

In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.
This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.

How to Open Demat account
DEMAT account helps you to hold the shares in Electronic Format. To open a DEMAT account, it does not matter whether you are a salaried person or not. It is better to open a Trading and Demat account with the same company, so that when you trade shares, the Demat account automatically gets updated for Buy and Sell. You may contact Reliancemoney, Sharekhan, ICICIdirect etc., as per your convenience.

Is a demat account a must
Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.

Required Documents for Demat account
- A canceled check(MICR)
- Proof of Identification
- Proof of Address
- Proof of Pan card (mandatory)
- Recent photographs, one and, or more

Benefits of Demat account
- A safe and convenient way to hold securities.
- Reduction in paperwork involved in transfer of securities.
- Reduction in transaction cost.
- Nomination facility.
- Transmission of securities is done by DP eliminating correspondence with companies.
- Holding investments in equity and debt instruments in a single account.

Now days demat account provide facility for buy sell mutual fund,stock,insurance,ULIP etc.
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Do you have suggestions for improving the blog, or types of content you’d like to see more of? We’re all ears, so please feel free to leave us a comment below. It’s a brand new year, and we’re ready to get started!

We received too much emails related to Fundamental Analysis, Today I want to show Basics of Fundamental Analysis, before discussion on it we must know about Fundamental Analysis.
What is definition of Fundamental Analysis:
Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices.
Read Top 10 Treading Rules first.

Here is best book available for Fundamental Analysis

1. A Back-to-the-Basics Investment Guide to Selecting Quality Stocks, Revised Edition (Hardcover)
2. The Basics of Fundamental Analysis

The fundamental information that is analyzed can include a company’s financial reports, and non-financial information such as estimates of the growth of demand for products sold by the company, industry comparisons, and economy-wide changes, changes in government policies etc..
Fundamental Analysis is a method of security valuation which involves examining the company’s financial and operations, especially sales, earnings, growth potential, assets, debt, management, products, and competition. Fundamental analysis takes into consideration only those variables that are directly related to the company itself, rather than the overall state of the market or technical analysis data

Here is some more detail so you can understand fundamental analysis more clearly.
When investing in the stocks, Evey one want the price of his/her stock to rise. Not only do we want our stock price to rise, we want it to rise FAST!It is human nature because we want money fast and as early as possible, this is one of the bad habit because this habit redirect us to wrong path, So the challenge is to figure out: which stock prices are going to rise fast?

Some stocks are cheap and some are costly. Some are worth Rs.1000 and some are even worth Rs 1.Some stock are highly treader and some are called penny stock.
Please remember that price of the stock is not important. The price of the stock does not make a stock good to buy. What is important is how much the price of the stock is likely to rise.

Best Example
If you invest Rs.1000 in one stock of Rs.500 and the price goes up to Rs.1100 you will make Rs.100. However, if you invest Rs.1000 in a Rs 1 stock, you will have 1000 stocks. If the price of the stock goes up from 50paise to Rs.2, then the Rs.2000 you invested is now Rs.2000. You made a profit of Rs.1000.
If you understand this, you can see that the price of the stock is not important. What is important is the rise in the stock’s price. More specifically the “percentage” rise in the stock price is important.
If the Rs.1000 stock becomes worth Rs.1100 then that is a 10% rise. This 10% rise only makes us Rs.100. On the other hand when we invest the same Rs.1000 in the Rs 1 stock and the stock price goes up to Rs.2, it is a 100% rise as the stock price has doubled. This 100% rise makes us Rs.2000.

The point is that when picking a company, we are interested in a company whose stock price will rise by a large percentage.

Please note: Rs 1 or Rs 2 These really small stocks are very volatile and unless you know what you are doing, do NOT get into them.Read what is Penny stock.

However, the point to be noted is that we are interested in stocks that will have the highest % rise in the stock price. Now the question is, how do you compare stocks.

How do you compare two companies that are in different fields and different industries? How do you know which one is fundamentally strong and which one is week?

If you try to compare two companies in different industries and different customers it is like comparing apples and elephants. There is no way to compare them!

So fundamental analysts use different tools and ratios to compare all sorts of companies no matter what business they are in or what they do!
Keep reading us.
Do you have suggestions for improving the blog, or types of content you’d like to see more of? We’re all ears, so please feel free to leave us a comment below. It’s a brand new year, and we’re ready to get started!

Here is best reading for you.

• Calculation of bike insurance
• Remove stress from your life
• Employee what to do in recession
• Winter food in Ayurveda
• ULIP FAQ’s
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We all know that cost cutting is running, so if you are employee then remember this 21 point to make your life secure in this recession period.

• Do not take too much vacation
• Do not complain
• Do not waste time gossiping
• Don’t resist a transfer
• Don’t resist travel
• Don’t resist a salary cut
• Don’t resist extra-work load
• Don’t resist extra time at office if needed
• Don’t change jobs in this market. It is too risky
• Be punctual to office
• Ensure you pick up new skills
• Ensure you deliver as per deadlines
• Ensure that you contribute to knowledge forums etc
• Do something innovative
• Take training programs
• Organize team meeting to improve productivity
• Always be engaged & productive
• Work doubly hard and save money for your company
• Do not take too much tension
• Be cheerful, keep smiling, life goes on
• Be happy always

Follow above point and make your life cheerful, if you loss job then do not worry because when god close one door then 100 more are open for you.
“Nothing happens by chance, my friend… No such thing as luck. A meaning behind every little thing, and such a meaning behind this. Part for you, part for me, may not see it all real clear right now, but we will, before long.”
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Do not forgot to read Unit Link Insurance Plan(All in One)

uAlmost all investor ask question that what is different between ULIP and mutual fund, it is necessary to know about both scheme before investing.
We are mention two different article that show the some difference between both. Before reading this article you must read.
Read What is ULIP
Read before buy ULIP
Read what is mutual fund
Read advantage of SIP

1) ULIP are not a mutual fund, even though in some ways their structure is quite similar. In the sense, they too invest in the equity and debt markets. The risk lies on the investor. ULIP issue units and reveal the net asset value of these units. That is where the similarity ends. ULIPs are a mix of investment and insurance.
Mutual fund investors have the option of either making lump sum investments or investing using the systematic investment plan (SIP) route which entails commitments over longer time horizons. The minimum investment amounts are laid out by the fund house.

2) ULIPs invest for the long term, as they expect investors to stay for the long term. And the purpose of a ULIP is also different build assets through a pension plan, retirement plan or child plan. All of which, need very long term investing, say 10-15 years or even more.
Mutual fund investment is also best for long term, but it show result after 3-5 years. In my opinion if you are not getting profit after 3-5 years in mutual fund then your invest plan is wrong.

3) The advantage a ULIP has is that it also blends insurance into the same plan. The insurance you buy could be a standard term cover or a critical illness rider is at the same rate as which you would buy it independently. But the advantage is that here it is embedded into the same policy, and that gives additional flexibility to increase the risk cover periodically as you grow older or earn more.
Before some times mutual fund companies also start insurance facility in SIP, but Selling such products was banned by Life Insurance Council, Amfi’s counterpart in the insurance industry.

4) ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds good, irrespective of the nature of the plan chosen by the investor. On the other hand in the mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked savings schemes) are eligible for Section 80C benefits.
In Mutual fund Section 80C benefits are available only on investments in tax-saving funds.

Read ULIP FAQ’s

So it is not an issue, of whether a mutual fund is better or a ULIP. It is about your need. Both can co-exist in your basket of needs. So identify your needs with a financial planner and then pick the product suitable for you.
This are top 5 stock at this time you must buy.
Top 5 stock buy for 2-3 years
Read treading rules before investing.

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Do not forgot to read Rules of Success.

So friends today market close in down side, One thing this movement will never come again so buy as much you can.People asking question is that the time to buy the stock I am saying yes it is the time.

There is some things we need to remember so please read trading tips before investing.
This are top 5 stock you must buy at the movement.

If you are able to invest monthly then select some best mutual fund at this movement.Now if you are going to invest at this level then
please keep following point in your mind.
1) Do not invest all your money in single time
For example if you want to invest 10000 Rs in stock market then invest 4000 at this level, Now after investing here is two condition

• If market move up side then sell those stock and book profit, I am telling this because this is the time to collect profit either it is 100 rs or 1000 rs do not miss that.
• If market move down side again then invest 3000 rs in two part this is best way to invest.

2) Invest if you do not need that money for next 2-3 years.
Example if you are going to invest 10000 rs at this level but you need 10000 rs again after 6 month for some function in family or other assist then do not invest at this level.
3) Think for long term As this is my line always “Invest for long term”, so If you are going to invest at this level then think for long term. I can’t guarantee that you are able to book profit in next couple of month.
4) This is the time to invest, but invest your own money only.
5) Last point is for new investor,those are new Please use monthly investment using SIP.

Mutual fund SIP are best option for long term from here. Reliance growth fund and reliance regular saving fund are best option for new investor.
Read more about mutual fund.
At last “If you want to feel rich, just count the things you have that money can’t buy”
Hope you people earn lot of money.

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