Stock Manipulation may mean heavy losses for the retail investors. To be very honest it is very difficult for retail investors to find out stock manipulation. The best example in recent past i can think is of Surana Solar. I shared a dedicated post on the same, 5 Lessons from the debacle of Surana Solar. It is a case study why retail investors should stay away from such stocks. In my previous post in stocks section, i discussed stock price manipulation - Pledging of Shares is the key culprit. In my opinion, stock manipulation linked to the share pledging is organized and well thought through. ... Read More
5 Lessons from the Debacle of Surana Solar
Have you heard of the company Surana Solar?. If i would have asked this question 2 days back then i can bet that 99% of the investors would have said NO. If i ask the same question today then in all probability the answer is another way round. You must be wondering what happened in last 2 days that Surana Solar became so popular. The people who invest in the stock market know what i am talking about and other can wait for a while to know the "miracle" hot stock Surana Solar. Last year, "News Traders" was the term coined by our PM. News Traders is loosely defined for the journalists who don't ... Read More
Mutual Fund Riskometer – Old Wine New Bottle
The new Riskometer for Mutual Funds is an old wine in new bottle. SEBI (Securities and Exchange Board of India) will replace the existing colour coding system for mutual funds with new riskometer. The new product labelling system will be implemented from 1st July, 2015. If any fund house would like to implement the new riskometer before 1st July, 2015 then they are free to do so. Riskometer will be applicable for both old and new mutual fund schemes. Existing Colour Coding System Mutual fund investors must be familiar with the following colour coding picture It basically shows the ... Read More
Beware of Hidden ULIP Charges
ULIP Charges and Greed are synonyms for each other. ULIP (Unit Linked Plan) is a perfect case study of How Greed Kills. Greed is always both ways i.e. Banks/Insurance Provider's greed to sell more and Greed of investor for higher returns. ULIP was launched in 1971 but all the mess in ULIP started after private life insurers entered in 2000. ULIP misselling became so rampant that IRDA (Insurance Regulatory and Development Authority) had to step in. IRDA came up with regulations for ULIP to control ULIP charges in September 2010. I still remember that for few ULIP products, large portion of ... Read More
Portfolio Management Services – Be Cautious
Portfolio Management Services is one of the pleasant side effect of being "Super Rich". If your bank is offering Portfolio Management Services to you than it means that you have arrived in life. In short, welcome to Super Rich Club. Once the bank see money in your account, you will start getting attention from one street smart bank executive. Indians are typical attention seekers. The more attention you get, the more you want. Banks leverage this syndrome and treat super rich club like VVIP's. The ultimate goal of bank executive is to sell Portfolio Management Services to "Super Rich". Who ... Read More