Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.

Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to www.daytradingshares.com and any financial deal should be done on their own sole responsibility.
Please read at
www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com
Copyright © 2010 DayTradingShares.com. All Rights Reserved
     Quick Learning
buy stock,buy back shares,buy and sell,best buy stocks,buy or sell sugar stocks,buy sell,online stock,buying selling,shares to buy,purchase,sell share,buy back,in India,prices,back,trading,buying,how to online prices,sharemarket sugar companies industries,news sugar industries shares tips,trading,how to invest in,investment in,learn share market price rates
Welcome to Indian Share Market
investment,financial investment,companies,finance,funds,market,investment online services,return on investment,best,bond,bonds,corporate,bse India,bse live,market,bse trading,high return,high yield,advice,growth,information,opportunities,securities,strategy,long term trading,shares,stocks,stock market,bse sensex,value,delivery based trade,delivery based trading,delivery trade,delivery trading,short term,mid term,how to invest,investing,how to make money,internet business,financial planning,online business,nifty,nse India,nse live,online money making profit,investing online,make money on internet,quick,margin trading,opportunity,fund,program,nse trading,sensex,nifty,nse market
Your Desire to Earn
How does RBI's credit policy impact you?
A few days ago, the Reserve Bank of India (RBI) announced the credit policy.

The RBI uses the credit policy to signal what it wants banks to do.

In the recent policy, repo rate — the rate at which RBI lends overnight to banks — was raised 0.25% or by 25 basis points to 5.75% p.a., and the reverse repo rate — the rate at which RBI absorbs the surplus overnight funds from banks — was hiked by 50 basis points to 4.50% p.a.
Overnight funds with banks
So, as you freely deposit and withdraw money on a daily basis, your bank needs to ensure that it earns money on your deposits , especially as they now pay you interest too on a daily basis.

If no other bank wants to borrow money in the inter-bank call money market, your bank will invest these funds with the RBI and earn 4.5% p.a. Obviously they will lend to another bank at a higher rate than that as, for the other bank, that would be cheaper than borrowing from the RBI at 5.75% p.a. (repo rate).

The reason why the bank needs to borrow funds overnight is that they need to maintain a statutory liquidity ratio of 25% and a cash reserve ratio of 6% of the bank’s net demand and time liabilities.

How does this impact you?
The money that you have in your savings bank account earns you 3.5% p.a. at present.
Since the interest rate corridor, or the difference between repo and reverse repo rate, has been reduced, inter-bank and short-term interest will move in a narrow band between 4.5% and 5.75% p.a., and these are returns that liquid plus funds could earn.
By now, of course, you are well aware that mutual funds have a tax advantage over bank deposits for those in the higher tax bracket - 20% or upwards.
So, do consider moving your idle funds in the bank to liquid plus funds, which normally carry no entry or exit load.

Longer term investments
Mutual funds also offer investment opportunities in fixed income products for the longer term such as government securities and corporate bonds.
While these instruments carry a fixed rate of interest or coupon, the market rate of these fluctuates virtually on a daily basis.
As a result, values of these schemes can fall in the short term: this happens funnily when interest rates are rising.
However, if I do buy a bond which will mature in, say, 3 years, and hold on till maturity, I can be oblivious of these daily price movements.
(Posted date - 05 Aug 2010)
Past track record
We did a study on the performance of a decent performing government securities fund, and found that, while it had fallen 0.08% in the past one month, appreciation in the past one year was over 11%, and the 3-year returns were a healthy 10.6% p.a. compounded annually.
After long-term capital gains, this meant a very attractive post-tax return of 9.5% p.a. Similarly, a short-term debt fund has earned 7.3% in the past one year, or an equivalent of earning 10% on a 1-year bank deposit for someone in the highest tax bracket.
Do consider debt mutual funds to increase the possibility of returns, but under supervision of a competent financial advisor. Next week, we will delve deeper into this topic.
Source - Economic times
Day Trading Shares