Attractive offers to light up your vacation May 08, 2009

Attractive offers to light up your vacation

May 8, 2009

Weekly Facts
	Close	Change	%Change
BSE Sensex	11,403.3	268.3	2.4%
Re/US$	50.1	0.1	0.1%
Gold Rs/10g	14,535.0	70.0	0.5%
Crude ($/barrel)	49.1	0.5	1.1%

Weekly change as onMay7, 2009

Attractive offers to light up your vacation

Impact

Many travel agencies are offering attractive tour packages, which could add more excitement to your vacation plan. Individuals, newly married couples, couple with kids, and grandparents could all look at the packages offered. As exams are over and vacations are on, traveling might be the best option to educate the children. Forget the slowdown fears by taking such travels.

Ongoing offers

Tour Packages	Starting from (Rs)
Switzerland	61,000
Maldives	42,000
Mauritius	46,000
Europe	95,000
London	37,000
USA	124,000

(Source: Advertisements on websites and newspapers. The costs include economy class return fare, applicable airport taxes, accommodation, breakfast at the hotel and sightseeing.)

Go ahead; take the vacation, after taking the following steps:

Look for the hidden charges.

Study and understand clearly, what the package includes.

Speak to friends who have taken such packages.

Ensure that you have a valid passport and visa.

New Pension Scheme - A new dimension to retirement planning

Impact

Individuals now have access to another investment avenue, which would help them plan and save for their retirement. This new investment avenue is New Pension System (NPS), which was unveiled on May 1, 2009.

Positives

Negatives

1. The scheme is open to any Indian citizen in the age group of 18 years to 55 years.

2. Individuals can make contributions of Rs 500 pm or Rs 6,000 annually, with no upper investment limit.

3. You can choose your own investment     option and Pension Fund Manager.

4. You can access your account from     anywhere in the country.

5. Investors have the option to choose     how their money should be     managed.

6. It is regulated by PFRDA*.

1. Given it’s a defined contribution scheme, the returns on investment is not guaranteed.

2. Tax will be levied at the time when investors withdraw Money.

3. Limited options.

* Pension Fund Regulatory and Development Authority

Investors should get clear understanding of the scheme, and its suitability to them, before allocating money in it. Also, it would be prudent for them to contemplate all the investment options available, before making the final investment decision.

Is your insurance company safe?

Impact

The Satyam fiasco has had some good impact on the industry as a whole. Regulators are now giving more prominence to the issues pertaining to corporate governance. Lately, IRDA (Insurance Regulatory and Development Authority) has started keeping a close tab on the finances of insurance companies. The insurance companies are now required to intimate the regulator regarding the appointments/reappointments of statutory auditors within a week’s time. Besides, returns should be filed by the insurers on an annual basis with the details of CA firms engaged in audits. Even, accounting practices, expenditures incurred for business expansion and operations as well as the investment pattern followed by insurance companies are also being closely monitored.

Clearly, neither the investors nor regulators would like to see a Satyam like episode taking place again. Hence, it’s now upto the regulatory bodies to take necessary steps in order to stop such instances happening again.

From Nano cars to Nano homes

Impact

Finally, there is someone to take the mantle of middle class people and their needs. After successfully rolling out the world’s cheapest car - Tata Nano, Tata group has now announced another ambitious financial-news-simplified, which could bring smiles to many middle class people. Tata Housing under its ‘Shubh Griha’ financial-news-simplified will be offering value homes in Boisar (in Thane district, Maharashtra). The houses will cost around Rs 3.9 lakh to Rs 6.7 lakh, excluding registration fee. The booking can be done by paying Rs 10,000; and the balance amount needs to be paid after the completion of the financial-news-simplified, which could take atleast two years.

No doubt, this would come as a big relief to many middle class people, who always find it difficult to have a home of their own in big cities. However, individuals should check whether the flats offered meets their requirement or not. Location is another area that they should focus on. No one would like to spend too many hours traveling from home to office and vice-versa.

Minority shareholders taken for granted - another example?

Impact

In the recent times, many Indian institutions have raised objections to the way some of the MNCs operate here. The most recent one is the Pfizer issue. Apparently, Pfizer which owns 41.5% stake in its Indian subsidiary plans to raise it stake to 75%. For this, Pfizer has come up with an open offer to buy back shares from the company's shareholders. The buy back price is pegged at Rs 675 a share while the stock price traded at Rs 722. Now many Indian financial institutions who are shareholders in the company, are opposing the buy back price. And in all likelihood, if the offer price is not revised (for which Pfizer has time till June 18), other institutions will follow suit.

Source: BSE website

This is in fact a change in trend, and rather a welcome change. Going forward, institutions should take such bold steps to oppose something which could adversely impact the minority shareholders.