SEBI wants to spend money on investor education.
The NSE has a profit after tax of some Rs 600 crore and spent Rs 3.5 crore on investor education in the year ended March 31, 2010.
----------------------------- A Good Time To Sell Bad Stocks -----------------------------
It's never too late to get rid of 'bad stocks'.
After all, you never know how bad a market crash could get.
But what are these 'bad stocks'? How do you identify them?
For answers to these questions, and more,
click here to read on...
AMFI - the association for mutual fund manufacturers, not for mutual fund investors - is keen to penetrate rural India to open up a source of new investors. It has a marketing spend budget to make mutual funds more popular. Its website has a ticker which reads: "In the current financial year 19 AMCs have conducted 1,123 Investor Awareness Programmes covering 115 cities and 30,589 participants by May, 2011".
Every Finance Minister - in between their trips to the more comforting cities of Hong Kong, London, and New York - will speak with remorse about the lack of penetration of the financial services industry into rural pockets.
Well, before these agencies embark on a mission to rope in rural (and urban) investors into the clutches of the organised financial services industry, I have a suggestion: they should purchase the distribution rights of the award-winning documentary "The Inside Job" and make that mandatory viewing for all existing and potential investors in India.
Instead of all this focus on doing a KYC on clients, the regulators and the various industry bodies that wish to penetrate your savings pool should know whether you have done a KYC of another kind: "Know your Chor". The Inside Job is a good reminder that all that you see - no matter how frequent the TV ads may be - is not holy.
Is the financial services industry similar to organised crime?
"The Inside Job" is a documentary - not a fictitious movie with actors playing assigned roles. Admittedly, the documentary is not for professors of finance and scientists who need proof beyond doubt that the financial system in the US is run by a mafia whose sole job is to maximise their salaries and bonuses.
But it is for us ordinary people who know that something is wrong somewhere in the system but don't quite know what it is.
Like all good documentaries, "The Inside Job" won many awards - but very few people have seen it. It did show up in the Indian theatres - but only in some of them. And it ran for just one week.
Giving his acceptance speech for receiving the 2011 Academy Award, the director, Charles Ferguson, said, "Forgive me, I must start by pointing out that three years after our horrific financial crisis caused by financial fraud, not a single financial executive has gone to jail, and that's wrong."
Please borrow the film from your rental library, get the popcorn and wafers ready, and watch it with your family and friends.
And after you watch the film, please email me what you think of the film and this report in the Business Standard filed when the Finance Minister of India met with the Secretary of the Treasury of the US (equivalent to the post of Finance Minister) on June 27th.
The Business Standard headlined: "Geithner eyes India financial reform, US access" and goes on to write that Geithner stated that the future of India's growth depended on the "next wave" of financial reforms. "I think from our perspective, the most important thing we'd like to see is progress on financial reforms that provide a deeper, more liquid market for corporate debt for infrastructure financing, that allow a little more access of American companies and their technology in the financial area," Geithner said. "Our interests are pretty complementary as a whole."
As an fyi, it is now mandatory for any employee working with Quantum AMC and Quantum Advisors to watch this film.
And, yes, we provide them with the snacks to munch on.
Suggested allocation in Quantum Mutual Funds (after keeping safe money aside)
||Quantum Long Term Equity Fund
||Quantum Gold Fund
(NSE symbol: QGOLDHALF)
|Quantum Liquid Fund
|An investment for the future and an opportunity to profit from the long term economic growth in India
||A hedge against a global financial crisis and an "insurance" for your portfolio
||Cash in hand for any emergency uses but should get better returns than a savings account in a bank
||Keep aside money to meet your expenses for 6 months to 2 years |
Disclaimer: Past performance may or may not be sustained in the future. Mutual Fund investments are subject to market risks, fluctuation in NAV's and uncertainty of dividend distributions. Please read offer documents of the relevant schemes carefully before making any investments. Click here for the detailed risk factors and statutory information"