IIFL one of the largest financial service company in India plans to open IIFL home bonds NCD on Dec 12, 2013. The NCD issue is 250 Cr with option to retain over subscription of additional 250 Cr aggregating to a total up to 500 cr. Let’s checkout features of IILF Home Bond.
IIFL Home Bond details-
Face value of NCD – 1000 Rs/-
Minimum application size is 10,000 Rs/-; Allotment on a first-come-first-served basis;
12.15% p.a. yield; 11.52 coupon with monthly income
Bonds are secured and carry maturity 5 years
No TDS on interest if held in DEMAT Form
Bonds will be listed on NSE and BSE
Minor through guardian can apply
Rated AA- by CARE and CRISIL
Monthly interest payment option to enable regular cash flows to investors
No Call & Put Option available, which means company Cannot prematurely redeem the bonds
Offer opens on December 12, 2013 and closes on December 20, 2013
Allotment will be done on first come first serve basis
This is the fourth issue from IIFL Group in the last 3 years.
Looking at first glance with 12.15% yield & 11.52% coupon is very lucrative offer but we should look at return on a post-tax basis.
For someone in highest tax bracket 30% this coupon rate of 11.52% will reduce to 8.12% post tax. For tax bracket of 20% it will reduce to 9.6% post tax and to 10.36% for 10% tax bracket.
Post tax return is slightly higher compare to FD. We recommend you to invest in this NCD only if you are falling under lower tax bracket (10% slab) and happy with return of 10.36%.
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This Sunday I met with the young aspiring entrepreneur. He shared with me his business idea. He was confused that how to quit 9-5 job and turn this business idea in to reality. Today we see many people like this, who are dreaming for entrepreneurship but they don’t know what to do. In order to help them we are herewith few pointers for these new & aspiring entrepreneurs.
Before quitting job and starting business you must do one thing is analyze your financial situation. You will need money every month to fulfill your need like feeding mouth, EMI and other utility and household expenses. You must keep at least 6-8 month expense aside.
Another important point which you should take care of is, if your business fails what is your exit or roll back strategy. We advise that whenever you leave the job don’t burn relation with your employer. Keep in touch at least for first few months.
Tips to New & Aspiring Entrepreneurs
(1) Decide your line of business
Decide which business is most suitable for you. Search your soul. Getting success will be difficult if you are not with your soul and not passionate about your business.
Apart from this you must do research the market. Product study & market analysis always boost your confidence.
(2) Gain Work Experience
One should acquire skills and knowledge before getting instrumental for business. You must work first and learn the basics of a particular business. Do not just think of only earning money through salaries, but earn knowledge and experiences.
(3) Arrange for capital & resources
Capital & resource is top most requirements for starting any business. If you don’t have capital you can borrow from family or friend. We recommend building capital on your own. If require you can opt for small part time sales assignment believe me sharpening your skill on sales and marketing will help you a lot. Good salesman can become good businessman.
Apart from capital you may need place/office to start business. If you don’t have any suitable place/office we recommend taking office on lease.
(4) Getting Started
Entrepreneurship is a journey & not a destination to begin this journey you must complete several formalities. First, you need to register your business. Another thing you need to do is obtain a GSTIN number and open business credit card Singapore.
(5) Don’t be afraid of initial failure
Remember failure always teach us priceless lesson which school or university cannot teach. Failures are temporary setbacks, stepping stone to success.
Sufficient time is required to establish and run the business so make up your mind don’t afraid of initial failure and don’t carry away by success.
(6) Try and try until you succeed
You must continue your try till you get success. This reminds me about important lesson taught by Abraham Lincoln who failed so many time but never give up.
Abraham Lincoln could have quit many times but he didn’t and because he didn’t quit, he became one of the greatest Presidents in the history of US.
You must try and try until you succeed.
Remember “Quitter never wins, Winner never quits”.
(7) Think beyond money
Sometime entrepreneur should think beyond money. Remember customer is king rather than thinking about money one should think of increasing customer satisfaction & services which will always help in enhancing business.
Remember being entrepreneur is not just thinking or remodeling old business idea. It’s about brining creativity, innovation to business and servicing society and nation.
Just checkout following video “Muruganantham school dropout social entrepreneur from Tamilnadu brings idea to make low cost sanitary napkin, creating thousands of jobs for rural woman & helping nation and society.”
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2013 was year of ups and down for stock market. In January 2013 sensex started its journey from 19513 level & observed fall in August 2013, not only that sensex reached to all time high 21293 in November 2013. Currently sensex is on 20996 level.
Soon we will be entering in to New Year 2014. With improvement in economic condition and business scenario we hope 2014 will be good year for stock market & investors. We are herewith top 7 multibagger stocks for 2014.
Top 7 Mutlibagger Stocks for 2014
(1) HCL Technologies
CMP -1127
Target – 1350
Upside -22%
HCL Technologies is an IT services company providing software-led IT solutions, remote infrastructure management services and BPO services. The company has a leading position in remote infrastructure management services which has helped it win large IT outsourcing contracts.
In the current environment, we believe HCL Tech is well placed in terms of its business strategy. The results of the same are evident in its consistent outperformance in terms of volume and revenue growth. The company has allayed the apprehensions on the margin front by consistently improving its margins despite head winds.
We recommend buying this stock with target of Rs 1350.
(2) TCS
CMP -2000
Target – 2600
Upside -30%
Another stock pick for 2014 is also from IT space. TCS providing IT services & involved in outsourcing business from India. TCS is well established is known for services. TCS delivered robust financial & operational performance in last two years.
Going ahead too, we believe the company is well positioned to capitalise on to the opportunities that the marketplace has to offer due to its scale.
We recommend buying this stock with target of Rs 2600.
(3) Larsen & Toubro
CMP -1096
Target – 1250
Upside -14%
Larsen & Toubro (L&T), the largest engineering, construction & infrastructure company in India, more or less L&T is a direct beneficiary of the strong domestic infrastructure development and industrial capex boom.
Despite challenges like stiff competition, the company has given a robust guidance of 15% growth in the future. A sound execution track record, a strong order book and a healthy performance of its subsidiaries reinforce our faith in L&T.
We recommend buying this stock with target of Rs 1250.
(4) Reliance Industries
CMP -867
Target – 1010
Upside -16%
Reliance Industries Ltd (RIL) has a strong presence in the refining, petrochemical and upstream exploration businesses. Recently we heard news that gas production from the Krishna-Godavari-D6 field has fallen significantly but with the government approval for additional capex, we believe production will improve going ahead.
We recommend buying this stock with target of Rs 1010.
(5) Sun Pharma
CMP -582
Target – 660
Upside – 13%
Sun Pharma is growing rapidly in pharmaceutical space which is reflected from result 40% Y-o-Y revenue growth and 39% Y-o-Y profit growth in FY2013.
With a strong cash balance, Sun Pharma is well positioned to capitalise on the growth opportunities and inorganic initiatives. Its debt-free balance sheet insulates it from the negative impact of the volatility in the currency market.
We recommend buying this stock with target of Rs 660.
(6) Zee Entertainment Enterprises
CMP -272
Target – 310
Upside – 13%
This is pick from entertainment space. With increase in subscription revenue and growth we expect price of this stock to rise further.
ZEEL’s management acknowledged that the recent TRAI recommendation of capping the advertisement time at 12 minutes per hour would have an adverse impact on its advertisement volume. The company will take adequate hikes in the advertisement rates in order to negate the impact of reduced volumes. Thus, we expect a very minimal impact on the blended advertisement growth in FY2014 and FY2015.
We recommend buying this stock with target of Rs 310.
(7) Bajaj Finance
CMP -1485
Target – 1600
Upside -8%
Bajaj Finance has successfully evolved a growth strategy based on product diversification, geographic penetration, and cross-selling.
Bajaj Finance is strong contender to receive a bank license and is best placed to transition smoothly into one. Bajaj Finance has an existing branch infrastructure and strong brand recall.
We recommend buying this stock with target of Rs 1600.
7 Mutlibagger Stocks for 2014
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Note – Stock recommendation given above is after careful research and study; if required you can concern financial advisor or expert before taking any position in above stocks.
My friend is businessman and does not earn regular income. He wants to invest money to get regular monthly income.
Who don’t like regular income? I know you also want to have regular income by investing money in financial product. To help you we have evaluated various investment option and we are herewith 10 best investment option to get regular monthly income in India.
10 Best Investment to get regular monthly income
(1) Post office MIS
MIS broadly known as Monthly Income Scheme as name suggests one can get assured monthly return from investment under this scheme. Rate of return under this scheme is fixed 8%. Investment period under this scheme is 5 years. One will get back his principal amount along with a 5% bonus at the end. One can invest only up to 4.5 lacs for an individual account and 9 lacs in a joint account.
MIS Example – Suppose Mr X invests 3 lacs in MIS. Monthly returns in this case will be 2000 Rs/- per month and Mr.X will get 15000 Rs/- additional bonus at the end of six year on maturity.
Interest Income from MIS should be added to your income and necessary tax to be paid.
Fixed Deposit (FD) is a low risk financial instrument where an investment is made for a fixed period of time resulting in a fixed rate of returns. This is best suited for investors with a low risk appetite and who wants to invest a fix sum of money to earn a fixed rate of interest.
Fix deposit is most popular investment option which can offer monthly, quarterly, yearly return. The interest rate will depends on the tenure for which you open fixed deposit. Bank FD would offer 8-9% return per annum.
FD Example – Suppose Mr X invests 1 lac in FD for 1 year with 9% return per annum. Yearly interest under this case will be 9000 Rs/- with monthly income of 750 Rs/-
Interest amount from FD is taxable and if your income is not in taxable range you need to submit form 15G/15H.
Senior citizen saving scheme is special scheme only for senior citizens. Investment in this scheme can be made only by people of 60 years of age or above.
The Senior Citizen’s Savings Scheme has a maturity of 5 years, which is extendable by 3 years. Rate of return offered in this scheme is 9 % per annum. Interest income will be paid every 3 months.
(4) Monthly Income Plan of mutual funds
Certain mutual funds have inbuilt structure of providing regular income which is called as MIP (monthly income plans). Like MIS, FD or SCSS return in MIP is not guaranteed it will fluctuate and are in range of 8-9% .
Amount paid by MIP is called as dividends. The dividends are tax-free in hands of investors.
Mutual fund is most popular investment option in India. If you have invested in equity or debt mutual funds you can generate regular monthly income from mutual funds by selecting SWP (systematic withdrawal plan).
SWP is reverse of SIP; It is withdrawal of fixed number of mutual funds unit and selling it in market. This is slight risky way to generate monthly income and not advisable for those who are looking for fix kind of return.
(6) Dividend from Mutual funds
Certain Mutual funds have option of dividend payout. If you don’t want to invest in equity directly you can opt for mutual funds with dividend payout.
This mutual funds provide dividend on yearly basis & not monthly, but if you have diversified and invested in multiple mutual funds like this you can get regular dividend income.
Equity investments are risky in nature. But if you have knowledge and skill you can make very good money in stock market.
Apart from appreciation in stock value you can take benefit of dividend. Dividend payout from equity is on yearly basis. If you diversify your stock investment in 10-12 good stock you can defiantly generate regular income.
(8) Rent from Real Estate
Real estate is another good way to generate regular income. Real estate investment is high risk high return affair. You can generate income by renting property purchased by you.
There are risks involved in this option risk like not getting tenants or right tenants or fall in property rates.
Long term government bond is one of the safest options to get regular income. Government bond usually offers 8% return half-yearly. These bonds are long term bonds and at the end of the tenure you will get back your principal amount.
These bonds are also tradable in secondary market, so you can also sell them if you want to get rid of them.
(10) Annuity from Insurance companies
Annuity from Insurance plan is also one option to generate regular monthly income. But this option will take time to generate income. Returns on these plans will depend on pension tenure and which option you have taken while buying the product.
As per me this is last option and not advisable, if you are not capable of doing anything else with your money you can opt for this option.
