ULIPs vs MFs
Unit-linked insurance products (ULIPs) and mutual funds have always been compared. While some experts think insurance and investment objectives are two different things and rather than buying ULIPs they recommend MFs for investment and term plans for insurance, others prefer ULIPs. Regulators of both industries — insurance and mutual fund — have issued new guidelines related to cost structure. While in MFs, there is no entry load, in the insurance sector, the Insurance Regulatory and Development Authority (IRDA) has capped the maximum cost of ULIPs.
New cost structure
In view of the change in the cost structure, SundayET discusses the issue with experts to find out which of the two is a preferred product and for whom. But first let’s take a look at the new guidelines issued by IRDA. Come October and the new guidelines of the IRDA on the cap on charges on ULIPs, would be implemented. According to the new guidelines, insurance companies are required to put a charge in a way that the difference between the gross yield and net yield should not be more than 3% in case the tenure is equal or less than 10 years. Also, out of this, the fund management charges should not be more than 1.5%. According to a certified financial planner, currently the difference between gross and net yield is over 4% in certain cases.
Gross yield
Gross yield means the overall return and is the difference between the money that an investor invests and that generated by the fund manager. Net yield is the return that an investor gets in his hand after deducting all charges. According to the IRDA guidelines, however, if the policy tenure is more than 10 years, the difference between gross yield and net yield should not be more than 2.25%. Also, out of this, the fund management charges should not be more than 1.25%. Any new product that gets launched from October will have to follow these rules. Also, insurance companies will have to implement these measures for their existing policies. However, they need to do it by year end.
Debt vs equity
According to Malay Ghosh, president at Reliance Life Insurance, the current guidelines aim to ensure that you get a fair deal irrespective of the company and scheme you choose. The guidelines, however, may have a negative impact on the distributors in the short term, but they certainly benefit the existing and new investors of ULIPs, according to K Venkatesh, national head distribution at Geojit BNP Paribas Financial Services. According to Veer Sardesai, MD, Sardesai Finance, a financial planning company, MFs and ULIPs are of two categories : those that invest in debt or fixed income instruments and those that invest in equities. In the equity segment, the capping of expenses of ULIPs at 3% or 2.25% pa makes it costs competitive with equity MFs. ULIPs will also provide insurance. Since this cost involves the mortality charge as well, it could probably be a good product for an older person whose insurance or the mortality charges are higher. You can benefit from lower cost of insurance and get investments managed at competitive costs.
Time frame
However, one must not forget that ULIPs are long-term products. For a shorter duration it is always advisable to go with equity mutual funds as in case of ULIPs, the cost in initial years is relatively much higher. Nevertheless, in case of in the debt segment, the cap on ULIPs remains quite high for a pure debt based fund and in these circumstances a mutual fund will probably be preferred. Currently , many of the mutual fund companies charge fund management of around 2.5%. But as per the recent guidelines of IRDA, insurance companies are allowed to charge not more than 1.5% in case the tenure up to 10 years and 1.25% if the tenure is more than 10 years. However, though the recent developments are expected to benefit investors but mutual fund and insurance companies are yet to come out with new funds and policies under the new rules. According to Sardesai, one will have to pursue the new ULIP policies and the new MF documents, once they are launched, before concluding which of the two is the preferred product.
Source:economictimes.com
Sunday, August 2, 2009
Saturday, August 1, 2009
Teaching your child value of money
How important is it to teach your children about money, its place, and its value? Considering that money does, in a lot of ways, make the world go round, you might think it one of life's obvious lessons, gained through experience. Or you might assume that money management is tackled in school.
Think again. Arming your child with the right attitude and necessary skills at the right time will afford them with the greatest possible advantage: the opportunity and power to make decisions.
How, and when to communicate money values to children is, however, one of the toughest challenges that parents face.
Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend.
Children learn faster by observing
How do you actually go about doing this?Discuss money openlySo many parents do not discuss finances within the family either because it's considered inappropriate, or personal. Consider this: if you don't actively provide the correct information to your child, how is he/ she to know, understand and inculcate your values? Therefore, as soon as your child can count, introduce him/ her to money. Observation and repetition are two important ways in which children learn.As they grow older, have frank discussions about how to save it, how to make it grow, and how to spend it wisely.
Help distinguish between needs and wants
These are habits that die hard, and influence how your child will approach money and its place in his/ her life.If they can differentiate between need-to-have and nice-to-have, then they're halfway to a solid and secure future.
Set goals for your child
Better still, help your child set his/ her own goals. If it's a toy that they must have, then regard this as a good opportunity to teach your child how to be responsible with money, and prioritise between what they want, and mindless spending. Allow your child to make spending decisions, which means that they will learn from the choices they make.And learn that it's to their advantage to do a little homework before buying, waiting for the right time to buy, and actually deciding if the product selected is what they really want.
Encourage your child to save
Begin simply, as your parents might have done, with a piggy bank. If you do give your child an allowance, get them to set aside a small portion of it every time. Explain and demonstrate the concept of earning interest income on savings. Incentivise it; offer to match what your child saves on his/ her own.
Teach your child to maintain record of money
Help your child maintain a record of money saved, invested, or spentTo make it easy, use 12 envelopes, 1 for each month, with a larger envelope to hold all the envelopes for the year.Encourage your child to save receipts from all purchases in the envelopes and keep notes on what he/ she does with his/ her money.
Learning by observing is the most powerful tool
Use real-life experiences to demonstrate everything you want to teachLearning by observing and doing is the most powerful tool. Such as when you go grocery shopping, and can use the opportunity to showcase planned spending, or how to recognise value for money. Or if you decide to use a credit card at a restaurant, you could show your child how a credit card works, when it can be used, and how to calculate a tip!Finally, your child needs to understand that spending money can be fun and very productive when spending is well-planned, and that a penny saved is, indeed, a penny earned!
Source: BankBazaar.com
Think again. Arming your child with the right attitude and necessary skills at the right time will afford them with the greatest possible advantage: the opportunity and power to make decisions.
How, and when to communicate money values to children is, however, one of the toughest challenges that parents face.
Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend.
Children learn faster by observing
How do you actually go about doing this?Discuss money openlySo many parents do not discuss finances within the family either because it's considered inappropriate, or personal. Consider this: if you don't actively provide the correct information to your child, how is he/ she to know, understand and inculcate your values? Therefore, as soon as your child can count, introduce him/ her to money. Observation and repetition are two important ways in which children learn.As they grow older, have frank discussions about how to save it, how to make it grow, and how to spend it wisely.
Help distinguish between needs and wants
These are habits that die hard, and influence how your child will approach money and its place in his/ her life.If they can differentiate between need-to-have and nice-to-have, then they're halfway to a solid and secure future.
Set goals for your child
Better still, help your child set his/ her own goals. If it's a toy that they must have, then regard this as a good opportunity to teach your child how to be responsible with money, and prioritise between what they want, and mindless spending. Allow your child to make spending decisions, which means that they will learn from the choices they make.And learn that it's to their advantage to do a little homework before buying, waiting for the right time to buy, and actually deciding if the product selected is what they really want.
Encourage your child to save
Begin simply, as your parents might have done, with a piggy bank. If you do give your child an allowance, get them to set aside a small portion of it every time. Explain and demonstrate the concept of earning interest income on savings. Incentivise it; offer to match what your child saves on his/ her own.
Teach your child to maintain record of money
Help your child maintain a record of money saved, invested, or spentTo make it easy, use 12 envelopes, 1 for each month, with a larger envelope to hold all the envelopes for the year.Encourage your child to save receipts from all purchases in the envelopes and keep notes on what he/ she does with his/ her money.
Learning by observing is the most powerful tool
Use real-life experiences to demonstrate everything you want to teachLearning by observing and doing is the most powerful tool. Such as when you go grocery shopping, and can use the opportunity to showcase planned spending, or how to recognise value for money. Or if you decide to use a credit card at a restaurant, you could show your child how a credit card works, when it can be used, and how to calculate a tip!Finally, your child needs to understand that spending money can be fun and very productive when spending is well-planned, and that a penny saved is, indeed, a penny earned!
Source: BankBazaar.com
Friday, July 24, 2009
A Debt Fund Hazard
Interest rates in the Indian economy have an unusually cloudy outlook currently. There are equally legitimate forces that could pull rates up or down. On the one hand, we’ve just been handed a Union budget that has painted a big upward-pointing arrow on interest rates. The government needs money, and lots of it. It hardly seems possible for it to squeeze out so much borrowing out of the same economic space and not starve private borrowers off reasonably-priced funds.
On the other hand, we hear the declared intentions from many worthies that interest rates won’t be allowed to go up and that the funds needed for growth will remain available to the private sector. The finance minister (FM) had said so. Some of his inner circle of economic advisors have said so, and now the chairman of the State Bank of India has also said so. You could be forgiven for assuming that the motive for these statements is more to strike a politically expedient posture than anything else. The FM and company know, as everyone else does, that money is going to be expensive and tight, at least till growth takes off in a big way. However, this posturing hasn’t worked in shifting sentiment. There’s no one in industry who believes that the availability and interest rates of debt are going to be easy. Businesses are scaling their short- and medium-term plans on expectation of a high-interest rate scenario and that’s going to affect growth until someone has proof of the opposite.
As individuals, this outlook may affect us in different ways, but as investors, it should have a sharp impact on our attitude towards investing in debt funds. Rising or uncertain interest rates have the worst impact on all, but the shorter-term debt funds. If you were looking to debt funds for stability, then short-term funds are your only viable option.
This brings us to the widespread misconception rife among retail investors. What are debt funds for? Many individual investors think of debt funds as equivalent to (or better substitutes for) fixed-income investments. They invest in these funds for longish periods of time and leave them there, as they would with a bank deposit or their PPF account. This isn't a good thing to do. These funds are far from being suitable as long-term fixed income investments for conservative individual investors.
In periods longer then a few months, debt funds rarely give returns that are superior to what an individual would get from more suitable asset types. Currently, the average three year returns for most types of debt funds range from 6 per cent to 8.5 per cent per annum. There's no way that this is a better alternative to bank FDs or even better, a sovereign-guaranteed asset like a Post Office deposit. In fact I've always thought that the Indian post office savings system is a hidden gem that is severely under-utilised by the typical urban investor. Good returns, along with government-guaranteed safety and no tax deduction at source (TDS) makes it far superior to many other ways of earning a decent and safe fixed-income return. It is true that debt funds are far more tax-efficient than bank deposits. However, if you look at the actual quantum of the difference this causes, then you’ll see that it doesn’t become a serious amount at the normal corpus that non-high net worth (HNI) investors have.
Debt investors should be moving between different types of debt funds as the economy goes through interest rate cycles. In times of tight or uncertain interest rates they should be in shorter-term funds. In times of falling rates they should be in longer-term funds. All this makes sense only for professional investors, like treasury managers of corporations who need to park funds in a risk-less manner for specific periods of time. This active investment management is actually what investors practice for equity funds where they should just invest and forget.
source:valueresearchonline.com
Sunday, June 21, 2009
Investors need to follow basics to make the most
There is something aspirational about investing in the stock market. You may choose to believe it or not, but when you see those stock prices flashing across the bottom of the television screen and hear people discussing how much money they have made in the market, even those who claim to be totally uninterested often have a temporary desire to be a part of this group.
So they open a demat account, ask a couple of friends for stock suggestions and simply put some available money into shares. But when the markets take a dip and the possibility of loosing money looms, they exit the markets with less money than they initially entered.
In fact, it is this ad-hoc attitude to investing that has caused the downfall of many a first time investor in the market. Irrespective of whether you are twenty-five or fifty-five when you first begin to invest; there are a set of thumb rules that you need to keep in mind while investing. With markets sentiments improving and many young investors showing the desire to take the ride down the investment highway, SundayET outlines these rules of the game.
Teething rings
There are two fundamental decisions that you need to make before you begin the actual formalities of investing, the first of which is an assessment of how long you propose to stay invested in the market.
Be realistic at this stage, as your investment strategy is fundamentally driven by whether you are a short-term, medium-term or long-term investor.
However, experts recommend that to reap the benefits of investing in equity, it is better for an individual to remain invested long-term.
"Post-returns on equities are likely to beat inflation and are better than most other asset classes (on a risk adjusted basis). So individuals must have a long term view and commit funds that will not be required for at least five years,” says Veer Sardesai, CEO of Sardesai Finance.
Another critical element to making successful investment is your ability to take risks or to catch a good night of sleep irrespective of volatility in the markets, especially after what we have seen happening in the markets last year. According to Rajiv Deep Bajaj, vice chairman and managing director, Bajaj Capital, “The investor needs to analyse his ability and willingness to lose some or all of his/her original investment in exchange for greater returns.”
To a great extent, the classification of whether you are a conservative, moderate or aggressive investor is also dependant on how much you earn and what your liabilities are. So, if you have good capital surpluses to offset losses in the market, then you could afford to take the aggressive route to investment.
Building blocks
When it comes to deciding on the rules of asset allocation, the thumb rule is that you should subtract your age from the number 100 and invests only that much of your portfolio in equity. But with markets currently improving, you need to be wary of brokers who will try to instill the feeling that the only way for the markets to move is upward and urge to invest more on stock.
Experts, however, recommend that in the current situation, first time investors should follow a more diversified approach to investing and look at stocks of blue-chip companies such as those in the BSE Sensex or the NSE Nifty, which are considered safer than the mid-cap stocks.
“In these current volatile situations, if the investor wishes to invest in equity, it is best if the investor sticks to investing in diversified equity funds/large cap funds, which have a proven track record,” says Bajaj. He adds that investors should further look at investing through SIP as it allows them to take advantage of the principle of compounding and also allows them to average out the cost of other investments.
But if you want to do it your own way, there here’s another adage that will help you pick right: It is better to buy great stock at a good price than fair stock at a cheap price.
According to Sardesai, people often have the tendency to buy a stock quoting at a price less than Rs.10. But he warns that there is a generally a reason for the low price and there is the possibility of it sliding down even further. Also keep an eye on the quality of the management.
Its always better to put your money behind a management which has a high level of transparency and looks after its shareholders, in contrast to simply going after cheap stock. "However, if they choose to invest in an IPO, then they should analyse the IPOs and strive to invest in the IPOs of PSUs,” says Bajaj.
Never succumb to investing in an IPO on the basis of promises that good returns are always assured.
Don't play with fire
Another battle that you will have to fight is the urge to book profits by buying when prices are low and selling when they are at their peak and re-entering the market when prices dip again. However, timing the markets rarely works and you run the risk of loosing fundamentally good stock in the process. Also remember that risk and return go hand in hand.
“Taking excessive risks may give superlative returns but you stand to loose all your capital but it is better to be safe than sorry,” says Sardesai. You should also resist the urge to follow the investment practices of your friends and to compare the returns on your portfolio with that of your friends. If in doubt, make it point to seek professional help from a financial advisor rather than from your peers.
Source: economictimes.com
So they open a demat account, ask a couple of friends for stock suggestions and simply put some available money into shares. But when the markets take a dip and the possibility of loosing money looms, they exit the markets with less money than they initially entered.
In fact, it is this ad-hoc attitude to investing that has caused the downfall of many a first time investor in the market. Irrespective of whether you are twenty-five or fifty-five when you first begin to invest; there are a set of thumb rules that you need to keep in mind while investing. With markets sentiments improving and many young investors showing the desire to take the ride down the investment highway, SundayET outlines these rules of the game.
Teething rings
There are two fundamental decisions that you need to make before you begin the actual formalities of investing, the first of which is an assessment of how long you propose to stay invested in the market.
Be realistic at this stage, as your investment strategy is fundamentally driven by whether you are a short-term, medium-term or long-term investor.
However, experts recommend that to reap the benefits of investing in equity, it is better for an individual to remain invested long-term.
"Post-returns on equities are likely to beat inflation and are better than most other asset classes (on a risk adjusted basis). So individuals must have a long term view and commit funds that will not be required for at least five years,” says Veer Sardesai, CEO of Sardesai Finance.
Another critical element to making successful investment is your ability to take risks or to catch a good night of sleep irrespective of volatility in the markets, especially after what we have seen happening in the markets last year. According to Rajiv Deep Bajaj, vice chairman and managing director, Bajaj Capital, “The investor needs to analyse his ability and willingness to lose some or all of his/her original investment in exchange for greater returns.”
To a great extent, the classification of whether you are a conservative, moderate or aggressive investor is also dependant on how much you earn and what your liabilities are. So, if you have good capital surpluses to offset losses in the market, then you could afford to take the aggressive route to investment.
Building blocks
When it comes to deciding on the rules of asset allocation, the thumb rule is that you should subtract your age from the number 100 and invests only that much of your portfolio in equity. But with markets currently improving, you need to be wary of brokers who will try to instill the feeling that the only way for the markets to move is upward and urge to invest more on stock.
Experts, however, recommend that in the current situation, first time investors should follow a more diversified approach to investing and look at stocks of blue-chip companies such as those in the BSE Sensex or the NSE Nifty, which are considered safer than the mid-cap stocks.
“In these current volatile situations, if the investor wishes to invest in equity, it is best if the investor sticks to investing in diversified equity funds/large cap funds, which have a proven track record,” says Bajaj. He adds that investors should further look at investing through SIP as it allows them to take advantage of the principle of compounding and also allows them to average out the cost of other investments.
But if you want to do it your own way, there here’s another adage that will help you pick right: It is better to buy great stock at a good price than fair stock at a cheap price.
According to Sardesai, people often have the tendency to buy a stock quoting at a price less than Rs.10. But he warns that there is a generally a reason for the low price and there is the possibility of it sliding down even further. Also keep an eye on the quality of the management.
Its always better to put your money behind a management which has a high level of transparency and looks after its shareholders, in contrast to simply going after cheap stock. "However, if they choose to invest in an IPO, then they should analyse the IPOs and strive to invest in the IPOs of PSUs,” says Bajaj.
Never succumb to investing in an IPO on the basis of promises that good returns are always assured.
Don't play with fire
Another battle that you will have to fight is the urge to book profits by buying when prices are low and selling when they are at their peak and re-entering the market when prices dip again. However, timing the markets rarely works and you run the risk of loosing fundamentally good stock in the process. Also remember that risk and return go hand in hand.
“Taking excessive risks may give superlative returns but you stand to loose all your capital but it is better to be safe than sorry,” says Sardesai. You should also resist the urge to follow the investment practices of your friends and to compare the returns on your portfolio with that of your friends. If in doubt, make it point to seek professional help from a financial advisor rather than from your peers.
Source: economictimes.com
Sunday, June 7, 2009
How to make a hassle-free health insurance claim!
We often read or hear about health claims being rejected by insurers on flimsy grounds. Sometimes, however, the insured is also to be blamed simply because he/she is found to have made false declarations while taking the policy or failed to go through the fine print before buying one.
True, health covers are bought with a view to taking cover against any financial constraint that may arise because of a medical emergency, and insurance companies are bound to honour legitimate claims within policy limits. At the same time, however, it must be understood that insurance companies are not charitable organisations. Therefore, they can’t be expected to honour a claim if the claim is not made in accordance with agreed terms or if a particular disease is listed under the policy exclusions.
“The repudiation of a claim may be due to many reasons such as loss falling beyond the scope of policy coverage, exclusions under policy, or breach of conditions or warranties, among others,” says Shreeraj Deshpande, head – health insurance, Bajaj Allianz General Insurance.
Generally, however, “the primary reason for an insurer rejecting a claim is that a particular disease is listed under the policy exclusions and consequently cannot be covered,” says Ajay Bimbhet, managing director, Royal Sundaram Alliance Insurance Company Ltd.
Therefore, only getting a health cover is not enough. It is equally important to read and understand the terms and conditions of a policy well and be clear about the policy you plan to take in order to avoid any hassle or heartburn in the future. It would also help if one knows how to make a claim and what to do in case something goes wrong.
DIFFERENT MODES OF SETTLEMENT
While buying a health policy, the customer is required to opt for either cashless or reimbursement mode of settlement. In both the cases, however, it is important to understand the claim procedure laid down by the insurers. Simply because at the time of emergency, the understanding of the right procedure can help reduce unwarranted panic.
CASHLESS CLAIMS
Insurers have tie-ups with a network of hospitals across the country. If the customer opts for cashless claims, he/she has the facility of cashless treatment at the networked hospitals. This list of the network is generally available in the policy kit and also on the website of the insurers.
“In case of emergency hospitalisation and admission, the TPA (third party administrator) needs to be intimated through a toll-free number within 24 hours. In case of a planned admission, however, the TPA is to be informed three days in advance. Also, the insured must remember to quote his/her health card membership number and/or policy number,” says Bimbhet.
While getting admission, the cashless request form available with the hospital insurance help desk is to be filled and certified by the doctor. Having done that the form with supporting medical records is to be faxed by the hospital to the TPA’s fax number.
On scrutinizing the documents, the TPA conveys the decision to the hospital, the sanction of the cashless request or calls for additional documents if required.
On approval of the cashless facility by the TPA, the hospital bills are settled directly by the insurer (subject to policy limits). However, inadmissible amounts such as telephone, food and attendant charges are to be borne by the customer.
If the customer chooses to go to a hospital which is not part of the network, he/she can still get a reimbursement directly from the insurer.
REIMBURSEMENT OF CLAIMS
This facility is available at network hospitals as well as non-network hospitals. Under this facility, the insured can avail of treatment and settle all the bills with the hospital and file a claim for reimbursement. The insurer, however, has to be intimated immediately on admission not later than seven days from the date of discharge. The policy certificate number should be quoted and the claim can also be intimated online through the website of the company.
Generally the following claim documents (originals only) are to be submitted to the insurer within 30 days from the date of discharge:
1. Duly-filled claim form along with the doctor’s certificate (forming part of claim form)
2. Discharge summary
3. Bills and receipts (including advance and final receipts)
4. Prescriptions for medicines and doctor’s advice for lab tests
5. Diagnostic Test Reports, X Ray, scan and ECG and other films
Claims are processed on receipt of all required documents and additional documents. Information, if any, required is called for after the scrutiny of the claim. “The cheque is despatched to the customer if the claim is admissible. If not, a repudiation letter explaining the reasons for denial is sent,” says Bimbhet.
PRECAUTIONS/DOS & DON’TS WHILE BUYING A COVER
You need to exercise precaution not only while making a claim, but also while planning to buy a health cover, because here you start with choosing the right product for yourself, and opting for any unsuitable one may land you in trouble later on.
First, you need to understand whether the health insurance coverage fulfils your requirement or not. Then decide on which members of your family should be part of the health insurance policy. Ideally everyone should be covered including children.
The third step would be to settle on the total amount of health coverage needed – either on an individual basis or on a family floater basis. Besides, you also need to scrutinise the list of exclusions of the policy – both permanent and period-based.
Also check the network coverage of the Third Party Administrator (TPA) engaged by the insurance company.
PRECAUTIONS/DOS & DON’TS WHILE MAKING A CLAIM
You need to take precautions while filing a claim too. For instance, in case of a cashless claim, always carry the health card which gives you the unique membership number that is used by the TPA to identify you and provide the cashless benefit.
In the case of reimbursement of claims, however, always insist on getting the original discharge summary and reports from the hospital.
Also keep copies of all lab reports for future medical follow-ups, and retain copies of all claim documents before submission to the insurance company (This will help in case of an unfortunate event of the documents getting lost in transit).
Besides, insist on getting a properly-numbered, stamped, signed and sealed receipts from the hospital/ physician / surgeon for any payments made. Preserve the prescriptions given by the doctors for medicines and lab tests as these are to be submitted along with other claim documents.
For all traffic accidents, however, ensure that a complaint is lodged with the police and get a copy of the FIR.
WHAT IF AN INSURER REFUSES TO HONOUR A CLAIM?
Despite choosing a heath cover carefully and filing the claim as per the agreed terms, sometimes claiming insurance compensation becomes a hard nut to crack, particularly in cases when insurance companies are able to find some loopholes to repudiate a claim. In such cases, you need to approach higher authorities to seek compensation.
“If an insurer repudiates a claim, insist on a repudiation letter which explains the basis on which the claim is repudiated. If the customer is not happy with the contents, he may represent the claim again as per the escalation matrix in the grievance redressal machinery. If the customer is still not satisfied, he/she may approach the insurance Ombudsman, whose decision is binding on the insurer,” says Deshpande.
Thus, if a customer is not satisfied with the response of the insurer, he/she can always approach the Ombudsman who is specially appointed by the regulator to redress the grievances of the customer. The complaint by an aggrieved person has to be made in writing, and addressed to the insurance Ombudsman of the jurisdiction under which the office of the insurer falls.
“The governing body has appointed 12 Ombudsmen across the country allotting them different geographical areas as their areas of jurisdiction. The Ombudsman may hold sitting at various places within their area of jurisdiction in order to expedite disposal of complaints. The Ombudsman shall pass an award within a period of three months from the receipt of the complaint. The awards are binding upon the insurance companies,” says Bimbhet, adding, “the policy holder also has the option of approaching consumer forums and courts of law for redressal of his/her grievances.”
However, if you are still unable to get justice, then just blame your luck! And what else can you do?
Source:www.economictimes.com
True, health covers are bought with a view to taking cover against any financial constraint that may arise because of a medical emergency, and insurance companies are bound to honour legitimate claims within policy limits. At the same time, however, it must be understood that insurance companies are not charitable organisations. Therefore, they can’t be expected to honour a claim if the claim is not made in accordance with agreed terms or if a particular disease is listed under the policy exclusions.
“The repudiation of a claim may be due to many reasons such as loss falling beyond the scope of policy coverage, exclusions under policy, or breach of conditions or warranties, among others,” says Shreeraj Deshpande, head – health insurance, Bajaj Allianz General Insurance.
Generally, however, “the primary reason for an insurer rejecting a claim is that a particular disease is listed under the policy exclusions and consequently cannot be covered,” says Ajay Bimbhet, managing director, Royal Sundaram Alliance Insurance Company Ltd.
Therefore, only getting a health cover is not enough. It is equally important to read and understand the terms and conditions of a policy well and be clear about the policy you plan to take in order to avoid any hassle or heartburn in the future. It would also help if one knows how to make a claim and what to do in case something goes wrong.
DIFFERENT MODES OF SETTLEMENT
While buying a health policy, the customer is required to opt for either cashless or reimbursement mode of settlement. In both the cases, however, it is important to understand the claim procedure laid down by the insurers. Simply because at the time of emergency, the understanding of the right procedure can help reduce unwarranted panic.
CASHLESS CLAIMS
Insurers have tie-ups with a network of hospitals across the country. If the customer opts for cashless claims, he/she has the facility of cashless treatment at the networked hospitals. This list of the network is generally available in the policy kit and also on the website of the insurers.
“In case of emergency hospitalisation and admission, the TPA (third party administrator) needs to be intimated through a toll-free number within 24 hours. In case of a planned admission, however, the TPA is to be informed three days in advance. Also, the insured must remember to quote his/her health card membership number and/or policy number,” says Bimbhet.
While getting admission, the cashless request form available with the hospital insurance help desk is to be filled and certified by the doctor. Having done that the form with supporting medical records is to be faxed by the hospital to the TPA’s fax number.
On scrutinizing the documents, the TPA conveys the decision to the hospital, the sanction of the cashless request or calls for additional documents if required.
On approval of the cashless facility by the TPA, the hospital bills are settled directly by the insurer (subject to policy limits). However, inadmissible amounts such as telephone, food and attendant charges are to be borne by the customer.
If the customer chooses to go to a hospital which is not part of the network, he/she can still get a reimbursement directly from the insurer.
REIMBURSEMENT OF CLAIMS
This facility is available at network hospitals as well as non-network hospitals. Under this facility, the insured can avail of treatment and settle all the bills with the hospital and file a claim for reimbursement. The insurer, however, has to be intimated immediately on admission not later than seven days from the date of discharge. The policy certificate number should be quoted and the claim can also be intimated online through the website of the company.
Generally the following claim documents (originals only) are to be submitted to the insurer within 30 days from the date of discharge:
1. Duly-filled claim form along with the doctor’s certificate (forming part of claim form)
2. Discharge summary
3. Bills and receipts (including advance and final receipts)
4. Prescriptions for medicines and doctor’s advice for lab tests
5. Diagnostic Test Reports, X Ray, scan and ECG and other films
Claims are processed on receipt of all required documents and additional documents. Information, if any, required is called for after the scrutiny of the claim. “The cheque is despatched to the customer if the claim is admissible. If not, a repudiation letter explaining the reasons for denial is sent,” says Bimbhet.
PRECAUTIONS/DOS & DON’TS WHILE BUYING A COVER
You need to exercise precaution not only while making a claim, but also while planning to buy a health cover, because here you start with choosing the right product for yourself, and opting for any unsuitable one may land you in trouble later on.
First, you need to understand whether the health insurance coverage fulfils your requirement or not. Then decide on which members of your family should be part of the health insurance policy. Ideally everyone should be covered including children.
The third step would be to settle on the total amount of health coverage needed – either on an individual basis or on a family floater basis. Besides, you also need to scrutinise the list of exclusions of the policy – both permanent and period-based.
Also check the network coverage of the Third Party Administrator (TPA) engaged by the insurance company.
PRECAUTIONS/DOS & DON’TS WHILE MAKING A CLAIM
You need to take precautions while filing a claim too. For instance, in case of a cashless claim, always carry the health card which gives you the unique membership number that is used by the TPA to identify you and provide the cashless benefit.
In the case of reimbursement of claims, however, always insist on getting the original discharge summary and reports from the hospital.
Also keep copies of all lab reports for future medical follow-ups, and retain copies of all claim documents before submission to the insurance company (This will help in case of an unfortunate event of the documents getting lost in transit).
Besides, insist on getting a properly-numbered, stamped, signed and sealed receipts from the hospital/ physician / surgeon for any payments made. Preserve the prescriptions given by the doctors for medicines and lab tests as these are to be submitted along with other claim documents.
For all traffic accidents, however, ensure that a complaint is lodged with the police and get a copy of the FIR.
WHAT IF AN INSURER REFUSES TO HONOUR A CLAIM?
Despite choosing a heath cover carefully and filing the claim as per the agreed terms, sometimes claiming insurance compensation becomes a hard nut to crack, particularly in cases when insurance companies are able to find some loopholes to repudiate a claim. In such cases, you need to approach higher authorities to seek compensation.
“If an insurer repudiates a claim, insist on a repudiation letter which explains the basis on which the claim is repudiated. If the customer is not happy with the contents, he may represent the claim again as per the escalation matrix in the grievance redressal machinery. If the customer is still not satisfied, he/she may approach the insurance Ombudsman, whose decision is binding on the insurer,” says Deshpande.
Thus, if a customer is not satisfied with the response of the insurer, he/she can always approach the Ombudsman who is specially appointed by the regulator to redress the grievances of the customer. The complaint by an aggrieved person has to be made in writing, and addressed to the insurance Ombudsman of the jurisdiction under which the office of the insurer falls.
“The governing body has appointed 12 Ombudsmen across the country allotting them different geographical areas as their areas of jurisdiction. The Ombudsman may hold sitting at various places within their area of jurisdiction in order to expedite disposal of complaints. The Ombudsman shall pass an award within a period of three months from the receipt of the complaint. The awards are binding upon the insurance companies,” says Bimbhet, adding, “the policy holder also has the option of approaching consumer forums and courts of law for redressal of his/her grievances.”
However, if you are still unable to get justice, then just blame your luck! And what else can you do?
Source:www.economictimes.com
Saturday, June 6, 2009
Post Office MIS: Blessing for investors in times of falling deposit rate
Tough times stare at investors looking for fixed income instruments. The deposit rates offered by banks have fallen to five-year lows. Bank FDs
were the favourites till some months back as public and private sector banks offered upto 9% interest on deposits with maturity of 3 years and above. This has now declined to around 7%. The future looks bleaker, with the deposit rates expected to decline further by 50-100 basis points. What should the fixed income lovers do in such a scenario? Is there an alternative to bank FDs?
The Post Office Monthly Income Scheme, commonly known as MIS, is the answer. MIS was quite popular some years back. Its appeal, however, declined in the face of a rise in interest rates on FDs and aggressive marketing strategies unleashed by banks to woo new depositors. MIS could come into limelight once again in the backdrop of declining interest rates. Moreover, the post office deposits come with unique features such as a government guarantee on the deposit amount and fixed rate of interest.
Like any fixed deposit, a lump sum amount deposited with the post office under the aegis of MIS will earn an interest at a fixed rate of 8% per annum. And, unlike bank FDs, the interest is paid out every month. The tenure is fixed at 6 years. Apart from monthly interest-payout , MIS offers 5% bonus on maturity. The effective annual yield therefore works out to 8.9%, which is much higher than the bank deposit. The value add-on is that the monthly MIS proceeds could be invested directly in Post Office’s Recurring deposit (RD), which gives annual returns of almost 10.5% per annum.
How does it work?
Suppose Mr A invests Rs 90,000 in Bank FD for six years. With the rate of deposit hovering around 7%, Mr A will receive almost Rs 46,500 as interest at maturity and an option of compounded interest. On the other hand, if Mr B put Rs 90,000 into MIS today, he will receive Rs 600 every month for 72 months. He is entitled to Rs 43,200 in the form of monthly interest till maturity and Rs 4500 as bonus at the time of maturity. Mr B’s returns total Rs 47,700 in six years, which is higher than interest earned on the bank FD of the same tenure.
Suppose that Mr B did not require the monthly interest. So he opts for automatic transfer of MIS interest to Recurring Deposit. A sum of Rs 600 is deposited in his RD account every month, offering 7.5% per annum compounded quarterly. At the end of the sixth year, Mr B will receive almost Rs 51,400 from his RD account. The receivables from RD and the bonus on MIS total Rs 56,000 in six years. As a result, Mr B, who invested in MIS and monthly proceeds in RD, will accumulate Rs 9500 more than Mr A, who opted to invest in Bank FD of the same tenure.
The same features of MIS make it unattractive. The interest income is fully taxable as in the case of bank FDs. MIS do have an edge over bank FDs as there is no tax deduction at source (TDS). However, the bank FDs maturing above 5 years are subject to tax benefits under Sec 80C.
It will be definitely a better bet if one neglects the tax implications of the scheme. The rate of return is not interest rate sensitive. Though the general interest rates may fall further, the scheme will continue to fetch 8% fixed rate of interest. Further, a combination with RD will even earn an effective yield of 10.5%, which is attractive in times of uncertainty and falling interest rates.
Source: economicTimes.com
were the favourites till some months back as public and private sector banks offered upto 9% interest on deposits with maturity of 3 years and above. This has now declined to around 7%. The future looks bleaker, with the deposit rates expected to decline further by 50-100 basis points. What should the fixed income lovers do in such a scenario? Is there an alternative to bank FDs?
The Post Office Monthly Income Scheme, commonly known as MIS, is the answer. MIS was quite popular some years back. Its appeal, however, declined in the face of a rise in interest rates on FDs and aggressive marketing strategies unleashed by banks to woo new depositors. MIS could come into limelight once again in the backdrop of declining interest rates. Moreover, the post office deposits come with unique features such as a government guarantee on the deposit amount and fixed rate of interest.
Like any fixed deposit, a lump sum amount deposited with the post office under the aegis of MIS will earn an interest at a fixed rate of 8% per annum. And, unlike bank FDs, the interest is paid out every month. The tenure is fixed at 6 years. Apart from monthly interest-payout , MIS offers 5% bonus on maturity. The effective annual yield therefore works out to 8.9%, which is much higher than the bank deposit. The value add-on is that the monthly MIS proceeds could be invested directly in Post Office’s Recurring deposit (RD), which gives annual returns of almost 10.5% per annum.
How does it work?
Suppose Mr A invests Rs 90,000 in Bank FD for six years. With the rate of deposit hovering around 7%, Mr A will receive almost Rs 46,500 as interest at maturity and an option of compounded interest. On the other hand, if Mr B put Rs 90,000 into MIS today, he will receive Rs 600 every month for 72 months. He is entitled to Rs 43,200 in the form of monthly interest till maturity and Rs 4500 as bonus at the time of maturity. Mr B’s returns total Rs 47,700 in six years, which is higher than interest earned on the bank FD of the same tenure.
Suppose that Mr B did not require the monthly interest. So he opts for automatic transfer of MIS interest to Recurring Deposit. A sum of Rs 600 is deposited in his RD account every month, offering 7.5% per annum compounded quarterly. At the end of the sixth year, Mr B will receive almost Rs 51,400 from his RD account. The receivables from RD and the bonus on MIS total Rs 56,000 in six years. As a result, Mr B, who invested in MIS and monthly proceeds in RD, will accumulate Rs 9500 more than Mr A, who opted to invest in Bank FD of the same tenure.
The same features of MIS make it unattractive. The interest income is fully taxable as in the case of bank FDs. MIS do have an edge over bank FDs as there is no tax deduction at source (TDS). However, the bank FDs maturing above 5 years are subject to tax benefits under Sec 80C.
It will be definitely a better bet if one neglects the tax implications of the scheme. The rate of return is not interest rate sensitive. Though the general interest rates may fall further, the scheme will continue to fetch 8% fixed rate of interest. Further, a combination with RD will even earn an effective yield of 10.5%, which is attractive in times of uncertainty and falling interest rates.
Source: economicTimes.com
Sunday, May 24, 2009
The Right Information For The Right Stocks
Without knowing companies you cannot make the most of this opportunity to pick up quality stocks. Here’s where you should go for information you can trust.
There are many lessons to learn from the 2008 market crash. One of the most important is: understand a company before investing in it. If you do, the market is offering a good chance to pick quality stocks at reasonable prices. The problem is that without sound information, any investment decision would be based on weak reasoning and is unlikely to support your overall portfolio performance. But how do you know that the information you have is accurate? For that, you need to do your research well and look at the right place for the right information. Here are seven parameters you should look at and the places you can find information on them.
Market Capitalisation
What is it?
Market capitalisation (cap) is calculated by multiplying a company’s outstanding shares (paid-up equity capital divided by the face value) with the current market price (CMP). This indicates the worth of the company in terms of its shares. To calculate the market cap of, say, GlaxoSmithKline (GSK) Consumer Health-care, multiply the CMP—Rs 815 as on 13 May—with the 4.20 crore outstanding shares, which comes to Rs 3423 crore.
Where to look
- The financial results section or the company related page on stock exchange websites (www.nseindia.com or www.bseindia.com) give details of outstanding shares
- The quotes page on these sites give CMP
- Financial dailies publish market cap data of select companies
Trading Volumes
What is it?
It is the total number of stocks of a company traded at an exchange. It is a measure of the liquidity and also shows the level of market participation in the stock. This figure is especially important in the case of low-volume stocks (below 2,000 shares). During tough market conditions, liquidating low-volume stocks becomes difficult. The 2-week average quantity of Dabur India shares is around 2.2 lakh, which is a comfortable number. On the other hand, the number for MMTC is only 500-600 shares for the same period.
Where to look
- Stock exchange sites
- Financial dailies
Historical Price Data
What is it?
This information helps understand how a stock’s price has behaved over a period of time. Information on whether a stock is at a new peak or a new low helps evaluate the quality of the stock. For instance, if a stock has breached its yearly low, you should get into the reason behind it.
Where to look
- The quotes page or the stock reach page on the NSE and BSE sites share the yearly high and low data
- Use the ‘charting function’ of exchange sites for graphical representation. This will help you find whether the stock is trading at a new low or a new high. The co-movement option helps compare the performance of the stock with the index
- On www.nseindia.com, go to the equity, market information, historical data section. Click on the security-wise data section, get the security symbol and choose the dates for which you want information. On www.bseindia.com, go to the archives section
Company Developments
What is it?
Developments in a company such as a new product, capacity expansion or a new clientele can affect the stock’s performance. Find out what impact these developments can have on the stock. Also, find out about the company’s competitors, government regulations related to it, and their impact on its operations.
Where to look
- Financial dailies
- Corporate announcements on exchange sites have information about developments in a company
- Analyst meets or conference call updates on company sites throw light on the company’s future plans
- To understand the operations of a company, read its latest annual report. The director’s report and management discussion and analysis will give you a detailed perspective on the company’s current performance and outlook
- Follow the notes published at the end of the statutory advertisements that companies release to gather information on disclosures
- Investors can also become a member of online investment clubs. You will derive a lot of information which can, subsequently, be validated from a reliable source
Financial Data
What is it?
Before buying a stock, it is important to know about the company’s financial performance. Growth in sales and profit over the last four to five quarters will help you understand its performance in the light of the recent market scenario. Its growth rate in the last 4-5 years will give an insight into the pace of growth in the past. Look at the operating margin growth as well, especially so in the current tough operating environment.
Remember to look at the consolidated, and not the standalone performance. Consolidated performance includes the results of all subsidiaries, joint ventures and investments in associate companies. Its importance is evident from the impact it has on the performance of some companies.
Where to look
- Company website. Results and annual reports need to be read carefully. For example, in case of Dabur India, go to www.dabur.com, click on investor relations and get into financial presentations. You will get quarterly results, annual report, investor communications and analyst conference call transcripts there
- The financial results section on stock exchange websites
Balancesheet
What is it?
Many companies, especially those from the pharmaceutical and IT sectors, are under stress due to high debt and losses on foreign currency borrowings. Many investors ignored the foreign currency convertible bond (FCCB) details before the 2008 stockmarket crash.
FCCB is a type of convertible bond issued in a currency different from the issuer’s domestic currency. The mix of debt and equity instruments it has gives the bondholder an option to convert the bond into a stock.
Due to the sharp stockmarket dip, the companies are unable to offer the bondholders the option of converting the bonds into equity at a premium. Instead, bondholders had to exercise the debt option. Companies would now have to decide on how to service their FCCBs.
The balancesheet will also help you understand the financial leveraging capacity of the company. Calculate the debt-equity ratio to get this. It is arrived at by dividing the total liabilities by the stockholders’ equity.
Take the case of Aurobindo Pharma. It has outstanding FCCB of $260 million. A part of it will come up for redemption in the beginning of 2010. This stock got butchered when the FCCB issue became a major concern and is currently trading at more than 80 per cent discount to its FCCB conversion price.
Recent updates on the NSE website suggest that the company has plans to buy back its outstanding FCCBs in small lots. The company’s debt-equity ratio is 1.5. This should be considered before investing because high debt-equity (normally above one) suggests that the company has been aggressive in financing its growth through debt. If the company’s operation is under stress due to the economic environment and its balancesheet is debt-burdened, then it would be better to stay away from its stock.
Where to look
- Annual report and news releases on the company website
- Corporate announcements available on stock exchange sites
Basic Calculations
Deduct any preferred stock dividends from the net profit after tax and divide the balance by the number of outstanding shares. This will give you the earnings per share (EPS) of a company.
To assess a stock, calculate the trailing 12 months’ EPS (for the last four quarters). Then, calculate the price earning ratio (PE)—CMP divided by EPS.
For example, GSK Consumer’s EPS grew steadily from Rs 30 in December 2006 to Rs 51.30 in March 2009. The company follows the calendar year
and this data can be sourced from the exchange sites and also the company’s website, www.gsk-ch.in. The latest EPS and CMP (Rs 815) translate into a PE ratio of 15.9.
To evaluate whether a PE is high or low, compare it with the industry PE and index PE. This data is also available on exchange sites. Go to the industry index information to get the PE details of a particular industry. The BSE FMCG Index’s PE, for instance, as on 13 May is 23.54 while GSK Consumer’s PE is 15.9. This suggests a comparatively low PE for the company.
Where to look
- Profit & loss account on exchange sites or company website
- Quarterly or annual results published by the company also carry EPS information;
Source: money.outlook.com
There are many lessons to learn from the 2008 market crash. One of the most important is: understand a company before investing in it. If you do, the market is offering a good chance to pick quality stocks at reasonable prices. The problem is that without sound information, any investment decision would be based on weak reasoning and is unlikely to support your overall portfolio performance. But how do you know that the information you have is accurate? For that, you need to do your research well and look at the right place for the right information. Here are seven parameters you should look at and the places you can find information on them.
Market Capitalisation
What is it?
Market capitalisation (cap) is calculated by multiplying a company’s outstanding shares (paid-up equity capital divided by the face value) with the current market price (CMP). This indicates the worth of the company in terms of its shares. To calculate the market cap of, say, GlaxoSmithKline (GSK) Consumer Health-care, multiply the CMP—Rs 815 as on 13 May—with the 4.20 crore outstanding shares, which comes to Rs 3423 crore.
Where to look
- The financial results section or the company related page on stock exchange websites (www.nseindia.com or www.bseindia.com) give details of outstanding shares
- The quotes page on these sites give CMP
- Financial dailies publish market cap data of select companies
Trading Volumes
What is it?
It is the total number of stocks of a company traded at an exchange. It is a measure of the liquidity and also shows the level of market participation in the stock. This figure is especially important in the case of low-volume stocks (below 2,000 shares). During tough market conditions, liquidating low-volume stocks becomes difficult. The 2-week average quantity of Dabur India shares is around 2.2 lakh, which is a comfortable number. On the other hand, the number for MMTC is only 500-600 shares for the same period.
Where to look
- Stock exchange sites
- Financial dailies
Historical Price Data
What is it?
This information helps understand how a stock’s price has behaved over a period of time. Information on whether a stock is at a new peak or a new low helps evaluate the quality of the stock. For instance, if a stock has breached its yearly low, you should get into the reason behind it.
Where to look
- The quotes page or the stock reach page on the NSE and BSE sites share the yearly high and low data
- Use the ‘charting function’ of exchange sites for graphical representation. This will help you find whether the stock is trading at a new low or a new high. The co-movement option helps compare the performance of the stock with the index
- On www.nseindia.com, go to the equity, market information, historical data section. Click on the security-wise data section, get the security symbol and choose the dates for which you want information. On www.bseindia.com, go to the archives section
Company Developments
What is it?
Developments in a company such as a new product, capacity expansion or a new clientele can affect the stock’s performance. Find out what impact these developments can have on the stock. Also, find out about the company’s competitors, government regulations related to it, and their impact on its operations.
Where to look
- Financial dailies
- Corporate announcements on exchange sites have information about developments in a company
- Analyst meets or conference call updates on company sites throw light on the company’s future plans
- To understand the operations of a company, read its latest annual report. The director’s report and management discussion and analysis will give you a detailed perspective on the company’s current performance and outlook
- Follow the notes published at the end of the statutory advertisements that companies release to gather information on disclosures
- Investors can also become a member of online investment clubs. You will derive a lot of information which can, subsequently, be validated from a reliable source
Financial Data
What is it?
Before buying a stock, it is important to know about the company’s financial performance. Growth in sales and profit over the last four to five quarters will help you understand its performance in the light of the recent market scenario. Its growth rate in the last 4-5 years will give an insight into the pace of growth in the past. Look at the operating margin growth as well, especially so in the current tough operating environment.
Remember to look at the consolidated, and not the standalone performance. Consolidated performance includes the results of all subsidiaries, joint ventures and investments in associate companies. Its importance is evident from the impact it has on the performance of some companies.
Where to look
- Company website. Results and annual reports need to be read carefully. For example, in case of Dabur India, go to www.dabur.com, click on investor relations and get into financial presentations. You will get quarterly results, annual report, investor communications and analyst conference call transcripts there
- The financial results section on stock exchange websites
Balancesheet
What is it?
Many companies, especially those from the pharmaceutical and IT sectors, are under stress due to high debt and losses on foreign currency borrowings. Many investors ignored the foreign currency convertible bond (FCCB) details before the 2008 stockmarket crash.
FCCB is a type of convertible bond issued in a currency different from the issuer’s domestic currency. The mix of debt and equity instruments it has gives the bondholder an option to convert the bond into a stock.
Due to the sharp stockmarket dip, the companies are unable to offer the bondholders the option of converting the bonds into equity at a premium. Instead, bondholders had to exercise the debt option. Companies would now have to decide on how to service their FCCBs.
The balancesheet will also help you understand the financial leveraging capacity of the company. Calculate the debt-equity ratio to get this. It is arrived at by dividing the total liabilities by the stockholders’ equity.
Take the case of Aurobindo Pharma. It has outstanding FCCB of $260 million. A part of it will come up for redemption in the beginning of 2010. This stock got butchered when the FCCB issue became a major concern and is currently trading at more than 80 per cent discount to its FCCB conversion price.
Recent updates on the NSE website suggest that the company has plans to buy back its outstanding FCCBs in small lots. The company’s debt-equity ratio is 1.5. This should be considered before investing because high debt-equity (normally above one) suggests that the company has been aggressive in financing its growth through debt. If the company’s operation is under stress due to the economic environment and its balancesheet is debt-burdened, then it would be better to stay away from its stock.
Where to look
- Annual report and news releases on the company website
- Corporate announcements available on stock exchange sites
Basic Calculations
Deduct any preferred stock dividends from the net profit after tax and divide the balance by the number of outstanding shares. This will give you the earnings per share (EPS) of a company.
To assess a stock, calculate the trailing 12 months’ EPS (for the last four quarters). Then, calculate the price earning ratio (PE)—CMP divided by EPS.
For example, GSK Consumer’s EPS grew steadily from Rs 30 in December 2006 to Rs 51.30 in March 2009. The company follows the calendar year
and this data can be sourced from the exchange sites and also the company’s website, www.gsk-ch.in. The latest EPS and CMP (Rs 815) translate into a PE ratio of 15.9.
To evaluate whether a PE is high or low, compare it with the industry PE and index PE. This data is also available on exchange sites. Go to the industry index information to get the PE details of a particular industry. The BSE FMCG Index’s PE, for instance, as on 13 May is 23.54 while GSK Consumer’s PE is 15.9. This suggests a comparatively low PE for the company.
Where to look
- Profit & loss account on exchange sites or company website
- Quarterly or annual results published by the company also carry EPS information;
Source: money.outlook.com
Subscribe to:
Posts (Atom)
