Commodity Market Update (Crued Oil)

                             

Bullions are trading slightly higher in a range since morning, Gold is near $1750, up by 0.15% while Silver is at $33higher by 0.10%. Gold prices are likely to rebound after falling in last couple of sess

ions as the investors are showing interest in Gold at a lower price. Gold is likely to face resistance near $1780 to $1800 in the coming sessions. The front-month contract for Crude Oil is trading at $92.05, more or less unchanged from the previous closing; however the Oil traders are waiting for the Storage report to be released at 8.00 PM today. Natural Gas futures prices are at $3.442, +0.15% or just 5 cents higher and are likely to move in a range. Base metals are trading in red; Copper is lower by half a percentage to trade at $8100.00 on LME, pressured by the uncertainty over the Chinese economic data.

Data to watch:
US Building Permits m/m
US Housing Starts m/m
US Crude Oil Inventories

BMA Gyaan- 'What is Call Market?'

BMA Words of Wisdom by Dhirubhai Ambani

                           

Morning Summary, Market Synopsis: 17th October, 2012

                            

The major Indian equity indices started the day with a positive gap-up. However, the benchmarks have slipped a little since the morning and are currently seen trading flat. The Sensex is trading near the level of 18630 i.e., up by nearly 55 points and the Nifty is trading near the level of 5665 i.e., up by nearly 15 points. The midcap & the small-cap counters are trading positive by nearly half a percentage point each. On the sectoral front, all the indices are trading in green. Realty, Auto & Healthcare indices are leading the list of gainers with gains of over half a percentage point each. Further, the market breadth is positive as two stocks are seen advancing for every one decline.

(pic source: bseindia.com)

Market Heatmap: 16th October, 2012

News Hour: Top 10 financial steps to take in your lifetime

NEW DELHI: The only things certain in life are death and taxes. It is in our own interest, therefore, that apart from keeping our financial house in order, we must plan and do certain things to ensure that our loved ones not only know our wishes, but are also cared for in the unlikely event of our death.

Here are the top 10 financial steps to consider before saying goodbye to the world:

1. Take stock of all your assets & liabilities

The first thing to do is to make a list of all your assets (within and outside the house) as well as liabilities and also update the list annually so that things are easier on your family after you are gone.

"Your assets may include physical assets like jewellery, real estate, etc, and also financial assets like bank accounts, PF accounts, insurance policies, etc. Also, check for loans in your name or were you were a co-signer. Share this information with your spouse or the guardian of your wealth," says Rajesh Saluja, CEO and managing director, ASK Wealth Advisors.

2. Cover your liabilities

A key component of your financial plan is ensuring that your future liabilities are covered.

For instance, "you should make sure you have enough insurance to cover all your future liabilities. You also need to analyze how much money you need to meet future financial goals, including the annual outflow required to maintain the current lifestyle. For this, you should subtract all your current financial assets and insurance taken from this sum - the remaining sum is the incremental insurance cover you will need," informs Karan Bhagat, MD & CEO, IIFL Private Wealth Management.

3. Manage your debt

Debt has become a way of our life today, with very few of us being sure how to get out of it. You should, therefore, ensure that at least all your high-cost debt is paid off well in time so that your family members don't have to suffer in case you are no more.

"Even if you can technically afford the monthly payments on the debt you're carrying, having a lot of debt is still a financial burden and could be preventing you from getting ahead. Pay down your debt as quickly as possible so that you can enjoy the benefits of a debt-free lifestyle," advises Ashish Kapur, CEO, Invest Shoppe.

Also, if your investment portfolio is yielding a lower return than what you are paying on your loans on a post-tax basis, "you should evaluate rebalancing your portfolio to reduce the debt component of the portfolio. You should also ensure that loans taken in a high interest rate scenario are renegotiated, if possible," says Bhagat.

4. Check name & address for all assets

This is especially important for women who may have some assets titled under their maiden name. Many people when they move residences or change jobs do not take the time to update the information for old EPF accounts and other legacy holdings. But this is very important to have your financial house in order and avoid any inconvenience in future.
5. Check the titling of assets

Not paying attention to titling assets, especially financial assets, can lead to painful financial consequences.

"Therefore, for simplified estate planning purposes, when pre-determined assets are to be transferred to spouse or an adult child directly, changing the account to joint holding with right of survivorship with the spouse or adult child as a joint or second holder will facilitate smoother transition," says Saluja.

6. Consolidate accounts

Are you still using the salary account opened up by your last employer? Do you ever use the credit card you bought for the special offer last year? Do you really need the free demat account provided by your bank? As you organize your financial life, you will come across several accounts which you will never use. "Instead of facing an unnecessary liability in the future, it might be worth the one-time effort to consolidate several of your accounts," advises Bhagat.

7. Draw up a Will

Although you have done estate planning by titling the assets correctly and by choosing appropriate nominees, still if a person dies intestate (without a valid Will), then the division of assets is governed by the courts. For example, the assets may be divided between the spouse and minor children while the intention was to make the spouse the only inheritor. Therefore, "you must draw up a Will if you wish to avoid any bickering among the natural heirs. A Will also helps when there is ambiguity and lack of clarity about the natural heirs," says Ashish Kapur.

However, make sure that the Will is registered to make it foolproof.

8. Consider a Trust

Today with the entrepreneurial drive having become very strong, many individuals are starting their own companies.

"Many a times even after achieving financial success, they fail to segregate personal assets from business assets and expose all their assets to potential liability issues rising from business dealings. For such individuals, creating a trust can be a way to ring fence personal assets. Trust can also be used for proper succession planning," says Saluja.

9. Build a contingency reserve

In case you haven't done so already, you should ensure you have put aside at least 6-8 months of expenses (including all your EMI payments) in a contingency fund. The contingency fund is best maintained in investments like money market funds which you can access immediately.

10. Talk to your family and inform key stakeholders

A lot of conflict and heartache which happen after the death of a loved one can be avoided if open lines of communication have been maintained with one's dear ones.

"You need to inform them of your wishes, where the important documents are located and who you have nominated as the Will executor," informs Saluja.

The family should also know about the various retirement accounts and benefits that you are expected to receive and the same can be utilized by the family in case of an unfortunate event.
(Source: economictimes.indiatimes.com)

Wishing Kareena and Saif a very Happy Married Life..

Wishing our Brand Ambassador Kareena Kapoor a happy life ahead with Saif Ali Khan on their wedding..