Invest In India http://investmoneyinindia.com Mon, 06 Jul 2009 07:24:00 +0000 http://wordpress.org/?v=2.8 en hourly 1 http://investmoneyinindia.com http://investmoneyinindia.com/wp-content/mbp-favicon/Invest%2520in%2520India.jpg Invest In India InvestInIndiahttp://feedburner.google.com Entry load: How SEBI’s decision benefits investors http://feedproxy.google.com/~r/InvestInIndia/~3/NiK4eIz5OMk/ http://investmoneyinindia.com/entry-load-how-sebi%e2%80%99s-decision-benefits-investors/#comments Mon, 06 Jul 2009 07:24:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-1570757128155932434.post-2751907312433964763 <span style="font-family: trebuchet ms;font-size:85%;">SEBI’s decision to remove the entry load on all mutual funds from August 1 could lead to a healthy<br />competition in the advisory business. This article explains the issues related to the current commission structure and applies behavioural economics to show how the proposed architecture could benefit the investors.<br /><br />The Securities and Exchange of India’s (SEBI) decision to remove entry load on all mutual funds from August 1, 2009, is commendable. Mutual fund distributors would then have to directly charge their customers fees for investment advice. But how would such direct commission structure benefit the investors?<br /><br />This article discusses the issues related to the existing commission structure. It then applies behavioural psychology to show how the proposed structure is different. It also explains why the direct commission structure is likely to improve the quality of professional advice.<br />Free or fee?<br /><br />The mutual fund industry primarily relies on distributors to sell the investment products. This leads to two structural issues.<br /><br />One, distributors recommend products based on the individual merits. But a “good” individual product may not be optimal within an investor’s existing portfolio. The reason is that each mutual fund sold as a separate product could lead to portfolio concentration risk.<br /><br />A classic example is that of an investor who has 10 different diversified funds, bought one at a time.<br /><br />Since all diversified funds invest within the same universe of stocks, a portfolio of such funds will lead to concentration risk. Such a portfolio is simply a case of fund diversification, not portfolio diversification.<br /><br />This problem arises because all distributors are not trained as professional advisors — those that typically risk-profile a client and recommend custom-tailored portfolios.<br /><br />Two, distributors do not directly charge their customers for recommending a fund. Investors, therefore, believe that distributors offer free service.<br /><br />Unknown to most investors is the fact that the distributors are paid by the asset management firm for<br /><br />recommending a customer. And this money typically comes from the entry load that mutual funds charge the investors.<br /><br />Investors often end up paying the distributor a fee for a product that they may not fit with their investment objective.<br /><br />SEBI has sought to bring about transparency in the commission structure by removing the entry load. How would that help investors?<br /><br /><span style="font-weight: bold;">Choice architecture</span><br /><br />Behavioural economists argue that decisions can be influenced by the way choices are presented. We<br />believe that SEBI’s decision to remove entry load can influence the way investors view professional advice.<br /><br />Here is why.<br /><br />Currently, the lack of transparency in the commission structure means that investors use distributors as a default choice.<br /><br />From August, the explicit fee structure will force investors to make a conscious choice to go to a distributor. But would investors’ behaviour change after they learn that distributors earn a fee even in the existing structure? The answer lies in what behavioural economists call as framing bias.<br /><br />Suppose SEBI were to continue with the current commission structure.<br /><br />This means an entry load will be deducted from the amount invested and a fee will be paid to the distributor. The investor will not feel the pain, as the fee is not an explicit cost. An investor can, however, avoid the entry load if she invests directly in a fund. The fee saved will be viewed as cash gained. In the proposed structure, an investor would have to pay advisor fees explicitly if she routes the investment through the distributor.The fee paid will, hence, be viewed as cash lost.<br /><br />Research has shown that investors take great pain to avoid losses. That is, they are more likely to give up gains (save fees) than accept losses (pay fees). And that means distributors will no longer be a default choice.<br /><br /><span style="font-weight: bold;">Conclusion</span><br /><br />Would investors at all pay for professional advice? We believe that SEBI’s choice architecture could “nudge” investors to value professional advice.<br /><br />Not all investors are discerning enough to make direct investments. The ones that want advice would have to choose between distributors and professional advisors. This would increase competition in the advisory business and improve the quality of investment advice offered. And that would be beneficial to the investors.<br /></span><div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/entry-load-how-sebi%e2%80%99s-decision-benefits-investors/">Entry load: How SEBI’s decision benefits investors</a></p> SEBI’s decision to remove the entry load on all mutual funds from August 1 could lead to a healthy
competition in the advisory business. This article explains the issues related to the current commission structure and applies behavioural economics to show how the proposed architecture could benefit the investors.

The Securities and Exchange of India’s (SEBI) decision to remove entry load on all mutual funds from August 1, 2009, is commendable. Mutual fund distributors would then have to directly charge their customers fees for investment advice. But how would such direct commission structure benefit the investors?

This article discusses the issues related to the existing commission structure. It then applies behavioural psychology to show how the proposed structure is different. It also explains why the direct commission structure is likely to improve the quality of professional advice.
Free or fee?

The mutual fund industry primarily relies on distributors to sell the investment products. This leads to two structural issues.

One, distributors recommend products based on the individual merits. But a “good” individual product may not be optimal within an investor’s existing portfolio. The reason is that each mutual fund sold as a separate product could lead to portfolio concentration risk.

A classic example is that of an investor who has 10 different diversified funds, bought one at a time.

Since all diversified funds invest within the same universe of stocks, a portfolio of such funds will lead to concentration risk. Such a portfolio is simply a case of fund diversification, not portfolio diversification.

This problem arises because all distributors are not trained as professional advisors — those that typically risk-profile a client and recommend custom-tailored portfolios.

Two, distributors do not directly charge their customers for recommending a fund. Investors, therefore, believe that distributors offer free service.

Unknown to most investors is the fact that the distributors are paid by the asset management firm for

recommending a customer. And this money typically comes from the entry load that mutual funds charge the investors.

Investors often end up paying the distributor a fee for a product that they may not fit with their investment objective.

SEBI has sought to bring about transparency in the commission structure by removing the entry load. How would that help investors?

Choice architecture

Behavioural economists argue that decisions can be influenced by the way choices are presented. We
believe that SEBI’s decision to remove entry load can influence the way investors view professional advice.

Here is why.

Currently, the lack of transparency in the commission structure means that investors use distributors as a default choice.

From August, the explicit fee structure will force investors to make a conscious choice to go to a distributor. But would investors’ behaviour change after they learn that distributors earn a fee even in the existing structure? The answer lies in what behavioural economists call as framing bias.

Suppose SEBI were to continue with the current commission structure.

This means an entry load will be deducted from the amount invested and a fee will be paid to the distributor. The investor will not feel the pain, as the fee is not an explicit cost. An investor can, however, avoid the entry load if she invests directly in a fund. The fee saved will be viewed as cash gained. In the proposed structure, an investor would have to pay advisor fees explicitly if she routes the investment through the distributor.The fee paid will, hence, be viewed as cash lost.

Research has shown that investors take great pain to avoid losses. That is, they are more likely to give up gains (save fees) than accept losses (pay fees). And that means distributors will no longer be a default choice.

Conclusion

Would investors at all pay for professional advice? We believe that SEBI’s choice architecture could “nudge” investors to value professional advice.

Not all investors are discerning enough to make direct investments. The ones that want advice would have to choose between distributors and professional advisors. This would increase competition in the advisory business and improve the quality of investment advice offered. And that would be beneficial to the investors.

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]]> http://investmoneyinindia.com/entry-load-how-sebi%e2%80%99s-decision-benefits-investors/feed/ 0 http://investmoneyinindia.com/entry-load-how-sebi%e2%80%99s-decision-benefits-investors/ Indian CEOs better than their western counterparts http://feedproxy.google.com/~r/InvestInIndia/~3/rj06zRlVUdk/ http://investmoneyinindia.com/indian-ceos-better-than-their-western-counterparts/#comments Sun, 05 Jul 2009 14:38:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-7061340842936140566.post-1442788257809230800 Despite the grappling impact of the global meltdown, Indian firms are in a more favorable position as against other countries like the U.S. Over last few years, Indian business houses have come into focus for their international competitiveness that sets them apart from their western counterparts, as per a survey.<br /><br />Professor Harbir Singh said, "Our very unique difference is that Indian leaders think in English, thanks to the Western education. But, act in an Indian context. They internalize Western best practices and adapt them to India." The findings are based on a study titled 'The DNA of Indian Leadership: The Governance, Management and Leadership of Leading Indian Firms'. It was conducted by Singh along with his three other Management Professors from the University of Pennsylvania, named Peter Cappelli, Jitendra Singh and Michael Useem. In the study, each India CEO was asked asset of questions about the leadership skills, competitive advantage and corporate governance.<br /><br />According to R.Gopalakrishnan, the Executive Director at Tata Sons, the Indian executives' strategic thinking, risk taking abilities, flexibility as well as the setting of the shared architecture of the firm were some of the important leadership capacities. They are occupied with long-term strategic vision, talent nurturing and maintaining the organizational culture.<br /><br />Also, the Indian leaders perceive the role of their firms in the society, rather than prioritizing the investors in the company. But, for the Western CEOs, the shareholders emerge at the top of the priority list.<br /><br />However, as per the report, some of the Indians CEOs carry a unique management trait- the "jugaad" factor, which is the tendency to resort to an unplanned makeshift in the company. "While this can be perceived negatively, it can also be a positive trait because of its inherent inventiveness and survival instinct," concluded Singh.<br /><br />Agencies<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/indian-ceos-better-than-their-western-counterparts/">Indian CEOs better than their western counterparts</a></p> Despite the grappling impact of the global meltdown, Indian firms are in a more favorable position as against other countries like the U.S. Over last few years, Indian business houses have come into focus for their international competitiveness that sets them apart from their western counterparts, as per a survey.

Professor Harbir Singh said, “Our very unique difference is that Indian leaders think in English, thanks to the Western education. But, act in an Indian context. They internalize Western best practices and adapt them to India.” The findings are based on a study titled ‘The DNA of Indian Leadership: The Governance, Management and Leadership of Leading Indian Firms’. It was conducted by Singh along with his three other Management Professors from the University of Pennsylvania, named Peter Cappelli, Jitendra Singh and Michael Useem. In the study, each India CEO was asked asset of questions about the leadership skills, competitive advantage and corporate governance.

According to R.Gopalakrishnan, the Executive Director at Tata Sons, the Indian executives’ strategic thinking, risk taking abilities, flexibility as well as the setting of the shared architecture of the firm were some of the important leadership capacities. They are occupied with long-term strategic vision, talent nurturing and maintaining the organizational culture.

Also, the Indian leaders perceive the role of their firms in the society, rather than prioritizing the investors in the company. But, for the Western CEOs, the shareholders emerge at the top of the priority list.

However, as per the report, some of the Indians CEOs carry a unique management trait- the “jugaad” factor, which is the tendency to resort to an unplanned makeshift in the company. “While this can be perceived negatively, it can also be a positive trait because of its inherent inventiveness and survival instinct,” concluded Singh.

Agencies

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]]> http://investmoneyinindia.com/indian-ceos-better-than-their-western-counterparts/feed/ 0 http://investmoneyinindia.com/indian-ceos-better-than-their-western-counterparts/ Satellite for convergence of cellphones, satellite phones launched http://feedproxy.google.com/~r/InvestInIndia/~3/fVbF6Dv5MGo/ http://investmoneyinindia.com/satellite-for-convergence-of-cellphones-satellite-phones-launched/#comments Sun, 05 Jul 2009 14:30:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-7061340842936140566.post-2197771356389336923 A new satellite designed to allow the convergence of cellphones and satellite phones throughout the U.S. was successfully launched Thursday, mobile communications provider TerreStar announced.<br /><br />Weighing 6,910 kg, TerreStar-1 is the largest commercial satellite ever and was launched by Arianespace from Kourou, French Guiana Tuesday.<br /><br /><br />The satellite will deliver voice, data and video services to the entire US. Its 20-metre antennae are large enough to beam satellite signals to mobile phones, which TerreStar hopes to launch later this year. The satellite component will allow users to use voice, email and data communications all over the US, even when there is no cellphone coverage.<br /><br />"With the successful launch of TerreStar-1, we are redefining the mobile communications landscape," said Dennis Matheson, chief technology officer of TerreStar. "We are creating a new paradigm in mobile broadband network services to enable true ubiquity and reliability - anywhere in the United States and Canada." <br /><br />Agencies<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/satellite-for-convergence-of-cellphones-satellite-phones-launched/">Satellite for convergence of cellphones, satellite phones launched</a></p> A new satellite designed to allow the convergence of cellphones and satellite phones throughout the U.S. was successfully launched Thursday, mobile communications provider TerreStar announced.

Weighing 6,910 kg, TerreStar-1 is the largest commercial satellite ever and was launched by Arianespace from Kourou, French Guiana Tuesday.

The satellite will deliver voice, data and video services to the entire US. Its 20-metre antennae are large enough to beam satellite signals to mobile phones, which TerreStar hopes to launch later this year. The satellite component will allow users to use voice, email and data communications all over the US, even when there is no cellphone coverage.

“With the successful launch of TerreStar-1, we are redefining the mobile communications landscape,” said Dennis Matheson, chief technology officer of TerreStar. “We are creating a new paradigm in mobile broadband network services to enable true ubiquity and reliability – anywhere in the United States and Canada.”

Agencies

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Satellite for convergence of cellphones, satellite phones launched


]]> http://investmoneyinindia.com/satellite-for-convergence-of-cellphones-satellite-phones-launched/feed/ 0 http://investmoneyinindia.com/satellite-for-convergence-of-cellphones-satellite-phones-launched/ Will struggling British Airways cut spending? http://feedproxy.google.com/~r/InvestInIndia/~3/B92LIrGJgHk/ http://investmoneyinindia.com/will-struggling-british-airways-cut-spending/#comments Sat, 04 Jul 2009 17:32:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-7061340842936140566.post-8025754499246376365 Troubled British Airways said Friday that it would slash capital expenditure by one fifth in the current financial year after posting another sharp drop in monthly passenger numbers.<br /><br />"Market conditions continue to be very challenging with trading at levels well below last year," the struggling airline said in a trading update.<br /><br />"In response to the challenging economic conditions British Airways has reviewed its business plan.<br /><br />"Forecast capital expenditure has been reduced from 725 million pounds to 580 million pounds for 2009-2010 and is likely to remain at that level in 2010-2011."<br /><br />The airline also announced it carried 2.93 million passengers last month, 4.9 percent fewer than in June 2008.<br /><br />And BA repeated that it wanted to slash 3,700 jobs in the current financial year, which runs until March 2010. It has already axed 2,500 jobs worldwide over the past year.<br /><br />BA also revealed that it would delay the delivery of its fleet of Airbus A380 superjumbos and announced more reductions to its summer 2009 and winter 2009-2010 flight schedules.<br /><br />"The delivery schedule for the first six Airbus A380 aircraft has been extended by an average of five months with the first delivery still due in 2012," the carrier said.<br /><br />"The schedule for the remaining six A380s has been extended by an average of two years with the final aircraft arriving in 2016."<br /><br />In May, BA had reported an annual loss of 375 million pounds, blamed on plummeting demand for tickets as well as high fuel costs.<br /><br />After diving into a financial loss, BA asked staff to work for free, while promising that chief executive Willie Walsh and finance director Keith Williams would forgo their July salaries.<br /><br />Agencies<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/will-struggling-british-airways-cut-spending/">Will struggling British Airways cut spending?</a></p> Troubled British Airways said Friday that it would slash capital expenditure by one fifth in the current financial year after posting another sharp drop in monthly passenger numbers.

“Market conditions continue to be very challenging with trading at levels well below last year,” the struggling airline said in a trading update.

“In response to the challenging economic conditions British Airways has reviewed its business plan.

“Forecast capital expenditure has been reduced from 725 million pounds to 580 million pounds for 2009-2010 and is likely to remain at that level in 2010-2011.”

The airline also announced it carried 2.93 million passengers last month, 4.9 percent fewer than in June 2008.

And BA repeated that it wanted to slash 3,700 jobs in the current financial year, which runs until March 2010. It has already axed 2,500 jobs worldwide over the past year.

BA also revealed that it would delay the delivery of its fleet of Airbus A380 superjumbos and announced more reductions to its summer 2009 and winter 2009-2010 flight schedules.

“The delivery schedule for the first six Airbus A380 aircraft has been extended by an average of five months with the first delivery still due in 2012,” the carrier said.

“The schedule for the remaining six A380s has been extended by an average of two years with the final aircraft arriving in 2016.”

In May, BA had reported an annual loss of 375 million pounds, blamed on plummeting demand for tickets as well as high fuel costs.

After diving into a financial loss, BA asked staff to work for free, while promising that chief executive Willie Walsh and finance director Keith Williams would forgo their July salaries.

Agencies

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]]> http://investmoneyinindia.com/will-struggling-british-airways-cut-spending/feed/ 0 http://investmoneyinindia.com/will-struggling-british-airways-cut-spending/ Inflation affects household budget in India http://feedproxy.google.com/~r/InvestInIndia/~3/dlbAiN0p5yU/ http://investmoneyinindia.com/inflation-affects-household-budget-in-india/#comments Fri, 03 Jul 2009 12:57:45 +0000 Invest In India http://investmoneyinindia.com/?p=1594 Inflation in India dropped to negative market recently. For the first time in last 33 years the inflation rate turned to negative in India. Despite the negative inflation in India people have been feeling the pinch of the food prices. For common men the inflation is state where there will be rise in the prices [...]<p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/inflation-affects-household-budget-in-india/">Inflation affects household budget in India</a></p> Inflation in India dropped to negative market recently. For the first time in last 33 years the inflation rate turned to negative in India. Despite the negative inflation in India people have been feeling the pinch of the food prices.

For common men the inflation is state where there will be rise in the prices of goods and services and the value of money decreases. There is increase in the price of commodities in India by around twenty per cent; it is evident from the wholesale price index (WHI). Inflation is sensational issue in India and has huge impact on the political economy of India.

In the era of NDA the high price of onion made the government to face sever criticism of the people. Now the situation is much more similar to that, the prices went up and budget of household is affected. In 2008, the inflation rose to double digit market and Reserve Bank of India( RBI) took many monetary and fiscal measures to check the inflation rate in India amid the global economic crisis.

Both supply and demand side of inflation have been considered by the RBI to keep tab on the soaring inflation rate. The measures were successful, as a result the RBI got tab on the inflation. For last eight to ten months the drop in the inflation from double to mere zero is quite impressive. It was speculated the high inflation rate would affect the Indian economy.

The inflation has dropped to negative mark, but no relief to the people as the prices of goods and services are still high. The low production of some commodities in India for last eight months pushed the price up despite lower inflation rate. The RBI and government would chalk out measures to check the negative inflation which may lead to deflation state in the country.

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]]> http://investmoneyinindia.com/inflation-affects-household-budget-in-india/feed/ 1 http://investmoneyinindia.com/inflation-affects-household-budget-in-india/ Win Big Prize Money at Facebook Developer Contest http://feedproxy.google.com/~r/InvestInIndia/~3/caeLDqqNNkc/ http://investmoneyinindia.com/win-big-prize-money-at-facebook-developer-contest/#comments Fri, 03 Jul 2009 10:46:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-7061340842936140566.post-6392407012655373430 Facebook would become the first social networking site to showcase apps in Hindi as it calls for entries in English and Hindi to showcase web development skills in two categories of Facebook apps &#38; Facebook Connect Integrations<br /><br />The day for which the Indian developer community had been waiting has finally arrived. Facebook, whose mission is to give people the power to share and make the world more open and connected, announced today the launch of ‘Facebook India Developer Contest’ – a contest for Indian developers to showcase their web development skills by creating Facebook applications and Facebook Connect Integrations. The contest began on July 2 and ends on September 11, 2009 and is located at www.facebook.com/developercontestindia. <br /><br />This is the first time Facebook is organizing a developer contest in India. Entries will be judged on originality, business potential, social utility, usefulness, expressive features, intuitiveness and potential of the application. There are three cash prizes; $4000 for the first place, $2000 for the second place and $1000 for the third, in each of the two categories. <br /><br />To enter the contest, participants are required to create a Facebook platform application for use on the Facebook site or Facebook Connect integrations in English or Hindi and register their application in the contest’s homepage. The contest is open to Indian residents over the age of 16 with a facebook.com account<br /><br />Ruchi Sangvi, engineer and manager of the Facebook platform said, “India ranks second in the number of software developers with 3.9 million software developers; we are very excited to engage with the developer community. Facebook has experienced a tremendous growth in India. Through the contest, we hope to see many rich experiences that leverage the social graph and empower Facebook users to share and connect.” <br /><br />Facebook Connect enables people to combine their Facebook experiences with any participating Website, desktop application or mobile device. When websites incorporate Facebook Connect, Facebook’s more than 200 million active users around the globe can automatically import profile information and bypass the need to build a friends’ list from scratch. More than 10000 websites have incorporated Facebook Connect since its general availability in December 2008.<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/win-big-prize-money-at-facebook-developer-contest/">Win Big Prize Money at Facebook Developer Contest</a></p> Facebook would become the first social networking site to showcase apps in Hindi as it calls for entries in English and Hindi to showcase web development skills in two categories of Facebook apps & Facebook Connect Integrations

The day for which the Indian developer community had been waiting has finally arrived. Facebook, whose mission is to give people the power to share and make the world more open and connected, announced today the launch of ‘Facebook India Developer Contest’ – a contest for Indian developers to showcase their web development skills by creating Facebook applications and Facebook Connect Integrations. The contest began on July 2 and ends on September 11, 2009 and is located at www.facebook.com/developercontestindia.

This is the first time Facebook is organizing a developer contest in India. Entries will be judged on originality, business potential, social utility, usefulness, expressive features, intuitiveness and potential of the application. There are three cash prizes; $4000 for the first place, $2000 for the second place and $1000 for the third, in each of the two categories.

To enter the contest, participants are required to create a Facebook platform application for use on the Facebook site or Facebook Connect integrations in English or Hindi and register their application in the contest’s homepage. The contest is open to Indian residents over the age of 16 with a facebook.com account

Ruchi Sangvi, engineer and manager of the Facebook platform said, “India ranks second in the number of software developers with 3.9 million software developers; we are very excited to engage with the developer community. Facebook has experienced a tremendous growth in India. Through the contest, we hope to see many rich experiences that leverage the social graph and empower Facebook users to share and connect.”

Facebook Connect enables people to combine their Facebook experiences with any participating Website, desktop application or mobile device. When websites incorporate Facebook Connect, Facebook’s more than 200 million active users around the globe can automatically import profile information and bypass the need to build a friends’ list from scratch. More than 10000 websites have incorporated Facebook Connect since its general availability in December 2008.

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]]> http://investmoneyinindia.com/win-big-prize-money-at-facebook-developer-contest/feed/ 0 http://investmoneyinindia.com/win-big-prize-money-at-facebook-developer-contest/ Will India IT sector miss export target of $60 bn by FY10? http://feedproxy.google.com/~r/InvestInIndia/~3/_GxS8r_oG2k/ http://investmoneyinindia.com/will-india-it-sector-miss-export-target-of-60-bn-by-fy10/#comments Fri, 03 Jul 2009 04:54:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-7061340842936140566.post-8999249519324594707 India's software sector is likely to miss the much-touted target of touching 60 billion dollar exports by FY10, due to<br />unprecedented slowdown in key markets like the US and Europe, IT industry body Nasscom said.<br /><br />"... the aspiration of $60 billion by December 2010 is likely to be delayed by at least three to four quarters due to unprecedented slowdown in 2009 in key markets, particularly the US and Europe," a Nasscom-McKinsey report said.<br /><br />The technology and business services industry grew substantially to $52 billion in 2008 including $12 billion in the domestic segment.<br /><br />Now with the financial meltdown taking its toll, the software and services revenue outlook has been revised downwards.<br /><br />Nasscom had earlier scaled down the growth rate for software exports to 16-17 per cent in FY09 as against 21-24 per cent announced earlier.<br /><br />However, the report -- Perspective 2020 -- said the future of the IT industry remains secure in the medium to long term, even in the face of current macro-economic trends.<br /><br />Agencies<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/will-india-it-sector-miss-export-target-of-60-bn-by-fy10/">Will India IT sector miss export target of $60 bn by FY10?</a></p> India’s software sector is likely to miss the much-touted target of touching 60 billion dollar exports by FY10, due to
unprecedented slowdown in key markets like the US and Europe, IT industry body Nasscom said.

“… the aspiration of $60 billion by December 2010 is likely to be delayed by at least three to four quarters due to unprecedented slowdown in 2009 in key markets, particularly the US and Europe,” a Nasscom-McKinsey report said.

The technology and business services industry grew substantially to $52 billion in 2008 including $12 billion in the domestic segment.

Now with the financial meltdown taking its toll, the software and services revenue outlook has been revised downwards.

Nasscom had earlier scaled down the growth rate for software exports to 16-17 per cent in FY09 as against 21-24 per cent announced earlier.

However, the report — Perspective 2020 — said the future of the IT industry remains secure in the medium to long term, even in the face of current macro-economic trends.

Agencies

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]]> http://investmoneyinindia.com/will-india-it-sector-miss-export-target-of-60-bn-by-fy10/feed/ 0 http://investmoneyinindia.com/will-india-it-sector-miss-export-target-of-60-bn-by-fy10/ Short-term FD has lower interest rate than savings a/c http://feedproxy.google.com/~r/InvestInIndia/~3/2EbJOVfHDQw/ http://investmoneyinindia.com/short-term-fd-has-lower-interest-rate-than-savings-ac/#comments Thu, 02 Jul 2009 07:49:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-6423990277910881594.post-6457690212715182950 Almost all the banks have slashed their <a href="http://www.rupeetimes.com/compare/fixed_deposits/fd_rates_results.php?type=b&#38;sort=rate&#38;bank=&#38;duration=&#38;unit=days&#38;amount=&#38;btnGo=Get+Rates">fixed deposit rates</a>. After this revision the interest banks are offering on the tenure between a month and 45 days is lower than the 3.5% minimum savings bank rate and some of the banks are not even giving any interest on short-term maturities.<br /><br />Therefore at this time it is better to keep money in the savings bank account rather than investing in fixed deposits.<br /><br />For instance amongst the private sector banks HDFC Bank is giving a 2.25% interest on deposits below Rs15 lakh for 15 to 29 days and only a 3% interest on deposits kept for 30 days to 45 days.<br /><br />While the ICICI Bank is not giving any interest on deposits for 7 days to 14 days and offers only a 3.25% interest for deposits maturing between 15 and 45 days.<br /><br />Whereas amongst the public sector banks State Bank of India (SBI) is offering only a 3% interest on deposits maturing in 15-45 days.<br /><br />The savings bank account rate is fixed by the government therefore it can not be changed by the banks whereas it’s not the case with deposit rates.<br /><br />Anindya Mitra, senior vice-president, retail liabilities, HDFC Bank explained, "We may think that the savings rate has to come down but we can't tinker with it and why should we pay more than 3.5% for short-term money when we can borrow one day funds from the inter-bank call market at 3%". Mitra added that companies, funds and high net worth individuals having huge amount generally invest funds in these tenures.<br /><br />He stated, "For companies, it's still the better option to keeping huge chunks of money in current accounts at 0%. Some companies which do not even have a bank account open an FD".<br /><br />On the minimum maturity period if you invest more money the banks give less interest. For instance ICICI Bank, offers only 1.5% interest on deposits from Rs15 lakh to Rs1 crore in the 7-45 days' tenure. While Canara Bank offers 1% for deposits of more than Rs1 crore for seven to 14 days and only 2% for deposits kept for 15 to 30 days.<br /><br />Regarding offering very low interest rate on minimum tenure bankers say that there is enough liquidity in the system therefore they don't need short-term cash. According to SBI official, "These funds were used to give short-term bridge loans for companies just before their actual loans were being passed. These loans were in demand, particularly when the economic growth was brisk, but now that's not the case".<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/short-term-fd-has-lower-interest-rate-than-savings-ac/">Short-term FD has lower interest rate than savings a/c</a></p> Almost all the banks have slashed their fixed deposit rates. After this revision the interest banks are offering on the tenure between a month and 45 days is lower than the 3.5% minimum savings bank rate and some of the banks are not even giving any interest on short-term maturities.

Therefore at this time it is better to keep money in the savings bank account rather than investing in fixed deposits.

For instance amongst the private sector banks HDFC Bank is giving a 2.25% interest on deposits below Rs15 lakh for 15 to 29 days and only a 3% interest on deposits kept for 30 days to 45 days.

While the ICICI Bank is not giving any interest on deposits for 7 days to 14 days and offers only a 3.25% interest for deposits maturing between 15 and 45 days.

Whereas amongst the public sector banks State Bank of India (SBI) is offering only a 3% interest on deposits maturing in 15-45 days.

The savings bank account rate is fixed by the government therefore it can not be changed by the banks whereas it’s not the case with deposit rates.

Anindya Mitra, senior vice-president, retail liabilities, HDFC Bank explained, “We may think that the savings rate has to come down but we can’t tinker with it and why should we pay more than 3.5% for short-term money when we can borrow one day funds from the inter-bank call market at 3%”. Mitra added that companies, funds and high net worth individuals having huge amount generally invest funds in these tenures.

He stated, “For companies, it’s still the better option to keeping huge chunks of money in current accounts at 0%. Some companies which do not even have a bank account open an FD”.

On the minimum maturity period if you invest more money the banks give less interest. For instance ICICI Bank, offers only 1.5% interest on deposits from Rs15 lakh to Rs1 crore in the 7-45 days’ tenure. While Canara Bank offers 1% for deposits of more than Rs1 crore for seven to 14 days and only 2% for deposits kept for 15 to 30 days.

Regarding offering very low interest rate on minimum tenure bankers say that there is enough liquidity in the system therefore they don’t need short-term cash. According to SBI official, “These funds were used to give short-term bridge loans for companies just before their actual loans were being passed. These loans were in demand, particularly when the economic growth was brisk, but now that’s not the case”.

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]]> http://investmoneyinindia.com/short-term-fd-has-lower-interest-rate-than-savings-ac/feed/ 0 http://investmoneyinindia.com/short-term-fd-has-lower-interest-rate-than-savings-ac/ Govt. in favor of new tax-saving scheme to tap ‘idle money’ http://feedproxy.google.com/~r/InvestInIndia/~3/lPZ0ErPyvDY/ http://investmoneyinindia.com/govt-in-favor-of-new-tax-saving-scheme-to-tap-%e2%80%98idle-money%e2%80%99/#comments Thu, 02 Jul 2009 06:35:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-6423990277910881594.post-6079484415428332272 The government is thinking over of introducing a new tax-saving scheme to collect 'idle money' kept with households and elsewhere in the system mainly for building funds for infrastructure.<br /><br />According to sources the tax benefits offered may be on investments up to Rs 5lakh and be involved in somewhat meeting the country's infrastructure funding needs, which have been gauged at as high as $750 billion.<br /><br />The scheme can provide multiple purposes including giving additional tax benefits to the public, channelizing the huge amount of money lying idle in saving accounts or with households for productive means, and this will also not add to the fiscal deficit, the sources said.<br /><br />The sources added the government has already made an announcement of borrowing program of over Rs 3,00,000 crore for the current fiscal and if further there is any increase the liquidity will be made available to the drying up private sector and also add to the expansion of fiscal deficit.<br /><br />Various sectors have been demanding for tax benefits for citizens and also garnering alternative resources for meeting the government's spending needs.<br /><br />At present, collective tax benefits are being offered on an investment of Rs one lakh in insurance, pension schemes, bonds, mutual funds, children's education and housing loans, etc. An additional benefit of up to Rs 1.5 lakh is given only for housing loan interest payments.<br /><br />As per Planning Commission approximation, the country would require around $500 billion for the building up of infrastructure during the remaining period of the 11th Plan (2007-12).<br /><br />According to country top private sector bank ICICI Bank's Chairman K.V. Kamath the capital need for the infrastructure sector will be even higher, at $750 billion, over the next three years.<br /><br />Meanwhile the policymakers have supported spending most of the money set for infrastructure as quickly as possible in the remaining years of the current five-year plan.<br /><br />Financial services major Reliance Money's CEO Sudip Bandyopadhyay points out any such initiative will be welcomed from the government in case it launches some sort of infrastructure bonds that can offer tax benefits of up to Rs five lakh in the Union Budget.<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/govt-in-favor-of-new-tax-saving-scheme-to-tap-%e2%80%98idle-money%e2%80%99/">Govt. in favor of new tax-saving scheme to tap ‘idle money’</a></p> The government is thinking over of introducing a new tax-saving scheme to collect ‘idle money’ kept with households and elsewhere in the system mainly for building funds for infrastructure.

According to sources the tax benefits offered may be on investments up to Rs 5lakh and be involved in somewhat meeting the country’s infrastructure funding needs, which have been gauged at as high as $750 billion.

The scheme can provide multiple purposes including giving additional tax benefits to the public, channelizing the huge amount of money lying idle in saving accounts or with households for productive means, and this will also not add to the fiscal deficit, the sources said.

The sources added the government has already made an announcement of borrowing program of over Rs 3,00,000 crore for the current fiscal and if further there is any increase the liquidity will be made available to the drying up private sector and also add to the expansion of fiscal deficit.

Various sectors have been demanding for tax benefits for citizens and also garnering alternative resources for meeting the government’s spending needs.

At present, collective tax benefits are being offered on an investment of Rs one lakh in insurance, pension schemes, bonds, mutual funds, children’s education and housing loans, etc. An additional benefit of up to Rs 1.5 lakh is given only for housing loan interest payments.

As per Planning Commission approximation, the country would require around $500 billion for the building up of infrastructure during the remaining period of the 11th Plan (2007-12).

According to country top private sector bank ICICI Bank’s Chairman K.V. Kamath the capital need for the infrastructure sector will be even higher, at $750 billion, over the next three years.

Meanwhile the policymakers have supported spending most of the money set for infrastructure as quickly as possible in the remaining years of the current five-year plan.

Financial services major Reliance Money’s CEO Sudip Bandyopadhyay points out any such initiative will be welcomed from the government in case it launches some sort of infrastructure bonds that can offer tax benefits of up to Rs five lakh in the Union Budget.

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Govt. in favor of new tax-saving scheme to tap ‘idle money’


]]> http://investmoneyinindia.com/govt-in-favor-of-new-tax-saving-scheme-to-tap-%e2%80%98idle-money%e2%80%99/feed/ 0 http://investmoneyinindia.com/govt-in-favor-of-new-tax-saving-scheme-to-tap-%e2%80%98idle-money%e2%80%99/ Picard to fly world’s first solar powered airplane http://feedproxy.google.com/~r/InvestInIndia/~3/YtbUF9h1vgc/ http://investmoneyinindia.com/picard-to-fly-worlds-first-solar-powered-airplane/#comments Wed, 01 Jul 2009 14:17:00 +0000 Tushar Mathur tag:blogger.com,1999:blog-7061340842936140566.post-7288203776251660821 Bertrand Picard and his team is all set to fly an airplane of solar impulse. The initial version of the solar plane spans 61 metres, but weighs about 1500 Kilogram (Kg). It will undergo trials providing evidence that it can fly at night.<br /><br />Picard wanted to demonstrate the potential of renewable energies. "I love this type of vision where you set the goal and then you try to find a way to reach it, because this is challenging," he told BBC News.<br /><br />This solar powered is called the HB-SIA is a part of a 70 million pound project, which will fly using 12,000 solar cells, rechargeable lithium batteries and four electric motors. The aeroplane integrates composite materials to keep it extremely light. Picard has decided to make five long trips sharing flying duties with the Project Partner, Andre Borschberg.<br /><br />"The real success for Solar Impulse would be to have enough millions of people following the project and being enthusiastic about it," said Picard. <br /><br />Agencies<div class="blogger-post-footer"><img width='1' height='1'></div><p>&copy;2009 Copyright by <strong><a href="http://investmoneyinindia.com" title="Invest In India"><strong>Invest In India</strong></a> <!-- Ad Links --> <div> <b><u>You might find these Offers Interesting</u></b> <ul> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj6' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj8' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guj9' type='text/javascript'> </SCRIPT></li> <li> <SCRIPT LANGUAGE='javascript' src='http://www.qksz.net/1e-guja' type='text/javascript'> </SCRIPT></li> </ul> </div> <!-- Ad Links --></p> <p><a href="http://investmoneyinindia.com/picard-to-fly-worlds-first-solar-powered-airplane/">Picard to fly world&#8217;s first solar powered airplane</a></p> Bertrand Picard and his team is all set to fly an airplane of solar impulse. The initial version of the solar plane spans 61 metres, but weighs about 1500 Kilogram (Kg). It will undergo trials providing evidence that it can fly at night.

Picard wanted to demonstrate the potential of renewable energies. “I love this type of vision where you set the goal and then you try to find a way to reach it, because this is challenging,” he told BBC News.

This solar powered is called the HB-SIA is a part of a 70 million pound project, which will fly using 12,000 solar cells, rechargeable lithium batteries and four electric motors. The aeroplane integrates composite materials to keep it extremely light. Picard has decided to make five long trips sharing flying duties with the Project Partner, Andre Borschberg.

“The real success for Solar Impulse would be to have enough millions of people following the project and being enthusiastic about it,” said Picard.

Agencies

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