FLAME Newsletter - September 11, 2013


QUOTE OF THE WEEK:

"Investment empowerment relies on the consumers’ ability to understand complex financial products and their knowledge and experience of using such products and services" Dr Deepali Pant Joshi, Executive Director, RBI

YOUR FINANCE DEMYSTIFIED:

Invest in NCDs for Higher Fixed Returns and Lower Tax Burden

NCDs refer to non convertible debentures. They are considered one of the best debt options for the purpose of investments. There are two types of debentures: Secured debentures- Secured debentures are backed by assets of the company wherein there is a ‘charge’ on the asset. Hence, in case of a default, the asset can be sold to pay off the return.

Unsecured debentures do not have any such backing by assets. They are purely backed by the reputation and creditworthiness of the company issuing them. In case of a default there is nothing that can be done. However, secured debentures offer lower interest rates than unsecured debentures... Read more

What are NCDs and why you should invest in them?

Non convertible debentures vs fixed deposits

A bond which is not secured by any asset or collateral is known as a debenture. Debentures are mostly long term in nature and at times the holder has an option of exchanging the debenture for stocks of the issuing company.

Debentures are again of two types: Convertible debenture and non-convertible debentures. Convertible debentures are those which can be converted into company stocks. These types of debentures generally command a lower interest rate when compared with non convertible debentures.

Non convertible debenture are those which cannot be converted into company stocks. These types of debentures generally command a higher interest rate when compared with convertible debentures... Read more

Differences between shareholders and debentures holders

DID YOU KNOW?

What is Forward Markets Commission?

Just as SEBI regulates the stock market, Forward Markets Commission regulates the commodity market in India... Read more

TERM OF THE WEEK

What does trading volume mean in stock market?

Trading volume is the sum of buying and selling of securities in the market. The trading volume is built on rising prices. It is also linked with falling prices. Trading volume represents bullish and bearish trend.

IN THE NEWS THIS WEEK

Banks to sell only standard insurance products

5 insurance repositories get license from IRDA

MF AUM post subdued growth in August 2013

Equity MFs record net inflow of Rs. 4.58bn in August: AMFI

ABOUT FLAME

FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.



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