04 KALEIDOSCOPE
Quiz
1. The organisation which takes
care of the securities and assets of a
mutual fund is called
a) Custodian
b) Guardian
c) AMC
d) Trustee
2. DBS in DBS Chola is a group
belonging to which country
a) Australia
b) Denmark
c) Dunedin
d) Singapore
3. Which is the first actively man-
aged Shariah compliant fund in In-
dia?
a) DSP Black rock
b) Taurus Ethical Fund
c) SBI Magnum Sector
d) JM core 11 fund
4. If inflation averages a modest
three percent per year, how long
will it take for the average price you
pay for goods and services
doubles?
a) 9 years
b) 24 years
c) 41.5 years
d) Never
5. A stock which trades for less
than two cents (USA) is called as
a) Cheap stock
b) Not a stock
c) Penny stock
d) Cent stock
6. STT in tax parlance means
a) Short Term Tax
b) Sales and Trade Tax
c) Securities Transaction Tax
d) Subsidized Trade Tax
7. IX is an indicator of market
mood in
a) Short Term
News you can use
Double valuation of mutual
funds
The Association of Mutual Funds
in India (AMFI) has decided that ve-
ry soon mutual funds will be able to
use ICRA’s (Indian Credit Rating
Agency’s) services to value their
debt funds. As of now only CRISIL
gives the valuations based on which
the funds set their NAV’s for each
day.
SBI does it again
After reducing interest on hous-
ing loans the State Bank of India has
fixed car loan rates at 10 per cent for
the coming year. Any new car loan
ERGO Monday, June 1, 2009
b) Long term
c) Past week
d) Past year
8. If you took a loan of Rs
1,000,000 for 10 years at reducing
interest rate of 13.25% what would
be the EMI?
a) 15100
b) 15078
c) 15200
d) 15780
9. If you took housing loan of
2,000,000 for 20 years at 11% pa
and paid the EMI for 10 years, what
would be the balance principal at
the end of the 10th year?
a) 1,498,000
b) 1,000,000
c) 800,000
d) 1,100,000
10. If your father had purchased
100 shares of Wipro at Rs 100 per
share in 1980, how many shares Do plan a good
would you have today? insurance scheme for
a) 100 a happy life ahead.
b) 10000
c) 5,760,000
d) 58,889
Winner gets a cash prize of Rs
500. Answers should reach us by
June 6 and will be declared in these
columns, issue dated June 8. Win-
ner will be chosen from a lucky
Don’t buy life insurance
draw of all correct entries. If you don’t care for your family and loved ones
Send your answers to finer-
go@goergo.in or SMS your answers SNEHA BAJAJ When I lose a house and get insurance, I
to 92813 98889. For example if you support@finerva.com can build my house again. But if I lose my life,
choose a) as the answer to question what is the point in my insurance cover, any-
1 and b) as the answer to question 2
T
he first impulse that we get when some- way I am not going to use the money – that’s
type it as 1a2b. body says “I am a life insurance agent” is the general view.
Answers for last week’s quiz to run away. Traditional methods of sell-
Mutual Fund ing have brought about such a sorry Asset vs beneficiary of asset
Religare state. Though the purpose of insurance is to The house is the asset and the beneficiary
protect or preserve the value of assets. Assets is we and the owners of the house. For our
include houses and commercial buildings, own lives, we are the asset and our depen-
vehicles, health and life. dents are the beneficiaries.
Insurance ensures that the financial value
of the asset is given back to the owners so that
they can rebuild or reacquire the asset, in
Therefore life insurance is not for us but for
our dependents. So we do need life insurance
if we care for our loved ones truly.
case it is lost.
The biggest asset we have is our life and it How much insurance do I need?
will be at 10% for the first year and can never be restored. Even health can be Income Replacement Method: This meth-
then at the rate prevailing in the recovered to a great extent. od is based on the premises that at least our
market. This is 1.5% lower than the last drawn salary or in-
rate currently prevailing in the mar- come should go to our
ket. family on a regular basis
if we are no more.
Property services from Geogit The table below illus-
Leading brokerage firm Geogit is trates an example for an
entering the real estate domain with executive earning a
the launch of its Property Services monthly salary of Rs.10,
Division. This division is like a real 000.
estate broker but more professional This amount of say
and systematic. It comes as a com- Rs.11 lakhs (Rounded
mon professional service to help from the value above) is
both property buyers and property the minimum life cover
sellers. The first operations would required for a person
start from Kochi and then expand to earning Rs.10, 000 and
the rest of the country. spending Rs.2, 000 on
himself. ■