[04:30:32 PM] => Myiris: Welcome Friends to the live chat session with Mr. Vinay Bajpai, AVP, Investsmart India Ltd. Mr Bajpai will be joining us shortly.
[04:32:13 PM] => Disclaimer: Mr. Vinay Bajpai is the AVP at Investsmart India Ltd. At the time of this conversation / chat, Mr. Bajpai may or may not have positions in the stocks mentioned below , although holdings may change at any time.
[04:32:49 PM] => The views expressed by Mr. Vinay Bajpai is based upon information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such. Mr. Bajpai, his company and its affiliates, officers, directors, partners, and employees may, from time to time, have long or short positions in, buy or sell and deal as principal in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed.
[04:34:07 PM] => None of the information contained herein constitutes, or is intended to constitute a recommendation of any particular security or trading strategy or a determination that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. You should consult with and rely upon your own advisors whether and how to use such information in making any investment decision.
[04:34:55 PM] => Lastly the views expressed by Mr. Bajpai have no bearing whatsoever with that of IRIS Ltd. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to
[04:35:52 PM] => any user on account of the use of information provided on its website www.myiris.com.
[04:36:58 PM] => Myiris: Welcome Mr Bajpai to the session.

[04:39:47 PM] => Hunoz: Your views on the market given that momentum stocks are not included in the option and future segments. Is Sebi playing it safe?
[04:41:03 PM] => VB: There are certain parameters have been laid down by SEBI for selecting the stocks for options and futures segment. Momentum stocks do not qualify for the same, however Sterlite Optical is featuring in the list. The list represents the major industries and the indices.

[04:42:40 PM] => Sidsab: I have just taken VRS. How should I go about investing this money?
[04:43:47 PM] => VB: First and foremost you need to understand the tax implication and compute the net amount you receive in hand. Generally one gets ex-gratia payment, provident fund, gratuity and leave encashment. Each has a different tax implication. An ideal asset allocation is 75% Debt, 15% Equity and 10% in Cash and near cash balances.
[04:44:50 PM] => Debt investments would provide you a regular income stream post VRS. Investments need to be made keep in mind the following criterion 1) Safety 2) Liquidity 3) Tax Saving and 4) Stable Returns
[04:46:18 PM] => Equities providing you the necessary cover from inflation; Remember the purchasing power of money keeps diminishing with time. And of course, cash helps you meet the need for contingency expenditures esp. medical expenses.
[04:47:23 PM] => Most people in their over-enthusiasm for regular income ignore the inflationary aspect. A moderate degree of capital appreciation is very important and only equities can provide the same. As a thumb rule the maximum equity exposure should be capped to (60-Your Age) as a percentage of your portfolio.
[04:47:39 PM] => However the planning has to be very detailed and individual specific.

[04:48:55 PM] => Kajjan.Tandon: I am a retiree. In the current scenario of falling interest rates and high inflation where do I invest my money?
[04:50:00 PM] => VB: An ideal asset allocation is Debt 90% Equity 5% and Cash 5%. Depending on the incidence of regular income (whether monthly, quarterly, half-yearly & annually) investments could split across Pension Plans, Fixed Deposits of Banks/FIs, Bonds/Debentures of FIs like ICICI and IDBI, RBI Relief Bonds and Government Paper.
[04:51:00 PM] => LIC Jeevan Akshay is one instrument ideally suited for retirees given the predicament of falling interest rates and rising inflation. It is the only immediate annuity plan offering interest rates unmatched by no other Annuity rates defer depending on the incidence of income and type of option.
[04:53:43 PM] => An important point to be borne in mind while investing the retirement monies is that the investment mix needs to be selected with due consideration to the tax implications esp. benefits u/s 10, 80L, 88, 80CCC etc. Because the returns from investment can often push the investor into the highest tax slab, greatly reducing the post-tax returns

[04:54:21 PM] => Harish: How is Life cycle investing (the concept) expected to benefit me?
[04:55:46 PM] => VB: This concept, which is very prevalent abroad is relatively new to the Indian investing public and has already started gaining recognition in a very short span of time. Basically, life cycle investing involves systematic investment planning throughout one�s entire life cycle in order to help best achieve one�s financial objectives and goals.
[04:57:17 PM] => According to the Lifecycle Investing Theory propagated by Modigliani and Miller, every individual passes through various stages in his life cycle. The first is the accumulation phase of an individual in which he has multiple needs but limited resources to fulfill them. This phase is marked by dissaving by the individual, as he spends more by way of loans than he earns to meet his multiple needs.
[04:57:53 PM] => An individual in the accumulation phase can afford to take a higher level of risk and is usually aggressive. The second phase in an individual�s life cycle is the consolidation phase wherein the individual in his mid-career has satisfied most of his essential needs and is looking at opportunities of incremental wealth generation.
[04:59:57 PM] => This phase is marked by net saving on part of the individual. The third and fourth phases, generally overlapping are those of spending and gifting. These phases are again marked by dissaving as an individual eats into his earlier savings to meet up with his remaining lifecycle.
[05:01:43 PM] => As an individual traverses through these stages in his life cycle, not only do his financial objectives and goals change, but also his risk bearing ability, one of the most important determinants of his broader investor profile.
[05:02:29 PM] => Thus it becomes imperative, with these changing factors to adopt an investment planning strategy that is in tune with the said factors. Financial independence is what we are all striving for and systematic investment planning is one of the best ways to achieve it.

[05:04:28 PM] => Jamshed: What do you mean by Life cycle investing? Is it a new buzz word hitting Dalal Street?
[05:04:44 PM] => VB : Answered Above

[05:05:27 PM] => Arlene27: What is life cycle investing? I am a beginner and absolutely a novice at investments. How can life cycle planning help me out?
[05:05:46 PM] => VB: First question already answered above.
[05:06:17 PM] => Investing is a process of making decisions today to achieve results that will not be known until tomorrow. As a career beginner, it becomes very important to systematically plan your investments since you not only need to plan for this phase (accumulation) but also for the remaining phases of your life cycle.
[05:07:25 PM] => And the earlier you start your planning and investing exercise, the better. At the stage you are in your lifecycle currently, since you can afford to take a higher level of risk and be aggressive, the ideal asset allocation is one having the highest level of equity, followed by debt and cash.
[05:08:37 PM] => The typical equity component for a career beginner should be in the range of 70-80%, debt in the range of 10-20% and rest as cash. Besides, the recurring incremental savings should almost always be dedicated to a systematic investment plan to help make the best out of compounding over a period of time.
[05:10:14 PM] => This will not only provide the necessary capital appreciation for satisfying multiple needs, but also help put you on a firmer footing while graduating to the next phase in your lifecycle, that of consolidation.

[05:13:50 PM] => R_chudasama: Do you advise to invest in SSI, Infosys and HFCL?
[05:14:36 PM] => VB: One should be selective in picking up the stocks. Out of the above 3stocks I would single out Infosys for its quality management and strong business focus.

[05:18:16 PM] => Hrajarekar: Do you advise to invest in GIPCL and Neyveli Lignite?
[05:18:30 PM] => VB: Neyveli Lignite is a value cum dividend yielding stock.

[05:19:00 PM] => Kpavithra: Why is the stock market going so down now days?
[05:19:26 PM] => VB : The market is responding to the short term factors such as ban on carry forward and introduction of rolling settlement. The fundamentals are intact and the stronger players like Institutional Investors are taking this as an opportunity to accumulate quality stocks at attractive valuations.

[05:19:45 PM] => Nehal: Do the Tech stocks in the markets still depend on Nasdaq Movement?
[05:20:22 PM] => VB: The valuations of the domestic Tech stocks are at relatively attractive valuations as compared to the US counterparts. Though the correlation with Nasdaq has surely come down in the recent times, a limited correlation still remains because of higher dependence of Indian IT companies on the US markets.

[05:20:39 PM] => Bhromar: Can I buy Silverline, Mcdowell, Rallisindia, Bharat Electronic,HFCL at current level?
[05:20:51 PM] => VB: No stock specific comments

[05:21:35 PM] => Vishalagarwal: I m having 2500 shares of HFCL @ 270. Please give me advice whether I should hold that stock for few months or I should book a loss. Right now the share is quoted on BSE @ Rs. 105 approx.. If your advice is to hold up to which time I must hold it. Now I even don�t want to gain from it. I only want to recover my capital or minimize my loss if any.
[05:21:53 PM] => VB: No stock specific comments

[05:22:32 PM] => Janus: I am 28yrs old (unmarried). I have Rs. 2 lacs where should I invest?
[05:23:23 PM] => VB: I would advice you to get in touch with a good investment advisor who could design a specific investment plan for you to meet your requirements .

[05:24:59 PM] => Rajesh_jain123: Where will the market head?
[05:25:51 PM] => VB: Your guess is as good as mine. However I see the more and more stocks getting into the stronger hands like Institutions which is a good sign for future of the market

[05:26:19 PM] => Jgviil: Please let me know the impact of Rolling Settlement on the Indian market?
[05:26:33 PM] => VB: Though, Rolling settlements are new to Indian Markets. Worldwide, Foreign Institutions are used to this. They are quite comfortable with rolling settlements. As it would give advantage to the delivery based buyers like Institutions. I believe the price discovery mechanism would be increasingly under their control.

[05:27:04 PM] => Gmaran: DSQ Software, one of the top ten traded stock, has increased its Paidup Capital by 50 %. There were no press release, no intimation to Stock Exchanges, no resolution passed in AGM, no Board Meeting. Nobody seems to be bothered about this huge lapse in Corporate Governance. What is the remedy for a minority shareholder like me. What steps, must a Mutual Fund holding shares in such companies do under such circumstances? Kindly answer this question even though your fund doesn't hold this stock?
[05:27:25 PM] => VB: This is an issue on corporate governance and should be referred to the appropriate regulatory authorities.

[05:28:16 PM] => Jinesh: I am new to investments, could you please explain me what do you mean by life cycle investment?
[05:28:31 PM] => VB: Your question has already been answered. Please refer above

[05:32:25 PM] => Cyberdude_junky: What are your views on the Media Sector in total? Do you think scrips like Balaji Telefilms, Mukta Arts would again reach those levels which were there in October 2000.
[05:33:02 PM] => VB: Though the sectoral outlook is positive . The levels achieved in the last euphoria seem difficult to be achieve in the near future.

[05:33:19 PM] => Harish: The capital investment scenario is at best described as dull. The government is broke. And global economies are not faring any better. Where do see India heading growth heading, given these facts?
[05:35:39 PM] => VB: Ironically this kind of gloomy scenario provides best opportunity for long term investment.
[05:36:25 PM] => In fact India is currently the 2nd fastest growing economy in the Asian region. Based on relative growth opportunity India still provides attractive Investment avenue .

[05:36:54 PM] => Gautam: What should be typical portfolio a single professional should opt for (in %)?
[05:37:59 PM] => VB: While constructing a portfolio one should consider various factors such as age, the needs and most importantly the risk bearing capacity . Hence the portfolio allocation would differ for each person . I would suggest you to refer to the investor profiler on www.investsmartindia.com

[05:42:15 PM] => Myiris : Hang on Friends, Mr Bajpai is just taking a break for a minute

[05:44:30 PM] => Jajoo: How do you believe that our economy would behave given the good monsoons, a bad tax collection year & high oil prices and a recession. What GDP growth are you expecting and how do you see us achieving the same?
[05:44:56 PM] => VB: Given the high dependence of economic growth on agricultural performance, a good monsoon would help in reviving the falling industrial demand. Poor tax collections and higher oil prices could impact the fiscal situation. We are looking at a conservative 6% growth this year led by a rebound in agriculture.
[05:45:40 PM] => Industry and Services sector would maintain or slightly decline from last years level. We expect the industry to rebound in the second half of the year as the impact of the budgetary proposals seep in � tax sops, infrastructure spending etc.

[05:46:16 PM] => Ashok: Do you think that the market is rational?
[05:46:43 PM] => VB: Though in the short term the market shows wild movements as a reaction to specific events due to the psychological behavior of the investor . In the long run true valuations or rationality prevails

[05:47:34 PM] => Partho: Mutual funds have not given satisfactory returns, where should the small investor invest?
[05:48:01 PM] => VB: The MF route is one of the ideal ways for investment for small investors. One should have a close look at the various options to suite individual requirement .

[05:50:59 PM] => Vinay Gupta: Is there any income instrument in the market now which is inflation proof? If I have Rs 2 lakh and I need to invest with a certain degree of safety and still need protection from inflation, how do I go forward?
[05:52:01 PM] => VB: The inflation and taxes are a perpetual threat to the purchasing power of money. One of the objectives of investment is to hedge against inflation At present some of the LIC policies like Jeevan Dhara , Jeevan Akshay and Bima Nivesh offer relatively attractive returns for long term.

[05:57:24 PM] => Myiris: Hold on, Mr Bajpai is attending an important call .

[05:58:51 PM] => S Subramanian: Is it wise to go for investment in liquor companies, given the threat they face from imports after the removal of QR? Will they mange the situation?
[05:59:24 PM] => VB: In the current market so many good companies in the growth sectors are available at attractive valuations . We suggest you to refrain from investing in this sector.

[05:59:59 PM] => Ram: What measures do you think the government should initiate to revive investor interest in the capital markets?
[06:01:23 PM] => VB: Proper risk management systems need to be in place . Tighten norms on corporate governance . Especially related to insider trading.
[06:02:34 PM] => Proactive measures by the regulatory authorities would go a long way in bringing more confidence of the investing community.

[06:05:31 PM] => Lira: Is insurance a good investment avenue?
[06:08:21 PM] => VB: Yes. Pension plans by such companies are ideally suited for Retirement. These products also have added tax benefits and provide regular income.

[06:09:10 PM] => Neegod: Given the bleak industrial environment, do you see a stock market revival?
[06:10:48 PM] => VB: The measures introduced by the government in the budget need to be implemented. We feel that the industrial scenario would improve in the second half and lead to a revival in the markets in the next couple of quarter

[06:11:44 PM] => -Mehta: I have bought NIIT at 1500, What should I do?
[06:12:37 PM] => VB: No stock specific comments

[06:13:08 PM] => Ajay: Do you see a revival in the primary markets in the near future?
[06:14:05 PM] => VB: Primary market performance is strongly linked to the secondary markets and unless the secondary markets pick up, the lackluster activity would continue here.

[06:15:05 PM] => Nanandakumar: You have ICICI giving you a 8% dividend yield (tax free too!). Is not it better than investing in their 10.25% bond because there is possible capital appreciation as well?
[06:16:14 PM] => VB: Though the dividend yield is fixed the capital appreciation is variable while in the case of the latter stable long term returns are assured

[06:16:37 PM] => Abhijit: Do you see rolling settlement affecting sentiment on the stock markets?
[06:17:19 PM] => VB: In the short term we could see a reaction as a result of the liquidity crunch. But the measure is good for the healthy discovery of prices in the long run

[06:17:58 PM] => Rajalakshmi: Instead of investing in an income fund (interest rates might harden) just now, would it better to put I FD in a bank and hold to maturity? (I am a senior citizen and get an extra 50 basis points on that count)
[06:18:55 PM] => VB: We suggest LIC pension policies like jeevan akshay, dhara and suraksha which offer relatively much better returns

[06:19:30 PM] => Rajendra: What will be the impact of derivatives on Mutual fund industry?
[06:19:54 PM] => VB: Can be used as an effective hedging tool against portfolio risk

[06:20:14 PM] => Jayesh: I have invested in HFCL at 143 should I book loss?
[06:20:36 PM] => VB: No stock specific comments

[06:21:18 PM] => Gosrahul: What is the tenure of debt you would suggest in the present interest rate scenario, longterm of 5 yrs and above or short upto 2-3 yrs? should one invest for short term of long term in your mid life cycle
[06:22:02 PM] => VB: We anticipate a further reduction in interest rates and so it would be better to lock in rates for the long term

[06:22:34 PM] => Sachin: What kind of mutual fund is ideal for me? I am 55 and retiring in next three years?
[06:23:21 PM] => VB: Gilt, Liquid and Income funds

[06:24:27 PM] => Nitin: How much insurance should one have? Does insurance give good returns apart from life cover?
[06:24:45 PM] => VB: Answer as discussed above

[06:25:06 PM] => Amar: First it was the IT sector that fell to dumps, then it was media. Old economy stocks don\'t seem to have promise. Where do I go?
[06:25:43 PM] => Amar: First it was the IT sector that fell to dumps, then it was media. Old economy stocks don\'t seem to have promise. Where do I go?
[06:26:48 PM] => VB: Diversification is the name of the game. You should look at other asset classes also

[06:27:03 PM] => Amitsahai: Can I find value in the FMCG sector now that monsoons have finally arrived. Will RURAL demand pick up?
[06:27:32 PM] => VB: Yes. Selective value picks can be looked at on declines

[06:29:06 PM] => Manish: Do you believe in an averaging out concept. Should I average out my Equity Mutual Funds at this point. Secondly should I exit the Debt mutual Funds given that they have given such phenomenon returns in the last six months?
[06:29:27 PM] => VB: Rather than averaging it is better to look at individual mutual funds and invest. Debt funds still hold promise for further gains as we could see another rate cut. So for the long term you could hold on

[06:29:50 PM] => Amitpal: Call Options & Futures, Stocks & Mutual Funds - where would
[06:30:16 PM] => VB: Please contact our nearest office for specific investment planning as each of the above classes satisfy diverse needs

[06:30:31 PM] => Sunita_Rao: Is the Textile Industry dead. Can I see a revival in the fortunes of Century, Raymond reliance etc.... Are down the line manufacturers expected to benefit guys like Indo rama which are going dirt cheap
[06:37:58 PM] => VB: No stock specific queries

[06:38:26 PM] => Myiris: Sorry for the delay in answering. There was some technical snag

[06:38:41 PM] => Nitinw: A choice of two sectors - Power or Software- where should I put my money?
[06:38:54 PM] => VB: In both. Diversify to minimize risk

[06:39:06 PM] => Gosrahul: What kind of aggregate returns (in % terms) can one expect to earn in the various life cycles?
[06:39:20 PM] => VB: Too generalized a question

[06:40:02 PM] => Madhu: As you mentioned that every body passes through a life cycle stage and accordingly, one need to design its financial planning, then how do one factor in the needs and goal to be achieved within one specific life cycle stage?
[06:40:39 PM] => VB: That is the concept of asset allocation. Your question has been answered above

[06:40:57 PM] => Nirja: PMS vs MF which one should I go for. Are there any PMS schemes which are based on profit sharing and loss sharing between the PMS manager and the Investor. The loss and Profits can be apportioned appropriately - any one to take the bait?
[06:41:38 PM] => VB: There are various considerations on the same. You could our nearest office for better guidance on the subject

[06:41:55 PM] => Shashi: Don�t you think the problems that are encountered by Enron, will further vitiate the investment environment?
[06:42:39 PM] => VB: It could send negative signals to the FDI community. Government is taking proper steps to revive the same

[06:43:06 PM] => John: Mr. Bajpai, we see lot of technical predictions that we are in the leg c5 afterwards, the stock indices are bound to move upwards like that. Since badla is banned, and rolling settlement will be in place what do you think where the markets will head? will it not alter the technical predictions as the fundamental functioning will get changed from next week?
[06:44:08 PM] => VB: We are in the terminal leg of the C cycle but the pivot point has been reached. We are currently in a transitionary phase and markets are simply undergoing a structural change. Technical predictions remain intact

[06:44:32 PM] => Jajoo: 6% GDP growth are you joking - can you give me a sectoral breakup i.e. manufacturing , Agriculture services etc...What sops are you talking about and what infrastructure spends?
[06:45:02 PM] => VB: We are looking at a 3.5% growth in agriculture, 5% in industry and 8% in the services sector. Given the strong linkages of agriculture with the rest of the economy a revival in agriculture could take the GDP growth rate to 6%.
[06:45:32 PM] => Government has reduced the indirect tax rates for various sectors. The NHAI project has been given further boost. Government has shown its inclination to increase rural housing, power, telecom, etc

[06:47:26 PM] => Myiris: Thats all for today. Thanks you all the participants for joining us.

[06:48:09 PM] => Myiris: Thank you Mr Bajpai for a very informative session.

[06:49:14 PM] => VB: Thank you all the participants, and a special thanks to Myiris for this session.

[06:51:43 PM] => Myiris: Friends, dont forget to join us for another chat session with Mr Anil Sarin, Fund Manager, Birla IT Fund on Monday, June 25, 2001.

[06:52:04 PM] => Thank you all and Bye for now