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Everyone is looking for profitable investments, but has a little idea how to identify them. I am going to share my approach which has worked successfully in the recent past. I will also share few of my investment mistakes. I track stock market closely and always look for potential mid cap companies having potential to become large cap.

In the month of August 2016 I identify DHFL as a potential company, the company during that time successfully raised money from the market and its NCD issue got oversubscribed 4 times if I remember correctly. The company is in the business of landing and if they are able to raise funds then there is defiantly demand and housing finance is one of the most secured ways to fund.  Without getting into much details  I bought at Rs. 237 and today on March 1, 2017 I exited that investment @ Rs. 335 so around 41% return in 7 months time.

In the month of November 2016 I identified another company Cox&King @ Rs. 165. Travel market in India is growing and there are very limited listed companies available in this space.  This company I also heard from various analysts as top pick so without getting into much detail I bought it. This investment also I exited today @ Rs. 191, so around 15% return in 4 months time.

In the month of November 2016 I identify another company City Union Bank @ Rs. 135; it’s a small bank growing steadily and has good potential, private sector banks are safest investment in India and I have made lot of money over a period in private sector banks. I did not analyse the Balance Sheet but saw profitability and also the NPA number and decided to put my money, it went up to 168 I exited in the month of February @ Rs. 155, so again around 15% returns in 4 months time.

In the month of August 2016 I identified another bank ( my favourite sector ) Federal Bank and with some simple analysis I put the money @ Rs. 62 I still hold that investment the today’s closing rate was Rs. 88 so around 42% return I am getting on my investment in less than 7 months.

In the month of October 2015 I bought Syngene International a Biocon Group Company. The company came out with an IPO price of Rs. 260 but I bought it @ 360. The rationale for that investment is that its a unique company and managed by good promoter with steady growth rate. I didn’t analyse the Balance Sheet much just saw the shareholding pattern and profitability history and put my money into it. It went Rs. 617 currently quoting @ Rs. 500 I am still holding that investment, so I am getting a return of 39% in 16 months time.

All the above investments are based on my analysis without any recommendation from anyone, so commonsense works most of the time. I had some failure stories as well.

I bought Network 18 Media & Investments in the month of June 2016 purely on the success of book my show @ Rs. 42.50. Current rate is Rs. 39 so almost no return for more than 18 months and I am still holding that investment.

I took a large position in Just dial in June 2015 @ Rs.1000 around. The rationale for that investment is that just dial has good market reach, they were coming out with new products, the company announced buy back @ Rs. 1650. I attended the AGM of the company and met CFO and CEO and they were very confident and assure me that they will be launching some advertisement champagne for the new products. Nothing worked and I had to exit that investment @ around Rs. 650 so around 35% losses in 1 year. The learning I had from that is never take a concentrated position on one stock.

So I am not suggesting that you don’t analyse the Balance Sheet but along with your analysis the commonsense is most important part in deciding the investment.

Please contact http://www.nriinvestments.in/ for any queries or requirements.

 

NRI (Non Resident Indian) has to file income tax returns in India:-

• If TDS has been deducted on some income and NRI wants to claim refund of the same.
• Taxable income in India during the year was above the basic exemption limit i.e INR 250000.
• NRI has short-term or long-term capital gains from sale of certain investments and assets, even if the gains are less than the basic exemption limit.
• The income could be interest, rent, salary or professional fees once basic exemption limit is crossed NRI has to file IT return in India.

We are in the month of March and the tax planning and advance tax payment has to be done in this month. Following are the action points which NRI has to do before March 31:-

Actions point - 1

Section 80 C investment to be looked at, if you are having tax liability and still not invested in any of the specified securities you can do that now before March 31. Aggregate amount of deduction u/s 80C, is restricted to Rs.1,50,000. The following are the list of securities you can invest to save taxes in India under section 80C:-

• Home Loan Payments:

When you pay a home loan EMI, there are two major components to it; the principal and the interest. Under section 80C you can claim tax benefits on the principal paid. You can also claim benefits under section 24 for the interest amount you paid during the year.

• Life Insurance:

All life insurance premium payments, include those paid for unit linked insurance plans, are also eligible for tax benefits under section 80C. Even if your policy covers other family members, you can claim the tax benefits for the premiums paid.

• Fixed Deposits:

Most banks offer tax saving fixed deposits that provide tax benefits on the amount deposited in them. These deposits come with a mandatory lock in period of 5 years and can have a maturity period ranging from 5 years to 10 years..

• Mutual Fund Investments (ELSS):

When you invest in a mutual fund, particularly an equity linked savings scheme or a tax saving mutual fund, the amount invested is eligible for tax exemption under this section. These mutual funds come with a lock in period of 3 years.

• Provident Funds:

There are different provident funds that you can invest in. One is the PPF (Public Provident Fund) with an annual investment limit of Rs. 1.5 lakhs and a maturity period of 15 years. The others are EPF and Employee Provident Fund.

• National Savings Certificates:

National savings certificates are an investment that come with maturity period of 5 and 10 years. Investments made in these certificates is also eligible for tax benefits up to Rs. 1.5 lakhs.

• Sukanya Samriddhi Account:

This is a special account that was announced by the government in early 2015. It allows parents to open an account for a girl child and deposit money in it, up to Rs. 1.5 lakhs per annum, and earn an interest of 9.1% per annum on it. This account can be opened for two children and can be extended to a third in case there are twins involved.

• Infrastructure Bonds:

These are bonds that are issued by infrastructure companies like Infrastructure Development Finance Company and India Infrastructure Finance Company. They offer an interest on the money invested with them and the investments made in the tax saving infrastructure bonds are eligible for tax benefits.

• Post Office Time Deposit:

Just like fixed deposits, time deposits held at post office also are eligible for tax benefits under this section. These deposits come with an option of a 5 year time deposit where investments become eligible for benefits. These deposits also offer attractive interest rates in excess of 8% per annum however it can change at any time.

• Education Expenses:

School fee is not cheap these days and for that reason, when you do pay it you can claim tax benefits on the amount that you have paid. The conditions that apply in this investment are that it is available only for two children, the school cannot be outside India and the tuition fee is the only payment that is eligible.

• Pension Funds:

Almost everyone has some sort of a plan in place for the day they retire. If your plan includes investments in a pension fund then the investments made are eligible for deductions under section 80C.

• Senior Citizen Saving Scheme:

This is a scheme that can only be invested in by senior citizens and provides quarterly interest payments instead of compounded interest. Under this scheme when an investment is made into the scheme, it becomes eligible for tax benefits under this section.

Actions point - 2

If you have taxable income in India you have to pay advance tax by March 15. If the taxes are not paid in advance department will charge interest on the same.

Actions point - 3

If you want to claim deduction under section 80G you need to make the donation payment before March 31.

Please contact http://www.nriinvestments.in/ for any assistance.