CONTENTS
LETTER
ISSUE CONTENTS
FROM THE
28 July 2011
EDITOR
B
Debashis Basu MONEYLIFE | 28 July 2011 | 10
Good Enough, 22 Not Mr Prime Minister Manmohan Singh is an honest man. He should not support those who are not
Extra Cover uying insurance—especially mediclaim—has become a tough task, thanks to the clutter of policies that are flooding the market with various exclusions and conditions. Then there is the issue of getting your claims passed, with the insurers, hospitals and third party administrators not always working in your interest. So, it was a surprise when we came across one of the bestkept secrets of the health insurance business— something that your advisor (or agent) does not want to tell you. For the first time, we explain that you can get extraordinary mediclaim deals from nationalised banks. Find out what is the optimum health policy for you and your family, with no tests and no premium escalation. This issue has it all, starting from the advantages and disadvantages of bank mediclaim, pre-existing diseases and medical test comparisons, additional benefits, room limits, co-pay options, service issues... It does not get more comprehensive than this. From this issue, we are proud to present yet another dimension to your money and life. Dr SD Israni, one of Mumbai’s well known lawyers and a friend of Moneylife, will be commenting on the legal issues that affect you. Of course, all of us need a work-life balance. Join us for a trip to Seoul—with our ace travel expert Jaideep Mukerji who has visited every major travel site you can think of. India is home to the largest English-speaking population in the world, but it is unfortunate that this language is not understood by a huge section of our people who need to understand the intricacies of the world of money and savings. To reach a part of this target audience, Moneylife Foundation held its first seminar on financial literacy in Marathi—continuing the Foundation’s mission to spread not just its reach—we have visited Pune, Nashik, Gurgaon and Kolkata so far—but also its inclusiveness. Of course, we have many more events coming your way. Stay tuned at www.moneylife.in to know what we have in store—and as I said earlier, our Bengaluru event will be beamed live to you.
AUTO
DIFFERENT STROKES
SMART MONEY
Little 24 Too for Too Many The SEBI chief wants to keep the no-load system in place. But it offers too little incentive for many small fund distributors and small investors FUNDS
28 Cover Story
Fund Offers: 26 New More is Less Mutual funds are not thriving. But more and more fund companies are coming onto the scene
Cheapest Mediclaim
STOCKGRADER 45 Momentum
Shree Renuka Sugars soared 24%, while Bhushan Steel declines 4%
Medium Term
Shoppers Stop gained 13%, 3M India was up 5%, and Petronet LNG was down 1%
Long Term
Castrol India surged 16%, ITC rose 4%, while Petronet LNG fell by 1%
INSURANCE
48
Current Account
– Are 3D glasses unhygienic? The BMC thinks so... – Mediclaim for domestic workers will be a challenge – The market has rallied, hoping that earnings would be good – A sole mosquito has supposedly caused 3,000 cases of malaria – Keep a close watch on your iPad and iPhone – Is there gain from rain? – Phony ad blitzes are too common – Greenwich is dotted with ultra-luxury homes – Beyond the Headlines: The Damodaran Committee report
STOCKS
40 Street Beat National Peroxide: Good growth prospects and excellent market share; Carborundum Universal: Strong integration and expansion plans; Contrarian Call: Are FMCG stocks overvalued?
19 LOOSE CHANGE The shocking attitude of the BSE; SEBI drags a report through adjudication on a Rs3 lakh penalty; ignores price manipulation; Broking companies are paying for grave systemic flaws
Disclaimer: Moneylife has a policy of not allowing its editorial staff to buy and sell stocks that are written about in the magazine. All personal transactions in individual stocks are subjected to internal disclosure rules.
Insurance Trends
SAVING AND INVESTING
58 Earning Curve Patience is a key virtue in stock investing
LEGALLY SPEAKING
Can you inherit company shares even if you are just a nominee?
ML FOUNDATION EVENTS
WHICH WAY
44 Signal Yellow? Time to be cautiously optimistic
Traditions 60 Seoul: & Megacity The capital of South Korea is a perfect example of the harmony between the past and the future
– Tata AIG Gyan Kosh—feature-rich but costly – Be safe and smart, avoid SBI Life Flexi Smart – Mediclaim: ‘Family’, as defined by insurers, excludes parents of married women – Fine Print: Portability Postponed; Max Bupa Integrates with IGMS; UID for Insurance KYC?
& 50 Nomination Share Ownership
Moneylife Quiz; Soundbites
20
Globally, prototypes of vehicles running on electricity and solar power are out. But our policymakers seem oblivious
TRAVEL
This is the insurance world’s best-kept secret. For the first time ever, Raj Pradhan reveals and analyses the products that can cover you and your family—at the most inexpensive premium
13
52 InLanea Slow
BEYOND MONEY
Joy 66 AForever
Umang Foundation has been bringing happiness into the life of the underprivileged by helping orphanages and providing care to cancer patients
Your Money 51 “Make Work for You”
DEPARTMENTS
“Holding a bag full of money is not enough, one needs to invest it appropriately,” said investment advisor Dilip Samant
Letters............................. 4 Book Review.....................56 Money Facts.....................63