CONTENTS
LETTER
ISSUE CONTENTS
28 June 2012
FROM THE
EDITOR
M
Debashis Basu MONEYLIFE | 28 June 2012 | 10
POPULAR PICKS
Truth & justice: Will Aamir Khan expose the legal system? Bribery At SEBI: SEBI Must Show Good Governance; Roral Orchih: Tatra Connections
SIP carefully utual funds, touts and advisors advocate investing through systematic investment plans (SIP) as the best way to create future wealth. While this is true, it can be a very dangerous tool if used blindly and it can lead you to even losses. Strangely, very little research has gone into SIPs, its strengths and weaknesses. In a first of its kind, we have used extensive data and analysis to come up with a comprehensive research on SIPs. We show when SIPs should be used and when it can flounder. In her Different Strokes section, Sucheta Dalal highlights how the Indian corporate sector acts as if it has nothing to do with the declining ethical standards in India and hopes to get by adjusting their sails to the wind. They may be in for a rude shock. Aamir Khan has enlivened the issue of medical malpractices. Dr Prof BM Hegde explains the true way to be a doctor—by having a heart and being human; it is the old fashioned way of treating patients which used to be highly effective. He laments that this important aspect is not being taught to medical students. Cable TV is about to be digitised. Dr Prakash Hebalkar, who was a top IT consultant in the industry’s early years, talks about how the new regulations do not take consumers’ interest into account. If you would like to escape the monsoons you will find Philippines is an interesting place to travel to, where it is not too expensive and has a sizeable English speaking populace. While we are on the subject of travel, we all know that hotels offer great loyalty programmes. Our columnist AJ offers great insights into how to make the best use of hotel stays. Moneylife Foundation successfully hosted a highly interactive session on Right to Information by Gaurang Damani and Nagesh Kini. We have a write up for those who have missed it. Please do write in with your feedback and the topics you would like us to cover.
18 DIFFERENT STROKES
24 Cover Story SIP Smartly SIPs help you deal with market volatility. But blindly SIPping will land you trouble. Here is how to SIP smartly. This is the first such report on SIPs. Researched and written by Debashis Basu & Jason Monteiro
13 Your Interest Airlines fined by consumer court; Consumer wins her fight against builder; Consumer forum: Death due to mosquito bite is an ‘accident’; Rs40 billion: Cost of traffic jam, delay at toll stations
14
Your Money
No Penalty on Pre-payment of Home Loans; Unclaimed Deposits; Morgan Stanley Gets Banking Licence; BoI Re-enters MF Business; Defunct Exchanges Must Close Shop; Financial Literacy in Villages; What Really Matters
16 Current Account Debt-ridden Greece & Its Philosophers
17
LOOSE CHANGE
Moneylife Quiz; Soundbites
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.
You Own Oil 40 DoCompany Shares?
52 True Doctoring
Dependence on oil prices, arbitrary government policies affects them
– We must produce humane doctors who will understand the pain and suffering of another human being – Pulse beat: Medical developments from around the world
STOCKS REVIEW
20 Full Circle
Our 42 Track Selections
In some ways we are back to the pre-reform days. But corporate India thinks it can prosper by quietly adjusting to the grim reality
No exit triggers,however price performance is closely looked at
SMART MONEY
Stocks 22 Are Really Cheap? There is a widespread propaganda that stocks have become undervalued. Think again STOCKS
30
Street Beat
– Swaraj Engines: Power-packed – Yuken India: Hidden Gem WHICH WAY
33
Price Vs Fundamentals
Should you follow the price or poor economic data? STOCKS VALUE PICKS
36
In & Out
We list some stocks which have come in and those which have gone out
STOCKGRADER 38 Medium Term
V-Guard Industries skyrocketed 16%, Lupin moved up 3%, while Munjal Auto tanked 8%
Long Term
GlaxoSmithKline moved up 6%, PTC jumped 9%, while Wabco India tanked 3%, Colgate went down 7%
HEALTH
INSURANCE
44 Insurance Trends – Jeevan Akshay VI: LIC Goes Online with Immediate Annuity – Term insurance seniors: Online Version Launched – LIC Jeevan Vaibhav: Not for Taxsavers – Interview: Gaurang Damani, social activist and founder of the NGO Karmayogi Prathistan – Fine Print: Are highest NAV products on the way out? LIC closes the arbitrage opportunity AUTO
Top 46 The Three After all his experience of playing with some of the best wheels in the best parts of the world, our motor columnist shortlists three of his most favourite cars TRAVEL
Philippines: Hidden 48 The Gem of the Far East Join Jaideep Mukerji in a trip across the Philippines, a country with a colourful heritage influenced by civilisations from across the world AIR TRAVEL
Been 51 You’ve Upgraded Loyalty marketing has perhaps been the biggest success story in travel industry in the past decade. Here is a short overview on why it makes sense for you to go back to the same hotels over and over again
CONSUMER ALERT
54 Crying Wolf – The regulator is making cable TV go digital which will benefit broadcasters but what about consumers’ interests, asks Dr Prakash Hebalkar – Hospital or Hell Hole? LEGALLY SPEAKING
57 Limited Change Will the changes in the system of consent orders make it more transparent and effective? ML FOUNDATION EVENTS
to use 60 Learning the RTI Do not ask too many questions, especially if they are pertaining to different departments says Gaurang Damani SAVING AND INVESTING
61 Earning Curve Should financial products be regulated like drugs? BEYOND MONEY
Blood for 66 Safe the Needy Think Foundation is about blood, the key to our survival, and blood-related ailments, Alekh Angre reports
DEPARTMENTS Letters............................. 4 Book Review.....................58 Money Facts.....................63