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MV Chronicle: Term Insurance, Q&A and more..


In the latest MarketVision Chronicle (Feb 26 2011): Read about Term Insurance, Market Q&A, and all else at MarketVision.

(Note: You have to register, and it’s free)

Q&A: Markets and Madnesses

What has happened to Anil Ambani Stocks? Should I buy? Should I sell?
There are a multitude of reasons. There’s talk of the great AA being questioned about the 2G scam. There is (and has always been) talk of them taking on too much debt. Stocks like RELINFRA, RPOWER and RCOM have been hammered, with RCOM going into the 80s on Friday. That’s a very serious low for RCOM and it isn’t looking very good for that stock.

On the other hand, this is a price at which other players – and vultures – will be starting to salivate. If there is a way out, it’s a stake sale, or a merger with another company. Or, big brother who owns the BWA licence might just decide to cash in – after all, he’s just got $7.2 billion from BP.

Will it happen? Who knows!

The only stock that looks interesting in the pack is Reliance Capital. But it will get hurt if there is a lack of trust in the group, because it’s a leveraged NBFC.

Term Insurance

(This is an article I wrote long ago for Jet Lite, but a number of questions seem to be coming in about it, so I’ve reproduced it here)

Life Insurance is a strange beast. What is a product designed to provide coverage against emergencies,  it has morphed into an investment – if you live, you’ll make so much money, otherwise your family will get this much.

On the face of it, that’s not a bad statement to make, but the devil is in the details. In the process of mixing up insurance and investment, products are now designed that they give you a little of both, but not enough of either. Let me now talk about delinking the two – and keeping insurance as insurance.

We’re going to look at Term Insurance – or, insurance against death, for a certain term.

I don’t want my money back.

Editors Picks

A set of external links chosen from our daily updated Editor’s Picks section.

Promoters’ Debts: Investors Lose Rs. 50,000 Crores (The Economic Times)

Investors have lost Rs 50,000 crores since January in over 100 companies whose promoters pledged at least half of their holdings.

Luxury Housing Boom Takes a Breather (The Wall Street Journal)

Sales of $1 million apartments in India have slowed just as Donald Trump wants to enter the market. Buyers can negotiate better deals, says Shefali Anand, India personal finance writer.

(See the whole chronicle)


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