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The latest Debit card security breach: What should you do?

The last couple of days have seen one of the biggest potential threats to the Indian banking system-the security of over 3 million debit cards was compromised due to suspected malware in the systems used by one Hitachi Payment Services. This company handles point-of-sales operations ( basically the in-store and online shopping that we do) of numerous vendors and the ATMs of a well-known private bank. The cards at risk are across the RuPay, Visa and MasterCard platforms. Baffled authorities of various banks are in a mixed state of taking steps like blocking their clients’ debits cards, to figuring out if their clients face any risk, to trying to decide who bears the losses, to deciding the best remedial procedures. While these banks will eventually reach a purposeful and effective conclusion, we- the debit card holders also must shoulder some responsibility in the form of basic safeguarding protocol and certain...

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JHS Svendgaard Ltd- Time to Smile Again?

-No part of the article is to be taken as investment advise or recommendation. In this article we are trying to analyse the situation of a micro cap. JHS is an oral care manufacturer having a product range of toothbrush, toothpaste, mouthwash, floss etc. 70% of the production is toothpaste. Initially, JHS was a pure focused contract manufacturer catering primarily to P&G and major part of its revenue came from its contract from P&G. Its expansion post 2009 did not generate the expected results with global demand slowing and to add to its woes crude prices surged and it did not have the power to pass on the entire raw material impact to its customers. Its highest operating margins were seen in 2009-10 at 27% with market price galloping to 120 levels. Piled up debt, reducing margins, concentrated client mix all in a nutshell derailed JHS’ movement. In 2012-2013, the last...

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Important Terms Used in Making Wills and in Estate Planning

Before we get into various aspects of estate planning and drafting of Wills, it is very important to get acquainted with some important terms used commonly in this area and understand what these terms mean. Image Source: www.mastfirm.com   Will: A document prepared to ensure that the wishes of the person to whom it belongs/for whom it is drafted with regards to the treatment to be given to his/her assets and properties after meeting the outstanding expenses/liabilities are followed upon his/her death.   Testator:  A person in ownership/possession of assets and property in his/her name who drafts a Will specifying his/her wishes regarding the passing on of the assets and property to his/her successors after his/her death.   Codicil: A document generally used to alter/modify/update the contents of a Will without having to redraft the same.   Attestation: This refers to the counter-signing of a Will by two “third-party” witnesses certifying that the said Will has been signed by...

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HDFC Balanced Fund – The Balancing Act

With a slew of Mutual Fund schemes screaming across investor’s eyes, the modern day web at times ends up complicating the life of passive investors. We at fin-kraft.com aim to simplify things right to the hilt by giving information in the simplest of forms. None of the products that we discuss though, should be blindly added to a portfolio, as that requires a brief analysis of the investor risk profile. Balanced funds though could form part of a highly long term portfolio. Every part of our balanced lifestyle, we are always trying to balance the act of fun and thrill with the risks that we take. Mutual Fund investing for the long and medium term too calls for this balancing act. Broadly, Mutual Funds are categorised in two broad categories –Equity and Debt. Equity Funds invest in shares/stocks and Debt Funds invest in fixed income bearing government or corporate securities. Balanced...

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Why should we worry about retirement planning?

An overwhelming majority of the Indian population thinks about retirement planning only a few years prior to retirement or even post actual retirement. Financial planners have time and again emphasized on the need to start retirement planning well in advance and choose the assets that you invest your retirement corpus in with caution. In this post, we aim to clarify the basic concept of retirement planning and the need for the same.  Image source: www.theinvestmentshopee.com At the outset, let’s first understand in simple terms what retirement planning is. It is nothing but a series of steps taken-financial and otherwise, to ensure a financially independent post-retirement life. It means that after a person stops earning active income from a job/profession/business (as the case may be) they must have enough financial assets to support all their post retirement expenses, without compromising their standard of living. These assets are accumulated by regular saving and investing...

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