Archive for January 14th, 2015

Is US shale oil discovery the main reason for decline in global oil prices?

January 14, 2015

The decline in crude oil prices has once again humbled our forecasters. How quickly the prices have declined from $100 plus levels to $50 levels and continued to decline is amazing. There are many reasons suggested for the decline and major one being  US shale oil revolution. People say due to shale oil, US has become a net supplier of crude oil in the world and this has dampened prices.

Prof. Lutz Kilian of Michigan Univ, an oil expert has a different take on the shale story:

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Changing the default option of dividend reinvestment in ELSS Mutual Funds..

January 14, 2015

Nice bit on default choices.

Mutual Funds offer ELSS funds (Equity Linked Savings Schemes) which are a tax saving fund and imposes a three year lock-in on investors. The idea is to promote equity investment and give both the fund (who gets tax sops) and investor (who gets locked in money) incentives for the same. The problem is dividends which are to be paid to investors.

Now it so happens that there are two choices for investors – payout or reinvestment of dividend. The default is the second one. So as always investors forget to tick their choice and reinvestment becomes the default. This leads to irritation for the investors:

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How Mr Dhirubhai Ambani changed the idiom of doing business in India..

January 14, 2015

A nice article by Shyamal Majumdar in BS on the topic.

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