Where Employees Provident Fund serves all salaried employees, the Public Provident Fund serves everyone - the employed, the un-employed, even children and housewives. The access to the fund is also quite easy as any post office and selected State Bank of India will serve the investor. The purpose of the provident funds is to help people in their retirement periods. Hence the EPF and PPF are for long term savings. Let us look at the details of the fund now.
Current Income: The returns from the fund are in the form of interest paid. The interest rate currently is 8 per cent compounded annually. The interest however is not paid out but is compounded (like a bank recurring deposit) till the maturity or withdrawal. With the current levels of inflation, real and stated, the return from the PPF is very low. This is a typical asset class mismatch.
Capital Appreciation: Being a typical debt investment, there is no capital appreciation for the investment.
Risk: There is hardly any risk for the capital or the returns from the PPF deposit. The risk however is with inflation reducing the value of the returns to a very low level. The risk is also in the long lock-in period of 15 years.
Liquidity: The PPF gives very little liquidity too. The fund, as mentioned earlier, is for a minimum of 15 years. This can be extended in further period of 5 years each indefinitely (till the account holder is no more).
The liquidity is in the form of withdrawals that can be made from the fund from the 7th year onwards. The withdrawal value is however limited to a maximum of 50 per cent of the average of the last 3 years' fund values. After the 7th year, one withdrawal can be made every year, based on the same condition.
In case of death of the account holder before the maturity of the account, the fund will be paid to the nominee/ legal heir.
Tax Treatment: This is where the PPF scores very high. The PPF comes under the exempt category. This means that the amount invested gets tax benefits, the interest is not taxed and so is the final maturity amount.
The investment gets benefits under Section 80C of the IT Act. The investment however is limited to a maximum of Rs 70,000 per year per person. This limit of Rs 70,000 includes the deposits made in the name of any dependent children.
Some other unique benefits from the fund are that:
There is not wealth tax on the value of the fund: In case of insolvency the money in the fund will not be attached to the assets. So only this investment is truly ours, come what may. (Except for education in a philosophical sense). This feature can be very useful particularly for business people in high risk industries. The fund cannot help anyone if there is tax evasion though.
Convenience: Again the fund scores high on convenience. As a savings tool, it is incomparable in terms of the flexibility of payment and quantum. We can make up to 12 contributions per year. Each contribution can be as low as Rs 100 subject to a minimum of only Rs 500 per year.
There has to be atleast one contribution per year. In case no payment could be done for a whole year, there is a charge of Rs 50 when the next investment is made. The objective is to make savings as comfortable and convenient to the poorest of investor as imaginable.
The limitation is that the fund is yet to go online. So we have to carry our passbook and also face a queue to make the payment every time.
Usually, companies issuing dividend stocks that yield high dividends are sound, have high cash reserves and do not depend on large capital investments for their growth.
Hence, the growth of these companies is steady and exposed to only very low downside risk.
You can buy dividend stocks if your risk appetite is low and you want a regular stream of income. For example, historical data shows that till March this year, the markets witnessed a slump in the stock prices thanks to the global economic slowdown.
This pushed up the dividend yields and consequently the demand for dividend paying stocks among the investors.
Further, the prospects of getting at least the dividends even when the markets are in red proves to be a convincing point for the investors to choose high dividend paying stocks in place of growth oriented stocks.
What are growth stocks? Growth stocks are for those aggressive investors who have a higher risk appetite. Growth stocks are considered more lucrative when the markets are enjoying an upward rally.
For instance, the last six months has been good for the equity markets pushing up the demand for growth stocks. The Sensex has grown by leaps and bounds adding nearly 100 percent to its value since March. It has gone to breach the 17,000 points mark. Some experts feel that growth stocks could give better returns during such buoyant market conditions.
Difference between dividend stocks and growth stocks
Growth stocks are better for aggressive investors hoping for better returns in the long run whereas dividend stocks are for the safe ones as these stocks have limited downside risks and ensure a regular flow of income.
That said the decision to go for dividend stocks should be backed by a careful analysis of the basic strengths of these stocks, the present performances and future prospects and the history of dividend yields and dates. Also, historical data has shown that investing in high dividend stocks has been successful for long-term investors.
Strategy to balance the two
Some experts suggest that the investors can adopt a strategy wherein he can capitalise on the current market rally that is likely to continue for some more time and book profits on counters that could give between 15 to 25 percent returns and slowly shift to high growth stocks later.
There is also a contra suggestion from another section of experts who suggest building a mixed portfolio of 40 percent growth stocks and 60 percent dividend stocks so as to get the best of both worlds.
Sectors like cement, banking and others are safe bets considering the fiscal year 2011 forward price to earnings ratio or simply P/E. Also, the present healthy market conditions since March this year has been mainly due to the performances of sectors like automobiles, banks, FMCG, healthcare, metals and IT.
However, the markets have seen underperformances from sectors like capital goods, oil gas, realty and other infrastructure related sectors.
When should you buy both these types of stocks?
There are mixed suggestions from experts about buying dividend stocks in the present market scenario.
Some experts feel that the valuations has gone too far due to the abundant FII inflows and hint at waiting for a correction in the Sensex up to 600-800 points. However, there is another opinion that endorses dividend stocks for their low downside risks and regular income stream.
Mutual funds work in a different way and choosing dividend or growth options do not necessarily signify that the mutual fund will invest accordingly.
Choosing to invest in dividend stocks will yield regular inflows of money while investing in growth option will get the investor a lump sum amount on the sale of units. However, the returns will be similar in both the stocks.
Hence, the risk appetite of the investor and his investment goal will alone should be left to decide on choosing the right investment option.
Bank deposits are most sought after for this purpose. They give a stable and fixed return on the invested money. Traditionally, the interest rate is fixed during the tenure of the fixed deposit. Some banks now-a-days have gone for the reduction in existing bank deposits too, when the market interest rates come down.
The income comes to us in the form of "interest" for the deposit amount. The principal (initial amount invested) is returned back to us at the time of maturity. There are options to receive the interest on a monthly/ quarterly / half-yearly or yearly basis. In case we do not need the interest to come to us during the term of the deposit, we can opt for the cumulative deposit option, where it is credited to the deposit and earns additional interest. Interest is generally compounded on a quarterly basis.
The historical average return from fixed deposits in India is approximately 8 per cent for long term deposits (5 years). The highs and lows have been in the range of 13 per cent to 4 per cent.
Capital appreciation
Capital appreciation does not apply to bank fixed deposits. Only the principal invested is returned back at the time of maturity.
Risk
Perhaps the main reason for investment in bank deposits is safety of the principal. The capital (only upto Rs100,000 though) has the highest safety compared to any other investment as it is guaranteed by the Deposit Insurance & Credit Guarantee Scheme of India. All banks operating in India are covered under this scheme.
More than this guarantee, the close monitoring that RBI has on all banks in India is a big advantage to the safety of the investors in fixed deposits.
The risk faced when investing in bank deposits is the interest rate risk. This is associated with the lost opportunity to invest in an instrument that has a higher return. Getting out of a fixed deposit can be costly (up to 1 per cent of the principal), when we exit prematurely. So we may have to forgo potential earnings when the interest rate has risen only by about 1 per cent.
The highest risk faced with fixed deposits is the effect of inflation. The real return after adjusting for inflation is very less or sometimes negative for fixed deposits of banks. This is a big burden, particularly for retired people, who have invested their retirement proceeds to get regular income. Their income may be regular and steady but the money's worth keeps going down during the tenure of the fixed deposit.
Liquidity
Bank deposits have good liquidity. They can be closed and the principal withdrawn within a few hours in some banks to a couple of days in others.
The other option is to take a loan on the fixed deposit. Banks lend upto 90% of the principal of the deposit. Interest charged for this is only about 1 to 2 per cent and only for the period that we have used the cash (The feature works like an over-draft against the fixed deposit).
Tax treatment
Bank fixed deposits are not tax efficient. The interest is taxed. Also there is no benefit from making the investment.
There are the 5-year bank deposits (tax saving) that give benefit under section 80C of the IT Act. But the benefits such as partial withdrawal or closure, and loan facility are not available. The deposit rates are also lower compared to the normal fixed deposits. This effectively negates the tax saved.
Convenience
This is pretty high with bank deposits. The investments can start from very low amounts (Rs 100 in most cases). There are no upper limits for investment. However, investments above Rs 50,000 will require your PAN card.
For a regular saving for a short period (up to 2 or 3 years maximum) the recurring deposit option can be made use of. Most banks offer standalone deposit accounts, though some may ask for starting a linked savings account.
The deposit periods can even be for very short periods starting from 15 days. This helps us to temporarily park funds before we could decide on an investment or an expense (choosing the wedding ring or buying a car for example.)
Fixed deposits can also be linked to savings accounts of banks in the form of a sweep-in-deposit. This gives the benefit of higher rate of return (when money is in excess) and flexibility to use the money when required.
In conclusion
The bank deposit primarily serves us to preserve capital. Banks now-a-days have added a lot of additional benefits to the traditionally benign service. Retired people could make the best use of this avenue for securing a fixed and steady income.
The caution is not to use the fixed deposit as a long term investment avenue. The reason is that the real return is very less when adjusted for inflation. The tax treatment of the interest also eats into the returns.
Debt mutual funds invest in debt instruments like government bonds, fixed deposits and approved private deposits. There are rating agencies that grade the debt instruments. Based on the fund philosophy, the fund manager will choose the instruments with different risks. Current income The debt mutual fund is primarily focused on getting a regular return. The investments of the fund are in deposits/bonds with different maturing tenures and different interest rates. We need to take care to match our time frame for investment to the time frame of these. The current income from these funds will be in the range of 8 to 10 per cent.
Generally, the current income is received format the debt mutual funds in the form of dividend. Hence, this cash flow is tax free in our (investors') hands.
Capital appreciation
Through investing in debt instruments only, there is a possibility for capital appreciation in debt funds. This is a major advantage that we get from investing in mutual funds rather than directly in a bank deposit.
This capital appreciation is possible because debt instruments that mutual funds invest in are market tradable. Thus, when the market interest rates come down as in the current scenario, the debt mutual funds get much higher bond yield.
The average return from the top 15 debt mutual funds in the last one year has been 25.96 per cent.
Risk
When the interest rates go up in the general market, the bond yield comes down, leading to capital erosion when debt instruments are traded. This can lead to very low or even negative returns from debt instruments.
So no financial tool can be said to be risk free. However in the short term, debt instruments are a good place to preserve capital.
Liquidity
Debt funds have high liquidity. They can be converted to cash between 2 to 4 days. The high liquidity and conservation of capital are key benefits for temporary parking of funds. Many companies make use of these features for the cash management of their corporate funds.
Tax treatment
Debt mutual funds like the debt instruments are taxed higher then the equity mutual funds. The short term capital gains are taxed at 20% and the long term capital gains tax is 10%. The tenure for long term capital gains is an investment period of over 1 year (365 days). (Similar to equity mutual funds)
Convenience
Like any mutual fund, the debt mutual fund also gives the 4 conveniences:
Convenience of knowledge Convenience of time Convenience of small investments and Convenience of payment frequency
Summary
Debt mutual funds score better than the debt instruments directly because of the tax benefits that we get from their dividends compared to interest from the debt instruments.
Preservation of capital is a major advantage that we get from the debt mutual funds. The potential for capital appreciation and higher returns that the traditional debt instrument can be maximised from these funds.
By nature of their investments and the tax treatment, these are for investment for the short term only.
Kevin owned a company offering online marketing opportunities for multinational companies. The demand for such a service was huge. However, owing to small size of his company he was not able to meet the rising demands of his customers.
This is when Sameer, the CEO of another company, providing a similar kind of service albeit with their focus on other services, and an acquaintance of Kevin stepped in to help him out.
Sameer's company provided some strategic investments to Kevin's company, which enabled Kevin's company to grow and expand its business offerings.
This is just half the story. Most of us do not know what strategic investments are and how they work. We also do not know how it benefits a company. Let's try and understand the basics of strategic investment.
What is strategic investment?
The term 'strategic investments', applies to two different ways of investment in the financial world. The first is when an individual or a company invests with the goal of generating safe, steady returns, usually with the advice of a consulting company, which keeps up with trends in the market and addresses the needs of the customer.
In the second instance, it applies to a company's decision to invest in another, smaller company, usually a startup, with long-term strategy in mind, rather than simple profit. We would be taking a closer at this aspect of investment.
Why is strategic investment done?
Strategic investments are often used to raise capital and credibility for new companies which are struggling to make their way in the market. Larger companies make strategic investments in smaller ones for an assortment of reasons:
• The investment is made because the smaller company makes similar products • The smaller company may eventually become a client of the big company • The smaller company might be working on new and innovative technologies and ideas
Wouldn't an acquisition of the smaller company be better?
Industry experts disagree. For the smaller company, the 'strategic investment' arrangement is often beneficial as it allows the company to remain autonomous, and it encourages other investors to get involved, since they believe that they may profit from their investments.
Larger companies also benefit from these arrangements because they carry less risk than acquisitions, allowing the bigger company to receive benefits from the smaller company when it does well, or to jettison the investment if the situation does not work out.
How does it work?
Strategic investment begins with identifying and evaluating various projects and making a selection that is likely to boost the company's competitive advantage.
In a strategic investment, the investor generally acquires common or preferred stocks in the target company. A loan may also be taken for acquiring the debt securities of the target company.
Moreover, the two companies may enter into supply and sourcing contracts, technology-sharing agreements or research and development agreements.
They may also form separate, joint-venture entities for engaging in specified businesses. A strategic investment typically influences what a company does (what products/services it offers), where it does it (the locations of its operations) and/or how it does it (processes and practices).
What are the benefits and risks involved?
Some of the benefits involved in strategic investing include the following:
• Strategic investment gives the investing company access to resources at a fairly low cost. For instance, when the targeted company's business is to develop technology, which the investing company find useful, the latter can make a strategic investment in the former company instead of developing its own technology. This will reduce the cost of developing that technology to a great extent.
• For the investing company, an investment is usually made in exchange for a share of control over the company. This allows the company to protect its investment, and to shape the direction of the smaller company's business and product lines.
On the flip side:
• The process of identifying and evaluating various strategic investment options could be significantly complex, time consuming and expensive.
• The larger company may express a desire to take over the smaller company at some point in the future, once the small company has proved itself viable and productive.
• If the smaller company fails to keep up to its agreement due to any reason, there is always the threat of the investment being pulled out.
Commodities can be fairly easy to trade because their value is usually based directly on supply and demand. When anything being traded is directly based on supply and demand, it's trend will be more predictable.
Forex can be rather easy to trade if you are using the right trading system or strategy, however, Forex can also be very complex if you are unsure about the system or strategy you are using.
Profitability
Commodity trading can be very profitable; however it depends on the amount of money you initially invest.
Currency trading can also be extremely profitable. With an average daily turnover of over $1.3 trillion, millions of people are earning their fortunes by trading in the forex market. Traders also have the option of trading with leverage. While trading with leverage is risky, it increases your potential to make money.
Consistency
Trading commodities can be consistent; however one of the only ways to predict future values is by utilizing market news and analytics.
The Forex market is overall more consistent than commodities. Forex trends can be predicted using set techniques. There are many trading strategies available on forums which can be learned and, best of all, proven Forex signal services offer traders the opportunity to trade with automated signals which tell them what to trade & when to trade it.
Predictability
Commodity prices can jump all around the board depending on demand, weather, crop percentages planted, oil found or not found, etc. This decreases the amount of change you can predict.
Forex markets are more predictable. Sure, currency prices can fluctuate and become volatile at times, but there is more of a pattern involved with Forex. There are more trends created in Forex that can be followed compared to the commodity market. This can make it easier to be consistent when trading Forex.
Finding Information
Information about trading commodities can be fairly difficult to find, especially information which is free. There is an ample amount of information available, but a lot of it is costly to obtain.
Forex information is much more accessible and most of it is free. You can also sign up for practice accounts at many forex sites and actually try your hand at forex trading without risking your capital. This makes for a great introduction to forex trading and lets you know what the possibilities are. These practice accounts in forex trading are typically not available in the commodities arena.
In conclusion
Owing to the above mentioned factors it is easy to see that the balance tips in the favour of forex trading. However, you must always make decisions based on your investment plans and goals. Reading up on more information would always help in taking the right decision.
Can the Internet which has flattened the world and blurred economic boundaries, lead the way in changing the way we work, live, play and learn? Wim Elfrink, chief globalisation officer and EVP, Cisco Services, posed this question to a full house on the first keynote of the first day of the Interop Mumbai conference.
Before the audience could react, Elfrink reeled off a couple of interesting statistics: 100 new one million-plus cities will be built by 2025 and over 500 million people will be urbanized over the next five years.
The impact - more traffic, more pollution, more congestion and more strain on infrastructure. Is there a solution in sight or we and our future generations doomed to suffer the effects of urbanisation?
"The Internet is quickly expanding from mobile devices and computers to become the 'Internet of Things,' as it begins to encompass not only the consumer and business Internet, but now the industrialisation of the Internet," said Wim Elfrink.
Elfrink believes that if cities plan well and intelligently use technologies which are available today - the social, economic and environmental effects would be monumental. Cities once networked will be able to not only intelligently deliver efficient services, but also significantly transform the quality of lives of its citizens by transforming functions such as healthcare, transportation and education.
In a live demonstration, Elfrink (who was sitting in Mumbai) demonstrated how a citizen could avail different services right from his home. As an amazed audience watched, Elfrink promptly attached an IP-aware blood pressure device to measure his blood pressure. His doctor, sitting hundreds of miles away in Bangalore, analyzed the readings of his blood pressure and promptly gave Elfrink appropriate medical advice.
The next call was made to the Regional Transport Office in Bangalore, as Elfrink's driving license was past its expiry date. Once the call was connected via a telepresence medium, the operator at the RTO asked Elfrink to stand in front of his web camera.
Once this was done, within a span of 30 seconds, the RTO issued Elfrink a new driving license. Cisco also gave a demonstration of the impact of telepresence in sectors such as education.
As cities became more intelligent and are connected on the same network infrastructure, every citizen is digitally available. This will have tremendous impact on the way service providers deliver services, and the way we citizens consume our services.
The world has changed with people changing from being cautious about their money to being better risk-takers.
Today, people are more willing to invest in different and new avenues for investments in the hope that their hunch would pay off. All these are aimed at achieving financial independence. Maximising returns and minimising risks is the foremost mantra for investors.
However, you cannot achieve both without doing a little bit of homework, which includes knowing where to invest and how much to invest. Some people look for new investment options while others stick to the time-tested investment options.
Two such time-tested investment options are stocks and bonds. You may know what stocks and bonds are, but you also need to make a choice about which option to focus more on in your portfolio.
This article will help you to understand the basic pros and cons of investing in stocks or bonds and help you make a choice.
Bound to the interest rate - Fluctuation in the values of the bonds occurs depending on the interest rate of the general economy.
For instance, if you have a Rs 1000 bond, which pays the interest of 5 per cent yearly, you can sell it at a higher face value provided the general interest rate is below 5 per cent. And if the rate of interest rises above 5%, the bond, though it can still be sold, is usually sold at less than its face value.
Fixed rate of return - Unlike stocks, you will not directly benefit from the success of the company or the amount of its profits. Instead, you will receive a fixed rate of return, known as the 'coupon rate' on your bond.
Safety of the investment - Due to the fixed rate of return, whether the company is wildly successful OR has an abysmal year of business, it will not affect your investment. Your bond return rate will be the same. However, there is also the possibility of the principal investment amount NOT being paid back to you.
Obviously, this risk can be somewhat controlled through the careful assessment of the companies or institutions that you choose to invest in.
Maturity dates - Once a bond hits its maturity date, the principal amount paid for that bond is returned to the investor. Different bonds are issued different maturity dates. Some bonds can have up to 30 years of maturity period. Therefore, liquidity could be a concern.
Risk versus return - If you're willing to take a greater risk for better coupon rates, then you would probably end up choosing the companies with low credit ratings, companies that are unproven or unstable.
Keep in mind, there is a great risk of default on the bonds from smaller corporations; however, the other side of the coin is that bond holders of such companies are preferential creditors. They get compensated before the stock holders in the event of a business going bankrupt.
So, for less risk, choose to invest in bonds from established companies and if you have bigger risk appetite, choose to invest in smaller, unproven companies.
Investment risks - As with bonds, you can decrease the risk of stock trading by choosing your stocks carefully, assessing your investments and weighing the risk of different companies.
Value fluctuation - Stocks worth is based directly on the performance of the company. If the company is doing well, growing, and attaining profits, then so does the value of the stock. If the company is weakening or failing, the stock of that company decreases in value.
There are various ways in which stocks are traded. In addition to being traded as shares of a company, stock can also be traded in the form of options, which is a type of Futures trading. Stock can also be sold and brought in the stock market on a daily basis.
The value of a certain stock can increase and decrease according to the rise and fall in the stock market. Because of this, investing in stocks is much riskier than investing in bonds.
In conclusion...
Both stocks and bonds can become profitable investments. But it is important to remember that both options also carry a certain amount of risk. The key to wise investing is always good research, a solid strategy and guidance you can trust.
Have you installed any downloaded anti-virus software on your computer? Check it out, it could be a fake one as cyber security experts have warned that over 40 million users worldwide have been tricked to buy such malicious software.
According to security experts at Symantec, web users generally get lured by cyber criminals to download and install fake anti-virus software on to their machines, believing they're protecting their PCs from hackers.
But actually, the criminals, who earn more than 750,000 pounds a year from the business, provide themselves a "back door" access into the machines via the software, The Telegraph reported.
Once the malicious software was installed, it forces users to unwittingly share their credit card and other financial details with fraudsters, said experts at the California-based software firm.
They have identified more than 250 versions of this software, called as 'scareware', and estimate that around 40 million people worldwide have fallen victim to these scams last year.
To intimidate and trick web users in to buying such software, Symantec said, the vendors go to great lengths.
They use pop-up adverts, which look similar as the alert messages from known and reputed anti-virus companies, to lull the users into a false sense of security. Such messages warn users that their computer has been compromised and is at risk unless they immediately install tools to protect it.
"Lots of times, in fact they're a conduit for attackers to take over your machine," said Vincent Weafer, Symantec's vice president for security response.
"They'll take your credit card information, any personal information you've entered there and they've got your machine," he said.
Hackers with always-on remote access to a machine could use that connection to harvest details of bank logins or other security codes, or even pull the computer into a giant 'botnet', a network of compromised machines that send out spam messages, or help to propagate the spread of viruses, unbeknown to the computer user, Weafer said.
"In terms of the number of people who potentially have this in their machines, it's tens of millions," he said.
Security experts also warned computer users not to buy anti-virus or security software from unsolicited pop-up adverts.
It is always better to buy those software directly from authorised company shops or from their official websites, they advised.
The following are the basic types of mutual funds, classified on various criteria:
According to Maturity
Open Ended Funds
- Open ended funds have two main characteristics. First, they are purchased from theasset management company (AMC) itself, and not from the secondary market. Secondly, they have nofixed maturity period.
Closed Ended Funds
- Closed Ended funds are issued in a fixed number of shares(or units) in an initial public offering. In addition, they have a specified maturity period, mostly between three to fifteen years. You could subscribe to the shares during the period of the IPO, but if you want to purchase them afterwards, you would have to go to the secondary market.
Acording to Investment Objectives
Growth Oriented Funds
- These funds aim to increase the amount of funds invested, i.e., the main aim iscapital apreciation. They invest in the equity stocks of fast growing companies. The risk level associatedwith these funds is the highest.
Income Funds
– These funds aim to provide a regular stream of income to the holder. They invest in a mix of dividend paying stocks, preferential shares, debentures, bonds and money market instruments.
Balanced Fund
- A balanced fund is usually the mixture or hybrid of the growth and income fund. They seek to provide the best of both the worlds, that is, capital apreciation with a regular income.
Liquid Funds
– Liquid funds aim to provide you with liquidity, at the same time ensuring that you get ahigher return on your funds than the ordinary savings account. These funds funds invest in short-term debt instruments, which can be redily redeemed within a peirod of 24 hours.
Specialized Schemes/Funds
There is a wide range of funds that are oriented towards a particular market or instrument or anobjective. These funds can be termed specilaized funds.A few examples are as follows:
Index Funds – An index funds pegs itself to a aprticular share index, e.g., the BSE or the Nifty. It invests its portfolio in the constituent stocks of the index in exactly the same proportions. It seeks to replicate the returns of the index.
Tax Saving Funds – A tax saving fund (or an Equity Linked Savings Scheme, or ELSS) is especially focused on saving taxes under the releveant tax laws. Thus, you get double benefits, tax savings, as well as returns on your investments.
Gilts Funds – As the name indicates, gilt funds invest in gilts, or selcted government securities. Therefore, they assure a very high degree of security, although the returns are on the lower side.
Sector Specific Funds – These mutual funds schemes invest in specific sectors or segments of theeconomy. For example, a real estate fund or an infrastructure fund.
Country/Market Specific Funds - Do you want to invest in the US economy? It may be diffiult otherwise, but a US oriented fund may provide the answer. Or perhaps you may like to invest in the emerging economies of the world? Well, then try the emerging markets funds!
A mutual fund is one of the most potent investment options. It provides a viable investment avenue for the entire range on investors, from the discerning millionaire to the humblest of the investors. Though this tool of investment conevenience has been around for many years, it has gained currency and popularity only in the recent past. Due to its inherent advantages, the mutual fund has become the darling of investors and markets alike. In India, we have seen a vibrant market evolve over the years, and hundreds, maybe, thousands of different funds are actively traded in specialized markets. The funds have become the primary movers and shakers of the market, with huge pools of money at their disposal.
Though the term "mutual fund" has become the part of popular lingo, yet very few people actually know the fundamentals of a mutual fund. This article is an attempt to explain the basics of a Mutual Fund, in as simple a way as it is possible. So, how is a mutual fund defined? Put simply, a large number of small investors mutually pool their money into a common fund. The collective corpus is then used for investment in suitable opportunities. Why is the money pooled or collected? Simply because it is sometimes better to invest a substantial sum of money to get the most out of an investment. It may be out of reach of most but the biggest of investors. The mutual fund, therefore, combines the money from numerous investors to give them the benefit of such investments.
Chief Characteristics of a Mutual Fund:
The following are the chief characteristics or features of a mutual fund:
1) The fund forms a pool from the money collected from the various investors. This pool is theninvested, and the profits (or losses) are shared in the ratio of the amount invested (minus anyadministrative fee).
2) The shares (or units, as they are called) of a MF are not available in the secondary market, neither can they be purchased from another investor. They have to be purchased from the fund itself.
3) The units can be sold back to the fund (directly, or through a recognized broker). This is calledredemption.
4) A separate legal entity (called the Asset Management Company, or the AMC), is formed to managethe investments.
Why Invest through a Mutual Fund?
When there are a range of options that are available to a potential investor, why should an investor park her hard-earned money with a mutual fund? In other words, what are the advantages of investing through a mutual fund? Well, the advantages of investing through a mutual fund can be briefly stated as:
1) Opportunity:
The MF provides an opportunity of investment to an investor, which might have not been availableotherwise. For example, an investor in India will find it extremely difficult to directly invest in Europeanmarkets. She can route her investment through a MF which invests in European markets.
2) Diversification:
Proper diversification is a basic tenet of a good investment. For a small investor, diversification is ratherdifficult since the corpus of funds is small. A mutual fund readily provides this opportunity.
3) Professional fund management:
The funds are managed by highly trained and professional fund managers, who bring a lot of knowledgeand expertise to the table. In this way, their expertise is available even to the humblest of the investor.
4) Convenience:
This is an important factor, since a large number of people run away from investments simply becausethey find them cumbersome. An investment through a mutual fund is highly simple, convenient and easily monitored, without the need for significant technical knowledge.
5) Liquidity:
Again, a significant advantage of a MF is that the investments are very liquid. The units of the MF can be easily redeemed through the fund itself or an authorized broker. It does take much time or formalities to get this done.
6) Low Cost:
A very nominal amount can get you started on the road to succesful investments. This amount may be sometimes as small as Rs. 1000! The amount of other costs such as administrative fees is also very small.
7) Variety:
You can get access to a whole gamut of investment options which cater to your individual risk and return profile. For example, you can chose to invest in high growth, stock-based funds, or you can choseto be consercvative with bond funds or money market funds.
Here, it must be stressed that not all of the above advantages are exclusive to Mutual Funds alone. Infact, these davantages are the hallmarks of any good investment. Yet, one can safely say that with all these advantages, the mutual fund is one of the best investment options available to the investor in today's markets.
Follow the below 7 simple steps to become a successful investor .. Read on
Start Investing
This may sound too simplistic, even stupid, but the first step in successful investing is getting started! Most of us found this the biggest hurdle to get over. We keep putting of investing till we start earning a little more, or from the next year, or…the list of excuses is too long to mention. Do not wait, start investing NOW!
Invest Regularly
This is a natural corollary of the first step. When I say start investing now, I certainly do not mean that you stop there. The trick is to keep up the good habit. Keep investing regularly, preferably every month, even if you are are left with just Rs 1000 to invest.
Diversify
When the wise man (or was it a woman?) asked you not to keep all your eggs in one basket, he (or she) probably knew what he (or she) was talking about! In the context of investing, this would mean that you should not invest in just one company, or a single stock, or only stocks for that matter. Maintain a well diversified portfolio, which has a healthy mix of growth, safety and liquidity.
Do Not Over-Diversify
This may sound contradictory to Step 3, but it is not. It just means that excess of everything is bad – even diversification should be practiced in moderation! First, you will be able to keep track of your investments easily, and secondly, you would be able to achieve the critical mass in instruments of your choice.
Think Long Term
Regular investments and diversification can show there effects only in the long term. So, prepare yourself for the long haul. If you are planning to reap a windfall in three months time, you are thinking about speculation, not investment. Do not get in the habit of checking your portfolio every hour.
Review
Keep reviewing your investments periodically. It will help you to determine any laggards or star performers in your portfolio. It will also help you to make the necessary course corrections to get the maximum returns in a safe and convenient manner.
Be Flexible
Though it is a good idea to persist with the investment methods you have chosen, it is an absolutely bad idea to fall in love with them. If your review has convinced you that you need to get out of a particular exposure, get out at once. If you are convinced about the merits of a promising investment, go for it. Just do not do it VERY often.
The biggest secret of successful investing is its simplicity. The above seven step process is extremely simple, yet it is simplicity that beats most of us. Follow these seven steps diligently, and you will definitely become a successful investor.
How do you decide whether to use your debit card or your credit card when you pay a bill at a retail shop, restaurant or any other establishment? Do you know what the better thing to do is? Here we give you some simple background to help you decide which form of plastic is best.
Debit cards are linked to your current or savings account. When you pay using your debit card, you are using your own money to pay. Credit cards, on the other hand, are a quick way you can get a loan from the card issuer to facilitate your purchase.
Rather than the amount being debited from your account immediately, you get a statement at the end of the month, and are expected to settle your outstanding balance within the specified deadline, failing which you are liable to pay very expensive fees and penalties.
Personally, we have a preference for debit cards because you know your spending limits and you are likely not to stretch yourself too far - you are forced to limit your spending to the amount of funds that you have in your account.
However, there might be times when you don't have enough money in your account, and need the short-term funding to make a purchase before your paycheck. At such times, using a credit card to pay is justified. But you must understand that the outstanding amount must be paid in full and on time when your statement arrives.
Just because you have spent on your credit card, does not mean that you don't have to fund the payment. Somebody gave you a loan for it, and you must pay the loan back. If you don't or you get delayed, the lender will charge you rates of interest that can be close to 40 per cent per annum. Compare that to a personal loan of around 18 per cent or home loans at 10 per cent and you know that spending on credit cards can be very expensive.
Credit cards occasionally come with attractive features like loyalty points for rupees spent on the card and soft benefits available to card holders. However, these are worth nothing if you are in default of your repayments.
Remember, its prudent to live within one's means, and in that regard the discipline of spending using one's debit card is a good one. Use your credit card only when you are confident that you have the capacity to repay your dues.
The difference between saving and investmentcould be best understood by comparing them on different criterion in the following manner:
Objective
–
While saving is usually meant for immediate or short term needs, investment is done for needs whichhave a relatively longer time horizon. While the ultimate objective of investment is to attain significant regular income or capital appreciation for the investor, the maximum that savings could be expected to achieve is value retention by beating the inflation.
Time Frame
-
As follows from the first point, the time frame for savings is much smaller than that of investments. The thumb rule is that any objective less than 5 years should be completed from savings, while anything with a longer time frame should come within the purview of investment.
Methods/Instruments Used -
Usually, savings are in the form of cash, or highly liquid instruments such as savings accounts or money market instruments and T-Bills. For investments, instruments such as shares,bonds and mutual funds are preferred.
Ownership Rights
–
Some investment options, such as shares, give you an ownership right in the company. For example, ifyou purchase 1000 shares of SBI or ICICI Bank, you become a part owner of the bank. However, you would not get the ownership rights even if your current account in the bank amounts to Rs 10 lacs.
Form of Profits –
The profits (or returns) from investments can take various forms – interest, dividend or capital gains.The returns from saving instruments would usually be in the form of interest. Of course, cash would give you no returns; on the contrary, it would decline in value (due to inflation).
Quantum of Profits –
As mentioned in the last article on difference between savings and investment, the highest objective thatsavings could achieve is that they beat the rate of inflation. As such, the rate of returns on savingsaccount is quite modest. The returns from investments (especially over the long term) are significantly higher. Of course, theoretical returns from investment could also be much less, or even negative, whichbrings us to the next point of distinction, which is…
Level of Risk Involved –
The level of risk associated with the saving instruments is almost negligible, especially since the bankdeposits are insured to the extent of Rs 1 lac. Conversely, there is always a level of risk associated withinvestment instruments, which may vary with the different varieties of instruments. While some investments are highly risky, some are less so. No investment, I repeat, NO investment is actually free from all types of risks.
Thus, it is obvious that saving and investments are two different concepts, though they are quiteinterrelated and complimentary, like two sides of the same coin. It is important to understand the peculiarities of both the concepts, so that there is no confusion between the two, and the investmentplan is adjusted to include both of them.
Easier said than done! After all, this is the age of consumerism! But remember, the money that you are spending is the money you will NOT be able to save. This certainly does not mean that you turn yourself into a penny-pinching miser. It just means cutting back on unnecessary spending. what is unnecessary for you is a decision that you will have to make yourself.
2) Have a Vision –
This tip works on two different levels. First, it means that all saving should be directed toward a well defined end – even if it is as simple as purchase of furniture. On another, higher level, you can visualize the convenience, the ease and the independence that you will definitely achieve if you save judiciously.
3) Get Rid of Debt –
Well, some of debt may be necessary, and not very easy to get rid of – for example, your home loan. But it is certainly a good idea to close smaller loans such as personal/small ticket loans, which carry a high rate of interest and eat into your income. And the first item of debt that needs to be tackled is your creditcard balance. Most credit card companies and banks charge 1.5 % to 3% on the outstanding balance, ona MONTHLY basis. If you invest a sum of money at this rate, you can double your investment in less than three years!
4) Automate –
The current state of technology allows us to automate many of our money related tasks that could help a lot in saving. For example, you can set up a "sweep in" facility that is offered by most of the banks. This facility essentially involves setting a limit in your savings acount, and any amount that accumulates over that limit is automatically transferred to a higher-interest account. Neat, isn't it? In addition, you canalso automate your credit card payments and phone bill payments.
5) Consolidate –
Consolidation of your personal finances can also help you a lot in saving money. For example, if you have more than one credit card, and outstanding balances on all of them, you can use the balancetransfer facility to consolidate your debt into a single card (choose a card with the lowest interest rate).And why would you need five savings accounts, especially if all of them entail a minimum balance? One, or two (if needed) accounts will suffice.
6) Make a Budget -
A personal budget helps to put your personal finance in black and white, and provides valuable perspective. A personal budget can help you to plan and prioritize your expenses, and helps toinculcate the all important financial discipline.
7) Reward Yourself –
In a sense, this point is derived from the first tip – which says that you should cut back on your consumption. That does not imply that you should start living BELOW your means. Whenever youreach your savings milestones, reward yourself. Go out on a holiday, or buy a gift for someone (oryourself, if you please!).
The above seven tips can go a considerable length in helping you to make saving a painless experience.
Yeah mistakes do happen!! And most of you must have heard the phrase that "a person who says I have never committed a mistake, has actually not done much". This is valid to be said the least. We many times also assume that the mistakes that are committed by the successful people are committed by them in their failed attempts to do something. Yeah! That is true to a large extent, but then it can well be the case that these successful people might also commit a mistake, big or small, in the most successful or magnificent thing that they have ever done. And that doesn't take anything away from them. Only what I want to emphasize is you do not need to be flawless to succeed.
Why am I talking about mistakes all of a sudden? Okay guess what is being one of the most wonderful and significant invention in our time. Hint, it changed the world in such a manner that it would never be the same again. Another hint, it redefined the way we communicate, the way we store information, the way we travel etc. You can say that it has changed a lot many things to ways it never used to be. And the list is endless. If someone guessed telephone or computer or mobile phones, I would say, well tried. But the thing I am talking about is the "Internet". And the person, Timothy Berners-Lee, who is responsible for the invention of World Wide Web i.e. the famous triple w, made a fascinating revelation and confessed about a mistake that he committed. People who follow the news might already guess what I am talking about.
He was speaking on the future of technology at a symposium organised by Finland's Technology Academy Foundation, and hosted in the Finnish Embassy in Washington DC. He said "When I designed the URL, this thing which starts http:// , the slash was to indicate we're actually starting at the top, not starting down at the next slash. Really, if you think about it, it doesn't need the // . I could have designed it not to have the // . Boy, now people on the radio are calling it 'backslash backslash'." In simple terms what it means is that according to the inventor of "www" the "//" is not at all required. It came in due to a small mistake. Check this video for further details.
Yeah a small mistake but it did have big implications and that is also what Tim referred to during the interview. And he is correct in his assessment. Imagine the number of man-hours being wasted while typing those unnecessary "//" given that those might have been used gadzillion times by people. Going forward you might say what an useless waste of my effort, every time you type the two slashes. Then imagine the kind of resources that were being wasted while printing those unnecessary twins. And since we talked about printing imagine the amount of papers being wasted and the amount of trees that have been brought down. And if we can extend the thought a little bit more we can also say that imagine the kind of impact the cutting down of those trees might have in the global warming scenario. So, can we change it now. I am not sure of that, but even if we change it, it is going to have a huge impact given the kind or magnitude of change we are looking at.
Well all said and done it would be too harsh to curse Tim for this mistake and its implication. After all the internet is a gift to mankind in more ways than one and it has radically changed the way we do things. May be we can take it in our stride as the "cost that we pay for www" after all nothing is free in this world. And as we said in the beginning, don't be shy of trying things because of the fear of committing mistakes, as you saw sometimes the biggest wonders hide some really silly mistakes within them.
Construction company based in Osaka, Japan. The firm was founded back in 578. It ended its activity in 2007, being considered the oldest company in the world until then.
It was operated by the representatives of the 40th generation. Prince Shotoku was the one to bring the representative of Kongo family to Japan from Korea.
The event took place more that 1,400 years ago. The Kongo family was brought to construct the Buddhist Shitennoji Temple, which, by the way, still can be viewed today.
Throughout centuries, Kongo Gumi has taken part in the creation of many well-known buildings like the Osaka castle, constructed in the 16th century.
2. Hoshi Ryokan – founded in 718.
The firm's business deals with innkeeping. The company was founded in Komatsu, Japan in 718.
The firm is operated by the family's members, who represent its 46th generation. The legend states that the god of Mount Hakusan once visited a Buddhist priest and asked him to uncover a hot spring located underground in a nearby village. When he found the hot spring, the priest asked that his student, the son of a woodcutter, Garyo Saskiri, construct and run a spa on the spot.
Since then his family, who was known as Hoshi, have managed a hotel in Komatsu. The structure that stands today is able to house 450 people, in its 100 rooms. Each customer is treated as a privileged guest. In addition each customer receives a traditional Japanese welcome by being invited to a tea ceremony. Today its manager is Zengoro Hoshi.
4. Fonderia Pontificia Marinelli – founded in 1000.
This bell foundry was set in Agnore, Italy in 1000. Agnore is a small town located high in the Appenine hills. The firm's managers still apply the same techniques of using wax as the firm's founders (a wax "false bell" is covered with the actual thing).
The bells of Fonderia Pontificia Marinelli are toll worldwide, in: New York, Beijing, Jerusalem, South America and Korea. The family business currently employs 20 people. Among these employees there are 5 members of the Marinelli family.
Today the firm is managed by Pasquale Marinelli. In 1997, the firm opened its museum, which shows the work of Pasquale's brother, an Italian sculptor Ettore Marinelli.
5. Barone Ricasoli – founded in 1141.
The firm produces wine and olive oil. It was founded in Siena, Italy back in 1141.
For the first time the land was given to the Ricasoli barons by the Republic of Florence. The land today serves as the family's Brolio Estate, occupying around 3,600 acres.
The central activity of the family is focused around wine production. Ricasoli has only 26 acres used for the cultivation of olives.
This family business makes paper. It was founded in Amvert d'Auvergne, France in 1326. The firm has a longstanding reputation for producing high-quality papers.
This fact led to a number of high-profile jobs. It is worth mentioning that the firm has provided paper for limited-edition works made by Braque and Picasso.
This business is represented by a family of goldsmiths. The family founded its business in 1369 in Florence, Italy.
Florence was the destination of Jacopus Torrini when he decided to move away from his native village of Scarperia and create armor for Florentine knights. Later the workshop of Torrini developed into a goldsmith, where the master made jewels along with other objects of high value.
One of the family's most valuable creations is its mysterious "Oro Nativo" method of manufacturing. This method refers to the process of working with gold while maintaining its most natural color.
The Florence-based company works in the field of wine production. It was founded in Florence, Italy in 1385 and is currently operated by the representatives of the family's 19th generation.
Ever since Giovanni di Piero Antinori stuck together with the Florentine Guild of Vintners, the Italian family has been making high-quality wine. Today a system of vineyards located in Italy, United States, Hungary, Malta and Chile is under control of Marchese (Count) Piero Antinori and his 3 daughters.
The company's Chiantis and other classics are highly appreciated by consumers and wine critics worldwide. Since 1506 the firm has be located in a Florentine palazzo.
Below there's a list of other ninety companies that were founded several centuries ago.
11. Camuffo Shipbuilding. Based in Portogruaro, Italy. Founded in 1438 18th generation 12. Baronnie de Coussergues Wine business Based in Montblanc, France. Founded in 1495 16th generation Official website: www.henokiens.com/index_baronnie_gb.php 13. Grazia Deruta Ceramics. Based in Turin, Italy Founded in 1500 14. Fabbrica D'Armi Pietro Beretta S.p.A. Firearms. Based in Gardone, Italy Founded in 1526 14th generation Official website: www.beretta.it 15. William Prym GmbH & Co. Copper, brass, haberdashery. Based in Stolberg, Germany Founded in 1530 Official website: www.prym.com 16. John Brooke & Sons Woolens. Based in Huddersfield, United Kingdom Founded in 1541 15th generation Official website: www.brookesmill.co.uk 17. Codorniu Wine business Based in Saint Sadurni d'Anoia, Spain Founded in 1551 Official website: www.codorniu.es 18. Fonjallaz Wine Based in Lavaux, Switzerland Founded in 1552 13th generation Official website: www.fonjallaz.info 19. von Poschinger Manufaktur Glassmaking Based in Frauenau, Germany Founded in 1568 13th generation Official website: www.poschinger.de 20. Hacienda Los Lingues Ranch Based in San Fernando, Chile Founded in 1575 15th generation Official website: www.loslingues.cl 21. Wachsendustrie Fulda Adam Gies Candles, wax figures Based in Fulda, Germany Founded in 1589 Maker of candles and wax figures still operated by the founding Gies family. 22. Berenberg Bank Banking Based in Hamburg, Germany Founded in 1590 Official website: www.berenberg.de 23. R. Durtnell & Sons Construction Based in Kent, United Kingdom Founded in 1591 12th generation Official website: www.durtnell.co.uk 24. J.P. Epping of Pippsvadr Grocers Based in Germany Founded in 1595 25. Eduard Meier Shoes Based in Munich, Germany Founded in 1596 13th generation Official website: www.edmeier.de 26. Toraya Confectioners Based in Tokyo, Japan Founded in pre-1600 17th generation Official website: www.toraya-group.co.jp 27. Tissiman & Sons Ltd. Tailors and outfitters Based in Bishop's Stortford, United Kingdom Founded in 1601 Official website: www.tissimans.co.uk 28. Enshu Sado School Ceremonial tea school Based in Tokyo, Japan Founded in 1602 13th generation Official website: www.enshuryu.com 29. Takenaka Construction Based in Osaka, Japan Founded in 1610 Official website: www.takenaka.co.jp 30. Mellerio dits Meller Jewelry Based in Paris, France Founded in 1613 15th generation Official website: www.mellerio.fr 31. Cartiera Mantovana Corp. Paper Based in Mantua, Italy Founded in 1615 Official website: www.cartieramantovana.it 32. Zildjian Cymbal Co. Cymbals Based in Norwell, Mass. Founded in 1623 14th generation Official website: www.zildjian.com 33. Kikkoman Soy sauce Based in Noda, Japan Founded in 1630 Official website: www.kikkoman.com 34. Sumitomo Corp. Conglomerate Based in Tokyo, Japan Founded in 1630 Official website: www.sumitomocorp.co.jp 35. Akerblads Hotel Based in Tallberg, Sweden Founded in 1630 21st generation Official website: www.akerblads-tallberg.se 36. Tuttle Farm Agriculture Based in Dover, N.H. Founded in 1635-38? 11th generation 37. Gekkeikan Sake Based in Fushimi, Japan Founded in 1637 13th generation Official website: www.gekkeikan.co.jp 38. Shirley Plantation Historical site Based in Charles City, Va. Founded in 1638 11th generation Official website: www.shirleyplantation.com 39. Hugel et Fils Wine Based in Riquewihr, France Founded in 1639 12th generation Official website: www.hugel.com 40. James Lock & Co. Hatters Based in London, United Kingdom Founded in 1642 Official website: www.lockhatters.co.uk 41. Barker's Farm Dairy and apples Based in North Andover, Mass. Founded in 1642 11th generation 42. G.C. Fox & Co. Shipping agent Based in Falmouth, United Kingdom Founded in 1646 43. R.H. Levey & Son Funeral services Stansted Mountfitchet, United Kingdom Founded in 1649 44. William Adams & Sons Potters Based in Stoke-on-Trent, United Kingdom Founded in 1650 12th generation Official website: www.thepotteries.org/potters/adams.htm 45. Ulefos Jernvaerk Metals, milling, forestry Based in Telemark, Norway Founded in 1657 46. Van Eeghen Trading company Based in Amsterdam, Netherlands Founded in 1662 14th generation Official website: www.vaneeghen.com 47. Schwarze & Schlichte Distillery Based in Oelde, Germany Founded in 1664 12th generation Official website: www.schwarze-schlichte.de 48. The Seaside Inn and Cottages Innkeeping Based in Kennebunkport, Maine Founded in 1667 12th generation Mason family Official website: www.kennebunkbeach.com 49. Early's of Witney Blankets Based in Witney, United Kingdom Founded in 1669 50. C. Hoare & Co. Banking Based in London, United Kingdom Founded in 1672 11th generation Official website: www.hoaresbank.co.uk 51. Firmin & Sons Ltd. Uniforms and insignia Based in Birmingham, United Kingdom Founded in 1677 Official website: www.firmin.co.uk 52. Viellard Migeon & Cie. Iron making Based in Forges de Morvillars, France Founded in 1679 Official website: www.vmchooks.com 53. Miller Farm Agriculture, timber Based in Frederica, Del. Founded in 1684 54. Gradis Corp. Wine trading Based in Bordeaux, France Founded in 1685 55. Toye, Kenning & Spencer Weavers Based in London, United Kingdom Founded in 1685 Official website: www.toye.com 56. Yamamotoyama Tea Based in Japan Founded in 1690 Official website: www.yamamotoyama.com 57. Delamare et Cie. Packaging materials Based in Criquebeuf-sur-Seine, France Founded in 1690 Official website: www.henokiens.com/index_delamare_fr.php 58. Nolet Distillery (Ketel One Vodka) Distillery Based in Schiedam, Netherlands Founded in 1691 Tenth generation Official website: www.ketelone.com 59. Folkes Group Real estate and engineering Based in Lye, United Kingdom Founded in 1697 Seventh generation Official website: www.folkesholdings.com 60. Berry Brothers & Rudd Ltd. Wine merchants Based in London, United Kingdom Founded in 1698 Official website: www.bbr.com 61. Shepherd Neame Brewer Based in Faversham, United Kingdom Founded in 1698 Fifth generation Official website: www.shepherd-neame.co.uk 62. Allandale Farm Fruit, produce, flowers Based in Brookline, Mass. Founded in 1700? Official website: www.allandalefarm.com 63. Farina Gegenüber Fragrances Based in Cologne, Germany Founded in 1709 Eighth generation Official website: www.farina1709.com 64. William Dalton & Sons Pest control Based in United Kingdom Founded in 1710 65. Cooke Farm Farm Based in Wallingford, Conn. Founded in 1720? 10th generation 66. Nourse Family Farm Agriculture Based in Westborough, Mass. Founded in 1722 Official website: www.noursefarm.com 67. Tissages Denantes Cloth Based in Grenoble, France Founded in 1723 68. Amarelli Fabbrica de Liquirizia Licorice Based in Rossano Scalo, Italy Founded in 1731 Official website: eng.liquirizia.it 69. Fratelli Piacenza Corp. Woolens Based in Pollone, Italy Founded in 1733 11th generation Official website: www.piacenza1733.it 70. Taittinger Champagne Champagne Based in Reims, France Founded in 1734 Official website: www.taittinger.com 71. William Clark & Sons Linen Based in Upperlands, Northern Ireland, U.K. Founded in 1739 9th generation Official website: www.wmclark.co.uk 72. Lyman Orchards Agriculture Based in Middlefield, Conn. Founded in 1741 Eighth generation Official website: www.lymanorchards.com 73. John Whitley Farm Agriculture Based in Williamston, N.C. Founded in 1742 Eighth generation 74. Boplaas Agriculture, orchards Based in Koue Bokkeveld, Cape Town, South Africa Founded in 1743 Ninth generation 75. Aubanel Publishing Co. Publishing Based in Avignon, France Founded in 1744 76. Fonderia Daciano Colbachini & Figli Bell maker Based in Padua, Italy Founded in 1745 Official website: www.henokiens.com/index_colbachini_gb.php 77. J.D. Neuhaus Hebezeuge Hoist manufacturers Based in Witten-Heven, Germany Founded in 1745 7th generation 78. Villeroy & Boch Housewares Based in Mettlach, Germany Founded in 1748 Official website: www.villeroy-boch.com 79. Zenith Pipe Company Tobacco pipes Based in Gouda, Netherlands Founded in 1749 8th generation 80. Parlange Plantation Farm Based in New Roads, La. Founded in 1750 Official website: www.pcchamber.org/parlange.htm 81. Marie Brizard & Roger International Distiller Based in Bordeaux, France Founded in 1755 Eighth generation Official website: www.marie-brizard.com 82. Joseph Drouhin Wine Based in Beaune, France Founded in 1756 Official website: www.drouhin.com 83. Franz Haniel Conglomerate Based in Duisburg, Germany Founded in 1756 Official website: www.haniel.de 84. Riedel Glas GmbH Glassmaking Based in Kufstein, Austria Founded in 1756 11th generation Official website: www.riedelcrystal.com 85. Lanificio Conte S.p.A. Woolens Based in Schio, Italy Founded in 1757 Official website: www.henokiens.com/index_lanificio_gb.php 86. Jose Cuervo Tequila Based in Tequila, Mexico Founded in 1758 Official website: www.cuervo.com 87. Waterford Wedgwood Crystal, china, & cookware Based in Dublin, Ireland Founded in 1759 Official website: www.waterfordwedgwood.com 88. Creed Perfume Perfumes Based in Paris, France Founded in 1760 7th generation Official website: www.parfumsraffy.com 89. Griset Foundry Based in Villers-St. Paul, France Founded in 1760 Official website: www.griset.com 90. Faber-Castell Writing instruments Based in Stein, Germany Founded in 1761 8th generation Official website: www.faber-castell.com 91. Moller Group Metal products Based in Bielefeld, Germany Founded in 1762 7th generation Official website: www.henokiens.com/index_moller_gb.php 92. Bachman Funeral Home Funerals Based in Strasburg, Pa. Founded in 1769 Eighth generation Official website: www.bachmanfuneral.com 93. Silca Keys & key cutting machines Based in Vittorio Veneto, Italy Founded in 1770 5th generation Official website: www.silca.it 94. Osborne y Compania Brandy and sherry Based in Cadiz, Spain Founded in 1772 6th generation 95. Editions Henry Lemoine Music publishing Based in Paris, France Founded in 1772 Official website: www.editions-lemoine.fr 96. Stuart Land Co. of Virginia Cattle Based in Rosedale, Va. Founded in 1774 8th generation 97. JB Fernandes & Sons Tools & ironwares Based in Lisbon, Portugal Founded in 1778 6th generation Official website: www.redcube.org/JBF 98. St. John Milling Co. Milling, farm products Based in Watauga, Tenn. Founded in 1778 6th generation 99. Ditta Bortolo Nardini Distillery Based in Bassano del Grappa, Italy Founded in 1779 Official website: www.nardini.it 100. Laird & Co. Brandy Distiller Based in Scobeyville, N.J. Founded in 1780 Official website: www.lairdandcompany.com