Young Investor

Things that could make 2012 incredible

Adarsh Gopalakrishnan | Updated on February 15, 2012 Published on December 31, 2011

Taking a break from the stock markets and making some purchases tax-deductible can make 2012 a dream year for investors.



Grounded, sober investment advice. That's what we try to offer you in Investment World. But just for the New Year, we decided to let our animal spirits loose and compile a wacky wish-list for the markets in 2012 that could make life a lot easier for all of us.

Write in with some of your own.

SHORT CIRCUIT

We now have upper and lower circuit filters on stocks; daily limits on how high or low a stock can go. But could SEBI do away with the upper limit, please?

We just hate that nagging feeling when a stock we buy soars the day after we picked it up only to have the exchange lock it at 20 per cent higher levels.

If the buyers want to pay more, let them! On the flip-side, we would like our losses limited with a circuit filter.

TAKE A BREAK

We think everyone could use a long break from the markets every year, so that they don't make hasty decisions. We had a full year of extended trading hours in 2011.

But where did a year full of 6.5 hour trading days take us? It hasn't made the brokers any healthier.

Here's a thought: Let's have a nice two-week long market holiday. You pick the dates. Maybe it can coincide with your kid's school holidays.

Not obsessing for two weeks over where our GDP is headed and whether the Ambani brothers are patching up will have minimal impact on our lives.

So relax and take some time away from your favourite TV anchors, business papers, trading terminals and hit the beach with the bottle.

INFORMATION OVERLOAD

We could do with less frequent and more meaningful data.

The government provides us with inflation data every week, the index of industrial production every month. Plus, there are quarterly results and company projections from 1,000 or so analysts.

But how about quality over quantity? Cut out the quarterly circus and have companies disclose balance sheets, cash flow and profit and loss statements every six months.

The company can also tell us how the business has done, how expansion plans are proceeding and all that jazz. Isn't every six months enough to revisit your investments? S

aves the investor a lot of trouble and lets the company focus on what's really important: business.

Same rule goes for the government. Let's give our friends at the MOSPI, NSS and other agencies more time to focus on collecting and disseminating quality data.

KA-CHING

India's tax laws are all wrong. They give you tax breaks for actually investing in various ‘instruments' and stashing away the cash.

Instead, wouldn't it be nice if we could get a tax-break on spending the moolah?

Most of us are itching to get that Galaxy note, a slick Apple Macbook air or a cool new Honda Brio.

And you know what would make us swipe our credit cards right now? Making all those purchases tax-deductible.

While it may not drag our country out of a slowdown, we can at least save a little cash and have some fun while feeling less of a pinch.

WE WANT MORE

What we are really rooting for and would also keep with the populist cause is a lot of tax-free fixed income options.

A lot more corporate bonds and infrastructure bonds to choose from. Sweeten that pot with tax-free status on the infra bonds. Hopefully the government can also throw in a few public sector offers to whet the equity investor's appetite.

ORE-DREAMS

Let's talk black rather than green, a chance to own coal, oil, iron ore and other stuff. Investor's who are not so keen on picking up shares in Coal India but yet love the prospects of coal, should have a chance to bet on it.

Yes, we hear you MCX, dear. But touch your heart and tell us that commodities are as easy to buy as stocks. No, we're not talking about you the-easy-to-buy and massively run-up Mr Gold.

LET'S RIDE

Here's a thought: Why can't the government consider lowering the taxes on importing fitness equipment? Especially on bicycles and other components? Let's get more people out on the road and cycling to work. Reduces traffic and adds exercise time.

WATCH OUT GUZZLERS

Let's link fuel prices to the size of the vehicle. The bigger the vehicle, the more you pay for you fuel. And since diesel and petrol cost almost the same to produce, let's sell them for the same price.

If we are worried about the farmers, we rather hand them the cash to buy diesel. We prefer this than subsidise the vulgar diesel Land-cruiser brigade.

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