MONEY

Choosing a Safer FD
The higher the return, the greater the risk. Follow this prime rule when investing in a fixed deposit (FD). A deposit offering, say, 14% interest or more annually seems a lot more attractive than a big bank's lowly 5%. But think again.
Understand that those who offer very high rates are only doing so because savvy depositors, banks and financial institutions don't trust them enough to lend them money like you would.

Other Points:
1. Your foremost concern should not be getting high returns. It must be about protecting your principal.
2. The Post Office FD scheme is absolutely safe and returns 8%. They're "still the best bet," says Outlook Money magazine.
3. If you don't mind some risk, choose a reputed company with at least an AA rating (high safety). And do some more research:
If the company's shares are listed on the stock exchange, see how it's doing. Battered down? (Bad sign.) Is it paying regular dividends? Is it very profitable? (Both good, if yes.) You can study the finances of listed companies at myiris.com.
4. Avoid traders, jewellers and other businessmen in your town who offer their own FD schemes. Many of them cheat or go bankrupt.
5. A safe alternative to FDs are the income schemes of mutual funds. Choose one that's been around for a while and has a good track record.
- Mohan Sivanand

E-Track Your Investments
For those who invest in stocks or mutual fund (MF) schemes, on the internet, ValueResearchOnline.com provides a convenient portfolio tracker. After registering-(it's free)-you have to enter all the stocks or MFs you own. At the end of each trading day, you get to know their market values and how much they have changed since the previous day.
This password-protected portfolio also provides such information as the daily highs and lows of any stock; net asset values of MF schemes; value of each stock/MF you own as a percentage of your total portfolio; percentage of your stocks in particular sectors (eg: technology, energy or textiles); percentage in small, medium or large companies. The site also saves your personal notes on any of the securities.
Click on the name of any stock in your portfolio and learn how many MF schemes have bought that stock. Or find out what investments make up any MF scheme you're interested in-important information for any discerning investor.

Securing Your Demat Account
Your demat account is generally secure, thanks to safeguards by depository participants (DPs). But fraud can't be ruled out. In mid-2001, Dr Jaykant Sangani, 70, a Gujarat surgeon, lost 2956 shares (of seven companies, then worth about Rs4.5 lakhs) from his demat account. Only after Ahmedabad's Consumer Education and Research Society (CERS) intervened were his shares restored in February 2002. According to CERS, a dishonest DP official had transferred the shares to another account for personal gain. So take these steps to make your demat account more secure:
- Even if you don't trade your shares, track your demat account frequently, as you would your savings bank account. Many DPs let you track your demat account anytime online. Printout and file all your DP statements.
- Always keep your client delivery instruction slips under lock and key. Using the slips, securities can also be transferred directly from your demat account to another account (without a broker or stock exchange) in "off-market" trades.
- Never keep signed instruction slips. Sign one only for a transaction.
- Hand the slips only to a DP official personally, or to your registered broker, at which time you must also obtain the broker's contract note.
- If you trade on-line, safeguard your password. Alpha-numeric ones (comprising letters and numbers) are best. Change the password regularly.  A Banknote Decoded
Ever wondered why currency notes are crowded with so many features? They help the Reserve Bank track printing errors and authenticate currency. Here's what many of them mean in the newer Mahatma Gandhi series of notes:

The Gandhi watermark and multi-directional lines in the watermark window:
Identification mark can be sensed by touching. Triangle for Rs.100; rectangle Rs.20; square: Rs.50, circle: Rs.500; diamond: Rs.1000. Helps visually impaired identify denomination

Security Thread (SC):
Semi-embedded and contains alternately inverted words 'Bharat' (in Hindi) and 'RBI'. Held against light, the SC becomes a continuous line. (To foil forgers, notes also have optical fibres all over visible only under UV light)

Number panels in fluorescent ink:
Latent image shows note's value in numerals. Visible with magnifying glass. Microlettering here contains value of the note and the letters 'RBI'. Printing here and some other areas is raised to help the visually impaired authenticate note.