10-02-2003, 10:03 PM
Hi Farhan!
Not at all, i didn't get offended in any way by your post. Just to let you prepare for such eventuality, "satirical" on this board means out right abusive ( but in a lighter vein).
1) Yes i am aware that capital gains are tax free in Pakistan. A big plus when compared with North America. Up untill recently, 3/4 of capital gains were taxable. Tax on dividends paid by individual is considered double taxation, for corporation has already paid taxes on these amounts. Mr Bush has passed a law reducing inclusion of dividends in income. But it has a sun set clause, make it a temporary measure. That is why i was wondering if any dividends were included in your projected returns. I also noticed that quite a few of the companies in Pakistan pay dividends on regular basis. This brings a fixed income nature to those stock investments.
2) In my question 3, what i mean was any mutual fund replicating the composition of KSE-100 (same stocks and same percentage). You can say if the fund is indexed to KSE-100. As you may know, S&P 500 is a bench mark for many fund managers. So if you want to buy such indexed fund, you can invest in all 500 of S&P-500 stocks without the expense and trouble. S&P-500 is traded as a contract in future markets and a synthetic version of it SPYDER is available as ordinary stock.
In my opinion, there is hardly any profession in the world (including the oldest one!!) that is not related to accounting. Some may say how it is related to religion. Strangely, the double entry accounting was invented by a catholic priest in Rome!!!!
Nice talking to you, we will be in touch.
Not at all, i didn't get offended in any way by your post. Just to let you prepare for such eventuality, "satirical" on this board means out right abusive ( but in a lighter vein).
1) Yes i am aware that capital gains are tax free in Pakistan. A big plus when compared with North America. Up untill recently, 3/4 of capital gains were taxable. Tax on dividends paid by individual is considered double taxation, for corporation has already paid taxes on these amounts. Mr Bush has passed a law reducing inclusion of dividends in income. But it has a sun set clause, make it a temporary measure. That is why i was wondering if any dividends were included in your projected returns. I also noticed that quite a few of the companies in Pakistan pay dividends on regular basis. This brings a fixed income nature to those stock investments.
2) In my question 3, what i mean was any mutual fund replicating the composition of KSE-100 (same stocks and same percentage). You can say if the fund is indexed to KSE-100. As you may know, S&P 500 is a bench mark for many fund managers. So if you want to buy such indexed fund, you can invest in all 500 of S&P-500 stocks without the expense and trouble. S&P-500 is traded as a contract in future markets and a synthetic version of it SPYDER is available as ordinary stock.
In my opinion, there is hardly any profession in the world (including the oldest one!!) that is not related to accounting. Some may say how it is related to religion. Strangely, the double entry accounting was invented by a catholic priest in Rome!!!!
Nice talking to you, we will be in touch.
