My Yahoo Answers

Risk taking ability

2012-03-03T11:00:00.000-08:00

Bank Fixed deposit Rates

2012-02-23T18:30:00.000-08:00

How PPF interest is calculated

2012-02-14T07:49:00.000-08:00

Most of the working class don't have much idea of PPF investment which can be used as a tax saving investment to save upto 1 lakh @ interest rate of 8.6%.Please read other articles related to PPF .

Rest of the people don't know the time to invest their money .For them the article from Manish Chauhan will be very much useful.,

It shows how the interest is calculated on the amount invested by us in PPF.

How PPF interest is calculated

Reverse mortgage

2012-02-04T13:30:00.000-08:00

This is one of the concept which many people don't know about.This is similar to loan which is very much useful for senior citizens.Though this type of loan is very common in foreign countries , in India its still a unknown concept.

Many senior citizens will be having own houses but don't have a source of income to live their life.This loan is a life saver for those people.

Everyone knows the meaning of mortgage , This is a loan in which your property will be taken as a security and you will be provided with income (like salary) every month or quarterly depending on the way we select .

My Personal Experience in Equity

2012-01-27T19:42:00.000-08:00

Till now i have shared the possible ways to invest your money.In this post i want to share my personal experience in equity.Only way to become a good investor is to learn from your mistakes/experience.I have gone through many books , articles ,even some comments in famous articles ., Only thing i got from them is no one will share their real strategy which they follow to earn profit out of market.
Every book will be telling just the overview on how to invest in market , no one will be sharing what is their strategy , how they gained out of stocks or their portfolio .. etc
Its just to make people to read their books.,But even what i want to share is the same thing.Books can just guide us and it will not give any assurance that you will earn profit.Its just your own experience which can lead you to become a good investor.

The main thing which everyone needs to understand is "Even Warren buffet will not win every time ". Its about minimizing your losses , Its like how many times you are winning and how many times you are losing.The more is the number of winnings ,then obviously you are moving in right direction.

Never ever believe the advices given by experts or your friends or any websites and invest your money in stocks., Because this is the biggest mistake every retail investors does.They will just watch a news about some xyz stock , buy some huge quantity and sometimes they will earn profit and some time a big loss.
All these news coming out of channels , websites are new to only people like us , the mutual fund companies , experts everyone knows about them much earlier than we know.So its them who will be selling you their stocks at that point of time.And another fellow retailer will be buying from you thinking the price will go up!!

Always have this statement in your mind "Buy when others sell , Sell when others buy"

just do basic research of your stock , the movement of it and always go for good companies ,because they will be fundamentally strong and you will not lose your money all of a sudden.,its like buying tomato ., When the tomato price is Rs.5 per kg everyone will be buying and if you have an option of selling the same (of course you can't store it for long time like stocks) when prices go up to Rs.20 per kg.

So if you know the movement of the stocks and if you buy it at a possibly low amount then you can sit quietly and watch for the market value of it.Generally retail investors who think of short term investment no need to do a big fundamental analysis or any other research ., Only think you have to keep in mind is what is the market value of that stock and compare it with 52 week low.

if you feel that its good rate to buy that particular stock at the present level then go for it.One more important thing is "Don't ever expect huge profits out of your stock and wait for long time" .Just fix a target in your mind say 4-6% and sell it wen the stock reaches it.Waiting strategy will not favor you all the time.If you are very much confident that your stock will raise then stay invested , otherwise go for the kill.

One of the important things which a investor should be knowing is averaging and Stop loss.
There are two type of average :

1) Buying the stocks by investing some more money when the stock price moves down.This will average the rate of your stock.Eg: you have bought a stock say infosys for Rs.2800 ., Now the price has gone down to 2700.Now you are buying one more stock to average .So currently the average price is 2750.So when the stock moves up you will gain because of averaging done by you.

2) Selling a part of stock you have and buying once again when it goes down.
Eg: Same infosys stock you can sell (which you already hold) for 2750 and then buy it at 2700 ., so that indirectly you have gained 50 rs out of this stock.This strategy can be used when you think that stock price will go down.

3) Stop loss are nothing but the price beyond which you dont want to hold that stock as it will cause you a huge loss.Its always better to fix a amount as stop loss so that your money wont be going too much.

Postal monthly income scheme

2012-01-25T20:30:00.000-08:00

National pension scheme

2012-01-12T09:00:00.000-08:00

Investing in Equity

2012-01-07T13:30:00.000-08:00

Investing in Mutual Funds

2011-12-22T15:30:00.000-08:00

Is the current UPA govt's policies weakening Rupee?

2011-12-12T06:08:00.000-08:00

Most of the experts in India are blaming the current government and their policies for US $ vs rupee fluctuations.
Currently the dollar equivalent of rupee is 53rs which is an all time low.

Every problem faced by the people today like inflation ,poverty are caused by the rupee weakening.
How many people really knows this? How many have really thought about this?

Today if the transport prices are increased in some place , middle class and upper middle class people will just shout for two days and them like post Mumbai attack they will start doing their work as it is going to affect them only a little.
But the real people who the country does injustice is the poor and BPL people.They are the one who are suffering because of the wrong policies of current government.

Does anyone knows that the inflation and oil price rise are caused mainly by rupee valuation?

Who are the guys who benefit from this? The people who export are the one.
How? yesterday i got 150rs/kg for apple exported to US , today i will get the same dollars but when converted it will give me extra 4 rs /kg which when calculated for tons and tons of export will be huge.
So what is the problem with this?Are you jealous of this people?
No not really.Just think , India is a country which imports more than it exports .
So who are the real losers .I am not supporting any company on this issue who actually import from other countries ,am just speaking about the common people.

Our government is importing barrels and barrels of oil , already they are giving a huge subsidy on it.Now if our rupee weakens then we have to pay them more than they are worth of.

Statistics tells us that we Indians pay 48 times more amount than the oil price in international market.So it will cause a huge pressure on the same govt as they are giving subsidy.
So recently they took a decision like let the oil companies decide the prices :) of course its like loosening the rope tied on your horse , no govt will leave it to the hands of these companies.

So that caused a rise in petrol prices which came down recently after causing huge discrepancies in the life of poor people.

What policy of govt is causing this?
Do you know that our govt is buying dollars and selling rupees?
What can we sell rupee also? ,Is that the question coming to your mind.
This can be done by Forex trading , nothing but trading of currencies .,Exchanging currencies will also cause fluctuations in currencies.When a demand increase for a currency its value will go up and vice verse.
More and More our govt sells rupee in exchange for dollars for increasing our reserve the more and more people have to pay for it.

These are just common man's anger.Its not against any party or any politician.

please comment if you find its worth commenting!!!

Start your own business : Franchise

2011-12-12T02:28:00.000-08:00

Many people would have visited KFC's and mcdonalds , have you ever wondered who is the actual owners of these shops?
These are actually franchises owned by people like us who chose a right platform for starting a small business .
First of all let us think what made these people in starting a franchise instead of starting their own business
Advantages of franchise over own business
* Brand name has already been established (like KFC's)
* Less amount is needed in marketing sector
* The original owners will readily help in producing products which you sell(guidance)
* Customers will be loyal , so increase in sales.

People who want to be entrepreneurs but lack in proper idea can readily invest their money in franchises.
Depending upon the nature and brand value of the company which you think of starting a franchise ,the money for starting it will increase.

To know about different franchises and the amount you need to start them
Click Here

What are all the requirements for owning a franchise

1) Investment - To start a well known franchise you require atleast 10 lakhs - 50 lakhs .But the minimum amount needed is just 10000 bucks.So all you need is just 10k to start your own business.

2) You need to pay a minimum fee called as brand/franchise fee to the company which you want to start franchise of.

3) You have to provide them about the property details where you want to start the outlet as these people will be too cautious to prevent any damage for their brand.

What is the advantage of the original company

1) A company needs huge capital in starting their business at a place which they don't know exactly about.This is main reason why many products of big companies and some of the big companies failed to reach milestones in certain places.
Without a proper study of the place where they are going to start none of them can survive.

2) Companies want to develop their brands to place beyond their reach.These can easily be obtained by this franchise concept.All they have to do is a little transfer of knowledge of their products and their business model.

3) The franchise is yielding profit or not the original company will get their money in the form of Franchise/Brand Fee and Royalty/Commission .So its always a win win situation for them.

Visit the site to know about best franchises!!! coming soon

Investing in Property

2011-12-10T14:00:00.000-08:00

One of the best and safest place to invest in current world is properties.

Two decades back people will be dreaming of buying their own house and with their lifetime earnings they will either buy a land outside the city and build a beautiful house in it or buy a small single bedroom house(Individual house) in cities as flat/apartment culture was not there at that time.

Later after the rapid growth in construction field happened there were many new multistorey buildings coming up and people were rushing for these apartments and it created a huge demand in property sector.

Initially a sector which was for their own consumption became a place to invest and earn profit.
It became a donkey race now , people are fighting for lands , apartments , houses and making them unaffordable for lower middle classes and poor people .,
But still my topic is to discuss my thoughts on investing in properties and i don't want to deviate from it further.

Basically you can earn two kinds of profits from your house/apartment.
One is the capital appreciation : which is nothing but the increase in value of your property.As i already said most of which are caused by the demand caused by the people.So its actually a artificial price rise.On the otherhand there is also a natural rise due to development of areas.

The second income from your house is the rent which you can get from the tenant.
Most of the people knows about these two income but their is one more income which can be said as an income as it saves you your money.
Yes owning an house by getting a loan can save you from paying taxes., Most of the people don't know about this and some will not utilize this as they don't know the way to use it to prevent from paying tax.

Recently when i was discussing with my friends about Property rates in US , suddenly i said "bubble". One of my friend asked "what is the meaning of it as am often hearing this word in news channels and papers?". Though i know only a little about it i didn't show in that way and just explained him whatever i know.
Actually earlier i told about artificial increase in prices of properties ,there is a special term to describe it called "speculation". This what happened in US , people started buying properties by getting loans from banks and when one day the prices started falling due to the bubble caused by this speculations they didn't had choice and they didn't pay their premiums properly as the loan amount was higher when compared with the value of their property.
Naturally their will be some resistance if you were asked to pay double for a product not worth it.

Now a second question aroused , Is their any possibility for the same in India.,
What will i answer ??? :P Hey idiots am not an expert to predict all this things.,But how will i answer this as i was already formed as a genius among my friends .I just stayed calm for sometime and asked them like "Is their any possibility of Earthquake in Chennai ?(Madras , Tamilnadu., India)". They replied like "There is less chance for such an incident to occur"., Even i expected the same answer from them , i said similarly there are chances for a bubble like situation but less :).

Though the above situation is hypothetical to discuss , there is some small amount of chance for happening.But these are just information which people have to keep in mind especially people who are chasing properties for gains.As they are the people who are in risk than the people who buy for their own living.
There is one saying "When earthquake comes beggars will become rich and rich people will become beggars"

But these things should not stop you from dreaming for your own house .,
You can have a look at the banks which offer better rates by clicking here
House loan rates

To know about EMI and Eligibility visit the site later :)

Wishes for building/buying your dream home!!

Investing in Post office schemes

2011-12-03T08:00:00.000-08:00

Investing in Pension schemes

2011-11-26T20:30:00.000-08:00

Power of Compounding!!!

2011-11-17T07:04:00.001-08:00

Have you ever wondered what is the meaning of the term "power of compounding" which is often used by investors.

In this am going to share my knowledge on compound interest and how your money will grow due to this
principle of compounding.

Recently one of friend asked me what interest rate banks are giving on fixed deposit for short term.
I replied to him like it depends on bank to bank , the average return can be around 9-10.5%.

He also said that he want to invest his money (rs.25000) in FD for 1.5 yrs.He made a rough calculation on how much he will get for one year keeping the interest percent of 10% for easy calculation.It came like 2500rs and he was happy on getting that as interest for his idle money which he don't want to invest in mutual funds or equities due to the current market situation (Basically he is a conservative person).

While discussing this interest rates he suddenly asked me like what will be my balance if i invest this money in bank FD
or left the money in SB account and die or take after 100 years .I answered to his first question immediately like your nnominee can claim the amount incase of your death ,so it is not a big deal.But while answering the second question he was really shocked.
Then only i realized like many people even now doesn't know about a concept called "power of compounding".

Gave too much hype on this concept , Let me explain about it :

Normally the interest rate we get from banks is 10% , so when we invest 1000 rupees for one year we will get interest of
100rs and this will again add to the principle (1000rs) thereby your total amount for the next year to calculate interest is 1000+100 = 1100 rs (principle+interest).
Good this everyone knows , so whats new!!!

The thing is this amount which you invested (1000rs) will become double in 7 yrs(calculating rate@10%) .So by the end of
7th year you will have 2000rs.Which when you see interms of amount, is less but this is the power.

okay lets see what will happen after 100 years???
1000 - 1st year
2000 - 7th year
4000 - 14th year
8000 - 21st year
16000 - 28th year
32000 - 35th year
oh my fingers are paining!!
64000 - 42nd year
128000 - 49th year
Is this true ????
Don sleep still your money is batting
220000 - 56th year ..... okay just checked 256000 - 56th year
612000 - 63rd year
This time really my hands are paining!!!

so you calculate rest...

I finished my speech to my friend by saying this short story :
Once upon a time (in china , in india , in US) wherever you want there was a king whose daughter was very ill and he announced (don have much time so shortening) like whoever saves his daughter that guy can marry his daughter as well as he can ask whatever he wants from king.(generally doctors are guys at that time)Many tried but failed finally one guy (chitti the robot) came and gave some medicine (Gelusil antiacid tablet) and cured that girls disease.So they arranged for celebrations (okay too much) now its his turn to ask the king for some dowry (don register case on him)
He asked the king to bring a chess board and asked him to place two grains in the first square , four gains in second and asked him to go in the same way till 64 squares (that much squares only thr).When he reached 32 squares he lost all his money and kingdom , when he reached 38 all his friends lost their kingdoms and finally he understood the power.This is the concept of compounding .. So Let the money make the talkings.

People will ask whether will they live till hundred years ., surely no but your child will or your grand child will...
Nowadays people are saving for their next generations only rt?
So just a sum of 1000rs will make you ambani in 2100 (not you your grand son).
Don think of inflation n all it will rise only if all in the country thinks about their growth ., till people works for daily wages our countries will be having more people below poverty.

So now think what will be your net worth if you get good returns like 14-17% from mutual funds and equities ., For knowing them read the other posts :P

people who don want to take risk can readily invest their money in FD's or PPF's with tax savings(View post about PPF for more details).

Please give your comments if you like the post !!!
Srivatsan

Investing in Fixed Deposits

2011-11-16T10:00:00.000-08:00

Unemployment in India caused by China

2011-11-14T06:29:00.001-08:00

Does anyone knows that the unemployment in India is due to china?
Yes many people viewing this post doesn't know that china is undervaluing its currency .
It means that the Yuan ( chinese currency) is artificially undervalued so that for each US dollars corresponding Yuan will be more than the actual rate.

Is this possible?
Yes.That is what happening in the world and china is cheating every other country in the world and neglecting them the opportunity to export more (like India)

How china is doing this?
China has more than $3 trillion in reserves(F Ex). So they can change the nature (value) of US dollars because of such a huge reserve.They can do this by buying US currency (from trade) and offering bonds to chinese investors to reduce money supply.So their currency Yuan will become weak when compared with dollar.

What is the use of doing so?
By doing this they will have the benefit of exporting materials to US people as goods will be cheaper than other countries (Indirectly affecting trade in India). The US companies will also start their branches in china as labour is cheap and raw materials are cheap wen compared .

How this will affect chinese people?
Yes even chinese are getting affected by this (communist govt) .As the currency value is low they cannot import items into their country as they will cost more than the goods manufactured in china itself.So they have the bear with the quality they get thr.

How India is suffering because of this?
Ofcourse India is the Only big challenger to china in terms of export in Asia region.So naturally other countries(Especially US) will go for china than India because of the value of goods.This is affecting the growth of India economically and also causing very good US companies(causing unemployment in some cases and lost opportunity in other) as these to shift its base away from India and to china.

China threatening US
Indirectly china is threatening US as it can readily collapse US economy.
1)As china is the biggest exporter to US
2)China holds huge amount of US currency and if it sells them(exchange in open)than US currency value will decrease to larger extent making US economy to tumble.
3)Again a threat to US by causing unemployment (biggest problem which the current govt is facing)

Home Loan Rates

2011-11-14T02:03:00.001-08:00

Current Home loan rates in various banks
This will give an idea for home loan takers to select the perfect bank to get loan for their dream home :)

Learn more by clicking here

Real estate Mutual funds(REMF)

2011-11-13T09:00:00.000-08:00

This is one of the new concept which is going to be introduced in India soon..
At the current levels people are dreaming about getting a property on their own especially middle class people
but they are not able to do so due to the booming prices
of these properties due to artificial tsunami caused by wealthy people and
some people who are in affordable list (Who have money to spend readily or
have eligibility to house loans for 7 digit numbers).

This scheme can be said as a breed of mutual fund and real estate.
Its a normal mutual fund scheme where the mutual fund houses or AMC's will invest in completed properties (shops,flats ,individual houses ) as well as in related securities .
The rents yielded from these properties are paid as dividends to the mutual fund investors on regular basis .
These funds has a lock in period of 3 years and basically they are dept funds.
The Nav of the same will be published on daily basis.

The benefit of these schemes are like it will make the investment process in real estate much faster and easier.

Can a common individual tax payer invest in government securities?

2011-11-11T22:31:00.001-08:00

Yes common retail investors can invest in govt bonds..
For eg :
Kotak Gilt is a scheme that allows the retail investor to
invest in the otherwise wholesale government securities market.

It invests in government bonds and treasury bills, giving a
zero credit risk investment option. It recognizes that for retail
investors safety is of prime concern, giving
them the liquidity of a savings account with attractive returns.

Where to Invest? How to Invest?

2011-11-11T22:10:00.001-08:00

Hi I am 24 year old, my income is 59000 P.M.

I have following expense P.M
1. Rent 7000
2. Leisure 5000
3. Food 6000

I am already investing in Mutual Fund (8000 P.M)....dont want to invest more in M.F

Now kindly advice me how can I increase my saving and save properly in order to get good returns constantly.
****************************************

Plan given by ranjan is really nice., Any financial planner will advice you something like that...
I guess you are investing in Mutual funds systematically (like 8000 PM in SIP).. If yes then good , else please invest in SIP and also in atleast four to five funds which should be Largecap , Multi cap , balanced and mid cap... I will not suggest you to invest in Dept funds considering your age (24 yrs)..
Elss funds is best way to invest if you are ready to invest for long term (min 3 yrs) as they have lock in period...
Learn about stock market in mean time and try to invest when markets go down to 16000 levels as in long run you will get nice returns
And side by side invest in PPF and Bonds to save tax as all other incomes are taxable ,

Right Time to open PPF account!!!

2011-11-11T18:44:00.001-08:00

Government has increased the PPF interest rates from 8% to 8.6% in the way to control the rising inflation rate.
This is the right time for investors who waited for tax benefit for their money to invest more as the ceiling has also been rised from 70000rs to 1 lakh rupees.
This will be effective from December 1st 2011.

Investing in Government Bonds

2011-11-11T14:52:00.000-08:00

Where to invest My Money!!!

2011-11-07T01:20:00.000-08:00

Everyone is having this basic question in mind.

Where to invest my money so that i will get a good and safe return and which can be used for my retirement or child's education
or daughter marriage based on their needs.

These are some of the places where you can invest money based on your risk taking ability

1) Investing in Government Bonds
People who want to safely invest their money can buy these long term bonds of 20 -25 yrs .
These give a good return of 8% and are used by govt in collecting money for public.
These also have tax benefits and can be sold like other bonds in market.
click here for more information

2) Investing in Fixed Deposits
This is one of the famous and best way to get a nice return.
Though the return is taxable , this way of investing is chosen by many investors to yield good return of upto 10% now.
For short term investment you can get upto 10-11% and for long term investment some banks are offering 10%.
This will good for investors who need money in short term as 2-3 yrs will give good return than long.
click here for more information

3) Investing in Pension schemes
Pension schemes are one of the popular place where especially people working in private sectors invest.
People working in IT companies or in any private firms will not get the benefit which their fellow neighbors working in govt jobs get.
So the govt has introduced some schemes like NPS ( National pension scheme) which though gives only a minimum return when
calculated long term will yield good return.
To know more click here

4) Investing in Post office schemes
Postal schemes are the schemes which where popular to people in those days.As this is the one which is
considered as the investment by many people .Still people believe that postal schemes will give safe returns even though
the return is not good.
One of the best postal scheme is POMIS or Postal monthly income scheme
To know more click here

5) Investing in Property
Buying a land or flat/house is the dream of many youngsters and even older people who have not yet tasted the juice of
owning an house of their own.Many people believe that owning an house will give them self respect in the society.
Though analyst think of property as just investment , It is considered by people emotionally a value to their life.
This is one of the best investment which will give you a monthly income as rent and which can even be reverse mortgaged during olden
days to get income from banks.
To know more click here

6) Investing in Mutual Funds
Generally people fear investing in markets as they believe that it is very risky to invest . These are basically because of lack of knowledge on this
things.People are not willing to change their minds and not ready to allow new things to come in their life.
But today's younger generations are ready to explore all possible ways to get good return for their hard earned money .
Mutual funds are good for even people who don't want to take risk as they are done by experts who know where to invest and when to.
Its always better to invest systematically in these schemes so that we will not suffer huge loss.
To know more click here

7) Investing in Equity
Equity is one of the best place to get high returns for our money .Generally people who are ready to take high risks especially young people
can invest in equity which can yield them 15-17% if planned properly.
Before starting one needs to read the market carefully for some months and be aware of the things happening in the world to know about the
future of market.As market reacts to these news very much as people are emotional often than thinking about future.
To know more click here

How to open PPF account

2011-11-07T00:27:00.000-08:00

PPF accounts can be opened in any nationalized banks and its branches where PPF accounts are handled.You can also open the account in head post offices and some selected post offices. You can also take loan on your PPF money from the third year of your investment. To know about PPF account Click here