Saturday, December 1, 2018

Can I buy your one hour

Can I buy your one hour
One day, father was doing some work and his son came and asked, “Daddy, may I ask you a question?” Father said, “Yeah sure, what it is?” So his son asked, “Dad, how much do you make an hour?” Father got a bit upset and said, “That’s none of your business. Why do you ask such a thing?” Son said, “I just want to know. Please tell me, how much do you make an hour?” So, father told him that “I make Rs. 500 per hour.”

“Oh”, the little boy replied, with his head down. Looking up, he said, “Dad, may I please borrow Rs. 300?” The father furiously said, “if the only reason you asked about my pay is so that you can borrow some money to buy a silly toy or other nonsense, then march yourself to your room and go to bed. Think about why you are being so selfish. I work hard every day and do not like this childish behaviour.”

The little boy quietly went to his room and shut the door. The man sat down and started to get even angrier about the little boy’s questions. How dare he ask such questions only to get some money? After about an hour or so, the man had calmed down and started to think, “Maybe there was something he really needed to buy with that Rs. 300 and he really didn’t ask for money very often!” The man went to the door of a little boy’s room and opened the door.“ Are you sleeping, son?” He asked. “No daddy, I’m awake,” replied the boy. “I’ve been thinking, maybe I was too hard on you earlier”, said the man. “It’s been a long day and I took out my aggravation on you, Here’s the Rs.300 you asked for”.
The little boy sat straight up, smiling “oh thank you, dad!” He yelled. Then, reaching under his pillow he pulled some crippled up notes. The man, seeing that the boy already had money, started to get angry again. The little boy slowly counted out his money, then looked up at his father.
“Why do you want money if you already had some?” the father grumbled. “Because I didn’t have enough, but now I do,” the little boy replied. “Daddy I have Rs. 500 now. Can I buy an hour of your time? Please come home early tomorrow. I would like to have dinner with you”. Father was dumbstruck.

Moral: It’s just a short reminder to all of you working so hard in life! We should not let time slip through our fingers without having spent some time with those who really matter to us, those close to our hearts. If we die tomorrow, the company that we are working for could easily replace us in a matter of days. But the family & friends we leave behind will feel the loss for the rest of their lives. And come to think of it, we pour ourselves more into work than to our family.
Hence, instead of doing all the work ourselves, outsource as much as possible. The advantages of doing so are multi-fold
1) First and foremost you get quality time with people whom your love and who really love you
2) By outsourcing to experts, you get the best results - Mutual Fund for stock investing and Financial Advisory for money management
3) You help the economy by creating employment for others and set up a virtuous cycle of wealth creation for the society and nation.

Friday, March 17, 2017



  • Interest Rate is not fixed, change in interest rate will be notified from time to time whenever applicable, very much like PPF.
  • It Can not beat inflation ( if you get 8% return and inflation is high as 6%, real figure of inflation comes more than 8% per year, you will not get enough money to fund the education / marriage) Play school Education fees cost is around 1-3 lac per year.
  • Lock In Period is too high compare to almost no lock in - in Mutual Funds
  • Premature Withdrawals not allowed


Wednesday, January 25, 2017

CKYC - from 1st February,2017

What is CKYC? 

Central KYC Registry is a centralized repository of KYC records of customers in the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector with an objective to reduce the burden of producing KYC documents and getting those verified every time when the customer creates a new relationship with a financial entity.

The Central Govt. vide notification dated. Nov, 26, 2015 has authorised Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to act as and to perform the functions of the CKYC Registry including receiving, storing, safeguarding and retrieving the KYC records in digital form of a Client. A 14 digit CKYC Number would be issued as identifier of each client.

From when will CKYC come into effect for Mutual Fund Transactions? 

AMFI has mandated within the Best Practice Circular that the new CKYC process needs to be implemented from 01-02-2017

What is the alteration in MF New investor on-boarding process? 

Thursday, January 19, 2017

Pradhan Mantri Jan Suraksha Bima Yojana Policy

Pradhan Mantri Jan Suraksha Bima Yojana Policy (PMSBY)

Insurance is not a newer concept to India; however, its reach is still much limited.  In spite of so many insurance companies operating in India with their products and services, there are a majority of people in rural areas, who are not at all covered under any kind of insurance. Pradhan Mantri Suraksha Bima Yojana is for them.
These people are those who are mostly below the poverty line and insurance is an unaffordable service for them.  PMSBY aims to reach such people with its benefited insurance schemes after the successful performance of Jan Dhan Yojana.
Suraksha Bima Yojana Benefits
  • The death benefits are up to 2 lakhs
  • In case of irrecoverable and total loss of both hands, both eyes or sight or one leg or foot, the insurance cover would be up to 2 lakh
  • In case of lost of one leg, hand, foot, eye or sight, the sum assured would be Rs 1 lakh

Suraksha Bima Yojana Premium
The premium for PMSBY is such that even the poorest of poor Indian would be able to afford it.  The premium is just Rs 12 per annum for each member.  This amount would be deducted from the policy holder’s saving bank account with an auto-debit facility, in the month of June every year.
If somehow, the amount could not be auto-debited from the policyholder’s account on 01st of June, the policy would commence only when the auto-debit has been done on the account and premium paid.  As foreseen, the premiums would remain equally low at least for next few years.

Friday, March 18, 2016

Impact of PPF Rate reduced from 8.7% to 8.1 %

Impact of PPF Rate reduced from 8.7% to 8.1 % 

As expected, government do not want to take burden on it's own balance sheet, so they are going to pass it on to consumer by linking it to Gsec Rates in India.

Example :- if someone is investing with a view that one will get return of 8.7% compounding returns over a period of 15 years of tenure of PPF, now that charm is gone as PPF rates are volatile.

Someone having 20,00,000 Balance in PPF which were earning around 1,74,000 per year (tax free) will result in earning 1,62,000 (tax free) i.e loss of Rs. 12,000 loss every year from this time.

above all, no one understand the Inflation scenario when investing in PPF.

Thursday, February 18, 2016

Some Mutual Funds are Factory of NFO's

In recent past we have seen many NFO's because some infra themes were not there so one needs to add one. but in past 1 year so many big and some small fund houses/ mutual funds have started business of asset gathering, everyone are in league of becoming the 1st prize winner, they are in race.  some of them feel NFOs are growth engines to build their assets and profits.

What happens when you have more and more schemes?

what happen in recent time - all people associated with mutual funds get more incentives as new offer comes in, fund houses can spare more money as fund sizes are small initially.
some of the fund houses / mutual funds have similar schemes in their portfolio but they are still not merging it because everyone earns more on small funds. in this race of earning or making company big, who suffers is investor.

So what should investor do?