Financial Planning

BEGAANI SHAADI ME ABDULLA DIWANA Many years ago I was working in a Foreign Company. At that time U.S. was dropping bombs in Afghanistan. There were reports that many a time bombs were being dropped waywardly and were hitting unintended targets. One day I get a call from an overseas colleague of mine checking if we were all safe in Mumbai as the US bombing was hitting unintended targets. To my well-meaning friend distance of more than 2500 KM was not good enough to stop a wayward bomb being dropped in Kabul from hitting us in Mumbai. May be he was influenced by the map proximity. This kind of incidence shows the reaction to events in faraway places. When 9/11 happened, Indian interest rates jumped up significantly as a risk of sell off. It took strong intervention by RBI to bring sanity in rates market. Irrationality can prevail in short term.

Sensex crossed 29000, What Next ?  Every time sensex crosses new numeric level, the same question arises in everyone's mind, right? At 9000 sensed level suddenly we all feel, it will go to almost zero and heard someone saying market will get close one day, but it didn't happened ? Right ? Same way now at 29000 level, people feel it will cross 30,000 and then cross 1,00,000 soon ? Really ? Can you predict the same ? Businesses do not stop like that. So how this numbers really comes from ?

As we always say, simple things are always tough to implement. When we talk about shares of a particular company ! The first thing which comes to everyone's mind is business that company is doing? Right ?  Now let us understand, when a company is making a product say for example in rs. 100 and out of that 20 rs is profit they make on one product. If the price rise / if inflation goes up and  now the same thing is costing them rs. 100, then they will not reduce the profit to zero and sell the product right ?  the business owner will pass that inflation or price rise to the end consumer and they will not reduce the profit. so when you invest in shares, the inflation always gets adjusted in equity as explained above.

I Can Make Huge Money In Stocks If I Invest Directly: - Somebody told me last week If everyone makes money in equity, then why there are only 3% of investors in the stock market? and rests are into FD's, Gold, Real Estate, and all?  You may be right, Say for example, if you have started investing in equities in 2007-2008, what you may have bought? Reliance Infra, DLF, Suzlon, Orchid, Rcom, and so on..... (They all were the talk of the town).this is better known to the investors who already burnt their fingers.  I must throw some light here – they all are below their investment price- some are even less than half the price. It’s always said, Retail investors never make money as big as Seasoned Investor makes(the one who does research or invest for long term through mf), retail investors come into market when other runs out, they would love to buy stocks when its already in bubble phase and sell it when actually, its time to buy stock, or in investment lan...

2014-15 income tax exemption limit   in the new slab   Income Tax rate Upto 2,50,000 NIL 2,50000 – 5,00,000 10% 5,00,000-10,00,000 20% Income above Rs 10 Lac 30% 1 crore and above 30% Tax 10% surcharge

Banks are giving your money at higher interest to others as loan. To elaborate, when you put Fd in any of the bank, they lend some of your money to certain retail or corporate. For example you are doing an fd at 8%, bank pays you fix rate of 8% and against that they lend the same money in housing loan / personal loan/ car loan / mortgages etc.,

Your money got doubled ?  If someone feels their money got doubled ? Again have a look at your portfolio....i mean entire portfolio, with real estate, bank fd, ppf,epf,gold, company fd, stocks, etc., Indian investor is having less than 3% in equity, i do not say that, actaully this is an actual figure in india.