Financial Planning

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 ?

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.

When I was a kid...I love to do cycling and going out with friends, we use to have lots of races on cycle. But at the early stage, I was afraid to paddle the bicycle....the 1st paddle was tough for me... it required a lot of courage.....and confidence. ....I started learning bicycle but I failed so many times, slipped off it, cycle punctured, small accidents, but in the end, I learn that by doing constant efforts of keeping my eye on it & balanced it quiet well. Sometimes I fell down looking here and there, what my friends are doing it, how far or near they are. But after making a small mistake I learned that focus and balance is the only thing from which I will be able to manage it well. But do you remember the 1 st day of cycling? The 1 st paddle you put your leg on? it was scary, isn't it? True? But what now? After years of practice, you can run the cycle in zig-zag ways too? Seen the same people riding a cycle on the levels o...

Equity ? What is it ? Equity = Ownership = Partnership = Investment in Business To make it simple, Equity Means doing Business or Investing in a Particular Business and earning profit from it. When you start a new business, think of an idea & start implementing the same, risk is always there on the performance of business, the probability that business will prosper or not ? You invest some amount & expect some returns over a period of 5-10-15 years. Now you are a share holder / owner of business / partner in business.

“Understand Equities – The Sachin Tendulkar Way” Consistency:-  As we all see in the case of Sachin (24years of consistency), practice makes perfect – so true with Equity too, (17% plus CAGR in last 30 years) Equity gives you constant returns over a period of time. Like Sachin takes 1s and 2s and hits fours and sixes whenever the right delivery bowls over, in Equity it’s also proven that one should at least stay invested over a longer period for making good inflation-adjusted returns.  Aggressive Stance:-  We have seen Sachin being aggressive at times. We have a lesson to learn here. One should invest in equity aggressively, whenever the market goes down and sentiments are very low when no one talks about equities, that is the time one should get aggressive and allocate more money to equity, you can get better returns, on the other hand when people around you get bullish on equity, everyone talks about equities, then that time is to allocate fewer amount inequiti...

Case of Mahindra Scorpio Vs Shares Of Mahindra M&M  (Scorpio – 7.54 Lacs) (7,50,000 / 12.73 = 59230 Shares) Share Price in Year – 2001    Rs. 12.73 March – 2010 Spit 10 to 5 Total Shares Now (59230x2) = 118460 Share Price as on 4 th April,2013 = Rs. 855 Shares x Price (118460 x 855) = 101283300 7.54 Lac invested for 12 Years is worth = 10.12 Cr