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Water crisis in Indian villages and its solution.

Population growth is putting enormous pressure on natural resources. Underground water, which was available in abundance few decades ago is depleting very fast. Rich peoples always find a short-term solution to avoid such problems without thinking about long-term effect. First, they come up with above ground pumps to store municipal water in overhead tanks and to use it 24 hours uninterrupted. Due to which poor peoples were unable to get water. Later, when there was not enough water in municipal water line, they start using submersible pumps. However, no one think about its long-term effect on water table and its permanent solution.

Water level is going down very rapidly. In many villages, hand pumps are not working anymore. You have to bore as deep as 200m depth to find sweet water, such boring cost more than one lakh Indian Rupees. Poor’s and even lower middle class peoples cannot afford such huge amount of money.

In Neem village in Mathura and Dori nagar in Aligarh, potable water crisis is increasing day by day. Poor farmers and villagers are suffering daily. Daily women have to walk for 2 km for sweet water. Submersible pumps with less than 200m boring are no longer working. If such scenario will continue for long time, even plants will start dying causing double havoc for human being.

What is the solution of this problem?

Rainwater harvesting, reducing wastage of clean drinking water and using treated water can be the solution of this grave problem. Without Government and NGO involvement, this will not be possible. However, Government is giving slogans. No concrete action until date.

What is Rainwater Harvesting?

Rainwater Harvesting refers to the practice of collecting rainwater from a roof or other surfaces and to use this water for different purposes. Water collected is typically used as a non-potable source for uses such as toilet flushing, urinals, and irrigation.  If the water is treated it can also be used as potable water for drinking, dishwashing or bathing. 

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Time waste is a life waste.

If you waste money, you can earn it back. However, you do not have any such facility with time. I have seen people killing time when they do not have anything else to do as if they will recover that time back whenever they want!

Time is most precious thing because as of now, we do not have any technology to reverse time or create time. Hence, use every second of every minute of every hour of every day of your life properly. To use time effectively, always carry some good books with you. Whenever you do not have anything else to do, you can start reading books. If you find it clumsy then you can download some books in your mobile and read it in your mobile whenever you have free time. If you are not interested in reading, then watch educational and motivational videos on YouTube. Meet peoples; call your friends and family members in free time. Make new friends, attend seminars, functions and fairs.

                World is changing very fast. Everyday some new technology is coming in market. Keep updating yourself. Whether you are a student, serviceperson or a businessman, it is equally important for you to learn continuously about new ideas, technologies, politics, cultures and religions. Utilise every moment instead of killing time in doing useless things. Whether rich or poor, we all have only 24 hours a day. No one can buy more time for himself. Hence, make most out of it.

Following are some time saving tips which can help you to save time:

  1. Wake up early. Start with to do list.
  2. Walk faster. When you do not have any goal in mind you walk slowly. Always set your goals and try to exceed them.
  3. While it is good to make friends, avoid wasting time in meaningless gossiping, backbiting and sitting idle.
  4. Plan before you start any activity. Rework waste time, money and energy. Hence, always plan in your mind first.
  5. Entertainment is important in life, however, do not waste whole day watching movies or cricket matches on TV. Try some outdoor games and creative entertainment for few hours.
  6. Take good care of your health to enhance your efficiency.
  7. Try to live near to your workplace. Daily two hours travel does not make any sense in long team.

Happy Eid ul Fitr to Everyone

After 30 days of fasting, Muslims around the world will celebrate festival of Eid Ul Fitr tomorrow based on sighting of moon.

Happy Eid ul Fitr to all Muslims across the globe!!!

To learn about Eid, you can read my post by clicking below link.

What is Eid Ul Fitr? 

Caution: Small retail investors must stay away from stock market for some time

Sensex is trading in the region of 40,000 points. A big correction was expected since the start of this year. However, Sensex is climbing higher and higher even after slowdown in GDP and much other negative news. It seems some players do not wants Sensex to go down and they are pumping money even on small positive news and ignoring negative news such as trade war altogether.

Most of large cap stocks are already overvalued and market PE ratio is at its high, which is the very important indicator of over valuation. In such scenario, small retail investors and new investors must not buy new stocks to avoid huge losses. Because stock market can crash anytime and wipe away all your hard earned money in a day or a week.

Wait for correction in stock market for few months before investing. Invest your money in less risky alternatives or keep it in your saving bank account for few months and just wait. If you are very keen to invest, invest through mutual funds which are less risky. To read my post about mutual funds, click here.

Does Congress Party needs a new Face?

Early trends of 2019 election vote counting are showing clear majority for BJP. Exit polls were right this time. Congress paid the price of its Ego and family politics. They could have made alliances with several regional parties like in UP, they could have joined the Mahagathbandhan. But their overconfidence and ego came in between. They bring Priyanka Gandhi at last moment as if she is a magician and can turn things upside down.

Post-election it is easier to criticise but Congress need to understand root cause of their successive shameful failures. Root cause is that Congress do not have suitable Prime ministerial candidate. Just few months ago Congress won elections in three states because RaGa was not fighting for CM from there. Even today, when Ra Ga has improved himself and can face media independently his “Pappu” image is not leaving him. No one has courage to take Rahul Gandhi name when someone ask question-who will be next PM if not Modi?  

Mr. Modi is a Hero for powerless peoples. He is a match maker for business tycoons. He has amazing art of adaptation. He keeps his mission above himself. There is no limit that he cannot cross and there is no trick that he cannot use to achieve his mission.

We can continue to blame EVM hacking for election results; however, it is quite clear that India has changed considerably in last one decade. Pseudo secularism is haunting Congress. They let RSS to grow exponentially.  Now when RSS has poisoned millions of minds towards Hindu Rashtra and have accumulated lot of resources, it is very difficult for any other party to win in elections.

Congress desperately needs a better face. Someone like Shashi Tharoor will be a great choice. Rahul Gandhi must accept his defeat and must give chance to another leader to come up as a PM candidate in 2024 elections if that election ever happened!

On other hand, Mr. Modi is looking more humbled and talking more sensibly about 130 Crore Indians after getting unimaginable victory yet another time. I hope Modi-2 will be far better than Modi-1 and India will prosper and progress in coming years as expected by  more than a billion Indians.

Mutual Funds-How to maximise your earnings?

There are two ways of investing in Mutual funds:

  1. Lump sum Investment
  2. SIP (Systematic Investment Plan)

Above two methods are used by most of new investors. If you do not have big amount of money in your hand, you must opt for SIP where you can start monthly investment as low as Rs.500. whereas if you already have money at your disposal, you can invest as lump sum. In lump sum investment you will start getting profit/loss on whole amount from day one. Whereas in SIP, as your initial investment will be very small, thus, you will gain very small or insignificant return till you accumulate big amount after several months.

Talking about advantage of SIP, SIP average out the risk of share market as you keep investing regularly.

Both SIP and lump sum has their own advantages. Is there any method by which you can take advantage of both the world?

Answer is yes, and this is the reason why I am writing this blog. This method  is called STP-Systematic transfer plan. Suppose you have a lump-sum amount and you want to reduce risk by investing through SIP. In this case STP is best solution.

First you choose two funds from same company. Invest your full amount in first fund which has zero exit loads. Using fixed monthly withdrawal through  STP option you can invest in second fund as SIP. In this way, you will be able to earn return on both the mutual funds.

Suppose I am having two mutual fund schemes from Aditya Birla mutual fund namely:

  1. Aditya Birla Sun Life Low Duration – Direct – Growth
  2. Aditya Birla Tax relief 96

First fund has zero exit load, so I will park my lumpsum in first fund and I will opt from STP which I will use as SIP for second fund. In this way I will earn return on both the funds.

Disclaimer:

1) Names of mutual funds mentioned are only for example and are not any recommendation to buy or sell.

2) Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing

Best Investment

Some of us do regular investment in mutual funds, PPF accounts, FD and in some other such instruments to earn passive income. However, there is another type of investment which can give us better returns than any other investment.

This best investment is one where you invest in your own skill development. Here, you can generate several times more return than ordinary investment. Unfortunately, most of us never think about this investment and they have to settle for 10-15% profits.

World is changing very fast. Everyday new technologies are replacing old one. Investing in you is not only rewarding but also necessary. Learn new methods used in your industry, attend seminars, read good books daily, watch YouTube video’s and utilise your free time in creative habits like exercise, playing outdoor games, networking, meeting people etc.

Your health and your knowledge are your best investment. Keep investing to gain best results.

Earn Passive Income through Mutual Funds Investment

Indian stock market is as sentimental as Indians themselves are. Even a small negative news can cause huge panic in market. Big players and well-informed investors exit at high price immediately and buy shares at low price later. Whereas, small investors who want to make one time investment and become rich in short span of time mostly suffer losses. One very important fact about share market is that, it is a zero sum game. Your loss is someone else’s profit. Those who buy shares based on speculations mostly lose money.

Presently, any passive investment does not yield more than 10% profit in India. Property rates are going down, rental income is between 5 to 8% maximum and interest rate on FD are between to 7 to 8%. However, share market is booming from last 10 years. Share market can give you higher profit or loss.

To minimize risk and to gain more than 10% return, Mutual funds are good investment in long term. They restrict your losses within a narrow band. For low risk and low return of 8% to 12%, you can invest in mix funds known as balanced funds (debt +equity). If you are willing to take moderate risk, and want better returns (if market does not crash abruptly), opt for large and midcap or Multi-cap equity funds. Small cap equity funds are associated with high risk and high return. It is better to avoid pure small cap fund.

If you want to avoid high expense ratio, always buy direct mutual funds. Regular funds always have around 1% higher expense ratio, which can cost you huge amount of money in long term. In addition, direct Index funds are even better having expense ratio around 0.5% or even lesser.

Important terms used in Mutual fund market.

  • NAV: NAV stands for net asset value. It is the value of one unit of Mutual fund. Higher NAV does not mean over price of units like in stock market. It means Mutual fund performance is good and it is more famous with investors so they are investing more money.
  • AUM: asset under management. It is the total amount of money managed under particular scheme.
  • Expense Ratio: It is nothing but fund management charges. Lesser is better.
  • S.I.P.: Systematic investment plan. It refers to monthly investment of small amount of money in any Mutual fund. You can invest even Rs500 per month in some funds. In this case, your SIP will be Rs500.
  • Lump sum: One time investment.

If you do not have big amount of money to invest, then SIP is the best way to start investing in mutual fund as it average out your risk and profit. Do not save money to invest one time.  Start SIP as early in your life as possible. Read my previous blog to understand benefit of starting early by clicking here.

Start investing early to attain financial freedom:

 

As we start earning, most of us do not have long term financial goals due to which we spent almost whole monthly income on trivial things such as shopping, outing, movies, expensive accessories and parting with friends and family. Since we have no financial liabilities at that age, we are not interested in saving and investing. Even our elders do not motivate us for investing; only few fortunate people may differ! Some of us start saving though for short term goals like marriage, honeymoon, car or bike etc. But no one think about investing at the age of 21 to 25 when we start earning.

Unfortunately, most of us do not understand power of compounding. If you will understand power of compounding you will definitely start investing early. Amount of investment is secondary; time is primary for magic of compounding to take place. If you invest today instead of starting investing  after 15 years, your return will be much higher after 25 years . Below table shows an example to prove above statement. There are two persons- Tom and Jack. Tom starts investing at the age of 22 and invested Rs1000 for 25 years till he reached age of 47 years. Jack started investing Rs2500 monthly at the age of 37 and he also invested till the age of 47. Both invested Rs.300,000 but for different duration. Now let us see returns of both persons at the age of 47.

Interest=8 % pa
Years Tom age 22 Jack age 37
1 12000 30000
2 24960.0 62400
3 38956.8 97392
4 54073.3 135183
5 70399.2 175998
6 88031.1 220078
7 107073.6 267684
8 127639.5 319099
9 149850.7 374627
10 173838.7 434597
11 199745.8  
12 227725.5  
13 257943.6  
14 290579.0  
15 325825.4  
16 363891.4  
17 405002.7  
18 449402.9  
19 497355.2  
20 549143.6  
21 605075.1  
22 665481.1  
23 730719.5  
24 801177.1  
25 877271.3  

 

Even though both invested same total amount, Tom return is almost double of Jack return, even though Jack monthly investment was 2.5 times lesser thne that of Tom monthly investment.

This means, by increasing duration of investment, even with smaller monthly investment you can earn better returns. This is the power of compounding.

Start systematic monthly investment plan (SIP) as early as you earn. How much amount you invest is not important. There are mutual funds and PPF account where you can invest even Rs500 per month, which means Rs.17 per day. Every person who is earning can save and invest this small amount of money and increase it with time. This will help him/her to achieve financial stability and freedom before reaching age of 50 years. After that you will no longer need to work for you necessities. You will have a secondary income to take care of your necessities; you will work for your own joy and passion.  By investing Rs5000 per month, you can save Rs68,00,000 in 30 years if we consider mere 8% profit compounded annually.

There are many equity mutual funds which can give you around 15% profit too. This will increase your wealth faster. However, Equity mutual funds are subject to share market risk. For safer option, you can opt for debt mutual funds, FD’s, PPF account, liquid funds etc.

 

Abhinandan Ka Abhinandan on safe return to India

Our brave Pilot finally returned home safely. I am extremely happy. I was not able to sleep properly last night. I was concern about him as he was in Pakistan and any moment it might happned that Pakistan could change it decision. According to one news in Economic times, “A Pakistani citizen on Friday filed a petition in the Islamabad High Court to stop the imminent release of the captured Indian Air Force pilot Wing Commander Abhinanadan Varthaman, saying he committed crime against the country and should be put on trial here.” Which makes me more worried.

Since morning I was watching news to get some more information about timing of his release. But our news channels are becoming useless piece of shit. You can find every baseless news, useless debates on religion and political drama but it is very hard to get any sensible information. Finally when I saw wind commander Abhinandan entering Indian Territory from Wagah-Attari joint check-post on social media video, I feel relaxed and happy like all Indians.   

We all must learn a simple lesson from this episode: when other party is willing to talk, we must first give “peace a chance”. Between two nuclear nations, war is not an option to solve any dispute. Learn from America and North Korea. America built enormous pressure on North Korea but never drop a bomb on its territory. I am not a fan of Donald Trump or USA, however, I this case; they definitely show the world that by using diplomatic pressure and talks, we can resolve issues. War is not a solution. It never was. Since WWII, we have not seen war between nuclear nations. Because, once you have nuclear weapons and striking power, you became equal to any mighty country in the world. No country can afford loss of entire city or its capital.

Stop Watching News Channels

Indian media has lost all its credibility. They are working like paid servant for politicians. For money, they can sell their nation. Instead of keeping details secret about Wing Commander Abhinandan Varthaman, they were showing his home and family members. Not only that, when Pakistan announce release of Abhinandan, instead of asking right question from Indian Govt. about, what diplomatic action they took or whether Pakistan is really showing a positive gesture to start dialogues, these media channels were busy in war mongering and cursing Pakistan even before detained Indian Pilot reach India.

If Pakistan changes its mind at last moment what will we do? Will these media houses bring him back?  

Stop watching such news channels that run political propaganda & war mongering and make lots of money for themselves. Tell them that we want sensible news and ground reporting not just imaginary reporting. We want to see debates on facts and figure not on Mosque and temples. We want proper analysis and neutral views from both sides rather judgement by reporter.

Shift to neutral channels running on social media and on internet. Do not rely on one channel. Use your own brain and cross check everything before accepting and forwarding it.

I want to appeal everyone, do not praise Pakistan. Try to understand diplomacy of Imran Khan. Not at once, he talk about banning Jaesh e Mohammed who are actually Jaesh e shaten as rightly pointed out by Owaisi in his speech in Maharashtra. Imran Khan is trying to create divide between secular and communal Indians. Pakistan’s PM understand it very well that Mr. Modi is not a popular Prime Minister. By showing goodwill of Pakistan he is actually trying to create divide. Do not fall prey to Pakistan. Stand united with India. We must praise Indian forces and our brave soldiers.

Think twice before you say or write anything. Control your emotions and temptation. Use your all intellectual faculties before opening your mouth. This is a difficult time and politicians can use it in any way.

Pulwama Attack and Indian Retaliation

Indian air force carried out a successful operation.It is a proud moment for Indians. However, It is shameful to encash Armed forces success for political gain. Surgical strike is not meant for publicity. Why such critial news made public ? What is the stratgic gain India will have by disclosing such confidential information to public? Same Govt. had problem in disclosing price of Rafale aircraft giving excuse of national security. But they have no problem in disclosing details of air strike ?
 

Election makes all things possible.

India is having General Election in next two month. It was quite obvious since long time that Modi Govt. will use any means to win this election. instead of stopping election campaign to focus on pulwama attack and to build deplomatic pressure on pakistan, Mr. Modi gave free hand to army. He is fully focussed on election. He has no time for anything else.

However, Pakistan will not keep quite. Pakistan will try to retaliate. One thing both nation must understand that war is not a game that you can use for political gain. War means death, distruction and loss of property. Think sensably. Act practically and dont behave emotionally.

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