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.
Sensex is trading in the region of 43,000 points. A big correction was expected since the start of this year. That correction came in march-April 2020 and within few month, share market again reached its peak. Sensex is climbing higher and higher even after slowdown in GDP and many other negative news such as lockdown due to Covid-19 cases. 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 unemployment rate, falling sales and Indo-China border conflict.
There is a large disconnect between Indian economy and share market at this moment. Even a slightest negative news can make the market crash. Most of large cap stocks are already overvalued and market PE ratio is at its high, which is the very important indicator of 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.
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.
There are two ways of investing in Mutual funds:
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:
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.
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
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.
Indian stock market is as sentimental as Indians themselves. 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 reccomondations and speculations mostly lose money. If you do not know much about share market, it is better to invest through mutual funds which are managed by fund managers.
In long term, any passive investment does not yield more than 9% profit in India. Property rates are going down, maximum rental income is between 5 to 8% and interest rate on FD are between to 5 to 8%. However, share market is booming from last 10 years. Share market can give you better profit if you invest smartly.
To minimize risk and to gain more than 10% return (subject to market risk), Mutual funds are good investment for the 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. In multicap funds, fund manager has more freedom to choose shares from different catagory. However, recently SEBI has restricted this freedon by making it compulsory for each multicap fund to have 33% exposure in small cap and 33% in mid caps. Small cap equity funds are associated with high risk and high return. It is better to avoid pure small cap fund in short term investment.
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.
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 wait till you 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.
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|
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.
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.
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.
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.
After industrial revolution, our life style and eating habits both changed drastically. Our calories requirement reduced but our fat and sugar intake increased because of mass production of everything including food items. This gave rise to obesity, diabetes and heart problems. All due to our eating habits. If you eat sugar that is more refined, sweets and high calories diet, you will become diabetic in few years. Similarly, if you will consume more fats (Oil, butter, animal fats, and meat) your cholesterol level will increase and it will block your arteries. You will suffer with coronary heart disease.
People fail to understand that our life style has changed drastically in last hundred years. Most of the middle class and upper class people need not to walk anymore. We do not indulge in heavy work too. However, our calories intake, sugar intake and fat intake has increased considerably compared to our daily activity. Due to which we faced many problem like obesity, diabetes and heart problems. To avoid this problem, stop eating processes and refined product, fried items, junk or fast food and red meat with high fat. Also, stop drinking cold drinks, beers, wine and high-energy drinks. Replace these things with healthy alternatives.
Instead of leaving everything together, adopt eating everything in moderation. If you like to eat meat, eat one small piece (not more than 75 gm) a day as it gives you protein which is essential for your body. Eat a balanced diet. A balance diet must have protein, vitamins, carbohydrates and small quantity of fat. Drink lots of water slowly in regular interval. Many dieticians recommend eating small portion of meals five times a day rather big meals three times a day. Keep some space empty in your stomach for proper digestion.
Several food products contains proteins. However, not all Proteins are alike. Proteins are made up of amino acids. There are around 20 amino acids found in our body. Amino acids are the building blocks of protein. They are organic compounds containing an amino group (-NH2) and a carboxy group (-COOH). As about twenty percent of the human body is made up of protein, amino acids make up a large proportion of our cells, muscles, and tissue.
Amino acids are integral to the biological processes that happen within our bodies, such as giving cells their structure, transporting and storing nutrients, as well as forming our organs, glands, arteries and muscles. They’re also essential for healing wounds and repairing tissue, especially in the muscles, skin, bones, and hair.
There are 23 proteinogenic (protein building) amino acids in total, and over 100 natural amino acids, which are non-proteinogenic. Of the proteinogenic amino acids, 9 are essential, 11 which are nonessential, and 3 of which are not found in the human body.
Essential amino acids are not produced naturally by the body, so they have to be obtained from the foods we eat. The 9 essential amino acids are:
Histidine, isoleucine, leucine, lysine, methionine, phenylalanine, threonine, tryptophan, and valine.
Foods containing most of the above amino acids are:
meat, fish, Chicken, eggs, cheese, dairy, beans, seeds, chia seeds, brazil nuts, oats, wheat, figs, whole grain rice, Peas, beans, legumes, onions, and cacao.
Whey protein is one of the few sources that naturally contain all 20 amino acids, making it a complete protein. Whey protein is a mixture of proteins isolated from whey, which is the liquid part of milk that separates during cheese production.
Milk actually contains two main types of protein: casein (80%) and whey (20%).
Whey is found in the watery portion of milk. When cheese is produced, the fatty parts of the milk coagulate and the whey is separated from it as a byproduct
There can be several reasons for chest pain; heart trouble is just one of them. So, if you have chest pain, do not be afraid until it is diagnose as heart problem. If your chest pain is not severe, keep yourself calm. If you will panic, it will increase your blood pressure which is not good for your heart. Smile and divert your attention to other things.
Seeking doctor’s help is a right decision. However, some doctors can try to frighten you and suggest for angiography. Angiography is an invasive test to check your heart condition. In this test a thin tube is inserted inside you though your artery and a dye are injected in your heart. Through x-ray doctor will monitor the heart condition. In case of blockage Doctor can perform angioplasty.
Before making your mind for any invasive test and further treatment, you must first go through non-invasive tests like ECG, ECHO, stress test, X-ray and blood test. Now a day, you can’t rely on one doctor or one test. First you should take medication in case your ECG is abnormal. However, do not consider ECG as final result. ECHO is more reliable test than ECG. As I said earlier, do not panic. Keep yourself calm and compose.
In most of the cases, life style change and medication can help you without angioplasty and by pass surgery. Even after angioplasty, you have to change your life style to remain fit for long time. Else you will develop blockage again.
So, it is always better to change your life style than to go for angiography.
Disclaimer: Writer is not a Doctor or Cardiologist. The above information is based on writer’s own experience and study from medical sites.