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Rising Cost Of Quality Education

Posted 5/20/2017

Between 2008 and 2014, the National Sample Survey Office (NSSO) reported, the average annual private expenditure for general education (primary level to post graduation and above) has shot up by a staggering 175% to Rs6,788 per student.
During the same period, the annual cost of professional and technical education has increased by 96% to Rs62,841 per student.

The mounting cost of education in recent years has eaten into a major part of the household budget. An Assocham survey showed that 65% of parents spend more than half their take-home pay on their children's education, extra co-curricular activities placing significant burden on their family budget.

According to the survey, parents spending on a single child's education has gone up from Rs 35,000 in 2005 to over Rs 94,000 in 2011 on such items and activities as integral to the schoo

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How to START a SIP and use it for debt and equity funds

Posted 1/27/2016

Here's the step by step approach to set up an SIP

For most of us a systematic investment plan (SIP) means an SIP in an equity fund, and mostly for long term wealth creation to achieve a goal which is some years down the line.

However, the fact is that you can also have SIP in debt funds.

Depending on your time horizon for investment, from a few months to several years, you can choose the appropriate debt scheme and set up the SIP accordingly.

Depending on your requirement, you could also set up multiple SIPs. Some financial planners can even help you set up a structure where you transfer money only once at a pre-fixed interval, and your money goes into several SIPs.

There are a few factors to consider while setting up a debt SIP. 1) Select the appropriate scheme. Like equity funds, debt funds also come in various flavours and so each type of scheme can serve a different purpose. For example, if your time horizon is a few months and the purpose is to pay the annual health insurance premium, you can use an SIP in a short term debt fund. On the other hand, if your investment horizon is for a few months, liquid fund or ultra short term fund could be a better alternative, financial planners say.

To set up an SIP at the portfolio level, three factors are taken into account: risk profile of the investor, amount of money to be invested and the time frame.

For long term goals, use diversified equity schemes

Any investment has to be rated and evaluated by three yardstick:


liquidity and


Further tax-deductibility and tax-free maturity should also be considered.

Now comparing PPF, NPS and ELSS schemes because all are taxdeductible when invested.

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Parents not prepared to fund children's career options: Survey

Posted 11/14/2015

Modern parents still think their children will grow up to become either a doctor, engineer or do an MBA.However, today's children have set their eyes on unconventional careers goals, like becoming an artist, an actor, a writer or a musician. Parents are under-prepared about what their children want to be when they grow up and, hence, they may not be able to meet the full costs related to the career paths, says a survey of families by Axis Mutual Fund.

Youngsters dream of twothree careers at the same time, most of which are unconventional ones, while parents expect them to take the traditional career path, said Chandresh Nigam, MD & CEO, Axis MF. “Today's children have a great number of op tions while parents don't think on those lines,“ he said.

The first leg of the two-pronged study included an experiment done with a group of parents and their children.The participating children were asked to draw a picture of what they would like to be come in the future, while parents were asked to paint what they would like their children to become. They were not allowed to interact with each other during the experiment.At the end, the pictures drawn by the parents and their children hardly matched. In the second leg, a largescale survey of 1,000 parents with children aged 4-12 years across 10 cities -conducted by market research major Nielsen -showed that for a parent, children's education and education-related expenses were the top priorities for 83% of the parents. Retirement planning and EMI towards loans were found to be at relatively low levels in terms of priority . The survey also found that more than 75% of the parents were likely to support their children pursuing what they wanted. However, they still preferred their children to pursue conventional and safer career choices.

The safety aspect of the parents were also reflected in the kind of financial products they invested in to meet the expenses towards their children's career goals.

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Why You Shouldn’t Buy Real Estate

Posted 7/3/2015

 Real estate makes sense when you’re big. Thanks to economies of scale, everything starts to get cheaper: labor, materials, property management, closing costs, lawyer costs, accountant costs, etc. Plus, you can afford to delegate many of your lower-value tasks.

What can you do in the interim? If you’re passionate about real estate and view it as a hobby, by all means get cracking.

If you’re only interested in real estate as a way of making money, then you have two options:

  •     Learn everything you can whilst saving up, so that when you enter the market you can start with economies of scale.
  •     Find someone who has economies of scale and invest along with them. Notice I said along with them—make sure they have skin in the game and a strong track record.

What do you think?

Before you can be confident that you should invest in real estate, you have to know the reasons why you shouldn’t.  Some people invest in real estate with high hopes only to sell out later with a bitter taste in their mouth.  These people tell a terrifying tale.  They describe what a horrible experience it was, how they lost money doing it, and how they had nothing but one problem tenant after another.  Anyone listening to their experience would reach the conclusion that only a fool would invest in real estate.  But their story is tainted by a mismatch between their expectations and reality.

 Consider the following reasons why you may not want to invest in real estate.

1. It takes work and efforts.

Picking a good real estate option is as tough as identifying a good stock option. The following is a short list of some of the important tasks you need to be able to do:

  1. Find and determine the right kind of properties to purchase;
  2. Properly prepare your properties to attract the best tenants;
  3. Be able to properly screen candidates to find the best tenants;
  4. Take calls at many different hours and either personally address the issues or coordinate with professionals to fix the problems;
  5. Collect rent and chase late rent;
  6. Evict tenants not paying rent or violating the lease;
  7. Pick-up, clean-up, and fix-up properties when tenants move out.
  8. Identify and perform routine maintenance to retain the value and quality of your properties.


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25 important lessons that will lead you to success full investing

Posted 7/2/2015

Important Lessons To Be Learnt For An Avid Investor:

Lesson 1
Before Investing, ask yourself these questions:
- Why should I even invest?
- What am I investing in?
- What is liquidty factor?
- What are percentage returns?
- Will the return beat inflation?
- When do I need this money back?
- Is it the suitable investment option for me?
- How much safe is capital or expected returns?
- Is the valuation reasonable enough to invest in equity?

Lesson 2

Save as much as possible and start investing as soon as possible.

Lesson 3

If you are afraid of stocks and mutual funds, start by investing small amounts to gain practical experience of positive and negative portfolio returns.
Lesson 4

Have a plan. Even if you think it is difficult to achieve it. Having it is more important and if you cant make your own plan, get in touch with good financial planners.

Lesson 5

Invest whatever is possible towards your goals. And it seriously doesn't matter initially whether its small or big amount. Just go and do it.

Lesson 6

Are you a regular person who goes to office and does not know much about stock markets? Stick to investing in mutual funds via SIP.

Lesson 7

Inflation can kill you. Seriously. Always include a realistic inflation figure while making your financial plans..

Lesson 8

High returns expectation can also kill you. And that is because you will start making buy/sell decisions in line with your expectations.
Lesson 9
Have an asset allocation plan and follow it religiously. And unless the valuations become extremely compelling (like PE<14), keep 20% in debt.

Lesson 10

Any money which is not required for next 10 years or more, should be invested in well diversified equity or balanced fund. Remember this as this is very important.

Lesson 11

Any money which is required within next 5 years should be invested in debt instruments.

Lesson 12

Always be ready to face short term notional losses. And remember that your returns could be Zero or Negative, even after 5 years. But over a period of more than 10 years, the general trend is Up.

Lesson 13
If markets crashes then be jovial as it will boost your return significantly in the long run.

Lesson 14

Invest some money whenever there is negative news all around and during panic selling to boost return.

Lesson 15
Always keep track of market valuations & your asset allocation. Set your own rules for asset allocation that suits you.

Lesson 16
Review performance of the mutual funds in your portfolio on an annual basis. And replace the under-performers after thorough analysis. Never replace a fund if it underperforms the benchmark for a quarter or two. You need more time (2+ years) to know whether its a good idea to move out of a fund or not.

Lesson 17

Avoid churning your funds frequently as it will not help you.

Lesson 18

For choosing Mutual Fund schemes, always stick to reputed process oriented fund houses and evaluate funds based on all parameters.

Lesson 19

Watch business channels. But only for entertainment. Most advise being given, is for short term and not for you.

Lesson 20

Don’t invest because your friend or relative is investing. Your risk and expectations will almost always be different.

Lesson 21

Mutual Funds are the best investment vehicle for retail investors.

Lesson 22

Direct equity investing requires a lot of additional efforts. And these range from evaluating a company to regularly tracking it to finally, exiting it.

Lesson 23

In Mutual Funds, always invest in Growth options. If you require money, you can always withdraw. No point going for the Dividend option.

Lesson 24

Do not panic during bad times / bad news. And don’t get too excited in bull markets. Always stay calm.If you could not decide how to react then always choose monthly SIP way of investing.

Lesson 25

Make it a point to have adequate Term Insurance and health insurance cover, from an early age.

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Do's and Don't for investors...

Posted 7/2/2015

Things Investor Must Avoid:

  1. Dont be late start investing early.
  2. Do not put all your early savings into mixed products like insurance, keep your investment and risk cover seperate.
  3. More you will be late in creating a plan for investing, lesser your money will grow.
  4. Plan - Invested - Maintain, during the early phsae of investing.
  5. Do not play with fire without proper gear.
  6. Play safe do not go over board with my direct stock investing.

Things Investor Shall Take Care:

  1.     Save and invest as much as possible. And when markets were down, increase investment.
  2.     Even if in doubt follow Systematic Investing diligently.
  3.     Identify mistakes ASAP and start focusing on Mutual Fund this provides you indirect expertise of stock investing.
  4.     Get a financial plan and invest as per the plan that has a clear purpose.
  5.     Cover your liabilities with adequate Term Insurance plan.
  6.     Realized and act towards separating Insurance from Investment always.
  7.     ULIPs is a simple NO.
  8.     Learn the importance of Asset Allocation.
  9.     Never quit mid-way, follow your financial plan.
  10.     Cut losses in direct stocks and re-invest the money (dividends)as per the required asset allocation.
  11.     Remain invested for longer spans.
  12.     Invested in well diversified Mutual Funds across fund houses.
  13.     Use Liquid Funds to park your emergency funds rather that bank FD or savings accounts.
  14.     Try to keep away from real estate, no matter how crazy plans looks, its simply stucking your money, with equal risks involved.


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How a Corpus of Rs 3.7 Crores is created in 10 Years !!

Posted 7/2/2015

These are the rules set by an NRI investor, who has folowed an disciplined investment approach and seen his investment going negative from almost double in 10 years. Then for the first time in his life, he evaluated his complete portfolio of Fixed Deposits, Debt Funds, Equity Funds and individual stocks as one entity.

And based on analysis, he set following rules for himself:

Rule 1: Save as much money as possible for the purpose of investing.

Rule 2: Before investing, look at your asset allocation and in general, market’s PE valuations.

Rule 3: Continue investing via SIP as planned. Do not stop SIP midway for any reason.

Rule 4: Broadly keep the asset allocation between 60% - 80% in favor of equity.

Rule 5: If markets fall below 18PE, increase SIPs.

Rule 6: If markets fall further below 16PE, increase buyout, and if markets fall below 14PE, invest maximum amount in equity in lumpsum.

Rule 7: If market crosses above 23PE, restrict investment amount in Equity.

Rule 8: Above 25PE, reset equity allocation to something in between 65% - 75%, above 27PE, do not invest further and reset the asset allocation to below 65%.

Important Note: Equity allocation includes mutual funds and direct stock investments.

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Number of unemployed is rising

Posted 6/25/2015

Unemployment is clearly a problem in the city but what is more worrying is that between 1995 and 2013, the number of unemployed holding diplomas of various courses has more than doubled from 21,705 to 44,934. This data--part of Delhi Government's Economic Survey 2014-15--raises a serious question about the quality and future of diploma courses and vocational training programmes floated from time to time.

In 2013, Delhi had 8.5 lakh unemployed people, significantly lower than the 11.3 lakh recorded in 1997. However the data reflects a very worrisome trend from 2010 onwards as, after falling to 4.1 lakh in 2009 the number has risen steadily . It was 4.9 lakh in 2010, became 6.4 lakh in 2011 and then rose to 7.7 lakh in 2012.
Not only is the rise worrisome but also the educational status of those reeling under the effect of unemployment is a cause of concern and will be a major challenge for the Kejriwal government that won support from youth on the promise of “degree, income aur wi-fi“. The AAP government has talked about vocational training and skill development as part of its long-term education plan.

The Economic Survey makes it clear that many di ploma holders are not getting jobs easily .

In 2009, the num ber of unemployed in this category had gone down to 8,766 but rose to 23,361 in 2010 reached 37,554 in 2011 and 44,934 in 2013. The authorities need to fo cus on the vocational courses and diplomas offered in the city. These need to be clearly aligned with the needs of the market.

However, the large number of jobless youths who have studied up to Class XII shows the lack of courses linked to livelihood. The number of unemployed graduates and post-graduates in 2013 was 1.9 lakh. Those below matriculation and seeking jobs added up to 1.3 lakh.

It remains to be seen whether it will be able to deal with the immediate problem of joblessness.

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