Category Archives: Financial planning

financial planning for success

Is Indian economy size $2 Trillion or $8 Trillion?

That is a $6 Trillion question!

GDP1According to World bank data, Indian economy crossed $2 Trillion in 2014. But Prime Minister Narendra Modi in his recent US trip said, ‘We are  $8 Trillion economy today my dream for India is making India a $20 Trillion (roughly Rs. 13,23,27,000 crores) economy’. Astonished?

When I heard this statement, i first checked the year on my mobile and computer, both are showing 2015. I thought may be I missed 10 to 15 years over night :-) . Even at a better than expected GDP growth rate of 8 to 10%, it will take India at least 10 years to become a $8 trillion economy. so what is the catch? Is it an Oxymoron?

You will be surprised to know that both statements are accurate, to know how, you need to understand the term Purchasing Power parity. Continue reading

India Story = Function(Population)

As a famous epithet from a famous Bollywood movie goes ‘Picture abhi baaki hai mere dost!’‘

With all the news surrounding slowing global economy, particularly China slow down, why India remains a rare bright spot in the world economy, doing better than trouble spots such as Brazil, Russia and South Africa? With growing youth segment, rising incomes which is leading to increase in purchasing power, higher brand consciousness, growing urbanization, rising internet penetration and easily available credit, Continue reading

Why Rupee fall is not all bad news?

In last one year India Rupee depreciated 10% against US Dollar, from 60.38 on Sept 9th 2014 to 66.68 on Sept 8th 2015. This might sound like a big fall, particularly If you consider the long-term average of around 5%(Ref Table 1), Rupee depreciated more than double the average in last one year.

TABLE OF RUPEEA mere statement by US Fed about ending its quantitative easing programme, sent the rupee to all time low of 68.8 in Aug 2013. This event also had a similar impact across the world currencies. Continue reading

Deciphering SENSEX and NIFTY!

While there are several indexes which represent the stock market in India, Sensex and Nifty are the salient indexes which represent Indian stock market and these indexes are tracked at a global level to see how Indian stock markets are doing, similar to how we track  Dow Jones and Nasdaq indexes of US stock market.

For a stock market investor, it is always interesting to see how Sensex and Nifty moves impacts individual portfolios? To understand this, first we need to understand what are the stocks that comprise Sensex and Nifty Continue reading

Top 10 mistakes of investors in stock market?

Common trite of both a novice investor and veteran investor are the mistakes they make independent of history of learning’s.

mistake.11k1.Being patient with losers and impatient with winners:Investors hold onto losing stocks too long in hopes they will come back to their original price while selling their winners too early. Several of these winners which are sold out early might be multibaggers down the line.

2.Fear and greed: Selling on fear and Buying on greed. As the legendary investor once said, it should be the other way around ‘Buy when every body else is selling and sell when every body else is buying’. It is a human psychology to react in this manner, but if you want to prevail in the crowd as smart investor, in these testing times ‘patience’ is more important attribute to have during the turbulent times.

3.Falling in love with stock: After doing lot of research you pick a stock, but over a period several things change, with new competition, they might be loosing market share, earning growth is decelerating, debt might be piling up, Continue reading