Tool Kit | wealthymatters

Bet On Sure Things

April 26, 2013 2 Comments

wealthymatters

Both investments have an 8 percent average annual return. But Investment #1 has a wide range of returns, while Investment #2 has a stream of returns that more tightly hug the average annual return.

If each of the points on the charts represents a monthly return and both investments achieve the same end result, which investment should you choose?

The answer: Investment #2 — the one with the tighter distribution of returns since it gives you a higher probability of achieving a higher return. Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with average returns, billionaire investors, investing in stocks, postaday, Rakesh Jhunjhunwala, Risk, standard deviation

Sudipta Sen’s Letter

April 26, 2013 Leave a comment

Here is the most interesting takeaway I have from following the Saradha Realty Case so far: sudipta-sen-letter-to-cbi

There is no way to conclude that this letter-bomb is the whole truth.Nor can we conclude that it is not a way to manipulate the reaction of people in high places,but this letter makes for interesting reading.Do read it.At the very least it will give you a feel of real life business in India at the few hundred crore level.Now wouldn’t it be interesting to have a peek at business at higher levels?

Filed under Entrepreneurship, Theory, Tool Kit Tagged with Arjun Datta, Asim Dasgupta, Bhasank Foods Pvt ltd, Bhudeb Sen, Debabrata Sarkar Nitu, East Bengal Club, Global Industries Ltd., Indrajeet Ghosh, Kunal Ghosh, Madhyagam Shopping Mall, Mamata Banerjee, Manoranjana Sinh, Matang Sinh, Mithun Chakraborty, Nalini Chidambaram, P Chidambaram, Positive Groups, postaday, Pranab Mukherjee, Rajesh Bajaj, Revlon, Sajan Agarwal, Sanchayini Finance and investment company, Sandip Agarwal, Sanjay Jain, Sanjib Jaiswal, Santanu Ghosh, Saradha Construction Company Private ltd, Saradha Realty Case, Shib Narayan Das, Shiva Group, Sudipta Sen, Suman Kalyan Chakraborty, UK Sinha SEBI

Historic LIC Bonus Rates

April 25, 2013 2 Comments

Sr.No	Valuation Year	Whole Life Plan	Endowment Plans
1.	1957	16	12.80
2	1959	16	12.80
3.	1961	16	12.80
4.	1963	17.50	14
5.	1965	20	16
6.	1967	20	16
7.	1969	22	17.60
8.	1971	22	17.60
9.	1973	22	17.60
10.	1975	22	17.60
11.	1977	25	20
12.	1979	31	24.80
13.	1981	35	28
14.	1983	42.5	34
15.	1985	55	44
16.	1986	65	52
17.	1987	72.50	58
18.	1988	77.50	62
19.	1989	80	64
20.	1990	82.50	66
21.	1991	84	67
22.	1992	84	67
23.	1993	84	67
24.	1994	84	67
25.	1995	86	69
26	1996	86	69
27.	1997	88	71
28	1998	91	71
29.	1999	91	71
30	2000	95	71
31	2001	80	71
32.	2002	80	65
33.	2003	80	58
34.	2004	80	51
35.	2005	71	45
36.	2006	66	40
37	2007	70	42
38.	2008	70	42
39	2009	70	42
40.	2010	70	42
41.	2011	70	42
42.	2012	70	42

Now go ahead and project the most likely returns on your insurance policies.

Filed under Paper Assets, Tool Kit Tagged with LIC bonus rates, life insurance policies, postaday, returns from your insurance policy

ICOR Figures And Corollary

April 24, 2013 2 Comments

wealthymatters Incremental Capital Output Ratio (ICOR) is the additional capital required to increase one unit of output. This ratio is used to measure the efficiency of an industrial unit or country as an economic unit. The lesser the ICOR, more efficient the organization.

India’s ICOR has more than doubled in the last year,meaning we are now half as efficient as before in the use of our capital.

In 2011-12,we needed to invest 5.4 Rupees to make 1 rupee,i.e we were getting an average 18.5% returns on our money invested in businesses.In 2012-2013,the returns fell to 8.7%.

So what sort of returns do you make on money invested in business?Is it above or below the national average? If you feel business is slower or that its increasingly difficult to turn out a decent profit.you are not alone…….

If this is the sort of returns promoters on an average can make on money,guess what investors , especially retail investors are likely to receive….. Read more of this post

Filed under Tool Kit Tagged with agro investment, alternative investment funds, capital appreciation, chit fund, collective investment schemes, credit societies, ICOR, Incremental Capital Output Ratio, investing in commercial real estate, investing in gold and silver, investing in land, investing in residential real estate, MLM Schemes, ponzi schemes, postaday, returns from business

Free Financial Plan

April 23, 2013 Leave a comment

wealthymatters Whether you decide to DIY or hire a financial planner,there is no denying that you can benefit by going through the process of defining yours goals,establishing a time frame,generating numbers to fulfill those goals, focusing on your risk taking appetite and ability,your incomes and expenditures,assets and liabilities etc.

Nowadays its common to get calls from assorted fund houses and advisory businesses offering to draw up a free financial plan for you.You could try them out as long as you can withstand sales pitches and walk away without buying products and services of dubious value which you don’t need.Fee based financial planners too offer a free first consultation and might give you a sketchy plan as an incentive to hire them.

If you are looking for a planner you will be forced to kiss all the frogs around before you find one who will do.Even then as you progress wealth wise and experience wise you will outgrow your planners and advisers For you, going out to meet these advisers is a must.However, if you are upto to do a DIY plan you could just use the link :Here and save yourself a lot of time and hassle.Most free plans are unlikely to be better than this.And this one is a good starting place and will give you some fast answers.