Journey of Indian Stock Market

*Journey of Indian Stock Market* :
*1979* - Sensex = *100*,
*1981* - Sensex = *173*,
*1983* - Indian Cricket Team winning World Cup. Sensex = *212*,
*1984* - *Indira Gandhi* shot dead & Bhopal Gas tragedy. Sensex = *245*,
*1989* - *Hung Parliament* with Congress outside support. Sensex = *714*,
*1991* - *Rajiv Gandhi* assassination. Sensex = *1168*,
*1992* - Indian Economy opening up. *Dream budget* by MMS. Harshad Mehta *Scam*. Sensex = *4285*,
*1993* - Blast in Mumbai. Also at BSE buidling. *Riots all over*. Sensex = *2281*,
*1996* - Indian stock market goes digital with NSE's new trading platform. Sensex = *3367*,
*1999* - NDA coming to power with *Atal Bihari Vajpayee* as PM. Sensex = *3740*,
*2000* - Technology boom. Sensex = *5001*,
*2001* - Gujarat *earthquake*. Sensex = *3640*,
*2003* - Big bull run start in Dalal Street. Sensex = *3049*,
*2004* - UPA coming to power with Left party support. Sensex = *5591*,
*2006* - Sensex conquering = *10000*,
*2007* - Sensex conquering = *20000*,
*2008* - Sensex falling after touching *high* of *21200*,
Crude oil rising upto $ 147.
*2009* - Sub-prime crisis in *USA* bring *financial instability* worldwide. Sensex = *9568*,
*2010* - Satyam *scam*, Common wealth scam, Telecom scam. Sensex = *17590*,
*2013* - Young Raghu Ram Rajan appointed RBI governor. Sensex = *18835*,

*2014* - *BJP* alone conquering *283 seats* in Lok Sabha and NDA coming to power with 330 seats. Sensex = *25000*.
(March Closing Sensex quotes for all above 👆)
🎯 *04/03/2015* - Sensex = Life Time *High* *30025*..!
*28/10/2016* - Sensex = *27958*.
*28/12/2016* - Sensex = *26210*.
*Sensex* has *Grown* almost *300 times* in last *37 ¥ears*...!
👉​​​ It is *Clear* that in *all Adversity & Prosperity* Sensex has *Grown*.
👉​​​ *Surely* there have been *Downside also*.
 But ,
$ooner or later that downside have always been overcome.
Be a *Systematic & Disciplined* Investor. Save Wisely, Invest Smartly!

CONSIDERATIONS for financial plan

*CONSIDERATIONS FOR 2017*
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*1. ON EARNING:*
Never depend on single income. Make investment to
create a second chance.
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*2. ON SPENDING:*
If you buy things you do not need, soon you will have to sell things you need.
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*3. ON SAVINGS:*
Do not save what is left after spending, but spend what is left after saving.
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*4. ON TAKING RISK:*
Never test the depth of a river with both feet.
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*5. ON INVESTMENT:*
Do not put all eggs in one basket.
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*6. ON EXPECTATIONS:*
Honesty is a very expensive gift. Do not expect it from cheap people.
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*7. Past* is a waste paper, present is a newspaper, and future is a question paper. Come out of your past, control the present, and secure the future.
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*8. When bad things happen* in your life, you have three choices. You can either let it define you, let it destroy you or you can let it strengthen you.
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*9. Our eyes are in the front* because it is more important to look ahead than to look backwards.
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*10.* We use pencil when we were young, but now we use pens. Do you know why? Because mistakes in childhood can easily be erased, unlike now.
*Advance Wishes for a Happy and prosperous New year 2017 !!*

HOW THE CURRENCY VALUE CHANGES?

HOW THE CURRENCY VALUE CHANGES?
Please go through the below simple Economics,  which will give a good idea on why Taxes are more important not only for Government but also how beneficial to its  citizens, indirectly!
A Government should invariably need GOLD to run the country for their day to day business!   Since the Gold cannot be pumped into market, it chose to use the Notes/Currency  instead!
And printing  the notes/currency  is done under the watchful eye of the IMF ( International Monitory Fund).  A Govt. cannot print notes left & right! It has to be approved by IMF, however it can print any denomination of notes but it should be equivalent to the total weight of the  Gold,  the Government owns.
Let us compare two countries! I have taken America and India because we always compare our country with America! 
For calculation purpose let us assume that , Government of America holds  1 Ton of Gold and Government India   holds  same 1 Ton of Gold
And now:
America printed $ 1 dollar notes of  1000 nos which is  worth $1000.  So,  1 gram of gold is equivalent to 1 Dollar  (1000 grams=1000 notes)
India  Printed  ₹ 1  notes of 1000 nos  which is worth ₹ 1000. So here 1 gram of gold is equivalent to 1 Rupee ( 1000 grams=1000 notes)
Now the value of  Dollar and Rupee are same, i.e. $1 equivalent to Rs.1
Now,  American government releases $1000 notes into the market and sets 20% as tax for each transaction.  And   it  receives back $ 200  in the form of taxes.   Now,  the American Government, with that $200,  buy more 200 grams of Gold with that money and release another $200 worth of notes in the market. So now the American Government  hold 1 Ton and 200 Gms of Gold and American Market has  $1200 worth of notes.  And still 1 Gram of Gold is $1.   And this will keep on going  and the 1 Gram of Gold is $1 always as long as Government receives 100 % tax amount in return as it buys gold for the worth of tax received and printing more notes equivalent to the gold and releasing in the market!!
Now in India,  the   Indian Government too releases  ₹ 1000 in the market and sets  20% as tax.  But it  only receive back  ₹ 50 in the form of taxes!!  Which means only ₹ 250 of the released amount  were transacted officially!    Because balance   of tax  for ₹ 750 is till rotating in the hands of unwanted elements in the market, who does not want to pay tax!  This amount is “unaccounted money” which is called ‘black money’.  Though this ₹ 750 still in the market,  it is not accounted in the books  of government officially.   So,  the money in the market is only Rs. 250 as per government records!  Whereas ₹ 750 is also being used in the market! This is called parallel economy!!   At the same time  the government now can only buy 50 Gms of gold from the tax amount it received.  So the Govt buys that 50 Gms gold and release ₹ 50 worth of notes into the market. Now the money in market is ₹ 300 (₹ 250 + ₹ 50) only officially,  whereas it is supposed to be ₹ 1050.  At the same time the Govt. has to meet  the demand for more notes, because those ₹ 750 has gone into unaccounted!   So the government then decided to print more ₹ 750 notes  and to release them in the market. Here comes the IMF which does NOT allow this !!   It asks the government to reduce the value of the rupee because the government is ‘pumping’ more notes against the same weight of Gold it holds, that is 1 ton 50 Gms!  Government has no choice (because it did not receive 100% tax return  for the amount it released and it could not buy more gold)  and hence reduces the value of Rupee and pumps ₹ 750 more notes into the market. So the market has now ₹ 1800 whereas Govt still only hold 1 ton 50 grams!! 
So now the value of ₹ 1 has gone down to ₹ 1.71!!
So when compare to US Dollar  as above, which was $1 to Rs.1, it is now $1 to ₹ 1.71 !!!
The notes are pumped into the market  regularly to meet the demand of the market  and the value of the Rupee is depreciated every time when Gold reserves are same.  That the reason why the Rupee is 67.80 to a Dollar today!!
Had the Indian Government receives 100% tax in return, the value of Rupee would have NOT gone down drastically!! 
Now, can you all understand why the Governments need taxes?! And how, we citizens are benefited?   If Rupee is strong and stable then the value of our properties/assets  will be strong too!
That is the reason why the America is the richest country as  95% of citizens ( at various brackets) are paying their taxes!!     Whereas in India?? Can anybody guess?! No marks for right guessing!  Just type in google “percentage of taxpayers in India” and you would know!! I am sure your head will go down with shame!!  
Come on…did you all check that figure in google?!?!   Don’t we feel shame on this figure!!? We talk of so many things, demands benefits and badly compare us with those Western Countries for all that infrastructure,  system, cleanliness, ever lighting cities with no power cuts etc..etc!!  We praise them! We appreciate them!    Whereas nobody, I repeat nobody, compare and raise voices on how much  are we contributing to our own country as part of tax!!!
This article is not supporting  Modi OR whosever talk against demonetization! This Article is to bring about  and to educate on how the Black Money damages and ruins the Country!!
I know you will send this  article to your friends and families but I request you to circulate to ALL of your enemies too!!

Fundamental of Financial planning

*Fundamental of Financial planning*
1. 30 % of your income must be used for monthly living expenses.
2. 30% of your income must be used for Liabilities repayments.
3. 30% of your income must be SAVED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations………..
5. 6 moth monthly income must be available for emergency fund  { LIQUID FUND },  it can be CASH or cashable investments.
6. Home loan must be registered and apply  on both husband and wife name.  {Both can get benefits on Home loan Tax benefits}
7. Buying second house for investment is not advisable  [ Survey reports - it will fetch you only around 3% return]
8. After age 45 years not supposed to enter into any BIG LIABILITIES [Higher education of children and wedding of children will happen around 45 to 50 only]
9. Joint account is compulsory @ Bank savings account.
10. Property must be registered on both Husband and wife name. [As per legal act – after husband first legal heir is wife, after wife it will go to children only]
11. Regular check on Nominations at all financial instruments.
12. Only in insurance policy,  Claims payable to Nominee.  In other financial instruments legal heirs certificate is must to get back the settlement
13. Don’t take any financial investment decisions by EMOTIONALLY
14. MEDICLAIM is must [ in spite of Group mediclaim coverage given at office [After retirement there is no mediclaim coverage. After 50 years its very tough to enter into mediclaim]
15. For your jewelry LOCKER,  Only one lakh is payable by bank,  if theft or fire happen at bank. Provided insurance done.
16. Like same way Government guaranteed only one lakh for your FD also. [Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance]
17. Must know all tax implications.  You cannot avoid paying tax. But you can minimize by way of investments.
18. All financial documents must be kept safely.
19. Financial investments must be followed through personal financial advisor.
20. Review your financial portfolio every six month.

Demonitisation

And 125,000 retired Income Tax officers aged 58-61 years have been recalled by Modi. They have 3 day training from 28-30 Nov and join work on 1 Dec. What work they will do is anyone's guess.
According to a retired  income tax commissioner this is how the Government plans to remove black money from India ?
Step 1 : Demonetise Rs.500 and Rs.1000. get Rs.1420000 crores out of the market.
Step 2 : Print Rs.2000 and Rs.500 and Rs.100 in the replacement market.
Step 3 : Dismantle the cash economy by not allowing any cash transaction above Rs.10000 without PAN or Aadhar.
Step 4 : All salaries and business expenses required to be made in cheque or RTGS only to claim expenses in Income Tax. All cash transactions to be disallowed.
Step 5 : A Cash Limitation order will be issued that will allow only maximum cash allowance of total Rs.50000 per person.
Step 6 : As the cash economy is destroyed after a few months, the Rs.2000 note will be demonetised with a limited notice.
With very limited cash available in the market, the cash economy will be strangled to death.
Step 7 : As some of the cash economy will try to shift to Gold, Gold coins manufacturing and imports will be banned.
Step 8 : A Gold and Precious Jewellery control order will be issued which will allow only 500 gram of Gold per person and a certain value of other jewellery. Relaxation will be given for existing jewellery if declared to authorities as per format. After a certain date, all undeclared Gold and jewellery will be liable to be taken over by the state.
Step 9 : A Property and Asset Declaration order will be issued where all property (Land, Buildings and Flats) and shares will have to be declared to the authorities in a particular format. After a certain date, all undeclared property or shares will be liable to be taken over by the state.
That will complete the removal of black money from India.
Forwarded as received so u can plan appropriately before its too late.

RULE 72

*RULE 72*
*Whats Rule 72?*
In personal finance, if you divide the number 72 by the rate of return, you get to know the number of years it will take for you to double the money..
Eg: if the rate of return is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of return.
Returns:We can use this rule in reverse to know the rate of return needed to double your money to achieve your set goal.
Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of return to double your investment amount in 5 years.
Inflation:
This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years.  That is to say, if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved..
Hope this helps you in your day to day investments and other finance related activities.

investments

Benefits of filing your tax

  

•      Required in all loan applications from banks.
•      Required to obtain visa outside India.
•      Required to obtain credit card from banks.

Investment - 7