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How to Save, Invest and Live Life king size ?????



1.81 K Views | Rishi Kashyap | 4 FOLLOW
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    How to Save, Invest and Live Life king size ?????


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    All of us want to get rich, want to live happily yet not many seafarer really care for investing .Neither did I!!! .I was always afraid to ask any1 about the financial jargons, was always afraid that i might loose my hard earned money.
              It all started with 1 of my cadet who told me to start investing as early as possible .It was he who recommended me a particular Mutual Fund to start with and I did( though i admit that i was still afraid ;-)).As always with mariners, we lost touch but when after 2 contracts i checked its status(NAV) ...phew the money doubled in just a year..WOW!!!
                 It was then that i really thanked him and indulged in my financial spree.My friends joined and in turn we shared our knowledge.One taught me bits about shares( He told me that just 10,000 rs invested in a scrip like "Unitech" 4 Years ago would have made me a crorepati !!!!) while the other about properties .It was not late that i realised that i was already late ....or was I ???I don't think so !!!
                With this note i have started investing and want to share with every mariner what i have learned and in turn would love to know their experience .My experience as well as my collection of "know-how" about mutual funds from net is attached here.I would also recommend every mariner to do read a best selling novel "Rich Dad ,Poor Dad" ( Strangely its written by a mariner who left sea in a very planned manner).Also would recommend the interested ones to spend some time on sites like "moneycontrol.com" specially the wealth Tab and the various calculators just to understand inflation and other jargons for retirement plan...
                 Even though i would not like to discourage anyone but yes , I too admit that each share , each mutual fund ,each property has its own set of risk involved and you have fair chances of loosing money ( the above said mutual fund almost tripled my money in approximately 2 yrs but after the january crash of Sensex the amount remains just doubled for me, presently...think about those who invested in it at its peak :-(().The point which i would stress again is can't you really afford to take such risk???Of course you can ...shipping gives you enough time(..not to mention the money) to do your own research about anything and then invest. With this note I will end and will for sure post my "Shares " experience too later. Bon Voyage . :-)

    Rishi Kashyap | | EDIT | REPLY

      X How to Save, Invest and Live Life king size ?????
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      Dinesh is quite right... stock market is volatile so better to invest your money in FD's and properties in good locations.

      Abhishek Anand | | EDIT | REPLY
        X How to Save, Invest and Live Life king size ?????
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        Under the current scenario,I would say that we must not underestimate the power of "Fixed Deposits".So,If u have not already started, better start now.

        Dinesh Kumar | | EDIT | REPLY
          X Re:How to Save, Invest and Live Life king size ?????
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          Hello all. Reading the post  by Jahajee, I think that I should add that if you have any idea about the share market go for shares(equity). If not, then go for Mutual Funds. Nevertheless always try to learn how the market operates by learning their trading methods(apply jahajee prinicple of "read the manual & only then finger around with the equipment" here too). Investing is a very good choice and will help you to retire in the planned manner. So go for it and please post some advice regarding investments so that new people in the business benefit from your knowledge. Thanks

          Deepesh Katkar | | EDIT | REPLY
            X SHARES - Which, how and when to buy ??
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            Hi doston , in the present scenario FD is a waste of money.Think over it , with inflation going more than 10 are you really gaining or loosing???On top of that I believe that if one starts investing at the beginning of his career then not only will he catch up fast but he will be able to take maximum risk and for sure Shares are volatile as told by some of our friends, the point is reduce the pumping rate as we do for volatile cargo in case of Tankers.Thats another way of saying that go slow with shares .Do your homework prior buying any shares. Always remember what "Warren Buffet" said( just google for this name and u will know about the god of investing)that by buying shares he is buying company ...so always buy good company.

            As told by afrodeepesh I'm attaching the RATIO ANALYSIS and their meaning wrt the shares , hope this helps u in selecting the shares .Ppl say that don't go for recommendations while I say do whatever you want just do "read the manual prior fingering" coz we are in such a profession where we can take early financial risks and for sure we have ample time to learn anything we want.I remember one of my friend who started to invest in F&O without doing his homework he made some 30-40 k rupees initially and later lost 160 k rupees in Jan market crash.He went for sailing 1-2 months after that but that brave-hearted boy told me that this failure will not be the end and next time he will be back with the right spanners.He is unmarried and said that there will be certain time till which he will take max risk after that he too will settle down with FD and not to forget the bonds.He aims to be a crorepati by the age of 30 and leave shipping peacefully and live happily everafter!!!." he is employing his time well coz he wants to live in leisure"

            Anyway here are few more info which an investor might find handy .
            "The 2003 Budget abolished income tax on dividends.Dividend income is now  completely tax free in the hands of an investor.
            Bonus share are not subject to tax when they are issued.
            For IPO-If one does not get any allotment , it will result in a loss of interest during the intervening period unless you are using " stock invest ", a new method of applying for new issues introduced by several banks at the instance of SEBI.
            Buy on Rumors and sell on news.
            You must consider minimum 6% return per year from a scrip coz if it is not, then u are loosing money on that script .The same money invested in FD would have given a better return .One should disinvest from such a scrip unless one has strong reasons for not doing so at that point of time. Also remember that the dividend yield is usually not more than 2% to 3%  on most indian stocks, so do keep a track of the dividend received by you on your money invested.Have a clear profit objective in mind and DO SELL when you have achieved the same.
            If a rise in the index is accompanied by a high trading volume,it is a sure sign of upsurge in demand-a buy signal.

            Irregular Predicting tools:
            1.Prices go down on Tuesdays, the last day of trading cycle on NSE ,as bulls liquidate and square off their long positions just before the settlement.
            2.Due to budget apprehensions,prices usually go down every February.
            3.Prices are depressed before a general election due to political uncertainty.
            4.Prices go up in the latter part of June if the Sw monsoon arrives on time."
            Do read the attached file for happy hunting....:-))

            Rishi Kashyap | | EDIT | REPLY
              X WHAT IS MONEY?
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              It is a nice topic explained in a book "Increase your Financial IQ" written by R.T.Kiyosaki who also wrote the bestseller RDPD.While I recommend RDPD to anyone IYFIQ is more of his achievements and products. Anyways the book in the end(Afterwords) did explain the thing called the money.
                          According to the author it all started with the BARTER SYSTEM when there was no money.So someone could exchange Tomatoes for Eggs, but what if he did not want the Eggs? Hence came the first money in forms of Shells , Beads , Coloured rocks , Arrowheads etc  .COMMODITIES became the money now.So these commodities can now be exchanged between each other and all accepted it universal worth(read value).For years it continued like this till Gold and Silver came to the picture and became the universal money replacing all commodities.According to the author a true money has "Intrinsic Value" e.g. Gold and Silver can be used as something else than money e.g. jewellery.True money can also be measured accurately,can be stored for years and needed to be compact enough to be carried long distance .These could not be satisfied by tomatoes,Oils ,Eggs or Shells.Now after sometime the Gold and silver became unsafe to carry with themselves so individuals started to place them with someone(say Mr.X) having a safe and who is credible.Mr. X would in return give a receipt for Gold/Silver .Hence came the earliest form of RECEIPT MONEY or PAPER MONEY.Again these receipts could be exchanged for Goods and the person with the receipt can always go to Mr. X for the precious Gold or Silver.As time progressed many Mr.X united together to form what we today know as BANK.As long as people trust the banker they are happy trading this Paper receipt or what we call today as MONEY .Hence each Paper money is backed by equal amount of gold with the bank/Government .For your Information US changed this system in 1970s and which,according to the author, has recently led to the down fall of US Economy. So now I understand what does the note " I PROMISE TO PAY THE BEARER THE SUM OF X RUPEES " on any Paper money means !!!

              Rishi Kashyap | | EDIT | REPLY
                X WHY I DO NOT LIKE INVESTING IN PROPERTY
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                While I could have written with subject like "Do not invest in property" and could easily get a hot topic to debate upon but this post is just my view on investment in Property. It is true that till date I have not invested a penny in property e.g. no flats, no land and no property to boast of!!! The reason why I do not like investing in property :

                [1] I do not understand the JARGON.
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                 There are so many hidden costs involved in this investment that I more than often find self lost with the technicalities of it. A property which is marked 20 laks does not mean that you will get that in the said amount. The registration fees is extra. If there is a broker involved then he too charges his commission. This commission can vary from person to person, and how well informed you are. No need to mention again that I do not understand and presently keeping aloof of Property Investment.

                [2] lack of LIQUIDITY.
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                 This is probably the main reason for my dislike to investing in Property. By this I simply mean that this kind of investment lacks the availability of money. Let me elaborate - lets say you have bought a property and are really happy. The broker keeps coming to you and tell you that the 20 lakhs of property is now worth 23 lakhs in an year and you are really contended with your investment. Suddenly, out of the blues, you suddenly require a lot of money, lets say someone needs immediate medical attention and you run short of money. Now call that broker, well believe me 99.9% brokers will see the urgency and will get your property sold in a not so profitable state (if not loss). But what I am talking is not of this loss but the need to get your property into liquid (read cash) form again. Believe me you will be really lucky if you can sell your property in profit within 1 month. Of course you can sell it the very next day at loss if you are ready to but waiting for a month ??? If you say that I am exaggerating, well my Merchant Navy friend tried to sell his home and shift to some other state, Obviously he needed money for shifting and buying home in another state. He planned to get the 70% of the expenses by selling his previous home.He was unable to sell at the desired profitable price for 5-6 months. In between he finally went for sailing and when he returned he built his new home from this sailing wages. He tried selling by himself first but you can take my words that you need to be well informed of the region where you are and we merchant navy officers are seldom that informed. Finally he was able to sell his property after 6 months and that to at a loss no need to mention through a broker. I can even site my own father's example but I think you got the picture.

                [3] CASH CRUNCH.
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                 Do I really need to explain this. Can you buy a property of 1000 Rs today. Of course not, but you can always invest that amount in other forms of investment. An investment in property today demands more than 12 lakhs. I am talking about a place like Dhanbad, Jharkhand. For any metropolitan City estimate it at 40 Lakhs. Unless you are born with a silver spoon in your mouth or have sailed for more than an year in a stretch, still you will exhaust all your savings and have a Cash crunch in buying such a property. I know the smartest thing to do today is EMI which I have never supported. My friend, we are talking of Investment that is money generating money not taking money. Whenever you take any form of loan you simply increase the cost of investment. A 20 lakh flat at EMI means its cost is already more than 22 lakhs. Here again longer EMI might seem easier to handle but in reality it means longer Liability and no doubt more cost of property.

                [4] Is it really Good RETURN ON INVESTMENT (ROI)
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                 So many times I have heard people telling that "Hey you see I bought this flat 5 years ago in 20 Lakhs and today it is more than 30 lakhs". To me it seems only marginally better than a returns of FD (8%). You can check yourself. If you say that I am undermining the Price, and it will double then are you really sure? Of course it has in some places but I believe We merchant Navy guys have some kind of fascination in buying the property where the prices have already appreciated. My point here too is not that it cannot, of course it can, I mean hey when a share like "SESAGOA" can give returns of 5 times in an year than why cannot your property double in 5 years, but What I mean here is that neither am I sure nor are you about the ROI . You need to calculate the returns and compare your ROI wisely  with the basic Investments like FD. I mean you need to beat that as I told you in this forum.

                [5] TOO MANY PEOPLE INTERESTED
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                 Of course it is a good news to have too many people interested in your property, but only if they are ready to pay!! While movies like "Khosla ka Ghosla" may be just a comedy film for you , the place where we live these things always happen just that the climax is a lot different. Not only that, there are the remote chances that Government themselves might plan out some development and you are really very happy expecting your land price to soar, only to find that they have planned a Road over your land. Tell me the truth did anyone ever considers that? Flats rented to some have also ended in court cases. I have met a Merchant Navy Chief Engineer whose crores of property were rented and the tenants have sued him. His experience was so bad with this, that he made his son a lawyer and has been fighting his case for years.

                [6] It is also RISKY
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                 When I find people telling that property Investments are less risky then I feel like telling them all the above examples but it is of no use. It is a usual saying that Land and gold are the only two things whose value appreciate. It all depends on the time frame which you have in mind. While I can easily trade in Shares and gold, the same is very difficult with the Land. Note here that we are talking of Land and not of flats. To me it seems as risky as shares with difficult exit routes.

                Nevertheless this does not mean that I will not Invest in Property. I have said many times and I will repeat again that there shall always be a cash reserve with you for any emergency (a typical Indian Mentality) and always do your own research patiently prior any investment. I will wait for the right time and property and certainly Property ke liye paisa bhi toh hona chahiye na !!! :-)

                Rishi Kashyap | | EDIT | REPLY
                  X How to select the Shares and Mutual Funds
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                  Lately users have been asking me whether X share is OK to invest or my views about Y share, asked me to tip them about a particular share or worse still "Which share to buy ?"But it was Dinesh who asked me the right question - "How do you choose a share ?" This actually forced me to think ya why not put this in the forum itself!!!

                  So to tell you the truth I never go on recommendations and as far as possible avoid giving recommendations too....it is up to you whether you want to follow this or not ... However I do listen to all, do my analysis and then decide whether to take the risk or not. RISK it is ...!! Lets face it if you do not have extra money and always are in need of more, then stay away from Shares. It is not for you ... at least for the time being. Neither is it for weak hearted who start to jump at the slightest bearish/bullish turn of the market.

                  Shares is risky and like I said before, so are all the other types of investment. So if you are not ready to take risks and are happy with 7-8 % returns in an year ..then settle for it and live happily with it. In such a case there is no need to waste your time reading this post.
                  Since you continue to read this, will take it that you do have spare money and that the thrill of learning new things excites you more then the fear of loosing them. So let me start with MUTUAL FUNDS first.

                  In simple terms when you buy MUTUAL FUNDS it is like you are giving some experts your money to invest in proper places viz Shares, Bonds, Gold etc which are given in the mutual fund document. Details about the mutual funds are posted in the prior posts/attachments, please read them for more details.
                  Selecting any mutual fund is quite theoretical. My approach too is conservative but it has paid me the results. I generally track their previous records and returns of last 1, 3 and if possible 5 yrs. Remember this, while there is no guarantee that the same fund will perform again, but is still a safer bet than going blindly for what your fund manager advises you. Also remember that do not diversify by having plenty mutual funds of same type (equity) in your portfolio. This is because no Mutual fund buys 1-2 types of shares they themselves buy 30-40 sometimes even 100 types of shares to diversify and lower their risk. Thus if you have plenty of MF then your return will be low if all do not perform well. For me I personally suggest to keep max 3-4 types of mutual funds and the best is SIP for long terms (15-20 yrs horizon). I also prefer SIP over going and investing all amount together in the MF, specially now when the Market has breached again 19000. Of course the returns will be less in SIP but it is somehow assured in long term (at least I think it that way !!!).
                  For searching which Mutual funds are the best I use
                  http://www.moneycontrol.com/mutualfundindia/

                  For SHARES as far as possible I avoid trading e.g. Buy today sell today/tommorrow or within a month. I still do not understand F&O and keep aloof. Always have some target for your shares and sell them once the target is achieved (unless you have strong reasons to hold). Personally speaking I target for 20% within an year. Believe me if you think that it is really less than any analyst will tell you that this is greedy ...there are very few people who have consistently gained such high profits. I will repeat again, I only invest my spare money with constant experiments that if the share looses value after my buying by more than 20 % then I start to check back again on the companies performance / fundamentals...I never start to average out the share unless the loss is more than 25-30 % and then again only on good shares.
                  I define good share as :
                  • low P/E (preferably less than 10 best is less than 5),
                  • High EPS (preferably more than 10 best is more than 20),
                  • Low Debt/Equity ((preferably less than 1)) and
                  • High B/V (preferably more than 10 best is more than 20).
                  I am learning how to check the Balance sheet but Satyam case and lot other cases just show how easily they can be manipulated. If you are wondering what those terms are then please check the attachment of the below posts ...Also remember that the trade volume is equally important as larger volume with increase in price is a good indicator while small trade volume with increase in price might very well be manipulative ...The websites where I search before buying any share are:

                  My favorite is moneycontrol.com. There are so much in it that I always start from here. The footer of all pages have shares indexed alphabetically and so you can click and get all the details about the shares from here. While initially they did not had the company and peer performance but they have added that too for easier reference.
                  http://www.moneycontrol.com/india/stockmarket/pricechartquote/A

                  My second favorite is myiris.com. The below links gives the details in such a tutorial form that it seems like the site is  shouting STAY AWAY or GRAB THIS share.
                  http://www.myiris.com/shares/rstutorial/index.php

                  Even when I did searched everything about a company yet there have been time after time that shares gave me a loss of more than 50 % and am still awaiting recovery. I found that Moneycontrol are a little late in updating the Financial results of the Companies. I also found one site, via moneycontrol itself, which briefed the dates about when the companies have stated to declare there results but lost that link.
                  Presently I use BSE and NSE site directly for this purpose. They give the future dates when the Financial reports are to be declared for the week at the below links. The good thing is that BSE also lists the FII investment in previous quarter in any particular company, a very handy information indeed. While the website is not exactly what I am looking for as it gives dates only for a week and I am still searching for a good website for this, yet for the time being it is OK.
                  http://www.bseindia.com/qresann/rstcal.asp#1
                  http://www.nseindia.com/marketinfo/companyinfo/online/resultslist.jsp

                  While I admit that I have a conservative and orthodox approach but it has most of the times (beware not always!!) achieved my set target. Hope it helps you and you too have a happy hunting for those bullish shares.

                  Rishi Kashyap | | EDIT | REPLY
                    X Bullion Investment in e-Gold and e-Silver
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                    Since property Investment still do not excite me so I decided to diversify my portfolio by Investing in Bullion. I did not want to buy the Gold or Silver Bars / Coins but enquired whether there is any scope of electronic Investment in these Commodities.

                    Whatever info I collected , I am sharing it at https://www.jahajee.com/bullion-investment-in-e-gold-and-e-silver/81/0.html

                    Would request the users to contribute their findings or corrections if any. Hope someone finds it Useful. I will try to add my personal experience and finding related to e-Gold or e-Silver under that Post only.

                    I was also wondering to get the users feedback as to which investment are they finding best and lucrative so started a new poll at https://www.jahajee.com/polls/which-investment-opportunity-do-you-like-most/2.pol .Please vote there and add your opinions.

                    Rishi Kashyap | | EDIT | REPLY

                      tags  LIFE AS IT IS