Hind Motors to launch LPG-based Ambassador

Hindustan Motors (HM), the first Indian car company, is planning to launch cars on its Ambassador platform with sequential liquefied petroleum gas (LPG) injection system within three months.

The new car will give the owner the choice of either using LPG  or petrol for fuel. The LPG injection systems are a widely used form of technology and the company would not have to make any significant investments in upgrading its existing platform, said  Moloy Chowdhury, executive vice president, HM.

The demand for vehicles with alternative fuel technology was on the rise for both economic and environmental reasons, and the production and marketing of the new car would be shaped by market
demands, he said. The cars would be priced slightly higher than the existing models. Chowdhury, however, refused to divulge the pricing details.

In another move, HM launched the Ambassador air-conditioned(AC) meter taxis in Kolkata in response to users' requirements. A section of the passengers were felt to be looking for AC comfort within an affordable range, said Chowdhury. The state transport department has issued permits for 300 such taxis. The city will have a separate counter for AC taxis at the airport and railway stations soon. Currently, around 20,000 non-AC taxis ply in Kolkata.

The first batch of taxis will be priced at Rs 3.79 lakh ex-showroom as against the non-AC taxi price of Rs 3.6 lakh. The fare will be 25% more than the non-AC taxi fare. The car is expected to give a mileage of 14- 16 kilometers per litre on city roads, Chowdhury said.

HM currently produces over 1,000 units of Ambassador cars at its Uttarpara facility near Kolkata running at one-third its full capacity. This was primarily because of lack of demand, admitted Chowdhury. The company targets to sell around 12,500 units by the end of this fiscal.

Of the four business verticals operating at the Uttarpara plant that includes vehicle manufacture along with automotive forging, stamping and castings, the vehicle segment contributes nearly 90% of the turnover.

My other blog: http://mindpicks.blogspot.com

Accountants!

Love them, hate them, you can’t ignore them

 

What's the definition of an accountant?

Someone who solves a problem you didn't know you had in a way you don't understand

What's an accountant's idea of trashing his hotel room?

Refusing to fill out the guest comment card

What's the most wicked thing a group of young accountants can do?

Go into town and gang-audit someone

What does an accountant say when you ask him the time?

It's 9.18 am and 12 seconds; no wait - 13 seconds, no wait - 14 seconds, no wait......

Why did the accountant stare at his glass of orange juice for three hours?

Because on the box it said Concentrate.

The accountant's prayer:

Lord, help me be more relaxed about insignificant details, starting tomorrow at 10.53:16 am, Eastern Daylight Saving Time.

Conversation between two accountants at a cocktail party:

".......and ninthly..."

What do accountants suffer from that ordinary people don't?

Depreciation

How do you know accountants have no imagination?

They named a firm PricewaterhouseCoopers

What do you call an accountant without a spreadsheet?

Lost

If an accountant's wife can't get to sleep, what does she say?

"Tell me about work today, dear"

Why do accountants get excited on Saturdays?

They can wear casual clothes to work

How do you know when an accountant's on holidays?

He doesn't wear a tie to work and comes in after 8.30

What does CPA stand for?

Can't Produce Anything

What's an auditor?

Someone who arrives after the battle and bayonets all the wounded

 

Why did the auditor cross the road?

Because he looked in the file and that's what they did last year.

Why did he cross back?

So he could charge the client for travel expenses.

How many auditors does it take to change a light bulb?

How many did it take last year?

How many cost accountants does it take to change a light bulb?

Hmmm........I'll just do a few numbers and get back to you

Laws of Accounting

1.  Trial balances don't

2.  Bank reconciliations never do

3.  Working Capital does not

4.  Return on Investments never will

A fool and his money are soon audited

A lady goes to see her doctor with some worrying symptoms and he examines her.

"I'm sorry," he says "but it's bad news.  You have only six months to live."

The patient says, "Oh Doctor. That's terrible.  What should I do?"

The doctor says, "I advise you to marry a CPA."

"Will that make me live longer?"

"No," says the doctor. "But it will seem longer."-         No offence- hahahaha

An auditor is checking the books of an airline.  He is puzzled by the excess use of fuel on a Melbourne to Canberra flight. He rings up the pilot and asks for an explanation.

"It was late at night'" says the pilot, "Canberra was covered in fog and I lost my bearings."

"I'm sorry," says the auditor, "but you'll have to bear the cost yourself."

"The cost of what?" asks the pilot.

"Of the bearings you lost."

Accountant after reading nursery rhymes to his young child:

"No, son. When Little Bo Peep lost her sheep that wouldn't be tax deductible, but I like your thinking".

5-step guide to locating a 'wealth creator'

The first rule to investing is ‘Don’t lose money’. The second rule to investing is ‘Don’t forget rule no. 1’! It is essential to stick to these rules when it comes to investing, in order to avoid the possibility of capital erosion.

 

To apply these rules successfully and to create wealth through equity investing, Raamdeo Agrawal, Director & Co-founder, Motilal Oswal Financial Services identifies five parameters that you must evaluate. They are:

 

1. Assess the entry barriers created by a company

 

Entry barrier should be preferably intellectual in character

 

Remember, a stock is nothing but a stake in the company’s business. So, observe the company’s business and the entry barriers created by it. The entry barrier should be more ‘intellectual’ in character rather than ‘physical’. This is because while it is next to impossible to compete with a strong brand (an intellectual barrier), competitive advantage associated with a piece of land (a physical barrier) disappears when a competitor acquires one as well.

 

Strong brands such as ‘Thums-Up’, ‘Parle-G’, etc. have enabled their companies to retain the top spot. However, at times, there could be exceptions. For instance, the entry barrier associated with TISCO would be its large base of iron ore and coal, which allows it to lower its raw material cost drastically vis-à-vis its competitors for long time to come.

 

Entry barrier should be long-lasting

 

An entry barrier should not only be strong, but also long lasting. Such companies will keep making money because their entry barriers keep working for them. For instance, Britannia may not be the best managed company but its strong brand continuously earns money for it.

 

Buy into such companies at the earliest

 

As an investor, buy into such businesses ahead of the crowd. If an entry barrier has been established very recently, it may not yet be exploited by the business. Accordingly, the market would not have valued it in the company’s share price.

 

For instance, when Financial Technologies (promoters of MCX) got its commodity exchange license and launched it, the popular opinion held was that it would be unable to execute the business well. But, today, it has emerged as a premier commodity exchange. Investing in such companies before the market sees their potential delivers best appreciation.

 

“Though difficult to practice, think ahead of the crowd”

 

2. Management should be competent and passionate

 

Choose companies that are led by a team and are competent and passionate. Both these attributes are equally important. Competence or passion alone will not work. An individual with a local degree combined with passion would have greater growth prospects than one who has a Harvard degree but no passion. A company like Pantaloon Retail is a shining example of how passion can create wealth.

 

“The definition of a great company is one that will remain great for many years”

 

3. Management should have integrity

 

Integrity is the most crucial quality that a company’s management must have. Such companies not only run their businesses in an honest manner, but, are honest to all their stakeholders, whether they are employees, the government or the shareholders. 

 

If honesty is part of a company’s DNA, it will be fair to its smallest stakeholders – the minority retail shareholders. Companies such as Tata and Infosys have this quality, which has added to their growth and market attractiveness immensely.

 

“Without management integrity, no margin of safety can be high enough”

 

The above-mentioned three characteristics (long lasting intellectual entry barrier, competent and passionate management and integrity) must all be simultaneously present in a company that you choose to invest in.

 

4. Buy low

 

The price that you pay for a stock determines your rate of return. So, it is essential that you get your purchase price right. While some companies come out on top with respect to all the first three parameters, the returns falter when it comes to the purchase price.

 

For instance, HLL comes on top with respect to all the first three parameters but has not delivered as much as far as its stock goes. Its stock delivered a CAGR of approximately just 3 per cent over the last 5 years, when the market delivered a CAGR of approximately 44 per cent over the same period.

 

The quote - “In the bible it is said that love takes care of a lot of sins. In investments, purchase price takes care of a lot of mistakes” – is very apt. You can make mistakes on assessing the first three parameters, since they are subjective in nature, but getting the right purchase price covers up for all your mistakes. Hence, estimate the expected value / intrinsic value of the company and keep an adequate margin of safety in the purchase price.

 

“It is much more important to buy cheap than to sell dear”

 

5. Have patience

 

When you buy a house you don’t expect it to appreciate overnight. You look at its appreciation over a long period. The same goes with equity. After having bought a company that conforms to all the above four criteria, you need to have patience. Investing in equities is often driven by two emotions – greed and fear. And patience is the mantra that helps overcome these emotions. Patience makes the difference between investing and speculation. It’s like a fertiliser to the investment process.

 

“In reality, patience is crucial, but it is a rare commodity”

 

End note

 

Investing is laying out today’s money for more in the future. Its about performance of the underlying assets. Success in investing is the outcome of a disciplined approach.

 

Happy Investing !

 

Raamdeo Agrawal, Director & co-Founder, Motilal Oswal Financial Services

Credits: http://www.economictimes.com

 

 

8 reasons why stock market traders lose money by Ashwani Gujral

Many people think trading is the simplest way of making money in the stock market. Far from it; I believe it is the easiest way of losing money. There is an old Wall Street adage, that "the easiest way of making a small fortune in the markets is having a large fortune."

 

I discuss below eight ways of undisciplined trading which lead to losses. Guard against them, or the market will wipe you out. I am qualified to speak on this subject because I was myself an undisciplined trader for a long time and the market hammered me into line and forced me to change my approach.

 

1. Trading during the first half-hour of the session

The first half-hour of the trading day is driven by emotion, affected by overnight movements in the global markets, and hangover of the previous day's trading. Also, this is the period used by the market to entice novice traders into taking a position which might be contrary to the real trend which emerges only later in the day.

Most experienced traders simply watch the markets for the first half of the day for intraday patterns and any subsequent trading breakouts.

 

2. Failing to hear the market's message

Personally, I try to hear the message of the markets and then try to confirm it with the charts. During the trading day, I like to watch if the market is able to hold certain levels or not.

 

I like to go long around the end of the day if supported by patterns, and if the prices are consistently holding on to higher levels. I like to go short if the market is giving up higher levels, unable to sustain them and the patterns support a down move of the market.

 

This technique is called tape watching and all full-time traders practice it in some shape or form. If the markets are choppy and oscillate within a small range, then the market's message is to keep out.

Hearing the message of the market can be particularly important in times of significant news. The market generally reacts in a fashion contrary to most peoples' expectation. Let us consider two recent Indian events of significance.

 

One was the Gujarat earthquake that took place on 26 January 2001 and the other the 13 December 2001 terrorist attack on the Indian parliament. Both these events appeared catastrophic at first glance. TV channels suggested that the earthquake would devastate the country's economy because Gujarat has the largest number of investors and their confidence would be shattered, making the stock market plunge.

 

Tragic as both the events were, the market reacted in a different way to each by the end of the day. In both cases the markets plunged around 170 points when it opened, in both cases it tried to recover and while it managed a full recovery in the case of the Gujarat earthquake, it could not do so in the Parliament attack case.

 

The market was proven correct on both counts. The Gujarat earthquake actually held the possibility of boosting the economy as reconstruction had to be taken up, and also because most of the big installations, including the Jamnagar Refinery, escaped damage. In the case of the attack on parliament, although traders assessed that terrorist attacks were nothing new in the country but the market did not recover because it could see some kind of military build-up ahead from both India and Pakistan. And markets hate war and uncertainty.

 

In both these cases what helped the cause of the traders were the charts. If the charts say that the market is acting in a certain way, go ahead and accept it. The market is right all the time. This is probably even truer than the more common wisdom about the customer being the king. If you can accept the market as king, you will end up as a very rich trader, indeed.

Herein lies one reason why people who think they are very educated and smart often get trashed by the market because this market doesn't care who you are and it's certainly not there to help you. So expect no mercy from it; in fact, think of it as something that is there to take away your money, unless you take steps to protect yourself.

 

3. Ignoring which phase the market is in

It is important to know what phase the market is in -- whether it's in a trending or a trading phase. In a trending phase, you go and buy/sell breakouts, but in a trading phase you buy weakness and sell strength.

Traders who do not understand the mood of the market often end up using the wrong indicators in the wrong market conditions. This is an area where humility comes in. Trading in the market is like blind man walking with the help of a stick.

 

You need to be extremely flexible in changing positions and in trying to develop a feel for the market. This feel is then backed by the various technical indicators in confirming the phase of the market. Undisciplined traders, driven by their ego, often ignore the phase the market is in.

 

4. Failing to reduce position size when warranted

Traders should be flexible in reducing their position size whenever the market is not giving clear signals. For example, if you take an average position of 3,000 shares in Nifty futures, you should be ready to reduce it to 1,000 shares.

 

This can happen either when trading counter trend or when the market is not displaying a strong trend. Your exposure to the market should depend on the market's mood at any given point in the market. You should book partial profits as soon as the trade starts earning two to three times the average risk taken.

 

5. Failing to treat every trade as just another trade

Undisciplined traders often think that a particular situation is sure to give profits and sometimes take risk several times their normal level. This can lead to a heavy drawdown as such situations often do not work out.

 

Every trade is just another trade and only normal profits should be expected every time. Supernormal profits are a bonus when they -- rarely! -- occur but should not be expected. The risk should not be increased unless your account equity grows enough to service that risk.

 

6. Over-eagerness in booking profits

Profits in any trading account are often skewed to only a few trades. Traders should not be over-eager to book profits so long the market is acting right. Most traders tend to book profits too early in order to enjoy the winning feeling, thereby letting go substantial trends even when they have got a good entry into the market.

 

If at all, profit booking should be done in stages, always keeping some position open to take advantage of the rest of the move. Remember trading should consist of small profits, small losses, and big profits. Big losses are what must be avoided. The purpose of trading should be to get a position substantially into money, and then maintain trailing stop losses to protect profits.

Most trading is breakeven trading. Accounts sizes and income from trading are enhanced only when you make eight to ten times your risk. If you can make this happens once a month or even once in two months, you would be fine. The important point here is to not get shaken by the daily noise of the market and to see the market through to its logical target.

 

Remember, most money is made not by brilliant entries but by sitting on profitable positions long enough. It's boring to do nothing once a position is taken but the maturity of a trader is known not by the number of trades he makes but the amount of time he sits on profitable trades and hence the quantum of profits that he generates.

 

7. Trading for emotional highs

Trading is an expensive place to get emotional excitement or to be treated as an adventure sport. Traders need to keep a high degree of emotional balance to trade successfully. If you are stressed because of some unrelated events, there is no need to add trading stress to it. Trading should be avoided in periods of high emotional stress.

 

8. Failing to realise that trading decisions are not about consensus building

Our training since childhood often hampers the behaviour necessary for successful trading. We are always taught that whenever we take a decision, we should consult a number of people, and then do what the majority thinks is right. The truth of this market is that it never does what the majority thinks it will do.

 

Trading is a loner's job. Traders should not talk to a lot of people during trading hours. They can talk to experienced traders after market hours but more on methodology than on what the other trader thinks about the market.

 

If a trader has to ask someone else about his trade then he should not be in it. Traders should constantly try to improve their trading skills and by trading skills I mean not only charting skills but also position sizing and money management skills. Successful traders recognise that money cannot be made equally easily all the time in the market. They back off for a while if the market is too volatile or choppy.

 

Excerpt from: How to Make Money Trading Derivatives by Ashwani Gujral.

We Salute Dhirubai Ambani today!

What a great news that an Indian is now the richest man in the world. Mukesh Ambani, by virtue of his holdings in India's pride Reliance Industries and other Companies of the group, has become the richest man in the world. He has left behind the enviable Bill Gates and Slim by a slim but important margin.

Number 20 has become some sort of a memorable number for Indians this year. We have won the T20 world cup and have hit 20K on the sensex (which to some appear a sense less x) and at the same moment hit a double of sorts by crowning an Indian to be the Richest man in the world.

Every Indian will be surely proud of this moment.

At this euphoric moment, it is very important to remember and thank that wizard of Dalal Street Late Dhirubai Ambani who changed the India's capital markets around 30 years back. He should be credited with creating the equity cult in India. And how much happy he would have been to see the sensex achieve this feat and his son being crowned as the king of the world.

We salute you Mr. Ambani! Thanks for making us proud.

Mukesh Ambani elbows out Gates, Slim to become world’s richest

Of about Rs 2,49,000 crore, about Rs 2,10,000 crore is from RIL (50.98% stake), Rs 37,500 crore from RPL (37.5%) and Rs 2,100 crore from RIIL (46.23%)

New Delhi: Billionaire Mukesh Ambani today became the richest person in the world, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett, courtesy the bull run in the stock market.

Following a strong share price rally today in his three group companies -- India’s most valued firm Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure Ltd -- the net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore).

In comparison, the net worth of both Gates and Slim is estimated to be slightly lower at around $62.29 billion each, with Slim leading among the two by a narrow margin.

Warren Buffett, earlier the third richest in the world, also dropped one position with a net worth of about 56 billion dollars.

Ambani’s wealth of about Rs 2,49,000 crore includes about Rs 2,10,000 crore from RIL (50.98% stake), Rs 37,500 crore from RPL (37.5%) and Rs 2,100 crore from RIIL (46.23%).

Slim’s wealth has been calculated on the basis of his stake in companies like America Movil (30%), Carso Global (82%), Grupo Carso (75%), Inbursa (67%), IDEAL (30%) and Saks Inc (10%).

According to information available with the US and Mexican stock exchanges where these companies are listed, Slim currently holds shares worth a total of $62.2993 billion, with more than half coming from Latin American mobile major America Movil. Slim is closely followed by Gates with a net worth of $62.29 billion currently.

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Know wherre to tap

A small story...that teaches a lot...

A giant ship engine failed. The ship's owners tried one expert after another, but none of them could figure but how to fix the engine.

Then they brought in an old man who had been fixing ships since he was young. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.

Two of the ship's owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away.

The engine was fixed! A week later, the owners received a bill from the old man for ten thousand dollars.

"What?!" the owners exclaimed. "He hardly did anything!"

So they wrote the old man a note saying, "Please send us an itemized bill."

The man sent a bill that read:

Tapping with a hammer........................ $2.00

Knowing where to tap.......................... $9,998.00

Effort is important, but knowing where to make an effort in your life makes all the difference.

My Dog Sex

My Dog 'Sex'



Everybody who has a dog calls him "Rover" or "Boy". I call my dog "Sex".

Now, Sex has been very embarrassing to me. When I went to get his license, I told the clerk I would like to have a license for Sex.

He said, "I'd like to have one too."

Then I said, "But this is a dog."

He said I didn't care what she looked like.

Then I said, "You don't understand, I've had Sex since I was 9 year old."

He said I must have been quite a kid.

When I got married and went on my honeymoon, I took the dog with me.

I told the hotel clerk that I wanted a room for my wife and me and a special room for Sex.

He said that every room in the place was for sex.

I said, "You don't understand, Sex keeps me awake at night."

The Clerk said "Me too."

One day I entered Sex in a contest but before the competition began, the dog ran away.

Another contestant asked me why I was just standing there looking around.

I told him I had planned to have Sex entered in the contest.

He told me that I should have sold tickets.

"But you don't understand", I said, "I had hoped to have Sex on television."

He called me a show-off.

When my wife and I separated, we went to court to file for custody of the dog.

I said, "Your Honor, I had Sex before I got married."

The judge said "Me too." Then I told him that after I was married, Sex had left me.

He said, "Me too."

Last night Sex ran off again. I spent hours looking around town for him. A cop came over to me and asked "What are you doing in this alley at 4 in the morning?" I said, "I'm looking for Sex..."

My case comes up on Friday...

Nagesh The Great

A felicitation to the very versatile comedy and charcter artiste of Tamil Cinema

Of versatility that'€™s timeless

MALATHI RANGARAJAN

The Kamaraj Hall, Chennai, reverberated with the adulation and respect actor Nagesh commands.

Photo: M.Karunakaran

Recognition for an actor nonpareil: At the function in honour of Nagesh.

Doyens decorated the dais at Kamaraj Hall on the evening of Sunday last. The occasion -€” a celebration in honour of the inimitable comedian, hero and character actor, Nagesh! With M.S.Viswanathan helming the proceedings, the event was graced by Kamal Haasan, Cho, lyricist Vaali, P.B.Sreenivos, directors €˜Chitralaya€™ Gopu, K. Balachander, Mrs. YGP, C.V.Rajendran and Vasanth -€” all ardent fans of the actor whose versatility transcends time! The light music troupe, Ganesh Kripa, presented a host of rare melodies filmed on Nagesh, on the occasion organised by Abbas/Sri Guru Kripa. ARS, the emcee, in typical style recalled interesting details about Nagesh in his prime.

It was a mutual admiration society of sorts on stage, because each was an achiever in his own right. While everyone extolled the potential of Nagesh, he on his part revealed his fascination for Kamal Haasan’s multi-faceted cinema skills. “I can never forget K. Balaji who fed me for three years and did his utmost to get me a break, he began. €˜Chitralaya€™ Gopu recalled the skinny young man, who had accompanied actor Balaji to meet director Sridhar. Soon €˜Nenjil Or Aalayam€™ happened. €˜All that€™s fine. But why am I not able to go beyond the Rs. 501 advance? Like the 501 detergent soap bar, I'm stuck with the number,€™ he would tell me. I'€™d reply that his time would come. It did and how! Gopu remarked. Because, as Vaali pointed out, there came a time when Nagesh was working round-the-clock and even MGR and Sivaji Ganesan had to wait for his dates, as distributors insisted that Nagesh was an indispensable value-addition to the projects. €œThe only picture you can find in Kamal’s room is that of himself with Nagesh. He reveres him so,€ Vaali, who had shared a room with Nagesh in their struggling days, observed.

Witty responses

€œTrue,€ said Kamal. €œI watch his films seriously. I'€™m so much in awe that I forget to laugh. Such is my admiration. It’s not jealousy — only complete surrender to this great talent. €˜Crazy Mohan, a few other friends and I celebrate Nagesh almost every day at my office. In fact we go on about €˜Chitralaya Gopu'€™s sense of humour too. Hindi film actor Mehmood once told me, he considers Nagesh his guru, whereas Amitabh gave Mehmood a similar status. So you see where the root actually is? he smiled.

€œNagesh stands as a lucid example of the fact that those who follow my advice can never make a mark in life, were Cho'€™s characteristic words. €œWhen he wanted to quit his job in the Railways and strive to get into cinema full time, I told him it was a risky move. But how judicious it turned out to be!

You may cry yourself hoarse, but greatness in this part of the country continues to remain mostly unrecognised. That the Padma Sri eludes extraordinary talents such as Nagesh, is a gross omission. But none who can redress matters seems to be concerned. Balachander, who helped Nagesh traverse histrionic domains far beyond the comedy roles he played, said the wrong should be righted. Yet why give it so much importance? The man has carved a formidable niche for himself as one who has regaled filmgoers with his perfect sense of timing in dialogue, and his superb portrayal of a wide spectrum of characters. The huge gathering at the hall exemplified it enough. Now the thespian has reached a stage where laurels from quarters without are absolutely immaterial!

€œThis will be an unforgettable day in my life,€ concluded a moved Nagesh. The evening will remain evergreen in our minds too!

http://www.hindu.com/fr/2007/06/22/stories/2007062250700400.htm

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Nothing dirty about it

The Smiths were unable to conceive children and decided to use a surrogate father to start their family.

On the day the proxy father was to arrive, Mr. Smith kissed his wife goodbye and said, "Well, I'm off now. The man should be here soon."

Half an hour later, just by chance, a door-to-door baby photographer happened to ring the doorbell, hoping to make a sale.

"Good morning, Ma'am", he said, "I've come to..."

"Oh, no need to explain," Mrs. Smith cut in, embarrassed, "I've been expecting you."

"Have you really?" said the photographer.

"Well, that's good. Did you know babies are my specialty?"

"Well that's what my husband and I had hoped. Please come in and have a seat"

After a moment she asked, blushing, "Well, where do we start?"

"Leave everything to me. I usually try two in the bathtub, one on the couch, and perhaps a couple on the bed. And sometimes the living room floor is fun. You can really spread out there."

"Bathtub, living room floor? No wonder it didn't work out for Harry and me!"

"Well, Ma'am, none of us can guarantee a good one every time. But if we try several different positions and I shoot from six or seven angles, I'm sure you'll be pleased with the results."

"My, that's a lot!", gasped Mrs. Smith.

"Ma'am, in my line of work a man has to take his time. I'd love to be in and out in five minutes, but I'm sure you'd be disappointed with that."

"Don't I know it," said Mrs. Smith quietly.

The photographer opened his briefcase and pulled out a portfolio of his baby pictures. "This was done on the top of a bus," he said.

"Oh, my God!" Mrs. Smith exclaimed, grasping at her throat.

"And these twins turned out exceptionally well - when you consider their mother was so difficult to work with."

"She was difficult?" asked Mrs. Smith.

"Yes, I'm afraid so. I finally had to take her to the park to get the job done right. People were crowding around four and five deep to get a good look"

"Four and five deep?" said Mrs. Smith, her eyes wide with amazement.

"Yes", the photographer replied. "And for more than three hours, too. The mother was constantly squealing and yelling - I could hardly concentrate, and when darkness approached I had to rush my shots. Finally, when the squirrels began nibbling on my equipment, I just had to pack it all in."

Mrs. Smith leaned forward. "Do you mean they actually chewed on your, uh... equipment?"

"It's true, Ma'am, yes.. Well, if you're ready, I'll set-up my tripod and we can get to work right away."

"Tripod?"

"Oh yes, Ma'am. I need to use a tripod to rest my Canon on. It's much too big to be held in the hand very long."

Mrs. Smith fainted!!

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Change the world

Allow honest answers!

You are in a job interview.  The interviewer is asking the below typical questions and if you were honest, you would be giving the answers as given below.  Doesn't the interview system that doesn'€™t allow you to give honest answers suck? 

1. Why did you apply for this job?

I have applied for many jobs along with this and you called me now. 

2. Why do you want to work for this company?

I have to work for some company who ever gives me a job, I don't have any specific company in mind.

3. Why should I hire you?

You have to hire some one, you may give me a try. 

4. What would you do if this happened? 

Well, it depends my mindset and mood at that situation...

5. What is your biggest strength?

Basically, daring to join any company who pays me well, without thinking of the fate of company

6. What is your biggest weakness?

Girls

7. What was your worst mistake, and how did you learn from it?

Joining my earlier company and learnt that I need to jump to get more money, so I am here today 

8. What accomplishments in your last position are you most proud of?

Had I accomplished any in my last position, why do I need to change my job? I could demand more and stay there. 

9. Describe a challenge you faced and how you overcame it? 

Biggest challenge is answering the question "why are you looking for a change" and I started blabbering irrelevantly to overcome that.

10. Why did you leave/ are you leaving your last job?

For the same reason why you left your earlier job

11. What do you want from this job?

If no work is given but keep giving good hikes

12. What are your career goals and how do you plan to achieve them? 

Make more money and for that keep jumping companies for every 2 yrs

13. Did you hear of our company and what do you know of us?

Yeah, I know that you will ask this, I've gone through your website

14. What is the salary expected and how do justify that?

Well, no one will change job for the same salary, hence, give me 20% extra than what I am getting and that is unpublished industry standard (I know you will bargain on what ever I ask, hence, I have already hiked my current salary by 30%)

Have you seen my other blog?

Mutual Fund Insights

Fixed Maturity Plans (FMP)

What is an FMP?
FMP stands for Fixed Maturity Plan. These are essentially close-ended income schemes with a fixed maturity date i.e. that run for a fixed period of time. This period could range from one month to as long as two years or more. When the fixed period comes to an end, the scheme matures, and your money is paid back to you.

FMPs do not invest in equity. The portfolio is generally invested in debt and money market instruments maturing in line with the tenure of the scheme. The objective is to lock-in the investment at a specified rate of return thereby immunizing the scheme against market fluctuations.

Liquidity
In most open-ended mutual fund schemes, one can redeem one’s units anytime. However, the structure of the FMP does not lend itself to this kind of liquidity. Invest money you are more or less sure you are not going to need during the tenure of the plan. If you withdraw before the scheme closes, generally a steep exit load is imposed.

The reason for this steep load is to deter investors treating the FMP like a normal income scheme. Though income schemes invest in similar instruments as an FMP, being open-ended and not having a specific tenure based investment strategy, these are subject to interest rate risk leading to fluctuations in the NAV.

What is better --- A Bank Deposit or a FMP?

Lately the interest rates on bank deposits have increased leading many investors to wonder whether a simple Bank Fixed Deposit (FD) would serve better than having to go through the process of investing in an FMP. Though Bank FDs and FMPs currently offer a similar rate of return; the tax impact tilts the scales in favour of the FMP.

Interest on Bank FDs is fully taxable whereas the return from FMPs is either subject to the Dividend Distribution Tax (for the dividend option) or the capital gains tax rate (for the growth option). The Distribution Tax rate @14.16% or the capital gains tax rate @10% are lower than the income tax rate, especially in the case of investors in the higher tax bracket. Tax directly eats into returns, which is why FMPs have the edge over Bank FDs.

To illustrate this point, have a look at the following table. It is assumed that both, the Bank FD as well as the FMP yield the same rate of interest i.e. 10.25% p.a. An investment of Rs. 1 lakh is made in an FMP of 91 days. The corresponding figures for the Bank FD appear alongside.

FMP – 91 days v/s Fixed Deposit
Â		Dividend Option - Individuals	Dividend Option - Corporates	Fixed Deposit
Â	Â	 Rs.	Rs.	Rs.
A	Investment Amount	100,000	100,000	100,000
B	Post Expense Indicative Yield	10.25%	10.25%	10.25%
C	Maturity Value	102,555	102,555	102,555
D	Gain = C-A	2,555	2,555	2,555
E	Tax Rate	14.16%	22.66%	33.99%
F	Tax	317	472	869
G	Post Tax Gains = D-H	2,239	2,083	1,687
H	Post Tax Annualised Returns=	9.29%	8.62%	6.94%

 

 

 

 

 

 

 

Are FMPs for you?
As I write this, markets are extremely choppy. Depending upon whom you talk to, either a severe correction is round the corner or the market is going to go up by a couple of thousand points more. Though no one has seen what tomorrow will bring, common sense indicates that a post tax yield of almost 9% is too good to ignore.

If you are looking for a fixed income avenue that yields a reasonable return with minimum risk, adequate liquidity and tax efficiency, FMPs will provide you with an effective shelter.

This article was about how short-term FMPs (of duration less than one year) can benefit investors. Next time, we shall examine how longer term FMPs (of over one year) which yield capital gains benefits instead of dividend income can also be used for investments that have a longer time horizon.

- Sandeep Shanbhag

The writer may be contacted at sandeep.shanbhag@moneycontrol.com

http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=278494&nlid=1

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