*"*

**Its not formal education but specific knowledge of something which makes you rich "**

*Anish Varshney, India*## Goldman Sachs

**The first major foreign brokerage to do so after the Union Budget, Goldman Sachs has upgraded the Indian equity market, citing a rebound in domestic growth in the second half of calendar year 2018 and “relatively attractive” valuations.**

The Wall Street major has raised its rating on Indian shares to ‘marketweight’ in its latest Asia-Pacific quarterly outlook report. A target of 12,500 is set for the 50-stock Nifty index of the National Stock Exchange (NSE) by September 2018.

Also, analysts believe Indian corporate earnings growth may surprise modestly to the upside in 2019 and say an upward revision cycle for 2017 earnings may materialise later this year

The Wall Street major has raised its rating on Indian shares to ‘marketweight’ in its latest Asia-Pacific quarterly outlook report. A target of 12,500 is set for the 50-stock Nifty index of the National Stock Exchange (NSE) by September 2018.

Also, analysts believe Indian corporate earnings growth may surprise modestly to the upside in 2019 and say an upward revision cycle for 2017 earnings may materialise later this year

Stock Market - 5 golden Rules

**When the market is upward always ' buy & sell'. when the market is in downtrend 'short & cover - that's the thumb rule**

Follow ' stoploss '. never ever work without it

Make diversified investment, atleast 6 to 8 stocks. never make thematic or sectorial investment

Follow ' stoploss '. never ever work without it

Make diversified investment, atleast 6 to 8 stocks. never make thematic or sectorial investment

**Keep track of your investment**

News and buzz in the market effects the stockmarket

News and buzz in the market effects the stockmarket

BROKERAGE CHARGES

**Am I Rich?**

· Got $2200? In this world, you’re rich. Assets (not cash) of $2200 per adult place a person in the top 50% of the world’s wealthiest.*

· If you made $1500 last year, you’re in the top 20% of the world’s income earners.**

· If you have sufficient food, decent clothes, live in a house or apartment, and have a reasonably reliable means of transportation, you are among the top 15% of the world’s wealthy. **

· Have $61,000 in assets? You’re among the richest 10% of the adults in the world.*

·If you earn $25,000 or more annually, you are in the top 10% of the world’s income-earners.***

· If you have any money saved, a hobby that requires some equipment or supplies, a variety of clothes in your closet, two cars (in any condition), and live in your own home, you are in the top 5% of the world’s wealthy. **

·If you earn more than $50,000 annually, you are in the top 1% of the world’s income earners.***

· If you have more than $500,000 in assets, you’re part of the richest 1% of the world.*

· Got $2200? In this world, you’re rich. Assets (not cash) of $2200 per adult place a person in the top 50% of the world’s wealthiest.*

· If you made $1500 last year, you’re in the top 20% of the world’s income earners.**

· If you have sufficient food, decent clothes, live in a house or apartment, and have a reasonably reliable means of transportation, you are among the top 15% of the world’s wealthy. **

· Have $61,000 in assets? You’re among the richest 10% of the adults in the world.*

·If you earn $25,000 or more annually, you are in the top 10% of the world’s income-earners.***

· If you have any money saved, a hobby that requires some equipment or supplies, a variety of clothes in your closet, two cars (in any condition), and live in your own home, you are in the top 5% of the world’s wealthy. **

·If you earn more than $50,000 annually, you are in the top 1% of the world’s income earners.***

· If you have more than $500,000 in assets, you’re part of the richest 1% of the world.*

**Formula:**

Total Amount = Principal + CI (Compound Interest)

a. Formula for Interest Compounded Annually

Total Amount = P(1+(R/100))n

b. Formula for Interest Compounded Half Yearly

Total Amount = P(1+(R/200))2n

c. Formulae for Interest Compounded Quarterly

Total Amount = P(1+(R/400))4n

d. Formulae for Interest Compounded Annually with fractional years (e.g 2.5 years)

Total Amount = P(1+(R/100))a×(1+(bR/100))

here if year is 2.5 then a =2 and b=0.5

e. With different interest rates for different years

Say x% for year 1, y% for year2, z% for year3

Total Amount = P(1+(x/100))*(1+(y/100))*(1+(z/100))

where,

CI = Compound Interest,

P = Principal or Sum of amount,

R = % Rate per annum,

n = Time Span in years

Total Amount = Principal + CI (Compound Interest)

a. Formula for Interest Compounded Annually

Total Amount = P(1+(R/100))n

b. Formula for Interest Compounded Half Yearly

Total Amount = P(1+(R/200))2n

c. Formulae for Interest Compounded Quarterly

Total Amount = P(1+(R/400))4n

d. Formulae for Interest Compounded Annually with fractional years (e.g 2.5 years)

Total Amount = P(1+(R/100))a×(1+(bR/100))

here if year is 2.5 then a =2 and b=0.5

e. With different interest rates for different years

Say x% for year 1, y% for year2, z% for year3

Total Amount = P(1+(x/100))*(1+(y/100))*(1+(z/100))

where,

CI = Compound Interest,

P = Principal or Sum of amount,

R = % Rate per annum,

n = Time Span in years

## Compound Interest Makes Money Grow

**With compound interest you receive interest on interest. So if you hold an investment for a long period, the value of the investment grows very rapidly after a few years. Compound interest works its magic for investors who are able to save and invest for retirement at an early age.**

The following table shows the compound interest multipliers for different interest rates and holding periods. For a 6 percent rate of return each rupee invested grows to 1.34 Rs in five years, 1.79 Rs in 10 years and 3.21 Rs in 20 years. After 30 years the growth accelerates so 1 Rs grows to 10.29Rs in 40 years and 18.42Rs in 50 years

At higher interest rates the growth after 40 and 50 years is very large.

The following table shows the compound interest multipliers for different interest rates and holding periods. For a 6 percent rate of return each rupee invested grows to 1.34 Rs in five years, 1.79 Rs in 10 years and 3.21 Rs in 20 years. After 30 years the growth accelerates so 1 Rs grows to 10.29Rs in 40 years and 18.42Rs in 50 years

At higher interest rates the growth after 40 and 50 years is very large.

Future Value of Monthly Investments

**The following table shows the effect of compound interest for monthly investments made for many years. Each cell represents the money accumulated for a given monthly investment and a given accumulation period. The rate of return is 6 percent and the accumulation periods are 10, 20 and 30 years.**

For example,if you invest 200 Rs each month at 6 percent for 20 years, you'll have 92,870 Rs. If you invest 200 Rs each month at 6 percent for 30 years, you'll have 201,908 Rs.

For example,if you invest 200 Rs each month at 6 percent for 20 years, you'll have 92,870 Rs. If you invest 200 Rs each month at 6 percent for 30 years, you'll have 201,908 Rs.

Daily Interest On Savings Bank Accounts

**Interest on all savings bank account deposits is being calculated on a daily basis, thereby earning account holdres higher interest income. This is due to the fact that the Reserve Bank of India has instructed banks to change the mechanism of interest income calculation. The calculation is done on the 'daily balance method', with the rate of interest remaining the same at 3.5% p.a.**

**Earlier method of interest rate calculation**

Earlier, banks would pay interest at the rate of 3.5% p.a. on the lowest available balance in the account between the tenth and the last day of the month.

Any deposit in the account between the tenth and the end of the month, would not earn the account holder any interest as it is not part of the interest rate calculation.Any withdrawal between the same period would result in lower interest income as the lowest balance would be taken into account for the calculation.

Example: Ashwin had an account balance of Rs 85,000 on April 10. He received a payment of Rs 300,000 on April 15 from the sale of some mutual fund units.

On April 29, he made a down payment of Rs 320,000 to a builder for a property. This resulted in his account balance reducing to Rs 65,000. For the interest income calculation for the month of April, the bank would take Rs 65,000 as the base and pay him interest on that amount. So interest due to Ashwin would be on Rs 65,000 for 30 days @ 3.5% p.a. which would be Rs 187.

In spite of having a high account balance for most period of the month, Ashwin lost interest income for the month.

Under this method of interest rate calculation, the best thing Ashwin could do is ensure that all transactions are done between the first and ninth of any month so that he would get benefit of interest. This required proper planning.

Earlier, banks would pay interest at the rate of 3.5% p.a. on the lowest available balance in the account between the tenth and the last day of the month.

Any deposit in the account between the tenth and the end of the month, would not earn the account holder any interest as it is not part of the interest rate calculation.Any withdrawal between the same period would result in lower interest income as the lowest balance would be taken into account for the calculation.

Example: Ashwin had an account balance of Rs 85,000 on April 10. He received a payment of Rs 300,000 on April 15 from the sale of some mutual fund units.

On April 29, he made a down payment of Rs 320,000 to a builder for a property. This resulted in his account balance reducing to Rs 65,000. For the interest income calculation for the month of April, the bank would take Rs 65,000 as the base and pay him interest on that amount. So interest due to Ashwin would be on Rs 65,000 for 30 days @ 3.5% p.a. which would be Rs 187.

In spite of having a high account balance for most period of the month, Ashwin lost interest income for the month.

Under this method of interest rate calculation, the best thing Ashwin could do is ensure that all transactions are done between the first and ninth of any month so that he would get benefit of interest. This required proper planning.

**New method of interest rate calculation**

Interest will be paid @3.5% p.a. on the daily balance in the account at the end of the day. Here, the account holder will get interest on the actual day end balance.

Under this method, Ashwin's interest income calculation would be:

For the first 14 days of April, interest to be paid would be calculated on Rs 85,000;

For the next 14 days of April, interest to be paid would be calculated on Rs 385,000 and;

For the balance 2 days, interest to be paid would be calculated on Rs 65,000.

So the total interest due to Ashwin would be Rs 643.

Under this method, Ashwin's interest income is higher by Rs 456!

Besides, he did not have to plan his withdrawals and deposits as he would receive interest on the actual account balance.

As a savings bank account holder, you should be pleased with the latest change. Who would not like to see higher balance on account of higher interest income?

Interest will be paid @3.5% p.a. on the daily balance in the account at the end of the day. Here, the account holder will get interest on the actual day end balance.

Under this method, Ashwin's interest income calculation would be:

For the first 14 days of April, interest to be paid would be calculated on Rs 85,000;

For the next 14 days of April, interest to be paid would be calculated on Rs 385,000 and;

For the balance 2 days, interest to be paid would be calculated on Rs 65,000.

So the total interest due to Ashwin would be Rs 643.

Under this method, Ashwin's interest income is higher by Rs 456!

Besides, he did not have to plan his withdrawals and deposits as he would receive interest on the actual account balance.

As a savings bank account holder, you should be pleased with the latest change. Who would not like to see higher balance on account of higher interest income?

**Interest rate calculation Formula**

Daily interest = Amount (Daily balance) * Interest (3.5/100) / days in the year

Daily interest = Amount (Daily balance) * Interest (3.5/100) / days in the year

## Rich vs Poor

**Compounding only works through time**

**Pan Card**

**Understand the PAN (Permanent Account Number)**

PAN is a 10 digit alpha numeric number, where the first 5 characters are letters, the next 4 numbers and the last one a letter again. These 10 characters can bedivided in five parts as can be seen below. The meaning of each number has been explained further.

1. First three characters are alphabetic series running from AAA to ZZZ

2. Fourth character of PAN represents the status of the PAN holder.

• C — Company

• P — Person

• H — HUF(Hindu Undivided Family)

• F — Firm

• A — Association of Persons (AOP)

• T — AOP (Trust)

• B — Body of Individuals (BOI)

• L — Local Authority

• J — Artificial Juridical Person

• G — Government

3. Fifth character represents first character of the PAN holder’s last name/surname.

4. Next four characters are sequential number running from 0001 to 9999.

5. Last character in the PAN is an alphabetic check digit.

Nowadays, the DOI (Date of Issue) of PAN card is mentioned at the right (vertical) hand side of the photo on the PAN card. .......!!

PAN is a 10 digit alpha numeric number, where the first 5 characters are letters, the next 4 numbers and the last one a letter again. These 10 characters can bedivided in five parts as can be seen below. The meaning of each number has been explained further.

1. First three characters are alphabetic series running from AAA to ZZZ

2. Fourth character of PAN represents the status of the PAN holder.

• C — Company

• P — Person

• H — HUF(Hindu Undivided Family)

• F — Firm

• A — Association of Persons (AOP)

• T — AOP (Trust)

• B — Body of Individuals (BOI)

• L — Local Authority

• J — Artificial Juridical Person

• G — Government

3. Fifth character represents first character of the PAN holder’s last name/surname.

4. Next four characters are sequential number running from 0001 to 9999.

5. Last character in the PAN is an alphabetic check digit.

Nowadays, the DOI (Date of Issue) of PAN card is mentioned at the right (vertical) hand side of the photo on the PAN card. .......!!

Why you should collect that 1 rupee change from the supermarket

**Suppose 500 people visit super market daily. No one collects change.**

500×1= rs500.

For 365 days, 500×365 = rs 1,82,500

This is from ONE super MARKET.

There are 1500 super markets in the country.

rs 1,82,500×1500 = rs 273,750,000

27crore per year.

& the worst part about this is, IT'S NOT EVEN TAXABLE because the bill doesn't count the one rupee, remember?

Now you know why they always put price tags like 49/- 99/- 999/- only

500×1= rs500.

For 365 days, 500×365 = rs 1,82,500

This is from ONE super MARKET.

There are 1500 super markets in the country.

rs 1,82,500×1500 = rs 273,750,000

27crore per year.

& the worst part about this is, IT'S NOT EVEN TAXABLE because the bill doesn't count the one rupee, remember?

Now you know why they always put price tags like 49/- 99/- 999/- only