everyday life with a tablet

The existence of tiny little computers that is an amazing thing. That just needs to be said from the start. It is an absolutely amazing time in technology—an amazing time to be alive. A world of information waits patiently in a pocket, until some pub debate spurs a trivia challenge; got a wager on the answer? Bring out the mobile. Not having to wait to get home to check emails has helped people land jobs and quick texts have made it possible for milk and nappies to come home without a second trip. Not to mention sharing video, promoting cool new businesses, and GPS conveniences. Technology is awesome.

I was looking for a better tablet for all my computing needs, Got to know about the  latest Yoga Tablet 10 from Lenovo. The Yoga Tablet 10 shatters the mold in tablet design to create a device that's more versatile and comfortable to use than anything that's come before - all with epic battery life.
I was surprised to see that the body is made out of aluminum and polycarbonate. The battery housing and the kickstand feel very solid and have that metallic noise if you tap into them with something hard. The Yoga 10 can receive an optional magnetic hard cover that doubles as a wireless keyboard. It will wake up as soon as the keyboard has been detached. In the back, both devices have microSD ports that can be used to extend the storage by another 64GB.

I was surprised to see that the body is made out of aluminum and polycarbonate. The battery housing and the kickstand feel very solid and have that metallic noise if you tap into them with something hard. The Yoga 10 can receive an optional magnetic hard cover that doubles as a wireless keyboard. It will wake up as soon as the keyboard has been detached. In the back, both devices have microSD ports that can be used to extend the storage by another 64GB. : http://www.ubergizmo.com/2013/10/lenovo-yoga-tablet-8-and-10-launched/

The Yoga Tablet has an integrated swivel stand that can work in a slightly inclined position, or a stand-up landscape position. It allows the tablet to be used in three different orientations with some degree of freedom in between them. A slight incline is great for typing on a table while the vertical posture is more adequate for watching movies. This gives the user a large number of options, that makes the Lenovo Toga Tablet usable nearly everywhere (desk, plane, chest…).

the Yoga Tablet has an integrated swivel stand that can work in a slightly inclined position, or a stand-up landscape position. It allows the tablet to be used in three different orientations with some degree of freedom in between them. A slight incline is great for typing on a table while the vertical posture is more adequate for watching movies. This gives the user a large number of options, that makes the Lenovo Toga Tablet usable nearly everywhere (desk, plane, chest…).: http://www.ubergizmo.com/2013/11/lenovo-yoga-tablet-review/

I was surprised to see that the body is made out of aluminum and polycarbonate. The battery housing and the kickstand feel very solid and have that metallic noise if you tap into them with something hard. The Yoga 10 can receive an optional magnetic hard cover that doubles as a wireless keyboard. It will wake up as soon as the keyboard has been detached. In the back, both devices have microSD ports that can be used to extend the storage by another 64GB. : http://www.ubergizmo.com/2013/10/lenovo-yoga-tablet-8-and-10-launched/

I was surprised to see that the body is made out of aluminum and polycarbonate. The battery housing and the kickstand feel very solid and have that metallic noise if you tap into them with something hard. The Yoga 10 can receive an optional magnetic hard cover that doubles as a wireless keyboard. It will wake up as soon as the keyboard has been detached. In the back, both devices have microSD ports that can be used to extend the storage by another 64GB. : http://www.ubergizmo.com/2013/10/lenovo-yoga-tablet-8-and-10-launched/

 

A better way is here. :)

All I Think Is 'YOU!'

In the middle of the crowd...
On a busy day... When all hell's breaking loose...
For no reason... I think about you.

A child smiles clinging to her mother's shoulder...
And i think about you.

A flower blooms... i smile...
And I think about you.

A good melody reaches my ears...
I close my eyes...
And think about you.

Now I know...
I don't think about you between the moments of my life...
I live my life between the moments I think about YOU!

Bonus shares !!

What are bonus shares?
Bonus shares are those allotted by the company to existing shareholders, free of cost. The company does this by capitalising its free reserves. Assume a company with an equity capital of Rs 500 crore and free reserves of Rs 1,000 crore. If this company issues a 1:1 bonus (one free share for every held), its equity capital will double to Rs 1,000 crore. The extra Rs 500 crore is shifted from the free reserves to the equity capital, and the shareholders given the bonus shares. The company’s equity capital is now Rs 1,000 crore and its free reserves Rs 500 crore (Rs 1,000 crore minus Rs 500 crore).

Why do companies issue bonus shares?
Bonus shares are usually issued to improve liquidity in a stock, and give a feeling to the investor that the stock price has become more affordable. This helps in improving the sentiment for the stock, especially among retail investors, as he can now own more number of shares for the amount of one share earlier. Following the bonus issue, the stock price will correct to the extent of the bonus ratio. For instance, if the ratio is 1:1, the stock price will halve, if the ratio is 2:1 (two bonus shares for every one share held), the stock price will become one-third.

Will Reliance shareholders benefit from the 1:1 bonus issue announced a couple of days ago?
That depends on whether the company will maintain the per share dividend payout at Rs 13 next year also. If the company pays a dividend of Rs 13 per share next year, it would mean doubling of dividend for shareholders, since they will now be owning twice the number of shares.

What could have been the reason for Reliance Industries to announce a bonus issue at this stage?
Market view is divided. Some say the move is a genuine gesture to reward the loyal base of retail shareholders. Others point out that the company is trying to boost sentiment for the stock at a time when it is mired in a legal battle with ADAG over gas supply, and grappling with subdued growth in earnings near term.

Should investors be excited about the RIL bonus share issue?
A liberal bonus issue does indicate confidence on the part of the management to be able to service the expanded equity base. Besides, in India, the general trend has been that of stock prices factoring in the bonus issue faster than expected. What this means is that if a stock is quoting at a pre or cum-bonus price of Rs 100, and falls to Rs 50 after the bonus issue, it will climb back to Rs 100 faster than a corresponding rise in earnings. Though irrational, this has been the general trend.

Does a bonus issue make a difference to the fundamentals of the company?
No. It does not change anything for the company. The net worth of the company (equity capital + free reserves) will remain the same, growth in absolute profits and profitability will depend on the company’s efficiency levels and market conditions. Earnings per share (earnings divided by the number of shares in issue) will come down in absolute terms, but the price to earning multiple (stock price divided by earnings per share) will remain the same, as the stock price too would have reduced to the extent of the bonus issue.

Other than the prospect of more dividend, what is the attraction of a bonus issue?
Many investors use bonus shares to offset short-term capital gains tax. For instance, an investor can buy a stock just before the bonus issue, sell the bonus share once the stock price adjusts, and show that transaction as a loss while retaining the original share. This loss can be adjusted against the short-term capital gain the investor has made in some other transaction.

Is a bonus share issue the same as a stock split?
No. In a stock split, the face value of the share is reduced. If the company reduces the Rs 10 rupee face value of a share to Rs 5, an investor with one share of Rs 10 face value will have two shares of Rs 5 face value. In case of a stock split, the equity capital remains unchanged, but the number of shares in absolute terms, increases.

starting a business

Starting and managing a business takes motivation and talent. It also requires a lot of research and planning. Although initial errors are not always catastrophic, it takes extra specialization, discipline, and hard work to gain advantage.
Beforehand, there must be enough time allotted to exploring and evaluating the business that you are interested in pursuing. These information would be needed to build a comprehensive and contemplative business plan that will help you achieve these goals.
A business plan is detailing a blue print, foreseeing the future of an endeavored enterprise, usually designed to attract capital investment and profit. This is the first tool to be developed by thinking through some important issues that you may not otherwise consider. Your plan will become valuable as you set out to raise money for your business, and it will provide milestones to gauge your success.
There are many important issues that need to be considered when going into business.
First, assess your reason for wanting to go into business.
Next determine the right and suitable business, contemplating the technical skills possessed; specializations; activities involved; time to be allotted; and marketability of interests.
Then, identify personal business niche.
The final step before developing your plan is the pre-business checklist which encompasses skills and experience, legal structure to be used, maintenance of business records, insurance coverage, resources, location, compensation and financing.

It is also vital to decide on what form of business entity to establish. The most common forms of business are the
(1) Sole proprietorship—unincorporated,
(2) Partnership—two or more persons carrying out a trade,
(3) Corporation—prospective shareholders exchange money, property, or both, for the corporation's capital stock.,
(4) S corporation—an eligible domestic corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. There are four distinct sections in a business plan body. These are the
(1) Description of the business,
(2) Marketing,
(3) Finances
(4) Management.

The business plan is a tool with three basic purposes:
(1) Communication—used to attract investment capital, secure loans, convince workers to hire on, and assist in attracting strategic business partners;
(2) Management—helps you track, monitor and evaluate your progress;
(3) Planning—guides you through the various phases of your business. In order to keep a business alive, proper management should be applied. One should ensure adequate financing, knowledge and planning. Marketing wise, the enterprise must attract and retain a growing base of satisfied customers. It is also vital that proper strategic planning and advertising is applied.

Highlights of Union Budget 2009-10

Following are the highlights of Budget 2009-10.
* Govt plans to bring back economy to high growth of 9%
* GDP growth dipped to 6.7% in FY'09
* FM to make pre-budget talks with state FMs annual affair
* Fiscal deficit up from 2.7% to 6.8% of GDP
* Return to fiscal prudence at the earliest
* 'Aam admi' is focus of all programmes and schemes
* Limit raised by Rs 10,000 for tax payers, including women
* 10% surcharge on personal income tax scrapped
* Fringe Benefit Tax abolished
* No change in corporate tax
* Defence gets Rs 1,41,703 cr, up 34%
* Total fiscal stimulus in 2008-09 amounts to Rs 1,86,000 cr
* IIFCL to evolve mechanism for increased funding of infra
* IIFCL to re-finance commercial bank loans up to 60 per cent in critical projects through PPP to tune of Rs 1,00,000 cr
* Allocations for highways being stepped up by 23 per cent
* Funds for housing, amenities for urban poor up Rs 3,973 cr
* Funds for JN Urban Renewal Mission up 87% to Rs 12,887 cr
* Assistance for storm-water drainage project up by Rs 300 cr
* Farm credit target up at Rs 3,25,000 cr from Rs 2,87,000 cr
* Interest rates incentive to farmers to repay loans on time
* Additional Rs 1,000 crore for accelerated irrigation scheme
* Export Credit Guarantee scheme extended till March 2010 * 2% interest subvention (IS) scheme extended till March 2010
* IS scheme to cover 7 job-oriented sectors, including textile, handicrafts and handlooms.
* Commodity Transaction Tax abolished
* New pension system trust exempted from STT; DDT
* Minimum Alternate Tax hiked to 15% from 10%
* Tax holiday on petro sector extended to natural gas
* 100% tax deduction on political donation * Stimulus for print media for another six months * Fertiliser subsidy to be nutrient-based, not price
* Expert Grp to form viable pricing for imported petro goods
* Banks and insurance firms to remain in public sector
* Rs 100 cr one-time grant to expand banks in unbanked areas * Govt committed to provide Rs 100 a day as wages under NREGA
* Allocation of Rs 39,100 cr to be made for NREGA
* NREGA coverage increased to 4.74 crore households in FY'09
* Work National Food Security scheme has begun
* Allocation for Bharat Nirman being raised by 45 per cent
* Rs 2,000 cr rural housing fund under National Housing Bank
* Mission for female literacy with focus on minorities, SC/ST * 50% of all rural women to be brought into SHG programmes
* Full interest subsidy for students in select institutions
* Five lakh students to benefit
* Modernisation of national exployment exchanges
* Action for social security to unorganised sector workers
* New pension benefits for 12 lakh jawans and JCOs from July
* One lakh dwelling units for paramilitary forces personnel
* Unique Identification Card to citizens in 12-18 months
* Provision of Rs 120 crore for UIC project
* Rs 2,113 crore allocated for IITs and new IITs
* Rs 3472 cr for Commonwealth Games from Rs 2112 cr
* Customs, excise and service tax base rates unchanged
* For Indira Awas Yojana, allocation increased 63%
* IT returns to be made simpler
* 8 missions being launched under Plan on climate change
* Allocation for market development assistance scheme up 148%
* Allocation for Rural Health Mission raised by Rs 257 cr above interim budget
* Rs 500 cr for rehabilitation of Sri Lankan Tamils
* Rs 1,000 cr for infrastructure in cyclone-hit area in WB
* Total expenditure crosses Rs 10 lakh cr for first time
* Share of direct taxes in revenue increased to 56% in FY'09

A Humour in Stock Market

A church father dies and is waiting in line at the Gates to heaven.

Ahead of him is a guy who's dressed in sunglasses, a loud shirt, leather jacket, and jeans.

Saint Peter addresses this guy, "Who are you, so that I may know whether or not to admit you to the Kingdom of Heaven?"

The guy replies, "I'm Joe, stockbroker, of New York City."

Saint Peter consults his list. He smiles and says to the stockbroker, "Take this silken robe and golden staff and enter the Kingdom of Heaven."

The stockbroker goes into Heaven with his robe and staff, and it's the father's turn.

He stands erect and booms out, "I am Joseph , pastor of Saint Mary's for the last forty-three years."

Saint Peter consults his list. He says to the father, "Take this cotton robe and wooden staff and enter the Kingdom of Heaven."

"Just a minute," says the father. "That man was a stockbroker-- he gets a silken robe and golden staff but I, a father, only get a cotton robe and wooden staff? How can this be?"

"Up here, we work by results," says Saint Peter. "While you preached, people slept;

his clients, they prayed… ;)

Install Love, It’s Simple…

Tech Support: Yes, how can I help you?

Customer: Well, after much consideration, I’ve decided to install Love. Can you guide me through the process?

Tech Support: Yes. I can help you. Are you ready to proceed?

Customer: Well, I’m not very technical, but I think I’m ready. What do I do first?

Tech Support: The first step is to open your Heart. Have you located your Heart?

Customer: Yes, but there are several other programs running now. Is it okay to install Love while they are running?

Tech Support: What programs are running ?

Customer: Let’s see, I have Past Hurt, Low Self-Esteem, Grudge and Resentment running right now.

Tech Support: No problem, Love will gradually erase Past Hurt from your current operating system. It may remain in your permanent memory but it will no longer disrupt other programs. Love will eventually override Low Self-Esteem with a module of its own called High Self-Esteem.

However, you have to completely turn off Grudge and Resentment. Those programs prevent Love from being properly installed. Can you turn those off ?

Customer: I don’t know how to turn them off. Can you tell me how?

Tech Support: With pleasure. Go to your start menu and invoke Forgiveness. Do this as many times as necessary until Grudge and Resentment have been completely erased.

Customer: Okay, done! Love has started installing itself. Is that normal?

Tech Support: Yes, but remember that you have only the base program. You need to begin connecting to other Hearts in order to get the upgrades.

Customer: Oops! I have an error message already. It says, “Error - Program not run on external components.” What should I do?

Tech Support: Don’t worry. It means that the Love program is set up to run on Internal Hearts, but has not yet been run on your Heart. In non-technical terms, it simply means you have to Love yourself before you can Love others.

Customer: So, what should I do?

Tech Support: Pull down Self-Acceptance; then click on the following files: Forgive-Self; Realize Your Worth; and Acknowledge your Limitations.

Customer: Okay, done.

Tech Support: Now, copy them to the “My Heart” directory. The system will overwrite any conflicting files and begin patching faulty programming. Also, you need to delete Verbose Self-Criticism from all directories and empty your Recycle Bin to make sure it is completely gone and never comes back.

Customer: Got it. Hey! My heart is filling up with new files. Smile is playing on my monitor and Peace and Contentment are copying themselves all over My Heart. Is this normal?

Tech Support: Sometimes. For others it takes awhile, but eventually everything gets it at the proper time. So Love is installed and running.

One more thing before we hang up. Love is Freeware. Be sure to give it and its various modules to everyone you meet. They will in turn share it with others and return some cool modules back to you.

Customer: Thank you, God.

God/Tech Support: You’re Welcome, Anytime.
— Anonymous

I wish to highlight that I received the above freeware from a friend. She had forwarded it in an email which was from someone else.
I thought I’d share it as I found it a rather cute way of presenting about self-love.

How it changed…

Here i am sitting in my office @ night…
Thinking hard about life
How it changed from a maverick collage life to strict professional life…

How tiny pocket money changed to huge monthly paychecks
but then why it gives less happiness…

How a few local denim jeans changed to new branded wardrobe
but then why there are less people to use them

How a single plate of samosa changed to a full Pizza or burger
But then why there is less hunger…

Here i am sitting in my office @ night…
Thinking hard about life
How it changed…

How a bike always in reserve changed to bike always on
but then why there are less places to go on…

How a small coffee shop changed to cafe coffee day
but then why its feels like shop is far away…

How a limited prepaid card changed to postpaid package
but then why there are less calls & more messages…

Here i am sitting in my office @ night…
Thinking hard about life
How it changed…

How a general class journey changed to Flight journey
But then why there are less vacations for enjoyment…

How a old assembled desktop changed to new branded laptop
but then why there is less time to put it on…

How a small bunch of friends changed to office mate
but then why after 8'o Clock it always feel like getting late….

Here i am sitting in my office @ night…
Thinking hard about life
How it changed… how it changed…

Walking in the dark

It's really fun to shout up naked “EUREKA!! EUREKA!!” and come up with new ideas. Since the invention of wheel, technology has advanced beyond the seven seas. Yet the most exciting phrase one inventor hears over his inventions at first sight is “That's Funny!”
we see most of the inventions taking place in developed countries. What is there in those ppl which is not there in us? The game is all about how you approach and pay attention to your funny ideas.

Graduate level students of MIT Media LAB US Leonardo Bonanni, Chia-Hsun Lee had made a “Smart Sink: Context-Aware Work Surface” which is an intelligent sink that will automatically adjust height of wash basin as per users height for his comfort. It has many others features like automatic water flow and temperature adjustment of water. This wash basin is hence equipped with CCD camera, stepper motor, a PC, a PIC micro-controller, solid state sensors. … A great invention for making comfortable multi-user washbasin!

The point in above is not to make fun of it, but to realize where we lack in our view of seeing and doing things. Had it been the same in India, none would have ever thought to implement it. The main point in invention is “Why did you develop this idea? What were the science and technology trends? How does this work?” You define a problem, and you try to think of its solution which in turn becomes an invention!

Invention is all about “Walking in the dark”; you are stuck infinite times and fail infinite times. Many times you feel there's nothing left to invent… And this is something you will never find in stories of inventions. The well-known stories are about the glorious parts, when someone has a breakthrough. But those stories miss the reality that invention comes in phases. Inventors have periods of great inspiration, but they also have periods when they're dry and confused. And it might sound strange, but believe me that repeat inventors have different methods for dealing with their dry periods than new inventors; there are hidden hazards for new inventors.

In developing countries, the main reason behind lack of invention is “The Innovator's Dilemma”. It arises at different parts of the curve and for other kinds of organizations the inventor works for. Innovation takes place in an ecology in which big technology companies are one kind of important player. And this is why you see the difference in thinking and inventions happening in US, and here in India.

Nonetheless, every person is creative and has the power to invent. The key to invention is very simple but also fundamental. Just ask yourself two questions "What is possible?" and "What is needed?” Once a person identifies a valuable problem, this is the "what is needed" question. When it explores what could be done with emerging technologies, this is the "what is possible" question. The magic is in the dance.

How to approach inventions depends on individuals. Survey and study shows there were four main methods that inventors used, sometimes in combination. One is, some people focus heavily on "what is needed?" and tend to frame everything that they see during the day as part of their search for solving their current problem. By holding the problem in the back of their mind, they see the world differently as part of their search for a solution. We call that method "need-driven.” Next is “Remix” and people just take up every technology and try to mix up each other, apply permutation and combination to each other and come up with better solution!. There are two more methods in which great inventors approach…. Invent or discover yourself!!!

A Scintillating Experience!!! :)

Hmmm hearty wishes started pouring in the previous night and in a similar way the question 'hey how was the cat?'. "CAT??!!" hey! it's not the teeny weeny Lil pet I'm speaking about!!! well, I'm speaking or rather writing here about" common Admission Test-08 an experience".

It's been a great journey, a year's plan and preparation to win the battle. The few words which inspired me to take this exam -"It may be difficult, but it is possible". Enjoyed every moment right from the beginning- the coaching class, the happiness when answers were correct, the bunch of nerves when things didn't work the right way, the worries, the tension built up as the countdown began for D day- everything has been unique in it's own way. The next stage -the national level tests hmmm!! my god!!! I still remember how i made a huge mess in my first test due to the tension, then slowly transformed into a test taker with a series of 16 unpredictable tests ,each one with a different pattern. Trust me, the 16th one was the most peaceful one and with just one week's time on hand -had Lotta last minute things to cram, but that never works with this exam :D. So, the last week before the exam was spent reading novels, solving different papers and most importantly speaking to friends and visualizing myself in the exam :)

THE day- reached on time with my dad's words ringing in my ears" Think only the best, work only for the best and expect only the best. Forget the mistakes of the past and press on to the greater achievements of the future. Give everyone a smile". The paper was a surprise with 90 questions and asymmetric division of sections first time in 10 years, all that apart it was overall a good one :)

And now, kinda happy with it.

So here I am wishing all my friends for upcoming exams , stay cool and give your best. Thanks for reading thro' this!!! lemme end it with a high note-

Life's struggle don't always go To the stronger and faster man,

But sooner or later the man who wins Is the man who thinks he can.

Good luck

Regards

:)

Dollar v/s Rupee and commodities

The currency of any economy is based on dynamics of supply and demand, and its value depends on trading in currency exchanges all over the world.
Higher the demand for a currency on an exchange, the stronger it becomes and vice versa. .

NEWS: "The rupee fell sharply against the dollar at an all-time low of 50"
"Rupee ends weaker than 50 per dollar for first time"

So is the rupee falling with the dollar?
Forget about the rupee. Everything that is happening is to do with dollar.

Here is the comparison of INR and Euros against Dollars the past 6 months.

Don’t worry about the numbers in the ETF just look at the percentage drop. Both euro and INR moved steadily against the dollar.

Why?
People often forget that rupee’s appreciation in the first place has not much to do with the rupee in itself because dollar was moving down against every currency. Now, there is a flight to quality where people don’t want to have money in any unsafe currency and dollar is moving up against every currency.
So, draw rupee against Euros or pounds, you won’t notice either the climb or the drop the past couple of years.

So, how long dollar will be this way?
Nobody knows, but IMO at least for till this credit crisis comes to a reasonable end, dollar will be strong.

Dollar and commodities:
Historically, there has been a negative correlation between the dollar and commodity prices. The classic dollar-hedge is gold and crude.

The price of crude oil has two components
1) supply versus demand
2) value of the dollar.

Crude oil is mainly traded in US dollars.
When the US dollar weakens, the crude oil market participants like speculators, producers, refineries, and such others push the price of crude higher.
This would ensure that oil producers are not at a loss when they convert US dollars into their currency.

The price of gold is linked to the price of oil and to the movements of the dollar.
The gold price has been supported by the growing prosperity of the major Asian countries, particularly India and China. The Indians have a tradition of using gold jewellery as a store of family wealth, and the jewellery trade has been absorbing large quantities of current output.
Generally a stronger dollar reduces gold's appeal as an alternative investment, and makes the precious metal, and other dollar-priced commodities such as crude weaker.

Bottom line principal of "Demand / Supply " still applies to most of the recent phenomenon in Global market.

Sensex below 9000! What next... ?

Sensex fell below the psychological 9,000 mark. World stocks fell on prospects of a deep global recession. Japan, Germany, Hongkong, France all have declared recession! US and UK are also in undeclared recession. What can we expect in the current situation.. ??

Chidambaram, our Finance Minister, has hinted that the country could miss its annual export target of $200 billion for this fiscal year because of the slowdown in developed nations. Our economy after growing at an annual rate of 9+% in the past three years has slumpedto 7.9% in the April-June 2008 quarter. The Reserve Bank of India has downgraded its growth forecast to 7.5% - 8% for the current financial year. A sharp set back like this could bring another round of selling which could bring our sensex down as the sensex has to adjust for the future earnings.
With banks tightening the credits to Real estate companies, there could be some more downsides in the real estate companies. We think there may be a strong selling happening in DLF, Punj Lloyd, Unitech etc.

With China's slowdown we could also face some problems with commodity-related companies. Metal stocks can face a strong sell of Hindalco,Ispat industries, Tisco, Sail could face further problems.

WIth the strengthening of the US dollar against INR, we could face problems in Financial sectors. Stocks like Rel. Capital, KotakMahindra in particular may have selling pressure.
Generally Sensex Heavyweights stocks like RIL, SBI could also be in trouble as FIIs are queueing up to take away 10 billion US$ from India bourses.

We feel index is currentlty on a downtrend and it is too early to buy the shares and the year 2009 will be the best year for bottom fishing.

We do hope that we would get wonderful opportunity to buy some great stocks at great price..!!

Investment and TAXATION..!!!

Investment and TAXATION are few words which are puzzling a few new hires. So let's get a basic idea of what is it all about and how the system works...

From the Budget 2008-09 tax exemption for working man is 1.5 Lakhs and for working women it is 1.8 Lakhs it . So your income is not taxed for this amount irrespective of one makes a investment or not.

While exemptions is on income deduction in the calculation of taxable income is allowed for certain payments under Section 80C (investments which are exempted from tax), Section 80D (Medical Insurance Premiums) and Interest on Housing Loans.

In this post let us discuss on few options in Section 80C since most of us would be interested in investments.The total limit under this section is Rupees One lakh. The investments or expenditure can be

• Contribution to Provident Fund or Public Provident Fund
• Payment of life insurance premium
• Investment in pension Plans
• Investment in Equity Linked Savings schemes (ELSS) of mutual funds
• Investment in specified government infrastructure bonds
• Investment in National Savings Certificates

Lets discuss about them but not insurance, let us not club insurance with investment.
"Insurance and investments must be mutually exclusive", will write about this in my later posts.

Contributions to PPF ( Public Provident Fund) and ELSS ( Equity Linked Savings Scheme of Mutual funds) are eligible for tax deductions.
PPF gives a return of 8% p.a. The most attractive part being the interest is tax free*. 15 years is the minimum term that you need to hold this account for. It definitely helps in compounding your money in such a period of time.

ELSS also generates tax free dividend (if you opt for dividend payout ) and the capital gains you make out of this scheme is also tax free*.
These two schemes definitely stand out of the rest in terms of tax saving schemes. Fixed Deposits, NSC ( National Savings Certificate ) since they do not enjoy tax free* returns.
ULIPs also enjoy some tax benefits.

So, When we compare PPF and ELSS , Equity is capable of generating greater returns in the long run( esp ..like PPF period of 15 years). So, if one is ready to lock in his money for 15 years or so, he can prefer equity based investments . ( ELSS have yielded 40% return in last 5 years # Same performance however cannot be expected year on year, but around 12% returns can make a huge difference!!! in a 15 year period).

Why you must have a PPF account?

1. Highest Return- 8% among the safest category of investment.
2. Only instrument that falls under EEE (Exempt - Investment amount, Exempt- Interest accrual ,Exempt- Interest pay out) category under Income Tax Act.. You need not pay a single penny of tax.
3. Power of compounding can act effectively as the investment period is for 15 years.
4. Tax exemption under section 80 C.
5. The Lock-in period keeps reducing as years go by

So Open PPF account even if you are wary of the 15 year lock in ….Keep investing the minimum amount every year and you can use it during the final years with a minimum lock in period!!

Happy Investing :-)

Investment Basics

OK, as Ajay asked let get few basic questions cleared...

whats the difference between stocks n shares?
Actually both stocks and shares are the same...
stock is used to describe the ownership certificates of any company, share indicates the number of parts of ownership..so when you buy a share of stock, you are actually taking ownership in the company in which you are investing.

whats the difference between derivatives- futures n options?
Derivatives are one whose value changes in response to the changes in underlying variables...
Futures and options are two commodity traded types of derivatives...
In case of options contract gives the owner the right to buy or sell an asset at a set price on or before a given date. But in futures contract is obligated to buy or sell the asset.

whats is liquidity in market?
Market liquidity means that there are people willing buyers and sellers at all times in the market without causing a significant movement in the price.

whats is cash reserve ratio(CRR)- how does it affect wpi?
cash reserve ratio (CRR) is the amount of funds that the banks have to keep with RBI,To make sure banks do not run out of money to pay for withdrawals, they're supposed to hold a certain percentage of deposits as free cash.A CRR hike means banks will have to hold more cash... and CRR one of the measures RBI uses to to curb inflation But for an investor hike in CRR implies a decline in liquidity.
The wholesale price index (WPI) is an indicator designed to measure the changes in the price levels of commodities and change in CRR effects WPI to control inflation.

Bare Beginning

Before i really begin this blog, let me first tell you the reason to start this blog.

Many wanted me to start discussions and share information related to a few topics which drives me crazy like Entrepreneurship, Finance, Hobby Robotics, ethical hacking, project work, Share Trading, WSN, etc...
I am also interested in networking with like minded people and field experts, so if you could write about any of the topics please feel free. lets make it a learning for everyone.

Well, to put it in a nutshell,"I am looking for people who are looking ", so if you are looking, i am waiting to hear from you... :)