An interesting perspective…

 

By 1999, 49% of Americans Owned Equities, this Percentage was just 3% in 1980 .These 20 years was also the Time when Warren buffett, Paul Tudor Jones, George Soros were Created.

🇮🇳 In 2017 only 3% Indian owns Equities..

📈

In 1979, the BSE Index was 100.*

Today it is over 33,000.

That is a return of over 17% per annum.

If we were to add back dividends received and assume that they were to be reinvested in the BSE-30 Index, then the return is nearly 20% per annum.

Over the past 37 years, the Indian economy has grown by a real rate of GDP of 6.3% on average.

Inflation, as measured by the CPI, has been in the 8% range.

Add the two together and you get 6.3% + 8% = 14.3%

Let’s round that down to 14%.

This is the approximate rate of growth of activity in the overall economy, taking into account the level of prices of various goods and services at that point in time. This is also called the nominal rate of growth in GDP.

So, the economy grew by 14% per annum for the past 37 years and the BSE-30 Index grew by 20% per annum.

Now if, over the next 33 years, the Indian economy is to grow by, say, 6% per annum and inflation is to be, say, 5% per annum then the nominal rate of GDP for the next 33 years will be = 6% + 5% = 11%.

If a 14% nominal rate of growth in the economy between 1980 and now resulted in a 20% average per annum growth in the Index over the past 37 years, then what should a 11% per annum growth in nominal GDP result in over the next 33 years – till the year 2050?

Sensex 4,076,470 doesn’t seem extraordinary now, does it?

“If the bull market journey is from Mumbai to Delhi, we have probably reached only Borivali”
– Rakesh Jhunjhunwala

IC Colony. Place we call home . #iccolony #mumbai #borivali #green

IC Colony. Place we call home . #iccolony #mumbai #borivali #green

Poker lessons from Aditya Agarwal, One of the best Poker players in the world. Game on !! @PokerStarsIN #PokerStars

Poker lessons from Aditya Agarwal, One of the best Poker players in the world. Game on !! @PokerStarsIN #PokerStars

Golden Financial Mantra’s.

Some very important financial tips that everyone should know ….

1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It’s important to monitor cash flow. Though, the house will be your asset, your liability will be much more.

2. Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings.

3. Avoid buying a car unless you use it everyday.
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4. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.

5. Try having a simple wedding.

6. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.

7. Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.

8. If you invest in stocks, pay due attention.

9. If you invest in stocks have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy

10. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.

11. Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.

12. Never use credit cards for lavish spending. Use credit cards intelligently and for needs not for wants.

13. Cancel all credit cards before you die. Or inform family about all your accounts, credit cards, loans and saving now itself. Even a small residue will cost your family much.

14. Invest on yourself and then on other investments.

15. Always try to balance your earnings with your savings first, then on spending and loans. Never take unnecessary loans. Always have reserve and utilise them and unless no other go never take loan.

16. Always have a plan for future events on your career, life, spending and finance.

17. Always have a reserve on your savings for contingency and urgent situations.

18. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.

What you need to know about Yes Bank Q2 Results

YES Bank is India’s 5th largest private sector Bank and has been one of the best performing banks over the last decade.

The Private sector lender announced its Q2FY18 results and it proved to be a historic quarter for the Bank as its net profit rose 25.1 per cent year-on-year (YoY) to Rs 1,002.70 crores– the 1st time that the quarterly profit crossed the mark of INR 1,000 crores..While the Bank saw a rise in its Non-Performing Assets (NPA), the ratio at 1.82 percent is still better than most of its peer Banks.

Another key metric “loan growth” also showed momentum with a 35% year-on-year growth in total advances, which was spurred by 78% growth in Retail Advances. This growth in retail advances shows that the Bank is garnering market share in Retail liabilities and deposits. With the CASA ratio having improved to over 37%, this is definitely a good sign for the Bank’s performance.

The bank faced a setback as Divergence as assessed by RBI was at INR 6,355 crore. However, it was good to note that the Bank has been able to resolve/recover over 81% of this Divergence and the impact of this divergence to the NPAs was at INR 1,219 crore. This shows strong recovery mechanisms and should continue to help the Bank with its Asset Quality. Yes Bank has also been growing by leaps and bounds in the Digital Banking space and has built some great solutions to address various payments needs of consumers on corporates. Case in point, is their UPI – Unified Payments Interface leadership where they have grabbed a market share of 65% in merchant payments on the UPI platform.

In summary, except for a minor blip in Asset Quality, the Bank has shown strong operating performance and is capitalising on its growing retail franchise as well as increased digital capabilities backed by technology.