BizXchange.in

Discover how to lend a voice to your Business Enterprise with BizXchange.in

BizXchange is a kind of trade-advisory portal that doubles up as a helpdesk for your business, Here you can network with buyers-suppliers, access news updates, consult experts and read experiences of industry leaders and successful entrepreneurs.

Get a download from everything from starting your business to taking it global. Add to that: easy to use business tools such as currency and you have a complete new age business consultant for your SME.

You can Register FREE and experience business across the globe without any boundaries.

In short, BizXchange is a great Portal where SMEs can communicate and interact with each other.

See the above Video. In the above Video, Natalie Williams is making few thousand dollars every month by Domain Flipping.

Domain Names are the Intellectual Properties in the true sense. They are also known as a Real Estate of the Internet. The famous Domain Name, Loan.com sold for US $ 3 Million in early 2000.

What Natalie Williams do is, She do the extensive keyword research and buy Domain Names using discount coupons on GoDaddy.com. and within a month or few, she put these Domains on Auction for Sale on eBay.

Each Domain name fetch different prices ranging from US $ 10 to US $ 1000 sometimes. Natalie buys Domain Names for US $ 7 per Domain Name.

In fact, Domain Flipping is the New Business Opportunity. There are lots of money making opportunities hidden in the Domain Flipping. Generic Name Domain Names are sometimes worth of Millions of Dollars….!!!

Formal Education may not Guarantee Entrepreneurial Success

As I have already told you in many of my previous articles that, Education System is no longer effective to ensure any kind of Financial Success. Great Entrepreneurs like Bill Gates, Michael Dell, Dhirubhai Ambani & Steve Jobs are High School or College Drop outs and still they developed successful Empire.

These are just the examples of few Billionaire Entrepreneurs. In Real world, there lot more. Let us discuss the example of one such Entrepreneur – Parakram Jadeja from Rajkot.

In 1986, Jadeja who was studying in Std. 12, asked his father for Rs.25,000 to participate in an under 19 cricket tournament. But his father, a municipal employee, was not in a position to raise money. Though Jadeja felt bad, he knew something had to be done.

He knew from that day that, the Education system won’t make him Rich & Financially Free. In fact, if he continue the education system, one day he will become an employee like his dad living paycheck to paycheck. Jadeja did not want to live below his means from paycheck to paycheck like his dad.

So Finally he decided to quit studies and become an Entrepreneur. 2 years later, Jadeja launched Jyoti Enterprises and started making lathe machine components (Rajkot was a lathe manufacturing hub). In 1992, he realized that computer assisted lathe machines will be the future. And from that day, the Company went from strength to strength and today has clients like M&M, Kirloskar, TVS…etc…

Experts say that, Formal Education has nothing to do with your Entrepreneurial Success. In fact, if you want to be a successful Entrepreneur, you have to leave the Education System.

American Educator Helen Keller is credited with the saying that, “College is not the place to go for ideas.”

How & Where to Invest Small amount of Money?

Recently a regular reader of this Blog Jal Desai now a Friend has asked me the following question.

“Hi Asav.
You know that I am an avid reader of your blog and consider this blog as the first option to get ANY finance related information. I just have a request that can you write an article on how one should start investing in what all sector IF ONE HAS ONLY RS.5000 in hand currently. You must have guessed right. I only have 5000 Rs. in hand which keeps on decreasing as time goes and I want to invest optimally to gain better results. I am sure many people must be facing a similar situation. May be an article could help. Thanks..”

Jal himself is a Blogger of a Technology Blog – TechExplorer.in

In fact, I am also a regular reader of Tech Explorer. Anyway, Today let us discuss about where to Invest your Money if you have just Rs.5000 in your pocket. All of you now know that, keeping money with you can be disastrous over the time because governments & Central Banks all around the world are printing Billions and Trillions of dollars daily and pushing it into the economy which is diluting the purchasing power of your existing money on the hand.

Recently, the US Government has printed US $ 1.2 Trillion and pushed it into the economy and the world is now worry about the consequences of Fed’s this step. The main concern is “Risk of Hyperinflation.”

So Saving money and keeping it with you can really erode the value of your money over the time. The Asset is more valuable than Money. Because the Asset appreciates in its value and price both over the time while money is something which will loose its purchasing power over the time. So if you have money than acquire Assets out of your money rather than saving it.

So the wise thing is to exchange your Money with Assets. Because Assets will maintain your purchasing power. You can buy any assets out of your money such as stocks, bonds, gold, real estate, mutual funds, art, intellectual properties, paintings, old stamps, rare wines, antiques, rare coins, web properties or anything else……!!!!!

But here The question is not about weather to Invest or Not? The question here is that, What to do if you have only Rs.5000 in your pocket? Because, when you have just 5000 in your pocket than you can’t buy just 2 Reliance or 3 Infosys shares out of it and keep it for longer time. Because Bluechips are grown to such a large extent that they can’t appreciate much more than their current levels.

And suppose if you go with some Financial advisor than, I am sure that he/she will advise you to invest in Gold, Mutual Funds, Savings Schemes or Small Stocks. Well, of course, investing in these is a wise thing. After Gold is the real money and investing in Gold and other assets can really protect the purchasing power of your money. But the thing is that, we have just Rs.5000 in our pocket. So where to Invest?

After a lots of mind work, I have create the following Investment Plan for Jal and everyone else who have as little as just Rs.500-1000 in their pocket but still can Invest in the following things -

I will be happy if you follow the following Investment List in Chronological order. Means the first priority should be to first thing and after that, if you have any money remaining than go for the next thing. So Here we Go…..!!!!!!!!!!!!

[NB – This List will be useful to you when you have small amount of money in your pocket and want to invest. Of course, if you have Big Bucks than you can go for possibly any Investment Vehicle…]

01) Invest in your own Financial Knowledge -

Well, This should be the first Investment if you have very few bugs in your pocket and still want to invest. Honestly speaking, When I had just Rs.500 in my pocket for Investment 3 years back (2006), I had invested those Rs.500 in my own Financial Knowledge. I bought a Personal Finance Book, “Rich Dad Poor Dad” for Rs.285. And that single book has changed my life. After that I had periodically invested more and more small amount of money behind buying Personal Finance, Investing, Business & Entrepreneurship Books.

Remember, Investment in your own Financial Knowledge will pay you the Best Dividends in the long run.

Now, not the all the people are active readers like me. Than what to do? Well, there are not the Books available in the market. There are lots more things that available in the market which are fun and can increase your Financial Knowledge such as Audios, Videos, CDs, Programmes (Real Estate Investing, Stock Market Investing,…etc..) and Games. Amazon.com is the Best place to buy such things.

After a year, I had a Great Collection of Books that are really useful to increase your Financial Knowledge. Here is the List of Books that I currently own. This Collection of Book is my Portfolio. It’s the Investment in my own Financial Knowledge which will give me Best Returns for the rest of my life.

01) Rich Dad Poor Dad – Robert T. Kiyosaki
02) Cashflow Quadrant – Robert Kiyosaki
03) Guide to Investing – Robert Kiyosaki
04) The Intelligent Investor by Benjamin Graham
05) The Millionaire Next Door
06) The Richest Man in Babylon
07) Dhiruism
08) Made in America (The story of Wall Mart)
09) It Happened in India (The story of Kishore Biyani & Big Bazaar)
10) Total Money Makeover – Dave Ramsey
11) Bill Gates – Business at Speed of thought
12) Business Maharajas – The story of Birlas, Tatas & Ambanis
13) Securities Analysis by Benjamin Graham
14) Why we want you to be Rich – Robert Kiyosaki & Donald Trump

The Total Value of the above Portfolio is of around Rs.7000. But its worth it. Of course, I can’t sell these books in future for Rs.70,000 like Stocks & Mutual funds but the Information inside all the books is very much useful to me and literally millions of people. And many Pillar posts of this Blog are the end products of these great books.

02) My Second Investment – Financial Games -

After investing Rs.7000 behind developing a great Information Rich collection of Books, I moved towards my second Investment, Financial Games. If you want to learn the real game of Investment, first of all you should learn all the rules of that game. And the Best way to learn is by playing Games.

Cashflow 101 Game by Robert Kiyosaki, The author of the book “Rich Dad Poor Dad” was my second Investment. The game was around Rs.13,000. And I had only Rs.3000 to invest so what I did? I find out 3 more partners who have invested the rest of the money and we told one of our friend in USA to bring that game for us in Dec.2007.

Of course, you can download the Computer Version of the game online but Playing a Board Game is a different thing. Me and my friends learned lots of Real Estate Investing strategies from Cashflow 101 Game.

03) Invest in your own Business -

The third investment should be – Invest in your own Business. Yes, When you have less money in your pocket, it is advisable to invest in your own Business first because it will appreciate much faster than investing in some one else’s Business say for example buying stocks of Reliance.

Let me give you my Example. When I had Rs.3000 on Hand Cash, I invested that money in my own Business – This Blog. I first of all, shifted this Blog on Private Domain that cost me just US $ 10 (Rs.500). And with the rest of Rs.2500, I had given that money to one SEO writer and he wrote 20 search engine friendly articles for my this blog related to Money & Finance.

And today my that Investment has proved. Because those 20 SEO articles are bringing much more organic (Google) traffic to this Blog than any other articles of this Blog. And more traffic means more Revenue (Income) from this Blog. Within 6 months of my Rs.2500 investment in SEO writing, I have get back more than 40% of my originally invested money back from those 20 articles only.

I had invested those Rs.2500 behind developing the Assets of my own Internet Business – The Blog Archives. The Best thing about this Investment is that, once I will get my invested money in a year or so, those SEO friendly articles will still continue to generate steady Income for me.

You can invest your small amount of money behind developing your own Business (If you have any). You can spend those money behind a good website template or you can hire SEO writers for you or you can simply run a Google AdWords Campaign.

04) Invest in Domain Names -

Another great Investment Opportunity is that, you simply invest in Domain names. Simply go to GoDaddy.com and buy few Domain names in your account. The Domain Names will cost you just US $ 10 per year.

Domain Names are the Assets. They are the Real Estates of the Internet. The Domain Name Loan.com sold for whooping US $ 3 Million. When I had Rs.5000 on hand, I had bought following Domain names just few months back and here is my Domain Names Portfolio.

- eFlippa.com
- iFlippa.com
- BusinessFlippa.com
- DomainFlippa.com
- WebsiteFlippa.com
- eBusinessFlipper.com
- Investta.com

I will hold these Domain Names for next few years and than I will sell them on Sitepoint.com, eBay.com, Sedo.com or Flippa.com

I am not saying that the above Domain Names will be worth of Millions in next few years. But they will surely fetch 300-1000% returns in just next 2-3 years for me. So my original Investment behind these Domain Names will be at least 3-10 Times.

Right now I have invested US $ 70 (Rs.3500) behind these Domain names. Suppose I hold these Domain Names for 3 more years so I will have to invest more US $ 140 (US$ 70 per year for another 2 years) to hold these Domain Names. So my Total Investment will be US $ 210 or Rs. 10,500.

And I am sure that I will sell these Domain names after 3 years for more than US $ 700 (Rs.35,000) may be much more than this….!!!!!

So which Investment in this world can give you this much return?

So This is what all I think about Investment with small amount of Money. If you don’t find it comfortable than you can go for traditional Assets also. But they won’t give you much returns.

[IMPORTANT: Please Please Invest your Money otherwise you will be in great trouble. If you don’t know anything about investments and still want to invest few thousand bugs than simply spot some artist and tell him to draw any kind of sketch for you. You take that Sketch in exchange of Money. But Don’t keep money with you. Because that Sketch is an Asset. Whenever you will sell that sketch in future on eBay, you will definitely make a profit but that Money will not grow automatically.

I am from Ahmedabad City and what one of my Friend do is – There is a Shopping Mall in Ahmedabad where one Artist sits. He makes A4 size sketches for Rs.200-1000 per Sketch. People don’t spend much behind such kind of things. But my Intelligent friend has bought more than 50 Sketches (Worth of Rs.20-40K) from him because he strongly believes that these Sketches are Assets and thus they are more valuable than Money so instead of keeping money with him, why don’t keep Assets (Sketches) with him?

In short, if you can’t find any Investment Vehicle, simply pick some artist, give him Money & buy Sketches or other artistic work from him.]

Hope This much Information will be helpful to you….!!!!!

All of you know about the two Indian Stock Exchanges – NSE & BSE. National Stock Exchange & Bombay Stock Exchange. Both of these stock exchanges are well-known stock exchanges having a great daily trading volume.

But you may not now that, there are 2 other stock exchanges also in India which are not that much famous -

01) OTCEI – Over the Counter Exchange of India &

02) IndoNext

Both of these stock exchanges are for Small and Medium sized Enterprises (SMEs). If you own a micro or small business which is not eligible for Venture Funding, Angel Investor funding or Private Equity Funding than you can raise fund via these 2 smaller stock exchanges.

But unfortunately, both of these stock exchanges for SMEs are not that much successful. In fact, many Indians don’t even know that such types of stock exchanges are exist.

But this time, Government of India is planning to launch such a Stock Exchange Platform for SMEs. But this time, the government want to make it successful.

Here are few facts & key information about Dedicated Stock Exchange for SMEs -

- These type of stock exchanges are not for average investors. They are for highly informed investors only who have high loss bearing capacity such as High Net worth Individuals (HNIs) & Institutional Buyers.

- The Minimum amount of trading in such type of dedicated stock exchange for SMEs will be Rs.1 Lakh.

- It has also been proposed that the player(s) setting up the SME stock exchange should have a net worth of at least Rs. 100 Crore.

- Such type of stock exchange will be very much helpful to PE players & VCs because they can exit through this exchange.

- This Exchange is for Small Businesses fund raising because getting private equity funding and going to IPO isn’t a suitable route for every business.

- Our past experience showed that such types of platforms have not been so much of success.

- One important issue is that, what kind of Investors should be permitted to trade in SME stocks. according to the guidelines it will be better if we only allow Qualified Institutional buyers & HNIs.

- Also a small business can’t afford to publish their financial results on quarterly basis so this stock exchange will allow to publish financial results every year.

- The other main concern is that, the liquidity of these stocks also should be maintained. if the exchange will be illiquid, the SMEs will be forced to go to VCs or PEs.

- The regulator must also put some threshold at which a company could migrate to bigger exchanges like the BSE and NSE.

How to Buy Websites & Flip them on Sitepoint.com? -

Do you know that, Buying websites, monetizing it and Flipping them for higher profit to another buyer is a great Business Opportunity. In fact, many people around this world have made fortunes out of this. Many people are making literally 6 figure Income in dollars every year buy Flipping websites.

Flipping means buying low, optimizing it and later on selling it to another buyer at higher price for good profit. There are Real Estate Flippers, Stock Flippers & Business Flippers in this world. When you Flip a website, remember that you are not just flipping a virtual website but actually you are flipping a whole business to the new buyer.

You are flipping an Internet Business to the potential buyer. SitePoint & Flippa are the great market place on the Internet for buying and Selling website Businesses. So This Quick Guide and my own experience will teach you that How you can Flip a Website Business on Sitepoint & Flippa.com Successfully.

Tips to Remember while Buying a Website on Sitepoint / Flippa -

- Well, first of all you should remember the fact that not the all the deals and listings on Sitepoint/Flippa are genuine and investment worthy.

- You should analyze and research all the data given by the seller. Say for example, if a seller of the website says that the website is generating US $ 500 per month Google AdSense Income from 3000 Visitors & 5000 page views than it is simply impossible. You should verify all the information first.

- where ever you feel doubt, you can ask the seller. You can simply put a comment on the listing and wait for seller’s reply. So that other people can also know about your doubts.

- Always choose to pay via PayPal or Escrow account.

Tips to Remember while Selling a Website on Sitepoint / Flippa -

- Always ask for fair valuation of your website if you really want to sell it. Don’t ask for US $ 500 for a website that is only really worth of US $ 200. Sometimes if you have worked hard and grow the reader/customer base of your website or invested well behind marketing of that website than you can ask for a Premium prize.

- Give all the possible website stats such as Google page rank, How old the website is, Monthly Income, Monthly Operating Expenses, web traffic stats, Google Analytics….etc… It will be Best if you can provide Screen shots of your web site stats as a proof.

- Always ready for Bargain and Negotiation.

- Always choose to accept the payment via PayPal or Escrow only.

Thus, Website Flipping is a great Business Opportunity. You can flip them for profits.

“MY Journey To Billionaire Club” – Web traffic Stats from Sep.2008 to Aug. 2009.

Let us today discuss about “My Journey To Billionaire Club” – A Growth Business. As all of you know that, This Blog is my Internet Business and I am working hard to grow it.

I have started this Business since March 2008. and after 6 months of Blogging hard, I have put the “Sitemeter” web traffic counter on the Blog on September 2008. See the above diagram. During the first month of the counter, this blog has received 534 visitors and 1028 page views in that month. And after that, I have never look back and continuasouly grow this Web Business.

Today after 1 year in August 2009, the Blog has received 9000+ Visitors & 14,000+ page views last month. The Revenue of this Blog has also gone up in alignment of its web traffic.

When I started this Business, people were saying that, it won’t work. But by providing consistently a good quality content to the readers of this Blog, I have taken this Blog Business to the next level every month consistently.

In the above 2 Diagrams, you can see the web traffic stats. Of past whole the year (September 2008 to August 2009).

One reason of my this Success is – “Because I provide the readers what they want to read and not the only things that I want to tell them.”

Of course, I many times write articles about my personal thoughts. In fact, this article is my personal thought. But most of the time I only focus on what readers want to read. Which Financial Information they really need? And I do my homework, and write down articles that are Information rich for the readers.

I do this with Google Analytics. Thanks to Google Analytics that, I can know that what my readers are searching for on the web. By deep searching the Keywords from Google Analytics code, that I have installed on this Blog, I every month know that what my readers are searching for. And after that I do my home work and make articles on What the readers of this Blog want to know.

I also make articles on direct readers’ queries that I receive via e-mail or comments on posts. By doing, Information analysis, I write articles. And that’s why every time when the readers come back to this blog, they find something new that they and many other readers really want to know…..

And they keep coming back again and again. This is how I have consistently grown my Internet Business every month up to now…..

This is just the starting. I Like to Grow my Business. I Love to work hard for Growth. So Stay in touch with my journey to billionaire club…..!!!!!!!

Today I was discussing with my "Nanaji" (Mother's Father) who is 82 years old and a British Architect cum Property Valuer. I was discussing about the valuation of Intellectual Properties especially web properties such as Websites, Forums, Blogs, Internet Businesses...etc...

After the birth of the Internet in 1990, the new Asset class born in this world and that Asset Class is the Web Properties also known as Online Assets. Unlike Physical Assets (Real Estate, Gold...etc..) Web properties are virtual. You can't see them. You can just imagine them.

Now my discussion with my "Nanaji" was that, - How to do Fair Valuation of the Web Properties & Internet Businesses?"

Because in case of Real Estate, we have several criterias for the valuation of Real Estate such as area, location, revenue and many more.... But in case of Virtual Assets such as Web properties we don't have any criterias like that. And if in past, sombody has bought certain size of webproperty for certain amount of money than it is not necessary that, the fair valuation of that web property is the same.

Now, according to my Nanaji, the fair valuation of any web property should be like exactly same like rental properties and traditional offline Businesses. Means it should be based on its Revenue (Income) Generating Capacity.

Now, Banks & Government provide you 8% interest rate per annum on your invested capital in India. So you should count the Income of that web property as an Interest rate and calculate in such a manner that, the final amount should give an interest rate at the 8% interest rate per annum. Let us understand this by Example......

Take the Example of this Blog. "My Journey To Billionaire Club" is my Blog Business. It's my web property. Now let us assume that, this Asset generates Rs.5000 every year for me. So Now we should count like this. How much amount of money can give me Rs.5000 per year interest rate if invested in fixed deposits/Bonds of 8% interest rate per year?

Well, 100 divided by 8 = 12.5. So the multiplication factor is 12.5 in my case. So Rs.5000 multiplied by 12.5 = Rs.62,500. So Rs.62,500 is invested in the Fixed income instrument than it can give us Rs.5000 income per year at the rate of 8% per annum.

So the fair valuation of this Blog should be Rs.62,500 if it generates Rs.5000 per year Income. Now, it is quite possible that, the Web property is quite popular on the Internet and the Owner of the web property wants its Brand Value. In this case, the Seller can increase the multiplication factor to 15x, 18x, 20x or even more.......

But in any case fair valuation of the web property should be counted like this. Now, you will ask that, but the Web assets grow in their popularity and Income generating capacity over the time than How can you surely say that this is the fair valuation? Why can't this be the undervaluation of the Asset? Because after a year, this Blog may generate Rs.10,000 per year......

But well, Here Buyer is covering the risk as well. The 8% return that we have counted is a safe and secure return that offered by the Government of India at present. You say that the income generating capacity of the web asset may go up. But it MAY GO DOWN as well...!!!!

And the buyer is taking all of this risk.

In short, This can be the fair valuation method of the web property.......!!!!!!

What do you Think?.......

How to start an eBay Business?

eBay is world's largest Online market place where daily literally millions of visitors (Buyes & Sellers) visit and literally transact millions of dollars of goods. There are lots of Business Opportunitis hidden on eBay. Many people around this world are literally earning 6 figure Income in Dollars every year by Selling Goods on eBay.

The Best part about starting an eBay Business is that, you only require a unique eBay User ID & Password and that's FREE. After that you can open your eBay online store for as low as US $ 15 per month of monthly rental. which is very low in cmparison to the real world rentals.

Another advantage of eBay Business & eBay store is Worldwide Penetration & Accessible. Anyone from anywhere in the world can anytime shop from your online eBay store.

Before starting a Business on eBay, you should have Inventory ready. So first of all make a list of what you want to sell on eBay.

Few things to keep in mind before starting eBay Business -

01) First of all research on eBay that what you want to sell. there are more than 20,000 categories & subcategories on eBay. You can select from wide range of products that you want to sell.

02) See that, How much is the market competition of your product on eBay. If you are selling something at US $ 50 but someone else is selling it at US $ 30 than? So you have to research your market well.

03) Setup an account with Paypal. Opening a Paypal account is Free. and allows you to send and receive money to other Paypal account holders and accept credit card payments.

04) Learn about the costs of selling on Ebay. You will have to spend a small amount of money before you start making money from Ebay. There is a listing fee, a final value fee, and if you use Paypal for your venture you will pay a fee there too. Learn what those fees are before you list your item so you will know your costs and your profit.

Once you gone through all of the above things, You are Done. Your aBay Business is ready to sell your products Online to whole of this world 24/7. The Best thing I Like about Online Businesses is that, it remains opens 24 hours a day, 365 days in a year. So that even though you are sleeping, your eBay store will still be open for your Customers. Your Customers can visit your store anytime and shop....!!!!!

This can't be Possible in traditional, offline, Brick & Mortar Businesses...!!!!

How to Buy & Sell Unlisted Equity Shares on eBay?

Well, somebody has recently asked me that, How he can buy & Sell the Equity shares of Unlisted Companies on eBay? Well, I don’t think that such type of options are available on eBay. Because in countries like USA, only Accredited Investors (The Investor who has certain amount of Wealth) can invest in Private Equity deals and buy the shares if unlisted companies.

However, in countries like India, there are no such rules and regulations. and that’s why the market of unlisted securities is very unregulated and huge. And that’s why many Securities Scams also occur.

In fact, I really surprise that in countries like India, why many people are crazy about investing in Unlisted Equity Shares? Well, of course it is proven that Seeding stage & Start-up Businesses have the highest growth potential so if you invest in seeding stage businesses, your return on investment will be very high.

But most of the people in India who invest in Unlisted Companies shares are not the Sophisticated Investors. They don’t even know that how to read financial statements? They blindly follow the advises of a Broker and buy unlisted equity shares and hold them for decades, think that they are Assets.

Well, of course, there are great Investment Opportunities hidden in Unlisted Companies. But it doesn’t mean that every unlisted share is the Investment worthy.

So Unless you have Financial Knowledge of Investments, Don’t Invest in Unlisted Companies…!!!!

Dhirendra Kumar is the CEO of Value Research Online – A Mutual Fund Rating Agency as well as Equity Research firm.

I admire Dhirendra Kumar a lot. In fact, I read all of his article thoroughly. Honestly speaking, I have learn the Basics & Principles of Mutual Fund Investing by reading Articles by Dhirendra Kumar in various magazines, websites & News Papers such as DNA.

His advises about Mutual fund investing are amazing. Dhirendra Kumar’s favourite words are, “Be the Vanilla Investor”…!!!

It means that, any investor’s core portfolio should be of Vanilla Mutual Funds means Equity Diversified mutual funds. Because it is next to IMPOSSIBLE to go something wrong with Vanilla Funds. But the Sector/Thematic Mutual Funds are on the 2 extremes.

Click Here to read Articles by Dhirendra Kumar on “First Page” of Valueresearchonline

Dhirendra Kumar is the editor of 2 Best Magazines,

01) Wealth Insight &
02) Mutual Funds Insight

His various economic view points are amazing. He regularly gives his views and opinions about Indian Stock markets & Mutual Fund Industry on CNBC & Star News.

In short, if you want to learn about Basics of Mutual Fund Investing and want to be a successful Stock & MF Investor than read articles by Dhirendra Kumar regularly.

You can Subscribe any of his 2 Magazines here.

Let us today discuss about the Review of SBI Magnum Contra Fund. I am here discussing this fund because this is my all time favourite fund. The fund has a proven past record of good performance. In my MF Portfolio, This is the Core Fund.

Overview -

SBI Magnum Contra fund is a Large cap oriented fund which invests both in Growth & Value stocks. This fund is launched since last more than 10 years in Indian Market so it has a very long track record of good performance.

And this fund has consistently beaten the underlying benchmark Index since last more than 10 years.

Top 10 Sectors -

Here are the Top 10 Sectors in which the fund manager of this fund has invested investors’ Corpus.

- Energy
- Financial
- Engineering
- Communication
- Construction
- FMCG
- Diversified
- Metals
- Technology
- Automobile

Top 10 Holdings -

- Reliance Industries
- ICICI Bank
- SBI
- Bharti Airtel
- ONGC
- Infosys Technologies
- ITC
- Crompton Greaves
- HPCL
- BHEL

Fund Manager -

Pankaj Gupta has joined this fund since May 2007. Mr. Gupta is a Commerce Graduate
and MBA from IIM, Luchnow. Has over 4 yrs. of experience in Mutual Fund, Equity Research and
Corporate Banking. He had his previous assignment with ICICI Bank Ltd.

Fund Details -

Over the past eight years, Magnum Contra has consistently managed to stay ahead of the curve. An amazing feat when you take into account its investment objective. In its initial years, its contrarian sector moves and concentrated stock allocations made it an awfully bold choice. Its brash allocation to metals and auto in the year 2000, is a case in point. In 2001, when other diversified
equity funds were bullish on FMCG, this fund avoided these sectoral
stocks.

It stayed underweight on healthcare but remained bullish on auto. However, somewhere down the road, it has transformed into a diversified equity offering. It tends to stick more with consensus sectors. Recently in 2009, in line with other equity diversified funds, it moved up
the exposure to financial services sector and was benefited as the BSE Bankex index turned into one of the best-performing indices in the recent rally (09/03/2009 to 30/06/2009).

Apart from this, the fund manager reduced the cash and debt exposure from 27.12 per cent in February 2009 to 10.68 per cent in June 2009. All these moves paid off as the fund delivered 72.23 per cent over this period, close to the category's 71 per cent.

Buy or Not Buy? -

Honestly Speaking, This Fund should be the Core Fund of anyone’s Portfolio.

Do you know that, it is now possible to create passive income in your twenties.

But first of all, let us understand that What it means by Passive Income? -

Well, there are basically two types of Income – Active & Passive. Active Income is one which requires your physical (or mental) hard work to generate. Say for Example, the Income from your Job. Each month you receive a Paycheck and that is your Active Income. Because if you have to work hard to get that Income. If you don’t work, you won’t receive that Income.

Now, Passive Income is one which flows in your pocket without your active effort. Say for Example, Rental Income, Dividends, Interests, Business Incomes, Investment Income…etc… Passive Income is the Income which generates from your Asset. So you don’t have to work hard every month to receive that Income and even if you stop working, Passive Income will continue flowing in your pocket.

Of course, you have to work hard initially to grow your Passive Income streams. But once it will be developed, it will constantly flow in your pocket without your much effort.

Remember, Rich people focus on building Passive Income. They know since early of their lives that, only Assets can generate Passive Income and that’s why they start building & acquiring assets since their early life.

So How to create Passive Income in your Twenties? -

Well, you will be surprised by knowing that, it is possible to create Passive Income in your Twenties. Previously (Before 1990), it was nearly impossible to create Passive Income in your twenties but now it is quiet possible.

How? …Well you can create Passive Income in your Twenties by developing a Successful Internet Business. Take the Example of myself & This Blog. I am in my twenties and I have developed this Blog and now this Blog generates a steady passive Income every month for me.

Of course, I had to work very hard initially to develop this Passive Income stream. Without initial efforts, you can’t develop a passive Income stream. And to grow this Passive Income, I am still working hard.

But the Best part about the Passive Income is that, suppose if today I stop working, than it will stop growing… That’s it…. But the effort & time that I have already put inside this Blog will still generate a steady Passive Income flow for me every month. And yeah…. suppose if I continue to work hard, than this passive Income stream will grow like anything.

After few years, suppose if I stop working, I will still have an Income (Passive) but those of my friends who have chosen to work for Paycheck won’t stop working even though they don’t want to do that work. Because if they stop working, They will have to loose that entire Income stream because it is the active Income stream…..

So Work Hard for Passive Income since very early in your life & Believe me…. You will be ahead of those who work for Active Income….!!!!

Choosing a Debt Fund India

Do you want to Invest in a Best Debt Fund of India but don’t know How to choose a Best Debt fund? Than this Article is for you. This is a quick guide of choosing a Best Debt Fund in India.

Quick Guide: Choosing a Best Debt Fund India -

Step: 1 Go to Valueresearchonline.com – Why Valueresearch? Well, because it is the Best Mutual Fund Rating Agency in India. Valueresearch people do all the hard work for you. they will do all the analysis for you and give any mutual fund 1-star to 5-star. According to experts, You will have to choose 4-star or 5-star rated mutual fund.

Step: 2 Go to “Funds” Section of Valueresearchonline. You will be asked to select a fund category.

Step: 3 Select Open, 3 Years, All Debt in the Options and Click Enter.

Step: 4 You will be redirected to the Top 10 Debt Funds of India.

You Are Done…!!!!

Select any of the 4-star or 5-star rated Debt Mutual Fund from the List and invest in it. Every few months, the rating changes. So you come every quarterly to see the star ratings of mutual funds on this site. If star rating of any fund drops drastically (Below 3-star) than it is the time to change the mutual fund…!!!

The Question is - “Can you Really Win Millions in Mobile Lotteries?”

Well, Of course Yes. You can make Millions of Dollars in Mobile Lotteries But not by winning a one but by doing a mass level of Mobile Lottery Scam. You can make millions of Dollars by doing a Mobile Lottery Scam and not buy winning one.

But I will NEVER Recommend you this Way. Because there are lots of LEGAL Ways to make literally Millions of Dollars in your Life.

But Why I have given the above statement? Well, Because to aware you about Mobile Lottery Scams. Just Think that, How can you win a Lottery worth of Millions of Dollars if you have never ever buy any Lottery Ticket in your life?

Mobile Lottery Scammers will tell you that, Your Mobile Number has been selected Randomly from their Computers but it is not true. Once you will establish a Communication with them, they will ask you for your Identity Proofs & few thousand bugs to deliver your Winning amount in your country. But if you pay that Fee, you will never get your money back.

Just think that, If you really have won the lottery worth of Millions than why the Lottery Company ask you for few thousand bugs to deliver your winning amount at your place? Can’t they spend few thousand bugs more to transfer that amount at your place?

Unfortunately, So many people around this world are being cheated by Mobile Lottery Scammers every year. Because of the Lack of Financial Awareness, literally millions of people are cheated every year by these types of Scams.

So Beware of such type of Scams. Nobody has ever made Millions of Dollars by winning any kind of Mobile Lottery…!!!

One of my Doctor Friend asked me that, “Can You Become a Doctor & Own a Business?”

Well, of course Yes. You can definitely become a Doctor & Own a Business. The Best Example is – Myself (Asav Patel). I am a doctor and doing my MS – Ophthalmology PG Course at D Y Patil University, Kolhapur and simultaneously I own a Business, The Internet Business – This Blog.

What else you want to know? I am a doctor & own a Finance Blog. Of course, Right Now, I am the sole Employee cum Owner of this Business because this Business has not grown to such a level that, I can higher writers who write for this Blog Business. But very soon this Blog will have a team of writers and it will be a Business in True Sense.

Now, Let us discuss the other Example of my another Doctor Friend. He is a Doctor and owns a Multi-speciality Hospital. So He is a Doctor & Owns a Hospital Business.

One of my Doctor Uncle owns an Automobile Franchisee.

So it is quiet possible to become a Doctor & Own a Business. Because owning a Business is Fun. I Love to own Businesses because I love to see my Money & People working for me Day & Night to make me Richer.

One of my Junior Friend who has just completed his Final MBBS and doing his Internship owns an Online Medical Forum – CafeMedico.net

He is making a lots of Money from his Online Forum. Which is his Internet Business.

There are many Examples in which Doctors are owning a Business. So It is Possible to Do So…. In Fact, anyone in this world can own a Business…!!!

Hi Asav,
  In all your posts you are mentioning like  start early in all in investments.But I want to invest in mutual funds through SIP.can I wait  will till market tanks ?.I am felling like let us wait for some more time and enter when Sensex drops..what do you suggest?.
Thanks

Recently a reader of this Blog has asked me the above Question. Well, Let us discuss today about this. First of all let me tell you 2 very oldest proverbs of Investing in Market.

01) It’s Not about Timing the Market But it’s Time in the Market…

02) The Best Time of Investing was 20 years Before & The Second Best Time is NOW… So Start Investing NOW…!!!!

Both of the above proverbs suggest the importance of Time. Let me tell you that, Investment is not only the game of Money. Unfortunately most of the people have a false belief that, Investment is a game of Money. But Investment is a Game of,

01) Money &
02) Time Both…!!!

Yes, “Time” is as important element in the Investment as Money. You have to Invest both Money & Time in the game of Investment to win. This is because of “The Power of Compound Interest”. Unless you invest Time in your Investment, The Compound interest will never work for you and grow your Investments. To learn more about “The Power of Compound Interest”, Simply go to the “Compound Interest” Category on the Right Column bar of this Blog. You will find wealth of Information about Compound interest over there.

So Remember, We invest more time in the Investment to allow the compound interest work in favour of you. This is the logic behind staying invested for long time in any Investment. And that’s why I say the early you start, the more time you will be able to Invest…

Ok…. Now, Back to your Main Query….!!!!

You ask me in your query that, You want to Invest in mutual funds via SIP & you want to wait to tank the market Right?…..

Well. Theoretically This Sounds Very Cool…… Means Invest at the Bottom of the Market & Exit the market on the Top & Again Invest at the Bottom of the Market & so on….!!!!!

But Honestly, ask yourself that, Practically How is it Possible?…..

Everybody knows that, if they want to make profit in the stock market, they have to buy low and sell high. But Practically How to make this thing possible? Because Nobody has the Crystal Ball.

On 26th January 2008, When the Sensex was 20,800….. It was a Top of the Sensex…. Than why people were buying the stock? If everybody knew that, The Sensex was going to crash than everybody would have sold their shares and book the profit. But at that time, people were thinking that it will touch 28,000 level at the end of December 2008.

Now, in December 2008. The Sensex was around 8000 level. It was the Bottom of the Sensex. Than Why people had not buy shares? Because they were thinking that The Sensex will touch 6000 level and from that level they will do the Bottom fishing but unfortunately, 8000 level was the Bottom of the Sensex and it bounce back from that level.

Most of the people in India blindly believe the News Channels, Hot Tips & Rumors. But in reality, Nobody has the Crystal Ball to predict the next movement of the Sensex because it’s a purely Random Event.

Now, You are saying that, you want to wait until Sensex bottom outs. But Can anyone tell me that, What is the Bottom of the Sensex?

So Be Realistic….. Nobody ever can predict the Bottom or roof of the Sensex even Warren Buffet & Ambanis can’t predict This…….

So We have to buy more when Sensex is low and Buy Less when the Sensex is High. If you buy shares over the time than you will be drastically able to reduce your over all entry price in the Market.

And that’s why SIP (Systemic Investment Plans) are designed. SIPs are to control your emotions (Greed & Fear). If you today start SIP in some good Equity Diversified Mutual Funds than you will be able to buy more Units when the Market is Down and less Units when the market is Up. So Over the Long time horizon (Over 5 Years), your Over all Entry price in the market will be reduced drastically in comparison to those who have invested lump-sum at today’s Sensex Level (15,000).

The Mathematics behind the SIPs run in such a Manner that you don’t have to time the market. And yeah….. Never try to time the market…. Even if you succeed few times to time the market, it is IMPOSSIBLE to Time the market for whole of your life consistently. So forget the concept, Hot tips & advises about Timing the Market……

After all, It’s Time in the market….!!!!!

What is Banking Ombudsman Scheme 2006?

Many of you have never heard about the ‘Banking Ombudsman Scheme”. So Let me tell you that what is it and how can you use this Act.

Well, Banking Ombudsman Scheme was introduced by RBI (Reserve Bank of India) in 2006 for the benefit of Customers. Under this scheme, if you have lodge any type of Complain related to service or anything else with any Nationalized or Private Bank in India or any Credit Card Company and if they failed to resolve your query than you can directly lodge a Complain against that Bank with RBI by using Banking Ombudsman Scheme.

Download PDF of “Banking Ombudsman Scheme”

Simply download the above PDF and there is each and every detail in this PDF about What is this scheme & how you can lodge a Complain against your Bank.

Any person may file a complaint with the Banking Ombudsman having jurisdiction on any one of the following grounds alleging deficiency in banking including internet banking or other services.

(a) non-payment or inordinate delay in the payment or collection of
cheques, drafts, bills etc.;
(b) non-acceptance, without sufficient cause, of small denomination
notes tendered for any purpose, and for charging of commission in
respect thereof;
(c) non-acceptance, without sufficient cause, of coins tendered and for
charging of commission in respect thereof;
(d) non-payment or delay in payment of inward remittances ;
(e) failure to issue or delay in issue of drafts, pay orders or bankers’
cheques;
(f) non-adherence to prescribed working hours ;
(g) failure to provide or delay in providing a banking facility (other than
loans and advances) promised in writing by a bank or its direct selling
agents;
(h) delays, non-credit of proceeds to parties' accounts, non-payment of
deposit or non-observance of the Reserve Bank directives, if any,
1 Substituted by Notification Ref CSD.BOS.No. 4736/13.01.01/2008-09 dated February 3, 2009
applicable to rate of interest on deposits in any savings, current or
other account maintained with a bank ;
(i) complaints from Non-Resident Indians having accounts in India in
relation to their remittances from abroad, deposits and other bankrelated
matters;
(j) refusal to open deposit accounts without any valid reason for
refusal;
(k) levying of charges without adequate prior notice to the customer;
(l) non-adherence by the bank or its subsidiaries to the instructions of
Reserve Bank on ATM/Debit card operations or credit card operations;
(m) non-disbursement or delay in disbursement of pension (to the
extent the grievance can be attributed to the action on the part of the
bank concerned, but not with regard to its employees);
(n) refusal to accept or delay in accepting payment towards taxes, as
required by Reserve Bank/Government;
(o) refusal to issue or delay in issuing, or failure to service or delay in
servicing or redemption of Government securities;
(p) forced closure of deposit accounts without due notice or without
sufficient reason;
(q) refusal to close or delay in closing the accounts;
(r) non-adherence to the fair practices code as adopted by the bank;
(s)non-adherence to the provisions of the Code of Bank's
Commitments to Customers issued by Banking Codes and Standards
Board of India and as adopted by the bank ;
(t) non-observance of Reserve Bank guidelines on engagement of
recovery agents by banks; and
(u) any other matter relating to the violation of the directives issued by
the Reserve Bank in relation to banking or other services.

Today’s Question is – Can Doctors Get Rich?

Well, Yes… Doctors can get rich. In fact, anybody can get rich.

Now, you will ask that, What if some doctor is not earning lots of Money? Well, than also he/she can get rich, ultra-rich. Because Becoming a Rich does not have to do anything with your Income. Even of you earn less you can get rich & even if you earn millions you can go Bankrupt.

What Matters is – How much amount of Money you Save & Invest from your Income every month?

How much amount of money goes towards buying Assets (Stocks, Bonds, Gold, Real Estate, Mutual Funds, Art, Intellectual Properties or anything else…) out of your hard earned money is the only thing which matter for being a Rich.

Suppose one doctor is earning Rs.50,000 per month & he regularly Save & Invest Rs.10,000 per month in some good Equity Diversified Mutual Fund via SIP and the other doctor earns Rs.5,00,000 per month but he doesn’t save anything. He spends all of this money behind fun and entertainment because he thinks that, he doesn’t need to save or invest money because he is earning lot than after 1-2 decades, the doctor who is earning less but saving & invest more will be richer than the doctor who is not saving & investing at all.

Do you know why this happens? Well, because once you save & invest your money, it will start working for you. The Compound interest will start working in favour of you. Initially you won’t find any difference but over the time compound interest will work on your invested money in a wild manner and increase your wealth in Geometric Proportion.

While those who never save & invest will have to work like a slave because the Compound interest has never work in their favour.

So anyone in this world from any profession can get rich over the time if he/she Save & Invest Money…!!!

So Start Saving & Investing as early as possible in your life means Now….!!!!

How to Buy RBI Bonds Online?

Is it Possible to Buy RBI Bonds Online?

Yes, It is Possible to buy RBI Bonds Online. In fact, I myself have bought RBI Bonds Online. I don’t know all the possible ways to buy RBI Bonds online but Here I will discuss my own Experience of buying RBI Bonds Online.

Well, I have bought RBI Bonds online from my ICICI Bank Online Demat Account. I have used ICICIDirect.com service to buy RBI Bonds Online.

Here is a step-by-step guide to buy RBI Bonds Online -

Step:1 Go to ICICIDirect.com.

Step: 2 Login with your Login ID & Password provided by ICICI Bank. Of course, you can’t use this facility if you are not an ICICI Bank Customer.

Step: 3 Go to Fixed Deposits / Savings Option from the upper navigation bar.

Step: 4 Click on Modify Allocation & transfer money from your Savings Account to Demat Account. The Money which is in your Demat Account is the Maximum Limit you can invest in RBI Bonds.

Step: 5 Now Click on 8% Govt. of India Savings Bonds.

Step: 6 Choose between 2 options – Cumulative or Half yearly.

Step: 7 Place your Order….

You are Done….!!!!

Within 7-10 Business Days, You will receive a Bond Certificate in Physical form at your Home via Courier. I have gone through this procedure for several times and its easy and very convenient.

I am sure that you will also find it easy & convenient.

I am basically from Ahmedabad, Gujarat, India. I born and brought up in Ahmedabad. But I am studying here at Kolhapur, Maharashtra, India since May 2008. It is almost one and a half year, I am studying in Kolhapur.

Let us today discuss something about Various Business Opportunities in Kolhapur.

Well, According to the Census 2001, The Population of Kolhapur is around 10 Lakhs (10,00,000). Kolhapur city is divided into 2 parts – North Kolhapur & South Kolhapur.

North Kolhapur is the city area where I am studying my Post-Graduate course in MS-Ophthalmology at D.Y. Patil University, Kadamwadi Area. North Kolhapur is a City(Urban) Area while South Kolhapur is a Rural (Village) Area.

There are lots of Business Opportunities there in the North Kolhapur.

01) Food Business Opportunities in Kolhapur -

One most suitable Business Opportunity in Kolhapur is a Food Business. The spending Capacity of people of Kolhapur is Excellent. So if you want to start your own Food Restaurant than North Kolhapur is the Best place to start. People of Kolhapur are fond of great food.

02) Jewellery & Gemstones Business Opportunities in Kolhapur -

Another great Business Opportunity in Kolhapur is Jewellery & Gemstones Business. There is a ‘Mahalakshmi Temple’ in the centre of Kolhapur and there are lots of Jewellery shops in that part of Kolhapur. Most of the Jewellery & Gemstone Business of Kolhapur is developed by Gujarati people since last 3-4 decades. There is a huge demand of jewellery & gemstones in Kolhapur.

03) Timber Business Opportunities in Kolhapur -

Another great Business Opportunity in Kolhapur is Timber Industry. People of North Gujarat have developed this Industry in Kolhapur since last 3 generations & there is a huge Business Opportunity for this in Kolhapur.

04) Kolhapuri Chappal Business -

Kolhapuri Chappals are world famous. You can simply start Kolhapuri Chappal Business. You can also start selling Kolhapuri Chappals on the Internet world wide. Simply open an Online store or eBay store and start selling Kolhapuri Chappals to whole of this world.

05) Sugar Industry of Kolhapur -

Kolhapur is a hub of Sugar. There are lots of Business Opportunities hidden in this Industry. Starting from Sugar cane farms to Jaggery to Sugar Mills. Many of the Rich people of Kolhapur City who have made great Fortunes are from this Industry. The atmosphere of Kolhapur is pleasant which is very much suitable to Sugar Cane farming.

06) Franchisee Business Opportunities -

You can also start a Franchisee Business in Kolhapur. A Franchisee can be anything. It can be a McDonald’s, Dominos Pizzas, Subway Sandwiches or anything else. You can also start the Brokerage house in Kolhapur.

07) Entertainment / Cinema Business Opportunities -

There is a huge market space for Entertainment Segment in Kolhapur. Right now there is only one multiplex theatre in Kolhapur - “Parvati Theatre”. But there is a huge space to start many more multiplex theatres, Game Centres or anything else related to Entertainment Business.

In short, Kolhapur is a Hub of Sugar, Chappals & Timber Industry. There are lots of Business Opportunities in the Kolhapur.

So What are you waiting for? Start your own Business in Kolhapur & Believe me You will make your fortune in Kolhapur…!!!!

Many readers have asked me the question that, “Tell us about Billionaires who have started above 40.”

Well, You will be surprised by knowing that, None of the Billionaire in the Forbes List of Billionaires have started building their Fortunes after the age of 40 and became a Billionaire.

It is not that, People above the age of 40 can’t build a successful Empire. The Logic behind this is different. The most important element of becoming a Billionaires is a Time. The more time you invest in your Asset/Business, the Compound Interest work more in your favour.

And that’s why a typical Billionaire is one who had started their fortune in their early life, Typically in early twenties. Bill Gates, Mark Zuckerberg (Facebook), Larry Page (Google) & Warren Buffet (At the age of 13) have started early and that’s why the more time was invested in their Fortunes & thus Compound interest worked more in favour of these people.

So the key of becoming a Billionaire is – Start Early.

If you don’t start early, you are reducing your chance of becoming a Billionaire. Becoming a Billionaire is a Game of Valuations, Valuations of your Business.

Remember, Investment is a game of Money & Time Both. So you MUST have to invest both money & time if you want to be a Billionaire.

So Start Early….!!!!

This is the Information age and the Information is the New Asset Class. Many intelligent Entrepreneurs around this world consider Information as a Commodity Now.

Yes…. Information is the Commodity. You read this Article. The Information in this Article is useful for literally millions of people around this world. Of course, everybody can’t understand & implement the Information in this article but it is useful to literally many people in this world.

And thus, it is the Commodity. Information is exactly like any other commodity such as Cotton, Sugar, Metals, Agro products….etc…. The only thing is that, You can not see the Information. You can not touch the Information. But if you develop a perfect Business Model than you can Sell this Information and make literally Billions of Dollars out of this Information.

Say for Example – Google. Google has commoditized the Information on the web. Google searches and maintains its own Index of Information and make money by Advertising of this Information. Google has developed 2 amazing Advertising programs to generate Money (Income) from its Information Portfolio – AdWords & AdSense. Last year (2008), Google has made US $ 20 Billion from its Index. And that’s a huge Revenue.

Another Example is This Blog. “My Journey To Billionaire Club” contains Information about Money, Finance, Business, Investments & Entrepreneurship. The Blog Archive of this Blog is the Portfolio is Timeless articles about Money & Finance. The Information given in the Articles of this Blog is useful to literally Millions of People. And this Information is an Asset/Commodity.

Right now this Blog contains 1500+ articles when I am writing this article. And I am making US $ 30-50 per month from 1500 articles by Google AdSense. Now just think that, How much I can earn if the Information Portfolio of this Blog is of 1 Million Articles…..????

And What if I grow this Portfolio to 10 Million Articles…???

This is a matter of Imagination….. In short, Information is the Commodity. And in the Information age, More Information you have, the more Rich you can be. So Think of starting your Business of selling Information….. Believe Me…. There are lots of Opportunities in the Information Age…!!!

As all of you know that, Government of India is planning to divest its various Businesses this year to raise the Capital. And as an initial step, it has taken NHPC (National Hydro Power Corporation) to the public. The NHPC IPO was a great success. Indian People have shown tremendous response in NHPC IPO.

Here are the Cash Rich PSUs -

01) BSNL – Over Rs.35,000 Crore

02) Coal India – Over Rs.25,000 Crore

03) NMDC – Rs.5950 Crore

04) Neyveli Lignite – Rs.4750 Crore

The government of India will mop up around Rs.10,000 Crore by way of Special dividends from some Cash-rich companies run by it, ahead of planned public issues aimed at enhancing public ownership.

The intent of the government is not to strip these companies of their assets but large amounts of cash in banks reduce overall rate of return on Capital. The move will not affect the Valuation of the Companies.

In short, all of the above PSUs are Cash Rich Companies and that’s the amazing thing. So Get ready for the IPOs of these great Indian Companies. Buy their Shares and be the Owner of these world’s greatest Companies.

The above photographs are of Mr.Piruz Khambatta. He joined his father’s Business when he was 18. Since then, the fruit juice concentrate maker has grown 10-fold and spread its wings to 40 Countries. Khambatta is now taking ‘Devil’s Workshop’, a new bakery chain, National.

Rasna – Official Website

Today Rasna is one of the most trusted Brand in India. Rasna Pvt. Ltd is the 100% privately owned Company. Over the years, slowly it has captured the market of fruit juice.

Unfortunately, we don’t have Financial Information about 100% Privately owned Companies. We only have data about publically listed companies and that’s why sometimes these types of Companies stay out of focus of Media for long time…!!!

Have you ever think that, Why most of the startup Ventures fail? Here are the Top 10 Reasons why startups fail?

01) Running Out of Money – Most of the Entrepreneurs fail in their startup ventures because they run out of Money. They are too much optimistic about their product that, it is going to be accepted by the market.

02) Founders don’t have complete faith in each other. They fight instead of delegating, trusting and verifying.

03) CEO hires weak team members. Strong CEOs sometimes try to carry everyone with them.

04) Entrepreneurs want to do so much. A Successful startup finds a narrow niche that they can dominate and then expands. While most of the Entrepreneurs do? first expand and than try to grow.

05) They go after too small market

06) They don’t charge enough from their customers survive. They often think their mentors/investors are their customers, and think that a nice sale is all they need.

07) They hire too many people upfront.

08) They get unlucky. Competitors, new Technologies…etc..

09) They don’t work hard enough or fast enough or smart enough. All those little decisions add up to an outcome.

10) They don’t take enough risks. Some startups think they should operate like big firms. They can never beat MS or Google at their own game. They should get creative and do things differently, even at the risk of embarrassment.

Finally, USA Housing Bubble has burst & it has caused the mass Financial Disaster. So How will Housing Bubble Burst of USA will affect the USA Population in coming years?

Well, for last 2 Decades, USA had developed a System. Just up to few years ago, Americans had made a Living by selling houses to each other, which they pay for with the money they borrowed from China. That’s now Over.

The Party is over now. American Households took a $ 13 Trillion hit on their wealth between the housing collapse and prices of nearly all Assets fell.

Now the sad Truth is that, the rising value of their house is not going to provide for their retirement. Thus they have got to start saving again.

Yes, This is true. Since Last 2 decades, the scenario was like this. You buy a House on Mortgage of 15-30 years, live in that house and on retirement sell that house for literally 10 times of inflated price than its real value. And up to now, Real Estate was the Asset which was fueling Retirement of most of the Americans on their retirement.

Buying a House & Selling it on the Retirement for hyper inflated Capital Gains was a trend in America. But Now because of the collapse in the Housing market, those days are gone when you can make fortunes out of Housing Market.

Now, everybody will have to Save & Invest Money regularly if they want to retire with Financial peace. You can not retire now in USA by simply selling your House….!!!

Best Debt Funds India 2009

Here are the Best Debt Funds of India. All of them have a proven past record of more than 3 years of good performance. Investment in any one or more of the below funds is really worth it.

01) ICICI Prudential Gilt Investment PF

02) Canara Robeco Income

03) ICICI Prudential Gilt Investment

04) ICICI Prudential Income Inst

05) Birla Sun Life MIP II Savings 5

06) DBS Chola MIP

07) Reliance MIP

08) ICICI Prudential Income

09) Fortis Flexi Debt Reg

Debt Mutual Funds provide a stability to your portfolio during the time of stock market turmoil. Debt allocation in any one’s portfolio should be according to the age & risk appetite.

So Invest in any of the above well managed Debt funds…!!!

Let us today discuss about my own Mutual Funds Portfolio. I have Invested Rs.2,00,000 (2 Lakhs) in 7 Equity Diversified Mutual Funds on May 2007. Today 2 years have been passed and Economy’s Great Recession/Depression has also running. We are in the Middle of the Recession.

Let us discuss that, How much return my MF Portfolio has generated up to now?

Last year, I have reshuffled my MF Portfolio & make it just 4 MFs Compact Portfolio. Out of which 3 funds are Large Cap funds while 1 is Mid cap Fund.

Here is my MF Portfolio.

01) DSP Blackrock Lynch T.I.G.E.R. Fund

02) HDFC Top 200 Fund

03) SBI Magnum Umbrella Contra Fund

04) Reliance Growth Fund (Midcap Fund)

Today the Net worth of My Portfolio is Rs.2,30,000. And that is Rs.30,000 Net profit and this is 7.5% Compounded Annual Return since May 2007.

Now, 7.5% Compounded annual Return is much better return if we consider the last 2 years. Because the year 2008 was the year of Recession & Economic slowdown world wide. And even though today My Portfolio has given me 7.5% Compounded Annual Return.

Of course, Gold has given much higher return than this. But in the Long run, the Equity will definitely beat any other Asset Class.

Just tell me that, How Many of you have achieved the same returns like me from Equity during the same time period (7-8% Compounded Annual).?

Not Many Right?,….. Because the most important factor that prevents you from staying Invested in the market is FEAR. And the other factor that forces you to Invest in the speculative items is the GREED.

I know several of my friends who have lost almost 50-90% of their Portfolio Worth during the same time. And during the same time My Invested money have given me + 7.5% Compounded Annual Return.

Is it because I have invested in the above 4 Mutual Funds?….Well, I don’t think so. Actually Investment is Not Risky but Investor is Risky.

Just Remember my Words,

“95% of the people have made money who have invested in the stock market for more than 5 years and 100% people have made money from the stock market who have invested for more than 10 years… Of course in the Fundamental Companies.”

So Invest in Fundamental Companies and Go to Sleep…..!!!!!