How much Amit Agarwal Earns from AdSense?

Many of you may not know MR.Amit Agarwal. Let me introduce him. Well, Amit Agarwal is from Agra and he is i think around 32-33 years old and he is India’s Most successful Blogger. Yes, He has made his fortune out of Blogging only.

He is the founder of a world famous Technology Blog – Digital Inspiration (Labnol.org)

Amit is also a founder of the Professional Blogging Industry in India. He has launched his amazing blog in the year 2004. Amit has quit his full time job in the year 2004 to become India’s first professional Blogger.

You can read more about Amit Agarwal Here

So How much Amit Agarwal earns every year from his Blog? Well, according to Amit, his main Income stream is from Google AdSense and in his one article, he has mentioned that he is making 6 figure income in dollars from Google AdSense every year from his blog.

Now, 6 figure Income means Income more than $ 1,00,000 (Rs.50 Lakhs). I have analyzed the traffic stats of his blog and according to me, he is making not less than $ 1000 per day from his blog….!!!! So it means that Amit Agarwal is making around US $ 3,65,000 every year from his Blog…..!!!!

And that is Rs. 1.80 Crore….!!!!

So it means that it is possible to make a fortune out of a Blogging only. In the Information age, Blog is a Business and it’s owner is a CEO….

Let’s Hope that, all Bloggers can achieve the same level of Income from their Blogs like Amit Agarwal…!!!!

How much Does an Average Millionaire Spend on Car?

Well, you are going to be Disappointed……!!!!!

According to the study done on literally thousands of Millionaire household in USA, the study shows that more than 85% of the Millionaires spend not more than 1% of their Total Net worth behind buying a car.

So it means that is someone has a net worth of $ 1 Million than he will buy a car worth not more than $ 10,000 and if someone’s net worth is $ 10 Million that he will buy a car not more than $ 1,00,000. This stats applies to 85% of the Millionaires in USA.

In fact, according to the study, many millionaires drive even a second hand car. And several millionaires drive a car that is more than 5 years old model. Than what’s the logic behind buying a second hand car?

Well, Because the real millionaires think that the car is a depreciating item. And they only spend their money behind accumulating appreciating assets only such as stocks, bonds, gold, mutual funds, businesses, real estate…etc… Another logic is that, Millionaires think that a newly bought car will loose more than 60% of its value within first 4 years from you buy. So instead of buying a new car, why don’t buy 2-3 years old car because the previous owner has already suffered a great financial loss.

Now, you will ask that, than who are those people who drive these expensive cars? Why there are so many expensive cars there in any major city? Well, these are basically upper middle class people also known as Consumer Class. These are not really rich people. These are the people who spend more than they earn. These are the people who can buy a car as high as 90% of their Net Worth. These are not actually rich people. They just look rich because they have bought a luxurious car with borrowed money (Car Finance).

So understand that, who are the true millionaires in the economy and you will understand that which car they drive and how much they spend behind it…!!!

How Much Can you make by Selling a Facebook Application?

This is the information age and many internet entrepreneurs are making literally millions of dollars online. There are lots of Business opportunities on the Internet. One such business opportunity is Facebook Application.

Let me tell you something about Facebook. Facebook is world’s largest social network. It has above 200 million users worldwide. So do you know that what it means? Well, it means that if Facebook was a country than it was world’s fifth largest country. So What does it mean to an Entrepreneur?…..Well, A Great Business Opportunity.

Because if you start your business on the facebook than it means that you are doing a Business in the country having 200 Million (20 Crore) of Population. One such business opportunity on facebook is Facebook application.

Many FB Apps are making literally millions of dollars every year. The Best part about FB apps is that, they run without the presence of their owners. Means it’s a totally passive stream of income. Once your application is launched successfully, people won’t stop playing the game and the constant income will keep flowing.

FB Application is the Intellectual Property in its purest form. It’s an Internet Business itself. Owning a FB Application is just like owning any other asset such as stocks, bonds, mutual funds or rental properties. Means as long as you hold it, you will get steady income and when you sell it, you will be benefited by the huge Capital Gains. Now, the question here is that, how much can you make by selling a FB Application?

Well, the valuation of FB app is really depends on its popularity and number of users using it. Investors usually pay anywhere between $10-45 per user. So suppose if your FB application has 1,00,000 users the buyer may pay you anywhere between $1 – 4.5 Millions…!!!!

Another valuation criteria is the actual revenue it generates. The multiplication factor is usually 10 for such kind of assets. So suppose if your FB application is generation $ 10,000 per year than it should be worth US $ 1,00,000.

If you work hard behind the popularity of your FB application than you can make millions of dollars in very less time…!!!

How Many Indians Earn more than Rs.5 Lakhs per Annum?

Well, not many. There is a wide disparity among the income of Indians. In fact, there are many Income groups in India. But very few people in India earn more than 5 lakhs per Annum. And those who earn more than 5 lakhs per annum make much much more than this.

Here are those people who earn more than 5 lakhs per annum

- Investors
- Business Owners
- High Skilled Professionals (Doctors, Lawyers, Chartered Accountants…etc…)
- IT Professionals & Software Engineers.

All of the above group people are making more than 5 lakhs per annum. But wait, earning more than 5 lakhs per annum doesn’t mean that these people are rich. Only few people are rich and wealthy out of those who earn this much money every year.

These people are mainly Investors & Business Owners. Unfortunately most of the high skilled professionals are not rich and wealthy even though they look and behave like rich.

Do You Know Why?…. Well, because they have adopted the high consumption and status life style. They earn more to spend more. They spend more than they earn by using credit cards and borrowing money.

They think that, you can look cool and rich by spending more. But the reality is that, you can not be rich and wealthy by spending more but you can only become rich by accumulating more. The Wealth has to be accumulated. You can not be rich by spending more.

Typical wealthy people live well below their means, they save more and accumulate assets out of their money. They don’t believe in high status material possession such as Cars, Mobiles, Expensive clothes and watches.

So if you want to become a true rich and wealthy than spend more behind accumulating some real Assets such as Stocks, Bonds, Gold, Real Estate, Mutual Funds…etc…

How Long does a Recession traditionally Last?

Recession does not last forever. Many people fear that How Long the Recession will Last? Some people believe that, recession will last for longer time and thus they withdraw their investments. They liquidate their portfolios.

But Well, Let me tell you that What is Recession & How it Works & How Long it Lasts?

Well, Recession means negative GDP for 2 consecutive quarters. See the above diagram of Normal Business Cycle. Let me tell you here that, Recession is a part of a Normal Business Cycle. Every 5-7 years a period of Contraction in the economy occurs which bottom outs (Trough) and than economy again starts recovering and the next time it breaks the growth of previous Growth (Prosperity).

Typically a recession lasts for 18 months. Except the great depression of 1929 which lasted for 4 years.

Sometimes after recovery, economy may again go down. This is known as double dip recession or “W” shaped recession. And sometimes the economy bounce back but does not break the previous growth and remains stable and that is known as Square root recession.

During this 18 months of period, the economy completely bottoms out. This level is known as trough. Recession is in many ways useful for the healthy economy in the long term. There are several advantages of the recession also.

One is that, Any non-viable business will be finished during the time of recession which is good for long term health of the economy. All the speculators will be wiped out during the time of recession which is also beneficial.

Another advantage of Recession is that, during the recession 2 things are available very cheap

01) Cheap Labour &
02) Cheap Assets

both of these things are required for any Business. So if you start your Business during the time of recession than you will find a cheap labour as well as Assets for your Business at low price.

So Don’t beware of Recession. Simply Start your Own Business during the time of recession and believe me….You won’t fail…!!!

Review: How is SBI Pension Plan?

Recently one of my friend has asked me that, how is SBI Pension Plan? Should I Invest in them? I asked in reply 3 questions.

01) Do you Invest in Equity Mutual Funds?

02) Do you have term Life Insurance Policy?

03) Do you Invest in Tax Saving (80C) products (PPF, ELSS..etc..)

My Friend has answered “Yes” for all of the above 3 questions. And I am sure that, most of the people in India will answer “Yes” to all of the above 3 questions.

If you answer all of the above 3 questions – Yes. Than Don’t go for Pension Plans. Because the Pension Plans are nothing but the opaque mutual funds only. They will charge you anywhere between 10-20% entry fee and various other administrative charges and invest rest of the money in equity.

So instead of that why not invest in equity mutual funds which charge 0% entry load and buy separate term Life Insurance Policy? And simultaneously why not invest in 80C products such as PPF and ELSS to save tax which are more tax efficient options?

So In my opinion, Don’t go for any kind of Pension Plan. Instead of that go for Equity Diversified Mutual Funds + Term Life Insurance Policy + PPF / ELSS

It is cheaper to invest in all the things separately rather than going for Pension Plans.

Well, see. You try to understand the fact that, the Modern Pension Plans are not like old one. The old pension plans were Defined Benefits Pensions plans while the Modern Pension Plans are the Defined Contribution Pension Plans. So Don’t go for Pension Plans… It’s not a good financial decision…!!!

Diagram: IPL Cricket 20-20 Team Franchise Earnings / Revenue / Profit

See the above Line Diagram. The Diagram shows that, How IPL Cricket 20-20 Franchises Make Profit? The figure shows various Revenue streams of IPL Cricket teams.

The major Revenue stream is the – Central Revenues -

01) 80% of TV revenues for first 5 years & 60% for up to 10 years.

02) 60% of Sponsorship revenues for years 1-10.

Thus, according to the above diagram, the 2 major income stream of IPL teams is TV Broadcasting revenues and Sponsorship Revenues.

The Minor Revenue Stream is the – Local Revenues -

01) Hospitality & Premium Seating
02) Franchisee shirt sponsorship
03) Match day concessions
04) Gate Revenues
05) Local Sponsorship
06) Match Day Promotions
07) Tech Media Platforms
08) Licensing programme

Thus, IPL Cricket teams have several large and small revenue streams. The main sponsorship is advertising Income. Thus, IPL Franchise is a profitable Business.

How Can I Make Daily SIP Investment?

Recently, many mutual fund houses in India have launched a Daily SIP schemes to attract the fresh money from the retail investors. Daily SIP Plans allow investors to invest a small amount of money on the daily basis, if they so wish to.

Right now, two Mutual Fund houses have floated Daily SIP Schemes

01) Bharti AXA &

02) Sahara Mutual Fund

Both of these fund houses have launched a Daily SIP Schemes. Here is a step by step guide of How can you make Daily SIP Investment?

Step: 1 Go the websites of Bharti AXA or Sahara Mutual Fund. Find out the Daily SIP Plan.

Step: 2 Download the application form and print it.

Step: 3 Fill the form. Fill all the necessary details and fill the amount of SIP you want to start.

Step: 4 Call the Customer Care and tell them that you want to start Daily SIP. They will send their executives at your home. You simply give the application form to their executive. The Executive will verify the details and submit the form on behalf of you

Step: 5 You are Done. You will start receiving monthly Statement via courier.

Alternatively, you can invest in Daily SIP from your online Demat account also such as ICICIDirect.com. Simply put the order online and your Daily SIP will start right away. No need to do any paperwork or large documentation.

The main advantage of Daily SIP is that, it will do rupee-cost-averaging for you on the daily basis. And thus it will reduce your over all entry price in the market sharply…!!!

How Google Pay for AdSense to its Indian Customers?

All of you know the Google AdSense. Those who don’t know anything about AdSense, let me tell you that it’s the amazing software in the history of the mankind.

Every year, Google AdSense & AdWords generate US $ 20 Billion of Revenue for Google (Yes, That’s Billion). I have received my first cheque of US $ 104 just few months back from Google at my home in Ahmedabad, Gujarat, India.

And I have receive my Google AdSense cheque within one week of release. My Cheque was issued from Citi Bank, India. So I think that, Google pays for AdSense to Indian Customers via Citibank branch of India.

They don’t issue cheques from USA, but the cheques are issued from Indian branch of Citi Bank only. This month I will again receive my next cheque because my Google AdSense account Balance is well above $ 100. I am likely to receive my next adsense cheque in the November 2009.

AdSense is a steady flow of Income. It’s completely passive. Means once you develop a great blog, forum or website, the adsense money will constantly and passively flowing in. All the hard work you do is during the starting phase of your Blog/Website. You have to Invest upfront time in case of Blogging or any other Internet Business.

Take the Example of myself. I run this blog since March 2008. I work 10 hours a day behind this blog since than. Well, many people think that, I will have to work like this forever. But well this is not true. Suppose if today I stop working than this Blog will still make money for me. The only thing is that, it will stop growing in its size and thus Revenue. But it’s not like a job that if I stop working today, i will lose that entire stream of Income.

In case of 9-5 job, you have to work hard every month if you want to receive a paycheck at the end of the month and if you loose a job than you will loss whole of that Income stream. And to continue that Income stream, you have to work hard every day…. This is not the case of me. Because I Run an Internet Business.

How Do Movie Producers Make Money?

Yes they make money but how? They spend so much on making the movie, how do they get all that and more back?

Well, everyone of you may have such kind of question. Let us today discuss that, how the maths behind money making from movies work?

Well, a Movie is an Asset. It’s just like any other asset in the world such as stocks, bonds, gold, real estate or mutual funds. The Movie falls under the category of “Intellectual Property” also known as IP Assets. Intellect means mind and intellectual means mind work.

Here are the few examples of Intellectual property -

- Movies (Real and Animated Both)
- Sound / Music
- Novel
- Sketches
- Art
- Book
- Painting
- Articles
- Domain Names
- Business Plans…etc…

Now, all of you know that, movies make huge money on Box Office means during the first few weeks of its release in Cinema Halls. This is the period where Movie Producers get back their original money. But What if the movie is not successful?

Well, still than the movie owner makes money. Well, making a movie is one time hard work. Once you do this hard work, you have build a steady stream of the Passive Income. Yes, Passive Income. Every year the movie producers get a check of royalty that can be in crores.

Because every time, when a TV Channel shows a movie to its audience, that TV Channel has to pay royalty to the movie producer. Every time when people buy CDs or DVDs of that movie, the royalty comes in. It is different thing that the piracy has affected the over all revenues of this Income. But still it’s a huge source of steady and passive income.

The movies which were made and released in 1950s and 60s are still making lakhs and crores of rupees every year for its producers.

Famous Film Production Houses sometimes don’t focus on quality of the movie. They only focus on the quantity of the movie. Because every time they make a movie, this Asset will be added into their existing portfolio of the movies.

In Bollywood there are few movie makers who holds the movie portfolio of more than 100 Super Duper Hit movies…!!!!

The great part of making a movie or any other IP Asset is that, you have to work hard initially only. Once you make that movie (Asset), it will keep generating steady passive income for you and your future generations forever…!!!

Hi Asav,
I have a well diversified portfolio with Mutual funds from Balanced portfolio, Equity-Diversified portfolio, Small+Mid-Cap portfolio, one in tax-saving and one in sectoral portfolio. To protect myself from the volatility in markets, and market crashes, or to keep the profits from my stock trading away from market voltalility I was planning to transfer my money into those schemes(arbitrage/debts/commodity) which will protect my money and yet give some decent returns.

Example:
Arbitrage funds: would be complete Risk free but r.o.r ~ 2% quarterly.
Debts : 6-7%
Commodity : Not risk free, hence wont protect the money.

Do you know of some other scheme/asset where I can invest the money that I am able to earn from stock trading, so as to build up a good amount of money before utilizing it for my purpose. This should not have any lock-in as in case of PPFs and I do not prefer FD's.

Also, I wanted to ask does switching from one scheme to another scheme within same AMC goes through the redemption and then investment procedure, or it is directly transferred within the AMC and hence does not costs us the exit-load and also the taxes(short term capital gain).
Reader

Answer-1 Tax Implications on Switching

From the tax angle, all switches are considered as if you are redeeming the investment
from the fund and a fresh investment is made in a new scheme.

It doesn't matter whether the switching is between two options (Growth or Dividend) of the
same scheme or two schemes of the same fund house or different fund house.

Just because the AMC is able to switch without the money actually coming into your possession does not mean that the government will not trouble you for its pound of flesh.

Answer-2 How to protect your money

You have given the 3 options to protect your money – Arbitrage funds, Debt & Commodity. According to me, don’t go for Arbitrage funds because arbitrage opportunities are very less in such kind of market and on the top of this, Arbitrage funds returns are not assured.

I suggest you to go for 2 things.

01) Debt &
02) Gold

In Debt also, it is advisable to go for Gilt (Government Securities) mutual funds. Gold is the safe heaven for your Money. In fact, Gold is the real money. I suggest you to go for Gold ETFs rather than investing in physical gold.

So Why I stress on gold? Is it because it has outperformed than any other asset class in past few years?…..Well….NO….The logic behind this is very deep.

Well, see previously, US Dollar and all the other currencies of world were backed by the Gold. But after 1971, President Nixon of USA had removed the Gold Standard. Thus, Modern Money is not backed by anything. Modern Money is a Currency. The Governments and Central banks all around the world can print as much money as they want according to the need for businesses and economy.

Now, take the example of US Government. It has printed literally $ 1.2 Trillion in the economy out of thin air only.

Now, you will ask that, what is the problem with printing money like this? Well, the newly printed money will dilute the purchasing power of the current existing money in the economy because of the hyperinflation.

Now, Gold is the only asset class which has a strong negative correlation with the Gold. Since 2007, the Gold price has been doubled. Previously the gold was selling at Rs.7000 per 10 gram but now it is selling at Rs.15,000 per 10 gram.

So What it means? Well, it means that US Government has printed double amount of money than previously existed in the economy and pushed it into the economy……Yes….THIS IS TRUE… You may not believe this but this is true.

And yeahh…when you see the monetary stats of USA, this is true. Up to now (2007), the Monetary base was $ 800 Billion. It means that since last 100 years USA has printed $ 800 Billion. But since2007-2009, it has increased its monetary base to US $ 1.7 Trillion ($ 1700 Billion). Yeah….It means that, US Government has printed double amount of money in last 2 years only. And this is why Gold has doubles in last 2 years only.

So Invest your money in Gold if you really want to protect it. And the second option is Debt…!!!

How Does Sweat Equity Works with Employees?

Well, many of you may not know anything about what is Sweat Equity and how does it work? In this article, I will teach you that What it means by sweat equity and how it works?

Sweat Equity: Sweat equity is generally considered all the voluntary unpaid work that is often required in the first years of a new business. This work is usually unpaid because the new business cannot afford to pay wages or salaries during start-up. The commitment by members to provide sweat equity is often essential for the success of the business.

Now, let us discuss the example of this Blog. This Blog is my Internet Business and I own this blog via my family promoted Company, “PATEL EDUCATION PRIVATE LIMITED”.

Now, I work 10 hours a day behind this blog. Now, suppose if I count Rs.50 per hour as my wage than I should get paid Rs.500 per Day and thus, Rs.15,000 per Day. Now the Business is in start-up phase so it can’t afford to give me Rs.15,000 per month.

So instead of that my Company will issue me 1500 Shares of it every month. In this way, my ownership and hold over the company will rise over the time. This is known as sweat equity. Initial days of any business are very critical and there is a great role of Sweat Equity.

Almost every today’s successful Businesses had been worked on Sweat Equity Model. Thus, start-up Business work by Sweat Equity. True Entrepreneurs work very very hard during the initial phase of any Business and get the advantage of Sweat Equity during the initial years of the Business.

How Gold Loan Works?

Recently, private sector banks of India have entered into the highly un organized market, The market of loan against gold (Gold Loan). Yes, HDFC, SBI and ICICI Bank have entered into this highly un organized market.

So How Gold Loan Works? -

Well, once you decide to borrow money against your gold, you can simply walk to your nearest Bank branch. You can borrow loan against Gold Bars, jewellery, Gold ETF or any other form of Gold. You just fill up the loan application and the amount of loan you want to take.

Usually the bank will give you up to the 80% loan of the gold price. The Best part about getting this loan is that, No Income proof is requires. Because here you are putting a Gold, the most precious asset as a security so NO Income proofs required. Even if you come from low income category, you can get this loan.

Within few hours, the bank will process your application and open a Loan account in name of you. You will be charged the interest rate only on the amount that you withdraw from the loan account.

You have to check the interest rate table for availing a gold loan from the websites of the bank.

Banks and Financial institutes in India are entering into this market because they know that, Indian people have an attachment with gold and they can’t afford to default on a loan against gold. And more over, taking a loan against gold is a family decision and not the individual decision in Indian families.

How Does Tycoon Cashflow Works?

Those who don’t know anything about Tycoon Cashflow, let me introduce it first. Well, Tycoon Cashflow is world’s one of the best affiliate marketing program. Now, many of you may ask that, What is Affiliate Marketing? Well, Affiliate marketing means you sell other people’s product and get huge commission (usually 20-80%) on it.

Affiliate Marketing, if applied properly can make you tons of money. You can apply affiliate marketing on your Blog or website and earn literally hundreds of thousands of Bugs. The owners of the Tycoon Cashflow was able to make well above $ 3000 a day when he was just 19 without having any high paying job or college degree.

Now, How Does Tycoon Cashflow Works? – Well, the owner Derek claims that, it’s easy to use program. You can simply buy this programme from him for just US $ 60. Sometimes he may offer you 50% Discount or FREE also. I get whole of this course FREE via his e-mail. The course is in very easy to understand language. Anybody can simply follow the step by step instruction and start affiliating marketing right away.

At the end, as an example, you can also sell his own product as an affiliate marketing on Clickbank.com.

They will provide you all the keyword analysis also. It’s amazing. You don’t have to spend long hours behind keyword analysis. You just write down articles on every keywords they have provided and that’s it, Search Engine will start throwing a web traffic towards you and Sale will come automatically…

How Easy is it to become a Business Owner at Young Age?

When I was in School, (1988-2000), my parents used to tell me that, You can own a Business because you are too young. Only a mature person can own a Business.

But well, those were the days of Industrial Age (Before 1990), after 1990, Information age started and because of the birth of the Internet, many millionaires and billionaires born and will be born. Kids who born after 1990 have seen the world differently. They have seen the world with the eye of Internet and that’s why they have made their fortunes in the Internet.

Today, a high school going kid may earn more money than the doctor. How?…. Well by owning an Internet Business.

Yes, It’s now easy to become a Business owner (Internet Business owner) at young age. In fact, there are several examples in the world where high school going kids are making 6 figure income from their Websites, Blogs, Forums, Facebook applications…etc…

And many people who are in their early twenties, work 2 hours a day, make 6 figure income and travel the world. Well, Yes, I am not kidding. Just surf the Internet deeply and you will find such kind of people everywhere around the world.

So gone are the days when only adults (above 18) were used to own a Business. But now anyone can own a Business, even a teen age kid can own his/her own Business. You just have to launch your website/blog/forum/eBay shop and that’s it…. You are the owner of your own Business….

So What are you waiting for? Start Building your fortune with the Internet and get Rich Quick…!!!

How do I Redeem NSC (National Savings Certificate) India?

Recently a reader has asked me the following question.

“have some NSC's issued by a particular post office. To redeem/encash them, do I have to visit the same post office again, or is there another way?
Reader”

Well 
You need not go to that particular post office where you purchased. you go to your nearest post any where in India and give an application to the post master and submit NSC bonds there .they send to the post office where u purchased at their risk and issue your money in 15 - 20 days in cash after conformation form the old post office.
but you do not forget to take acknowledgement on Xerox bonds what all you submit in post office.

Wine Investment: How do I Invest in Wine Bonds?

Few weeks back, I have post the article,

How to Invest in Wine?

Wine is the exotic asset class. And Investors invest in wine for Capital appreciation. Owning a stock of wine is exactly same like owning a piece of real estate, stocks, bonds, gold, mutual funds or any other asset class. Old Wines appreciate much more faster than equity sometimes.

Previously Wine Investment was a game of rich people only. But now many companies have entered and set Wine Investment funds just like mutual funds.

“Wine investment is no longer the preserve of the rich and flash city types; you don't even need a cellar to take advantage of the large returns wine can offer.

In the last ten years the wine investment market has become both more accessible and complex, with many funds and investment vehicles being set up. While investors can still buy cases of wine to store and drink themselves, wine investment companies will manage a wine portfolio in the same way a stocks and shares portfolio would be managed, trading on the clients' behalf sometimes without any investor input.

While some wine investment companies will have their own storage facilities and move any wine they acquire on a clients behalf into the company's cellar, most will buy and sell without ever moving the wine. This allows the investment body to be very selective about which chateaux and years they chose to invest in, often selecting either only 'first growth' – the most expensive and exclusive classification of wines.

The Liv-ex 100 index- the index which tracks the world’s most sought after wines- is up 10pc in the last year. Prices were hit by the economic crisis, a case of Lafite 2005 was worth in the region of £12,000 two years ago, but the market as a whole fell about 20pc, and Lafite prices were especially hit with bottles dropping by more than 50pc to just £5,500 in December last year. You can now pick up a case for around £7,500.”

In short, Wine Funds work like Gold Mutual Funds, Real Estate Mutual Funds or Equity Mutual Funds. The Fund manager of the wine fund manages the portfolio of wines on behalf of you and you can enjoy the superior returns.

Have you ever think that, “How Do Billionaires Live?”. Well, not the all the Billionaires live a celebrity life. Unfortunately most of the people in our world think that al the Billionaires live a celebrity life. But well, this is not true.

Let’s take the Example of Warren Buffet, The legendary Investor also known as “Oracle of Omaha”.

Warren Buffet is the Chairman of his publically listed Investment Company Berkshire Hathaway. He is the second richest person of the world after Bill Gates (Forbes 2009). Now, How much salary Warren Buffet take away home every year?…. Well, US $ 1,00,000 only.

Yes, This is true. He lives on $ 1,00,000 a year. Of course, he owns a private jet in the name of his company. But he still lives in the same house which he had bought around 2 decades ago. Warren Buffet only buy those things which he really needs. He lives a simple lifestyle.

Now, let us discuss the another Example. The Example of Donald Trump – The Billionaire Real Estate Tycoon.

Donald Trump lives a celebrity life style. He drives Limousine and lives like a celebrity. He spends lots of money behind his expensive life style.

So both of the above are the different lifestyles of Billionaires. It is not that all the Billionaires live like Warren Buffet nor it is true that all the billionaires live like Donald Trump. It is the matter of personal choice. Some want to live like a celebrity while some want to live simple.

Do you know that, Billionaires first focus and than diversify. While rest of the other people in this world first diversify and than try to focus. And that’s why they struggle financially. Billionaires first of all concentrate on their own businesses, they grow it like anything and later on they diversify.

Now, How they Diversify? How do Billionaires Diversify?

Well, first of all let me tell you one unique characteristic of Billionaires. Billionaires promote Businesses. Each time, they have a capital to invest, they promote a new company and add it into their portfolio.

Yes, Unlike most of the other people Billionaires promote their own Businesses. They don’t prefer to invest in other people’s Businesses. Say for Example, take the Example of Reliance & TATA Group. Reliance is in every Business sector. TATA Group has 96 Businesses.

Billionaires diversify on various industries but they want a control over the Businesses. And that’s why they don’t invest in someone else’s Businesses. They promote their own Businesses so that they have a control over those Businesses.

TATA Group has 96 Businesses out of which 28 Businesses are publically listed. There are several reasons to take their Businesses public. Once common reason is for the growth and expansion of their business and another common reason is to diversify the risk.

Now, look at yourself. What the most of the Financial Planners give you the advise? They say you to Diversify to reduce the risk. And once you diversify they say you that, Now Hope for the Growth…!!!

But Billionaires first achieve the growth of their Business and than Diversify. This is how Billionaires Diversify…!!!

Today is Bill Gates Birthday: 28th October, 1955

Today is 28th October,2009. Today is the birthday of World’s Richest person Bill Gates, The Founder and Chairman of Microsoft Corporation.

William Henry “Bill” Gates III was born on 28th October 1955. He is the American Business Tycoon, Philanthropist and Chairman of Microsoft Corporation. Bill Gates is 54 years old.

Bill Gates has founded Microsoft in the year 1975. It means that, when he was only 20 years old, he founded the great Business. After that in 1986, Microsoft went public. At that time, Bill gates was 31 years old.

Bill Married to Malinda Gates and he has 3 children.

Jennifer Katharine Gates (b.1996)
Rory John Gates (b.1999)
Phoebe Adele Gates (b.2002)

Since 2000, Bill Gates retired at the position of CEO from Microsoft but he is still continue as a post of Chairman. Bill Gates owns 800 Million (8% Stake) shares in Microsoft Corporation, making his Net Worth of more than US $ 40 Billion (2009, Forbes). He is the single largest shareholder of Microsoft Corporation on the earthy.

Bill has founded Bill and Malinda Gates Foundation few years back which funds 95% of the Polio funding worldwide.

Outside the Microsoft, Bill has several investments. Bill has done many lucrative investments in profitable Businesses via Cascade Investments.

Bill Gates is the Top 100 Most influential people of the Century. Bill Gates has also founded bgC3 Company. The company’s function is,

He has also investments in Corbis. Corbis is privately owned by Bill Gates. He founded this Company in 1989. Corbis Corporation is an American company, based in Seattle, Washington, that sells and otherwise distributes photography and film footage and related rights. It has a collection of more than 100 million images and a footage library.

Codex Leicester, a collection of articles by Leonardo Da Vinci - Also among Gates's private acquisitions is the Codex Leicester, a collection of writings by Leonardo da Vinci, which Gates bought for $30.8 million at an auction in 1994.

How does the Compound interest work for Bill Gates?

As I have already told you in many of my previous articles that, the compound interest is the greatest force in the universe. And over the time, compound interest is so powerful that it multiplies your wealth in a breath taking manner.

But for that, you have to invest for longer time or you have to start early. The Compound interest works on every asset in this world such as Stocks, Bond, Gold, Real Estate, Businesses, Art, Paintings or any other Assets in this world.

Now, Let us discuss that, How Compound interest may have worked for Bill Gates?

Well, See. Bill Gates was born on 28th October, 1955. And he founded Microsoft on 4th April, 1975. And Microsoft first time gone public on 13 March, 1986.

Now, analyze the above dates in deep. Bill Gates was born in 1955 and he started his company Microsoft in 1975. It means that, Bill Gates has started building his own Empire at the age of 20 Years only….. Can you believe this? At the age of 20 years he started his own Business…Microsoft…!!!!

Now, the Microsoft went public on 1986 means when bill was 31 years old. And Today is 2009 so Bill gates is 54 years old and Microsoft is 34 years old.

In short, the Compound interest worked on Bill Gates Wealth since last more than 34 years. And since 1986, the Microsoft is publically listed company so its share prices gone high since than.

Now, just tell me that, How many of you have started building your empire at the age of 20 years only? Not Many right? This is the key of developing a successful Business Empire. The founder MUST have to start early.

If you don’t start early, you may not become this much wealthy….!!!!

How Carlos Slim Helu Lost US $ 25 Billion?

Carlos Slim Helu is world’s third richest person. He is the third Billionaire in Forbes list of Billionaires after Bill Gates & Warren Buffet. Those who don’t know anything about Carlos, Let me tell you brief bio of Carlos Slim Helu.

Biography of Carlos Slim Helu -

Carlos Slim Helú (Spanish pronunciation: [ˈkarlos eˈslim eˈlu]), simply known as Carlos Slim (born January 28, 1940) is a Mexican engineer, businessman and philanthropist largely focused on the telecommunications industry. He s currently the third wealthiest person in the world with a net worth of around US$35 billion through his holdings. He was able to raise money for a telecommunications company by purchasing standby letters of credit which enabled him to obtain guaranteed loans which provided the capital.^[1]

Slim has a substantial influence over the telecommunications industry in Mexico and much of Latin America. He controls Teléfonos de México (Telmex), Telcel and América Móvil companies. Though he maintains an active involvement in his companies, his three sons — Carlos, Marco Antonio and Patrick Slim Domit — head them on a day-to-day basis

How He lost $ 25 Billion? -

According to the Forbes Magazine, Carlos has lost $ 25 Billion in the year 2008. Many people think that he has suffered a great loss. But in reality, this is not true. This Loss is “On Paper” only. The loss of all the Billionaires are on paper only.

This loss is because of the hammering of his share prices in his own publically listed company due to the effect of recession. In reality he has not loss a single dollar. His telecomm business is as profitable today as it was before recession.

These are just the valuations of the share price which reflect on the stock exchanges. These are the On paper losses only.

All the Billionaires of world have lost literally billions of dollars last year but all of this loss is in the share price of their respective companies. In reality, all the Businesses are most profitable.

How Can Physicians make money online by writing Articles?

Physicians are the professionals having very sound knowledge about Medical Diseases. They have to deal with drugs and that’s why their knowledge about disease pathology is up to date. A Physician can make money online also by writing articles about various diseases for popular Article directories, Online Health Magazines & Health Blogs.

Here are few ways by which a physician can make money online by writing articles. However, there are many ways to make money online by writing articles.

01) Write for eHow -

One common way to make money online writing articles as a physician is that, register with eHow and write articles about various diseases in simple and easy to understand language. eHow will pay you via its Writers Compensation Programme (WCP). Means according to the web traffic and popularity your articles generate, eHow will pay you the Royalty for life time. This is Best. It’s purely a Passive Income. Means suppose if you write 1000+ Good quality articles for eHow than your Articles portfolio will become your Asset and you may receive a Passive Income which may be much higher than your monthly living expense.

02) Register with ELANCE -

Alternatively you can also register with Elance. Elance is a great market place. anyone can contact you via Elance. It may be a famous Health Blog or a popular online health news paper or a health product. They will ask you to create the content that is useful to their readers. And they will pay you $3-10 per Article. If you become a popular writer than you can charge as high as $ 10 per article otherwise you have to charge less.

03) Start your own Blog Business -

Alternatively you can start your own Blogging Business and write for yourself. Here you don’t have to sell your articles to anybody. Everything you write will be stored in the Blog Archive and over the time, that Blog Archive will become your most precious asset. So How to make money from Blog? Well, Google AdSense is the Best way to make money from your Blog.

My favourite way to make money by writing articles is the third one – Blogging Business. I have write 2000+ Information rich articles on this Blog. I have never sell my articles nor write for anyone else. And today this Blog is generating well over $ 100 per month every month. But for this, You will have to work hard for minimum 2 years and it will require a lots of patience.

So Start making money by writing articles as a physician.

How Can I Make More Money as a Doctor?

Many of my Doctor friends asked me the above question many times – How can a doctor make more money? Well, this is because a Medical study is an ultra-long study. It will take more than a decade to become a doctor. Most of the Medical students will enter into the real learning life after the age of 30 years. And according to my experience, it is very embarrassing to ask for a pocket money from your parents when you are 30 years old.

I personally have experienced this feeling. When I have completed my Final MBBS, I was 23 years old and my IT Friends were earning like anything while my Internship salary was just Rs.3500 per month which is too low. So I still needed to ask for pocket money from my dad.

Today I am 26 years old and all of my medical friends still asking for pocket money from their dads. But Thanks to this Internet Business (This Blog) that I don’t need to ask for pocket money from my Dad. “My Journey To Billionaire Club” is generating well above US $ 100 per month passively for me so that i don’t need to ask pocket money from my parents.

So if you are a doctor and want to make more money than I suggest you to start your own Internet Business. There are several advantages of starting an Internet Business as a doctor.

First advantage is that, A Doctor/Medical Student is not fit for the traditional Industrial age businesses. Take the Example of myself. I know that, Food Business is profitable and I also know that, How to start and run a profitable Restaurant. But as a Medical student, I don’t have time to go for such kind of ventures. Because I have to study at least 5 hours a day in my field (Sometimes more than this).

But Internet Business is something that you can operate from anywhere. I am operating and running this blog from my Ophthalmology Department side room at D.Y.Patil University, Kolhapur, Maharashtra, India. I don’t need to go outside to run this Business. I can also run this Blog from my college reading library.

Now, I am not saying that, You also run a Finance Blog. I am running a Finance Blog because I am passionate about this subject and teaching people about Money, How it works & Investing is my Hobby. You can start anything online related to medical field also.

Take the Example of Cafemedico.net

Cafemedico is a Medical Discussion forum run buy my junior friend Deep here ate D.Y.Patil, Kolhapur. Deep has just completed his Final MBBS and he is in his internship. And he is running a successful medical forum and makes US $ 400-500 per months. And that’s Rs.20,000-25,000 per Month at the age of 23 only…!!!!

This is the advantage and power of the Internet. There are lots of Business, Investments and money making Opportunities hidden in the Internet.

So What are you waiting for? Start Building your own Empire Now…!!!

How Can I Invest my Money in IPL Cricket Team?

Recently few readers have asked me a question that, “I have few lakhs to invest in. How Can I invest my money in IPL Cricket Team?”

Well, up to now, IPL Cricket teams were the asset class of only Business Tycoons. Because there was only one way to invest in it and that is you fully buy-out the IPL Cricket team. But now, a common man can also invest in IPL Cricket teams…..How?

Well, See…. After 2012, all the IPL Teams can go public. Yes, according to the clause, each team can go public after 2012. So after that, the securities (Shares) of IPL Cricket teams will be freely traded on the various stock exchanges of India and any one can invest in their favourite cricket teams.

Owning a stock of IPL Cricket team is not like owning a piece of paper only. But it means that you are the that much portion of owner of that team. Not only this, buy after 2012, BCCI itself will go public. And you can invest in BCCI also once it will be listed on the stock exchange.

To own a part of the IPL Cricket teams, you don’t have to invest millions of dollars. You can invest in any of the IPL teams with only few thousand bugs in your pocket after 2012.

Rajasthan Royals was planning to go public this year only but after that, promoters had decided to sell its stake to Shilpa Shetty. In short, it is now possible for everyone in this world to invest in great IPL Cricket teams.

How to Grow Your Money with 10,000%?

Is it Possible to grow your money at the rate of 10,000% per Annum. I mean is it possible to grow your wealth at the rate of 100 times compounded annually? Well, I think Yes. It is possible to grow your wealth at this much rate. But How?…!!!

Of course,the answer is – By Doing Investments.

But most of the traditional investments don’t grow at this much faster rate. Such as Equity, Bonds, Gold & Real Estate. Equity can give you 15-20% annual return and that is also in the emerging economies only. In the developed economies it is very hard to get 2 digit return from the equity. Gold can only appreciate same as inflation and not more than that.

So How to grow your Money with this much rate?

Well, The answer is – Private Equity

Some start-up businesses grow at this much faster rates. Businesses like Reliance, Microsoft, Google, Facebook and eBay grown at this much faster rate when they were in their start-up phase and that’s why the owners of these businesses are Billionaires today.

But unfortunately, Private Equity Investments are out of reach from the most of the people because the minimum investment size in private equity investing is not less than 7 Figures in Dollars (Millions)..!!!

Than What to do? Well, the Best thing to invest in Private Equity is start your own Business and buy the shares of your own Company. And than grow your own start-up Business. If you do proper mind work than you can grow the valuation of your business at this much faster rate.

Take the Example of this Blog. “My Journey To Billionaire Club” is my Internet Business and I own this blog through my family owned Company, “PATEL EDUCATION PRIVATE LIMITED”. And you won’t believe this but I have grown the web traffic and thus the Revenue (Income) and Valuation of this blog at the rate of 1500% in the last year. That’s 15 times.

Just 1 year Back, the monthly web traffic of this blog was 1000 page views but today it is 15,000+ page views per month. It means that, in one year, I have grown this Business by 1500%. And I have done this as a part time only. So I think that, if you work behind your Business (Offline or Online) than you can grow it at the rate of 10,000%. It’s possible.

The only thing is that, you have to give extreme mind work like Bill Gates, Dhirubhai Ambani (Reliance) & Larry Page (Google).

How Do Billionaires Take Loans?

Have you ever think that, How Billionaires borrow money? How do they take loans? If you want a loan for personal expenses than you get a Personal (Signature) Loan on your Income Statement. But How do Billionaires take Loans?

Well, Billionaires take loans in following broad 2 ways.

01) Via their Businesses (Company) &

02) By Pledging their shares in their own Business (Usually Publically Listed).

One way by which Billionaires take loans is via their Businesses. They do everything in the name of their Company. They also borrow money in the name of their Company. They never take any loan in their own name.

Second way by which Billionaires take loans is by pledging their shares in their own Businesses. Their Stake in their own Publically listed Businesses is an Asset and they take a loan against that Security. But this is somewhat risky way to raise money. Because if they can’t repay that loan, they will not only loose their shares but they will also loose the ownership control over their company.

And on the top of this, it is acceptable that if they borrow money by pledging their shares to fund the growth and expansion of their own business but if they pledge their shares to fuel their billionaire lifestyle than it will have a bad impact on the other investors of the company and thus the prices of the shares of their publically listed company may go down.

Usually, Smart Billionaires prefer the first way to borrow money. They take loans in the name of their Company. This is the safe way in comparison to the second way…

How Do Billionaires Invest their Money?

Have you ever think that, How Billionaires Invest their money? What they do with their money other than spending behind life style? The lie style spending of billionaires is less than 2-3 % of their total wealth. Than what they do with the rest of the 95% of the wealth?

Of course, they do investments with rest of their money. But How they Invest?

Well, The First Investment Billionaires do is – Re-Investment in their own Businesses. Yes, This is true. Billionaires re-invest the profit of their businesses in their own businesses first of all. They keep growing the asset size of their business first. Because they know that, more the asset size, the more will be the Revenue. So they invest most of their money behind growth and expansion of their own businesses. they keep acquiring assets for their businesses out of their money.

Now, what next? Where do they invest rest of the money? Well, the Second Best & Favourite Billionaire Investment is – They Invest in other successful Businesses. They buy Stocks or Private Equity in other profitable Businesses. Because they love Businesses. Business is the most favourite asset class of Billionaires. I agree that, they do investments in Gold, Real Estate, Art, Antiques and rare wines. But their most favourite asset class is Business only. All the Billionaires in this world have invested and acquire large chunk of shares in other profitable businesses.

Third Billionaire Investment is the “Exotic Asset Classes”. They love to invest in Sports teams, Private Islands, Art, Paintings, Rare Coins, Antiques, Collectibles, Old Wines, Stamps or any other non-traditional asset class.

So This is how Billionaires Invest their money. Tell me that, Do you Invest like Billionaires? Do you invest in your own Business First?…

Have you ever think that, How Billionaire Become Rich? Well, many people think that, Billionaires are billionaires because they have a great business idea. Most of the people in this world believe that, people who have a great business idea will eventually become billionaires. While many people think that, Billionaires are rich because they were in the right industry at right time.

But, well this is not true. Technically speaking, Billionaires are Billionaires because of the Net Worth of their stake (Shares) in their own publically listed companies.

All the Forbes Billionaires in this world are billionaires because they own a large chunk of shares in one or more publically listed Companies. Typically a Billionaire has develop a Business via his company since his early age and than later on taken that Business to the public and now the securities (Shares) of his company are trading on the stock exchange made him a billionaire.

All the Billionaires become billionaires by this way only. So the Best way to become a Billionaire is Promote a Company and take that Company to the public later on. This is how Billionaires become rich. Up to now, This Information was among billionaires only. But now, because of the Internet & This Blog, This Information is floating on the web world wide.

If you want to become a rich than You MUST have to start early. Usually in your twenties. Than and only you can become billionaire. Typically all the self-made billionaires have started early. And that’s why the compound interest worked a lot on their wealth.

According to the studies, The probability of starting your own Business decreases severely after the age of 30. Because after this age, most of the people are trapped in the rat race and on the top of this they have dependants.

So Start Early if you want to become rich like Billionaires….!!!

Bill Gates is world’s richest person in a raw since last almost 15 years. Today (2009) the Net Worth of Bill Gates is around US $ 40 Billion. In 2000, During the time of Technology boom, the Net Worth of Bill Gates was hiked to more than US $ 100 Billion….. Yes, He was the first Centibillionaire.

The Share price of Microsoft Corporation in the year 2001 during the Technology Boom hiked which made him a Centibillionaire. Bill Gates owns 8% (800 Million) Shares of Microsoft Corporation. He is the single largest Individual Shareholder of the Microsoft Corporation on this world.

And his net worth is calculated because of the Net Worth of his shares in Microsoft. Apart from Microsoft, Bill Gates has a huge investment in other companies via his Investment Company, Cascade Investments.

So How Bill Gates Become a Billionaire?

Well, by promoting a Company, developing a Business around that Company (And of course his Passion) and taking that Business to the Public. Bill Gates is a Billionaire not because he is the Giant in the Operating System (OS) Windows. But he has developed a Business and taken that Business to the public and that’s why he is a Billionaire.

All the Billionaires of this world are Billionaires because their own Stake in their own Publically listed companies is worth of Billions. There is only one way to become a billionaire, no matter in which industry you do the Business – And That way is developing a Successful Business and taking it to the public.

By taking your Business public, its securities (Shares, Debentures) will started trading on the stock exchanges and if you keep the fundamentals of the company strong and keep it growing, the share prices will be hiked and make you a Billionaire one day.

How Does a Pension Scheme Work in India?

How a Pension Plan Works?

Pension plans are mainly for 3 basic needs.

01) Capital after Retirement
02) Life Insurance Cover &
03) Tax Benefits

Now, How Pension plans exactly work? Well, Pension Plans work almost same like mutual funds. There are only few minor differences. The Fund Manager of Pension plan builds a Portfolio. Now, the investor invest in the Pension Plan. So What the Pension Plan will do?

Well, first of all it will deduct the premium for Life Insurance Cover. After that it will deduct various administrative charges and expenses to operate the fund. And whatever remains, it invest in the Equity.

There is only single major difference between Pension Plans and Mutual Funds is, administrative charges. In case of Mutual Funds, the Entry load is 0%. Means your 100% money will go towards buying the units and investing in the stock market. While in case of Pension Plans around 10-20% of your total corpus will be spend behind buying the life insurance cover and paying other administrative charges while rest of the money will go towards investing.

In other words, Pension Plans are High entry load mutual funds which in addition provide you the Life Insurance Cover.

Pension Plans or Mutual Funds? -

Many people ask that, weather they should go for Pension plans or Mutual Funds? Well, The answer is, one should go for Mutual funds. Because Pension Plans are nothing but the opaque mutual funds. Rather than one should buy a term life insurance policy separately and mutual funds separately. This will be a cheaper option.

Beyond Boundaries (BB): A Great Business Idea

Let us today discuss about “Beyond Boundaries” and its founder Mr.Jaideep Sinh Parmar.

Beyond Boundaries organized the first cricket match in the Alps. On 15th August 2009, Jungfrau, in the Bernese Alps in Switzerland, was witness to tourist of a different kind. They were here to play the first ever cricket match at 11,333 feet from sea level.

The 6-a-side game between Indian cricket legends led by Kapil Dev and an All stars team captained by former West Indies cricketer Allvin Kallicharran was unique in many ways.

Beyond Boundaries (BB) us a Mumbai based sports tourism firm founded by Mr.Jaideep Sinh Parmar, a former cricketer and grand nephew of Raj Singh Dungarpur, organised this match on all new format, softer balls and artificial at temperature between 0-3 degrees.

Parmar is 34 years old. BB was promoted by Parmar in 2003. BB promotes sports events, manages and organises players’ travel, markets and promote activities for consumer brands.

BB has also organised cricket carnivals in Perth, Barbados and Stratford.

It has taken 1800 people from over 14 nations on customized holidays that allow participants to spend time with cricket icons and play with local teams.

According to Parmar, “We create holidays around sports and sell destinations through sporting events. This builds a strong emotional connect with a region.”

Parmar was born in ruling family of Muli in Saurashtra, Gujarat, India. He was groomed by his father and grand father, who played Ranji Trophy.

BB has generated Rs.15 Crore in Revenue in year 2008. Next on his radar is managing a cricket carnial in Cape Town where BB would bring 30 premium cricket clubs from 14 countries together in March 2010.

BB is also looking to enter into the other sports such as Tennis and Golf.

Top 10 Smart Hiring Tips for Startups

01) Hire for a specific role and not because you are impressed by that person.

02) Write down the role along with the skills and experience the person needs in order to perform well in the role

03) Create a clear and interesting script about your Company, nature of business, potential and how that role fits in

04) Both interview and aspirant are evaluating each other. You need to come across as a worthy employer

05) If you are sure you can assess abilities, ask a known senior ,or ex-boss to sit through the interview

06) Look for abilities like initiative, cost consciousness and risk taking more than subject matter expertise

07) Do not get defensive about your startup status. All big enterprise started out as one

08) Ask for references and do not limit to two. Take five references, talk to all and get a feel

09) Hiring is the most important decision at startup stage. Do not delegate hiring.

10) Startups can’t pay top dollar but they can offer top experience. Sell your strength.

Review: HDFC Top 200 Fund

HDFC Top 200 is the open ended Equity fund launched since 1996. It has a proven past record of good performance of more than 12 years now. It is one of my all time favourite mutual fund. This is the core fund of my Portfolio and this should be the core fund of anyone’s portfolio.

Investment Objective -

To generate long term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index.

This Fund will invest only in BSE 200 Index. Means it will only invest in those 200 stocks which are in the BSE 200 Index. Thus, this is a large cap oriented mutual fund. This fund has under gone different kind of market cycles and still outperformed. Two major market crashes of 2001, Technology Bubble burst and 2008, Housing Bubble burst.

Still this fund has managed to beat the Sensex and given out standing results to its Investors.

Top 5 Holdings of HDFC Top 200 Fund -

01) ICICI Bank
02) SBI
03) ONGC
04) Infosys Technologies &
05) L&T

My Opinion -

I will give this fund 5 star rating. Any portfolio should contain Large cap oriented funds having past record of good performance as a Core fund. Large cap funds provide stability to your portfolio in the down market.

Largecap oriented portfolios suffer less in the down market cycle. HDFC Top 200 is one of the Best Large Cap oriented mutual fund of India. You should invest in this fund.

How Can a Frugal Life Style Can make you Wealthy?

Finance Gurus always advise you to Live Frugal. Now, first of all let me tell you that, what it means by Frugal? Well, Frugal means Living well below your means. It means that spend less than you earn. It means that buy what you need and not what you want.

At first look, the advise of living frugal sounds simple and easy to follow. But in real life, this is the most difficult advise to follow. In real life, it is the most difficult thing to adopt in your life. You will now think that how anyone can spend more than he earns? Well, by Borrowing Money. By Taking Credit Cards and other types of Debts, people started believing in “Buy Today and pay Tomorrow mentality”.

Now, How can a Frugal Life style can make anyone rich? Well, Typical Millionaires & Wealthy people are Frugal. They live well below their means and spend less than they earn. Now, How this will help anyone to get wealthy? What has frugal life style to do anything with your wealthy status?

Well, See. If you live frugal than there are several advantages of it. First of all, you will spend less than you earn so at the end of month, you will have some extra cash (Positive Cashflow) on your hand and you can divert this money towards long term investing. Only a Frugal person has left something behind at the end to save and invest and that’s why in the long run, they become extremely rich.

Second thing is that, a frugal person will only buy those things that he needs and not those things that he wants. This helps to get rich, wealth and financially free in the long run. Because a Frugal Person does not own any high status materials such as Expensive Cars, Watches, Clothes and expensive vacations.

Almost 85-90% of America’s Millionaires live frugal life style. Now, you will think that who are those people who drive expensive cars, wear expensive and branded clothes and watches and live in expensive homes? Well, these are the Upper Middle Class people who live paycheck to paycheck. These are the people who every time buy a new car model on lease whenever they get a pay raise at their job place.

These people look cool and rich. These people live a life like rich and high status people but in reality they are not rich. So Living Frugal is the surest way to become rich and wealthy…!!!

Everything You Wanted to Know about Investing

Kotak Mahindra launches the Book & CD “Everything you Wanted to Know about Investing” in collaboration with CNBC.

Kotak Mahindra Group along with CNBC introduces CD ROM and book on financial investments. It covers various asset classes and includes investing tips keeping in mind individual goals and targets. It also has alternate asset classes topics covered like private equity, real estate and structured products. It would act as one stop reference source for informed and lay investors.

The Kotak Mahindra Group along with CNBC announced the launch of the investment bible "Everything you wanted to know about Investing". Available as an interactive CD ROM (Rs 499) and in a book form (Rs 299), the tome is billed as the encyclopedia of investment and wealth creating intelligence. Among the first of its kind in its comprehensive coverage of the topic, it hopes to give the Indian investor a much-valued insight into various investment options and the process of investing on the basis of individual goals and targets

It covers various asset classes such as equities, debt, art, gold, insurance; alternates such as private equity, real estate and even structured products. It also seeks to educate the customer about managing home loans and credit cards. With calculators that help in developing a model portfolio and risk profile calculators among others, the product becomes the one stop source of reference and action for the informed and the lay investor.

My Opinion -

In my Opinion, you should buy such kind of products. Buying such kind of Informative Books & CDs is not the spending but it’s the Investment. Investment in your own Financial Knowledge which will pay you highest Dividends in the long run.

I am an avid book reader. And I Invest in Books a Lot. Books are my Assets because the Information given in these Books are valuable and can change your life…!!!

Fixed Return Savings Schemes India

Government of India is providing Fixed Return Savings Scheme via its wide network of post offices across the country. These schemes are popularly known as Post office Savings Schemes. These schemes give you safety of Principal as well as Fixed Return.

Complete List of Fixed Saving Schemes in India -

01) National Savings Certificate Scheme (NSC)

02) National Savings Scheme (NSS)

03) Post office Time Deposit Scheme

04) Post office Recurring Deposit Account (RDA)

05) Post office Monthly Income Scheme (MIS)

06) Post office Senior Citizen Scheme

07) Kisan Vikas Patra (KVP)

08) Public Provident Fund (PPF)

All of the above schemes will provide you a Guaranteed fixed return as well as tax benefits. You can start saving in any of the above scheme from the wide network of post offices all over the India. Simply click on any of the above schemes and know everything in detail about that scheme.

Each scheme is designed for different kind of needs. If regular monthly income is your goal than Post office Monthly Income scheme (MIS) is for you and if Capital Gain is your goal than Kisan Vikas Patra (KVP) is for you.

So start saving in any one or more of the above Saving Schemes.

I have already written in many of my previous articles that, A Stock is not just a piece of paper or a ticker symbol only. But a stock reflects the ownership interest in the Business. If you own a stock than it means that you are the owner of that much piece of the business.

Here is a List of Top 10 Best Indian Stocks. Owning a piece of ownership in any of the following Indian Businesses is worth it. In fact, following Stocks are the Top Mutual Fund Picks. The Fundamentals of each of the following businesses are very sound and the underlying Business Model is also very sound.

01) Reliance Industries

02) ONGC

03) Bharti Airtel

04) SBI

05) ICICI Bank

06) Infosys Tech

07) L&T

08) BHEL

09) TCS

10) HDFC Bank

Many people speculate in these stocks. But according to me, speculating in the above stocks is not worth it. You should take a long position in any one or more of the above stocks. Because the above are the BEST INDIAN STOCKS.

Many of the above companies are Fortune 500 Companies. If you own at least a small pie of any one or more of the above Businesses, you will definitely become a rich over the time. Over the next few decades, all of the above Businesses will grow like anything.

So Invest Now…. This is the Best time of Investing in such a great Indian Companies. Don’t Miss this chance…!!!

Herbalife Business Opportunity

Recently a reader has asked me the following question about HerbaLife -

“Few months ago I have started a marketing business (herbalife) but losing interest day by day because I need to run behind prospects to join my business and I need to spend lot of amount for advertising, business seminars and leadership seminars.
What’s your suggestion about ‘herbalife business?”
Reader

Well, Herbalife is working on the principle of “Network Marketing”. Now, many of you may not know that What is Network Marketing? So let me tell you in Simple, Layman’s Language that What is Network Marketing?

Network marketing is a general term for a type of marketing that is usually performed by an individual instead of a company. It refers to the use of interpersonal or social networks to market products and services for business purposes as opposed to the more traditional and common practices of wide-range advertising.

See the above diagram. The Network Marketing is also known as MLM or Multilevel Marketing. Here the Individual (You) promotes the products and sell these products to another people and get commissions from the parent Company (In our Example Herbalife). Now, the advantage of the Network marketing is that, if the people whom you have sold your products, sell these products to another people than not only them but you will also get commission on it.

This can be done up to 7 Levels Legally according to my knowledge.

Now, in your case, you said that you have started Herbalife Business. But well, this is not the Business. In the Business you own something (Assets) at the end. Say for Example, this Blog. I say that, this Blog is my Internet Business and I write for this Blog so at the end, I will have a collection of information rich articles. But suppose if i was writing for someone else (On EzineArticles or WikiHow) than it’s not my Business.

What the Network Marketing Companies will tell you that, they are giving you the Business Opportunities. But well, this is not the Business. It’s a kind of marketing only. Suppose if you own a product Rights and give that product to the Network Marketing Company to sell as MLM than you can said to be a Business Owner because you own an Asset (The Product).

So in my opinion, if you are not comfortable with the Herbalife, simply leave it. Instead of that, focus your time, efforts and money on developing assets (Such as Internet Business) on which you have a Full Control.

In case of Network Marketing you don’t have any control over the product that you Sell. While a Business is something that runs even without your presence (The Presence of the Business Owner) also. If you leave your Business alone for 1 year and come after 1 year than it will still working and making money for you. This is the Business.

Suppose if I stop Blogging today and higher a writer for this Blog and come after a year than also this Business will be working and making even more money than today. Because it’s a Business in true sense.

But Network Marketing Won’t work without your presence. If you work hard for few months than it may generate income for you but once you leave it, your income will be deteriorated slowly. While in Case of Business this will never happen…..

So start focusing on Building your own Empire…!!!

Which is the Fastest Way to Retire Early?

Well, there are several ways to retire early. But there are only 3 fastest ways to retire early and out of which you have to be extremely lucky for first 2 ways. The only possible way by which anyone can retire early this much is the third way. Here are these ways.

01) Inheritance
02) Lotto &
03) Internet Business

Yes, Inheritance and Lottery Winning are the ways by which you can retire in the fastest way. But for that, you have to be extremely lucky. While Internet Business is the one and only way, by which you can retire early fast and your probability of retiring early by this way is extremely high.

I have studied and analyzed several ways to retire early since years. But Internet Business is the one and only way up to now, by which you can retire early this much fast. This is the Information age and almost all the world is connected with the Internet.

And that’s why Several Business and Investment Opportunities arises in the Internet. I know few people who have developed a Successful Internet Business and later on sold it for millions. They are in their early thirties and they don’t need to work. Because they have made enough money on which they can live rest of their lives without working hard for the money.

But, I have seen that, most of the time people don’t realize huge amount of money until they sell their Fortune (Internet Business). Very few Internet Business owners in this world make 6 figure Income from their Internet Businesses. The Huge amount of money is hidden in the Valuation of your Internet Business. But unless you sell your Internet Business, you can’t realize this much profit and yeah…. If you sell your Internet Business than you will loose ownership control over that Asset also.

I have studied the valuation of several asset classes and according to my knowledge and experience, the valuation of Internet Assets (Blogs, Websites, Forums…etc..) goes very high in comparison to the traditional offline Assets (Stocks, Bonds, Gold & Real Estate).

And that’s why the fastest way to retire early is – The Internet Business…!!!

Those who don’t know anything about “Ultima Online”, let me tell you that Ultima Online is a Game. It’s a 3D Game.

Now, You won’t believe that, but this is true. Many people are making REAL Money by playing Ultima Online Game. Isn’t it cool? You are getting paid for playing games?

So How, people make REAL Money buy playing Ultima Online?

Well, one of the way to make Real money with Ultima Online is, You Sell Ultima Online Gold to other player for Real money on e-Bay. the price for 1 Million Ultima Online Gold on eBay is $3-4.

See the recent NEWS,

“The world of Ultima Online just got a little poorer. Electronic Arts has announced the permanent removal of roughly 15 trillion gold from the game's economy and the termination of more than 180 user accounts in connection with the funds, which it referred to as "dirty money."

A quick survey of eBay found Ultima Online gold sellers typically asking for between $3 and $4 per million gold pieces, with the few auctions that actually had bids on them running closer to $1 per million gold pieces. Even at the low end of that range, the real-world value of the deleted gold would be about $15 million, and possibly closer to the $60 million some online sellers would ask for it.”

Yes, This is true. The real value of that 15 Trillion Digital Ultima Online Gold is REAL US $ 15 Million…!!!

So Now you know that, You can make Real Money with Ultima Online. Here are the few ways to earn money in the game Ultima Online -

I receive following types of queries several times a week.

- How to Earn 1 Crore?
- How to Earn 10 Lakhs in one month?
- How to Earn 2 Lakhs in 3 months?
- How to Earn 25 Lakhs in 12 months?
- How to Earn 42 Lakhs per month?
- How to Earn 5 Lakhs in 6 months?
- How to Earn 8 Lakhs in 6 months?
- How to Earn by 10 rupees Investment?
- How to Earn one Crore in One Day?
- Easy Ways to Earn in Lakhs?
- And many more……!!!!!

Unfortunately, Several people are surfing the web for above queries and sometimes they accidently visit to my Blog and they ask such types of questions. And Believe me, the internet is full of eBooks, Programs and courses which offers such types of things.

The Internet is an ocean. You will find lots of garbage in the internet. And believe me, Selling an eBook or a short course of any one of the above topics is a profitable Business. Yes, You may or may not make money by these Internet courses, but the seller of such types of eBooks & Courses will definitely make lakhs and crores of rupees by selling such types of courses to several people like you.

Now, let us discuss honestly that, weather such types of money making opportunities possible in anyone’s life?

Well, Honestly speaking yes. Such types of Money Making Opportunities are possible in the real life as well as in the Virtual World (Internet). It is possible to make 1 Crore, 10 Lakhs in one month, 25 lakhs in 12 months, 42 lakhs per month, 5 lakhs in 6 months, 8 lakhs in 6 months or even one crore in one day.

It is Possible by any one of the 3 ways -

01) Inheritance
02) Lotto (Lottery Winning)
03) Business (& Investments)

Now, the first 2 things are extremely rare and you have to be very lucky to make money by the first 2 ways. But the third way is the way that anyone can apply in his/her own life and make unbelievably high amount of money.

And that Way is Business. If you start your own Business (Real Life or Internet Business) than it is possible to make this much amount of money in your life. In fact, the Big Business Owners are right now making this much amount of money.

But to grow a Business, You will have to work Hard. There are not any shortcuts.

You have to grow the Asset size of your Business to such a level that, it generates Cashflow in Lakhs and Crores.

I think this is the one and only way to make this much amount of money….!!!!

Dropping Out of College to Start your own Business

Recently a reader of this blog has asked me a question that, “I want to Drop out from my College to Start my own Business. What is your advise? Should I drop out and start my own Business?”

Well, many youngsters and college going students around this world have the same query. In fact, Bill Gates (Microsoft), Larry Page (Google), Mark Zuckerberg (Facebook), Dhirubhai Ambani (Reliance), Subhash Chandra (Zee) and Michael Dell (Dell) are just the few examples of the drop out Billionaires.

This is the natural Entrepreneurial feeling. At some point or other, Entrepreneurs feel that, Education system is no longer effective to ensure any kind of Financial Success. In fact, if so many successful people (Billionaires) are dropped out from the college than there MUST be something faulty in the current education system.

In reality, our current century old Education system was designed by the Rich people of the 19th century. 19th Century was the starting of the Industrial Age. And the rich people of the Industrial age had designed our education system in such a way that, it can only produce Employees and Self-Employees only. It will never motivate you to be Business Owners or Investors.

And that’s why people having Entrepreneurial personality will find Education system ineffective at some point in their lives.

So in My Opinion, It is absolutely Fine of you want to Drop out from your College and want to start your own Business. There is nothing wrong in it.

But wait, if we talk about USA and other western countries than if you drop out from the college, it will be acceptable in their culture. But the Indian Scenario is different. In India, if you say your idea of dropping out from your college to your parents than I don’t think that they will support you. Because Indian culture is totally different.

So I think, you should drop out from your college to start your own Business. But before that, you should try to convince your parents. According to me, convincing parents is the hardest part in such kind of matters.

So Go Ahead…. In my opinion, there is nothing wrong from dropping out from your college. After all, you are going to develop your own Empire….!!!!

Domain Flipping: A Business Opportunity

This is the Information age and because of the birth of the internet after 1990, One New Asset class came into exists and that Asset Class is a Domain Name. Yes, Domain Names are the news Asset Class just like Stocks, Bonds, Gold, Real Estate & Businesses.

Domain Names are the Intellectual Properties in its purest forms. Owning a Domain Name is exactly same like owning a piece of Real Estate. Domain Names are the Real Estates of the Internet. The only difference is that, they don’t have any physical existence. They are in the Digital Form only.

They stay in the Servers and they are virtual. But it doesn’t mean that, they are less valuable than any other Asset class in this world. Some generic name Domain Names are worth of Millions of dollars…. Yes,,, This is true. I am not Kidding.

The famous Domain Name Loan.com was sold for whooping US $ 3 Million in 2002.

Domain Flipping is a new Business Opportunity in the Information age. It’s a great business opportunity. Previously people used to flip real estate and stocks only but in the information age, Domain Flipping emerged as a great new Business Opportunity.

Many Domain Flippers around this world Flip Domains and make literally 6 Figure Income in dollars every year from Domain Flipping.

Buying, Selling or trading Domain Names is a great new business opportunity. Here are the Internet’s great market places for Domain Flipping.

01) eBay
02) Sedo
03) Sitepoint
04) Flippa

Here are the two great websites for Domain Appraisal services.

01) Sedo
02) Moniker

People Buy Domain Names from many hosts. There are several hosts in the world but following is world’s Best Domain Name provider.

01) GoDaddy

Yes, GoDaddy.com. Maintaining your Domain Portfolio with GoDaddy is very easy and their Customer Support is excellent. You should also be familiar with the following Payment methods.

01) PayPal
02) Escrow

For larger amount of transactions, it is advisable that you go for Escrow Services. Escrow is a third party which will take money from the buyer, give it to the seller and than transfer the Domain Name in name of the buyer. And charges some amount of Fee.

Thus, use the Information in this Article and tap this new Business Opportunity. The Best part about Domain Flipping Business is that, a high school going kid or a college student can also do this…!!!

Dhirubhai Ambani: Supply Creating Demand Theory

He was not an MBA. Nor an economist. But yet he took traditional market theory and stood it on its head. And succeeded.

Yes, at a time when everyone in India would build capacities only after a careful study of market expectations, he went full steam ahead and created giants of manufacturing plants with unbelievable capacites. (Initial cap of Reliance Patalganga was 10,000 tonnes of PFY way back in 1980, while the market in India for it was approx. 6000 tonnes).

No doubt his instinct was backed by years and years of reading, studying market trends, careful listening and his own honed capacity to forecast, but yet despite all this preparation, it required undeniable guts to pioneer such a revolutionary move.

The consequence was that the market blossomed to absorb supply, the consumer benefited with prices crashing down, the players increased and our economic landscape changed for the better. The Patalganga plant was in no time humming at maximum capacity and as a result of the plant’s economies of scale, Dhirubhai’s conversion cost of the yarn in 1994 came down to 18 cents per pound, as compared to Western Europe’s 34 cents, North America’s 29 cents and the Far East’s 23 cents and Reliance was exporting the yarn back to the US!

A more recent example was that of Mukesh Ambani taking this vision forward with Reliance Infocomm (which is now handled by Anil Ambani). In India’s mobile telephony timeline there will always be a very clear ‘before Infocomm and after Infocomm’ segmentation. The numbers say it all.

In Jan 2003, the mobile subscriber base was 13 million, about 16 months later, shortly after the launch, it had reached 30 million. In March 2006, it has touched 90 million ! Yes, this was yet another unusual skill of Dhirubhai’s — his uncanny knack of knowing exactly how the market is going to behave.

Do Rich People Take a Loan to Buy a Car?

Many people think that Rich drive expensive cars. They drive in luxurious cars. But well, this is not true. In reality, these are the Upper Middle class people who fuel their lifestyles with Debt. Whenever, they get a pay raise, they go for Car Leasing / Car Finance Option and buy a new car to look cool and rich.

In reality, these are not the true rich and wealthy people. These are just the High Income / Low Wealth Accumulator people. These are the people who just want to look cool and rich. And that’s why whenever their income rises, they simply go for Car Finance option and buy new car.

True Rich people are those who never take a loan/lease/borrow to buy a New Car.

So Does it mean that, True Rich people don’t drive expensive cars? Well, Nope. This is also not true. They also love to drive expensive cars but they never borrow money. So How they buy a car without borrowing money? Well, they first accumulate wealth. First of all they accumulate assets out of their money. They focus on growing the Asset Column of their Financial Statement first. And when the Asset column of their financial statement grows sufficiently and start throwing Passive Income, they buy a Car from that Money. But Rich never take a loan to Buy a Car.

Some very smart Rich People do another thing. They take a loan to buy a car. They go for Car leasing option but what they do? They do such an arrangement that, their Passive Income from Assets pays those Car Loan EMIs.

Say for Example, one of my friend has recently bought a car. What he did? Well, he just bought a Rental Commercial Property in good locality and out it on the rent. This property generates Rs.1 Lakh of monthly Rental Income for him which is purely a Passive Income. To generate this Income, he does not have to work hard. So he taken a Car loan and now his Passive Income from Rental Property pays his EMIs.

Now, what the Upper Middle Class people do? Well, They pay those Car Loan Payments from their monthly Paychecks. So they have to work hard so that they don’t loose their job. These are the people who pay Car Loan EMIs from their hard earned money. This is the basic difference between Rich and upper middle class.

Difference Between Equity Shares & Debt -

What is the Basic difference between Equity & Debt? This is the question of basics of Financial Literacy. Many people invest (I am sorry, In reality they are Speculate) in the stock market and buy the shares but they don’t know that, What is Equity and What is Debt?

This article will teach you in Layman’s language that, what it means by equity and debt and what is the difference between them?

Well, Equity means Shares or the piece of the ownership of a Company. Say for Example, for a while imagine that, you own a business. Now you divide this business into several pieces of equal size and retain 51% pieces (Shares) with you and sell rest of the pieces to the others. These pieces are known as Equity or Shares or Common Stocks. They represent the ownership interest in the company.

Suppose if you own 100 Shares of Google than it means that, you are the owner of that much part of the Business. This is Equity. It is the ownership of the underlying Business/Company.

Now, Debt means when a Company/Business borrows money from the Bank, Financial Institutes or public, it issues a certificate to the lender (Bank, Public or Financial Institution). This certificate is a Debt Paper. And Investors invest in Debt Papers. Sometimes Investors invest in company (By Buying stocks of the Company) while sometimes investors lend money to the Company (By buying its Debt Paper).

So whenever you buy Equity of some Business, it means that you invest your money in that Business and whenever you buy a Debt Paper of any Business it means that you are lending your money to that Business. In other words, that Business is borrowing money from you to expand and will pay you interest on your money.

Now, Whenever government goes into Debt and borrow money from the Investors and people, this Debt Paper is known as Bond. Say for Example, US Treasury Bonds, GOI (Government of India) Bonds…etc…