Is your financial life heading for a disaster?

There are some broad signs or indicators which will tell you that your financial life is in trouble, and need immediate attention.

The condition of an individual's financial life is not apparent only based on the income he earns. Sometimes, even after earning well, your financial life may not be in the best of colour. Many people are also comfortable living in the assumption that all is well. However, there are some broad signs or indicators which will tell you that your financial life is in trouble. Remember that the more valid these signs are, the more are the chances that you are heading towards financial disaster, and the more critical it is for you to take proactive steps to rectify the problem. Let's look at some indicators which tell you that your financial life is in trouble:

You cannot survive without an income for 3 months: Income is different from wealth. It is seen many a time that people earn pretty well, but if they lose their job suddenly, they are grappling for even the basic expenses. This is because they have not saved up enough to meet contingencies. If you have been working or in a business for a few years, then you should have a good back up in place which will help you survive for atleast for 3 months. When your expenses are very high and you do not have much left even when you are earning, you are stepping in to financial disaster. This is the first indicator to show that your financial position is shaky.

You pay high EMIs on depreciating assets: Having too many liabilities on your books is not good. It is worse if you have debt which does not result in an appreciation of your assets. For instance, having high amount of personal loans, credit card debt or even car loans which result in high EMI outflow from your monthly salary is a very unhealthy practice. As a thumb rule, your total EMI outflow should not exceed 40% of your monthly take home pay. If you have a home loan, the EMI towards this will constitute a sizeable portion. It is therefore better to avoid other kind of debt which does not increase your asset value. When you realise you are paying high EMIs on depreciating assets, this is another indicator of financial trouble.

It is not easy to get a better paying job with the skills you possess: Professionally, you must grow and advance in your career, such that it translates to better income and higher savings. However, if you find that you are not able to move upwards in your career despite repeated attempts, it means that you are going to be stuck with the same salary every year, or be happy with a small hike. This is turn means that your investments will be limited, resulting in limited wealth building opportunities. Take a proactive step in honing your skills and building your career for a better financial life as well.

Spending on social functions: Majority of people in India believe in spending unnecessarily on social functions, either as a status symbol or keeping in line with traditions. Although this may be an important part of your life, spending too much on social functions is a mere waste of money and does not yield anything. If you realise that you have been spending too much on such functions, you can be sure that you are headed for financial trouble. A good way of finding this out is to list out all the expenses you incurred in the past 3-5 years on various social functions and see how much of your income has not been put to good use.

Working for long, but no 'asset': If you have been working for atleast 3 to 5 years, but still have no asset, then it means your financial life is in trouble. You should have some investment in fixed deposits or gold or mutual funds or have a small part of down payment saved for your future house. If you do not have any of this, it means you have been very careless in your financial life and must immediately put your finances in order.

The initial signs of a troubled financial life will not take long to manifest into a bigger problem which can be very difficult to handle. It is important to start at the earliest and rectify your past mistakes.

Source : By BankBazaar

Desi Bachelorette: More and more Indian brides-to-be are opting for wild weekends in Turkey

Turks love Indians and are aware of the value of the desi tourist buck. Girls are spoilt silly in the superbly appointed hotels dotting Istanbul

Shobhaa De

Okay, get this parents and in-laws — bahus are doing it, too! And it's not what you are thinking! Bahus on the prowl at various party destinations across the world are easy to spot...after all, how can anybody possibly miss a shattered dulhan-to-be whooping it up at a bar in Istanbul, clad in designer resort wear with a tiara sitting crookedly on her messy hair and a satin sash screaming BRIDE falling off her bare shoulders? Yes, Sir! It is indeed a desi bachelorette in full swing. And chances are the destination is Turkey. Yup. Taksim Square or no Taksim Square. Bachelor girls are flocking there. "Have gal pals, will party" is the new mantra. That's the spirit.

More and more Indian brides are opting for wild weekends in exotic destinations just before saying, 'I do'. It was once the prerogative of bachelors to go off and binge with guy friends, all of them bound together by the oldest guy-oath in the world ("Our lips are sealed!"). What happened in Las Vegas/ Phuket/ Bodrum/Mykanos/ Bangkok was supposed to stay there — and generally did! Today, it's the turn of the chicks. If the guys get their personal belly dancer to teach them a few moves, the gals can as easily hire male strippers or local escorts to entertain them (at this point, my lips are sealed!). The idea is to let go — from Sati Savitree to Sizzling Sheila — before settling for staid, safe, structured domesticity. What the ladies have been up to on these wicked weekends is enough to make naani take several dips in the Ganga. Or, in this case, the Bosphorus!

The Night is Still Young... 

Rumour has it the night never ends in Istanbul. I can vouch for it. Talking Turkey (the country, not bird) is something our adventurous Young Things have been doing for a while. Desis love the vibe in Turkey for several, entirely valid reasons. I'd say it's primarily because of the friendly and polite Turkish people. Turks love Indians. And are aware of the value of the desi tourist buck. Girls, who just wanna have fun, are spoilt silly in the superbly appointed hotelsdotting Istanbul. Take your pick from one of the oldest luxury properties in Europe (The Conrad Hilton) with its stunning rooftop bar, to the recently launched Shangri-La on the edge of the sparkling Bosphorus Strait (Four Seasons is close by). Or, if you want to live like a sultan's favourite concubine, check into the magnificent, all-marble Kiragan Palace (Kempinski group). The posh Inter-Continental, Grand Hyatt and Diwan aren't too far off either. Start with a really long evening that begins with a champagne toast in your hotel suite.

Then, take your cues from locals, especially the swish set you'll spot smoothly sliding out of their Ferraris and Lamborghinis. Remember, everything starts late in Istanbul. To get the gal pals in the right mood, I recommend the flamboyant Flamingo as the first stop. It's a comparatively new, but totally hot destination where you can expect wall-to-wall glamour, retro music, innovative cocktails and the coolest people in town. Kick off the evening with Bubbles, the signature drink (fresh s t r awberry juice, champagne, Campari, mint, exotic fruits and crushed ice). It beats a Bellini hollow. Enjoy a pricy - but -yummy carpaccio of duck ravioli. By then, the sprawling place, with a classy colonial vibe, will be buzzing and jumping. It will soon be time to discover other Turkish delights (equally sinful!).

Kapadokya is the other cool spot Istanbul's trendsetters swear by, insisting that the more well-known Reina is for tourists. All I can say is that Reina rules! Here's how to 'do' Reina, if you want to be noticed. Gal pals should willingly and happily shell out serious money to hire a swanky yacht for the bride-to-be. The only way to arrive at Reina is in your own boat... like the richierich party set of Istanbul. If you want to bar hop stylishly along the Bosphorus and for God's sake hire a speed boat. Most restaurants and bars have their own jetties. Reina also has alert security staff to help swaying party goers get into the throbbing, multi-level night club that sees international celebs on its crowded decks. The atmosphere is electric and sexy... be prepared to dance under the stars till 7 am. That's when the boats come to take tired revellers back to their comfy beds.

From Spas to Retail Therapy 

A lavish brunch beckons. Combine that with a tan-plan and head to Suado, armed with your skimpiest bikini and sun hat. Suado is a charming pool club in the middle of the Bosphorus ( yup, the same venue booked out by the high-flying Mittals recently). Grab a deck chair, order a tall drink, ogle the hunks and you are set for an afternoon of serious recovery after the giddy hedonism of the previous night. If you have the energy, the upscale Bebek area is a must, especially cocktail halts at Biber and Luca, two amazing bars which attract a chilled out global crowd. I recommend a day trip to Sabamci Museum which has a super restaurant (you absolutely must sample the delicately flavoured Isabella Grape Sorbet at Changa). On the last day girls who want to catch their breath and pamper themselves some more can opt for an authentic Turkish hamam experience (all top hotels offer the real thing at their fabulous spas).

Or if it is retail therapy that does it for you, head to the Grand Bazaar (one of the world's most fascinating historic markets selling everything from furs, diamonds, handbags to rare ittars and carpets). I preferred shopping for artistic Byzantine icons and glassware at Pasabache, a treasure house of Turkish artefacts. It's tempting for the bride to want to grab exquisite home accessories here for her new residence. The rest of the crew can take a final relaxed break at George — one of the chicest addresses close to the centre of the city in Istikal. An address so discreet, you need a local to get you in since there is no visible signage! Once there, you can loll around on gaddis with fat bolsters to prop you up. A sheesha goes wonderfully well with the many cocktails on offer here. I call it the best champagne stop in Istanbul. And as we all know, there is no such thing as too much champagne. Especially during a bachelorette!

(The writer is a columnist and author)

Source : ET

Five enterprises aiding the education sector

Catering to an ever-growing demand for application based simplified methods of teaching, a slew of entrepreneurs are betting big on the sector.

What better sector to show one's entrepreneurial prowess than education? Catering to an ever-growing demand for application based simplified methods of teaching and facilitating both government and private education initiatives, a slew of entrepreneurs are betting big on the sector. 

For some, the large volume of business and the prestige of being recognised as a technology supplier to government-run institutions is proving to be attractive for a number of young companies. 

ThinkLABS: 

Founded by: Gagan Goyal & Gaurav Chaturvedi 

As a student of mechanical engineering at IIT Bombay (2000-4), Gagan Goyal's extra-curricular activities, particularly in robotics, overshadowed the lack of academic excellence. 

After quiting his job, Goyal put together Rs 1.5 lakh from his savings, and asked some juniors from IIT-B to help design a robotics kit. The content was centred on teaching the basics of mechanical engineering to junior college students. By February 2006, they were ready with the finished product and organised a small programme at the College of Engineering, Pune. Buoyed by the success, Goyal incorporated the company as ThinkLABSTechnosolutions in October. 

Soon Gaurav Chaturvedi, his batchmate at IIT-B, came on board as a co-founder. Today, they have 200 schools and 28 colleges in India as clients, but this is a high traction space. In the next three years, they are hoping to hit the Rs 50 crore mark. 

iNurture Education Solutions 

Founder: Ashwin Ajila 

The company works with industry experts to create custom undergraduate and postgraduate courses in areas such as creative management, mobile application technology and animation. iNurture conducts these courses in partnership with government and private universities, who provide the actual degree. 

iNurture has partnered with around 15 universities and colleges, including state institutions such as Gujarat University, Jaipur National University and Jawaharlal Nehru Architecture and Fine Arts University. 

Report Bee 

Founders: Anantharaman Mani, Anjan T, Balaganesh S & Vinod Kumar 

Report Bee has revamped the report card into an interactive digital application. Teachers can track the progress of a single student, see a class' overall performance and compare classes on a single sheet. 

Report Bee is piloting in 64 government schools in Tamil Nadu. It is also piloting in fiveChennai Corporation schools. The startup has undertaken three data analysis projects forTamil Nadu Government Education Department. 

InOpen Technologies 

Founders: Rupesh Shah & Sridhar Iyer 

InOpen Technologies offers Computer Masti, a learning programme that uses animation, games and other interactive multimedia tools to impart computer science education at the school level. 

InOpen works with the Assam Government through a partnership with Assam Electronics Development Corporation to provide computer education to around four lakh students. 

Kriyative Education 

Founders: J Jeyappriadhevi & Jayavijayan 

Kriyative Education has created NCERT-based content and teacher training that follows the neuro-cognitive methodology, which helps kids learn naturally with everyday examples. 

It is working with Cognizant Technology Solutions' Project Outreach and provides content, material and training to volunteers to deliver education to over 110 government schools across India.

Source : By ECONOMICTIMES.COM 

Success stories of six inspirational women entrepreneurs

Across sectors as varied as technology, clinical research and retail women are poised to burst a common myth that women-led businesses do not grow beyond a certain scale.

Innovative ideas are the mantra behind every successful start-up story. India has been a flourishing ground for enterprises, and this phenomenon has witnessed an unprecedented surge in the last few years. 

A handful of women entrepreneurs are stepping up to show they have the appetite, skills and vision to take a shot at scaling their young ventures. Across sectors as varied as technology, clinical research and retail women are poised to burst a common myth that women-led businesses do not grow beyond a certain scale.

Kanika Dewan: The diva who designed floors of IGI's Terminal 3

Dewan's family-owned business, Bramco, headquartered in Bahrain, carried out the floor work for the airport. More than 130,000 sq m of tiles were laid before the deadline of 11 months was over. After the project for the Delhi International Airport, Bramco is now working on a similar project with the Mumbai International Airport. The company has also done the flooring for a Leela Hotels project in Delhi.

For somebody who has contributed to designing mansions of several billionaires, apart from the work at the airports, Dewan does not boast of a design education. After majoring infinance at the Wharton business school, instead of continuing with investment banking, in which she had dabbled for a while, Dewan decided to become an interior designer.

Bramco is now proving to be the base of Dewan's new business. After her Wharton days, she decided to start a vertically integrated design firm that would capitalise on the exclusive availability of exotic marbles and granite from Bramco's mines.

Nidhi Saxena, Karmic Lifesciences

Karmic Lifesciences, which was founded in 2008 is a contract research organisation. It specialises in Oncology Cardiovascular, Neurology and Diabetes. Karmic conducts clinical trials and provides clinical data management to pharma companies, like NovartisBSE -0.33 %International, BayerBSE 1.26 % AG and CiplaBSE 1.14 %.

Nidhi Saxena targeted a revenue of Rs 54 crore. Saxena was previously the vice president for the North American operations of business process outsourcing company, WNS.

She raised the funding for her venture from Indian Angel Network, Basil Growth Corporation, SIDBI and Mumbai Angels.

Vijaya Pastala, Under the Mango Tree

Vijaya Pastala's enterprise has a Rs 60 lakh turnover from selling honey! The enterprise which took 14 years to shape up has a simple business model.

The sourced honey is tested, certified, packaged and labelled in a production plant on rented premises in an industrial area, in Mumbai. The packaged products are sold online, delivered to over 100 shops in Mumbai and Bangalore, as well as to a lot of B2B partners like Taj Hotels.

After acquiring a post graduate degree in regional planning from the MIT, US, in 1993, Pastala returned to India and stumbled upon the name for her future venture.

When her son was born in 2003, she changed career tracks. It took Pastala about a year to zero in on exactly what she wanted to do.

Sneha Roy & Sananda Misra - Toptomato.in

Toptomato.in by Sneha Roy & Sananda Misra is an online platform for ordering all household items. Its not a new concept but the founders aim to make it unique with its grocery subscription. One can subscribe for regular needs like milk, butter, etc and can specify required frequency.

TopTomato was launched in the month of September, 2012 by Sneha Roy and Sananda Misra, graduates from Indian Institute of Technology, Kharagpur, with varied experience of working in the FMCG sectors. The venture is self-funded and the seed capital was about Rs 5 lakhs.

The initial capital was used for building the website and setting up the back-end and delivery networks.

Mitali Kalra, Zao Foods

The idea of starting her own cafe took root in 2010. After completing her MBA in finance from INSEAD in France, in 2008, she spent a year working in Dubai and Singapore, handling private equity investments in oil and gas, and shipping. About a year on, her craving for healthy fare spawned a business idea: a chain of health food cafes in India. So, in December 2011, she left her cushy investment banking job, pumped in Rs 14 lakh from her personal savings, and registered her company name as Zao Foods Private Limited.

Samosas, kachoris, choley-bhaturey/ kulchey... No matter how much we relish our traditional unhealthy savouries, there is the nagging need to eat nutritious food. To cater to this growing awareness of eating healthy is Mitali Kalra's year-old Mediterranean cafe, Crostini, tucked away in a corner of the HauzKhas Village in south Delhi.

A year into operations, her turnover is Rs 25-30 lakh. Till date, she has invested Rs 30 lakh, but expects to earn Rs 35-40 lakh by end of 2013.

Uniza Tasneem, Daria System

Born and brought up in Chickmanglore, Uniza Tasneem completed management studies from Acharya Institute of Management and Sciences, Bangalore. She was selected by Kesdee Inc (an US based Company which was in to e-Learning) as a marketing executive. "Working there for an year and a half gave me an brief idea of software. The word software / Application, ERP started fascinating me."

Uniza Tasneem is the founder and director of Koramangala-headquartered Daria System, a hospital management solution enterprise.

In 2012, Tasneem started Daria System with an initial investment of Rs 5 lakh. "Our domain expertise lies in managing financials of healthcare sector mainly superspeciality & multispeciality, large & medium hospitals, nursing homes, diagnostic centers, laboratories, multispecialty clinics and pharmacies by providing customized software solutions."

Source : By ECONOMICTIMES.COM 

Ten famous market sayings & their relevance for India

There's no shortage of folklore in the stock markets but not all of it applies to India. Here's the truth behind some widely used sayings.

As in other spheres of life, there is no shortage of folk tales in investing. The history of the Indian stock market may be shorter compared to the developed markets globally, but that has not stopped investment gurus from trying to force-fit some of these sayings in the Indian context.

While some of these rules like 'Sell in May and go away' are based on the seasonality of stock markets, others may be more about following a particular investment strategy. Here's why it is wiser to base your investment decisions on data instead of being guided by these misplaced notions.

1) Sell in May and Go Away

What does this mean?

This favourite saying dates back to the period when London stock brokers went on long holidays during the summer months. The full saying is, " Sell in May and go away, stay away till St Leger day", referring to the last race in the British horse racing season which is around mid-September. With most brokers out of the trading ring, the trading volume was low and returns were muted.

Therefore, it was thought wise to sell off your stock holdings before you proceeded for a holiday and start with a clean slate on your return in October.

Does it hold for Indian markets?

If you look at the average daily returns of every month in the past 21 years, May generated muted returns during 1992-2002 as well as 2003-2013. However, the returns in May were negative only in 12 of the past 21 years. This midway figure doesn't suggest that this saying holds true for the Indian markets. Even in those 12 years, only in two years the negative returns in May correlates with a negative return in June.

So, the sell in May theory is quite insignificant in the Indian context. However, the market is rallying right now and we won't be surprised if this year's peak happens in May.

2) Mark Twain Effect

What does this mean?

October has historically been a notorious month for stock investments. Global stock markets have generated lower than average returns during this month and some of the major stock market crashes (like 1929, 1987 and 2008) occurred in October.

The October downturn has been termed the Mark Twain effect after the novelist's famous quote, "October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February".

Does it hold for Indian markets?

The average monthly returns of the past 20 years suggest that the Mark Twain effectholds good for the Indian markets as well. The average monthly returns during October have been negative during both 10-year periods. The average October months returns came out to -0.124% compared to the grand average of 0.058%. However, its impact has reduced in recent times. For example, the average 0.033% fall in October has been less than the average 0.94% dip during January since 2003.

3) January Effect

What does this mean?

This phenomenon comes from a study of the US stock market which shows a general uptrend in stock prices during the month of January. Incidentally, the US financial year is from January to December. There is selling pressure in December because investors want to book profits or losses for setting off against other capital gains at the end of the financial year. But the sellers turn into buyers when the new financial year kicks off.

Does it hold for Indian markets?

The Indian financial year is from April to March, so there is no rush to sell in December. However another version of the 'year-end effect' is witnessed here. After negative returns in October due to the Mark Twain effect, the market makes a significant recovery during November and December. This turnaround is clearly visible in the average daily returns of the months since 1992.

In the past 21 years, November generated the highest monthly returns six times. The 'year-end effect' has become more pronounced in recent years. It could be that after a strong rally in November-December, investors have booked profits, leading to negative returns in January.

4) Pre-Budget Rally

What does this mean?

Stock markets tend to surge during the run up to Union budget and slide after it is announced. This happens because the budget in India is more than a financial statement of the government. It makes a lot of policy announcements, which explains why stock markets get excited about the exercise. Most industry associations lobby hard with the government for additional benefits and tax sops and come out with their wish lists of Budget expectations.

Markets are also rife with rumours about how many of these industry demands will be met (or at least find mention in the budget speech). Based on this speculation, markets tend to move higher during the weeks preceding the Budget announcement. Once the budget is out of the way, the reality dawns and stock prices go back to their pre-budget levels.

Does it hold for Indian markets?

This phenomenon is specific to India and is very evident in the way the markets react to the budget. We looked at the returns from the markets before and after the exact budget dates during the past 20 years. The pre-budget rally and post-budget crash are clearly visible. You may wonder why the pre-budget rally did not hold good for the 1-week period. This is because some market players book profits well in advance before the budget is announced.

5) Friday Effect

What does this mean?

Also known as the weekend effect, this suggests that returns on Mondays will be more volatile than on other days. This is because Monday trading has to discount more information that comes out during Saturday and Sunday.

This information may be company-specific events (declaration of results on weekends to reduce its impact on stock price) or macro events (political developments or a spike in crude price due to geo political tensions). Since they don't want to ruin their weekends, most traders square off their positions on Friday itself and, therefore, the returns on Fridays are generally muted.

Does it hold for Indian markets?

Yes, because Indian investors value their weekends just as much as their American counterparts. Most traders square off their positions on Thursdays and Fridays, and very few high-risk traders carry their positions to Mondays. Data of the past 20 years ratifies this hypothesis. For example, the average daily returns generated on Fridays was only 0.3% compared to the average 0.67% returns generated during the other four days.

6) Elephants can't gallop

What does this mean?

If you want multi-baggers in your portfolio, you need to start searching among mid- and small-cap stocks. A company will grow very fast in the initial years because of its low base. However, the growth rate slows down once it achieves a certain size in terms of revenues. The proponents of this theory often point out that all blue-chip stocks were small caps at some point of time.

Besides, mid- and small-cap stocks are considered risky and usually trade at a discount to the large-cap stocks. This theory is applicable for mutual funds as well and the performance of a scheme suffers when it becomes too big.

Does it hold for Indian markets?

In India too, small-cap stocks have outperformed the large-cap stocks in the long term and the trend should continue in future as well. However, this holds true mostly during a bullish period as is visible from the 10-year chart. On the other hand, large caps tend to outperform mid caps during bearish phases and flat markets as visible during the past 5-year period.

7) Buy when there is blood on the street

What does this mean?

It is often said that you should buy when they sigh, and sell when they yell. In other words, you should do just the opposite of what everyone else is doing. Baron Rothschild, an 18th century British banker, famously said that " buy when there is blood on the street, even if the blood is your own". This assumes that valuations plummet when the stock markets hit a rough patch.

Investors who enter at this time have a greater possibility to earn higher returns. On the other hand, when the markets are humming with delight and everything is looking rosy, it may be the time to exit.

Does it hold for Indian markets?

This is a cardinal rule of value investing and works perfectly in India as well. As visible from the Sensex PE chart, the best time to invest was when there was utter panic in the market - after the crashes in 1994, 2000 and 2008 when the Sensex trailing PE fell to 12.

8) You need stomach and not brains to make money

What does this mean?

If you want to make money from stocks in the long term, you should be ready to withstand the ups and downs in the short term. Only investors who have a strong stomach will be able to do this while others will panic and sell their holding whenever there is a downtrend in the market. Your ability to withstand the volatility and hold on to the stock for the long term is more important than your stock-picking skills.

Does it hold for Indian markets?

The virtues of long-term investing hold true for India as well. As visible from the Sensex rolling return table, the probability of gain and loss is very high for shorter holding periods. The risk comes down when the holding period becomes longer.

9) The cockroach theory

What does this mean?

The cockroach theory says that one bit of bad news is usually followed by more. If you see a cockroach in your house, it is evident that the bug is not alone. There must be more of them hiding somewhere. Similarly, when a company comes out with bad news after a long gap, expect more shocks to follow. In some cases, you may have noticed the bad news for the first time, but there may be other negatives that escaped your attention. The cockroach theory can be extended to an industry as well.

Does it hold for Indian markets?

This is a universal rule and applies to the Indian market as well. Since the transparency level in corporate India is terribly low, the probability of cockroaches hiding in the woodwork is very high. Investors must keep their eyes and ears open for bad news and be ready to act as soon they get it.

10) Return of capital is more important than return on capital

What does this mean?

In the mad rush for returns, an investor should not lose sight of the basic rules of risk management. This is just a reminder that more than returns, one should focus on the safety of the investment. There is a non-linear relationship between gains and losses. For example, you need 100% gains to recover a 50% loss.

Does it hold for Indian markets?

This is another cardinal rule of investing and is, therefore, valid for India as well.

(with Sameer Bhardwaj)

Source : By Narendra Nathan, ET Bureau