Target the Treasure

Wealth building companies in India...
🚩 Rs.1.00 lakh invested is worth -
Infosys 29.02 Crores 1994
Lupin 11.70 Crores 2002
Wipro 8.75 Crores 1994
MothersonSumi 7.75 Crores 1999
Shree Cement 6.44 Crores 1998
Kotak Mahindra 6.08 Crores 2000
Emami 5.44 Crores 1996
Vakrangee 5.25 Crores 2000
Eicher Motors 4.52 Crores 2000
AurobindoPh 4.52 Crores 1997
Blue Dart Express 4.17 Crores 1999
Havells India 3.72 Crores 2000
Amara Raja 3.68 Crores 1995
Sun Pharma 3.47 Crores 1997
P I Inds 3.43 Crores 2005
BalkrishnaInds 3.10 Crores 1994
Hindustan Zinc 2.98 Crores 1997
CMC 2.77 Crores 1997
KPIT Tech 2.47 Crores 2002
Symphony 2.45 Crores 2009
TTK Prestige 2.33 Crores 2005

Wealth looser companies in India...
list of top 50 corporate
defaulters in this country
1. Kingfisher Airlines Rs.2673 Crore
2. Winsome Diamond & Jewellery Co. Ltd.Rs. 2660 Crore
3. Electrotherm India Limited Rs.2211 Crore
4. Zoom Developers Private Limited Rs.1810 Crore
5. Sterling Bio Tech Limited Rs.1732 Crore
6. S. Kumars Nationwide Limited Rs.1692 Crore
7. Surya Vinayak Industries Ltd. Rs.1446 Crore
8. Corporate Ispat Alloys Limited Rs.1360 Crore
9. Forever Precious Jewellery & Diamonds Rs.1254 Crore
10. Sterling Oil Resources Ltd. Rs.1197 Crore
11. Varun Industries Limited Rs.1129 Crore
12. Orchid Chemicals & Pharmaceutical Ltd. Rs.938 Crore
13. Kemrock Industries & Exports Ltd.Rs. 929 Crore
14. Murli Industries & Exports Limited Rs.884 Crore
15. National Agricultural Co-Operative Rs.862 Crore
16. STCL Limited Rs.860 Crore
17. Surya Pharma Pvt. Ltd.Rs. 726 Crore
18. Zylog Systems (India) Limited Rs.715 Crore
19. Pixion Media Pvt. Limited 712 Crore
20. Deccan Chronicle Holdings Limited Rs. 700 Crore

21. K.S. Oil Resources Ltd. Rs.678 Crore
22. ICSA (India) Ltd. Rs.646
23. Indian Technomac Co. Ltd. Rs.629 Crore
24. Century Communication Limited Rs.624 Crore
25. Moser Baer India Ltd. & Group Companies Rs.581 Crore
26. PSL Limited Rs.577 Crore
27. ICSA India Limited Rs.545 Crore
28. Lanco Hoskote Highway Limited Rs.533 Crore
29. Housing Development & Infra Ltd. Rs.526 Crore
30. MBS Jewellers Pvt. Ltd. Rs.524 Crore
31. European Projects And Aviation Ltd. Rs.510 Crore
32. Leo Meridian Infra Projects Rs.488 Crore
33. Pearl Studios Pvt. Ltd. Rs.483 Crore
34. Educomp Infrastructure & School Man Rs.477 Crore
35. Jain Infraprojects Limited Rs.472 Crore
36. Kmp Expressway Limited Rs.461 Crore
37. Pradip Overseas Limited Rs.437 Crore
38. Rajat Pharma/ Rajat Group Rs.434 Crore
39. Bengal India Global Infrastructure Ltd. Rs.428 Crore
40. Sterling Sez & Infrastructure Pvt. Ltd. Rs.408 Crore
41. Shah Alloyes Ltd. Rs.408 Crore
42. Shiv Vani Oil And Gas Exploration Limited Rs.406 Crore
43. Andhra Pradesh Rajiv Swagruha Corp. Ltd. Rs.385 Crore
44. Progressive Constructions Ltd Rs.351 Crore
45. Delhi Airport Met Ex Ltd. Rs.346 Crore
46. Gwalior Jhansi Expressway LimitedRs. 346 Crore
47. Alps Industries Limited Rs.338 Crore
48. Sterling Port Limited Rs.334 Crore
49. Abhijeet Ferrotech Limited Rs. 333 Crore
50. Sujana Universal Industries Rs.330 Crore
Total:
Rs.40,528 Crore
DRT India

Cost of living as well higher education of child is going to be high http:// PA.. Pension after retirement is also a big concern among those joined post 2005 in govt or its undertaking services...
If you spent Rs 25,000/-Per Month today for house hold expenses, the same shall be around Rs 2.5 lacs per month after 25 years...How to meet this...
There is a solution. If you are 30 yrs of age and decide to avail pension at the age of 60, you need to invest Rs 5000/- Per Month in a financial product (equity) that grows @15% per annum...so at the age of 60, you have invested Rs.18 lacs and the value of investment would be around 3.5 crores...
Now you may expect dividend of 10% per annum (it comes around Rs 35 lacs per annum...this way you can spend 2.88 lacs per month as pension..
you may contact for detailed presentation...

Individual wealth in financial assets reaches Rs. 160 lakh crore in 2015
Individual wealth in financial assets have grown from Rs. 73 lakh crore in 2010 to Rs.160 lakh crore in 2015, shows the latest Kavy Wealth Report 2015.
Team Cafemutual Dec 24, 2015
Individual investors are taking a shine to financial assets. The total individual wealth in financial assets has increased from Rs. 134 lakh crore in 2014 to Rs.160 lakh crore in 2015, shows Karvy Wealth Report 2015.

In fact, there has been a significant growth in individual financial assets in the last five years. Individual wealth in financial assets have grown from Rs. 73 lakh crore in 2010 to Rs.160 lakh crore in 2015.

Karvy predicts that this wealth will double from the current Rs. 160 lakh crore to Rs. 326 lakh crore in the next five years.



The study shows that financial assets, which had a share of only around 35% of the new money invested in the last year; now have as much as 54% share of the allocation of incremental savings and investments.

Individual wealth asset allocation



Asset Type

Amount (Cr.)

Proportion

Financial Assets

1,60,55,686

57.25%

Physical Assets

1,19,89,287

42.75%




Classification of individual wealth

Financial assets

Among the different financial assets, direct equity is the most preferred way for individual investors to participate in markets.

Apart from direct equity, individual assets in mutual funds also saw a healthy growth in 2015. Individual wealth in mutual funds stood at Rs. 5.52 lakh crore in 2015, an increase of 40% over the last year. The report states that mutual funds have seen the maximum growth of allocation of new money from individual investors.

Individual assets in debt and equity mutual fund

Asset Class

FY15 (Cr.)

FY14 (Cr.)

YoY growth (%)

Equity

3,15,987

1,83,748

71.97

Debt

2,36,338

2,09,392

12.87




Individual wealth in financial assets as on FY15

Assets

Amount (Cr.)

YoY Change %

Proportion

Direct Equity

34,39,861

29.02

21.4%

FDs and bonds

33,26,429

13.10

20.7%

Insurance

23,59,790

16.85

14.7%

Savings Deposits

19,90,249

22.20

12.4%

Cash

14,48,320

11.33

9.0%

Provident Fund

9,24,026

25.53

5.8%

NRI Deposits

7,20,997

15.85

4.5%

Small Savings

5,78,990

0.02

3.6%

Mutual Fund

5,52,325

40.49

3.4%

Current Deposits

3,42,785

11.25

2.1%

Pension Fund

3,15,915

30.96

2.0%

Alternate Assets

41,960

76.85

0.3%

International Assets

14,040

10.91

0.1%




Physical assets

Individual wealth in physical assets stood at Rs.119 lakh crore as on FY15. “The wealth held in physical assets by Indian individuals de-grew by 2% in FY15 as compared to FY14. This is primarily on account of softening of prices of gold, silver and platinum globally. The individual wealth in gold stands at Rs.57.1 crore,” shows the report.

Individual wealth in physical assets

Assets

Amount (Cr.)

YoY Change (%)

Proportion

Gold

57,15,605

-8.60

47.67%

Real Estate

52,85,577

4.89

44.09%

Diamond

7,98,934

2.81

6.66%

Silver

1,84,472

-6.04

1.54%

Platinum

4,698

-17.25

0.04%




As compared to financial assets, Karvy predicts that physical assets are expected to grow at a slower rate of 4.4% CAGR for the next five years.

76% Indian adults financially illiterate: Survey
Over three-fourth Indian adults do not adequately understand key financial concepts, including risk diversification, inflation and compound interest, finds a global survey carried out by S&P

Rating agency Standard & Poor's (S&P) has said that 76% of Indian adults do not adequately understand key financial concepts, including risk diversification, inflation and compound interest. This is lower than the worldwide average of financial literacy, but roughly in line with other BRICS and South Asian nations, the ratings agency found out in its Global Financial Literacy Survey.

The survey results come from interviews of more than 150,000 adults across over 140 countries. Individuals were tested on their knowledge of four basic financial concepts: numeracy, risk diversification, inflation, compound interest (saving and debt).

S&P said, "Only 14% of Indian adults correctly answered the question on risk diversification. Conversely, 56% answered the inflation -question correctly. About 39% of adults who have a formal loan are financially literate, while more than a quarter (27%) of formal borrowers was found to be not financially literate. Only about half of the participants (51%) understood compound interest.



S&P's Global Survey also shows a material gap between men and women in almost every country. Worldwide, there is a five-point gender gap, with 65% of men not being financially literate compared with 70% of women. In India, the gap was wider with 73% of men and 80% of women not being financially literate, the survey shows.

Additional key findings on India from the S&P Global FinLit Survey:
In India, 26% of adults in the richest 60% of households are financially literate, compared to 20% of adults in the poorest 40% of households. Worldwide, 36% of adults in relatively richer households and 27% of adults in relatively poorer households are financially literate.
India's income gap deepens when broken down by topic. Poor adults are 21%age points less likely than richer adults to correctly answer the compound interest topic correctly. With regard to interest, the gap is 11%age points.
38% of adults with tertiary education are financially literate; compared to 30% of adults with secondary education, and 18% of adults with primary education.
The survey also uncovered information about consumers' familiarity with the financial products they utilise. While the array of financial products available in Asia continues to grow rapidly, S&P's FinLit Survey suggests that most consumers lack a general understanding of credit, compound interest and other key concepts. Research increasingly shows that saving money is better for development than credit. Yet, just 14% of adults in India save at a formal financial institution - and their weak financial skills raise questions as to whether they're getting the most out of their money.

Combination of Home loan EMI and Mutual Fund SIP can save you lot of money..........
What if your Home loan tenure is reduced without increasing EMI and even if the interest rate remains the same? Sounds interesting? Read it.
In year 2010, I bought a flat in Ahmedabad for which I took the home loan of Rs 48 Lacs from one bank. At that time the interest rates were around 10.5%. So I decided to take the loan for the tenure of maximum term i.e. 20 years as I could pay the EMI of र 47922/- easily.
The bank RM came to my office for filling up the forms. While filling the forms he asked me about the tenure I would like to go for. I told him that maximum tenure i.e. 20 years. Bank’s RM told me that sir maximum limit is not 20 years it is 25 years. According to my calculation I was ready for paying of र 47992/, an EMI amount for 20 years of tenure considering 10.5% interest and Loan of Rs 48 Lacs.
So if I chose to go for 25 year, EMI would be lesser. I tried to do the exact calculation and ended up with some unique Idea which I am sharing through this article. The EMI for the 25 years tenure was worked out to be र 45302/, resulting into the saving of Rs 2600/ per month saving into the EMI. So I decided to go for the longer tenure i.e. 25 years.
Initially, financially and mentally, I was ready to pay र 47992/ of EMI per month. So I decided to start an SIP of this Rs 2600/- and to use the amount accumulated through this particular SIP to repay the Loan into the future. I did some calculation in excel to check with the help of this combination of reduced EMI and SIP, how would it affect my loan repayment schedule.
My older SIPs were giving me some 18% kind of a CAGR but while doing the calculation I assumed that my future SIP would generate 15% CAGR only. I found out that with this combination and assumed return of 15% CAGR from SIP, I can repay the loan in just 18 years and 2 months.
Sounds interesting?
Let me explain,
Case 1: 20 years loan – Outflow (EMI – र 47992)
Case 2: 25 years loan + SIP of saving into the EMI (EMI र 45302 + SIP र 2600 = Total र 47992)
In both the above cases my monthly outflow is same. The only difference is the methodology. In first case I am only paying EMI in second case by increasing tenure I am making saving into the EMI and doing the SIP of the saved amount and thus making my monthly outflow same as that of case 1.
After 18 years and 2 month, the value of my SIP of Rs 2600/- per month assuming the 15% CAGR* would be approximately Rs 10.54 Lacs, which I can use to fully repay the Home Loan outstanding. In other words, the outstanding loan principle amount would equal to the Fund Value of SIP after 18 years and 2 months.
In the whole process I would pay 22 EMIs less compared to Case one, making an absolute saving into the EMI worth Rs 10.54 Lacs. Though Bank charged me 10.5% interest but for me the effective interest worked out to be only 10.03%.
If you are planning to buy the Home loan and if you have decided to take the loan for shorter period then you can use the above idea to save some bucks. So if you have decided to go for 15 years of tenure and your bank is ready to provide you maximum tenure of 25 years, then go for the higher tenure and utilize the monthly saving to do SIP into some good diversified equity mutual fund scheme/s.
If you have already taken the loan you can still utilize the above idea by asking bank to increase the tenure or you can also transfer you loan from one bank to another and while moving to the another bank take the maximum tenure. I transferred the above said loan to a nationalized bank at the time when 22 years of tenure was pending in earlier bank. I opted for 30 years of tenure in my second bank where I transferred my loan, therefore, further reducing my EMI. I added that saving also into the SIP and that would again save few more EMIs.
Conclusion
Thus, by selecting the maximum tenure of your Home Loan EMI and doing the SIP for the saved amount can help you repay your loan earlier. The return assumed

One should plan and start a SIP as early as possible..so far a SIP of Rs 2500/-Per Month in a particular fund has become more than 1 crore in last 20 yrs...

Classic example of How investment is better than consumption!
How Many People are riding ROYAL ENFIELD BIKE ? or wish to ride i t ?
Look at the company's growth
Eicher Motors (Makers of Royal Enfield).
Share Price on September 2001 = Rs. 17.50
Price of Royal Enfield bike in 2001 was Rs.55000/-
If any one would have bought the shares of Eicher Motors instead of a bike than he would have got 3143 shares ((Rs. 55000/ Rs 17.50 (share Price) = 3143 Shares))
Eicher Motor's Share Price as on 4th Aug 2015 is Rs. 20,158, Total Value as 3143 x 20,158= 6.33 crore
55000/- is worth 6.33Crore in 13 Years.
Now he could hv bought a Rolls Royce.
Today's price of 1 share is 21042/-

SEE HOW INVESTMENT OF Rs 10,000/- in 1993 become 2,25,00000/- (2 Cr.25 lakhs) today..
Motherson Sumi announced : 1:2 Bonus on 10th June'15
Wealth Creation of Motherson Sumi :-
Motherson came out with IPO at Rs 25 per share in April-1993
Only Rs 10,000/- of investment on 400 shares.
The Company's Bonus History and Multiplication of Shares as follows :-
1997-98: Bonus 1:2 - 400 shares became 600 shares
2000-01: Bonus 1:2 - 600 shares became 900 shares
2002-03: Split into Rs.5 paid up - 900 shares became 1800 shares
2003-04: Split into Rs.1 paid up - 1800 shares became 9000 shares
2004-05: Bonus 1:2 - 9000 shares became 13500 shares
2007-08: Bonus 1:2 - 13500 shares became 20250 shares
2012-13: Bonus 1:2 - 20250 shares became 30375 shares
2013-14: Bonus 1:2 - 30375 shares became 45563 shares
So, 400 shares became 45563 shares.
Current market value of 45,563 shares @ Rs 489 today
is Rs 2,22,76,884 (more than Rs 2 crore 22 lakhs 76 thousand)
Thus, 2268 times increase in Investment Value in 22 years!!!
👍Patience is bitter, but its fruit is sweet.😊✌
Such return on long term investment may be derived from MF investment...

Not just customers, bank staff are also fed up with unrealistic targets and mis-selling of insurance products
insurance, mis-selling, insurance products, business targets, State Bank of India, officers’ association.
These revelations are part of a letter written by Harshavardhan Madabhushi, general secretary of Associate Banks' Officers' Association-SBH unit to the MD of SBI’s Associate Banks Department

While customers accuse bank staff of mis-selling and arm-twisting them to buy insurance policies, a revealing letter from a State Bank of India (SBI) Officers’ Association exposes the pressure tactics employed by banks on their own officers to earn meagre commissions.

The letter also makes the interesting point that bank officers and staff face tremendous pressure to sell insurance, which involves huge manpower costs and time of the parent bank, for meagre commission earned from the insurance subsidiary, which is a separate entity. The letter further says that it would be far more fruitful to have bank officers and field agents putting in the same time and effort in recovering non-performing assets (NPAs) of banks.

The contents of the letter provide clear proof of how Reserve Bank of India (RBI) continues to ignore consumers and non-governmental organisation (NGOs), which have protested against the mis-selling of insurance policies by banks without regard to customer harassment. The travails of bank officers forced to meet targets and the cost of selling insurance, which is transferred from the insurance subsidiary to the public sector entity and its staff, are also issues brought out in the letter.

All these revelations are part of a letter written by Harshavardhan Madabhushi, general secretary of the Associate Banks' Officers' Association (State Bank of Hyderabad Unit) to managing director (MD) of SBI Associate Banks Department. It was uploaded on the page on the SBOP Officers' Mitra Mandal (Patiala) on 28 January 2015. In the letter, the Secretary lists issues that plague cross-selling portfolios in associate banks of SBI, and also makes few recommendations to address them.

According to Mr Madabhushi, cross selling is the main source of income for most associate banks. Hence, the certified insurance facilitators (CIFs) are mandated to meet unrealistic targets in a limited time, putting them under extreme pressure. They end up selling policies in haste – they are unable to provide proper information or advice to their customers. The poor customers are left saddled with an insurance scheme that offers no real benefits. The CIFs are also given monetary incentives for cross-selling schemes. However, the performance pressure far supersedes any positive motivation that may result from these incentives. They often end up resorting to unethical practices such as arm-twisting the borrowers to purchase SBI Life Policies in order to get a loan sanctioned, or debiting insurance premiums to the borrowers' account without their knowledge.

Moreover, associate banks receive no separate commission for after-sales service, because of which it is mostly neglected. On top of that, yearly renewals also take a backseat, when the original CIF, who sold the policy, is transferred to another location. Either there is no CIF appointed in time to take over from his predecessor, or the new appointee is too busy meeting his own targets to spare any time for the existing customers. There is no commission offered for renewals. Therefore, the CIFs have neither the time not the incentive to look into them.

The Secretary, in his letter, insists that is important to ensure that no officer in the entire hierarchy is offered any commission from the sale of SBI Life products. He cites the example of Life Insurance Corp of India (LIC), where the field staff is offered incentives without keeping the administrative set-up in the loop. If any officer is offered a commission, he is sure to pressure his juniors and other field staff to meet targets that would end up benefiting him more than any customer. Moreover, when the field staff finds themselves in such impossible situations, they end up resorting to unethical practices, as mentioned above.

Another observation in the letter is that since cross-selling accounts for most of the income for associate banks, a large fraction of their resources are concentrated towards it. Consequently, the core business of banking is neglected.

Furthermore, the bank staff are specifically trained and recruited to discharge only banking services. Moreover, these people sell us insurance policies after they pass an examination to become CIFs. They have neither the training nor the technical knowledge to even understand the business of insurance and all its nitty-gritties, let alone explain that to customers. It is not surprising, then, that mis-selling of insurance is so rampant in our country. How can somebody who is himself largely ignorant of the nuances of insurance be expected to provide sound advice to all customers?

The Secretary offers a few suggestions in order to address these issues. Firstly, it is important to set realistic targets for all branches and ease the unnecessary pressure on the field staff. They will be able to focus better on each of their customers, and have the time for providing after-sales service. Secondly, apart from just insurance products, banks can focus cross selling of other products such as credit cards in order to increase their non-interest income. Lastly, it would be useful to set up a separate vertical in all associate banks that focus on cross selling. It would ensure that the regular officers are able to focus solely on banking services, while ‘specialised’ officers can work on facilitating cross selling other products.

Another significant point to be noted here is that the commissions earned from cross-selling are meagre when compared to the number of man hours spent on it. It would perhaps be more fruitful to channelise these efforts in the recovery of NPAs, rather than exhausting all resources in something that provides neither a proportionate income nor any consumer satisfaction.

Here is the letter sent by the Associate Banks' Officers' Association…

Do you know, your monthly expenses of Rs 30,000/- today could be more than 2,43,000/- Per month after 30 years (considering inflation http:// PA)...
Do you know, the best way to meet this....?