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Mysuru Dasara 2021 lighting

Mysore Dasara is the Nadahabba (state festival) of the state of Karnataka in India. It is a 10-day festival, starting with nine nights called Navaratri and the last day being Vijayadashami. The festival is observed on the tenth day in the Hindu calendar month of Ashvin, which typically falls in the Gregorian months of September and October

The city of Mysuru has a long tradition of celebrating the Dasara festival with grandeur and pomp to mark the celebration. The Dasara festival in Mysuru completed its 411th anniversary in the year 2021,

How to scan for good fundamental stock

Well, it is easy. Use this formula in your stock scanner, and you will get the list of stocks which you can invest on.

eps > 80 AND
Current ratio > 1.5 AND
Debt to equity < 20% AND
Interest Coverage Ratio > 5 AND
Sales growth 3Years > 10%

Each of these parameters are big topic by itself, and we will discuss these parameter in great detail. Also let’s find out why we are using these parameter values in our next blog.

You can use this formula, as it is in a stock scanner website like screener.in

I am keeping this blog short so that you can subscribe to our news letter and you don’t miss anything important.

Now it’s time to scan for your next investment.

If you find this blog useful please share with your friends and family!

WHO IS HAPPY?

The Crow, Swan, Parrot or Peacock

Short Moral story of Birds

A crow lived in the forest and was absolutely satisfied in life.

But one day he saw a swan. “This swan is so white,” he thought, “and I am so black. This swan must be the happiest bird in the world.”

He expressed his thoughts to the swan. “Actually,” the swan replied, “I was feeling that I was the happiest bird around until I saw a parrot, which has two colors. I now think the parrot is the happiest bird in creation.”

The crow then approached the parrot. The parrot explained, “I lived a very happy life until I saw a peacock. I have only two colors, but the peacock has multiple colors.”

The crow then visited a peacock in the zoo and saw that hundreds of people had gathered to see him. After the people had left, the crow approached the peacock.

“Dear peacock,” the crow said, “you are so beautiful. Every day thousands of people come to see you. When people see me, they immediately shoo me away. I think you are the happiest bird on the planet.”

The peacock replied, “I always thought that I was the most beautiful and happy bird on the planet. But because of my beauty, I am entrapped in this zoo.

I have examined the zoo very carefully, and I have realized that the crow is the only bird not kept in a cage. So for past few days, I have been thinking that if I were a crow, I could happily roam everywhere.”

That’s our problem too. We make unnecessary comparison with others and become sad. We don’t value what God has given us. This all leads to the vicious cycle of unhappiness.

Learn to be happy in what you have instead of looking at what you don’t have. There will always be someone who will have more or less than you have.

Person who is satisfied with what he/she has, is the happiest person in the world.

Here are five reasons, why crypto can be new gold ?

Gold is not easy to store and also not very easy to liquidate into money. We need to have a safe place to keep our gold even if it is too little. Often we store the gold in a bank locker or volt if you have installed one in your home. On the other hand, cryptocurrency can be store easily in our digital wallet with password protection. Also, it is easy to transact using cryptocurrency. Well, that’s the reason we call it currency. Cryptocurrency has the property of gold. Well, that means the value of the currency will not get depreciated over time.
Transporting gold is often requires security. Well, we do not even need to mention this point. If you remember the last time you wore a piece of costly jewel, how many times would you check if it was fine and in place? Obviously, no one would like to lose their wealth in the middle of the party. On the contrary, cryptocurrency would not attract unwanted people’s eyes to your wealth.
During a natural calamity, would you protect your life or the gold which is there on your volt? Well, crypto would come along with you as long as you remember your password. You can retrieve your wealth anytime, anywhere, as long as there is a receiver.
In case of an economic crisis due to war, inadequate political leadership, or a bad bank, Buying power of actual currency would go down. On the contrary, the gold price would go high; however, who will have that money to buy the gold. Cryptocurrency would have an autonomous economy and would not get influence or impacted by the local economy.
Gold would restrict any individual from travel as they need to come back to where it is stored to liquidate. But crypto gives you the freedom to travel with your wealth and gives you the freedom to liquidate anywhere.
Bonus point gold prices would go down when humans start mining on other planets in the future.

Disclaimer The thoughts expressed in the blog is education purpose only and not finncial advise.

Why is real estate in India not yet ready for investors?

If you are a first-time homebuyer or planning to buy a house for investment in India. There are few things you should be careful about. India has thousands of years of history, and land has moved from person to person, from kingdom to other, and so on. However, we are not here to talk about our Indian history, but to understand some of the problems which have carried forward from the past and still haunting our present. We have moved from a trust-based society to a legal-based society. We are dependent on our law to protect the purchase of our land. However, our Indian law may take several years or decades to resolve the conflicts when things go wrong. Well, as Investors, we do not risk our money for uncertainty.

Well, I am not challenging the law or judging the effectiveness of how the Law system functioning. But I am worried about how much time and money it would take to resolve the issue if something goes wrong in our real estate investment. Well, it is a topic for another day. Now let me come back to real estate and say why I think real estate investment is not attractive?

Well, India is the seventh-largest country and stands second in world population, that is the fact. However, our Indian real estate growth is still under a dark cloud. Even though Indian digital growth is outstanding but it seems real estate is left behind on digital transactions. In real estate, sellers still ask for cash transactions to avoid tax, which gives rise to the black economy, and buyers are impacted. I will talk about this later in this article. Property buyers are not safe in the real estate sector. Here are some of the reasons

Banks in India provide home loans on the individual’s income and credit score of the individual. I am not saying this is wrong. But when buying a house with a home loan from the bank, they don’t provide a loan based on the asset value but provide a loan based on individual income and ability to pay back. Here asset we are referring to is real estate. Why don’t banks offer loans based on the house value? In simple words, the bank doesn’t want to take responsibility for any obligations on the asset they have provided the loan. Even though home buyser lose the house, buyers have to pay back the loan with interest. So banks are not worried about your well-being or the asset. They are only concerned with their money. So take time to laugh at bank advertisements if you see one. No, wonder why Indian banks have so many non-performing assets.

What happens when you stop paying loans?

Your credit score will get a hit, and you will no longer be eligible for loans from any banks.
Then your asset will be a pledge and will be out for auction.
The amount which you have paid to the bank he’s gone forever
There is no title insurance in India, Don’t ask me what title insurance is? Yes, many of us in India, Don’t even have insurance to protect our real estate or home. The problem is inadequate records, issues with inheriting ancestral properties, corruption, and illegal land acquisition. I don’t think any companies would come forward to protect retail property buyers anytime soon.
There is no proper town planning and master plans for cities. Or even If there is one, it is being manipulated for an individual’s benefits and gains.

Well, if we keep listing the problems, it keeps growing. Some other reasons it is not a good investment are the imbalance of rental and property value ratio. What do I mean by an imbalance of rental and property value ratio? Every rupee we spend to buy a property returns less than 1% of the property value in retail space. It depends on the locality, connectivity, transport facility, and so on.

On average, the property value may appreciate around 10%. These are excessive numbers, but there are no actual public records available based on each city or area. If you know how to get this information in India? Then please educate us by commenting below. The only way to find out the current land price is by asking a local real estate broker. Even though the grovement entity maintains land price, we have to pay a premium price to purchase real estate. There is a considerable gap between bid and ask price in real estate.

Here are some tips buyers should look into while buying the property

Check if the seller and landowner are the same. You find this in EC.
Check that there is no objection certificate in place for the property you are buying
Check if property tax had paid
Make sure 100% of the purchase done via the bank for bookkeeping
Check if electricity, water bills are paid.
In all records seller’s name should appear.

We will come with another article with complete guides on, how to buy real estate?

Investing in stock market 101

Before you start investing in the stock market, we would like to quote Worn Buffet words

“Rule number 1 Never loose money. Rule number 2 Never forget rule number1”

To invest in the stock market, you should have a Demat account and a bank account.

If you don’t have a Demat account, you can open it with Zerodha here

Once you have an account opened, you are all set to start your journey in stock market investment.

Investing money for the long term is different from investing money for the short term; both need different skill sets. Like, how to read the companies balance sheet vs. reading the stock daily charts.

We have a variety of options to invest in based on your financial requirements. Let us see one by one

IPO (initial public offering) is when any company wants to go public and share its profit with ordinary people or institutions. Here equities will be allocated to stakeholders from the primary market.
Equities or securities refer to stocks traded in the secondary market that can be bought or sold through exchange brokers like ABM, Zerodha, or any other stock brokers
ETF (exchange-traded fund) trades in secondary markets like stocks, but this is a combination of securities bundled together by AMC companies. For example, Kotak Nifty EFT combined all the shares in the listed Nifty index provided by Kotak. If you are a beginner and want to take less risk, this is the best starting point for all beginners. As ETFs have moderate risks generally.
F and O (options and futures). F and O’s are mainly used to hedging against our investment. These means you use to protect your investment against the volatility of the stock market. However, we should only venture with a proper understanding of the stock market and its underlying mechanism.
Commodities trading: here you buy and sell commodities securities through exchange broker like MCX, when we are talking about commodities this is essential commodities like Gold, copper, oil, and many other. Commodity trading can be used as hedging options to protect market volatility.
Of course, we have to talk about mutual funds When we talk about the stock market. However, most of us would have invested in mutual funds without knowing where our money would get invested. Mutual funds are manage by fund managers, so-called experts. And we have to pay a fee for managing our funds to AMC company from where you would purchase the mutual fund. We are not great advocates of mutual funds, but if you plan to invest your money here. It is better to invest in index funds or good quality funds. For mutual fund investment, you do not need a Demat account.

We will deep dive into each of these instruments in our future blogs. These will give you a better understanding of each of these terms or stock instruments. And we are making videos detailing each of the stock instruments.

We want to bring to your notice that is speculating is not equivalent to investing. When you assume, that means you are ready to take some risk. So please make an informed decision.

Talking about speculating, do you think ICO (initial coin offering)is a good investment? Join us in the comment section to discuss

In our next blog, we will talk about real estate and insurance, which are fascinating topics, and we will let you know if it is the right time to invest in real estate?

We thank you for making it so far and sharing your valuable time. And we see you in our following blogs.

Investing our money in Bank

Before investing our money or time in anything, we should understand how fast we can liquidate our money when we need it. Of course, we are investing our money because it can work for us when most needed during our crises or for the new Horizon.

Without further ado, let us dive into the bank as an investment vehicle

Indeed bank gives us more liquidity than most investment vehicles, but it comes with its cost tag.

Bank provides us different accounts as a service. Some of the account types are

Saving accounts (which is a high liquidity instrument but give us low return. maybe around 1 to 3%)
A recurrent account is a perfect instrument if you are saving your money for your short-term goal). When I say short-term, it is 3 to 12 months.
Current account this is mainly used by business and institutes for money transactions.

Bank provides us high liquidity, which means we can withdraw our money whenever needed it. We can start with UPI, ATM cards, Net banking.

Some of these services come with annual charges and minimum balance criteria. Of course, they will charge it because they must pay for infrastructure, employees, CEO, and other things.

So how long would it take to make your money double?

If your bank is paying a simple interest of 3.5% annually and has deposited 1 lakh, it would take 33 years to double your money. Oh, dear, this even called investment?

We will leave it for you to answer that question in the comment section below.

It would help if you always go for compounding interest whenever it is possible. Yes, it is easy to say than done.

So, is there any risk involved in bank deposits?

Yes and no, it depends on which bank you park your money in. We all know Yes-bank, PNB bank issues. But overall, your money is safe in the bank, and you should never walk away from the bank system.

So how much of your money is suggested to park in the bank?

It depends on your immediate money requirement. However, we suggest keeping three months of expense or three months salary. Whichever is higher, this only applies when your health care and life are insured.

We have already talked about insurance in our last article so that you can find it here.

If you don’t have health insurance for you and your family, it’s better to have at least 12 months of expense or salary reserves in the bank or cash to manage risk.

What future holds for banking?

There is extensive research on “blockchain technology,” a possible alternative way to do money transactions. It is not legal in many countries, but this will be the mainstream of transacting money shortly.

We will do a separate blog about blockchain.

If you like to get started quickly in crypto, you can open an account with Wazirx. We have invested our money, and we feel safe about Wazirx. To get started, click here.

Because of COVID 19, many reserve banks worldwide have cut the interest rate to stimulate the economy. So you expect lesser returns from the bank.

learning as investment 101

A good investor invests in their skill improvement. Yes, building skills is the best investment anyone can make. Many investors lose their money because they don’t build the skills needed to make good decisions. Yes, that’s the sole reason many folks invest money in their education to join better colleges or universities. But what most of them do not realize is that even with a degree from great colleges, if they don’t make good decisions, they may end up broken. Most of our life-changing lessons will come from while we are working towards our goals.

I am narrating this story once told by a teacher in corporate training. The story was told like this, once a cargo ship sailing from the US to the UK got stopped in the middle of the ocean, and the captain of the vessel tried starting several times, but it was in vain. Then he calls all the cru members and says whoever starts this engine will get rewards according to their demand. One gentleman comes forward and says I can do it. And then he took a hammer and hit the machine in different places and starts the engine, and to the captain’s surprise, the engine starts and works seamlessly. And these gentlemen demand 100$, and the captain got shocked at such a hefty price tag during that time. And captain asks these gentlemen, why are you quoting such a high price for such small work? What you did is just hitting the hammer. Gentlemen replies 1$ for hitting the engine from the hammer and 99$ for knowing where to strike on the machine. Since the captain had promised, he just handover a high price and walks away. We understand that knowledge is money, so never shy away from learning new skills irrespective of age or gender. Knowledge is the same for all.

We are writing much insightful research on skills required relevant to thrive and prosper in this 21^st century. So please don’t forget to subscribe to our newsletters. If you are planning to build the IT profession and want to make good money out of it? Then We recommend you the Pluralsight. We recommend things that we use and suggest the things which had proven to work for us. So please do check out. till next time bye

Insurance as investment 101

Insurance

Many of you might be thinking, why do we even talk about insurance in the investment channel. We say the investment is for thriving when the economy is doing good, and insurance is for surviving during a bad economy. We can say insurance is a well-being fee. Well, it’s the fee that means we should not commit more than we could offer. For every asset class, there will be corresponding insurance. If we think assets are objects, then insurance is the shadows of an object. When the object gets destroyed, shadows manifest into equivalent value assets. It may not be identical to a real thing.

This Story is from Indian mythology, and it happened that the Sun god wife Sangya was constantly disappointed with the expectation set by the Sun god Surya. She is not able to perform all the activities set out by the god. She wanted to attain greatness by meditation to get the power to meet the Sun god’s expectations. She seeks advice from her Father, Vishwakarma, regarding this matter. Her father advised her not to go for meditation because there will be no one to take care of her kids. However, She decides to clone herself with a magical chemical from her father’s lab. Clone of Sangya called Chayya, Sangya ensures that Chayya takes care of her kids and performs all the activities set out by Sun god. And Sun god un-aware of this matter, he was pleased with Chayya because she performed all the activities and also taken care of kids. He blesses Chayya with the kid. When Sangya comes back to the kingdom, the Sun god will come to know about this matter and advices Sangya not to undo her clone. Now part of responsibility and value has been taken away from Sangya and given to Chayya. So moral of the Story is don’t overdo anything beyond your limits. Since it is an investment, we say we should know what our financial limitations are.

As we told, there should be insurance for every asset class; let us see some of the insurance in the market and how we can use it for our well being

Life term insurance
Endowment insurance
Health insurance
Title insurance
Vehicle insurance
Transport insurance

Insurance is a powerful tool that protects your wealth during a crisis and helps us recover back to normalcy. However, it comes with a price tag too.

Does it depend on each person as to how much they have to cover their assets in insurance? The answer is simple higher the asset value, the higher the insurance fee.

So we are not discouraging or suggesting that we should have lesser assets. No, that is not what we mean. If we aquiver the things that are more than our needs, the chance of getting into financial overhead is more.

Let me explain to you, for example, if Jone is earning 1000$ every month, And if he made a profit in the stock market trading worth 10,000 $, Jone decided to buy a car worth 40,000$, thinking he could make some more profits in trading like that. Now he has 30,000 as a loan, and he has to pay insurance of 1000$ every year. And EMI comes to 500$ every month for subsequent years. Jone beat again in the stock market, but he did not profit this time, but he lost 2000$. I think you already got what I am saying right. To cover the loss, he goes for a loan top up. After one year, due to high stress, he decided to sell off his car for 35000$. Well, it was not a good choice to buy things which are more than our needs. Well, the insurance fee is just overhead if it is a wrong investment.

We are not even saying insurance is terrible. Insurance is essential for the things we care about the most. Like our health, parents’ health, protecting our kid’s future, and if we are the sole breadwinner than insuring our life just in case of unfortunate happens, it should not impact our family members.

In all the case insurance tries to protect insuree from the financial crisis. However, insurance will come with many preconditions based on the premium amount. Some time would be better to go for comprehensive coverage. For example, if we go for standard health insurance, health insurance may not cover all diseases. What’s is the point of having health insurance. Well, I have more examples if Joy has a personal loan worth 50000 and joy is the sole breadwinner in the family. Joy avoids buying term insurance. Well, it is a wrong choice. What if Joy kicks the bucket due to some unfortunate fact, and then family has to bear the personal loan. A good investor always focuses on wealth creation and wealth protection while keeping their famillies risk-free.

Many insurance companies offer insurance come returns on investment plans which may link with the stock market. We call it ULIP. Even though this kind of insurance looks very attractive, is it worth buying this kind of insurance? The answer is yes and no if you have minimal knowledge of investing your money and managing it. Then ULIP is for you. However, if you know how to invest your money? You can earn much better returns by investing and managing your money by yourself. For those who are not good at investment, some money in this kind of insurance may make sense. However, if you want to grow your money, you should learn how to invest your money better. Here at Mhuts.com, we are committed to providing the best investment content. So make sure you follow our social media so that you can make informed decisions on your investment.

If you are an employee, then most probably, health and life insurance will be given by your company. However, if you constantly keep changing your job, it is better to own your insurance by yourself. Also, make sure your insurance covers you, your family, and your dependents. For self and business people, it makes sense to have insurance owned privately. In some countries, the government would provide health and life insurance. Would you please check your country’s public website on this? Also, it will significantly help if you can leave the URL in the comments section. It would help the reader.

If you ask us what a reasonable premium we should pay for our insurance is, we recommend 1% of your annual income. However, it is not always possible to achieve this. We end up paying more than we think. It would be best if you took our advice with a pinch of salt. And do your due diligence before taking any insurance. The easy part is buying insurance, but the hard part is claiming the insurance when it gets mature because either nominee would have been unaware of the insurance. Or companies take time to check the well-being of their clients. Like many wise companies would a good deal of profits by unclaimed money. So we took a small initiative towards this issue. We create the tool which helps inform you and the nominee regarding your insurance. If you are interested, please check it out here.

Or click on tools to find insurance reminder.

Real Estate as Investment 101

Introduction

Often we connect with piece of land or property with good deal of emotion attached to it because, it might be the place where we had spent our childhood with our grandparents, or It can be your first home you bought from your salary and so on.

Before we take real estate as investment vehicle make sure, you are not attached emotionally with property and make a clear exit plan, just in case it if is not working out for you.

Note please do not think the home which you live is an investment unless you have bought it yourself for investment purpose. Due to obvious reasons.

And by the way buying house, it can be sometimes liability then investment in short term. with that controversial statement, lets unpack real estate

There are different segments of real estate investment, it can be

Residential properties it includes, single family or multifamily properties, or gated community apartment or it can be beautiful out skirts villa where you get away from day today Hussle and bustle.

Commercial properties like shops, malls , office space, hotels and so on

Industrial properties this are mostly used by business for building their factories or warehouse.

Agricultural lands can be classified into wet land, semi wet land, or dry lands. Based on water availability and irrigations facility. If you are have forming family background, or studying related to agriculture. This might be good option for you to invest both your time and money.
If you have big pocket even you can think buying small highlands but make sure, you take your food along with you because most of highlands are not having any habitat, and also don’t forget your return ticket.
If you think that all there to cover in real estate then, think again. There whole new opportunity opening in real estate market, Yes. That is inter planet residence. It is not far away where people are living in Moon and mars. We can see this happening, in our generation itself, by the end of this century people living in Moon and Mars will be traveling between the planets for visiting their families, or going out of earth for their business trips. Already many company like space X, amazon, etc. or thinking these as possibilities.

Now we know where we can invest our money in real estate.

Let us understand how can we make money from real estate?

Money can be made in two ways, one by renting out your property and 2^nd by waiting for property to get appreciated.

Of course there is another part to it , you can earn some money by brokerage by referring people to right property, that we are not covering in our channel.

Sad part of most investment is you can only make money when you sell it, but there is exception to it. in real estate sector has huge rental market, where you can rent your property or lease it, without selling out your property.

Rental properties are profitable when you buy the property without any loan. Or if you buy by paying 60% to 70% of down payment from your savings. We are not saying if you are buying property by mortgage or loan is bad, But you cannot make profit quickly. Of course, you can make profit but return on investment will be too long. But it all depends when your mortgage or loan gets closed.

Do not get disappointed with our answer, what if we say there is alternative way.

You can make profit in less time, If you buy property with right ratio of mortgage interest rate, down payment and earn right rent per unit of property.

We do not want our introduction on real estate video to get too long, So we will make it separate video on this topic for you to watch it. Make sure you have subscribed to our channel, so that you can watch when it is done.

That is out of the way. Let us focus on when our property get appreciated?

Of course, you know the answer when there is demand.

Demand for property can go high or low based on some of the factors like

Near by government project or IT corridors. can boost the real estate price to go high.
Job market is biggest driver for increase in real estate value, as more people needs to be sheltered and hence increase the rental value and also value for property for purchase.
And also tourism is another biggest factor why property value goes high, as tourism enables small business like hotels, restaurants, handlooms business, etc. to thrive. This also creates demand for more commercial properties and residential properties.
Increase industrial activity can increase value for industrial properties, agricultural lands as there will be high demand for raw material,etc.
Good road, rail and air connectivity can benefit all segments of real estate, you can witness this in western countries .
Overall real estate will grow when economy is doing good.
You can see some or all the aspects in metro cities across the world and hence property values in metro cities are very high.

Don’t worry if you have not invested in any of metro cities here is some good news.

Because of COVID 19 many major companies are allowing their work force to work from home. Many of employees can now think moving back to their home town in tier 2 and tier 3 cities. This will boost macro economy outside the metro cities. And property demand may go high in tier 2 and tier 3 cities. It again depends on future demographics.

From long term perspective if we see, real estate has given constantly high returns.

For all speculators it is better to wait and watch, what holds for commercial properties in future? COVID 19 has turned tables for all office spaces segment, As many IT companies and financial firm has started providing their employees to work from home.

We are making more video related to real estate in our near future. Featuring how small changes in property can increase property value, we will also see how to find right value for the property and so on. Buying property involves lot of paperwork and goes through various government offices and fees. We get into those things in our upcoming video on real estate.