Conviction of Mind

There are two fruits, say banana and apple, in a basket. If you were given an OPTION to take one of the fruit, which one will you take? Notice the word OPTION in the above sentence. You are given a choice between two fruits. Say, now a security is at Rs.5000/-. You think it will go to Rs.5500/- in a month. If you have Rs.20000/- for trading, you can buy only 4 now and sell it after a month. If you opt for OPTIONS, you can buy at a lesser price and gain more. For Rs.20000, you could get an option for buying 80 (approx.) securities (each Rs.5000/-). CASE I: ----------- After a month, if the security price is Rs.5500/-, You would gain => (5500 - 5000) * 80 = 40000. But you have already given 20000 to get the option. So, your profit would be Rs. 20000/- => 100% return in just a month :-) CASE II: ------------ After a month, if the security price is Rs.4000/- you have already spent Rs.20000/- on getting the option. Total Loss: Rs. 20000/- (Already spent on getting option. You will no...

For those who are new to booking ticket in IRCTC, take a look at my previous post . There is some good news for the IRCTC users. You are in no need to search for your ID card while booking your ticket. Also, you can take the print-out of the mail sent to you and travel with that. The only thing is at least one person mentioned in the booked ticket should have his ID card to show it to the TTE/TTR. These are the recent set of instructions for e-Ticket bookers in IRCTC There is a introduction of "Side Middle" in few of the trains and it does improve the revenue for the government. But it puzzles even frequent travellers!! More puzzle comes on the way when you booked a upper birth and got a side middle birth. Sometimes TTEs rectify this and sometimes they don't. Even if the ticket say S5 35/ UB, you will be alloted Side Middle. Can you spot out why? When you booked the ticket the system was programmed to have 8 births / compartment. Now, after the introduction of Side Midd...

Computers are ubiquitous and it hasn't left Indian Railways behind. IRCTC is a site for booking train tickets online. Unlike the booking of air tickets, IRCTC accept your debit cards as well. So, those who don't like credit cards (for any matter), can use this site to book tickets online without any fuss. Even now, I can see so many people standing in a long queue to book their tickets! If you know how to create a e-mail online, then you can book a train ticket as well. It will take about 5 minutes to book a ticket online when you have all the other information handy. You can use many other sites to check for the availability and then carry on to this site to book the ticket online. Better use e-ticket option There are two options in the site. one is i-ticket and the other e-ticket. When you choose i-ticket, the ticket booked will be delivered at your doorstep. When you choose e-ticket, the ticket will be instantly delivered through your printer! Even if you don't have a p...

I will demystify the ULIP plan, which is widely used everywhere now-a-days! To state it fast and simple, it is a plan with both Investment and Insurance with Tax benefit. Sounds cool? But it isn't really. Lets see how. ULIP is Unit Linked Insurance Plan, which means they are going to invest in shares (similar to mutual fund) and also give insurance in the meantime as well. There are charges (hidden) everywhere. There are Fund Management charge, Mortality charge, Allocation charge etc., for a ULIP plan and this will be more in the first few years based on the plan. Usually, based on the plan, I year - 15% to 65% II year - 3% to 15% III year - 3% to 15% There is not much charges from the third year in plans offered by few companies out there. So, where these high charges go? Do they really need this much for managing your fund? 1. There should be some amount for giving you insurance and this can't and shouldn't be invested. So, it constitutes fair percentage based on your ...

I downloaded Google chrome and using it for the past few days. Google chrome is the new browser just released by Google, which is going to compete against the giants Microsoft's Internet Explorer and Mozilla Firefox. Recently released Firefox 3.0 made records in downloads. Google chrome released its BETA version recently as a open source only for WINDOWS Operating system to get some quick feedback. A quick snapshot of Google chrome is here. Really Good things about Google Chrome: (1) No Browser Crash Anymore : When you open many sites in the browser, it might cause it to act slow or crash sometimes. The crash sometimes happen when it downloads some data recursively or some large data or for numerous other reasons. Yesterday, I was using Google chrome. I opened a page which had some flash page running and it was actually crashed! But it didn't crash the whole browser. Yeay!!! I love it... Actually, it displayed that there was something crashed in all the other windows...

Nokia E51 is a smart phone with almost all the features available in it. It looks really slim and comes in three colors. It has loads of features and highlight of them all is the connection through the Internet through WLAN. You can get a Internet connection from the service provider and ask for the wi-fi router. With the wi-fi router, you can connect to the Internet through various other devices like Laptop, Nokia E51 etc., You will be provided with the password for the WLAN connection and only if you enter the password correctly you will be connected to the Internet through that WLAN. As you may expect, this password will be asked only when you connect to Internet through this WLAN for the very first time. In Laptop/Computer, you have Network settings to identify and modify the settings if wrongly entered. But this is somewhat tricky in case of Nokia E51! In Nokia E51, You have the option of Browse WLAN right at the home page for you. If you have customized for something different, u...

The final day of the Olympics fever has come and one of the famous topic debated among the sport freaks is this one OLYMPICS Vs CRICKET especially in India. One of the big reasons for this debate in question is Cricket is not included in Olympics. Otherwise, certainly Cricket should have been a part of a very big event called Olympics. In India, When you consider the athletes known to people well, you will end up seeing more number of cricketers in it and because of this, cricketers get one of the biggest remuneration in India. There cannot be anyone who knows Bindra and not Sachin but the reverse can still be true. That is the mass following for cricket in India. Certainly, Olympics is at a bigger stage compared to cricket. Olympics contains many games in it and cannot be certainly compared as such with Cricket in any other country other than India. The other reason for the significance of Cricket over Olympics in India is the PERFORMANCE of cricket over olympics. This doesn't mea...

There are many offers always available worldwide but not always useful (with most of them eye-catching discounts at perfectly wrong time) Coming to the offer of discussion, Axis bank has come up with an offer for increasing the awareness of its VISA debit card in doing transactions online (buying and selling goods). It is not linked with IRCTC but giving Rs.50/- on the first successful transaction made on the VISA debit card (with registration between July 1st to August 31st). This amount will be remitted to your account only after a month. Even if you are a infrequent traveler in train, you can use this IRCTC site to book tickets right at your desk. These things are of great convenience with the increase in the pace of technology. Also, You can book tickets 3 months in advance. For those riders who prefer to make the decision at the end, there is TATKAL which opens 5 days before the journey date and you can book these tickets as well in IRCTC Here comes the funny part. For those who a...

A great news for all those Indians in the world. The above three people has made us proud by winning medals in OLYMPICS 2008 in Beijing. Shooting - Gold - Abinav Bindra - Really a Great performance. Wrestling - Bronze - Sushil - A great news for all the wrestling fans watching TEN Sports in night ;) Boxing - Silver or Gold - Vijendar - Again a great performance from the youngster. Did anyone ever imagine we would get 3 (or more) medals in this Olympics? Certainly, there was no expectations from the people of India as they are used to Olympics news every four years. This three medals for India (though beyond expectation) is considerably very less compared to the whole population of 110 million people. There are so many youngsters waiting to be groomed and waiting to make our coutry proud. We should try and give training to those people and groom those young talent. Kudos to those who have made our country proud by winning a medal in Olympics. Let us expect our people to win more medals ...

This is the question that is in the mind of everyone who is having some Igate shares in his hand. I have been getting this query for the past few days from many sides. First, to make it clear, If you are selling it to the company @ the exit price, you are not going to pay STT (Service Transaction Tax) and there will be huge tax applicable. Case 1: If you are holding the shares for more than a year (Long term capital gains) - 20% on the profit as tax. Case 2: If you are holding the shares for less that a year (Short term capital gains) - 30% on the profit as tax. The better option is to sell directly in the market @ current market price. If you are selling directly in the market, the tax would be zero (Long term) or 15% (Short term). Note there might not be any brokerage if you are selling directly to the company but if you sell in the market there will be brokerage and STT. For those, who don't want/like to sell in the market for different reasons (Illiquidity, more profit), You wi...

Good News finally from the Budget of this year. our FM has reduced the tax we are paying by Rs.44000/- for people earning above Rs.5 Lakhs. The snippet on Income tax .., I propose to make some changes in the slabs for personal income tax. I propose to increase the threshold limit of exemption: In the case of all assesses, from Rs. 1,10,000 to Rs. 1,50,000, thus giving every assessee a relief at a minimum of Rs.4000/- Consequently, the four slabs and rates will be as follows: Upto Rs.1,50,000 - NIL 1,50,000 to 3,00,000 - 10% tax 3,00,000 to 5,00,000 - 20% tax Above 5,00,000 - 30% tax. Women Assessee - 1,45,000 to 1,80,000 -Minimum slab. Senior citizen - 1,85,000 to 2,25,000 - Minimum slab. The Income tax for almost everyone has been decreased at least to some extent after the budget. Here comes the bad news for short term traders/Speculators.(Investors?) Dividends that are distributed attract a tax of 15%. Short term capital gains attract a tax of 10% under Section111A. There is meri...