Rule 1- Never Lose Money in Stock Market and Rule 2 -Don't forget Rule #1..Do you know how to select shares for investment ?

Many of us are busy in day today life and very few of them have real understanding of investing. We know investing could be of different types and could be done through different instruments / mode. However, the one we are going to talk about here is investing in shares or companies also popularly known as investing in stock or share market.

Investing in share market is considered to be confusing and risky for most of the people because of the complexity and fluctuation noted in returns. This I believe is because we don't really follow the right education of stock investing or stock/share selection before investing. This less knowledge creates doubt and anxiety which further leads to moving towards low return or highly safe return giving investment.

Through this blog I will try to cover few of the key points that may help you get educated on how to choose a good company for investment, however having a professional advice from your investment advisor will add further more value thereon.

Following points are some of the Warren Buffet (World's most successful and one of the richest Investor) advices which one can follow, which we will discuss in detail too: 

1. Invest in businesses having leaders with High Integrity and vision
2. Invest by facts not emotions 
3. Buy wonderful business - not cigar butts
4. Buy only those business / stock of business you understand/believe- also been told as Circle of Competence
5. Most IMPORTANTLY – “Be GREEDY when others are FEARFUL and FEARFUL when others are GREEDY” When you see great opportunity take it immediately.
6. Don’t sell unless the business fundamentally changes
7. Buy at price below intrinsic value- (Knowing about future by adding the discounted cash flows value)
8. Always choose company having competitive advantage- for example- companies which have high brand recognition- Jockey, Nike, fast food chain - McDonalds, KFC, these companies can still increase their sales or survive even in inflating economies or price increase.

 Now, let me try to cover each of these Warren Buffet advices in detail :-

 1.     Before you invest in any company and setting your expectation on returns and numbers or goals, do check at the integrity, background, history of promoter or leaders leading the company. This you can check by knowing them better. If you are fortunate enough to know them personally then you may just know about their character, history and commitment directly.

However most of the time, you don’t know the leaders or promoters every time – in such a scenario – you may check about them through different mediums like – Magazine, print/video interviews about their vision, internet, history of claims and achievements, director(s), management report published with auditor / financial reports etc.

 You should always choose to invest with the companies that is handled by leaders of high integrity, great track record, vision and achievements in past.

2.  Invest based on facts and not using your emotions- When I say fact -do check the fundamentals of company, numbers of company like profit and loss, promoter holding, past growth and future of company etc., important financial ratios to be analysed before investing and avoid flowing with emotions when it comes to investing or money.

Let me know in comment box if you like to know more about this will write another blog in detail covering this precious knowledge on investing.

3. Buy wonderful business - not cigar butts- following on above points – do not look for companies that are like cigar butts which doesn’t have any value or poor business or poor future, go and select only those companies which have wonderful past, present and future. Read more about the current and future trends of industry in which company operates to know possibility of increasing value of your investment.

4. Very Important - Be GREEDY when others are FEARFUL and FEARFUL when others are GREEDY-simply means become greedy when everyone is fearful and selling their stocks/shares, because this is the time when stock market is giving you the opportunity to buy stocks at very low or reasonable price.

Alternatively become fearful when everyone is greedy, this is the best time to book profit or do less purchase if you plan to hold for long time because now at this time market becomes -pricy. 

5. Warren says- don’t buy stock/shares of companies which you don’t understand. You should buy where you can relate and understand how it works and start with one that are directly related to your life. Like he himself in his initial days worked for Coca Cola and later on became the biggest investor and wealth maker through investment in Coca Cola only. This is also known as circle of competence – which relates with your circle of competence. 

6.  Don’t sell unless the business fundamentally changes, Here Warren Buffet says if you are sure of your investment – just don’t start selling your stocks due to some bad news in the market about the company. He further says- don’t sell your investment unless the logic at which you invested significantly changes, because otherwise you may end up making loss on your investment.

7.  In case your selected company shares is getting traded at a price which is below the intrinsic value, then it’s a good time to enter for investment or purchase this stock. Intrinsic value of shares is nothing but per value of shares calculated in present time based on future income of company. There are multiple ways to calculate Intrinsic value, but the most popular one is discounted cash flow approach.

8. Future is highly dynamic and it keeps changing, thus for investment check you choose company who can have competitive advantage in future or high brand value or companies with big distribution channel or entry business barrier for other companies. For example- companies which have high brand recognition- Jockey, Nike, fast food chain - McDonalds, KFC, these companies can still increase their sales or survive even in inflating economies or price increase.

Hope this article gives you basic understanding of investing and ideas on your investment thoughts. If you like the article – do like and comment to help me understand on your feedback and what else you would like to know on investing and money matters.

Best 11 Career Advices for Young professionals looking to make big in their Career

Best 11 Career Advices for Professionals in 2020

__________________________________________________________________

DUE TO COVID-19 lot of people have lost their job or work and lot of others are trying hard, by working late and long hours or taking risk of going out to work for themselves or for their employer.

Thus, it is very important for you also to plan your work, set some rules in your career to make it more successful, this either you include as rules / advice in your life or do read this on everyday basis to become successful. You may look to develop your own rules and advices also.

Also managing your career is a skill, this can be learned if you practice.

So here through this blog, I will be giving some of the career advices to all the professionals who are reading this article, who are either looking to start of their career after student life or they are just want to advance in their career or bring back their career on track.

Why you should listen my advices, because these advices I have learnt and practice over my 15 years of career working for top multinational companies at different levels within the organization.

So, I will be sharing and discussing in detail about 11 advices, which are as under:-

Advice #1 - Identify your Passion

Advice #2 - Working Hard but in right direction

Advice #3 - Learn to have patience and discipline in your work

Advice #4 - Learn to unlearn and learn new things which you don't know

Advice #5 - Failure and Mistakes are part of journey

Advice #6 - Develop your professional network

Advice #7 - Become a Problem solver

Advice #8 - Develop/Create a dream for yourself along with path to achieve

Advice #9- Don't worry for success

Advice #10 - Avoid Office Politics

Advice #11- Maintain High Integrity and Ethical life - BE IT PERSONAL OR PROFESSIONAL

You may click below You Tube video or click here

Why Rich are Getting Richer and Poor are getting Poorer

Why Rich are Getting Richer and Poor are getting Poorer

 

Since your childhood in Bollywood and general life, we have seen Rich is getting Richer and Poor getting Poorer.

Sometimes I used to think – why this is generally happens like this only. Then after some thinking I realized that Bollywood movie is the reflection of large population of society i.e. how they work, think and act in their personal and society.

Then this brought me to another thought it is also about the way people think and act on their thinking. Most of the people or I would say nearly 95%-98% population in this world don’t think in the direction of growth and those who think they don’t act accordingly.

Rich people and Poor People have two different extremes of population in our society. Only small percentage of population falls in rich or super rich category.

I have seen many people even after learning for many years, attaining college, professional degrees, don’t lead a luxury life. At prima facie seeing their life, cars, house– you might feel these people are rich, however on the contrary they were just meeting their needs and busy paying bills and debt.

Recently I was listening the audio book – Rich Dad and Poor Dad by Robert Kiyosaki, which I found very interesting and worth sharing some of the points here. So whatever you are going to read here is mostly thoughts and ideas that pushed me to share this information with all of you in my own words.

Rich people are rich because of the way they think and act, on events and situations happening around them, while poor thought is the first thing to make Poor more poorer. This article doesn’t says who is right or who is wrong, it only talks about how Rich becomes richer and Poor becomes poorer.

Following comparison is the quick thought – which will provoke you also to change your thought too and may help you become rich and richer too:-

 

1.   Poor man mentality teaches their kids to learn in school and college to get ready for good job and work for a good company, while Rich man would look to teach their kids to build businesses and create job or learn to takeover business.

 

2.   Poor person will say if I have worked for 20-25 years for the organization, I deserve retirement fund and will look for lazy solutions, while Rich will look for financial independence and would not look for dependence options controlled by others, government.

 

3.   Poor man thinks rich people should pay more taxes to support the under privileges and Rich people think paying taxes is like a punishment to produce more and giving to those who don’t make good amount of effort

 

4.   Poor Man thinks I can’t become rich because I have lot of responsibilities, kids and family which eventually becomes his reality, Rich man thinks and acts for phrase- I should be rich because I need to meet their needs.

 

5.   Poor Man mentality says- Love for Money is the only reason for all problems, Rich Man believes Lack of Money is the only reason for all problems.

 

6.   Poor mentality person –explains why he can’t afford, this shows Lazy attitude, while Rich mentality person says and find answer to how I can afford and teaches to kids too.

 

7.   Poor Person may say- do not discuss money at the table of dinner or lunch, Rich person encourage discussing topics like money making life easier.

 

8. Do you think your house is the biggest asset and largest Investment – then you could be in trouble says rich mentality person who thinks it is a liability.

 

9.   Money is not important to poor people is what he will repeat, Rich person mentality says Money is Power.

 

10. Poor teaches how to earn money, Rich person tells how money should earn for you.

 

11. Rich mentality person will say – considering yourself as poor is eternal while broken is a temporary which means rich person says he will not be poor always.

 

What will make you Rich then?

 

Money is Powerful but more than this knowledge of making money is more powerful. This could also be called as look for Financial Intelligence and not only academic, or professional knowledge, because this will help you and your kids, family lead much comfortable life.

Most people only talk and don’t do anything about it. People who are rich doesn’t mean they never failed, they failed but they never give up. They working on making their mental health strong, because strong mind leads to strong bank balance.

Don’t get pushed by life, rather look to win then looking for reasons to loose, learn to take risk.

Going to school or college is important to learn specific skill, so that they can contribute to their livelihood and society. However, lot of people consider this as last step to earn money while very few think this first step.

Lesson # 1- Rich don’t work for money

When you are young or have time, don’t waste your time to serve and earning money only, invest your time to learn how people make money. Some employee working with an employer never ask how he is making money or managing risk in his business and employee etc. All they ask is how they can get appraisal, do their job only etc.

Everyone wants to change others, don’t want to change themselves which is far easier and quit jobs searching for better paying job or better manager thinking this will solve the problem.

Learn how to have money work for you and not to quit when you fail.

Don’t become slave to MONEY and your pay cycles. If you choose to work for money then life will become terrible and this is how most of the employee feels when they see their checks.

Government takes revenue from you in the form of taxes, and it is poor people who have to pay more than those who make more and they become richer.

 

Lesson # 2- Learn to control your desire and stay away from this trap

Don’t become slave of your desire, fear to loose money, because lot of people who are rich are more concerned and worried to maintain their status and they become part of this trap and work harder and harder to maintain their current status of life.

Learning to have ignorance also is important so that you don’t become part of trap created by emotions, fear of not able to pay bills, or desires, greed because with money increasing desire will also start increasing with a big speed leading to unwanted spending.

Choosing our thought is very important to become rich, instead getting driven by emotions is important rather than reacting to your fear, money or job loss.

Lesson # 3- Learn to work for your dream for free

When you work for a fixed monthly or weekly salary, you become slave of that frequency and amount you are expecting and you would like to work only for that amount. Waking up in the middle of night you have to pay bills, is terrified situation, don’t let money run your life.

Sometimes working for free dedicatedly will help you learn the business and work better and will open up your mind for all other different avenues of business too. Because then you will see opportunities what others can’t see.

Job is always a short term answer for long term problems discussed above.

Conclusion

Friends, there is a lot to learn on this topic, however to conclude for now-please understand to become rich the first thing you have to do is learn to have financial intelligence, change the way you think about money, you want to work for paycheck given every month or look for much bigger picture. Take steps to learn how money will work for you instead you working for money.

Do let me know about your experience reading this article by commenting below and if you liked this information, don’t forget to hare the article with your friends and loved one.

What are top 10 Long Term Investment Options in India for me ? Part # 2 of 2

You also took time to become STRONG,

Give time to Your INVESTMENT also to GROW STRONG…

Part – II of Top 10 Long Term Investment Options

Continued from Part –I, click Part I for learning more

Here we will discuss following Long term investment options:-

1.   Mutual Funds- Debt or Equity

2.   Direct Investment in equity shares of company

3.   Real Estate

4.   Government Bonds

5.   Investment in Gold

6.   Fixed Deposit in Bank account

7.   SCSS –Senior Citizens’ Saving Scheme

Follow my next blog where we will discuss other Long term investment options

Mutual Funds (MF) Investment – Debt or Equity

Mutual Fund is another popular type of investment option which is getting popular at very fast pace. Indian Mutual Fund industry as on 30 Jun 20 stands at Rs. 26 trillion i.e. 26 Lakhs crore which in comparison to US Mutual Fund industry is still small which stands at $ 2.2 trillion.

Generally Mutual Fund are subjected to market risk, which means the investment is done in the open market to make returns for the Mutual fund investor and Asset management company managing the mutual fund.

Q- Who should invest in Mutual Funds?

A- Usually this investment is good for long term investor, having moderate risk appetite and looking for investment returns better than Fixed Deposit or government bonds but less risk in comparison to direct investment in stocks.

Q- Why someone should invest in Mutual Fund?

A- Mutual fund are good mode of investment because it gives flexibility to investor to enter the investment at lower amount, and exit. Mutual fund also gives you the choice in the type of fund you want to invest. There are different types of funds in the market ranging from size (Small Cap, Mid, Large Cap) to class (Bluechip etc.) to risk category etc.

Q- What is the Tenure of Investment?

A- Some of the Mutual Fund that has tax benefit has minimum lock-in period of 3 years and other mutual fund can be remain invested till they continue or invested money is not withdrawn. Here, it is important to note, most of the mutual fund have exit load of 1% as deduction if you move out before end of 1 year from investment.

Q- Amount of Investment?

A-  Most of the Mutual fund can be started with a minimum investment required is Rs. 500/- and usually no limit on maximum amount. Person interest in MF investment can opt for weekly or monthly Systematic investment plan (SIP) or System Withdrawal Plan (SWP) depending upon the need of business.

Q- What is the rate of return earned by Mutual Fund investment?

A- The rate of return earned by Mutual Fund scheme depends on how well the fund is managed by Fund Manager investing in market and scheme selected or it belongs like Debt or Equity or balanced etc. Debt Mutual Fund can reap return of about 6.5%-8% p.a. while equity mutual fund can reap out a return of 10%-15% per annum basis.

Q- Where I can go for investing into MF?

A- One can do it both online and offline, but the most prefer way to start is Online. Now there are lot of broker there which are affiliated with NSE or BSE. One may choose to invest directly or with GROWW app which also facilitate direct MF investing. Otherwise if someone needs guidance also, there one can choose broker like Sharekhan, Zerodha etc.

Q- Is there any tax benefit available investment or return of MF?

A- The person investing in ELSS fund are exempted from tax subject to the conditions as specified, however if you make a short term or long term gains, all that shall be treated same as other gains are treated under income tax act.

For more information on Mutual Fund check this link- https://charteredadvice.blogspot.com/2018/07/mutual-fund-hai-to-sahi-hai-start-as.html

Direct Investment in equity shares of company

Direct investment in equity shares of company is also an option for lot of investor especially for those who are looking for big value at the end of investment term. Since this investment comes with high risk, thus expected returns can also vary significantly from extreme negatives to highly positive gains.

This investment is more suitable to those who are looking for very long term investment i.e. 10 to 15 years and have patience to ignore negative trends and sail through the ups and down of stock market. One should be able to wait for positive trends in market.

Here investor need to be very cautious and alert, either he should understand and invest in right stock or good/great companies or follow expert stock market advice.

To address this concern one should read and understand the stock more before investing or go with reliable consistent bluechip companies only.

However suggestion here is – investor should not park all the money in one basket i.e. one stock or direct shares, especially when you don’t understand stock market well, because at times investment value could show negative results also. However still lot of people make lot of returns in long run when they invest direct in strong companies.

Also read this blog for more information on Stock Market how volatile it could - https://charteredadvice.blogspot.com/2020/07/How-to-Become-Crorepati.html

                                         Real Estate

Real Estate is also very popular in India, especially with those who have large amount of money to invest in and remain invested for long run. This investment option is good for those looking for long term capital gain or some amount of recurring rental incomes.

Now a days – investor can earn returns by become owner of commercial property but not doing business there. In this concept a piece of large space in commercial building is sold to multiple investor, which later on given to big investor or commercial shop owner like Big Bazar, PVR, or a big corporate etc. who in return pays rent to builder and builder pays to owner as per the agreed terms or after taking his share. This concept is popularly known as Virtual Space.

Usual before Covid-19 the expected rate of return on residential property was approximately 4% p.a. and commercial property could fetch you 8% p.a. on amount invested. However after demonetization and RERA property regulation act enacted by Indian government, this sector has become less attractive. Now other than tangible feeling of having a property, capital gain is not that lucrative now. May be again in future it becomes more

However, in some place Land or luxury projects on outskirts are still lucrative option. 

Government Bonds

Government bonds are issued by central or state government and much safer option from safety perspective. It is like giving debt given to government or may be called a Debt Instrument.

Usually Government Issue these bonds to get more money in their hand when state or central government is running through crisis and looking to build better road network, bridges or other needs of public.

There is coupon or interest rate declared by government on these bonds, which is paid by government to public investing with them. The tenure of these bonds could be 5 to 10 years usually carrying 7% - 8%.

Since the returns could be fixed and floating therefore one should check the scheme of return and liquidity before investment.

Gold

Gold is the oldest mode of investment in India and popular among household. It is a yellow shining metal which usually goes up in the price when share market is falling and used against hedge. However now a days with GOLD ETF option made available in the market, which in turn gets invested in gold only- you need not to invest in physical gold.

With ETF option you can buy it electronically and no risk of damage or theft.

Fixed Deposit in Bank account

It is an investment instrument which gives you fixed amount of interest after term ends. But not a preferred mode of investment because of rising inflation rate and tax on return. This means your return becomes negative due to inflation and tax applied on return.

Invest only where you don’t want to take any risk and looking for safety of your capital / principal amount.

Senior Citizens’ Saving Scheme

SCSS investment instrument is sponsored by government of India for senior citizen aged 60 years or above only. The main objective of this scheme is to provide social and financial security to retirees in terms of ensuring a regular flow of income.

Though this scheme is applicable to individual retirees who are Indian citizen having an age of 60 and above but this has an exception also, like individuals having an age ranging from 55-60 taken voluntary retirement scheme or superannuation and they apply for SCSS within 1 month of gaining retirement benefits. Retired defence personnel can also avail this scheme anytime, subject to other requirements.

·         Minimum deposit required to start is Rs.1000

·         Due to Covid-19 Interest income for Q1 FY 2020-21 reduced to 7.4% annually, earlier it was 8.3% - 8.7% per annum.

·         Returns on investment is guaranteed and received on a quarterly basis in the saving account as a simple interest method i.e. Principal amount * rate of interest applied for quarter. Rs. 1 lac should give Rs.1850 quarterly interest.

·         Tax benefits are available on investment under section 80C of Income tax act

·         Interest income earned above Rs. 50,000 is taxed

Thanks for reading and I hope you must have learnt something new. For any query or question, please comment and I shall try to answer.

What are top 10 Long Term Investment Options in India for me ? Part # 1 of 2

Long Term Investment need time to Grow - CharteredAdvice.blogspot.com

You also took time to GROW STRONG,

Give time to Your INVESTMENT also to GROW STRONG…

What are the best Long Term Investment Options in India? This is the basic question asked by lot of people in India looking either for tax saving, retirement benefits, insurance coverages or future goals like higher studies of children, girl marriage etc.

 

Lot of time my friends, colleagues and relatives do call me asking what long term investment options are available to them in India and where they can invest to meet future requirements.

 

There are plenty of long term investment choices available and each have different expected rate of return and features. There is nothing called as best investment option, because every investment option meets one or other different need and come with different risk and liquidity also.

 

However, one wrong decision could result frustration in future. Therefore, you should evaluate the following top 10 options in detail before you invest.

 

Here is the list of top 10 options available which we shall be discussing in detail one by one:-

 

1.Public Provident Fund

2.National Pension Scheme

3.Sukanya Samriddhi Scheme- for girls/daughters only

4.Mutual Funds- Debt or Equity

5.Direct Investment in equity shares of company

6.Real Estate

7.Government Bonds

8.Gold

9.SCSS –

10.Fixed Deposit in Bank account

 

 

Public Provident Fund (PPF)

 

This is the most commonly used name when it comes to long term investment. You must have heard about this name from your elders, parents and at the time of submitting tax proofs.

 

Q- Who should invest in PPF?

 

A- Usually this investment is good for long term investor, having low risk appetite and looking for reasonably safe investment returns and good for retirement benefits where you do not want to take any risk on financial needs.

 

Q- Why someone should invest in PPF?

 

A- This plan is created and mandated by government thus backed with guaranteed returns thereon. In my belief this investment should be done by high risk profile individuals also, to stabilize their portfolio.

 

Q- What is the Tenure of Investment?

 

A- The minimum lock-in period for this investment plan is 15 years, before which you may not be able to withdraw the complete money.

 

Q- Amount of Investment?

 

A-Minimum investment required is Rs. 500/- and a maximum of Rs. 1.50 lakhs can be invested annually in a year. You may decide the frequency of this investment also i.e. lumpsum or monthly or different intervals as may be suitable keeping the limit in mind. If you invest less than Rs. 500 a year – there could be some penalty applied on your account.

 

Q- What is the rate of return decided for PPF?

 

A- The rate of return decided for PPF by government is 7.1% as applicable from 1 July 20, earlier it use to be higher.

 

Q- Where I can go for investing into PPF and what are other benefits?

 

A- One may choose to go to any bank SBI, ICICI or post office and you may use this account to obtain loan also, for more procedural information forms and other formalities you may check with the bank. Now days with

 

Q- Is there any tax on investment or return of PPF?

 

A- Nil, exempted from tax, rather gives you a benefit under Income Tax Act. You can claim deduction if you have invested in PPF as per the running income tax provisions.

 

 

National Pension Scheme (NPS)

 

NPS is a defined contribution plan which means in this scheme a defined contribution is made to the fund. But it is not same as PPF where investment is made on a regular basis to earn interest to be withdrawn at later stage. NPS has two types – Tier I having pension option and Tier II with flexible withdrawal options along with pension.

 

This scheme is popular among individuals who are looking for extra tax saving at early life stage and for pension income post-retirement.

 

Q- Who should invest in NPS?

 

A- Any person looking for additional tax saving and pension income after retirement.

 

Q- Why someone should invest in NPS?

 

A- This investment gives is better than FD or PPF and less risky than share market stock

 

Q- What is the Tenure of Investment?

 

A- Here you start investing as soon as you become 18+ and remain invested till 60 years of life, after that you can withdraw 60% of corpus tax free and remaining stay there for pension income.

 

Q- Amount of Investment?

 

B-There is no maximum limit on investment in NPS but minimum Rs 1,000 investment per annum is required to keep the NPS account active.

 

Q- What is the rate of return decided for PPF?

 

A- In my understanding, the expected rate of return to be earned on NPS is 7.1%, because of the nature of investment done under NPS.

 

Q- Where I can go for investing into NPS and what are other benefits?

 

A- NPS account can be opened both online and offline process. Offline- Bank or Post office. For Online check

 

Q- Is there any tax on investment or return of NPS?

 

A- Tax depends on the event of withdrawal of NPS amount, for instance, at retirement (40% is exempt), pre-retirement (annuity taxed in the year of receipt) and at death of subscriber to NPS account holder (no tax). However partial withdrawal (as specified in the conditions) are exempt from tax.

 

 

Sukanya Samriddhi Yojana (SSY)

 

In India due to rising sex ratio gap, girl education and girl marriage, Sukanya Samriddhi Yojana was started by Indian government to support parents of girl child and give additional benefit to girl child who is an Indian resident.

 

Q- Who should invest in Sukanya Samriddhi Account (SSA)?

 

A-Parents of a girl child can open SSY account with SBI, post office or other bank as may be designated by government for this. Here parent of girl child has to share the documentary proof of girl child, and PAN, residence proof, Aadhar of parents to open this account or other document as may be requested by bank / PO.

 

B-Girl child who has not attained an age of 10 years, there guardian / parent / child anyone can contributed. After 18 years this account is necessarily be maintained by girl only.

 

Q- What is the Minimum and maximum amount has to be deposited.

 

A- Rs. 250 and maximum of Rs. 1,50,000 per annum upto 15 years.

 

Q- What is the % Return on deposit made to this account.

 

A-The rate of interest for the 1st quarter of FY 2020-2021 i.e. 1 April 2020 to 30 June 2020 is 7.6% p.a.

B-No interest is paid once tenure is completed of SSA, i.e after 21 years from account opening or girl child happens to become non-citizen / Non-resident of India.

 

Q- When and how the account gets closed ?

 

A-Account matures after 21 years and balance in SSA is withdrawn using bank/PO specified application and documents thereon.

B-Premature withdrawal is allowed only in specific cases –

a.marriage time of girl (18+)

b.death of girl on submission of document

c.deemed closure –like girl becomes NRI or non-citizen etc.

d.Specific hardship of parents in depositing money i.e. after 5 years.

C-Withdrawal in other cases is subjected to 50% and meeting education requirements only i.e. for 10

For next part please click @ https://charteredadvice.blogspot.com/2020/07/what-are-top-10-long-term-investment-by-Chartered-Accountant.html

Best ideas for a startup, but is it idea or implementation or something else ?

"Think Big, Think Fast and Think Ahead, Ideas are no one's monopoly"

Startup Idea

Hi Friends, I also have a startup idea and it is no less than Flipkart or Byjus or Uber or Bookmyshow or any other multi-billion start up idea. But all ideas after few days and months of motivation goes into the dustbin.

With my experience and talking to people, lot of times, I have seen a group of friends or bunch of people having same thoughts and aspiration, who are discussing long hours on creating business idea that would change the way businesses are done in the country or world while making tons of money through their startup.

However, the unfortunate reality of these startups is they don’t survive for long, either due to lack of motivation, effort, money or they get death because of their own Karma like due to less preparations or eventually left in between.

Do you also have any great idea on Startups?

Usually ideas are available or already known to many people, what is not known is the implementation or knowledge of converting that idea into real successful business.

Every time when I also thought of converting an idea into reality, I thought of validating my business thought with others. But during this process I noticed that most of the people already knew at least little bit about the same or have heard similar idea otherwise also or some of them knew they required this idea from long time or they have already tried working something like this but couldn’t do it because of one or the other issue.

Then before you gets excited and act on such ideas- think again, is it an idea that matters more or implementation or idea with right implementation.

So, here this idea implementation may have lot of steps like understanding the dynamics of idea, feasibility, if feasible then resources required, planning, testing the idea at less cost, implementation of idea and most important learning to survive through the ups-and-down of startup journey.

Here, one should understand when it comes to Entrepreneurship, it is 99% of execution and only 1% of idea.

How to think a viable idea for startup?

It is not necessary only big idea or idea coming from big meeting rooms only becomes successful.

Idea should be something that solves a problem, and idea is big when it solves a bigger problem. I believe solving a bigger problem brings bigger returns to community and entrepreneur. However still some of the ideas fails even after having all the good features associated with them. For instance – Windows Phone, Good product, display, interface but still failed due to better ideas and innovative products available in market like Android, and IOS.

Check if you can develop a web portal where you can post details about your product or ideas or offerings are posted. You may also choose to use your personal networks or social media to gather inputs to know the possibilities of idea becoming successful. Just be sure your file for a patent, trademark or copyright before showing the world your idea!

Finally, obtaining advice from industry leaders or investors who have successful experience in bringing products and ideas to market. So to make Startup successful - you will need huge amount of passion to make it successful, along with right advice, implementation and fund to support your working capital and capex requirements.

Is Indian government supporting startup industry?

Since BJP led Modi government has come into the picture, government has taken many steps to support and back startup industry. The purpose is to boost new startups and encourage innovation among those who are keen getting into entrepreneurship.

This initiative was called Startup India which was first announced by Indian Prime Minister Mr. Narendra Modi while addressing the nation on 15 Aug 2015. This campaign got launched on 16 Jan 2016.

Purpose of this initiative:-

Government of India has set up an action plan that looks to address all aspects of the Startup. With this Action Plan the Government hopes to accelerate spreading of the Startup movement not only in the field of digital world, technology but also like to cover areas including agriculture, manufacturing, health care, society, education etc.

The Action Plan is divided across the following areas:

• Simplification and Handholding
• Basically simplifying the compliances for startups, no inspections for first 3 years
• To simplify keeping only one startup India hub to facilitate exchange of ideas and access of funds for new startup founders.
• Creating mobile app and portal for transparent and quick information made available by government
• Legal support is provided by government subject to meeting the conditions and performance eligibility
• Under winding up, creating an easy fast track exit, as per the recently tabled Insolvency and Bankruptcy Bill 2015

·         Funding Support and Incentives

• Government shall help fund the startups
• Credit guarantee given
• No tax on capital gain if they have invested such capital gains in the Fund of Funds recognized by the Government
• Tax Exemption to Startups for 3 years and investment done above FMV
• Industry-Academia Partnership and Incubation- this is also to promote ecosystem of startups in India.

For more detail review the website, click the link- https://www.startupindia.gov.in/

How to scale the startup?

Scaling up the business or startup is one of the most difficult task for any entrepreneur as it requires huge amount of right planning, effort and execution of such plans. To scale up the businesses it is highly important to standardize the processes across the company and outlet to bring uniformity in quality of products and services.

Before one go for scaling of startup, ensure you know the answers for the following:-

1.      Is your idea scalable? If Yes, then only go for scalability.

2.      Discuss your plan with investors, and mentors of industry in case you have any, and read the market availability for your product.

3.      Ensure you and your team have clear understanding on scaling the operations, because this is also true most of the businesses either burn their hands in this process or gaps in process makes it ineffective. See your plan is Fool-Proof.

4.      Check you have all the resources as may be required to scale

5.      Create a hype and use marketing team effectively even before you launch or reach larger audience.

6.      Standardized different SOPs, team trainings and materials, look for automation to avoid errors, create detailed flowcharts to understand and map risk and controls in processes.

7.      Being a startup you can’t afford to in-house the non-core and unessential services, simply outsource and focus on your core.

8.      Continuously follow and improve on your social media feedback or direct feedbacks.

9.      Make good team – offer share in equity or business instead of salaries.

Important note- scalability of business means you are trying to take a big step towards your big dream.

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