Droplet Wealth

C lick here to read in Tamil We know so many people that have a home loan. How much ever they try to, they still pay a minimum of 40% to 90% of principal as Interest to the lender. We delved about this and wanted to give our readers a plan that helps them reclaim the interest portion.  We have normally noticed that most of the home bought are about 40 lacs. WIth 20% down payment, the loan amount comes to 32 lacs. On a loan taken for 15 years at 8.6%, the EMI works out to be INR 31,700. If the loan is duly completed in 15 years, the total interest paid is 25 lacs. Now we have to do plan to get this 25 lacs back.   But the plan is good only if there is no extra payout that the borrower has to make. So we suggest that you extend the loan tenure to 20 years. This will save you 3,700 per month in EMI. Next, Invest the EMI savings in a good equity fund for 20 years. Let's see what happens now.  As one can see by simply managing one's investme...

Now, those of you who read the title and thought you already knew this and hence you are right, you are wrong. Those of you who think the title is wrong, you are still wrong. So what is right then? You have come this far, so read on...   We were meeting one of our clients and they were really excited about getting their financial planning in place. With usual questions of what would happen to their money in case the Markets fall among others, the meeting went well. We thought we did a good job of enlightening this couple. Just then the bomb dropped- the bomb being a Question -  "What if I suddenly want to take my money out?"  All the enlightenment down the drain it went...  The first time investors, please note that in case you are investing in markets thinking that you will be rich overnight. Forget it, cos If you were that lucky, You would have been already married to Isha! But you are only as lucky as reading this blog ;)  Below is the check...

                                          In the earlier blog , we saw that share price of a company is the function of the Profits that the company makes and the no of equity shares it has. Lower Equity shares and higher profits would mean a very high share price (MRF, EIcher Motors) and vice versa.  As simple as it can get.  Now we will see why the share price goes up and down putting its holders on a roller coaster, a ride that not many are adept handling.   As said earlier, If a company is earning 10 per share and an investor is ready to pay 10 times its earnings ( i.e.,) then the share price will work out to be 100. But World and life is not so simple and as are markets. Life, world and markets are all built on hopes. Hope that tomorrow will be better than today, hope that one's view of things will be win over other's view of same thing. Lets look at ho...

                       Nothing gives you more joy than doing you what you love to do. The joy increases many-fold when people follow up on you to do the most lovable thing you do! You feel special. Last week, We missed to publish our blog. That's when we realized that "Silence is louder than noise". This time our silence was returned by noise of our beloved readers asking - " Where is this week's blog? Did you forget to it share with me? " When the noise is made by readers that counts upwards of 10,000, the Love is "heart-deafening", we should tell you. Before I move on, thanks to everyone of the 10,000 readers for following us and supporting our "Droplet" like small venture.  More than this, there are couple of friends who ping us to check whether the blog is up for the week and few go an extra mile by providing unbiased view of the blog, You guys are fantastic!  Whats up for this week then -  Sticking...

The Price of 1 share of MRF is Rs 76,650 The Price of 1 Share of Eicher Motors is Rs 27,000 The Price of 1 share of  Maruti Suzuki is Rs 9,300 The Price of  1 share of TVS Srichakra is Rs 3031 The Price of 1 Share of Colgate is Rs 1100  The Price of 1 share of State Bank of India is Rs 260  What does all this mean?  As indicated by Share Price alone  Does it mean that MRF is costly and Maruti is cheaper?  Does this mean that State Bank of India is smaller than Maruti?                          The share price is face of the share market. Share price is the first thing that anybody who comes to stock markets sees first. This person may not know anything about the Stock markets, He -may not know Market Capitalization, may not know Gross Profit Margins, may not know bottom line, may not know top line but he will know the Price of most of these shares.  ...

                                           In the two episodes of Wealth Creators so far we have seen how a IT behemoth made huge wealth even for novices like us. Then we followed it up with a Paint company that gave humongous   returns to its investors. This week again we will look at a similar business that is so common and famous yet made gargantuan wealth for its investors. Just to not bore you with numbers all the time and to flaunt our vocabulary, lets now look at the return that these companies have made in English! Yes in English!  But before we go on and get to know what the company is, let us 1st reveal a secret about great companies, It is their promoters. The success or the failure of the companies is highly tied to its promoters. Promoters are generally the Owners of the business and also often times the majority stake holders. Promoter...

                                  We are here to help your money make more money. But can money make more money all by itself? No, It can never, the world never runs on auto mode, you need somebody to run it all the time. So who is going to make your money work harder so that it makes you more money? It is, of course you!   So today we are going to teach you a very simple and very easy way to make a 18% return on your money.  But before that lets understand what a 18% return on money would do your wealth.  Basically you are paying yourself 13 months salary in a 12 month year, good to have extra month salary without actually "working" for it right?  If you are wondering that next we will ask you to invest in equities, no we are not! Remember we told very simple & easy? Equities are not so simple/easy, there are labors of pain you have to go through before equities mak...