Madurai Money: Personal Finance - Investments - Shares - Savings - Credit Card etc.,

Wednesday, March 2, 2011

Invest in Gold every week or month - Madurai Finance

Considering the cost of Gold and Silver (every precious metal) is increasing, it is not a good way to go and buy gold in bulk. I will not have ability to purchase gold in one shot for many sovereigns. Because that is going to be very costly.

Instead, here is a strategy to accumulate more gold at home, without any strain to your pocket or wallet or bank account.

1) Set a day in a week or a month for purchase of gold.
2) Fix a reliable Gold Jewellery shop.
3) Enquire the return policy of gold in the jewellery shop and make sure they take back gold for the market rate and no commission out of it.
4) Purchase gold or silver periodically like 1 gram to 2 gram to 4 grams every period - say week or month, depending upon your capability.
5) Remember to buy only gold coin for this purpose, which is only 3% making charge (lowest) and 1% VAT. Prefer to pay in cash, so that you don't get 1% more for Card purchase.
6) Say for example - you buy 4 grams of gold every month OR 1 gram every week - you end up with 6 sovereigns of GOLD at the end of the year.
7) Cultural point - we associate our daughters with gold for some reason. Hence, when the child gets born, and you start doing this activity of purchasing gold in denominations, you end up with 120 sovereigns of gold by 20 years of your daughter's age!
8) In this, you don't have to worry about Gold price going down or going up. Your cost gets averaged and you don't get disturbed by any ups and downs. Mental peace and also you get the asset of GOLD, which is never changing and always increasing ASSET.

Isn't that amazing?

Labels: ,

Sunday, February 20, 2011

Sana Jobs and Career/Placement Consultants

Looking for a job? Looking for candidates for your job requirements in your company? We welcome calls from Employers and also from other Job Consultancies; Call 9629559591 or email your requirements to

Sana Jobs and Career/Placement Consultants

If you are a candidate and looking for a job, please email your resume to

OR if you are an employer and looking for candidates for your job requirements in your company? We work on a very economical commission charges, so please feel free to contact us for more details.

We welcome calls from Employers and also from other Job Consultancies with your requirements and we have the capability to find you right candidates; We are specialists in Tamil Nadu and rest of South India.

Call 9629559591 or email your requirements to is a jobs board exclusive for Tamil Nadu Jobs, as a project from Sana Jobs/Career and Placement Consultants.

No Registration!
No Fees! Completely FREE to use!!!
No Commitment!

Employers post the jobs easy and Candidates find the jobs based on category or by city very easily!!

All the jobs in Tamil Nadu are listed here - Jobs
in Tamil Nadu, Madurai, Coimbatore, Chennai, Tirunelveli, Tuticorin,
Salem, Erode, Kanyakumari, Karaikudi, Kodaikanal, Ooty, Thanjavur,
Tiruchirappalli, Trichy, Tuticorin and not limited to that we cover all of South India!!

If any questions or help, please email or contact 9629559591.



Saturday, July 19, 2008

feed the pig - about savings

Check out, which is an initiative by AICPA.

Good for all of us, in terms of financial health.


Saturday, October 20, 2007

Value Investing - Warren Buffet

Value Investing - Warren Buffet's Investment Approach:

Buffett's philosophy on business investing is a modification of the value investing approach of his mentor Benjamin Graham. Graham bought companies because they were cheap compared to their intrinsic value. He was of the belief that as long as the market undervalued them relative to their intrinsic value he was making a solid investment. He reasoned that the market will eventually realize it has undervalued the company and will correct its course regardless of what type of business the company was in. In addition he believes that the business has to have solid economics behind it. Buffett's investment style is also heavily influenced by Phil Fisher.

The following are some questions to determine what business to buy, based on the book Buffettology by Mary Buffett:

(1) Is the company in an industry with good economics, i.e., not an industry competing on price. Does the company have a consumer monopoly or brand name that commands loyalty? Can any company with an abundance of resources compete successfully with the company?

(2) Are the Owner Earnings on an upward trend with good and consistent margins?

(3) Is the debt-to-equity ratio low or is the earnings-to-debt ratio high, i.e. can the company repay debt even in years when earnings are lower than average?

(4) Does the company have high and consistent Returns on Invested Capital?

(5) Does the company retain earnings for growth?

The business should not have high maintenance cost of operations, high capital expenditure or investment cash outflow. This is not the same as investing to expand capacity.

(6) Does the company reinvest earnings in good business opportunities? Does management have a good track record of profiting from these investments?

(7) Is the company free to adjust prices for inflation?

Buffett also concentrates when to buy. He does not want to invest in businesses with indiscernible value. He will wait for market corrections or downturns to buy solid businesses at reasonable prices, since stock market downturns present buying opportunities.


Wednesday, September 19, 2007

What is Microfinance?

What is microfinance?

To most, microfinance means providing very poor families with very small loans (microcredit) to help them engage in productive activities or grow their tiny businesses. Over time, microfinance has come to include a broader range of services (credit, savings, insurance, etc.) as we have come to realize that the poor and the very poor who lack access to traditional formal financial institutions require a variety of financial products.

Microcredit came to prominence in the 1980s, although early experiments date back 30 years in Bangladesh, Brazil and a few other countries. The important difference of microcredit was that it avoided the pitfalls of an earlier generation of targeted development lending, by insisting on repayment, by charging interest rates that could cover the costs of credit delivery, and by focusing on client groups whose alternative source of credit was the informal sector. Emphasis shifted from rapid disbursement of subsidized loans to prop up targeted sectors towards the building up of local, sustainable institutions to serve the poor. Microcredit has largely been a private (non-profit) sector initiative that avoided becoming overtly political, and as a consequence, has outperformed virtually all other forms of development lending.

Traditionally, microfinance was focused on providing a very standardized credit product. The poor, just like anyone else, need a diverse range of financial instruments to be able to build assets, stabilize consumption and protect themselves against risks. Thus, we see a broadening of the concept of microfinance--our current challenge is to find efficient and reliable ways of providing a richer menu of microfinance products.



Tuesday, September 18, 2007

Different ways to claim Income Tax exemption under section 80(C) in India

Different ways to claim Income Tax exemption under section 80C in India

Following are the different items where you can invest to get a maximum deduction of 1 lakh u/s 80 C

1.LIC insurance premium (including payment made by govt employees to the central govt employees' insurance scheme and payment made by a person under children 's defered endowment assurance policy){subject to a maximum of 20% of sum assured}.

2.Amount deposited as term deposit for a period of 5 years or more accordance with a scheme framed by the govt (applicable from Assessment year 2007-2008).

3.Payment in respect of non-commutable Deffered annuity plan.

4.Any amount paid as tuition fee (not including any payment towards development fees/donation/payment of similar nature) whether at the time of admission or otherwise to any university/college/educational institutions in india for full time education.

5.Salary deducted by employer (incase of Govt employee).

6.Contribution to Statutory provident fund and RPF.

7.Contribution towards 15yrs PPF.

8.Contribution towards approved superannuation fund.

9.Subscription to National Savings Certificate VIII issue.

10.Contribution for participating in the ULIP of UTI.

11.Contribution for participating in the ULIP of LIC mutual fund.

12.Payment for notified annuity plan of LIC or any other insurer.

13.Subscription towards notified units of Mutual Fund or UTI.

14.Contribution to notified pension fund set up by Mutual fund or UTI (i.e retirement benefit pension fund of UTI).

15.Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.

16.Any sum paid as subscription to any scheme of
a> public sector company engaged in providing long term finance for purchase/construction of residential house in India.
b> housing board constituted in India for the purpose of planning, development or improvement of cities/towns.

17.Any amount towards the cost of purchase/construction of a residential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee's employer where such an employer is a public company/public sector company/university/co-operative... society).

18.Amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of amutual fund proceeds of which are utilised for the developing, maaintaining,etc of a new infrastructure facility.


Sunday, September 16, 2007

How important Insurance is in our financial portfolio

How important Insurance is in our financial portfolio?

If you are the bread-winner of your family, then you are, to some extent nothing but a "Money making machine" for ur family. You earn, and they live on it. And if something bad happens to you(be it death, disability due to sickness/accident), everybody will have to suffered. So, one should cover him/herself with sufficient life assurance professional agent's adv. is important according to ur need and size of ur pocket) to mitigate all the needs of the dependents. Life assurance is the "Base" of all savings and only this tool has ability to guarantee not only the future but generates a huge notional capital instantly. And to cover one, a tiny premium is just sufficient.

If u are thinking for a robust financial planning - Insure urself first. Every Financial Goal requires time, patience, regularity, wisdom and patience.


Saturday, September 15, 2007

Diversification in Investment


You can do several things to offset the impact of some types of risk. Diversifying your investment portfolio by selecting a variety of securities is one frequently used strategy. Done properly, diversification can reduce about 70% of the total risk of investing. Think about it. If you put all of your money in one place, your return will depend solely on the performance of that one investment. Alternatively, if you invest in several assets, your return will depend on an average of your various investment returns. Here are three basic ways to diversify your investments:

(1) By choosing securities from a variety of asset classes, e.g. a mix of stock, bonds, cash and real estate

(2) By choosing a variety of securities or funds within one asset class, e.g. stocks from large, medium, small and international companies in different industries

(3) By choosing a variety of maturity dates for fixed-income (bond) investments.

By diversifying, you won. t lose as much as if you invested in just one security right before its market value goes down. However, if the market goes straight up from the time you started, you won. t make as much in a divserified portfolio either. However, historically most people are concerned about protection from dramatic losses.


The Difference Between Saving and Investing

Difference Between Saving and Investing

Even though the words "saving" and "investing" are often used interchangeably, there are differences between the two.

Saving provides funds for emergencies and for making specific purchases in the relatively near future (usually three years or less). Safety of the principal and liquidity of the funds (ease of converting to cash) are important aspects of savings dollars. Because of these characteristics, savings dollars generally yield a low rate of return and do not maintain purchasing power.

Investing, on the other hand, focuses on increasing net worth and achieving long-term financial goals. Investing involves risk (of loss of principal) and is to be considered only after you have adequate savings.


Middle Class Salaried Investing in India

The following is an advice for middle class salaried person's investing plan...

The investment should be broadly in the following four categories

1. Savings for the future(LIC policy is a must)[30 %]

2. Mutual Funds (SIP =Systematic Investment plan is the best route to invest in mutual funds)[40%]

3. Direct Equities investment[15-20%]

4. Investment in gold is a really a good option since it appreciates with time for sure[10-15%]

% - % of your disposable income excluding your montlhy expenses.

Apart from LIC, you should also have medical insurance and general insurance to insure your immovable assets.


Friday, September 14, 2007

Term Life Insurance

Term Life Insurance Policy, India

Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy.

No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value.


Life Insurance Companies of India

Insurance Companies in India

Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insutrance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the Lic to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer.

Major Life insurance Companies in India are:

Aviva Life Insurance
Bajaj Allianz
Birla S un Life Insurance
HDFC Standard Life Insurance
ICICI Prudential
ING Vysya
Kotak Mahindra
Max New York Life Insurance
Metlife India Insurance
Reliance Life Insurance
SBI Life Insurance
Shriram Life Insurance
Tata AIG Life Insurance


Retirement in India - Pension Plan

A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years.

Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period.

Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the payments during the annuitant's lifetime.


Employee Provident Fund Organization, India

EPF and M.P Act 1952

The Employees' Provident Fund & MP Act,1952 is an important piece of Labour Welfare legislation enacted by the Parliament to provide social security benefits to the workers . At present , the Act and the Schemes framed there under provides for three types of benefits -Contributory Provident Fund , Pensionary benefits to the employees/ family members and the insurance cover to the members of the Provident Fund.

The object of the Act in 1952 was the institution of the compulsory contributory Provident Fund to the employees to which both the employee and the employer would contribute . The Employees' Provident Fund Scheme was accordingly framed under the Act and it came into effect from 1-11-1952 . Initally the title of the Act was , "The Provident Fund Act 1952".

On a review of the working of the scheme over the years , it was found that in the event of the premature death of the employees the accumulation in the Provident Fund were too meagre to the family of the deceased .Thus another social security benefit of providing Family Pension through the Employees' Family Pension Fund Scheme , 1971 was introduced by amending the Act . At this stage , the Act was renamed as "The Employees' Provident Fund & Family Pension Act , 1952" and the Employees' Family Pension Scheme came into force on 1-3-1971 .

The Act was further amended in the year 1976 to introduce another social security benefit to provide an insurance cover to the members of the Provident Fund in covered establishment . The Employees' Deposit Linked Insurance Scheme , 1976 came into force from 1-8-1976 . The name of the Act was then changed to the present one i.e. 'The Employees' Provident Fund & MP Act,1952' . From 16-11-1995 , the Employees' Pension Scheme has come into force which provides pension to retiring employees on reaching 50/58 years of age , widow pension , children pension and nominee pension on death of the member to his eligible family members . This replaces the Employees' Family Pension Scheme 1971 .

The provisions of the Employees' Provident Fund & MP Act , 1952 extends to whole of India except the State of Jammu & Kashmir and also the State of Sikkim where it has not been notified so far after its annexation with the Union of India .

The State Government of Jammu & Kashmir have instituted a seperate Provident Fund Scheme w.e.f. 1-6-1961 .

The Act initially applied to factories/establishments falling within six specified industries which had completed three years of existence and employed 50 or more persons. With effect from 31-12-1960 , the establishments employing 20 or more persons were also brought under the purview of the Act .

Under the infancy protection , the Act was not applicable for the establishment employing 50 or more persons , up to a period of three years from the date of set up . Infancy of five years was allowed in the case of establishment employing twenty or more persons but less than 50 persons .

With effect from 1-8-1988 , the Act is applicable to the establishment employing twenty or more persons on expiry of a period of three years from the date of set up . From 22-9-1997 this infancy of three years has been dispensed with and all the establishments employing 20 or more persons are brought under the purview of the Act from the very date of set up subject to fulfillment of other conditions . The provisions of the Act applies on its own force independently .

The Central Government has residual powers to apply this act to any establishment employing less than twenty employees . By virtue of these provisions , the Employees' Provident Fund Scheme has been extended to Cinema theaters employing five or more persons , w.e.f. 1-10-1984 . Also there is a provision for voluntary application of the Act to any establishment upon joint request from the employer and majority of its employees , to whom it does not apply otherwise . An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty .

The Act does not apply to certain establishments as specified under Section 16 of the Act .

The Employees' Provident Fund organisation came into being following enactment of the Employees' Provident Fund Act in the year 1952 . The funds established under the Act vests in and administered by Central Board of Trustees constituted by Central Government which functions subject to overall regulatory control of the Central Government .


At the inception of the scheme an employee who was in receipt of pay up to Rs.300/- p.m. , and who worked for one year was eligible for membership of the fund. As a result of amendments made from time to time , the conditions of eligibility for membership of the fund have been liberalised in favour of employee. Presently an employee at the time of joining the employment and getting wages upto Rs.6500/- is required to become a member. Now an employee is eligible for membership of fund from the very first date of joining a covered establishment.

The Act provides for :

-- grant of exemption from the operation of the scheme/s framed under the Act to an establishment , to a class of employees and to an individual employee , on certain conditions.

-- Penalties to employers/trustees of exempted Provident Fund who contravene the provision of the Act and the Scheme.

-- appointment of inspector to secure compliance under the Act and the Schemes framed there under.

-- mode of recovery of moneys due from employers.

Read more here about Employee Provident Funds


Great Small Savings Schemes - India


Small savings very powerful, even though there are various financial options for a small investor...

1. Public Provident Fund (PPF)

The PPF ranks as one of the most attractive schemes within the gamut of small savings. It presently offers a return of 8% pa and runs over a 15-Yr period. The scheme promotes regular savings by ensuring that contributions are made every year to keep the account active; these contributions can vary from Rs 500 to Rs 70,000 pa.

2. National Savings Certificate (NSC)

NSC is another attractive instrument offering a return of 8% pa. Investors are required to make a single deposit and the interest component is returned along with the principal amount on maturity. NSC has an edge over its peers on account of a relatively lower tenure i.e. 6 years.

3. Kisan Vikas Patra (KVP)

KVP falls under the category of small saving schemes which don't offer any benefits under the Income Tax Act. The scheme runs over a tenure of 8 years and 7 months (which is a fairly longish horizon) and doubles the amount invested. This makes the return one of the most attractive one amongst its peers.

4. Post Office Monthly Income Scheme (POMIS)

As the name suggests, this scheme provides monthly income (at 8% pa) to investors. On competition of 6 years, a 10% bonus on the principal sum is provided.

5. Post Office Time Deposits (POTD)

Post Office Time Deposits are essentially fixed deposits of varying tenures offered under the domain of small saving schemes. These deposits are available for periods ranging from 1 year to 5 years with the interest rates varying correspondingly. Interest payments are made annually. POTD have emerged as one of the most favoured instruments in recent times.

6. Senior Citizens Savings Scheme (SCSS)

The scheme has been reserved for citizens above 60 years of age, albeit citizens above 55 years can invest in the same subject to certain conditions being fulfilled. SCSS offers a return of 9% pa, making it a must have proposition for the target audience. The SCSS in tandem with the POMIS can prove to be a very lucrative option for senior citizens who need regular income without taking on any risk.


Small Savings Scheme in India



(1) To play a predominant role in inculcating the habit of Savings & Thrift among the General Public, Students, Employees in all Government & Private establishments.

(2) To implement Small Savings Schemes through Post offices and Banks.

(3) To mobilise Household Savings in the State for investment in infrastructure projects in the state.

(4) To appoint Small Savings agents both in urban and rural areas & to monitor their performance.

(5) To disseminate information about Small Savings to the nook and corner of the State through various media and to create awareness among the people.

(6) To implement & monitor special schemes of the Government of Tamilnadu like Incentive & Award schemes for Investors, Agents, Local bodies, Students, Institutions etc.


100% of the net collections under Small Savings is returned to the State by the Government of India as long term-soft loan. The long repayment schedule makes it an excellent resource of the State for investment in improvement /development of infrastructure like Power, Ports, Roads, Telecom facilities, Drinking water, Sewerage, Hospitals, Schools etc. In order to increase the resources, the State Government is taking all efforts to mobilise Savings.

In the present financial market,where a large number of private financial companies have disappeared, Small Savings offer the best and safest avenue of investment of household savings. Small Savings scrips not only yield high returns, but also are guaranteed by Government and thus completely secure.

The Directorate of Small Savings is mainly concerned with the promotion of various Small Savings Schemes formulated by Government of India. Small Savings Schemes are implemented through the Department of Posts, and 15 year Public Provident Fund Scheme is implemented through Head Post offices as well as Banks. Deposit Scheme for Retiring Government Employees /Deposit scheme for Retiring Public Sector Employees which also comes under Small Savings Schemes are implemented through State Bank of India in all District Head Quarters.

Small Savings constitute a major resource to execute welfare activities of the Government.

Read more in TN SMALL SAVINGS Dot Com


What does Piggy Bank mean?

A Piggy Bank is a storage container for coins, typically used by children to teach them lessons in saving. Some boxes have locks or need to be broken to allow the money to be removed, while others have keys or other locking mechanism meaning a parent has control on when it can be opened.

The typical sort of money box is a Piggy bank, a plastic, steel or porcelain pig shaped container.

You won't believe me - if you hear how the name piggy bank came into existence...

In Middle English, "pygg" referred to a type of clay used for making various household objects such as jars. People often saved money in kitchen pots and jars made of pygg, called "pygg jars". By the 18th Century, the spelling of "pygg" had changed and the term "pygg jar" had evolved to "pig bank."

This name may have caught on because the pig banks were mostly used by children, and the pig is a child-friendly shape that is easy to fashion out of clay. Once the meaning had transferred from the substance to the shape, piggy banks began to be made from other substances, including glass, plaster, and plastic.

Another reason for the name piggy bank that has been put forward is based upon the idea that the coins given to the piggy bank represent the food fed to a pig by the farmer. It costs the farmer money to feed the pig which he does not get back until the pig is slaughtered for the meat (represented by breaking the piggy bank) which the farmer can then sell.


Secrets of Successful Retirement

7 successful retirement secrets

1) Build social strong support
2) Renegotiate roles with spouses
3) Have a healthy spouse
4) Have something to do in the day to wakeup: job hobby activity anything
5) Cultivate physical and mental health. Live longer, better quality life
6) Have a strong financial plan: You do not want to outlive savings
7) Be happy! A positive outlook is healthy


Monday, September 10, 2007

What is the best way to invest Rs.1 Lakh and get good returns

Whats the best way to invest Rs.1 Lakh and get more money back than a fixed deposit or regular saving account?

Personally for me, I find that the fixed deposits and stock investments are good. Fixed Deposits are slow, but safe. Also there is risk in investing in stocks as they carry a lot of risk. But without a little bit of risk, no rewards, which is why I suggest you should get a mutual fund.

Mutual funds are a group of stocks picked by PROFESSIONAL money managers in which you or any other investor can buy. Because money from a lot of people are pooled together, you can afford to buy more stocks as a group than individually.

The good:- Professionals manage your money, so less worry for you.
- Most banks offer these, quite reliable
- You can pick which ones to invest in, some safer ones would be "banks, grocery stores, electrical companies, telephone companies,..." Places or services that you use on a daily basis
- Pretty good returns

The bad:- Like life, nothing is guaranteed, if someone guarantees you a return of 5%+ per annum, they are cheating you.


Sunday, September 9, 2007

Retirement Planning Calculator

It is very important to think about retirement in an early stage of our life.
We need to use the power of compound interest in order to grow your money with inflation and also with good returns.

There are various planning devices you could choose from -

Retirement planning calculator