November 2002 - I boarded the train from Mumbai to Pune to take up my first job. Net income was Rs 15,000/- We were working in one of the top IT service companies and quite excited. I used to meticulously write my expenses on daily basis. Very soon, I had made some good friends. I was eating out regularly. There was one late night movie every week, parties during the week.
One of the risks that recently have been talk of the town are geographical risks . Despite the world which is so interconnected now and any event has repercussions across the world, there are still inherent geographical risks which are local .
US Economy US economy is the largest and most important in the world. US economy represents about 20% of total global output . US economy features a highly developed and technologically advanced services sector .
Mutual funds can be categorized into two types of funds :
Active Funds In active funds , we have an experienced fund manager and a management team to make decisions on the amount collected from investors. For example, Mirae Asset Large Cap Fund - Fund Manager - Gaurav Misra & Harshad Borawake Parag Parikh Long Term Equity Fund - Fund Manager - Rajeev Thakkar & Raj Mehta Passive Funds In passive funds, they follow a market index and do not have a fund manager who actively manages the portfolio.
Debt Mutual Funds When we buy a house loan from bank,
Bank provides us money We need to return the money after fixed number of years Bank charges a fixed interest rate for the money that it has lent However, we also lend money to banks. In case of a fixed deposit, we lend money to the bank.
In FD’s, you would see a similar resemblance as that of a house loan:
PPF Benefits 1. Loan against PPF If you take a loan against your PPF, this is 1% above the interest that you get in your PPF account. This has been reduced from 2% to 1%.
Interest is levied from 1st day of the month in which loan is taken to the last day of the month in which last installment is paid
2. Premature closure of PPF account If you would want to close your PPF account prematurely, you need to fill Form 5 for this.
