Friday, August 3, 2018

Different Types of Wills :

Will is termed as the legal declaration of a person’s intention that he wishes to be performed after his death. When once the Will is made by the testator it will be revoked during his lifetime. A person cannot offer his ancestors property in the form of a Will. But he will be able to make a Will only of his Self-Acquired property.

One can define WILL as...

Written document (testament) by which a person (the testator) directs how his or her assets (estate) are to be distributed upon death. Among other provisions, a will may appoint executors to administer the estate, name guardian for a child, and/or make arrangement for payment of obligations. Commonly, the law requires that the testator must have testamentary capacity when making the will, and that it be witnessed by two or more credible witnesses. It is not always necessary, however, that the will bears the signature of the testator. Someone else may sign it on behalf of, and in the presence of, the testator and a required number of witnesses.

Types of will :

Unprivileged Will

A Will which is created by a person who is not a soldier employed in an expedition or has engaged in actual warfare or a mariner at sea is known as an unprivileged Will. For an unprivileged Will to be valid, it is compulsory in satisfying certain conditions. The person who creates the Will need to sign or affix his/her mark in the Will.

Privileged Wills

Privileged Wills are those Wills that will be in writing from or has been made by word of mouth by those in active services like a soldier, airman or sailor. The validity of a privileged Will in terms of legal terms has been reduced to allow certain persons to quickly make a Will.

Sham Wills

Sham Wills are those wills that are executed purporting to be a Will, but will be invalid as the testator does not have the intention to execute his/her wishes. As per the Indian Succession Act, a Will that is made by fraud or by taking away the free agency of the testator is considered invalid.

Joint Wills

A Joint Will is an instrument in which two or more persons agree to make a conjoint Will. When a Will is joint and is intended to take the effect after the death of both, it will not be enforceable during the life time of either. Joint Wills need revocable at any time by either of the testators during their joint lives, or after the death of one, by the survivor.

Duplicate Wills

A testator, for the sake of safety, may make a Will in duplicate, one to be kept by him and the other to be deposited in the safe safekeeping with a bank or executor or trustee. If the testator mutilates or destroys the one which is in his custody it is revocation of both.

Conditional or Contingent Wills

A Will is expressed to take the effect only in the event of the happening of some contingency or condition. If the contingency will not happen or the conditions will fail, then the Will is not legally enforceable.

Concurrent Wills

Normally, a man has to leave only one Will at the time of his death. But for the sake of convenience, a testator need to dispose of properties in one country by one Will and the other properties in another country by the separate will. They are concurrent Wills.

Mutual Wills

For a Mutual Will, the testators will be consulting each other reciprocal benefits. A mutual Will has to be executed by the husband and wife, in their lifetime for passing all benefits to the other person during their lifetime.

Holograph Wills

A holographic will is a will that has been entirely handwritten and signed by the testator. A will need to be signed by the witnesses attesting for the validity of the testator's signature and intent. But in most of the jurisdictions, holographic wills, it will not be witnessed are treated equally to witnessed wills and need only to meet the minimal requirements which is to be probated.Written document (testament) by which a person (the testator) directs how his or her assets (estate) are to be distributed upon death. Among other provisions, a will may appoint executors to administer the estate, name guardian for a child, and/or make arrangement for payment of obligations. Commonly, the law requires that the testator must have testamentary capacity when making the will, and that it be witnessed by two or more credible witnesses. It is not always necessary, however, that the will bears the signature of the testator. Someone else may sign it on behalf of, and in the presence of, the testator and a required number of witnesses.

Source : Forwaded

Sunday, June 17, 2018

Believe in india's growth story..

Fwd as received on Whatsapp :

Dear Investor

India, as an Investor, has just learned to invest in Equity and Mutual Fund. But, I always find that we, Indian Investors, are very skeptical of our country's progress. With slight negative news or by few percentage market decline, we start worrying about our Investment.

That is one of the reason, foreigners have made tons of money from our stock market and and lot lot more than Indian Investors. They are very confident of our country's growth prospects.

Let's look at Multinational Companies Investment in India.

Amazon has spent most out of Rs. 35000 crores earmarked for India, has also announced to spend additional 12000 crores to defy competition. Amazon's spending in India caused Amazon USA to report losses in USA. Amazon has such a high conviction in India story.

Walmart, seeing Amazon's growth, trying to buy major stake in Flipkart, that will result in to Investment of close to Rs. 70000- 80000 crores in India story.

Japan's SoftBank declared in 2014 that it will invest close to Rs. 65000 crores in Indian market by 2024. In April 2018, SoftBank said it has already invested Rs. 52000 crores in India now and will complete target by 2022 instead of 2024.

Global Hotel chain Marriott has now highest rooms in India. Marriott has now 22000 rooms in India, 2nd highest Taj has 14000 rooms. If you go through plan of another foreign hotel chain The Hilton group, they too want to expand furiously in next couple of years.

HDFC Bank declared result last week. It posted massive Rs. 4799 crore profit for Jan - March quarter and Rs. 17486 crore profit for last financial year. But, who benefits from HDFC Bank's success story, Indians? Absolutely not. We don't trust our companies. Foreigners own 74% of HDFC bank. They benefitted from success of HDFC bank. They are consistently owing 74% for last many years now.

Our entire focus is on one Nirav Modi and one Vijay Malya and we choose to miss whole India story. While foreigners, too, take note of Nirav Modi and Malya but they don't take their eye off big India story, which will continue to play for many years to come.

Other very successful Companies,Paytm and Makemytrip are owned by foreigners, Indians have just minor stake in it.

Message is just sit on your investment in Equity and Mutual Fund. whole world is coming here to invest. And, they are not foolish. They have studied opportunity very well. They have benefitted earlier from other such developing markets hence they know size of the opportunity.

*Stay Invested.*

Saturday, May 12, 2018

Sensex and Nifty :

What are Sensex and Nifty:

The Sensex and Nifty are "indices of a stock market". There are many other indices other than these indices.

A stock market is a place where you can sell or buy shares or stocks of companies.

An index is basically an indicator which gives us a general idea about stocks going up or down.

The Sensex is an indicator of all the major companies listed on BSE(Bombay Stock Exchange) which is situated at Bombay. The Nifty is an indicator of all the major companies listed on NSE (National Stock Exchange) which is situated at Delhi.

The Sensex goes up when prices of stock of major companies on BSE goes up and it goes down when the latter goes down. The same condition applies to Nifty.

These two are the major stock exchanges in the country. Most of the stock trading in the country is done though the BSE & the NSE.

Now coming to how the Sensex and Nifty are calculated:

The Sensex is calculated taking into consideration stock prices of 30 different companies listed on BSE . It is calculated using the “free-float market capitalization” method. This is one of the best methods for calculating a stock market index.

The 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index.

Which 30 Companies:

The 30 companies that make up the Sensex are selected and reviewed from time to time by an “index committee”.

This “index committee” is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.

This committee follows a list of certain criteria to do so.

In the order , we need to understand what Market Capitalization is :

Market Capitalization is the worth of a company in term of it's shares. To get the market capitalization of a company we simply multiply the current price of a share with total number of shares issued by the company.

Now we can understand what the Free Float Market Capitalization Method is:

Many types of investors hold shares of a company. But only the "open market shares" of a company are available for trading in stock markets. A company provides list of all it's shareholder to BSE.

BSE has it's certain set of measures through which it decides how many share of the company falls under "open market shares".

So the Free Float Market Capitalization is the total amount we have to pay for buying all the open market shares of a company.

Once we find the Free Float Market Capitalization, we are very close to findig the sensex.

Final Calculation:

All we need to do is to find the total Free Float Market Capitalization of all the 30 companies and add them. Now use method of ratios and proportions to relate the current value of sensex to sensex base.

What I mean to say is:

Suppose, for a “free-float market cap” of Rs. 50,000 Cr... the Sensex value is 4000…
Then, for a “free-float market cap” of Rs.150,000 Cr... the Sensex value will be..

The Nifty uses stocks of 50 companies....

Thursday, February 1, 2018



*#* FY18 fiscal deficit at 3.5% of GDP, target was 3.2% but the slippage was widely expected (fiscal deficit is flat YoY). Fiscal deficit for FY19 forecasted at 3.3% of GDP as compared to consensus forecast of 3.2%. Govt is committed towards Fiscal Reforms and Budgetary Management (FRBM) Committee report, will bring down central govt  debt to GDP ratio to 40%

*#* FY19 Market Loans forecasted at Rs 6.06 trillion ($ 95bn) as compared to Rs6 trillion in FY18 (budget forecast was Rs5.8 trillion, few days back it was raised by Rs0.2 trillion).

*#* Divestment target in FY19 is Rs800bn; FY18 divestment target upped to Rs1 trillion

*#* Higher direct tax revenue and divestment is partly making up for shortfall in GST (only 11 months of GST collection will reflect in FY18)

*#* Long Term Capital Gains (LTCG) exceeding Rs1lakh will be taxed @10% without benefit of indexation. All gains till 31st Jan 2018 will be grandfathered ie.any  gain earned after 31st Jan 2018 will be charged at 10% (ex. If a stock had touched 120 before 31st Jan 2018, and the sale happens at 140..then tax will be on 20 and not on 140—cost). STCG will be cont to be taxed at on distribution of equity oriented at 10%, this will hurt the dividend MF options. FM expects these schemes will bring Rs200bn in the first year…

*#* TAX benefit for MSMEs: Extends reduced corporate tax rate of 25% to companies with turnover <Rs2.5bn. In the last budget this reduced tax rate was floated for cos with turnover <Rs0.5bn abd benefited 25% of total companies filing tax returns..

*#* No change in tax for salaried tax payers.  Avg tax paid by salaried tax payers is ~Rs76,000 per person as compared to Rs25,000 per person in case of business tax payers. Standard deduction of Rs40,000 in lieu of transport and medical expenses (this was anyway ~Rs33,000).

*#* Senior citizen incentives : exemption on interest income on FDs/Post office deposit to be increased from Rs10,000 to Rs50,000. Raising limit of health insurance from Rs30,000 to Rs50,000.

*Rural Income/ Housing:*
*#* Focus on rural income and affordable housing continues – LT target is to double farm income by 2022 and provide house to every poor by 2022.

*#* In this year govt would raise MSP for Kharif crop (monsoon) to 1.5x of cost of produce

*#* Free cooking gas to 80mn poor households

*#* Will spend Rs14.34 trillion (224bn $) for rural livelihood in FY19

*#* Will increase allocation for agri credit from Rs10 trillion (156 bn $) to Rs11 trillion  (172 bn $)

*#* Launched flasgship national health protection scheme to cover 100mn families and 500mn beneficiaries. Will provide Rs5 lakh benefit per family per year coverage…this is very sizable

*#* 70 lakh formal jobs were created in FY18

*#* Govt will contribute 12% salary towards EPF to employees of all sectors (would be govt employees I assume, though FM did not mention)

*#* Fixed term eployment will be extended to all sectors. It was applicable in textile and footwear industry in FY18
*#* Women cintri to PF be redyced to 8% from 12% in first 3 years

*#* Nation needs investment of ~Rs 50 trillion in infra upgrade

*#* Govt upped infra spend target by 20.9% YoY to Rs 5.97 trillion

*#* Aims to complete 9000km of highway construction in FY18

*#* Railways: Aims to electrify 4000kms of railway lines in FY19. Maintenance of track infrastrucrure and safety will be the focus. Aims to do 3600 km of track renewal in FY19. Deployment of escalatators, CCTVs, wifi on stations

*#* Aim to expand airport capacity by 5x to handle 1bn trips. Udaan scheme to connect 56 unserved airports and 31 helipads.

Friday, January 5, 2018

Trading Holidays for the calendar year 2018

Trading Holidays for the calendar year 2018 : Equities
Sr. No.
Republic Day
Mahavir Jayanti
Good Friday
Maharashtra Day
Independence Day
Bakri ID
Ganesh Chaturthi
Mahatama Gandhi Jayanti
Gurunanak Jayanti

*Muhurat Trading will be conducted. Timings of Muhurat Trading shall be notified subsequently.
Source : NSEindia

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