RICH INVESTING iDEAS

5 years Consumer Price Index (CPI) Historical Data Analysis (2013-2018)   The Consumer Price Index (CPI) Inflation for the month of August 2018 went down to 3.69 Percent. Earlier it was 4.17 percent in the month of July as for the developing nation. Here I am taking the last 5 years historical data of CPI India numbers to analyze. For India after 2010, the index for inflation was changed from the Wholesale Price Index (WPI) to Consumer Price Index by the Central Bank – RBI. The Central Statistical Office (CSO) also had given the CPI with a base year 2012 = 100. However, CPI is an important factor to decide the Inflation / Deflation. There are more than 25 Index categories to analyze the prize changes in the CPI Data, especially the data split as Rural and Urban.   Finding the Inflation using CPI numbers is not a hard task, which most of the developed and upcoming nations are using scrutinized. The Lowest and Highest CPI numbers are 86.81 and 140.40 respectively .  The Last one y...

How the Inflation would be calculated using CPI in India ?   Consumer Price Index (CPI) is an economic measurement to finding the Inflation Rate . It also used to analyze the weighted average of price changes of a collection of particular goods and services. The Goods and services are likely Food, Transportation, Clothing, Education, Medical or any other goods or services. So, the calculation for CPI  is nothing but by taking the price changes in every item on the collection of goods and services and then average the total price changes, then divided by the base year. How the CPI can be calculated ? Already we know that there is a price for every item in a collection of goods and services and the collection should be averaged. The term, ‘Collection’ often referred as a ‘Basket’ . For example, if the Toned Milk priced at Rs. 45 per litre and 100 gram of butter at a price of Rs. 45 in the month of January 2018 and the total consumption is 2 litres of milk and 100 gm of butter. T...

Interest rate hike for Small savings scheme for Q3FY19   The Last trading day of this week (21-09-2018), Nifty50 and Sensex tumbled down and finally settled with (-0.81 % Nifty) and (-0.75 % Sensex) respectively. Today afternoon the sensex went down above 1000 points ( 35,993) as compared with the previous close of (37,121) and Nifty50 also down from the high of 11,346 points to the day's low of 10,866 , but finally Nifty50 closed with 11143 points. DHFL (Deewan Housing) crashed and closed with 42 percent down on the panic news on Default rumours of DHFL bonds. The bond yield is also in the rising rates and presently the 10 year bond yield is trading above the 8 percent. Yesterday, the Government also announced the small savings interest rate for the period of October - December 2018. The upcoming Q3FY19 interest rates are published with a better rates as compared with the previous quarter (June - September). PPF (Public Provident Fund) and NSC (National Savings Certificate) inte...

My Portfolio – Stocks – Updated on August 2018   Keep Learning and to teach the Fundamental Analysis is a regular skill for me, I am an avid value investor. The Previous quarter (Q4FY18) of my stock portfolio returns are at 11.21 percent. I am just telling the exact returns that what i am holding now, but not on the booking profits (Realized Gain). Already you know that the worst part of my stock portfolio, TATA Motors are making a loss of nearly 20 percent in the previous quarter (April 2018). Now, it's adding a loss of 10 percent i.e. (-30.12) percent and awaiting for the results of Expansion :) Currently, my stock portfolio returns are at 18.99 percent as on 31st August, where National Aluminium making a profit of 64 % and the next one is Infy at 50 percent. I accumulated a few in the Oil Sector. The Sector diversification stood at 40.37 percent on IT , 14.34 % with Banking, 12.55 percent on FMCG / Tobacco. Pharma stocks holding with 14.87 percent, Aluminium of 2.88 percent ...

Porter's Five Forces for Business Analysis   When we talking about the Stock Market (Business) valuation, there are lot of tools to analyze it. We can simply put with the EIC (Economy Industry Company) framework by Top down approach, SWOT or preferring any business life cycle models. Still there is an attractive model recommended for the valuation of a business. Porter's Five Forces is a business tool that helping to analyze a company on its competition. Industry Rivalry Threat of New Entrants Threat of Substitutes Bargaining power of Buyers Bargaining power of Suppliers   Industry Rivalry: The Marketing strategy and pricing for the product which decides a company to be successful. The rivalry is an important one for any firm which goes through the market and dominate itself to be sustained. For the automobile industry, the competition would be very high and expected to increase even further. Threat of New Entrants: New Entries are generally a threatening one...

MAKE IN INDIA – COMPLACENCY ?   After read the title, please don’t start your thinking that raising question about Government policy. Its related to that. Recent days, Newspapers, Magazine, Headlines are about well established employees left their high pay job and back to Agriculture and other business. It is that the new generation is doing revolution? Let’s see… In India during British colonial time, they introduced the tea and coffee. For that they cultivated the tea and coffee in Hill area. But the best qualities are exported to their countries. Nowadays, industries are exported the best one to foreign countries only. Dust and low quality for the inland trading. In old days, our people don’t have a habit of drinking tea. Really they don’t know about that. The British companies want to sell the dust tea to the local people. So, they planned to create a drinking habit of tea among the public. Companies are preparing a tea in the big barrel and entering to the street and give cont...

How is my Budget Planning today – Apr-June 2018 – PQFR There is no change on percent for my budget planning for the month of April to June 2018 (Same percent allocation as appeared in the previous budget planning). This is also the first quarter budget planning of this financial year 2018. You can view the previous financial year budget planning below, How is my Budget Planning today - January - March 2018 - PQFR How is my Budget Planning today - October - December 2017 - PQFR How is my Budget Planning today – July – September 2017 – PQFR How is my Budget Planning today – April – June 2017 – PQFR   If anyone of you need for a perfect budget planning, kindly download the Financial Planning Questionnaire below and I will transmit you with a good one. ( Financial-planning-questionnaire-new-client ) [ * We keep your data secretly – It’s our confidential ! ] I had clearly mentioned the expenses on Budget Planning today. It consists of three types of monthly expenses – Fixed, Flexible a...