MYTHS & FACTS ABOUT MUTUAL FUNDS IN INDIA

MYTH: Mutual Funds are for experts

Fact: In fact, Mutual funds are meant for of common investors who may lack the knowledge or skill set to invest in securities market. Mutual Funds are professionally managed by expert Fund Managers after extensive market research for the benefit of investors. A mutual fund is an inexpensive way for investors to get a full-time professional fund manager to manage their money.

MYTH: Mutual Fund investments are only for the long term

Fact: Mutual funds can be for the short term or for longer term based on one’s investment horizon and objective.

There are different types of mutual fund schemes – which invest in different types of securities – in equity as well as debt securities that are suitable for different investor needs.

In fact, there are various short-term schemes where you can invest for a few days to a few weeks to a few years e.g., Liquid Funds are low duration funds, with portfolio maturity of less than 91 days, while Ultra Short-Term Bond Funds are low duration funds, with portfolio maturity of less than a year. There are Short-Term Bond Funds which are medium duration funds where the underlying portfolio maturity ranges from one year – three years. Then, there are Long-Term Income Funds which are medium to long duration funds with portfolio maturity between 3 and 10 years.

While Equity Schemes are most suitable for a longer term, debt mutual funds are suitable for investors with short term (less than 5 years) investment horizon.

MYTH: Investing in mutual funds is the same as investing in stock market / Mutual Fund is an equity product 

Fact: Mutual Funds invest in stock market (i.e., equities), bond market (corporate bonds as well as govt. bonds) and Money Market instruments such as Treasury Bills, Commercial Papers, Certificate of Deposit, Collateral Borrowing & Lending Obligation (CBLO) etc. Many of these instruments are not available to retail investors due to large ticket size of minimum order quantity (such as G-Secs) and hence, retail investors could participate in such investments through mutual fund schemes.

MYTH: Mutual Fund scheme with a NAV is ₹10 per Unit better than Mutual Fund scheme whose NAV is ₹25 per unit (Or a mutual fund scheme with lower NAV is better Or Investing in NFOs are preferable than investing in existing schemes).

Fact: This is a common misconception. A mutual fund's NAV represents the market value of all its underlying investments. NAV of a fund is irrelevant, because it represents the market value of the fund’s investments and not the market price. Any capital appreciation will depend on the price movement of its underlying securities. Let us understand this through an illustration.

Suppose, you invest ₹10,000 each in scheme A whose NAV is ₹20 and scheme B (whose NAV is say, ₹100. You will be allotted 500 units of scheme A and 100 units of scheme B. If both schemes have invested their entire corpus in exactly same stocks and in the same proportions, if the underlying stocks collectively appreciate by 10%, the NAV of the two schemes should also rise by 10%, to ₹22 and ₹110, respectively. Thus, in both the scenarios, the value of your investment increases to ₹  11,000.

Thus, the current NAV of a fund does not have any impact on the returns.

MYTH: ONE needs a large amount of money to invest in Mutual Funds

Fact: Incorrect. One could start investing mutual funds with just ₹5000 for a lump-sum / one-time investment with no upper limit and ₹1000 towards subsequent / additional subscription in most of the mutual fund schemes. And for Equity linked Savings Schemes (ELSS), the minimum amount is as low as ₹  500.

In fact, one could invest via Systematic Investment Plan (SIP) with as little as ₹500 per month for as long as one wishes to.

MYTH: One needs to have a Demat account to invest in Mutual Funds

Fact: Holding mutual fund Units in Demat mode is optional, except in respect of Exchange Traded Funds. For all other schemes, including the close-ended listed schemes like Fixed Maturity Plans (FMPs), it is entirely up to the investor whether to hold the units in a Demat mode or in conventional physical accountant statement mode.

MYTH: A Scheme with a higher NAV has reached its peak ! 

Fact: This is a very common misconception because of the general association of Mutual Funds with shares. One needs to keep in mind that the NAV of a scheme is nothing but a reflection of the market value of the underlying shares held by the fund on any day. Mutual Funds invest in shares, which may be bought or sold whenever deemed appropriate by the Fund Manager depending on the scheme’s investment strategy (Buy-Hold-Sell). If the Fund Manager feels that a stock has peaked, he can choose to sell it.

A high NAV does not mean the fund is expensive. In fact, high NAV indicates a good performance of the scheme over the years.

MYTH: Buying a top-rated mutual fund scheme ensures better returns.

Fact: Mutual fund ratings are dynamic and based on performance of the scheme over time – which is subject to market fluctuations. So, a Mutual fund scheme that may be on top of the rating chart currently, may not necessarily maintain the same rating month after month or later. However, a top-rated fund is a good first step to short list a scheme to invest in (although past performance does not necessarily guarantee better returns in future). Investment in a mutual fund scheme needs to be tracked with respect to the scheme’s benchmark to evaluate its performance periodically to decide whether to stay invested or to exit.

Obama carries around a Hanuman statue in his pocket

Barack Obama keeps the picture of Hanuman Ji in his pocket. Is it true?

Barack Obama, former US President was raised in Indonesia and then Hawaii where he interacted with Hindus. Obama believes that Hanuman ji is a guardian deity who takes care of all.

Incidentally, Tulsi Gabbard, US representative from Hawaii is a Hindu by choice and some Hanumanji ‘s devotee.

It is known that Barack Obama carries at least a pocket full of different talisman: perhaps one of best known is a “lucky charm” or locket for a Indian Lord Hanuman idol.  Hanuman is known by several names, including the Monkey God – the “redeemer”, and other omnipotent names in the Hindu world.

The Hindu god figures among some other small totems which the U.S. President carries all the time.

A statuette of Lord Hanuman is among few items that U.S. President Barack Obama always carries in his pocket and seeks inspiration from whenever he feels tired or discouraged.

Obama, whose father was a Kenyan and mother a white woman from Kansas, spent initial days of his life in Indonesia where Hinduism is a popular religion.

ALL ABOUT WEALTH

What Is Wealth?

Wealth is a lot of things…

It is much more than just money.

Wealth depends on who you are, what your interests are, and where you’re at in life. It is defined differently by every person, but ultimately, true wealth is freedom. It is the freedom to do what you wish, when you wish, with whomever you wish. It is the freedom that comes with not worrying. It is freedom from your enemies, and mostly from yourself.

Wealth is Freedom: Money freedom. Time freedom. Relationship freedom. Spiritual freedom. Physical freedom. Ultimate freedom = 5 freedoms + ability to pursue your genius.

Growing up, I always thought of wealth as being “rich” and having the fancy car and the huge house. Don’t get me wrong; I am still highly motivated by money itself… But what I’ve realized, is that ‘wealth’ is altogether something different.

Wealth involves a bunch of things, including: money, happiness, time, health, attitude, relationships, lifestyle, peace of mind, and any other thing you desire for what you view as a successful life. 

To be truly wealthy, you must be happy and content in all key aspects of your life. As the Buddhists say, contentment is the greatest wealth.

He is the richest who is content with the least, for content is the wealth of nature. – Socrates

Of course, there are challenges to overcome every day, but the wealthy do not worry about these obstacles because they have the ability and the resources to overcome them.

Wealth, although often misrepresented in our world today, is defined well by the following people:

Wealth is several days forward that you can survive without working. Wealth is measured in time, not dollars. – Robert Kiyosaki

Being rich is having money; being wealthy is having time. – Margaret Bonnano

Wealth is not his that has it, but his that enjoys it. – Benjamin Franklin

Passive income > expenses. – David Wood

Wealth is the ability to experience life. – Henry David Thoreau

As you can see, wealth involves so many things. It is not a simple answer, and it changes.

James Berman puts it in perspective when he says, “Beyond money for basic needs, wealth remains more a psychological construct than a factor of dollars and cents. And a comparative one at that.”

Remember, our goal each day is survival. Wealth is being able to do this well, and for a long period of time.

With all of that said, money is still a very important part to my personal view of wealth. As a result, it is a big focus for me and for what we do on Yo-pro Wealth. But, it is only a part of the solution, and this is an important thing to discover early in life.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. – Ayn Rand, Atlas Shrugged

Now, this is only the beginning of the discussion on the definition of wealth. We are all very fortunate, and you are extremely wealthy in so many ways already. 

I’ll end with another of my favorite definitions of wealth.

Wealth is just an abundance of what you really want.

Go out and get what you want.

Path Forward:

·         Think about what is important to you, and what your key aspects of wealth really are (financial, health, spiritual, etc.).

·         How do you fare for each of these areas of wealth? Take inventory of your level of wealth and identify the areas to improve.

It’s tough to figure out how to get to true wealth. Creating a lifestyle that fits you well takes time. But when you achieve true wealth you will live an abundant life while maintaining a nice runaway to continue to grow.

“The rich get richer by continually reinvesting asset profits back into assets.”

You don't have to sell your soul to be rich. Nor do you have to sacrifice your relationships to build wealth. You don' even have to scrimp and save! Sure, you can get wealthy that way - but it's no fun!

Fabulously wealthy people have a much better strategy for having it all: money, harmonious relationships, the right connections, the right opportunities, and more. It's not so much that they do things differently; it's that they have a different psychology.

Now you can get the tools you need so that you can replicate this psychology and achieve wealth beyond your wildest dreams, in the Wealth Magnet: Principles of Wealth Attraction.

This is breakthrough information that's tested and measured - a system that can be applied by anyone. For instance, when Dolf de Roos, a successful real estate investor and author of the Wealth Magnet began teaching his real estate students the foundational beliefs that all rich people share, his student's success rate went from 5 percent to over 80 percent!

Now, in the Wealth Magnet, you can apply this same knowledge to grow rich in any field. For example, you'll learn:

·        Why it's crucial to get rid of destructive beliefs like "Money is the root of all evil," "Money can't buy you happiness," and "Rich people get wealthy at the expense of the poor," and replace them with empowering beliefs like "Money gives me choices," "I will make a ton of money, have fun doing it, and be generous with it."

·       The critical difference between an abundance mentality and a scarcity mentality- and how to develop and apply an abundance mentality right away.

·       Why scrimping and saving is a "defensive" strategy to grow wealth - and why it's much better to expand your opportunities and create wealth in abundance.

·       How your newfound "millionaire mindset" will make every aspect of your life richer - you'll discover more opportunities to create value, to make contributions to others, and to express gratitude for the abundance you already have in your life.

·       The difference between good and bad debt - and how to use debt to your advantage, rather than being a victim of it

HANUMAN JAYANTI SPECIAL: Interesting Facts About Hanuman

Hanuman Chalisa

Hanuman Chalisa is one of the remarkable poetic creation of GoswamiTulsidas. Hanuman Chalisha acquires a special site and significance in Hindu religion. It is believed that chanting Hanuman Chalisa can assuage Lord Hanuman and earn his golden blessings. Hanuman who is also called as god in monkey form, is one of the most worshiped lord among Hindus. His blessings are so significant and powerful that it can vanish every grieve and negative situations in any person’s life too fast bringing in peace and prosperity.Hanuman Chalisa can be found on the net.

Importance of Hanuman Chalisa

Hanuman Chalisa is an ode to the greatness of Hanuman. The poem describes the strength, generosity, intelligence, devotion towards Lord Rama and valor of Lord Hanuman.

It is believed that chanting Hanuman Chalisa brings positive energy and strength.

5 Life lessons to learn from Hanuman Chalisa:

1. Not just physical strength, but even strength of mind is also important.

2. It is believed that Lord Hanuman can change form. He teaches us to adapt to situations.

3. One should help out friends in need like Lord Hanuman helps Sugriva.

4. Never let power corrupt you. One should stay humble and have a compassionate heart.

5. One should fulfill their task with commitment.

 He Lord Hanuman is very soft hearted and he always helps his devotees. You must try to worship the Lord and get blessed and protected.

Hanuman Jayanti:5 Life Lessons to Learn From Lord Hanuman

Celebrated on the 15th day of the Shukla Paksha in the month of Chaitra, Hanuman Jayanti is an important Hindu festival.

Hanuman Jayanti commemorates the birth of Lord Hanuman, believed to be the Lord Shiva's incarnation. Celebrated on the 15th day of the Shukla Paksha in the month of Chaitra, Hanuman Jayanti is an important Hindu festival.

According to scriptures, Lord Hanuman is the son of Anjana and Kesari and is also described as the son of the wind-god Pawan. Believed to be one of the Chiranjivi (immortal), Hanuman has been known for his unflinching devotion to Rama.

Devotees offer sindoor tilak on the idol of Lord Hanuman at temples on

this day. 

Other facts:

1. Lord Hanuman is known as an obstacle remover, as he is the only deity who has control over the planet Saturn (Shani).

2. Hanuman approached the Sun God and learnt many scriptures. Legend
says that it only took 60 hours to finish the entire scriptures for Hanuman Ji. The Sun god urged him to train his son Sugriva in the scriptures.

3. Hanuman met Rama (the incarnation of Vishnu and one of the most important figures in Indian history) during his 14-year exile. Upon laying his eyes upon him, Hanuman immediately prostrated himself in front of him. From this moment forward, he followed Rama everywhere.

4. His greatest feat is when he moved an entire mountain to heal Rama’s brother. Lakshmana had been seriously wounded in the battle against the evil Ravana, and to save his life, a certain herb was needed from a mountaintop. However, when he got to the mountain he realized that he couldn’t distinguish between any of the plants. So instead of guessing, he grew to a much larger form and picked up the entire mountain and brought it back to Rama.

5. Hanuman Jayanti is celebrated on the 15th day of Shukla Paksha, during the month of Chaitra.

6. Lord Hanuman is a bachelor and has never married. He is only devoted to Lord Rama.

7. Lord Rama and Lakshmana were once abducted by the Asura Ahiravana and kept captive in Pataal Loka. Now Hanuman’s son Makardwaja was found by Ahiravana as a child and brought him up to be a soldier. Hanuman was confronted by Makardwaja when he went to Pataal Loka to rescue Lord Rama and Lakshmana. They fought each other and eventually Hanuman was able to rescue Rama and Lakshmana by defeating Ahiravana. Makardwaja was later made the king of Pataal Loka as per Lord Rama’s wish.

8. Lord Hanuman was also the 11th and last Rudra avatar of Lord Shiva. His Panchmukhi form is widely revered as his ultimate and most powerful manifestation.

Hanuman Mantra: Make Anything Possible

The Hanuman is the God of strength and is the God most remembered in times of trouble. You must have noticed people starting to chant his Mantra or Chalisa when they are scared or are looking for strength in times of troubles. 

Lord Hanuman is the reincarnation of Lord Shiva and Lord Vishnu.

So, therefore when you see the preserver and the destroyer coming together, it casts a huge impact when you become his devotee.

Undoubtedly, he tends to become the source of strength and power. 

There are different reasons as to why we chant the Hanuman Mantra: -

·         The Hanuman is the source of strength and power. Therefore, chanting his Mantra brings in lots of strength to overcome troubles of any type especially of health and fighting for justice where you need utmost strength.

·         Chanting Hanuman Mantra makes you resilient and gets you the power to jump back from your low life state with loads of energy. So, it is like the spring of life that you must have to be victorious in every sphere of life.

·         It also has turned out to be useful in overcoming adverse health conditions. There have been cases where people who have been on the deathbed or in a state of comma have risen because of the sincere and dedicated chanting.

·         It is also used to ward off any bad spirits or ghosts that cast a bad influence on somebody’s life.

·         Lots of wrestlers are made to learn the Hanuman Mantra and the Chalisa so that even when they are lying in the hands of defeat can retain the stamina and the power and come out with victory.

·         Hanuman does not just stand for physical strength; he also stands for mental strength. He empowers you to take best decisions in terms of education and routine life and ensures tons of success if practiced from heart with sincerity.

·         People these days suffer from mental problems, failed marriages, debt problems etc. The Mantra gives you the push to overcome them by cleansing your aura and removing all the negativity.

·         It brings in a lot of courage and confidence in people who always have been fearful of things and unpredictable situations in their lives.

·         It acts as a protective shield and prevents any wrong moves of your enemies towards you. Therefore, once you start chanting the mantra, you can be sure of one thing that you are protected and nothing bad can happen to you.

·         Hanuman Mantra makes you stay focused onto whatever job or study you are engaged in. Therefore, you are most likely to get fruitful results when you chant with full devotion.

·         It purifies your body and makes it pious and free from any bad influences.

·         It also prevents you from bad eye and therefore no matter how much success you may attain, you would never fall back on the ground owing to somebody’s wrong eyes on you if you chant with full devotion.

·         Even in the weakest situations, you would feel the energy to get up and fight the odds out which are only possible with the Hanuman Mantra.

·         It also betters your sex life and makes your partner feel fully satisfied with you.

·         Your work efficiency increases with the chant and you can hold on to your strength and work for more time and inspire others as well with your charm.

Therefore, the most common form of Chalisa that you would come across that people have learnt by heart is Hanuman Chalisa or even his mantra for strength and power in times of troubles.

1.    This Hanuman Mantra is a very secret mantra with unlimited power in it. This Hanuman mantra brings instant results. One becomes exceptionally powerful by chanting this hanuman mantra

हं हनुमते रुद्रात्मकाय हुं फट्

Han Hanumate Rudraatmakaay Hun Phatt

2.    Recite this Hanuman Mantra for getting physical strength, stamina and power.

ॐ हनुमते नमः

Om Hanumate Namah

3.    Recite this Hanuman Mantra 21000 times to eradicate diseases, evil spirits and other types of disturbances in life.

ॐ नमो भगवते आंजनेयाय महाबलाय स्वाहा

Om Namo Bhagvate Aanjaneyaay Mahaabalaay Swaahaa

Chanting these mantras will connect you with your inner divinity and bring you into states of higher consciousness.

How to BECOME GENERAL INSURANCE AGENT in India

To become an advisor you need to be at least 18 years old, have the relevant age, identity and address proofs, and is at least Class 12 pass.

Then, you need to analyse whether you have a good enough market and will be able to sell insurance as becoming an agent and then you are not able to sell insurance policies, actually doesn’t make sense. 

Then, you need to fill up the relevant forms along with Yellow Form for IRDA Registration with the Insurance Company you wish to join. For an agent to start sourcing business, he needs to have an IRDA license under any Insurance Company. To acquire this license you need to complete 50 hours of mandatory training from that insurance company. Only once the training is completed you will be issued a Training Completion Certificate from that Insurer to sit for the online or offline IRDA exam. Then you need to score 50% to pass the test. Once you pass the test, you will be issued an IRDA License and then you can start sourcing business for the Insurance Company you are registered with.

You may choose to become an agent of an insurer in which YOU believe in and the products of whichever insurer you will be able to sell. You can choose from National Insurance, Apollo Munich, Oriental, New India Assurance, etc.