Buying a Home? Check out the Offset Loans

What do you think about buying a home in India? Pretty cool is n't it?  Buying home is one of the important thing for most of the middle class today. Whenever I talk to friends of my close circle, the first and foremost question that I get from them is about buying home, affordability and various types of loans available. 

So I want to share some new types of loans available in india which would be useful to lot of readers of this blog. Lets get started.

Normal Home Loans 

X has availed a CONVENTIONAL home loan amounting to Rs. 20 lakhs at 10 per cent interest for 20 Years and EMI payable is Rs. 19,301.

He would complete his EMI payment at the end of 20th year.

But if X take offset loan he/she could pretty much payoff his loan in his 15th year and can save lot of money. Read below.

Offset Loans

X has availed a ‘OFFSET’ home loan amounting to Rs. 20 lakhs at 10 per cent interest and EMI payable is Rs. 19,301.

In the first month, the interest works out to Rs. 16,667 and principal recovery would be Rs. 2,634.

X has deposited and withdrawn the following amounts in his ‘OFFSET’ account, as follows:

* On first of the month, X deposited his salary amounting to Rs. 55,000.

* On 5th, he withdrew Rs. 10,000 and balance reduced to Rs. 45,000

* On 15th, he withdrew Rs. 10,000 and balance reduced to Rs. 35,000

* 0n 25th he withdrew Rs. 5,000 and balance reduced to Rs. 30,000

* On 30th, his account was debited for Rs. 19,301 towards the EMI

The average balance for the month can be calculated as

Rs. 55,000 x 5 + 45,000 x10 + 35,000 x 10 days + 30,000 x 5 / 30 days = Rs. 40,833.

On the average balance of Rs. 40,833, the interest @ 10 per cent works out to Rs. 340 per month.

This amount would be reduced from the outstanding loan.

The interest thus earned every month on the bank balance will help X to pre-pay the loan much earlier, resulting in substantial savings in the interest charged on the home loan.

X can always withdraw extra amount (other than EMI payable) and also benefit from higher interest accrued on the period of savings i.e. 10%, which is the interest charged on his home loan.

Suppose X has plans to go for an RD (Recurring Deposit) of Rs. 3,000 per month, he can save the same in the offset loan account itself, which would reduce the tenure from 240 to 165 months, making interest savings of almost Rs. 9.35 lacs, as compared to normal home loan.

Bottom line is through offset loan one can prepay the loan before end of his tenure and can save tons and tons of interest.

Right now SBI, ICICI, HSBC and citi banks are offering offset loans under different names. 

Here is the citi bank home credit calculator for you.

https://www.online.citibank.co.in/products-services/loans/mortgages-calc.htm

Buy Hindalco

Hindalco breaks its previous swing point with high volume suggests bullish swing pattern. It also forms bullish engulfing on the daily chart. One can be buyer at current levels and first resistance level is @Rs.110 and the stop loss should be around Rs.99
 Chart

Timing the Stock Market

There is a plenty of reasons for the recent bleeding of share market and debt market in India. The most important culprit is none other than USD and policy paralysis by our national leaders. At one end US dollars are marching towards all time historical high, on the other end politicians are busy in collecting the votes and blaming each others in the Independence day celebrations.

Ok lets not care about that and  lets see what one can make out of this. Wait patiently, dont buy any stocks right now. The NIFTY seems to be bottom out near 5200 levels. So wait patiently if that breaks then we should be ready and buy stocks at 4800 levels. To facilitate the readers of this blog I am going to give you stock ideas every week which you can just buy and hold it  for a week and sell it off and make profit.

All the stocks ideas are swing based ie., you cant hold it more than a week unless otherwise the technical indiactors suggests...

So good luck good things are keep coming in this blog. Thanks for everyone support.

Best Equity Mutual Funds

Best Performing Equity Funds

I am going to list some of the best performing Mutual funds for the past 1 to 3 Years. These funds are growth funds which can be added to your satellite portfolio for wealth creation. Axis Mid cap fund is a new kid in the block but has shown block buster return last year. 

No	Equity Growth Fund Name	1 Yr	3Yr
1	Birla SunLife NextGen(G)	48.5	17.2
2	IDFC  Premier Equity –B(G)	42.2	14.8
3	Birla SunLife Top 100 (G)	37.9	8.1
4	Axis MidCap Fund (G)	54.2	-

I have included all the above funds in my satellite portfolio and has reap nice benefit last year. Please analyse the fund by yourself and invest. Please consider that the past year performance cannot be assured in the subsequent years. But the history may be repeated. 

Happy Investment. Wish everyone have a bullish portfolio this year.

NRE Fixed Deposit/Term Deposit Rate in India

NRE Term/Fixed Deposit Rate in India as of July 2012

City Union Bank (CUB)	10	1 year
Lakshmi Vilas Bank	9.8	1 year to less than 2 years
State Bank of Patiala	9.75	555 days
Karnataka Bank	9.75	1 year and above to less than 2 years
Development Credit Bank	9.75	18 months
Dhanalakshmi Bank	9.75	500 days
Yes Bank	9.6	15 Months 15 days to 16 Months
Allahabad Bank	9.5	1 year to less than 2 years
State Bank of Hyderabad	9.5	SBH-500 (Special Deposit Product)
Indian Bank	9.5	1 year and above but less than 2 years
Indus Ind Bank	9.5	400 days
State Bank of Mysore	9.5	1 year to less than 2 years
ING Vysya Bank	9.5	One Year
Tamilnad Mercantile Bank	9.5	1 year to less than 2 years
Bharat Co-operative Bank	9.5	12 Months
Kotak Bank	9.4	390 days
Vijaya Bank	9.3	1 year to less than 2 years
Syndicate Bank	9.3	1 year
ICICI Bank	9.25	390 days to less than 2 years
Bank of Maharashtra	9.25	1 year to Less than 2 years
Axis Bank	9.25	1 year to less than 13 months
Oriental Bank of Commerce	9.25	1 year to less than 2 years
South Indian Bank	9.25	1 year
United Bank of India	9.25	1 year to less than 2 years
Indian Overseas Bank	9.25	1 year to less than 2 years
Dena Bank	9.25	1 year
Corporation Bank	9.25	12 months only
Standard Chartered Bank	9.25	376 days to 390 day
Bank of India	9.25	1 year to less than 2 years
IDBI Bank	9.25	500 days
Federal Bank	9.25	1 year only
UCO Bank	9.1	1 year to less than 2 years
Central Bank of India	9	1 year to less than 2 years
State Bank of Travancore	9	1 year to less than 2 years
Canara Bank	9	1 year and above to less than 2 years
Citi Bank	8.75	365 days to 400 days
Punjab National Bank	8.75	1 year
Bank of Baroda	8.75	1 year and upto 443 days
HSBC	8	18 months to less than 24 months

Retirement with 1 crore

After a long back... Finally I come back to blogging.... Sorry got a little bit of Wrestlemania fever.

 Planning for the retirement is one of the important step for every individual. When you plan for your future, you have to consider the yearly inflation rate. My best guess is you have to consider atleast 6% as a inflation rate. As I already said in Power of Compounding, one should start investing early for his/her retirement. Say for example Ramesh age is 25. He wants to retire at the age of 50 with 1 crore as corpus.

To accumulate 1 crore in 25 years seems to be tough. But if he systematically invest in the best performing mutual funds he can accumulate more than one crore. Ramesh start investing Rs.10,000 every month in any of the 5 to 10  top performing diversified mutual funds for next 25 years with 12% as his annualised return, he would accumulate 1 crore at the end of his 50th age. If the mutual fund returns 15% annualised return, then he would retire with 1 crore and 50 lakhs in hand at his age of 50.

 When choosing the SIP, one no need to investigate much about the details of the mutual funds and its performance. Evaluation for every 3 years would be enough for such a long term investment. Try to pick atleast 5 to 10 top performing funds, because if 1 fund fails the other funds would help to balance your annualised return.  So start invest in any top 5 star rated mutual funds today and retire as a Crorepathi.

Be patience and reap the benefits

Search Engine Ranking

Blogging is the fastest way to become a millionaire in this world (May be my blind belief). Because internet is spreading more faster than any other flu in the world.

Search engine ranking and Checking your search engine rank for your blog is most important thing.

You created a successful blog and has lot of useful contents. But it wont be beneficial to anybody until it reaches the wide variety of users.

Am not going to write a search engine optimization article here. I will cover that in a seperate article about how titles, keywords has to be in a blog so that it will be come first in the
search engine main page.

Check out this coolest blog http://www.instantrankmeter.com  for  Search engine rankings. The given
link will say your blog ranking  in leading search engine such as  google, yahoo and bing.

Forbes Top 10 Billionaire in the world 2011

 Here is the Forbes Top ten Billionaires:

1. Carlos Slim (Mexico) – $74 billion, Telecommunications

                                    

                                

2. Bill Gates (USA) – $56 billion, Microsoft Corporation

                                                                  

3. Warren Buffett (USA) – $50 billion, Berkshire Hathaway

                                                                      

4. Bernard Arnault (France) – $41 billion, LVMH

                                                                  

5. Larry Ellison (USA) – $39.5 billion, Oracle Corporations

                                                                  

6. Lakshmi Mittal (India) – $31.1 billion, Steel Company

                                                                   

7. Amancio Ortega (Spain) – $31 billion, Reusinesstail B

                                                                      

8. Eike Batista (Brazil) – $30 billion, Oil & Mining

                                                                    

9. Mukesh Ambani (India) – $27 billion, Oil & Gas, Petrochemicals

                                                                  

10. Christy Walton & family (USA) – $26.5 billion, Wal-Mart

                                                                    

Congrats to all billionaires......... Hope we will join in this list very soon.................

Bearish Candle Stick Patterns

In this post I want to share some important bearish candle stick patterns. Watch out for this alarming patterns in your candle stick charts and get ready to sell the stocks.

                                                  Bearish candle stick patterns


Hope this will help you from losses in the volatile market

Bullish candle stick pattern

Bullish Candlestick Pattern

Above  diagram shows the sign of oncoming bullishness in the market. If you see this in your candle charts, roll up your sleeves to enter into the bullish market.When it appears in the downtrend, it gives strong reversal pattern

Is it Possibe to earn 1 crore in 20 years?

It's possible to make 1 Crore from equity funds investing. This is because of the power of the compound interest. We can expect 15-20% returns from the Indian equity in the long run.

So if we consider 15% annual returns than after 10 years your monthly 10K will become 29 lakhs and after 15 years it will become 57 lakhs.

At the rate of 20% annual returns after 10 years it will become 37 lakhs and after 20 years it will become 93 lakhs.

Suppose if you wait 1-2 more years than it can definitely cross the 1 Crore figure.

Let the money grows with your child

Planning for a child future is a first responsibility for every parents. If you follow the simple procedure as described below your kid will be a millionaire at the age of 16. There is no magics or gimmicks in that. This is where the power of  compounding plays its role. As the years grows the principal of your investment and the interest will grow rapidly at a rocket pace.

So lets get in to the point ,

Invest 2 lakhs when your child is at the age of 1 in any of the 5  top equity diversified Mutual Fund.
Just let that investment to grow for 16 years. When your kid turns to 16 you will see the miracle by yourself.

The 2 lakhs you invested today will accumulate to 13 lakhs assuming 12% annual return in 16 years.
For the past 5 years Indian Mutual Funds has given atleast 18% annual returns. Even some of the funds has given 40% annually.

This is the power of compounding. Check out this article http://imakemillion.blogspot.com/2011/08/how-to-earn-crore-power-of-compounding.html and see how its works

See the top performing mutual funds in India in 2011(http://imakemillion.blogspot.com/2011/08/top-5-india-mutual-fund-pick-for-2011.html)

So invest today and reap the benefits in the future.

How to become a crorepati - Power of Compounding

Hi Dudes,

How to become a crorepati?  I want to make 1 crore?

If this is the question often strike your mind then you are at the right place.

Invest early is the golden mantra for earn a crore.

Wanna know... Check out below.

Akila starts saving when she turns 25 and invests Rs 50,000 every year. Assuming that on this she earns a return of 10% every year, at the end of ten years, Akila has been able to accumulate Rs 8.76 lakh. Now, she stops investing 50,000 per year after 10 years and does not touch the money

she lets the Rs 8.76 lakh grow and assuming that it continues to earn a return of 10% every year,s he would have been able to accumulate around Rs 95 lakh by the time she turns 60. So the Rs 5 lakh (Rs 50,000 x 10 years) he had invested in the first ten years has grown to Rs 95 lakh: even though Akila stopped investing Rs 50,000 every year after the first ten years.


At the age of 35 Kamal starts investing Rs 50,000 every year. He invests this amount every year till he turns 60, i.e. for 25 years. Assuming he also earns a return of 10% per year on his investments. At the end Kamal would have managed to accumulate Rs 54.1 lakh.

Even after investing Rs 50,000 regularly for 25 years, Kamal has managed to accumulate Rs 54.1 lakh, which is around Rs 41 lakh less in comparison to Akila. Now Akila had invested only Rs 5 lakh over the ten years she invested. In comparison, Kamal over the 25 years has invested Rs 12.5 lakh (Rs 50,000 x 25 years).

Even by investing two-and-a-half times more than Akila, Kamal has managed to build a corpus which is 43% less. This happened because Akila started investing earlier. This allowed the money to compound for a greater period of time.


 So strongest advice is to begin investing early and set up a regular plan to invest a set amount per month.

Top 5 Stocks of this week

Company	Group	Prev Close (Rs)	Current Price (Rs)	% Change
Jubilant Foodworks L	A	851.75	934.7	9.74
Hero MotoCorp	A	1890.8	1993.65	5.44
Dabur India	A	101.1	103.8	2.67
GlaxoSmithKline Phar	A	2139.9	2188	2.25
Coal India Ltd.	A	385.3	393.7	2.18

What Is Inflation?

India Bank Fixed Deposit Interest Rates(2011)

Bank	Days	Amount	Interest Rate	Compounded
City Union Bank Ltd.	400	1.00 - 1500000.00	10.4	Annually
Abhyudaya Co-op. Bank Ltd.	366 - 730	1.00 - 1499999.00	10.35	Annually
Tamilnad Mercantile Bank Ltd	365 - 624	1.00 - 2499999.00	10.25	Annually
Tamilnad Mercantile Bank Ltd	625	1.00 - 2499999.00	10.5	Annually
Repco Bank	365 - 729	1.00 - 1500000.00	10.1	Annually
Rajkot Nagarik Sahakari Bank Ltd.	2555	1.00 - 1499999.00	10.04	Annually
Tamilnad Mercantile Bank Ltd	1825 - 3650	1.00 - 2499999.00	10	Annually
Andhra Pradesh State Cooperative Bank	500	1.00 - 1499999.00	10	Annually
Karur Vysya Bank	365 - 730	1.00 - 100000000.00	10	Annually
City Union Bank Ltd.	401 - 729	1.00 - 1500000.00	10	Annually
City Union Bank Ltd.	365 - 399	1.00 - 1500000.00	10	Annually
Federal Bank	333	1.00 - 1499999.00	10	Annually
South Indian Bank	300	1.00 - 1499999.00	10	Annually
Dhanlaxmi Bank	300	1.00 - 1499999.00	10	Annually

Free Stock Technical Analysis Software

Hi aspirant millionaires check out this cool site to download free technial analysis software which would be helpful in analysing almost all major stock markets around the world.


this software is really cool in my personal experience
http://www.chartnexus.com/software/cnx.php

Step By Step Stock Market Tutorials

Learning the stock market is an  art. Once you know how to analyse the technicals of the stock you will yield more profits.

I have searched the internet and bring something which would really please you. 

Check out this link

http://www.babypips.com/school

So to speak this is the excellent tutorial which would cover the basics of stock market technicals and fundamentals.

If you are a day trader/ swing trader or long term investor, you should read all these technical details.  

Good luck friends.

Top 5 India mutual Fund Pick for 2011

According to top analysts following funds are the best picks for the this year

1. SBI magnum Emerging Business(G)
2. HFC MidCap Oppurtunities (G)
3. Birla SL India GenNext (G)
4. IDFC Small&Midcap Eqty- (G)
5. UTI India Lifestyle Fund(G)