Many working professionals today seem to be on a fitness and health drive -- you only need a look at the gyms in your city today to realise that. Great, but do you know how much you are really spending on fitness drive? We decided to ask a few people and do some quick math.

She can spend any amount to lose weight!

NAME: Priyanka Jethwani
Age: 22
What Priyanka does: Process Executive at at MNC bank

Priyanka often looked at herself in the mirror and sulked at the fact that she was not slim enough to fit into that little black dress which her colleagues often wore on Saturdays.

So she decided to join a gymnasium.

She went to a well-known gym only to find the membership fees were exorbitant. "I had read advertisements of various gyms claiming how people lost 15 kilogrammes to 20 kilogrammes in no time. I wanted to try it out, but wasn't sure if these were just advertisements to promote themselves or the truth. I thought over it for a couple of days before investing Rs 15,000 for a year," says Priyanka.

Juggling between gym and work, Priyanka worked out for five months with no difference in her weight.

"It was not very encouraging to see the weighing machine stuck at the same number for five months. I was not sure whether I would lose weight, but continued going to gym since I had paid for the whole year."

Then came the realisation: working out is great but it needs to be supplemented with the right diet to get into the right shape. "It took a long time for me to realise that dieting is as important as working out. By dieting, I don't mean starving but eating the right kind of food," she says.

She also enlisted a personal trainer. He helped her shed about 6 kg in two months. She says, "It was all worth it!"

Priyanka spent around Rs 70,000 (that is 40 per cent of her annual income), to lose that 6 kg. Here's how;

Total amount spent in one year: Rs 69,625
Weight loss in one year: 6 kg
Cost of losing one kilogramme: Rs 11,604

That means Priyanka spent about Rs 11,000 to shed each kg!

That's the amount a person can survive on for a month; buy a new mobile phone or maybe an iPod, and use it for years!

Is spending Rs 1,000 per 100 grams really worth it?

"It did feel like a waste of money initially. Now, I think it is worth it. I know it is a bit too much. But if, at the end of the day, I look thinner and better, what more can I ask for?" smiles Priyanka.

She says life was hell for those few months when she was on a diet: "When I was cutting down on all my favourite food, I often wondered, is life only about looking good and not living it to the fullest? It was frustrating. I stopped going out for dinner with friends. I refrained from anything that might tempt me to eat fatty foods. But the results showed soon."

Let's check what Priyanka gave up for a hot bod:

Pizzas (Earlier, she would wake up to the smell of pizzas)
Rice (Her meal was incomplete without rice)
Potatoes (She thrived on them)
Chiken frankie (This was her evening snack)
Chinese food (She couldn't sleep without having Chicken Fried Rice and Chilly Chicken)
Egg yolk (She gifts herself only white egg now)
Value for money or not?
We asked fitness expert Leena Mogre whether this was really value for money. She says, "Going to the gym is not only about losing weight, but to stay fit. It should be part of your lifestyle. You brush your teeth and take a shower every day. Similarly, you must go to the gym every day."

We ask whether it is worth spending so much money at a gym. Mogre interrupts, "It is not spending, it is an investment you make for your health, to give you better returns tomorrow."

The story is not over yet!

It has been a year and three months since Priyanka has been working out. Over the last three months, she has gained the 3 kg she lost.

"My work pressure has increased because of which my workout schedules have been very irregular," says Priyanka.

That works out to Rs 15,000 spent over the last three months. And she has 3 kilogrammes added to show for it!

Priyanka now thinks there are smarter ways to save money:
i. Join a gym close to home or work
ii. Avoid extra costs, like frequent massages
iii. You don't need a personal trainer through the year.

What do YOU think? How much do you spend on your fitness? Do you think spending money on gyms is a necessary investment? Write to us , mentioning your name, age, profession and the city you reside in. We would love to hear from you!

Source: Wealth

Name: Omprakash Chaudhary (name withheld on request)
Age: 73
Where I live: Mumbai
What I do: I used to work in a steel company. Now, retired and resting.

IT'S been eight years since Chaudhary lost Rs 35 lakh at the stock market, but he is still recovering from the loss. "The only thing that's churning in my mind is, I need to recover the money somehow, and pay back all creditors," he says. He had no idea how the markets work.

But his younger brother Narayan made good money. So why not him?

The first investment
In 1996, when Chaudhary was 62-years old, he made his first investment of Rs 40,000. He invested in Wipro, Infosys, Associated Cement Companies (ACC) and Gas Authority of India Ltd (GAIL).

"This was my strategy -- buy shares in the morning and as the price shot up, sell it the same day before the clock strikes 3.30 pm." His highest one day profit was Rs 30,000. This obviously encouraged him to invest more. It worked well for him. His younger brother, on the other hand, had invested for long term. He hardly did any day to day trading

The crash
"In 1999-2000, the IT sector went bust and I made huge losses. I would buy shares blindly and sell them in the evening. This habit was a big mistake. I was suffering a loss every day. Worse, I would sell it off before the markets closed."

Bogus companies
"My younger son would hear the buzz in the market. Little did he know that bogus companies called 'Ahmedabadi companies' were doing the rounds. It seems the promoters were from Ahmedabad and they knew the drawbacks of the stock market."

"We would buy their shares when the rates had already increased. Then suddenly, these companies would shut down and take off with all the stocks from the market," he shares. Chaudhary had already lost Rs 10 lakh.

Borrowing to invest
Then came a time when he realised there was no money left to invest. "I started borrowing money from others to recover my losses. This did not help. By then, I owed Rs 25 lakh." He borrowed Rs 20 lakh from his younger brother and Rs 5 lakh from a friend. By now, his creditors refused to lend him more money. Today, he is 73 and still trying to pay back his creditors. He has not been able to return his debt to any of his creditors.

Is the stock market for rich people?
Chaudhary believes that investing in equities is a good idea for those who have lots of money. So, even if you lose, there is no problem.

Chaudhary is now back to the stock market with a ray of hope in his heart. He has invested in two stocks -- Rana Sugar and Maharaja Shree -- but their prices have reduced to half in the last two years.

He does not favour his sons getting into the stock market. He says, "The stock market is no different than gambling!"

We spoke to Yogesh Chabbria, founder of GSIFS.com about Chaudhary and his first thought was that Chaudhary viewed the stock market as a gamble and not an investment. Well, here is Yogesh advice.

Rule number 1: No day trading
It is a proven fact that those who indulge in day trading, either lose lots of money or they go bankrupt.

For any company to prove itself, it takes at least two years. If you are a farmer who wants to grow mangoes, you sow mango seeds on your farm. Next day, your friend tells you oranges will do better. You replace the mango seeds with orange seeds.

The day after, another friend suggests apples are the best bet. So you sow apple seeds.

In the process, all your money is spent on seeds, fertilisers and other raw materials with no fruit at all. To enjoy fruits, you will have to wait for at least two years.

To cut a long story short, day trading has not done anything better for anyone.

Rule number 2: Invest in knowledge
All you need to get into stock market is basic common sense. Buy stocks of a company only if you see their products on streets.

If you are planning to invest in a Maruti car, check whether there are Maruti cars running on the streets. If people like the product, it means the company will do good and will give good returns.

Since Chaudhary was working in a steel company, he could have any steel company because he has the knowledge of the same. Cement and steel is definitely required for so many constructions coming up.

Use simple logic and invest in companies you have heard of. People try hard finding companies. Invest in simple companies whose operations you can easily understand.

Rule number 3: Ignore rumours!
If you are confident about the company you have invested in, leave it. Ignore rumours.

Rule number 4: You do not need crores
It's a myth that you need lots of money to start investing. If Chaudhary had stayed invested with Rs 10,000 in Infosys in the beginning, today it would have been worth nearly a crore."

Similarly, today, even if you are investing a small amount in a company you are confident of, it is sure to grow a lot more after ten years.

Rule number 5: Get professional help
Often, in the haste to get rich fast, we lose patience and make some wrong decisions. Remember, there is always a doctor for your finances, whose advice is medicine for your money.

The choice is yours!

Source: Wealth

By Kamiya Jani, Moneycontrol.com
Date of publishing: 2006-11-16 17:11:41

Penalty due to non-payment of bill is not new to anyone of us. And quite obviously, who likes the long procedure of writing a cheque, standing in a long queue and then ensuring that the particular amount is available in your bank account? Similarly, Mr Sharma, who is on business tour for at least 25 days a month, finds it difficult to clear his dues on time because of his busy schedule.

He, like many of us, was possibly not aware of the online services, banks are offering these days. With just a click, all his dues would have been cleared long back. However, it's never too late to mend.

Indian banks are trying to make your life easier. Not just bill payment, you can make investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking base has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank's customer base is registered for Internet banking."

To get started, all you need is a computer with a modem or other dial-up device, a checking account with a bank that offers online service and the patience to complete about a one-page application--which can usually be done online. You can avail the following services.

Bill payment service

Each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills.

To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. One-time standing instruction will ensure that you don't miss out on your bill payments due to lack of time. Most interestingly, the bank does not charge customers for online bill payment.

Fund transfer

You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services.

Credit card customers

Credit card users have a lot in store. With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. Not just this, they can also apply for an additional card, request a credit line increase and God forbid if you lose your credit card, you can report lost card online.

Railway pass

This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is limited to Mumbai, Thane, Nashik, Surat and Pune. The bank would just charge Rs 10 + 12.24 per cent of service tax.

Investing through Internet banking

Opening a fixed deposit account cannot get easier than this. You can now open an FD online through funds transfer. Online banking can also be a great friend for lazy investors.

Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account.

Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system.

So you need not worry about filling those big forms for mutual funds, they will now be just a few clicks away. Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts.

Recharging your prepaid phone

Now you no longer need to rush to the vendor to recharge your prepaid phone, every time your talk time runs out. Just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes.

Shopping at your fingertips

Leading banks have tie ups with various shopping websites. With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

Internet banking versus traditional method

Inspite of so many facilities that Internet banking offers us, we still seem to trust our traditional method of banking and is reluctant to use online banking. But here are few cases where Internet banking will turn out to be a better option in terms of saving your money.

'Stop payment' done through Internet banking will not cost any extra fees but when done through the branch, the bank may charge you Rs 50 per cheque plus the service tax.

Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to.

On the other hand, in a traditional method, you get quarterly statements from the bank and if you request for a statement at your required time, it may turn out to be an expensive affair. The branch may charge you Rs 25 per page, which includes only 30 transactions. Moreover, the bank branch would take eight days to deliver it at your doorstep.

If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost."

Security Precautions

Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers.

Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

Link to this article: Moneycontrol.com, Rediff.com

Property prices have just been going up and there is no looking back. As Sanjeet Narain, Director of commercial property at Narain Corporation, says: "Property appreciation is much stronger than stock markets. Stock markets can probably crash down anytime whereas property rates do not drop down that fast."

Quite a few investors are looking into it as a flourishing option. However, with prices reaching a peak, it is quite understandable to invest in real estate market but getting returns out of it is a little confusing.

The first thing that would come to your mind is 'rent.' Giving your property on rent is one of the best ways to get returns out of property. Not just that, you silently also enjoy the capital appreciation.

Therefore, if your budget allows, you can invest in property and get good regular returns with little risk. People with a low budget would want to stop reading ahead. But if you take a loan from a bank and buy a property from that, you can use the rent earned from the property to pay your EMI (equated monthly installment). Although you may be at no profit no loss situation, but aren't you building a property as an investment for your self?

There are different ways of earning rent depending upon the kind of property that you buy.

A. Commercial Property

If you own a commercial property, you have a lot of choices in store for you. For renting a commercial property, one has two options -- retailers and office occupiers.

1. Retailers

Depending upon the city, area and location, the rent differs for each of the below options. A simple rent every month can work like a salary for you, that too without working. Rather than keeping your property idle, the options given below can help you to extract money from your property, which can do wonders for you.

Franchisee

Giving your property to any well-renown brand is another lucrative option. Since the multinational companies have realized the potential of India, they have been trying to grow the number of outlets in India.

Like, McDonalds, which has so many outlets in India especially in Mumbai. Similarly, may other brands like Pizza Hut, Barista, Caf� Coffee day, etc. may be waiting for you.

Rent may not be the only way to earn out of here, the other way would be asking for a profit share every month. You give them a place to work and they give a part of their profit. Different brands function differently, depending upon your negotiations with them, you can either decide on the monthly rent or earn by the profit sharing basis.

Rental rates of commercial property in Mumbai (as told by Sanjeet Narain)

Mumbai  Rental rates (per sq ft):

• Bandra Kurla Complex:----- Rs 200-250 per sq ft
• Andheri (West) :----- Rs 90-120 per sq ft
• Andheri-Sakinaka:----- Rs 40-60 per sq ft
• Malad:----- Rs 40-60 per sq ft
• CST Road-Kalina:----- Rs 125-175 per sq ft

2. Office Occupiers

These office occupiers basically include all Software companies to financial institutions to telecom companies. According to Sanjeet, ideally, the area required for the following options should be anywhere between 1,000 sq ft and 5,000 sq ft (excluding the pay and park option, which could be more than 5000 sq ft).

a) Multinational Companies and Financial institutions

India's cheap labour and high purchasing power has attracted quite a many multinational companies to start up their business in India. These MNCs never buy a property in India; they always prefer to take it on rent. These MNCs generally give a high rent and are quite regular with their payments. Examples would be BPOs, software companies, financial services.

b) Banks

With the number of banks growing in India, all banks want to reach out to the remotest area of the city. You never know if they want to open a branch where you have bought a property. If your area is big enough for a bank to operate, you must look into the newspapers where they put in the

advertisements and invite tenders. You can easily earn a good amount depending upon the area.

You can be sure that banks are generally quite regular with their rent payments. Banks normally take the property on lease i.e. more than five years, says Narain. The rent basically depends upon the total area and the location but you can be sure that its pays off quite high.

c) Business Centre Agreement

"This is another option of earning money and saving tax. Generally, you have to pay tax on the rent you earn but in Business Centre Agreement, you term your rent as service charges and hence you save property tax," informs Sanjeet. When the landlord gives his furnished property along with various amenities like telephone, electricity or computers to the client, he will take rent from him but the rent will be termed as service charges.

This helped the landlord to save his tax, which he would have had to pay on rent. However, now the government levies 12.24% service tax on service charges as well, says Sanjeet.

Nonetheless, this is another good option to earn from your property. So, if you have an ideal furnished place, give it on rent today. The rent or rather the service charges are higher here since the client does not have to spend much on the infrastructure.

d) Pay and Park

If you have an open plot in the midst of the busy city, converting it to a parking area is one of the best options. With the growing number of vehicles, parking seems to be the biggest problem for all the drivers. You can resolve their problem and also make money out of it.

Generally, it costs Rs 20 for parking a car for an hour. Therefore, even if there are 200 vehicles per day, you can easily earn Rs 4000 per day, which further means Rs 1,20,000 per month. Isn't it a great deal? Think about it.

In metro cities, you can get a return of about: (as told by Sanjeet Narain)

• Mumbai:----- 10-12%
• Delhi:----- 8-11%
• Bangalore:----- 8-10%
• Hyderabad:----- 10-12%
• Kolkata:----- 8-11%

B. Residential Property

The location and the living standards are two important things for residential property, rightly said by Chetan Narain, president, India Institute of Real Estate. The rent generally differs depending upon the location. One needs to first set the right budget to invest in residential property.

According to Chetan, "Commercial property can give you higher returns as compared to residential property. One can 10-12% return in commercial property whereas residential can give you about 5-6%, exclusive of taxes."

However, if you have bought second homes as an option, or bought a property in any other city, grow your bank balance by giving it on rent. Here are the options:

Company leases

Giving your property to corporate employees is one of the safest options. Their respective companies generally give the deposit and the rent. Having a legal document stating the rent and number of months is advisable.

Individual leases

An individual may pay his rent and security deposit for himself and his family. This is the most common trend for residential property. The house is generally given on 11 months agreement.

Paying guest (PGs)

Individuals from different background and families stay in one house and the rent is paid individually. Here, the landlord would stay in one of the rooms and may give his other rooms on rent. There is no legal document, which is signed between the landlord and the PGs. The deposit and the rent is quite less in this case.

Guest houses

A furnished apartment with a cook and a housekeeper given on a rent for a short period of time would fall under this category. These guest houses are quite common at hill stations and in cities; they are generally rented on occasions like wedding or some celebration.

Service apartment

A completely furnished home with all amenities can also be given on rent. Here you can earn a higher rent but your personal belongings may be at stake.

Precautions to be taken

"Most of the times, the commercial property is not given on rent but on leave and license agreement, which means that the landlord gives his property to the client for less than five years. If the property is given to the client for more than five years, then it is said to be given on lease," informs Sanjeet Narain.

In case of lease, you have to pay 5% stamp duty of the lease period. Whereas, in case of leave and license agreement, the maximum stamp duty to be paid would be approximately Rs 50, 000.

Here are few of the points, recommended by Ramesh Nair, that are to be taken into consideration at the time of negotiations:

• Profile of the occupier
• Security Deposit
• Lease term
• Maximizing rent
• Escalation of rent at the time of renewal
• Maintenance cost
• Parking
• Signage
• Power availability
• Competitor clause
• Repairs and alterations
• Property tax
• Termination rights
• Lock-in period
• Force majeure
• Various indemnity clauses
• Sub lease clause

Disadvantages of giving your property on rent

There are a lot of advantages of giving your property on rent, but there are also a few disadvantages.

• Landlord cannot use his property for personal purposes once it is given on rent. However, it is just for a particular period of time as negotiated.
• Sometimes, the tenant may delay the monthly rent.
• Few tenants don't vacate the house on time. They keep postponing the vacating date.
• The occupant may mishandle personal belongings like bathroom fittings, walls and so on.

However, these disadvantages can be prevented if things are made clear during negotiations.

Around six months ago, I had to stop over at Dubai airport for a couple of hours. For being known as a shopping destination, I was just checking out a few cosmetic brands. My eyes caught attention of a MAC lose compact which was priced at 130 Dhms, which is Rs 1560. Tried it and quite liked it. Thought it was quite expensive as compared to the other Chambor products which I generally use. But I still bought it!

The story is not over but yeah the compact is over.

Two days ago, while I was loitering aroud the streets of Bandra, Mumbai, I saw the the same MAC compact with a roadside hawker. Stunned! Curious to know its price, I found out that he was selling the same lose compact for Rs 180. I asked him if it was genuine product, how did he get his hands on him and why the hell is he selling it at a low price?

He clarified that all these are genuine products but all rejected by customs. So, was this all used product? He said we do not sell used ones. It is all fresh maal. I did not probe further and continued what I am best at. Bargaining!

I bought the same product for Rs 100! Six months ago, which was for Rs 1560, today I get it for 100 bucks. I was anxious if this was really unfeigned. But it was just a matter of Rs 100, I bought it. To my fortune, my face still looks the same. I tried, tested and applied it and is giving me the same result as Rs 1560 one.

That's why I call it a good deal. Sometimes it is good to take a chance.

By Kamiya Jani, Moneycontrol.com

Now that credit cards have given you the power to shop unlimited without worrying about the cash in your pocket, you have the power to spend money like there is no tomorrow. And since you are getting reward points for spending your money, who would want to stop shopping anyways?

There has been a rage of reward programmes, which are being offered by most credit card companies to promote card usage among customers. Each time a card-holder uses his/her credit card, he/she earns a certain number of points. After accumulating a minimum number of reward points, the customer can redeem them at participating merchant establishments for a variety of rewards/ gifts, as detailed in the rewards programme catalogue.
For example, ICICI Bank’s credit card offers a scheme wherein for every transaction of Rs. 200, you get one reward point. Once you have accumulated 500 points (which further means spending Rs 1 lakh), you may get fuel vouchers or gift/sports articles. 

Rewards have started to become more significant as card providers have widened the horizon of redeemable gifts to include not only merchandise, apparel, dining, entertainment, gift vouchers, discount coupons and magazine subscriptions, but also financial services, fee waivers, credit card upgrades, air miles and so on. General Manager of ICICI Bank, B Madhivanan says, “These reward programmes are more popular among the co-branded cards since it is adding relevance to the expenditure they make.”

Delivery charges
Redeeming gifts is fairly easy. You just have to book your gift online or over the phone, or fill out a redemption form and submit it at the bank branch. The gift will be delivered to your mailing address within 15-20 days of placing the order. However, you must always check with your credit card provider if any delivery charges would be levied. While most of the companies deliver it for free of cost, there are a few companies that demand delivery charges. 

Shell out some cash too

If you are getting free gifts or vouchers without spending extra money, it is definitely a good deal. But you need to be careful when asked to put in extra cash to redeem a gift along with your points. For example, if you may want to order a vacuum cleaner from a reward catalogue, you may have to pay Rs 975 extra apart from contributing 2100 points. In such cases, it would be wise to find out the actual price of the product and then compare it with the monetary value of the points plus the extra cash that you have to shell out. You may discover that it is cheaper to buy a vacuum cleaner rather than wasting your points.

Lapsed points give no returns

The reward points in your credit can lapse under two situations. One, when the bank permanently blocks your account for non-payment of bill. The bank can forfeit your reward points. Second situation is when you yourself cancel your credit card. But in the second case, banks generally give you a grace period from 15 days to a month or so to use the balance reward points.

Restrictive points

We might feel happy thinking that whatever transaction we make through our credit card, we are sure to get the reward points for this. Stop! There may be a hidden clause to this. There are a few banks like Standard Chartered, which do not give any points when you use your card at the petrol pump. Also, no reward points are given if you use your card for cash withdrawals; this is the same for almost all the banks. 

And once you’ve made up your mind to accumulate points, try to find means to maximize them. Purchasing high-value products will always help to get more reward points in less time. Like, if you buy a television worth Rs 40,000, and have the funds on hand to pay for it, using a credit card can immediately get you 200 points. Similarly, if you are planning a holiday, using your credit card wherever possible can get you reward points. But make sure that you pay your credit card bills on time and do not keep any dues. If you do so, you will be levied with interest rate and later higher interest rate. And that is definitely not a trade off for collecting reward points.

We all love free gifts and they are always welcomed. But be careful and make the most of it!

Link: http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=234115 

Kamiya Jani | Moneycontrol.com

Gold is a favorite investment avenue for Indians. Be it a festival or any celebration, it seems incomplete without a gold purchase. And with Diwali just around the corner, the auspicious time to buy gold has reached it's peak. Sources in the World Gold Council told moneycontrol, "The business in jewellery stores has been booming in the last fortnight all across India. Even a so-called not-auspicious period like the Shraadh could not dampen the enthusiasm of the consumers. Now that the festive season is upon us, we see that gold should have a very good season this year.”

The Indian consumer had held back their gold purchases in the first half of the year due to the huge fluctuations in the gold price. The recent fall in gold prices have seen consumers rush to jewellery stores as they see the prices to be an attractive bargain.

Attractive as it may seem, moneycontrol tries to find out whether gold is a good buy at these levels and if you must buy gold, how much do experts recommend.

Allocate not more than 10-15% of your portfolio to gold
Zankhana Shah, a financial planner says, “The timing to buy gold is not important. What’s important is how much you allocate. According to me, only 10 - 15% of your portfolio should be allocated to gold. If you already have that much, do not spend your money on gold anymore." She adds further, "If there is any upcoming marriage, then you have no choice but to buy gold because then it is a necessity. However, if you want to buy gold because you have been doing so every Diwali, just buy it as a token. Looking at the aggressive growth of equities and also the inflation rate, gold is definitely not a very good investment option."

Gold is a preserver of value over time
The World Gold Council believes that as a global currency, an investment and simply a thing of beauty, gold has held an allure for thousands of years. “For an investor, that allure is largely to do with gold’s proven ability to preserve value over time and be a good diversifier within a portfolio. Even a small weighting of gold in an investment portfolio can help reduce overall risk.”

Invest systematically in gold
Industry expert, Bhargav Vaidya points out that Indians do not look at gold as a one time investment; they have been looking at it as a long time religion.  “Investing in gold every month through SIP (systematic investment planning) makes sense. Right now, the prices are good and one must buy it. Ideally, I recommend that if you are risk averse, allocate 15% of your portfolio to gold. Otherwise, only 5% of an individual portfolio should be allocated to gold."

Shah recommends that one must review and objectively analyse how gold can affect your total finances. If you are looking at gold from an investment point of view then buying gold bars is advisable. Ask yourself these questions before buying gold:

• How much do I already have? (Ideally, your total gold holding must not be more than 10-15% of your portfolio)

• How is it supporting in overall diversifying of your portfolio risk and how much is it contributing returns?
• What is the focus of buying gold? Is it out of emotional attachment or your likings for it or you have accumulate gold for your child’s wedding (which is a necessity)?

One has to keep in mind that although jewellery has a dual purpose of adornment and investment, it should always be there atleast to safeguard us against the uncertainties of life.

Link: http://tinyurl.com/39fpf6

From the day a child is born, parents fear for his/her well-being, safety, happiness and future. Securing the child's future is one of the greatest concerns. You can make it easier by opening a savings account for your kid in the same bank as yours. But how beneficial are these accounts for you and your kid?

Most of the leading banks like ICICI Bank, HDFC Bank, Citibank, Standard chartered Bank and so on have very interesting schemes for your children. You can open your kid's account in a bank only if you have an account in the same bank.

Citibank offers a ‘Junior Account’ for kids, where the minimum deposit of Rs 5000 is mandatory and every month, a parent/guardian can transfer a specific amount to the child's account (subject to a minimum of Rs 500) through a standing instruction. The scheme offered by other banks is also more or less the same but probably the minimum deposit may differ. 

According to Investment Advisor, Sanjay Matai, saving account for kids is a good idea since it helps the kids to understand the saving patterns, interest rates and so on. “Kids can deposit their monthly pocket money into their savings account and after some point of time, they can utilize this money, the way they want.”

With a good number of benefits, saving account for kids also have a few shortcomings. Lets have a look at them.

Benefits 

Account linked

Your account will be linked to your child’s account. You can deposit part of your monthly income into his/her account through standing instruction.

Saving Habit

Opening a savings account for your child is surely a good idea. With building up savings for your child’s futures, it also inculcates a saving habit in him /her right from childhood. 

Investment plans

Banks also allow you to invest the balance of the child's account in mutual funds, debt or equity products, depending on parent's preference, based on their investment goals and risk appetite. These portfolio options range from debt/fixed income instruments to diversified equity funds.

Banks also tag on benefits, such as insurance, education and accident cover, which will protect your child's future in case you die. Like, free education insurance cover of up to Rs. 1,00,000/- for your child with every 'Kids Advantage Account' offered by HDFC Bank. These savings are sure to secure your child’s future.

Debit/ATM card

One more common thing, which is observed in these kids account, is the trend of debit/ATM cards. Banks are offering debit cards to kids at the tender age of six or seven. Kids can use these debit cards themselves and do not need their parent's approval. This helps them to become more independent and take their own decisions. They can also use the money in case of any emergency or for the educational purposes

Withdrawal Limit

There is definitely a certain amount of withdrawal limit attached to kid’s debit card. You can be sure that the kid cannot spend more than the withdrawal limit. For example, the withdrawal limit for Citibank ‘Junior Account’ debit card is Rs 500 per month. This makes sure that the child will not be able to withdraw or spend more than that.

Monitoring spending habits

Getting mobile alerts/customising triggers/signing-up for online statements will help the parents to constantly monitor the child's spending habits. ICICI Bank offers a mobile banking service, which means that whenever any transaction is made on your kids debit card, the parent/guardian will receive an SMS on their mobile phones. In this way, one can have a check on the child's expenditure. Banks also send quarter/annual statement to the guardian/parent regarding the transactions made in their kids account
Shortcomings

Kid may become spendthrift

Your child having a debit card at the age of six, sounds exciting, but this may also have an other side to it. Since the child has the complete authority over the card and does not need his/her arents approval while using it, there are chances of him misusing the card. The kid may become spendthrift without even realizing what he is doing. This may also lead to arrogance and pride if his friends do not have a debit card like he does.

High withdrawal limit

Keeping in mind the fact, that the kids would be using the card, the withdrawal limit of few debit cards is quite high. Like, ICICI bank offers a debit card with its 'Young Stars Account' that has a withdrawal limit of Rs. 2,500 per day. There are chances of him mishandling it. To add to that, the limit is by default and the guardian cannot change.

Quarter/Annual statement

Most of the banks send statement of the transactions made, quarterly or annually, to the parents. So, the parents would just know after three months or in some cases after a year about the withdrawals made by the child. Therefore, it gets difficult to keep a check on their expenditure.

However, these debit cards are voluntary, it depends upon the guardian/parent if he/she wants the child to have one.  This has both the sides to it either the kid may become independent or he will become spendthrift. You must keep track of the transactions made from the child’s debit card. 

Therefore, depending upon your child’s nature and habits, you may decide whether does he need a debit card or no. And if yes, which one? Preferably, it should be with a low withdrawal limit. However, a quarterly or annually account statement of your child's savings account will also be sent to you but also ask for a mobile banking/internet banking service.

However, there are a few things to be kept in mind if you are planning to open a kid’s account. You have to be the parent or legal guardian of the child to open these accounts. While selecting portfolios/funds, make sure that it is based on your investment goals and risk appetite.