#WeeklyUpdate #NewsPaper It’s about time to embrace the world of #Algorithms with caution. But, what is Algorithm trading? Understand the basics and get latest updates in our weekly newspaper. For more Info : https://www.myfindoc.com/research/newspaper #Update #investment #algotrading #equity #share #mutualfunds

1. YEAR -1 | Vol 1 | Issue 3 | Ludhiana | Price Rs.2/- Wednesday 18 September, 2019
Embracing the algorithmic world around us – With Caution
Humans have worked relentlessly
hard in pursuit of a custom-made
world that can function as per their
needs. Technology is at the cornerstone of
all the advances humans have made in this
quest. High-end technologies like Artificial
Intelligence, Internet of Things, Big Data,
Deep Learning etc have become
colloquiallyusedwordstoday,thankstothe
value they are adding in the life of a
common person. For example, Amazon’s
Alexa is an artificially intelligent personal
assistant that can tell you the latest news or
read out a recipe or set reminders for you.
It feeds off machine learning algorithms
that make it smart enough to have
meaningful conversations with humans.
Alexaandmanysuchsmartmachinesprove
that algorithms are the heart and soul of
the brave new world around us. Netflix
series “Westworld” and “Black Mirror” ,
among other shows demonstrate where
imagination coupled with technology could
takeusandhotscary itmightbecomeaswe
become more connected virtually, and less
physicallywithoursurroundings.
The Expense of Algorithms – Our Lives are
SpunAroundThem
Analgorithmisaprocessorasetofrules,to
be followed in problem-solving operations
by a computing machine. It can perform
calculations, data processing and
automated reasoning tasks. While staying
out of sight, algorithms keep the modern
machines running. They make them think
and act, as codified by humans. For
example, Alexa is a voice-based AI device
that is more than just attitude. A small juke
box looking device hides a plethora of
continuously evolving knowledge aided by
machine learning algorithms. Amazon’s AI
experts are using big amounts of data to
make it understand human language and
also be a better speaker. Alexa’s machine
learning algorithms learn from the speech
modulations of the professional narrators.
They fine tune the machine’s synthetic
female voice to make it as good as a real
human voice. This is one of the many
examples of algorithms being used in the
worldallaroundus.
Algorithms hide the complexity of
machines. They stow away the intellectual
property and codes away from human eyes
and only let us use the final product.
Facebook is a popular case in point. The
algorithmson theFacebookwebsitedecide
what users see in their timeline. It is
interestinghowusersdonotgettoseeallof
their friends’ posts. It is the algorithms at
work deciding what to show them.
Similarly, Google search results are unique
for everyone. The recommendations on
Netflix or Prime video are also tailored as
per unique viewing history. As a user, one
doesnotevenneedtoregisterthesethings,
but they still are critical to how we live
today. This curated world is being driven by
algorithms.
TheGoodandBadofThisWorld
Google knows when a user has been
looking for a particular book and when they
turn to the search engine, they display the
relevant ads to them. Similarly, Facebook
displays content on a user’s timeline as per
his interests. This tailoring of results brings
a better user experience on the table. It
makes internet more useful and contextual
to the user. The more the user spends time
on the internet, the better his preferences
are getting captured every send. The
crowdsourced data from different users,
applied with appropriate machine learning
algorithms, help every benefit by easier
google searches (who goes beyond page 1
any more), relevant news on facebook and
twitter, amazon suggesting what we may
buy, Expedia offering relevant trips, and
youtube showingthe videoswearelikelyto
watch. US and European capital markets
witness over 90% of trading done by algos,
onbehalfofhumans,leadingtoefficiency.
There are always 2 sides of the coin. While
there are a plenty of good use cases of this
world, there is a downside too. Is it not too
good to be true for facebook to show us the
“relevant”newsinourfeed.Orisitproneto
manipulating human minds. Recently held
US elections put the bad part in the
limelight by showing how Facebook can
manipulate user’s exposure to content and
try to influence their decision making.
Machine learning arguably evolves in any
direction without any oversight from
humans, and can be very risky and not
many understand how it may evolve. Any
fake news over the internet can control the
minds exposed to it and spur them into a
negativeaction.
And what happens when financial markets
are driven by algorithms, and something
fails, and all algorithms react in a way that
the crash becomes bigger and bigger. This
happenedduringflashcrashof2011.
It is said that there is much bias in
algorithms as well. Carnegie Mellon
University’s research showed that Google’s
online advertisement system was said to
display higher paying jobs to more males
than females. It is feared that data-based
decision making will negatively affect
humanindividualityandidentityaswell.
Can we trust humans to apply some
filtering, their own analysis, on top of the
algos curated content that they see? OR
wouldtheyblindlybelieveinalgosabilityto
make the right decision for them, without
evenrealizinghowthatmayimpactthem.
EvolutionandTheWayForward
Algorithms define the machines and their
processes today. They help devices get
smarter and connect to both humans as
well as each other effectively. As smart
machines will process more big data every
second the world over, these algorithms
will help machines and artificial
intelligence processes become even
smarter. There are hypothetical theories in
technology like the Singularity theory
which states that in the future, intelligence
of machines will surpass the intelligence of
humans. There cognitive capacity will out
run that of the humans. It will be triggered
by the runaway technological growth
spurring unthinkable changes to human
civilization.
However, this is just a theory. Since times
immemorial, humans have observed both
the positive and negative impacts of any
technology that has been embraced by
them and the algorithm-based smart
technology of today bears no exception to
this rule. Maybe regulating the use of
algorithms, ensuring users understand
what it means and how to take out the
biases. There is no denying that algorithms
are here to stay and will continue to affect
our lives in more ways than we know of
today. Saying this, it is also relevant to be
prudent while using the technology that
simplifiesourlife.
A next big opportunity for entrepreneurs
is to bring the prudence into algorithms to
manage their wider adoption diligently.
Building police bots for regulation, risk
management, compliances, kill switch etc.,
in the future world driven by machines,
shallbecriticaltoo.
BY Kunal Nandwani
Co-Founder & CEO at uTrade Solutions
Pvt. Ltd.
Govt announces fresh
incentives to boost
exports and housing sector
inance Minister Nirmala
FSitharaman has announced a
fresh set of measures worth
around 70,000 crore rupees to boost
exports and housing sector. She said
that the government will provide a
10,000 crore rupees special window
withanaimtohelpcompleteongoing
affordable and middle-income
housingprojects.
The housing projects considered for
thespecialwindowhavebeenlimited
to non-NPA (Non-Performing Assets)
and non-NCLT (National Company
Law Tribunal) projects. This will
benefit roughly 3.5 lakh projects
across the country. The other key
incentives include extending the
scheme of reimbursement of taxes
anddutiesforexportpromotion,fully
automated electronic refund for
Input Tax Credits (ITC) in GST, revised
priority sector lending norms for
exports and expanding the scope of
Export Credit Insurance Scheme
(ECIS).
An inter-ministerial working group
has also been formed to monitor
export finance. Accordingly, the
scheme for Remission of Duties or
Taxes on Export Product (RoDTEP)
was announced which will replace
Merchandise Exports from India
Scheme (MEIS) for textiles. In effect,
RoDTEP will more than adequately
incentivise exporters than existing
schemes put together. Textile and all
other sectors which currently enjoy
incentives up to 2 per cent over MEIS
will transit into RoDTEP from January
1, 2020. Mrs Sitharaman also
announced that the Export Credit
Guarantee Corporation (ECGC) will
expand the scope of export credit
insuranceservice(ECIS).
Finance Minister also said that India
will organise annual mega shopping
festivals at four locations with four
themes across the country in March
2020.
Brief Headlines:
India'sGDPgrowthrate'muchweaker'thanexpected:IMF
The Indian economic growth slowed to a seven-year low to 5%
inApriltoJunequarterfrom8%ayearago.
ChineseIndustrialOutputExpandsAtSlowestRateSince2002
China's Premier Li: Very Difficult For China's Economy To
Maintain6PctGrowth
US Pres Trump Vows 'Locked And Loaded' If Iran Was Behind
Attack
UKEmployersCutGrowthForecastsAsBrexit,GlobalSlowdown
Weigh
DollarFallsAsOilAttacksSendInvestorsToSafety
OilJumpsTheMostEverAfterDroneAttackCutsSaudiSupplies
GoldGainsAsAttacksOnSaudiOilPlantsLiftSafe-HavenBets
StockFuturesSlipAfterAttackOnSaudiFacility
ChineseGroupsTurnSellerToShedUSD40BlnInGlobalAssets
MoreThan49,000UAWStrikeAgainstGeneralMotors
Blackstone Seals USD4.7Bln Deal To Buy Canada's Dream Global
Reit

2. Wednesday 18 September, 2019
STOCK REPORT
Name Current Price
Market
Capitalization
Price to
Earning
Industry
PE
Historical
PE 5Years
3M India 20352.55 22937.32 74.4 44.79 74.36
A B B 1348.05 28566.31 204.19 19.73 92.32
Aarti Inds. 1583.3 13793.27 26.66 13.58 20.08
AAVAS Financiers 1508.55 11792.09 61.69 19.84 51.32
Adani Power 64.6 24915.83 56.64 12.78 20.88
Adani Transmissi 235.6 25911.53 42.55 12.78 22.15
AIA Engg. 1572.15 14825.37 37.75 9.62 28.42
Apollo Hospitals 1458.15 20285.78 63.02 35.28 55.01
Astral Poly 1346.75 16232.35 78.53 15.98 55.08
Atul 3736.9 11083.65 23.37 11.13 19.5
Balkrishna Inds 769.6 14877.69 20.44 16.52 18.06
Bank of Baroda 99.95 38448.04 35.45 21.86 17.26
Bata India 1565.95 20126.77 57.86 17.69 41.03
Bayer Crop Sci. 3148.35 10809.42 65.06 45.22 42.18
Berger Paints 368.35 35771.56 66.5 55.08 50.82
Canara Bank 203.4 15321 25.34 21.86 15.23
Container Corpn. 532.3 32432.74 27.23 16.82 26.42
Divi's Lab. 1628.35 43227.58 32.41 14.78 26.78
Dr Lal Pathlabs 1324.45 11038.18 52.81 35.28 49.53
Godrej Propert. 958.1 24146.36 78.21 16.13 64.95
Havells India 673.1 42122.79 55.79 19.73 43.35
Hexaware Tech. 375.9 11214.51 18.72 13.08 18.01
Honeywell Auto 27005.5 23872.86 62.62 19.21 55.96
Indraprastha Gas 328.7 23009.03 27.75 15.09 21.05
Name Current Price
Market
Capitalization
Price to
Earning
Industry
PE
Historical
PE 5Years
Info Edg.(India) 1897.75 23212.55 283.81 19.85 165.1
L & T Infotech 1606.85 27916.88 18.48 13.08 17.75
MRF 60119.95 25490.86 23.08 16.52 16.82
New India Assura 107.45 17707.76 79.51 49.23 40.3
Oberoi Realty 546.85 19883.59 30.15 16.13 27.91
P & G Hygiene 10326.75 33521.39 79.98 69.4 59.69
P I Inds. 1284.6 17731.42 41.54 16.44 29.33
Petronet LNG 266.3 39945 18.76 15.09 17.21
Piramal Enterp. 1903.5 37859.44 18.94 18.21 18.91
Prestige Estates 308.65 11574.38 29.64 16.13 24.17
Relaxo Footwear 484.45 12019.29 67.06 17.69 42.41
Reliance Nip.Lif 262.25 16050.68 32.83 22.16 30.44
SRF 2774.3 15946.82 22.88 10.2 19.59
Supreme Inds. 1130.4 14359.12 36.69 15.98 29.09
Syngene Intl. 320.5 12820 38.09 18.21 35.98
Tata Global 259 16346.26 37.62 12.73 29.86
The Ramco Cement 741.85 17476.26 30.51 20.09 29.53
Torrent Pharma. 1721.25 29126.99 37.2 18.21 31.59
Trent 455.2 16181.79 109.77 56.65 76.91
UPL 578.15 44171.99 32.48 16.44 20.19
Vinati Organics 2287.8 11757.24 39.11 14.78 24.41
Voltas 637.55 21095.56 40.19 23.8 29.28
Whirlpool India 1649.7 20929.74 48.21 31.23 42.85
Yes Bank 68.55 17482.37 30.47 21.85 19.48
Zydus Wellness 1760.95 10154.37 45.22 19.68 33.05
oreign portfolio investors
Fturned net buyers in this
month so far, pumping
more than 1,800 crore rupees
into the capital markets, after
remainingsellersfortheprevious
twomonths.
Experts said, the latest inflows
have been triggered by
improving investor sentiment on
thebackofeasingUS-Chinatrade
w a r a n d s u p p o r t i n g
macroeconomicdata.
According to the latest
depositories data, foreign
portfolio investors (FPIs)
withdrew around 2,031 crore
rupees from equities but put in
3,872 crore rupees in the debt
segment during 3 to 13 of this
month. It translated into a total
inflow of around 1,841 crore
rupeesintothecapitalmarkets.
Prior to this, FPIs pulled out
around 5,920 crore rupees in
August and around 2,986 crore
rupees in July from the domestic
capital markets (both equity and
debt).
FPIs turn net buyers, pumps Rs 1,841 cr
in first half of September
Atul Auto 25 20-09-2019
Asian Granito 6 20-09-2019
Anant Raj 12 20-09-2019
Sunteck Realty 150 20-09-2019
Jai Corp 50 20-09-2019
LT Foods 15 20-09-2019
PNC Infratech 25 20-09-2019
PTC India Fin 8 20-09-2019
Parag Milk Food 10 20-09-2019
PPL 12 20-09-2019
PTC India 40 20-09-2019
Rajesh Exports 100 20-09-2019
CARE Ratings 120 19-09-2019
Igarashi Motors 49 19-09-2019
Glenmark 200 19-09-2019
Lovable Lingeri 5 19-09-2019
Minda Corp 22.5 19-09-2019
MMTC Ltd 30 19-09-2019
Repco Home 25 19-09-2019
R.J. Shah 50 19-09-2019
Radico Khaitan 60 19-09-2019
SML Isuzu 30 19-09-2019
Marksans Pharma 5 19-09-2019
Time Techno 90 19-09-2019
Venkys 80 19-09-2019
Vardhman Text 175 18-09-2019
Relaxo Footwear 90 18-09-2019
Shakti Pumps 50 18-09-2019
Vardhman Hold 50 18-09-2019
Himadri Special 15 17-09-2019
HT Media 20 17-09-2019
Prestige Estate 15 17-09-2019
Ruchira Papers 22.5 17-09-2019
Zee Learn 10 17-09-2019
COMPANY NAME Dividend %
Ex-
Dividend
Dividend Declared by Companies
he country's foreign
Te x c h a n g e r e s e r v e s
increased by 1.004 billion
US dollars to 429.608 billion
dollars in the week to September
6. As per latest RBI data, the
reserves had touched a life-time
high of 430.572 billion dollars in
Augustthisyear.
Expressed in US dollar terms, the
foreign currency assets include
the effect of appreciation or
depreciation of non-US units like
the euro, pound and the yen held
intheforeignexchangereserves.
Foreign exchange reserves increased in
week to Sept 6
Indian Railways have
announced certain
Freight incentives to
give a boost to the
economy. The busy
season surcharge of 15
per cent on freight, which
is levied between 1st of
October to 30th June has
beendeferred.
The five per cent Supplementary
charges applicable on loading on
mini and two-point rakes has also
been waived off. This is likely to
boost loading of smaller cargo
sizes and help cement, steel, food
grainsandfertilizersloading.
A discount of 25 per cent in
haulage charge of containers has
been given to encourage the
movement of empty and
flat to ports thereby
i n c r e a s i n g l o a d e d
container traffic in return.
It is expected to enhance
t h e p r i c e -
competitiveness of
Railway and other modes
of transport and expand
f r e i g h t b a s k e t b y
capturingnewtraffic.
The number of rakes to be
provided for the auto sector has
also been hiked in a bid to
increasefreightloading.
Railways announce slew of Freight
incentives to give boost to economy
Down
2 Investing a fixed sum at regular intervals (acronym)
3 Term used for rise in prices
5 Not primary market
6 Wall street of India
8 Fall in value of an asset over time
10 Extra days offered by an insurance company to
the policy holder to pay premium
12 Mutual fund scheme that invests in shares formin
an index
14 Shares offered by a company to its shareholders
for free
17 Protection offered by an insurance company to its
policy holders
22 China's currency
Across
1 Term used for a physical deformity
4 Repaying your loan before its due date
7 Returns after reducing taxes and inflation
9 Term used to describe a stock market that is not stable
11 What is paid to an insurance company by the policy
holder to continue his insurance policy
12 First offer made by a company of its shares to the public (acronym)
13 A mutual fund scheme that invests in debt and equity in
nearly equal proportion
15 Possibility of loss
16 Flagship index of Bombay Stock Exchange
18 Not a liability
19 Interest rate that is not fixed throughout the term of the loan
20 What is paid by a borrower to the lender
21 Regulatory authority of capital markets in India (acronym)
23 Amount received on cancelling an insurance policy
24 Converting shares back to paper form
CLUES
First 3 Correct Entries will receive a couple of Movie Tickets
Send your Responses at Helpdesk@myfindoc.com

3. Wednesday 18 September, 2019
Trading Psychology
A war can be taken as an
analogy for stock market trading.
Lets try to compare and find out
somecommonfeatures.
In a war one needs a detailed
strategy, weapons, detailed
planning with plans for exit too.
War is never fought without full
preparation. Same applies to
stock market trading, however
rarelypeopledoso.
According to me, weapons for
stockmarkettradingare:
1. Detailed understanding of
human psychology (One own-
self)
2.Strategy
3.Discipline
4.Riskmanagement
5.Technicalstudy.
Oneneedstolearntouseeach
of these weapons, like a skilled
soldier does. If one does not do
any prepration or sharpens his
skills then trading is like a
Labyrinth (“Chakraview”), easy
to enter but very tough to exit.
Over the next series of articles
we will discuss each weapon in
detail.
For this week, lets discuss
about:
HumanPsychology
For example: Let’s play a rapid
fire.
1.NameaFurnitureitem?
2.NameaCricketer?
3.Nameaflower?
4.ThinkofaColour?
5.NameaSinger?
Majority of results have these
a n s w e r s : C h a i r, S a c h i n
Tendulkar/ Virat Kohli, Rose, Red,
LataMangeshkar
As majority of people think in
a similar way, in the stock market
too majority of people trade in a
similar way. Lets take for
example: Most people will buy a
stock @Rs 200 will sell it @Rs
202. Next day if the stock falls to
@195, they will buy again and
sell it @198. Now for many days
the person will have daily small
profits, however one day when
market action comes people get
trapped. Think next the price
falls to @190 now the trader
earning daily profits would again
buy thinking to sell it at @194,
however as the long term trend
isdownward,oncemarketaction
comes the share starts falling
goingto@186,the
inexperienced trader buys
morethinkingthesharewillgo
back to @ 194. Next day the
share falls more. This way the
inexperienced trader keeps
Averaging down, which is
dangerous in trading. Similar
thing happens when the share
price is going up. Example: if
share price reaches @210 they
willstartshortsellingitexpecting
ittocomeback.
Hence, the profits for such
people are small and losses are
huge. One huge loss wipes out all
daily profits. Why does this
happen? As this is basic human
nature(Psychology).
There are no pre-plans or pre-
defined exits before entering
into the trade. Once the trade
starts moving in opposite
direction people panic, make
wrong decisions, start making
lossmakingtrades.
Since95%ofthepeoplelosein
trading and most of the people
act in a similar way due to basic
human psychology, stock market
success requires a different
psychology. By seeing how most
of people act, understanding
basic human psychology we can
detect these patterns and
understand the flaws in our own
psychology.
So one needs a very deep
understandingof himself/herself
and of how others act in the
market and which kind of
mistakes they make. This way we
can slowly sharpen our
psychology and make it a useful
weaponinthetradingwar.
by Navneet Dang
Stock Broker & Professional
Trader for Last 15 years
Iran dismisses US accusations
it was behind drone attacks
on Saudi oil installations
ran has dismissed US accusations that
Iit was behind drone attacks on Saudi
oil installations, suggesting the United
States was seeking a pretext to retaliate
againsttheIslamicrepublic.
Foreign ministry spokesman Abbas
Mousavi in a statement in Tehran said
today that such fruitless and blind
accusations are incomprehensible and
meaningless. Secretary of State Mike
Pompeo condemned Iran after Saturday's
attacks, which knocked out half of Saudi
Arabia'soilproduction.
Yemen's Iran-aligned Shiite Houthi rebels
claimed responsibility for the drone
strikes, but Pompeo said, there is no
evidencetheattackscamefromYemen.
Mousavi said, the US allegations over the
pre-dawn strikes on Abqaiq and Khurais in
Eastern Province were meant to justify
actionsagainstIran.
Tehran and Washington have been at
loggerheads since May last year when
President Donald Trump pulled out of a
2015 deal that promised Iran relief from
sanctions in return for curbson its nuclear
programme.
Wholesale price-based inflation
unchanged at 1.08% in August
Wholesale price-based inflation
was unchanged at 1.08 per
cent in August, reinforcing the
expectation of a rate cut by the RBI in the
Octoberpolicyreview.
Experts said, although the RBI takes into
account the Consumer Price Index-based
inflation while
d e c i d i n g i t s
monetary policy
stance, the decline
in core inflation has
strengthened the
caseforaratecut.
According to the
d a t a r e l e a s e d
yesterday by the
Ministry of Commerce & Industry, the
increase in prices of certain food items
waspartiallyneutralizedbystaticpricesof
manufacturedgoodsduringAugust2019.
The Wholesale Price Index based inflation
was 1.08 per cent in July and 4.62 per cent
inAugustlastyear.
Inflation in food articles rose to 7.67 per
cent during the month as against 6.15 per
cent in July mainly on account of rise in
prices of vegetables and protein-rich
items.
Vegetable inflation went up at 13.07 per
cent from 10.67 per cent in the previous
month. However,
fuel and power
basket continued to
witness deflation at
4 per cent in August
as against 3.64 per
centinJuly.
The retail (CPI)
inflation in August
rose marginally to
3.21 per cent as against 3.15 per cent in
the previous month mainly due to costlier
food items, government data showed last
week.
The Reserve Bank has cut key repo rate by
110 basis points during this year by
effectingatotaloffourcutssofar.
Oil prices soar after Saudi
plant attacks
Brent crude jumped 10% to 66.28
Dollar a barrel, while West Texas
Intermediate rose 8.9% to 59.75
Dollar in Asian trading. Prices pulled back
slightly after US President Donald Trump
authorizedthereleaseofUSreserves.The
drone strike on Saudi's oil facilities, which
the US blames on Iran, has sparked fears
of increased risk to energy supplies in the
region.
The drone attacks on plants in the
heartland of Saudi Arabia's oil industry
included hitting the world's biggest
petroleum-processing facility. It could
take weeks before the facilities are fully
back on line. State oil giant Saudi Aramco
said the attacks cut output by 5.7 million
barrelsperday.
Centre to give support of
Rs 8,500 crore to ECGC:
Piyush Goyal
Commerce Minister Piyush Goyal
has said the Central government
will give support of 8,500 crore
rupees to Export Credit Guarantee
Corporation of India, ECGC, in the next
fiveyears.
Speaking to reporters in New Delhi today,
Mr Goyal said interest rates will now be
just close to 3.5 per cent. The Minister
said banks have been advised to extend
thisnewfacilitytoallexporters.
Mr Goyal also said ECGC has introduced a
scheme called Niryat Rin Vikash Yojana -
NIRVIK to enhance loan availability to
exporters. The scheme will also help ease
the lending process. He said ECGC
provides credit guarantee to exporters up
to60percentofloss.
Under the new scheme NIRVIK, up to 90
per cent of the principal amount and
interest will be covered through
insurance. It will cover both pre and post-
shipmentcredit.
The Minister said, those exporters who
will avail insurance cover up to 10 crore
rupees need not face inspection. Mr
Goyal said, the steps announced today
will help India achieve one-trillion dollar
exporttarget.
Bill & Melinda Gates Foundation to honour PM
Modi for providing safer sanitation to 50 crore
people under Swachh Bharat Mission
Bill and Melinda Gates Foundation's
will honour Prime Minister
Narendra Modi for Swachh Bharat
Mission, a sanitation initiative that
improvedaccesstotoilets.
In a statement issued on Monday in
Seattle,USA, the Gates Foundation said,
Mr Modi will receive its annual
Goalkeepers Global Goals Award for
providing 500 million people in India safer
sanitation. Mr Modi will be in the United
States next week to receive the
foundation'saward.
The Swachh Bharat Mission was launched
in 2014 and its components include the
construction of household toilets,
community and public toilets and solid
wastemanagement.
According to the latest government data,
the rural sanitation coverage has reached
99.99 per cent till now from 39 per cent in
2014. Over ten crore household toilets
have been built so far under Swacchh
Bharat Mission while 35 States and Union
Territories have been declared Open
DefecationFree.
Drone attacks spark fires at
Saudi Aramco oil facilities
rone attacks sparked fires at
Dtwo Saudi Aramco oil facilities
today. AFP news agency said
Houthi rebels have claimed
responsibilityfortheattack.
Interior ministry said, huge palls of
smoke rose into the sky after the pre-
dawn attacks on Abqaiq and Khurais,
two major Aramco facilities in eastern
Saudi Arabia. The attacks follow a
spikeinregionaltensionswithIran.
Quoting the interior ministry, the
official Saudi Press Agency reported
that the industrial security teams of
Aramco started dealing with fires at
twoofitsfacilitiesearlythismorning.
It said the two fires have been
controlled.
It did not say if there were any
casualties or whether operations at
thetwofacilitieshadbeenaffected.
The full extent of the damage was not
immediately clear as reporters were
not allowed near the plants where
Saudi authorities appeared to have
beefedupsecurity.

4. Retirement Planning; Pre requisite to adopt investment Plan
s an Estate Planner, I encounter a
Alot of clients who are still not
aware about or conscious of
Estate Planning. An overwhelming
majority of Indians still do not have a
professionally written Will and the actual
numbers will be closer to 85%+. They
think they don’t need to do any sort of
estate planning as they think “Estate
Planning”isforwealthypeople.
In India, millions of people die each year
without any type of estate plan in place,
andthisforcestheirfamiliesintothecourt
system, where they experience the high
cost and time delay characteristic of
Succession Certificate/ Probate
proceedings.
Therearelotofmythsfloatingaroundand
it is due to lack of knowledge and open
discussion on this subject. In Indian
society it is still a “Taboo” to talk about
planning after death. Whether or not we
plan to do so, each of us will face death
eventually. However, by planning, we can
make our passing easier and better in
manywaysforthoseweleavebehind.
This article briefly touches about estate
planning. We will be talking about various
issues around estate planning in a series
ofarticles.
Whatisestateplanning?
Around the world, Indians have one of the
highest per capita saving rate. The
reasons for saving include lack of social
support for senior citizen from
government (in short planning for our
own retirement), habits (we have seen
ourparentssavingextrapieforrainydays)
and goal based saving (like for buying
house, car, etc.) among others. They
believe in passing down their hard earned
saving in a judicious manner to next
generation.
“Estate planning can be defined as the
process of anticipating and arranging for
the disposal of an estate. Estate planning
typically attempts to eliminate
uncertainties over the administration of a
probate and maximise the value of the
estate by reducing taxes and other
expenses.”
Young individuals do not feel the need to
plan when they should start planning.
They think estate planning as the thing to
be done at the time of retirement. Little
do they realise the uncertainties of life
and equate planning with dying. They
don’t realise the problem faced by
inheritors.
The main objective of estate planning is
that to decide who will receive and
control your assets. If you desire that
every penny of your hard money should
go to your next generation, you should be
doingestateplanning.
The people defer estate planning for later
date or time. They used to avoid for
various reasons such as—to avoid
discussion on demise, avoid difference of
opinion with better half on distribution of
asset,lackofknowledge,etc.
Now is the best time to plan. The same
needstobeupdatedonceayear.Wemust
put this on our priority list and not
postponeit,thinkingittobeirrelevant.
Howtodoestateplanning
Transfer of assets from one generation to
next generation can happen in following
ways:
1.Giftduringone’slifetime
2.ThroughaWill
3.Application of Succession Law (if one
dieswithoutaWill)
4.ThroughaTrust
5.FamilySettlement
By Shammi Khanna
President Findoc Financial Services
Group
Estate Planning
Pre wedding shoots are envogue, so
is my advice. Before marrying an
investment plan, undergo a Pre
wedding shoot. I talk of few disciplines
thatneedstobefollowedbeforeadopting
aplan.
I always tell my clients that financial plan
is a journey that you need to under go
reach a destination. And as we are to
board a plane we need to undergo the
process of check in and boarding. Same
way one has to be ready for investments.
Normally clients tell that they can not
spare money to invest due to one reason
or the other, in such case we are left with
twochoices
1.Droptheplan
2.Createabudget.
This reminds me of one of the investment
lessons by Warren Buffet which have
influenced me “Spend after Investing, do
notinvestafterspending”.
The first and foremost rule that
has to be followed before
startingInvestmentplanis
Budgeting the Household
expenses;
As discussed in the previous
issue, one needs to understand
his cost of today’s living and to
do that normally financial
planners asks the client to create a diary
to record each and every expense for few
months so that the client’s spending
behaviour can be understood. And after
understanding the clients behaviour to
spend the financial planner and the client
tries to fix a budget in which the client will
have to live so that he can spare money to
invest in the portfolio that is designed by
the planner looking at the client’S
financialgoals.
Understanding the budget may have
bumpy rides, there may be certain times
thatclientmayfeellikeheisnot
g o i n g t o a c h i e v e t h e
investment targets, but in most
of the cases the planners are
professionals that guide them
and advice them the way
ahead.
One needs to budget all the
incomes that accrues to house
hold which includes income of both the
spouse, interest incomes, incomes from
other sources like rentals, dividends or
any other income. On the other hand the
client will record all his expenses which
will give a clear cut spending pattern in
twotothreemonths.
After noting down all the incomes and
expenses one is required to separate
enough funds from his income so that the
required investments are made. Many
times clients may have to cut down few
expenses which are either not required or
are done as a part of behaviour. Many
times the client even do not know that
they are making few behavioural
expenses which they otherwise do not
intend to or they just chose to ignore that
cost.
Normally the planners advice to park the
household requirements in one account
and rest funds are kept in other account
andareinvestedinthedifferentportfolios
designedasperthefinancialgoals.
There are few thumb rules of living
expenses - saving and spending but in fact
when one plans investments these thumb
rules normally do not prevail, so as a
financial planner I prefer to share them
individually as per the current financial
positionoftheclient.
In subsequent issues I will cover other Pre
requisitestoadoptingafinancialplan
To be Continued.
By Nitin Shahi
“An effective estate plan can minimize hassles and cost on and after your death,
and provide benefits to your surviving family members over the long term.”
Wednesday 18 September, 2019
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COMMODITIES SECTION
INDEX PERFORMANCE
GLOBAL INDICES
WEEKLY CAPSULE
-2000
0
2000
4000
Equity Debt
-1000
0
1000
2000
3000
Equity Debt
Date Equity Debt
13-Sep-19 754.59 3,634.20
12-Sep-19 -219.12 2,126.87
11-Sep-19 664.34 2,120.83
09-Sep-19 17.59 1,939.78
MF SEBI
Value in Crores
Date Equity Debt
13-Sep-19 -397.09 -350.31
12-Sep-19 2,609.40 96.38
11-Sep-19 577.59 -140.73
09-Sep-19 297.8 271.88
FII SEBI
Value in Crores
What is strategy? In simple words if you have the best person, best material, best system, best process and
besttechnologyitmustbedeployedattherighttimeintherightmannerandbytherightman.
Krishna as a Mentor always inspireas a strategist. As perMahabharata Karan had one Astra whichhe keptto
killArjunanamedVasaviShaktiAstra. KrishnaknewthatifKaranwouldusethisweaponagainstArjuna,heis
bound to die. Krishna asked Ghatotkach who was a giant warrior to fight against Kauravas and strategically
forced Duryodhan to ask Karan who was his greatest warrior to stop Ghatotkach. Ghatotkach was killing
thousands of soldiers of Kauravas which was a point of worry for Duryodhan (leader of Kauravas) and he
askedKarantostopGhatotkach,whogaveatoughfighttoKaranaswell. Karanhadnooptionleftwithhimto
stop Ghatotkach but to use his Vasavi Shakti Astra and Karan lost his weapon. It is told that if Karan would
have used this weapon on Arjuna even Krishna could not have saved him. In the above story, Kauravas had
best person (Karan) had best technology/ material (Vasavi Shakti Astra) but they could not use it at the right
time. On the other hand Krishna had a great warrior but he was not the best, but due to strategy of Krishna,
Kauravashadtolosethebestoftheirmaterial/technology.
Whenwelookatourepicinthisformatwelearnalot. ByNitinShahi
THE WISDOM TOOTH