Wealth Management

Sample Itinerary for Meghalaya Trek - Mostly stay in camps with couple of days in hotels/lodge/guest house/home stay thrown in.

Day	DAY WISE SCHEDULE:
Day 1 20th Dec	Reporting at Shillong (Kit Bop to advise on Location) from 5 PM onwards : 6:30 PM Orientation and training.
Day 2 21st Dec	Trek from Mawphlang along David Scot trail to Lad Mawphlang https://bit.ly/Meghalaya-001   LadMawphlang to Laitryngew by Car/vehicle– night halt at Laitryngew (16 kms)
Day 3 22nd Dec	Trek from Laitryngew to Sohra via Lyngksiar falls, Dainthlen falls, Wei Sawdong Falls and transport by bus to Sohra (Cherrapunji) -night halt at Sohra (14 kms difficulty level moderate)   https://bit.ly/Meghalaya-002
Day 4 23rd Dec	Transfer by bus from Sohra to Nohkalikai waterfalls then trek to Tyrna via Rainbow waterfalls and Double Decker Living root bridge. Transfer by bus from Tyrna to Sohra/ Laitryngew for night halt. (approx. 12 kms difficulty level hard)   https://bit.ly/Meghalaya-003
Day 5 24th Dec	Transfer by bus from Sohra for caving (Mawsmai and Arwa Caves) and local site seeing (at Sorah) then transfer back to Shillong. Night halt at Govt. Youth Hostel Shillong
Day 6 25th Dec	Sohra to Mawlyngong – Early morning departure Dawki – Day trek   Or   After Breakfast with packed lunch participants will be transferred by bus to Tyrso village (Ri Bhoi District). Reporting at Camp at around 02:30 p.m.Proceeds for Tyrso village by trekking. From 4 p.m. onwards participants can watch Amur Falcon birds (evening session). Return at 6 p.m. to Camp where evening tea will be served followed by dinner at 08:30 p.m
Day 7 26th Dec	Return to Guwahati for Flight – Take cab early morning after breakfast

 

 Tadoba - Tiger Tiger ...

The allure of watching a tiger in the wild is exciting to say the least. Somewhere in Jan 2022, we saw an opportunity to visit Tadoba in April 2022. This was an all office gang and the idea was mooted by some of our colleagues from the testing team - Nitin Tambe and Rati. Soon the team started forming and we were now fully committed to the trip. https://www.facebook.com/JungleRoutesSafaris was our partner in crime.. Shiwani and Maithilee did all the grunt work of organizing the safari, booking us in hotels, getting the Core vs Buffer equation right (That's super critical to sight tigers) .. as you will see in later secions.

We began our journey by flight from Mumbai to Nagpur .. landing at Nagpur airport on the 14th Night 10.00 pm. A fantastic arrangement of dal Khichdi before we hit the bed... the heat was already quite intolerable in Nagpur and we were shuddering to think of Chandrapur. Morning we had a sumptuous breakfast at Brindavan in Nagpur with our colleagues who joines us by Train and off we went to the wilderness. There was a huge sense of excitement in seeing a Tiger in the wild.. the only equivalent i had was either the opium dosed tigers in Thailand, the ones in Jijamataa Udyan (captivity) or the Lions of Africa ... there are no Tigers in Africa.

We reached our destination in very comfortable Innovas with Captain seats and enjoyed an awesome lunch in Tiger's Heaven resort. .. again everything was impeccably arranged by https://www.facebook.com/JungleRoutesSafaris

The Itinerary was as follows:

Day1 - 15th (Friday) - 2.00 pm departure for Buffer Zone (Buffer has more vegetation and is recommended for afternoons to avoid the heat),

Day 2 - 16th (Saturday) - 5.45 am - departure for Core

Day 2 - 16th (Saturday) - 2.00 pm - Depareture for Buffer

Day 3 - 17th (Sunday) - 5.45 am - Departure for Core

Intelligent arrangement of Core vs Buffer plus booking for 14 people in groups which just matched the itinerary and the overall comfort in the trip was the key highlight. Not to mention a Tiger Sighting every single Game drive. 

We saw Maya, chota Matka, Mowgli.. and a whole jungle full of other animals.

Nothing will compare to the morning view of animals in the wild .. going about their business, enormously curious to the vans and jeeps meandering around their neighborhood.

For all the Carnivore competitors - look at this Herbivore.. i wonder where the protein comes from! 

There are hundreds of Tiger pics which we took. i am just presenting the Top 3 .. this should give you a perspective of why you should go to Tadoba too.. Do call Shiwani on jungleroutes@gmail.com

 Ten Commandments for success in F&O market

1. Do not enter any stock in which you don't have conviction - Many investors don't understand risk, only return. F&O is a serious commitment to make an investment for the long term, its not sattabaazi.. if you don't like Adani Ports, don't sell the put or buy the future or sell the calls or any such thing. ... that's gambling.. be a long term investor in F&O and you are guaranteed to make money

2. Whatever your advisor says - A Put is always, always, always safer than a future... Imagine if you were willing to enter a future, you have downside risk uncapped (unless you buy a put). Now, when you write a Put, you are basically taking a deferred Future.. how could a lower strike price put be more dangerous than a future - So get your common sense hat on

3. Returns are not important - managing Risk is - Arbitrarily writing puts willy nilly just results in lot of headache in future - reason being as the market gyrates, your puts become extremely risky and hence cutting you down ... See note below on strategy to write puts

4. Be Contented - Generating 5% per month is not difficult. However people come to market to make double their money in a month... if you compound 10 Lacs at 5% per month in 10 years your portfolio will be 34 Crores 89 lacs.

5. Never Write naked calls - While your ability to time the market may be considered awesome by you, naked calls will only leave you without clothes. Never, never,never write naked calls. .. always use a future to hedge your call

6. Judicious use of Margin - If you have 10 Lacs deployed in F&O, then make sure 3.5L is kept aside for M2M. Never ever take positions which eat up 9.9 LAc OF MARGIN if you have only 10L.. that's a recipe for disaster.. we will compute the 5% on full 10L, but only deploy 6.5L in positions

7. Never borrow money to invest in F&O - Self explanatory

8. Uptrading of risk - Many people uptrade their risk for higher returns. For example if you sold a Infy 1500Put for say 300 x 15.. and infy ran up to 1700.. now your 1500put is at 5 Rs.. you want to replace this with a 1620PE for say 18 Rs. Your 1500PE still yields you 2% on margin deployed.. you are uptrading risk for higher return.. do this at your own appetite - not recommended

9. Ignore the Noise - If your conviction in a stock is rock solid, ignore the noise and the accompanying fluctuations in market.. they are like apsaras; trying to distract vishwamitra from his penance... you be focussed on the long term value of your stock

10. Don't Listen to advisors (including me).. anyone who comes on CNBCTV18, stock market tips, indore based sms or calls, friends relatives etc... Don't ever listen to anyone. Just be focussed on your strategy and returns will follow.

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How to write a Put

1. Identify a core stock - which you are willing to hold for 10 years

2. Identify the price and write it on a wall or excel or notepad

3. Wait for the price to correct atleast 5% in a week - 5% correction spread in a period >  one week doesnt count

4. If 5% correction happens over > 1 week, redraw point 2 and wait for 5% correction in a week

5. When correction happens to your level of satisfaction, write your PUT another 6-7% below the reduced CMP.. this gives you a full 12% buffer on an A grade stock

6. don[t write mid month or far month puts

7. Wait till Month beginning like 5th of the month to start your Put writing till you gain confidence

8. Keep yield on margin > 7.5% atleast

9. If your Put becomes ITM, then roll over by another ITM put next month or by buying the future and ride it on way up or down.. never exit the stock

10. Be careful of writing puts during event calendars

 As i write this - it is May 2021 and the Index (nifty) is at 14630 Levels. As you may remember - Feb 2020, the Index was at 12500 levels. It tanked almost 40% to 8000 levels and rebounded. While the world has been ravished by the Covid virus and industry grappling with major issues, stock market rebounded and with an optimism which cannot be fathomed, reached 15,000.

Today the market is sluggish at 14500 levels and every one is thinking when is the next crash. I just want to present to you an alternate school of thought. The Nifty PE was at 25 levels before the Covid scenario. Covid also resulted in a lowering of earnings for many of the companies. Inspite of that the market went up and its reflected in the super high PE of 41 now - see chart below.. (i have only plotted till feb 2021).

While everyone expects that market will crash and bring the PE DOWN to 25 levels, my view is that the market will consolidate and stay between 13000 and 15000 levels for next 18 months and allow the earnings to catch up. This earnings increase will result in the P/E becoming more saner and lower at 29 levels before the next upmove. So i do not see a crash happening - i see a sideways movement, allowing nifty stocks  a breather to increase earnings and reduce PE while maintaining index. 

Hope this POV is helpful and let's see how it pans out. My view is - there is a correction possible to make the P/E go down to 26 levels which means at today's earnings, the NIFTY could reach 12000 levels -but i see less chance of that happening. i see more chance of earnings rising and NIFTY remaining at these levels.

With the DTC(Direct Tax Code) set to come in by April 2011, a few more remaining options for the middle class to build a tax free corpus would have disappeared. While the lower tax slabs would be welcome, investors have to be aware that under the EET regime the growth (read long term capital gains) will be taxed in the year of redemption. Assume you have invested Rs. 100,000 in a stock or MF today and over 20 years it grows to say Rs. 35,00,000 under the current system, the 34,00,000 would be tax free as it is long term capital gains. However under the EET regime your 100,000 would be indexed based on the capital gains index provided by Income Tax and the indexed base would be then subtracted from the sale proceeds to arrive at taxable capital gains.

You have six more months to build a decent nest of eggs which will continue to remain tax free using existing provisions.

Contact the author to build your personalised tax strategy and benefit from it over the years to come.

Regards,

Balaji Rajagopalan (TRY2XL@gmail.com - 9819521169)

Friends,

A quick note on what a saving of 3k per month invested in stocks would do (assuming an average return of 15% per annum) as compared to saving 3k per month in government bonds (assuming a return of 6% per annum)


Over a period of 10 years the stock investment would grow to Rs. 8.9 lacs as compared to the bonds investment growing to Rs. 4.9 lacs...... Just 3k and the change from bond to equity can cause such a huge alteration in your wealth.

Contact try2xl@yahoo.com for more info on the above.