Happy 2017!



Can a 5 year old be taught how insurance works?

I was recently asked by someone to explain the concept of insurance and the working of an insurance company in a way that even a five year old kid can understand it. Like any other professional, I’m prone to the usage of jargon – filled language that even adults may find intimidating at times. So this was an interesting challenge. I thought back to my own childhood and here’s what I came up with:

So you’re a five year old who loves to play with marbles.

But sometimes you lose them or some other kid steals them or your mother confiscates them because you didn’t complete your homework. Your friends and other kids also face the same problems. The tough life of a 5 year old – the adults have no idea!

So here comes Bima uncle and offers a solution. He asks all your friends and yourself to give him 1 marble a month. In return, when you or your one of your friends lose your marbles due to any reason, he will provide 100 marbles to that kid and life is good again!

Now he’s collecting one marble per month from a hundred kids every month. So in a year, he gets one thousand two hundred marbles (1 marble*12 months*100 kids).

However, on an average, eleven of those kids lose their marbles every year. So he has to give away one thousand one hundred marbles (11 kids*100 marbles). So now he’s left with a hundred marbles (1200 collected-1100 given away) by the end of the year. That is his profit and the reason for providing this service.

And that’s how Bima uncle (insurance company)runs his business and helps the kids (his customers) live a happier life. 🙂

Image credits: Rules of Kanchey – HVR Sports, Super Sad Emoticon, Happy Smiley Face, http://physicsworld.com/cws/arti… 

Tu Chor, Main Sipahi!


I was recently reminded of this 1996 movie(the title, not the story). Starring in the movie were Akshay Kumar(Sipahi) and Saif Ali Khan(Chor). What was the reason for suddenly remembering such an old movie? No, not being a fan of Akshay Kumar (although I am one). It was looking at the cat and mouse game being played between the illegal (black) money hoarders(Chor) and the Narendra Modi led Government(Sipahi).

The hoarders have played every trick in the book and the government is quickly reacting each of them, in an effort to plug all the holes.

A short summary of what has happened over the last few days:

Chor: Buy gold with cash.

Sipahi: IT raids on Jewellers

Chor: Buy $(Foregn Exchange) with cash.

Sipahi: IT raids on Hawala Dealers

Chor: Buy Appliances/Mobile Phones with cash.

Sipahi: IT scrutiny on all back dated purchases

Chor: Buy Railways Tickets with cash and then cancel and claim refund

Sipahi: All cancellations above Rs.50,000 to be directly deposited in bank accounts

Chor: Buy Airline Tickets with cash and then cancel and claim refund

Sipahi: Only non-refundable airline tickets can be purchased with cash

Chor: Rent out Jan Dhan accounts.

Sipahi: Cash deposit limited to Rs.50,000 in Jan Dhan accounts.

Chor: Pay people money to stand in line and exchange cash.

Sipahi: Indelible ink to mark people withdrawing cash

And the game continues..Picture abhi baaki hai.. So keep watching!

Important: When depositing your OHD cash in Bank / Post office


Many of us will be going to our bank branches/post office to exchange/deposit the recently demonetised old high denomination (OHD) notes i.e. the old notes of Rs.500 and Rs.1000.

While depositing Rs.500 or Rs.1000 notes in the bank or post office, you may be asked to provide your ID proof and PAN photocopies.

When providing such copies, do ensure that you attest the same to prevent their misuse. Otherwise, there is a risk of your document’s copies being used for several transactions of different people’s deposits. This can potentially create unwarranted and unnecessary complications for you. A simple attestation can prevent this from happening.

How to attest?

Here’s a template:


“Self-attested photocopy provided on (date) to (bank name and branch) for deposit of Rs.(amount) via (number of notes) notes of Rs.500 and (number of notes) notes of Rs.1000″.

This exercise will take just 2 minutes of your time but prevent any possible misuse of your documents.

Better safe than sorry!

India became independent! Can we?


India is a thriving, vibrant, democratic nation as it enters its 70th year of Independence. As we celebrate our freedom, it makes me wonder…

Will we be physically, mentally, financially and spiritually free when we enter our seventies?

India’s independence did not come for free. Our ancestors had to fight and win against British oppression to gain freedom.

Now we have to fight deteriorating fitness, mental reliance on machines, inflation combined with unproductive investments and constant materialistic stimuli that threaten to make us weak, insecure and dependent.

So on this 15th August, let us resolve to ensure our lifelong independence through:

  • Regular Physical Exercise/Sports
  • Regular Mental Exercise/Learning
  • Planned & Productive Finances
  • Dedicated, distraction free time for (inner) self

Wish you a Happy Independence Day and a worry free life!

Dark Clouds are Lining the Sky


Dark Clouds are lining the sky,
panic sellers don’t know the reason why!

Some say China is in a mess,
but difficult to say how bad is the case.
They also fear that the Fed may hike
because of which FII selling will spike.

Back home there is no dearth of bad news,
all sorts of ‘market experts’ are shouting their views.

With such gloom its is easy to get sold,
beware before your investments catch a cold!
Don’t panic and sell your gold (good stocks/Equity funds).
In fact, its time to be rational and bold!

The market is a funny animal,
alternately called a bull or a bear.
I would call it an Investment Carnival
that is a also a ‘wealth making’ friend dear

Amid all such noise,
what you need is a saner voice.

This crash is not the first,
nor will it be the last!
Human emotions of greed and fear
are as old as the time when man hunted deer!

The markets have survived two world wars!
They have taken thousands of wounds and scars!
Yet they have bounced back time and again,
rewarding investors who have bought in the bargain

So do not worry whether the markets will vanish,
just pick companies/funds that you think will flourish!
The markets will move, don’t try to time.
Every time they fall, just put in a dime.

This is an easy and time tested tool,
Wonder why they don’t teach this in school?
While we try to fit the text book theories,
the market would have climbed the wall of worries.

History tells us that humans will prosper and companies will do well.
Markets will rise, taking up with them, the stocks which once fell.
However it will take time, difficult times will make you queasy
But who said making money, was ever easy!”

This poem found it’s way to me across the not so dark clouds of social media (WhatsApp and Facebook). So I don’t know who the port is but 3 cheers for his/her creation!


So will you do? Buy /Sell/Hold? Use the comment box to share your views..