tag:blogger.com,1999:blog-10686645843433179682024-03-19T01:41:59.945-07:00Eternal YouthAnonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-1068664584343317968.post-71722303875281221692015-01-26T09:44:00.001-08:002015-01-26T09:44:16.152-08:00Portfolio Analysis - January 2015It sure has been a long time since my last post on Portfolio Analysis. Have been super busy, just couldn't find the time to write this stuff down, among other things :P<br />
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Frankly speaking, I have been putting off writing this post for a while since I was re-structuring my portfolio a bit. So, in this analysis, you'll find that I have a sizeable amount of funds that are in cash, which is quite unlike me. I also obtained control over my dad's portfolio and that is no easy work to handle - quite a bit of restructuring required in his portfolio and that's kept be a bit occupied.<br />
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Well, let's start off with the portfolio analysis and then move on to the equities section.<br />
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<b>Figure 1:</b> Portfolio Allocation</div>
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<li>The PFs continue to decline, as expected and desired. At this point of time, there is no need to invest heavily into PFs. Considering the equity market conditions (mostly bullish with the prospect of a another collapse in the future), a buffer amount needs to be maintained in PFs while being ready to exit the equity markets at the first sign of a collapse.</li>
<li>The Real Estate property continues to be paid for on a monthly basis, this will increase gradually and there is no rush to pay off the house loan at present. On another note, the market rate of the property is about 20% above its buy price, about 20 months since purchase. This was the case a couple of months back and I am quite glad with the progress so far.</li>
<li>Equity allocation continues to increase at a decent rate. I'd like to be invested more in this but the markets seem to be quite overvalued at present. The global and Indian economies aren't faring as good as one would like and that is increasing the risk associated with this investment at this point of time. Having seen the worst of one recession, would like to take appropriate precautions if another one occurs :)</li>
<li>Savings have reduced slightly since I deployed some funds to equities. Well, that's what they are for, so no harm done. Will increase this gradually and deploy appropriately when sufficiently accumulated.</li>
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In my previous posts, I had placed RE under the Risk Free category and that seems wrong to me. Regardless of how sure one is, Real Estate investments are not risk free. There is always a possibility of that investment value reducing. So, I have moved it to the Low Risk category. Although it is comforting to see such a huge portion of the investment in Risk Free, I'd like to increase the High Risk component so that the percentage allocation changes. At a young age, one should take advantage of the High Risk investments to generate higher returns. The Risk Free investment options should ideally be used once one is riddled with responsibilities or has to retire.</div>
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Moving on, let's take a look at the Equity portfolio now.</div>
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<b>Figure 2:</b> Equity Portfolio</div>
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There have been quite a few changes this time around and a few more to come. It is the quarterly results season and I have been deciding on some of the stocks in my portfolio with regards to the same, as well as future prospects. Besides, the budget for this year will be announced soon and that will be another key indicator to look forward to, from equity selection perspective.</div>
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<ul>
<li>Ashok Leyland, an automotive company, is one of the star performers at the moment. I believe this stock has yet to unlock its value and I expect this to be in my portfolio as long as good market conditions prevail.</li>
<li>Fluidomat is a recent acquisition. I don't really have much to mention on this one. If the engineering/manufacturing sector does well and the government comes up with the much needed reforms, this stock will do well.</li>
<li>Firstsource Solutions had a very nice run-up and I exited at its peak. Since then, it has corrected a lot and is quite close to my buy price. I have purchased this again, but on my dad's portfolio.</li>
<li>Gabriel, the stock that has more than doubled since my purchase, is an auto ancillaries company and its performance is tied to the market conditions/auto sector companies.</li>
<li>Gayatri Projects, a construction company based in Andhra Pradesh and executing projects in that area, has been stagnant for quite some time. Hence, I reduced exposure to this stock to make other purchases. When it shows signs of life again, will increase exposure.</li>
<li>ITC, a tobacco company, that has been trying to diversify for quite some time now, by funding its loss making ventures using the profits from its cigarette business, has been hurting the shareholder wealth considerably. Hence, I have sold this stock. With the government's anti-tobacco stand, its prospects don't look too good in the future, unless it gets its act together.</li>
<li>Larsen and Toubro, probably the largest engineering company in the country, has started moving up again. Its performance is directly tied to the performance of the economy. A boost in the engineering sector and some reforms would propel this stock immensely.</li>
<li>Reliance Industries, I bought this just before the oil price dropped from $100 to $50. That has really hurt this stock. But I am at present unable to exit it for two reasons. I believe the oil prices are unnaturally low and will have to come up. The stock should rise up again when that happens. Also, the unlocking of the value of its telecom company, Reliance Jio should offer good returns as well. Only time will tell.</li>
<li>SBI, largest public sector bank in the country, has been doing well since it started fixing its NPA since 2 years ago. Hopefully, if it continues on the same path, it will be a real money maker.</li>
<li>Selan, another oil company, primarily focusing on exploration, will do well once oil prices rebound.</li>
<li>Sun Pharma, a good stabilizer in the portfolio, is also performing quite well and has risen quite a bit since my purchase.</li>
<li>Zee Learn, wasn't doing well and hence I exited the stock with minor losses. A stock in the education sector is required but this one isn't up to it yet.</li>
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I still have some deployable funds and am waiting for the right opportunity to use those. Currently, the market is at an all-time high and it just doesn't feel like the right time to use up my funds. Besides, the situation all over the globe isn't all that rosy and a crisis can appear at any time.</div>
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The portfolio has out-performed the index as always, and by a significant margin too. Not factoring in the added funds, there is a stark difference of 7% above the index returns.</div>
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Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-81643613380639140402014-09-16T00:56:00.001-07:002014-09-19T22:14:43.750-07:00Lightbringer saga by Brent WeeksA <a href="https://plus.google.com/+SonalPinto/posts">friend</a> brought my attention to this amazing series, Lightbringer, by Brent Weeks. It was originally intended to be a trilogy, but that didn't quite work out. So it's now a 4-book series. It is a fantasy-fiction novel with loads of strategy, action, magic, comedy and drama packed in. The series contains the following books:<br />
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<li>The Black Prism</li>
<li>The Blinding Knife</li>
<li>The Broken Eye</li>
<li>The Blood Mirror</li>
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The Broken Eye was recently released, in August 2014, which leaves us with only the series finale book unpublished. Judging by the frequency with which the 3 books were launched, I suspect it will be a 2-year wait before the final book is out.</div>
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The Lightbringer series is quite well written with an appropriate mix of sarcasm, comedy, and strategy, slightly short on action and a tad extra bit of drama and magical history. The number of characters introduced in just right, no extra characters which suddenly drop off later in the book and no unnecessary introductions that seem to waste your reading time. Suffice to say, you won't stop unless you are done with all the books. Thinking it to be a trilogy, I read through the books at breakneck speeds, only to find that Brent Weeks will be launching another book to complete the story. Pretty harsh considering I have to wait 2 years to finish this series.</div>
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The humor is amazing - witty, wry, sarcastic, that is bound to make you laugh out while reading the books. The action is intense when it occurs, but I feel this is slightly rare for the sort of book it is. It's possible that we'll see quite a bit of it in the final book(fingers crossed). Brent's description of action scenarios are amazing and it's just a little disappointing to find so few of those in the 3 books. At times, I felt that he discussed details about the historical and theological aspects associated with the fantasy world, and although it's not bad, but it didn't align with the environment created in the book - he could have discussed some other aspects in my opinion. There are bits and pieces of drama packed in too and it is just in the right amount at the right stages of the book. This was deftly handled by him.</div>
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In the fantasy world created by Brent Weeks, some people, called drafters, can use light to perform magic (creating and using material called luxin). Since light has different spectral components, different types of luxin can be created and hence different sorts of magic pertaining to these colors. It is believed that this ability is provided by a God, called Orholam. From here on out, there are similarities with any other religion or its consequences. For example, since there can be different interpretations of a God's will, there will be multiple factions with varying faiths, which causes wars. You will find equivalents of Prophets, Seers, Popes etc. in the book too, except there's magic involved :). I'd say it's a great series to read and you'll find your time to be well spent.</div>
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I'll provide a book by description below. If you haven't read any of the books, you might want to avoid the section below. If you are returning to a book from the series after a long hiatus, you might want to take a look to jog your memory so you can proceed with the series. Needless to say, there will be SPOILERS below.</div>
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<u>The Black Prism</u></div>
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The first book follows the story of Kip, the bastard son of the Prism Gavin Guile. His town is attacked by the King of his province, Garadul and he manages to escape, in the process discovering that he is a drafter. He is later found by the Prism Gavin(who is in fact Dazen Guile - the real Gavin Guile is held prisoner by Dazen in a cell under his apartment) and Karris White Oak, a member of the Blackguard, who take him to Chromeria. Here, he begins learning drafting under Liv(Aliviana Danavis). The attack on Kip's town signals an oncoming war and the Prism attempts to direct the Spectrum to head out to war before the enemy grows strong, but this plan fails. So, the Prism, along with Kip, Ironfist(Blackguard Commander) and Liv head out to defend the first city expected to be besieged by King Garadul. The Prism enlists the help of his friend from the False Prisms' war, General Corvan Danavis, to protect the city. With the help of other drafters, the Prism builds a wall made entirely out of luxin, around the city, but King Garadul and his army manage to breach the wall. When Kip learns that Karris is hostage to King Garadul, he heads out to infiltrate their camp and rescue her, in order to repay his father Gavin for his kindness. He is helped by Liv in this attempt. Although his attempt at infiltration fails, he is aided by Ironfist later to make his escape with Karris, however Liv gets caught and is held by the Color Prince(Koios White Oak, who was thought to be killed in a fire, at the hands of Dazen). The battle between King Garadul/Color Prince and the Prism continues at Garriston, leading to Garadul's death at the hands of Kip. However, the Prism loses due to the overwhelming power of the Color Prince and his drafters and they escape by sea, with an entire city's residents in tow. During this escape attempt, the Prism gets stabbed(by the Blinding Knife) for a brief moment by Zymun in the back and then Kip throws Zymun overboard. The book ends with Gavin breaking out of the blue prison and ending inside the green one, while Dazen loses the ability to draft blue. Karris figures out that Gavin is, in fact, Dazen.</div>
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<u>The Blinding Knife</u></div>
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The Prism sends Kip with Ironfist to Chromeria to become a Blackguard, while he heads out to Seers Island to create an establishment for the refugees from Garriston. He speaks with the Seer on the island and heads out to search and destroy the blue bane(drafters/wights with great power over that color in a huge area around them). Meantime, Kip is in Chromeria, attending Blackguard classes and training. However, Gavin's father, Andross Guile(Red member of Spectrum) is judging Kip's potential and playing Nine Kings with him with stakes. Since Kip doesn't know the game, he ends up losing most of the times(in spite of studying the game in the library) until he meets a Mirror, Janus Borig, who teaches him about the game and the cards, their origins etc. Kip finds that the original cards made by the mirrors have memories and are powerful artifacts. Gavin returns, but has lost the green color(prisoner Gavin escapes green prison and ends up in yellow), and rallies the Spectrum for war. He kills his brother in the yellow prison and marries Karris. The green bane is forming at the next battle point, near Ru. The Color Prince captures Ru and sheds green light on the green bane. This strongly empowers them. The Prism and Ironfist form two groups, one to defeat the bane and other to capture the Ru fortress. The Prism, Karris and Kip attack the bane and manage to defeat it with Ironfist's team attacking it with cannon shells. Kip's use of the Blinding Knife removes the drafting ability of the wights and bane and thus helps them defeat it. When the teams return back to their ships, Kip realizes that Andross Guile is a wight and attacks him with the Knife during an argument between Andross and Gavin. He briefly stabs him, when a tussle starts between Andross, Kip, Gavin and Grinwoody, leading to Gavin getting stabbed with the Knife and falling overboard into the sea. Kip jumps in to rescue Gavin but they both get captured by Gunner. Gunner grabs the Knife(which looks like a musket-sword) and throws Kip overboard, only to be captured by Zymun(Kip's half-brother, Karris' son). Andross is no longer a wight but Gavin is totally color-blind.</div>
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<u>The Broken Eye</u></div>
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Gavin is a slave on Gunner's ship and his job is to man the oars. After a long span of time on the oars, he is rescued by Antonius Malargos and taken to Eirene Malargos. He is held captive there and tortured by Eirene and the Nuqaba. The Knife is held by one of the oarmates who was freed during the rescue. Meantime, Kip escapes from Zymun and finds his way back to Chromeria, where he makes peace with Andross. White employs Karris to be her spy and relinquishes her of Blackguard title/duties. Kip trades information on Zymun with Andross in exchange for sending scouts out to look for Gavin and access to restricted libraries. A great deal of the book now focuses on Kip reading in the library with his squad(about Lightbringer, history, theology etc.), personal training with Karris and training in the Prism's practice room. The Order of the Broken Eye recruits Teia as a spy due to her paryl drafting abilities. She speaks to the White and becomes a double agent. The book deals with her exploits with the Order. During this time, Andross used Murder Sharp to cement his place at the Spectrum and becomes promachos. He also tries to get the Spectrum under his control, through murders, bribes etc. Marissia learns that Gavin is held prisoner by Eirene Malargos and heads out with Ironfist and few other Blackguards to rescue him. While Gavin is being blinded by the Nuqaba, Karris rescues him in a dramatic fashion but he has already lost one eye to a hot iron poker. Once they return to Chromeria, Karris heads back to the Spectrum meeting to find that White is dead, Zymun is Prism-elect and she participates in the ceremony to become the next White. Meantime, Zymun sets the Lightguard against Kip and his squad, who manage to escape with Tremblefist's help(who succumbs grievous injuries). Andross has a deal with Kip which requires him to marry Tisis Malargos and be his spy in their care, for which he will bring him back to Chromeria at a later time. Andross finds that the real Gavin was killed by Dazen and the Prism thus far has been Dazen. He captures Dazen and puts him in the blue color prison made by him. Grinwoody is found to be the head of the Order of the Black Eye and is acting as spy in Andross' household. Ironfist is a spy to Grinwoody and he reports that he believes Kip is the real Lightbringer.<br />
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Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-87408434861651544592014-09-14T08:14:00.002-07:002015-01-26T09:18:44.443-08:00Portfolio Analysis - September 2014Well folks, it's now time for the September Portfolio Analysis. For those of you who may have missed the other Portfolio Analysis posts, these are the <a href="http://pranavtelang.blogspot.in/2014/04/portfolio-analysis-march-2014.html">April</a> and <a href="http://pranavtelang.blogspot.in/2014/07/portfolio-analysis-july-2014.html">July</a> posts.<br />
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So, let's get our hands dirty with numbers immediately.<br />
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<b>Figure 1: </b>Portfolio Asset Allocation</div>
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<li>The PFs continue to decline as I am unable to add funds to this asset. This should get resolved around December as I pump funds into my PPF account for Tax Savings.</li>
<li>Nothing noteworthy to comment on the RE asset as this will continue to increase at a pre-defined rate, based on the Amortization of the House Loan.</li>
<li>The equity markets have been acting strangely these last couple of months. Subsequent to the last post, the markets underwent a substantial correction and have just rebounded back to reach a new all-time high. I haven't been able to make noteworthy contribution of funds here either, since I had some high value expenses recently, in the form of books, travel expenses and life insurance premium payment.</li>
<li>Savings continue to remain at a desirable level, I expect I currently have 4 months of expenses covered.</li>
<li>Not much of a change with deposits either, this just contains one RD which adds a minuscule amount automatically every month. I call it my "Rainy Day" account. :D</li>
<li><u>Analysis</u> - The portfolio allocations are looking good, on target in my opinion. The risk-reward ratio matches investor preferences and suitability criteria too. Although, it would be a good idea to reduce the Risk Free component and allocate those funds, mostly to Low Risk and partially to High Risk components. That would really balance the asset allocations out and make it an ideal portfolio. However, currently the Low Risk component aren't presenting a substantial returns advantage over the Risk Free component, and hence it will be a while before this change can be achieved.</li>
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<span style="text-align: start;"><b>Figure 2: </b>Equity Portfolio</span></div>
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We have had a few roller-coaster months in the markets, mostly due to the global pandemonium due to the crises in Iraq and Ukraine, as well as some hiccups due to European economy. Looks like things are settling down again, at least as far as the markets are concerned. The domestic markets made a recovery over the last couple of months and hopefully the trend will continue.</div>
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<li>Waiting on FSL and ZEELEARN to shoot up. Both the stocks are in the Technology sector and are generally driven by good quarterly results. ZEELEARN gave me a scare when it dropped 20% from my initial buy price, but I averaged it out gradually and it has recovered substantially following the last AGM.</li>
<li>GABRIEL has done phenomenally well, it is currently fetching me 100% returns. The auto sector stocks zoomed up recently and this one benefited from the euphoria. It is an auto ancillaries stock. Although, seeing such a fantastic response in this sector makes me wonder why I skipped on picking TVS Motors when I had the chance :(</li>
<li>GAYAPROJ is not a stock for the faint of heart. It dove to unnatural levels and has now returned back to my purchase price. Although I'm confident about the stock over the long term, I am considering reducing exposure to the stock. I will have to give some serious thought to this though. Just so you know, it was down 30% from my buy price and has since recovered. I know you are thinking why I was holding on to the stock and waiting for it to drop by 30%, but it's very hard to maintain stop-loss levels on this stock as it highly volatile. Besides, it has tremendous potential for growth.</li>
<li>ITC is a defensive, I am not really bothered whether it moves much or not. It's meant to provide stability to my portfolio. Same goes with SUNPHARMA, however that recently spiked up due to great results and is now nearly 40% up from its purchase price. Feels great to see a defensive stock contribute so much to your portfolio :)</li>
<li>L&T, RELIANCE and SBIN are all growth stocks, large-caps, meant to be held for long term again. They are primarily result driven and have been performing well. There is a lot of potential for L&T if the construction and manufacturing sectors in India pick up under the new Government. RELIANCE is a slightly longer term pay-off as it is expected to reap rewards 2 years from now, when it starts receiving returns on the investments it has made over the last few years.</li>
<li><u>Analysis</u> - Well, the portfolio continues to outperform the NIFTY index, although the performance was hampered this time around by GAYAPROJ. The risk allocations look good too, I don't think I'd want to change anything there.</li>
</ul>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-58918090285861400432014-07-20T12:43:00.001-07:002014-07-20T12:43:37.677-07:00Portfolio Analysis - July 2014I started the Portfolio Analysis series with the <a href="http://pranavtelang.blogspot.com/2014/04/portfolio-analysis-march-2014.html">April post</a>. Looks like I can find time for quarterly reports in this series. I was trying for a report every two months, but just couldn't make that happen in June. Let's see how I can take this going forward.<br />
For now, let's analyse the Portfolio status in July, how close I am to meeting the targets, what kind of changes need to be done etc.<br />
<br />
Before I continue, I would like to point out that compared to the <a href="http://pranavtelang.blogspot.com/2014/04/portfolio-analysis-march-2014.html">April post</a>, there is a slight change in approaching the Current Value for Real Estate Holdings (RE), namely Property Investments. Instead of basing it on cost value, it will henceforth be based on the principal value of the loan paid back to the lender (note that it's just the principal component, not the interest component). I have adjusted the April portfolio as well in this regard.<br />
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<div style="text-align: center;">
<b>Figure 1</b>: Portfolio Asset allocation </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioK4uNVpuEgZPDtd6_KVot32lfo0RU3mFzQf6d9VEfOEdzh2IYPFun1A7sGXA4wrin2ramc99w5nDAKOVYyezk_iy8UfxDOoueLTXvPGOKE0lKnhHi-fCZziNzAuDhbu94K0q99_sGzugO/s1600/portfolio.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioK4uNVpuEgZPDtd6_KVot32lfo0RU3mFzQf6d9VEfOEdzh2IYPFun1A7sGXA4wrin2ramc99w5nDAKOVYyezk_iy8UfxDOoueLTXvPGOKE0lKnhHi-fCZziNzAuDhbu94K0q99_sGzugO/s1600/portfolio.PNG" /></a></div>
<br />
<br />
<br />
<ul>
<li>There is a marginal drop in the PFs section and will continue to be so for a few more months since I don't plan on investing here until the end of year, for tax purposes. Although there are monthly EPF contributions, their value isn't enough to keep up with the investments in other investment vehicles.</li>
<li>To prevent skewing of the portfolio towards Real Estate, here on out, RE Investments will be considered as per the contribution towards the Principal Component of the loan. If you have any queries here, I will be writing a post soon on home loan payment system. If you feel this approach is incorrect, please leave a comment below :)</li>
<li>As I had mentioned, at this stage of life, I can afford High Risk investments and should in fact prefer it. This is reflected in the Equity component as well. The fact that the equity markets are expected to be bullish on a medium-long term basis, this strategy should fit well. However, I do feel that the current allocation of 40% to equity is sufficient, maybe I'll keep it between 40-50% so I have some margin to work with.</li>
<li>My savings earlier were meagre at best, meeting only 1 month's expenses. As mentioned in my post on <a href="http://pranavtelang.blogspot.com/2014/04/are-you-financially-sexy.html">being financially sexy</a>, it is essential to have funds available for 3-6 month's expenses, to account for any unforeseen circumstances. As of today, I am close to having 3 month's expenses covered in my Savings account, maybe a quarter or two more to cover for 6 month's expenses.</li>
<li>One of my deposits matured in the first week of June and I used those funds for the Savings and Equity allocations. The interest rates for deposits are too low to consider this as a good investment asset. I, however, prefer to use this as an emergency fund, in case my Savings account falls short. Besides, it prevents me from making unnecessary expenditures (resist that temptation to buy something when find your bank balance so high!).</li>
<li>There is a net change of +15.66% in the total asset value of my portfolio. This is not indicative of growth since there is a continuous influx of funds, but doesn't hurt to know.</li>
<li><u style="font-style: italic;">Analysis</u> - I think, from risk perspective, the portfolio is in a favourable position. I would have preferred the Low Risk allocation to be about the same as the Risk Free allocation, but I don't think that'll happen. Firstly, the returns on deposits (low risk) are only marginally higher than those on PFs (about 1% difference). Secondly, the added benefits of investing in PFs far outweigh the investment in short-term deposits for the incremental 1% returns. The PF benefits will be covered in other post (work in progress) as well.</li>
</ul>
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<div style="text-align: center;">
<b>Figure 2</b>: Equity Portfolio</div>
<div style="text-align: center;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaTtJLVDpDjZMte-UBqomWgyEuRfx7eTpPgHO6gjfDkKz-JFvgY7aLenCqE6PoqMyT0Rxf082SiKIfnNt_LYhjTvfe_MUXdXsDfFlWJwV_MGetSdMBe_ynxaS6qQJ72P6uKf7J5V_IKbQ4/s1600/equity.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaTtJLVDpDjZMte-UBqomWgyEuRfx7eTpPgHO6gjfDkKz-JFvgY7aLenCqE6PoqMyT0Rxf082SiKIfnNt_LYhjTvfe_MUXdXsDfFlWJwV_MGetSdMBe_ynxaS6qQJ72P6uKf7J5V_IKbQ4/s1600/equity.PNG" /></a></div>
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The above investments are in the Indian Equity Market, NSE. Since my last post, the Government has changed and the Union Budget for the country was announced recently, hence my portfolio underwent several changes to make the most of these opportunities.</div>
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Primary focus of the budget was education, rural development and infrastructure growth (as far as I remember). So, the changes in my portfolio are meant to target these opportunities for optimizing the portfolio growth and value. To do this, I have added a few midcap stocks for increasing growth prospects and increased allocation in a largecap stock for maintaining portfolio stability while still targeting the budget opportunity.</div>
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</div>
<ul>
<li>ENGINEERSIN, FSL, GABRIEL, GAYAPROJ, ZEELEARN are all budget picks for medium to long term. ENGINEERSIN will probably be removed soon, to increase allocation in other stocks. It's currently sitting at a 10% profit, I intend to wait for another 10-15% increase before exiting that counter.</li>
<li>HCLTECH was removed since I hold FSL (same industry, IT) and it was proving to be a better buy. The sale proceeds would be of better use in sectors benefiting from the budget.</li>
<li>There is a substantial increase in L&T - this is the largecap I was referring to that would benefit hugely from the budget.</li>
<li>Marginal decrease in ITC (tobacco industry) due to budget risks and SUNPHARMA, but the long term growth is still intact. Besides, they provide much needed stability to an otherwise volatile portfolio.</li>
<li>RELIANCE is a fresh buy and it is a very long term pick. The company has been making investments for the past 2 years and returns on these investments are expected a year or two from now. As we all know, stock prices react to future events in advance and I don't want to miss that ride :). Besides, this is a great stock to have in a portfolio, diversified company in some ways but primarily based in the Oil and Refineries industry. I intend to increase allocation here over time, buy on dips sort of strategy.</li>
<li>I did add quite a lot of funds to make sure I didn't miss the bull run. Hence the high value for Newly Added Funds.</li>
<li><u><i>Analysis</i></u> - Portfolio Value change in 3 months is about 47%, which includes the 15% funds added. So, were we to discount that, there is an increase of almost 30% in the portfolio value in one quarter. During this time, the index (NIFTY) rose by 12%. I would say that the portfolio has done quite well in this regard. The risk is paying off :)</li>
<li>Risk and Growth stocks are almost evenly allocated at around 40% with Defensives at 20%. Just from the portfolio perspective, this may look very risky, but if you take the entire portfolio into consideration (non-equity investments as well), this doesn't seem so bad. The role of the equity portfolio here is to provide as high a return as possible, so this would entail higher risks. This is possible because of high asset allocation for Risk Free investments (47%).</li>
</ul>
<br />
Well, the portfolio seems to be doing well, and gradually I am getting closer to the target portfolio. I reiterate, it helps to chart down your portfolio holdings in order to create an optimal portfolio.Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-52589387704174945452014-04-22T02:41:00.000-07:002014-04-22T02:41:52.851-07:00Legal Novels you must readOver a decade ago, I read an amazing legal novel, dealing with murder, mystery and court case. It was a huge book and I had a flight to catch at dawn, but I just couldn't bring myself to put down that book. I sat through the day, finished the book at 0300 and dressed up to catch that taxi!<br />
Since then, I have managed to read only a handful of legal novels that I really enjoyed.<br />
<ol>
<li>The Thirteenth Juror by John Lescroart</li>
<li>The Firm by John Grisham</li>
<li>The Client by John Grisham</li>
<li>The Runaway Jury by John Grisham</li>
</ol>
<div>
<u>The Thirteenth Juror</u></div>
<div>
<a href="http://d202m5krfqbpi5.cloudfront.net/books/1389785624l/341587.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://d202m5krfqbpi5.cloudfront.net/books/1389785624l/341587.jpg" height="200" width="123" /></a>This is one of the Dismas Hardy books and the first novel I read belonging to this genre. Unlike most legal novels, this one provides greater coverage of the courtroom drama that is required in such novels. This is what distinguishes a legal novel from other fiction novels, and I feel, authors should try to take advantage of this. As far as this book goes, we have the protagonist Dismas Hardy defending multiple homicide charges against a wife. The prosecution claims that she has murdered her husband and her 8-year old son. This book is loaded on twists, suspense, sentiment and legal drama. When reading such books, one is usually able to root for the innocent or determine the innocent/guilty too - that is certainly not possible in this book. The reader's dilemma in this book extends right to the end and that is truly exhilarating.<br />
<br />
<u>The Firm</u><br />
<a href="http://khofler.files.wordpress.com/2010/04/403cover.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://khofler.files.wordpress.com/2010/04/403cover.jpg" height="200" width="121" /></a>Strictly speaking, this wouldn't classify as a legal novel(most Grisham books don't, I feel), but it just has to do with a bunch of lawyers in a legal firm. This is more of a thriller/suspense and action kind of book, with some really strange happenings at the firm. A college graduate, Mitch, has offers from the top firms in New York, Chicago etc. but decides to join a small tax firm in Memphis (offers loads of cash/perks). The accidental deaths of multiple lawyers working at the firm has him unsettled and this is where things begin to heat up. Suffice to say, once you have reached this stage, you definitely won't put down the book. There is a great deal of lying, deceit, planning, killing, running etc in this book. It does seem a bit far-fetched when you are done with it, but it's entertaining nonetheless. This is a good one-time read book.<br />
<br />
<a href="http://d202m5krfqbpi5.cloudfront.net/books/1388632222l/5359.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://d202m5krfqbpi5.cloudfront.net/books/1388632222l/5359.jpg" height="200" width="131" /></a><u>The Client</u><br />
This book is about a kid who witnesses a suicide and gets caught up in a whole jungle of affairs regarding the dead man's problems. If you've heard the idiom "dead men tell no tales", it certainly does not apply here. With the kid's life at risk, and multiple parties(good and bad) wanting to talk to him about the dead man, he hires himself a lawyer with $1 (what a nice lawyer!). From here on out, it's a wonderful read. That kid is smart, very very smart. With a keen understanding of life and the people around him, the decisions he makes are simply astonishing. This is truly a remarkable read, with a little bit of legal stuff thrown in from time to time.<br />
<br />
<u>The Runaway Jury</u><br />
<a href="http://www.jgrisham.com/images/book-runawayjury-lg.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://www.jgrisham.com/images/book-runawayjury-lg.jpg" height="200" width="131" /></a>Grisham aptly explains the manner in which lawyers(their advisers really) obtain information on the jury candidates, to filter them out and pick the perfect jury for their case. The book starts off with a major case for which the jury is picked and this process is covered in sufficient detail. What makes this book worthwhile - in spite of all that research into the jury candidates, among the jury members picked, there is one person who has hidden motives to swing the verdict in a particular direction. Once the lawyers get a whiff of this intent, book explodes with entertainment. This is definitely a worthwhile read. Although it's a little slow to build up and progress, the satisfaction you obtain when the secrets unfold is immense.<br />
<u><br /></u>
<u><br /></u>
FYI, for all the Grisham books listed above, a movie has been released.<br />
As for the books in this genre currently on my reading list, I don't plan on reading any more Grisham. His books don't truly qualify for the legal novel genre(they are excellent thrillers nonetheless) I enjoyed in The 13th Juror. I'll look forward to reading "To Kill a Mockingbird, by Harper Lee"(highest rated novel in this genre) and the other Dismas Hardy books by John Lescroart next.</div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-81349106912806729532014-04-13T14:08:00.001-07:002014-07-20T12:32:27.649-07:00Portfolio Analysis - April 2014It is extremely important to have the ideal portfolio, one that matches the risk-reward ratio appropriately. This matching would be dependent on your age, your ability and preference to bear risks, risk or reward probabilities for other investments etc.<br />
One's portfolio should have a proper balance between risk-free investments, low-risk/low-return and high-risk/high-return investments. This balance will naturally change over time. As one ages and approaches the retirement age, the portfolio will move from high-risk towards low-risk.<br />
<br />
In this regard, I intend to periodically(most likely on a quarterly basis) record my portfolio standing. This will help me out in several ways:<br />
<br />
<ol>
<li>Identify the risk-reward balance for the portfolio at a given point in time and modify it accordingly.</li>
<li>Identify the portion of savings allocated to the different investment types and correct that allocation over time.</li>
<li>Monitor the growth of the investments over time and restructure if needed.</li>
</ol>
<div>
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<b>Figure 1</b>: Asset allocation including Real Estate(RE) investment through loan</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdjmnYaIb6DeqeiXftlZj7ML0Ml2TXblkK80j4sZuj2CYTNzV7NqEmiaZssXdggtUbwiLQPrXK2W5oGmFMS_mOz4AYwuSvDGQKfNcN9-CbBhLuFqYCquqsriadxsdg_eIYEI_P9r3XhPP1/s1600/apr14-1.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdjmnYaIb6DeqeiXftlZj7ML0Ml2TXblkK80j4sZuj2CYTNzV7NqEmiaZssXdggtUbwiLQPrXK2W5oGmFMS_mOz4AYwuSvDGQKfNcN9-CbBhLuFqYCquqsriadxsdg_eIYEI_P9r3XhPP1/s1600/apr14-1.PNG" height="307" width="320" /></a></div>
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I purchased a flat at a very early stage of life(I'm nearly 24 years old) and this has skewed my portfolio heavily towards that investment. I have provided an asset allocation excluding the RE investment as well, but that's below. Let's take a look at this one first.</div>
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</div>
<ul>
<li>The High Risk investment comprises of the Equity and Receivables(money lent to others) components.</li>
<li>The Low Risk investment comprises of the balance in the Savings bank account as well as the Deposits(a few Recurring Deposits(RDs)).</li>
<li>The Risk Free investment comprises of the RE and PF(PPF and EPF contributions) components.</li>
<li>Change is currently recorded as 0. This value will get updated when the next period's analysis is done.</li>
<li><i><u>Analysis</u> </i>- As is obvious, considering the age factor and the ability to bear risk, the High Risk component is much lower than it should be. I feel that it should at least have 60% allocation of total investments. The remaining 40% can be divided between Low Risk and Risk Free investments. That said, I don't think that may be possible(certainly not in the near future) due to the heavy contribution from RE.</li>
</ul>
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<b style="text-align: left;">Figure 2</b><span style="text-align: left;">: Asset allocation excluding Real Estate(RE) investment</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2pV_TnXyzrgO0YSwch2yBi1TGXCdlR114L7Vs0ewBz1B-nqV8RusA5HnER1L3xPmBa6kpUibmDoFgCjimNHYK61bo5CiRqDgV__L6qtV6m5OLMsbW6O4rQJEto68WDBLl6bwa4v2OGTnZ/s1600/apr14-2.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2pV_TnXyzrgO0YSwch2yBi1TGXCdlR114L7Vs0ewBz1B-nqV8RusA5HnER1L3xPmBa6kpUibmDoFgCjimNHYK61bo5CiRqDgV__L6qtV6m5OLMsbW6O4rQJEto68WDBLl6bwa4v2OGTnZ/s1600/apr14-2.PNG" height="305" width="320" /></a></div>
<br />
Now, let's take a look at the asset allocation if we exclude the RE investment.<br />
<br />
<ul>
<li><i><u>Analysis</u></i> - The Low Risk and Risk Free components together account for about 65% of the total portfolio assets. This kind of a distribution is suitable for someone around the age of 50! In spite of removing RE from the calculation, the charts show that the portfolio is not designed as it should be.</li>
<li>The low allocation in High Risk is not because I can't handle the risk, it's because the portfolio is not designed correctly. It requires restructuring to amplify potential returns(at the cost of increased risk, which I can bear).</li>
<li>Since Equity is the only High Risk favourable investment(hate the idea of Receivables increasing) and the PF contribution is already quite high, every opportunity I get to deploy surplus funds should be two purposes - Savings(to meet Emergency Fund requirements, more on that <a href="http://pranavtelang.blogspot.com/2014/04/are-you-financially-sexy.html">here</a>) and Equity(increasing potential returns). Another challenge is that, every month, a fixed amount from my income is earmarked for PF(EPF) by the company, so I'd have to trump that amount to alter the current portfolio allocation - no easy task considering the EMI I pay for the RE.</li>
</ul>
<div>
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<div style="text-align: center;">
<b>Figure 3</b>: Equity Portfolio</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhq3I3nBDD7Z7XM3b2GUf22lVT0BF0SPG5wPDJakzEaZbdUIV9o612iobWedTjl-jKJeal7O6KY-2vLAJ5__3CJ9sd1k658WehDWIwr9U_CSvtlOQy9ArOP02vDOm7MCe8EKM-GS89jIJGX/s1600/apr14-3.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhq3I3nBDD7Z7XM3b2GUf22lVT0BF0SPG5wPDJakzEaZbdUIV9o612iobWedTjl-jKJeal7O6KY-2vLAJ5__3CJ9sd1k658WehDWIwr9U_CSvtlOQy9ArOP02vDOm7MCe8EKM-GS89jIJGX/s1600/apr14-3.PNG" height="400" width="296" /></a></div>
<br />
Since Equity investment is a critical component of my future investments aimed towards obtaining a well-structured portfolio, I felt it would be a good idea to monitor the Equity Portfolio as well and tailor it to meet my requirements.<br />
<br />
<ul>
<li>The Defensives include SUNPHARMA and ITC.</li>
<li>Risky bets includes FSL and GAYAPROJ.</li>
<li>Growth includes HCLTECH, L&T and SBIN.</li>
<li>NIFTY is the EOD index value (for Nifty) against which we will compare the portfolio. We will also record the equity net worth change over time.</li>
<li>Newly Added funds refers to the funds added between the two periods that we compare the portfolio. Deployable funds refers to the funds that is earmarked for equity investment but is currently held in cash with the brokerage firm.</li>
<li><i style="text-decoration: underline;">Analysis</i> - As I see it, Defensives allocation is quite high. Any funds that need to be deployed ahead should be put in Growth or Risky bets. I feel that not more than 20% of the portfolio should be held in Risky bets(I've often had ill luck with these). Besides if the Growth stocks net substantial returns, then there won't be a need to over-expose the portfolio to the Risky bets.</li>
<li>Strictly speaking, I am a long-term investor and seldom do I attempt short-term trades to book quick profits. So I anticipate we'll see low returns in the near future, but over a period of time, the returns should be decent enough(if fortune favours me). However, that is for the future, let's just see how things move from here.</li>
<li>I don't like to hold portfolios with a lot of stocks since they don't really help with risk reduction through diversification beyond a certain point. I am not saying I know what that magic number is, but I tend to draw the line at 6 to 8 stocks, considering that the absolute amounts I am investing are not very high. Guess I'll just have to learn with time and find this magic number out myself.</li>
</ul>
<div>
<br /></div>
<div>
Well, it is obvious that this portfolio needs a lot of work! Until I started this exercise, I never imagined that my portfolio would be so biased towards Low-Risk investments. I probably knew it, but just didn't want to accept it. Charting the portfolio and writing this down definitely helped. I suggest everyone should maintain a track record of their investments to ensure that the portfolio is structured the way it is meant to be(or required to be) structured.</div>
<div>
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Do let me know your thoughts and suggestions.</div>
<br />Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-55593714801335647172014-04-13T10:04:00.000-07:002014-04-13T10:20:33.193-07:00Are you Financially Sexy?I came across this post which spoke about being "Financially Sexy" and immediately liked it. Thought I'd share the gist with you guys, while adding my opinions to it.<br />
<br />
It's not that someone who earns a lot or has a lot of luxuries at his disposal is financially sexy, as the myth is, because we all know the numerous rich people who have applied for bankruptcy, or gambled away their riches. So what is financial sexiness and how do you achieve it? Well, there are certain criteria that you have to meet in order to become financially sexy.<br />
<br />
<ul>
<li><b>High Credit Score</b></li>
</ul>
<div>
It is vital that you have a very high credit score, preferably more than 85% of the maximum score. If the score is calculated up to a scale of 1000, your score should be above 850. With a high score, not only is it easier to get a loan, but you get them at lower interest rates too.<br />
I haven't run my score yet, gotta put it on the agenda and get it done as well.</div>
<div>
<ul>
<li><b>Savings >= 15% of Gross Income</b></li>
</ul>
<div>
This is a critical measure that very few people realise. The general tendency is to consume during the month and the leftovers are the savings. I prefer to set aside 15% of the income at the start of the month and the remaining can be made available for consumption. If there are leftover funds at the end of the month, they can be added to the savings as well. This is especially essential since the American consumerism has spread all over the world and credit cards have became a necessity for some, rather than a convenience. The next measure highlights this as well.</div>
</div>
<div>
I generally save about 15% of my income every month, unless some unexpected large expenses come by. But I'd like to save some more, and increase my investment pool now.</div>
<div>
<ul>
<li><b>Credit card utilization at 35%</b></li>
</ul>
<div>
People tend to utilize the entire credit limit that is available to them, which is a risky proposition and would be avoided by a financially sexy person. One should try to utilize not more than 50% of the credit card limit, and a financially sexy person would limit this to 35%. This not only reduces the risk on the credit, but also boosts the credit score.</div>
</div>
<div>
Fortunately, I don't have a credit card. But I don't see myself exceeding the 35% threshold even if I do get one in the future.</div>
<div>
<ul>
<li><b>Healthy Emergency Fund</b></li>
</ul>
<div>
I strongly suggest that one should have at least 3 months of living expenses worth of liquid funds stashed aside for emergencies. I am aiming at 6 months of living expenses to cover me, because you never know how the tables might turn on your fortune. The simplest example that comes to mind is the recession of 2008.</div>
</div>
<div>
I did have a good fund until a few months back which unfortunately got used up to meet some investment needs. That was wrong on my part and I am already working on getting that fixed. I have about a month's worth of savings in emergency funds, which I'll increase to six months at the earliest and hold it there.</div>
<div>
<ul>
<li><b>Debt to income of 35% or less</b></li>
</ul>
<div>
This ratio represents the amount of debt you owe to the amount of income you earn on a monthly basis. The 35% figure is sufficient to give you some flexibility with your future choices, should you opt for anything different. But a lower ratio would certainly be preferable. The lower ratio also provides the added benefit of obtaining additional loans with comparable ease.</div>
</div>
<div>
I do have a pretty high debt, about 50% of my income, in the form of home loans. Over a year or two, hopefully, I will be able to bring it down to 35%.</div>
<div>
<ul>
<li><b>Portfolio with appropriate risk-reward relationship</b></li>
</ul>
<div>
This is a pretty debatable topic because it depends on individual financial conditions. What I am trying to put across here is that you should not only be comfortable with your portfolio allocation, but should also be right about it. For example, a person aged 60 should not have a greater chunk of his portfolio in high risk investments - on account of his retirement, he should preferably have a steady source of income from pension accounts, or rental incomes or any other source of steady income that is not susceptible to drastic losses unexpectedly. More on portfolio allocation in a future post.</div>
</div>
<div>
<br /></div>
<div>
So, what do you think? Are you financially sexy or will you have to make some changes to fix up your financial situation? Do you think there are any additional criteria that should be considered here?</div>
<br />
<br />
<div>
</div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-76948880445587408152014-04-04T10:57:00.000-07:002014-04-04T10:57:08.332-07:00The Three Musketeers trilogy<a href="http://img1.wikia.nocookie.net/__cb20120917072411/childrensbooks/images/d/dd/The_Three_Musketeers.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://img1.wikia.nocookie.net/__cb20120917072411/childrensbooks/images/d/dd/The_Three_Musketeers.jpg" height="200" width="125" /></a>Now who could possibly not have heard of or read "The Three Musketeers" by Alexandre Dumas! Reading this book in the school library was one of my favourite activities. So I decided to read it up once again, and to my surprise, found that it had sequels. I was compelled to write this blog after having read those sequels. In a word, they are brilliant!<br />
The trilogy for the series is as follows:<br />
<br />
<ol>
<li>The Three Musketeers</li>
<li>Twenty Years After</li>
<li>The Vicomte of Bragelonne: Ten Years Later</li>
</ol>
<div>
<u>The Three Musketeers</u></div>
<div>
<a href="http://img2.imagesbn.com/images/103300000/103309803.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://img2.imagesbn.com/images/103300000/103309803.jpg" height="200" width="133" /></a>This book introduces us to the three famous musketeers, Athos, Porthos and Aramis. It is written from the perspective of the protagonist, D'Artagnan, who is aspiring to be a musketeer. I don't want to share any more than this since the description of the characters is really fun to read.</div>
<div>
This book is loaded with friendship, adventure, chivalry, honour, action and timely shouts of "all for one, one for all". Rest assured, you'll be immersed in this book until you put it down.</div>
<div>
<br /></div>
<div>
<u>Twenty Years After</u></div>
<div>
This is a sequel to The Three Musketeers and follows the story of the musketeers 20 years after the events of the first book. This book doesn't live up to Dumas' work standards but it does well for a sequel. It acts as a good bridge between The Three Musketeers and The Vicomte of Bragelonne.</div>
<div>
<br /></div>
<div>
<u>The Vicomte of Bragelonne</u></div>
<div>
<a href="http://images.contentreserve.com/ImageType-100/1785-1/%7BC1AFF7DB-D83F-4C4D-A7A9-4B0FF605CA69%7DImg100.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://images.contentreserve.com/ImageType-100/1785-1/%7BC1AFF7DB-D83F-4C4D-A7A9-4B0FF605CA69%7DImg100.jpg" height="200" width="150" /></a>This is a truly a masterpiece. It is the largest book of the three, probably thrice as big as The Three Musketeers and thrice as enriching, at the very least. Dumas maintained an unusual writing style in this book, which he hadn't explored in either of the prequels, thus making it an exciting read. A good deal of the book has exploits driven by romantic needs and loyalty, and at times, a conflict between the two. We see politics, diplomacy, treachery and deceit at its fullest. This book truly is one of a kind.</div>
<div>
<br /></div>
<div>
It's a daunting task to read all those books at a stretch. I was tired by the time I was done with the third book. I suggest taking a break and reading some other book after completing a section or two of the final book. But, by no means, is this a trilogy that can be missed out on.</div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-21196592834869632862013-05-08T11:33:00.002-07:002014-04-13T14:00:45.716-07:00A Primer to Life Insurance Policies<br />
A myriad of insurance schemes have hit the markets over the last decade, most of which aren't exactly insurance. Over the last decade, insurance has become more of an investment avenue than what it was meant to be, all the ULIP schemes and pension like schemes bear testimony to the statement. Of course, each has its merits and demerits and I shall attempt to list these down to facilitate your decision making or draw suggestions from you. There is quite a variety of schemes out there, and I shall list some of the most popular ones:<br />
<br />
1. Term Insurance Plan.<br />
This is the vanilla insurance scheme, which provides cover for your life(and whatever riders you attach to your plan) by funding your dependants. In case you do not die(or any of the rider clauses aren't met) over the tenure for which you are insured, you do not receive any money. If you are going for one of these, try to get the online schemes from reputed firms since the premiums are lesser. Check the claims ratio for the firm as well, higher the better.<br />
<br />
Advantages:<br />
Separates investment from insurance, gives clarity to your goals.<br />
Huge cover for small premium amounts(compared to other options).<br />
<br />
Disadvantages:<br />
Provides zero return if policy holder survives(or rider clauses not met).<br />
<br />
<br />
2. ULIP - Unit Linked Insurance Plan<br />
This is more like a mutual fund with the benefit of insurance plan(hence tax benefit) attached to it. The insurance cover is negligible and the fund management fees are astounding during the first year. The premiums paid go towards the fund management fees and the investment in the market. The portfolio breakup for the fund corpus is generally declared in the document(of course, with the clause that it is subject to change). There is generally a lock-in period associated with these schemes as well. Also, there is often a clause of bonus returns, wherein, in case of good fund performance, the policy holder is rewarded with better returns on the investment.<br />
<br />
Advantages:<br />
Possibility of better returns exists.<br />
Provides tax benefits on investments in the equity markets.<br />
Funds can be liquidated partially(read terms and conditions for this)<br />
<br />
Disadvantages:<br />
Risk bearing investment, susceptible to losses<br />
Very low insurance cover, can't really be called a good insurance scheme.<br />
<br />
3. Pension/Retirement Insurance Plan<br />
This generally requires you to pay premiums until your retirement age(or an age of your preference, as long as it falls within their predefined age limits), and post retirement(or that age) you get regular income(fixed value or it may increase at a predefined interest rate) from the company. In case of death prior to all the premium payments, your family will receive the regular income from the company. This scheme can be used as mentioned above, or it can be used to meet some future financial goals. One needs to do some hard calculations before opting for such schemes For example, if you are paying $10000 annually towards such a scheme for the next 12 years and you are to receive $20000 from the 13th year, compounded annually at 5% from the 13th year, it is up to you to evaluate and deduce whether $20000 will suffice for a year 10 years down the road(values taken are only for example scenario). Of course, this might work in countries with low inflation rates but it would be difficult otherwise.<br />
<br />
Advantages:<br />
Provides steady income along with insurance benefits.<br />
Adequate calculations required at the time of premium selection for future planning.<br />
Low risk investment.<br />
<br />
Disadvantages:<br />
Can fall prey to high inflation rates and low interest rates.<br />
Generally yields low returns.<br />
<br />
<br />
Honestly, in my opinion, it would be best to go for a Term Insurance Plan at a young age, when the premiums charged are low, and take it over the longest term possible. After a decade or so from the first Term Insurance policy, take another Term Insurance policy. This should seal the deal for your dependants I suppose. With the internet era, and the online schemes charging lower premiums, this should be a good option.<br />
If you haven't accumulated wealth for retirement through other means, then you can go for the Pension Insurance Plan, about two decades or less prior to expected retirement age. By that time, you would be quite comfortable with your earnings and such an investment wouldn't probably hurt. I would, however, suggest that instead of going for the Pension Plan, you could just buy a flat or two, and rent them out. They would quite comfortably cover you for the month(of course, you'll have to plan the flat purchase well).<br />
As hard as I try, I can't find a valid justification for a ULIP. Even for an investor, a good mutual fund would be a better option than a ULIP. One might argue that the absence of capital gains tax for ULIP beats mutual funds, but one would have to calculate the tax against the fees paid to the ULIP fund manager. And as far as insurance goes, ULIP provides the worst cover. If you can think of a reason why ULIP is a good option, please do enlighten me.<br />
<br />
Added a flowchart below to summarise everything above, hope it helps.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhM52WjT6oK75suuUkqNcEDpfSIpQ8zc3Z1VRfTEe5Aw2-LuyNm7b6pBblc-so0-JM0502HTA8bq7aEcthsEGyydTxGU1L7D5HA5W9FNdpJtkVPhX-DyHjIM2snqVTPXz9wB6YqiQQF-6_2/s1600/Insurance+Flowchart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhM52WjT6oK75suuUkqNcEDpfSIpQ8zc3Z1VRfTEe5Aw2-LuyNm7b6pBblc-so0-JM0502HTA8bq7aEcthsEGyydTxGU1L7D5HA5W9FNdpJtkVPhX-DyHjIM2snqVTPXz9wB6YqiQQF-6_2/s640/Insurance+Flowchart.png" height="480" width="640" /></a></div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-70022264900791318002013-03-30T03:37:00.000-07:002014-08-31T07:07:10.183-07:00Miscellaneous reads<br />
Now here's a listing of a bunch of books that I found to be different from your general variety of books. Read on to find out more.<br />
<br />
<br />
<ol>
<li>The Godfather by Mario Puzo</li>
<li>The Day of the Jackal by Frederick Forsyth</li>
<li>Strong Medicine by Arthur Hailey</li>
<li>The Bourne Series by Robert Ludlum</li>
</ol>
<br />
<div>
<br /></div>
<div>
<u>The Godfather</u></div>
<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs3y70xo54eSMVCpEenxQLSXyo2iqL4TuIH8xcg-inaSMIFLELlS3uc6A2MrfnyOwd26_D7_DfI0Gd3-TUJrA6Wg1T0j5XzpEdu922sjIQQwUj0VikmNsdBlo2O6akvnjO4wPGslBawgcZ/s1600/The-Godfather.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs3y70xo54eSMVCpEenxQLSXyo2iqL4TuIH8xcg-inaSMIFLELlS3uc6A2MrfnyOwd26_D7_DfI0Gd3-TUJrA6Wg1T0j5XzpEdu922sjIQQwUj0VikmNsdBlo2O6akvnjO4wPGslBawgcZ/s1600/The-Godfather.jpg" height="200" width="121" /></a>This book revolutionised thinking and culture in America and was Puzo's seminal piece of work which laid the foundations for future crime novels. As most would already know, Godfather here refers to the head of a Mafia family and is responsible for the welfare of that family as well as the successful running of the illegal activities carried out by the family.<br />
The book's lead roles emphasise on respecting the family heritage, the Italian culture and a do-or-die attitude to protect one's family. What makes the book remarkable is the portrayal of the Godfather, his persona, his ability to solve the toughest situations through reasoning and dialogue and the unbelievably smart advice he gives his kids even in the face of adversity and danger. It also brings to light the nature of the world, how a democracy functions(not like we didn't know this earlier), what greed and the desire for power make people do, results of lack of anger-management, betrayal and its consequences, the love for family et al. I especially liked the devious strategies employed to thwart one's enemies and traitors. This novel is the complete works. Everything you can encounter in life is depicted somewhere in this book.<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJAGvQD3a8gB5XGJyNZlGHcL6qWTxnoOcdOHLhwmc-476Yc-Ufoz_6gJOGyQWpfAklpKTu_T_4QXIgNjSJB3Hugl2Hqg-HDuW-a6nVXnwWU2rqztgSBMng7OhEntp3d6IA7fCOeKbPveoR/s1600/last+don.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJAGvQD3a8gB5XGJyNZlGHcL6qWTxnoOcdOHLhwmc-476Yc-Ufoz_6gJOGyQWpfAklpKTu_T_4QXIgNjSJB3Hugl2Hqg-HDuW-a6nVXnwWU2rqztgSBMng7OhEntp3d6IA7fCOeKbPveoR/s1600/last+don.jpg" height="200" width="121" /></a>I haven't had the opportunity to read the sequel to this book though, 'The Sicilian', but it did not gather the same kind of fame that The Godfather did.<br />
<br />
Another one of Puzo's books, The Last Don, focused less on the crime part and more on the love part. But since it also contained devious plans and strategies to get rid of enemies, it didn't fail me. Absolutely enjoyed this book too. In many ways though, this one seemed like a quick read compared to the Godfather, probably cause of the writing style and content. Some of the content in Godfather felt unnecessary at times(probably because Puzo left you on a cliffhanger in the previous chapter and took you to another character in the following chapter) but this book had a continuous link throughout. Of course, there were cliffhangers, but it seemed like it was more structured and there was continuous action in the book. All said and done, both the books are well worth reading.<br />
<br />
<a href="http://www.youtube.com/watch?v=wB8xPnhpzAM">Godfather description by Tom Hanks</a><br />
<br />
Check out this video to see what Tom Hanks has to say about the Godfather in You've Got Mail.<br />
<br />
<u><br /></u>
<u>The Day of the Jackal</u><br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzX32D46MV3hn9qsYGb_F4B82nN8CUsSFuN0dp6HF53CtYAgVUpdmBOQR2la17727yON-gGjqkPFPWFRRUR1enp4F5ans1twX1KtQyYDarsezay2URQOgw5PWrx_4CgfsaWwsZBBOH0OUg/s1600/day+of+the+jackal.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzX32D46MV3hn9qsYGb_F4B82nN8CUsSFuN0dp6HF53CtYAgVUpdmBOQR2la17727yON-gGjqkPFPWFRRUR1enp4F5ans1twX1KtQyYDarsezay2URQOgw5PWrx_4CgfsaWwsZBBOH0OUg/s1600/day+of+the+jackal.JPG" height="200" width="132" /></a>This is the best crime/action book out there, believe me! It absolutely blew my mind off. The detailed description of every step taken by the hired assassin, right from creating fake identities to identifying the vantage point for the kill, every bit of it was remarkably done. Add to that the fact that the high profile target is already alerted about the assassination attempt! The book has two perspectives - the assassin's and the secret agency's which is trying to identify and capture the assassin before he makes the kill - and both are equally enthralling. Saving the first few chapters of the book which laid the groundwork, I can't recall any moment during the rest of the book which made me feel like I was getting bored or why the author had to put those details in the book. No regrets and no time wasted in this book.<br />
<br />
<br />
<u>Strong Medicine</u><br />
Heads up, this book is very very different from the remaining books I have recommended so far. It is kind of<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7E4s3NasOqLRRBF7W3ezyQZOA20bbvYOFFvKfaZ_q5V9aFGwsKW1ix9tjj6rz8ythTvMUo2aVP4apTAd_kFkO6pg7EOKg63M5yeeb_G4ALxREqKmmLIGdYm-Bl7LUPluQhyphenhyphenaTfwLenbQ-/s1600/strong+medicine.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7E4s3NasOqLRRBF7W3ezyQZOA20bbvYOFFvKfaZ_q5V9aFGwsKW1ix9tjj6rz8ythTvMUo2aVP4apTAd_kFkO6pg7EOKg63M5yeeb_G4ALxREqKmmLIGdYm-Bl7LUPluQhyphenhyphenaTfwLenbQ-/s1600/strong+medicine.jpg" height="200" width="121" /></a> like a documentary spruced up with mystery and thrill. Let me explain. Arthur Hailey is the kind of author who provides absolutely all the information that exists on a particular topic. So when he explains about the process by which experimental drugs turn into marketable medicines, he takes you step by step through the entire process spanning the different teams, approvals and organisations involved. Needless to say, this makes up for a lot of information on drugs. Now for the mystery and thrill part. Since the drugs are made by a company, it entails making money. So, Hailey gets the opportunity to show you the manner in which conglomerates think and how the decisions are taken to make profits. This is certainly a good read, but I warn you, there will be times when you feel an information overload. Since I liked the manner in which he portrayed the wrong actions of the individuals in the company to enhance their interests, as well the information about drugs/medicines, I enjoyed the book in its entirety.<br />
<br />
<br />
<u>The Bourne Series</u><br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM_7mGzCbSK06LirysCIhZgMUDUk5lelPPih7xUdSnWYVSZKjF2j9al3hBauZ3xL1J0LnUR047rD4U9HkPoExsDjsTXPOTEGzuidOB6CIx7df9vMHFuOSsA_CPtDEXN7JjaIy3flLarkLp/s1600/bourne+identity.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM_7mGzCbSK06LirysCIhZgMUDUk5lelPPih7xUdSnWYVSZKjF2j9al3hBauZ3xL1J0LnUR047rD4U9HkPoExsDjsTXPOTEGzuidOB6CIx7df9vMHFuOSsA_CPtDEXN7JjaIy3flLarkLp/s1600/bourne+identity.jpg" height="200" width="123" /></a>A trilogy of action books, this is a wonderfully written series with detailed instructions on how to become an assassin as well. The first book I came across which had such detailed description on steps to take to live a life of an assassin. The series consists of:<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpp2FUu4lsAYgXTob03kL2bIH2hdf8vSwd5PE7S_IDTViHGVVbcw51AM4asK4mKvEJXJKumQAWc56Lds_gUCLf-rWkWKYunqZWbW4cR5Zq-Ro0-n5zaLlrL3V13cHjnVsYtZu40-xQJrtO/s1600/bourne+supremacy.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpp2FUu4lsAYgXTob03kL2bIH2hdf8vSwd5PE7S_IDTViHGVVbcw51AM4asK4mKvEJXJKumQAWc56Lds_gUCLf-rWkWKYunqZWbW4cR5Zq-Ro0-n5zaLlrL3V13cHjnVsYtZu40-xQJrtO/s1600/bourne+supremacy.jpg" height="200" width="126" /></a><br />
<ul>
<li>The Bourne Identity</li>
<li>The Bourne Supremacy</li>
<li>The Bourne Ultimatum</li>
</ul>
<div>
In the first book, the lead role Jason Bourne suffers from amnesia and is trying to fend off attempts on his life from terrorist groups, paid assassin as well as the CIA. At the same time, he is trying to recover his memory while safeguarding a woman who is stuck with him. Wow, quite a handful on his plate, even for an assassin. Ludlum pulls this off with grace and unparalleled writing skills. While reading an action scene in the book, you literally picture that happening right in front of you, every single move too, even the complicated assassination moves used in one-to-one combat.</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcg9QArW0eutIt3N_oGC5rs1DNd95sSBqtwzFDGwmYO8hVAT1ohr_g14h_GMFraVP-5vrlcMM7chNDO5v_hFag-b8B6S_2VuVzuqeGNLa1zQw-3pwxj3c-bN8HhOimMUtUC-obx2NMFd7u/s1600/bourne+ultimatum.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcg9QArW0eutIt3N_oGC5rs1DNd95sSBqtwzFDGwmYO8hVAT1ohr_g14h_GMFraVP-5vrlcMM7chNDO5v_hFag-b8B6S_2VuVzuqeGNLa1zQw-3pwxj3c-bN8HhOimMUtUC-obx2NMFd7u/s1600/bourne+ultimatum.jpg" height="200" width="123" /></a></div>
<div>
I can't describe much about the next two books since that is bound to reveal Spoilers but to make sure you are interested in them, I can tell you this - Jason Bourne becomes the hunter in the next two books vis-a-vis the target as in first book. A trained assassin out to kill, now that's definitely a book worth reading, especially when it is written by Ludlum.</div>
<div>
<br /></div>
<div>
There are several other books on Bourne out in the market, but they aren't written by Robert Ludlum.</div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-20976929930883703492013-03-29T12:35:00.005-07:002014-08-31T13:13:03.339-07:00The Best of Jeffrey Archer<br />
Jeffrey Archer has written two undeniable masterpieces, listed below as items 1 and 4. I have read several books by Archer, his collection of short stories as well as the books he wrote when he was in prison. But among all his books, these two caught my attention. For the sake of completion of the trilogy which started off with Kane and Abel, I have listed two other books which may catch your interest.<br />
<br />
<br />
<ol>
<li>Kane and Abel</li>
<li>The Prodigal Daughter</li>
<li>Shall We Tell the President</li>
<li>A Prisoner of Birth</li>
</ol>
<div>
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<div>
<u>Kane and Abel</u><br />
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<u></u></div>
<u>
</u></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikq61MkzyGcoJOdOnLdO-itogZmBPkwx-rQOCe5LBLjA5FP4hQ4gXsqXUkZKuipdI0BIhlvB5G2u4YJfVvkf67yiEz6HbrTsu9-KMWjBXgR0vtO8bk0lS4Ki0b-pkl6grNi2LkBWHgMUao/s1600/kane+abel.jpg" imageanchor="1" style="clear: right; display: inline !important; float: right; margin-bottom: 1em; margin-left: 1em; text-align: center;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikq61MkzyGcoJOdOnLdO-itogZmBPkwx-rQOCe5LBLjA5FP4hQ4gXsqXUkZKuipdI0BIhlvB5G2u4YJfVvkf67yiEz6HbrTsu9-KMWjBXgR0vtO8bk0lS4Ki0b-pkl6grNi2LkBWHgMUao/s1600/kane+abel.jpg" height="200" width="131" /></a>First and foremost, Kane and Abel is a must read for every single person out there. In my opinion, it is the best and yet, most simplest work by Archer. It is the first of the trilogy, which ends with item 3 in the list above.</div>
<div>
A marvellous book revolving around two men, who were different in every manner except their day of birth and the zeal to succeed in life, it tells their stories in a gripping manner. Born on the opposite sides of the world, they are brought together by fate and a quest of a dream. To keep the readers hooked, Archer ensures that the two protagonists of the book are locked in a spiteful struggle to defeat the other and expand one's empire, thus making you, willingly or not, choose your favourite. It's a tough battle, trust me, but that makes the book a whole lot special.</div>
<div>
This book has it all - thrill, mystery, drama, contemporary, historical fiction et al. It will take you through struggles, jealousy, hatred, love, inaccurate assumptions and misunderstandings, success and wealth, coincidences and accidents, and Life.</div>
<div>
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<div>
<u>The Prodigal Daughter</u></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPLsyE2ilmhnTpfpLXt6Eomukg1LFoi7EZMwk7nlUlUND2a1HAeQHiCSwu8y6msyaG4cBVY4Hp-tk6MImxdjqUtX83bEiI4trHK0jJJA4m9viEDs7uoSpH-Ra2ouTVGsDt64YB75jiycm7/s1600/prodigal+daughter.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPLsyE2ilmhnTpfpLXt6Eomukg1LFoi7EZMwk7nlUlUND2a1HAeQHiCSwu8y6msyaG4cBVY4Hp-tk6MImxdjqUtX83bEiI4trHK0jJJA4m9viEDs7uoSpH-Ra2ouTVGsDt64YB75jiycm7/s1600/prodigal+daughter.jpg" height="200" width="131" /></a>This is the sequel to Kane and Abel. Another good book, but does not compete with its predecessor by a long shot. It depicts the struggles of Florentyna, daughter of Abel, as she sets the highest target for herself and strives to achieve it. This book depicts the difficulties faced by a working mother, how she tries to balance life and work and cope with the problems faced by her family while juggling the her business.</div>
<div>
I found the book to be very drawn out, almost as if Archer wanted to meet some total page count requirement. It includes quite a bit of information on the political system and a great deal of historical fiction as well, since Archer<span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="background-color: white; color: #181818; line-height: 19px;"><span style="font-family: inherit;">used a lot of history and tied in actual names and historical occurrences within the fictional story.</span></span></div>
<div>
<br /></div>
<div>
<u>Shall We Tell the President</u></div>
<div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnYZdCioGE9Q7uvNVFlOG4SfnUvWhpOhP0fQKcunVF61VLpB0Rk8R2MpaVJ_js2ADrnJFSMq20F8DSTAueCKbrTlR9un8tXJZHgx8nllGAvX2zWJe7dJoaIsV1EMdSG3A3ubkVuBjIOB9b/s1600/Shall-we-tell-the-president.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnYZdCioGE9Q7uvNVFlOG4SfnUvWhpOhP0fQKcunVF61VLpB0Rk8R2MpaVJ_js2ADrnJFSMq20F8DSTAueCKbrTlR9un8tXJZHgx8nllGAvX2zWJe7dJoaIsV1EMdSG3A3ubkVuBjIOB9b/s1600/Shall-we-tell-the-president.jpg" height="200" width="111" /></a>This is a weird one. It was actually released before the above two books, with Ted Kennedy as the main role. But due to the success of the above two books in the years, it was rewritten and the main role was changed to include a character from the previous book to play as the main role instead.</div>
<div>
This one, I haven't read yet, but since it was made a part of the trilogy, I doubt anyone would let it pass after completing the first two books. I don't have high hopes from this one though since it was added to the trilogy only due to the success of the first two books.</div>
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<br /></div>
<div>
Truth be told, I would strongly recommend Kane and Abel only, in this trilogy. Having read The Prodigal Daughter, I wouldn't rule it out as a good read, but going from Kane and Abel to The Prodigal Daughter is a big disappointment.</div>
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<div>
<u>A Prisoner of Birth</u></div>
<div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4sAYIF3DkqBhC2CRO1kZKGvTpYQ2KAgJFUKiZVNqynVlCsJw68bkNETpDqAfxRziNl_hpux0jScpftT8HmkMaoqWN0uDwXhXT9DKhxdHhuf7rM7RegpOFNk0DQIvevd7fQhuJJUJIgZi9/s1600/A_Prisoner_of_Birth_Jeffrey_Archer.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4sAYIF3DkqBhC2CRO1kZKGvTpYQ2KAgJFUKiZVNqynVlCsJw68bkNETpDqAfxRziNl_hpux0jScpftT8HmkMaoqWN0uDwXhXT9DKhxdHhuf7rM7RegpOFNk0DQIvevd7fQhuJJUJIgZi9/s1600/A_Prisoner_of_Birth_Jeffrey_Archer.jpg" height="200" width="130" /></a>This is one of my favourites as well. You must know that I am huge fan of courtroom drama-mystery-thriller books. This one had them all, in a perfect mix too. I can recollect the book lucidly as I write this, it's a great book.</div>
<div>
It is like reading The Count of Monte Cristo by Alexandre Dumas, but with the events happening in the 20th century context. The initial half of the book is spent in depicting the event concerning the plot of the book and the legal discourse associated with it, while the later half is spent on planning and exacting revenge on the culprits (not exactly halves, but you get the picture...if you don't, read the book).</div>
<div>
Aside from some very lucky coincidences happening to the protagonist, this book has no flaws and is a page-turner.</div>
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<br /></div>
<div>
A list of other books from Archer that I plan on reading are:</div>
<div>
<ul>
<li>Not a Penny More, Not a Penny Less</li>
<li>As the Crow Flies</li>
<li>The Clifton Chronicles books</li>
</ul>
<div>
Some of his other books are either very similar in plot to the books listed above or are of the political drama genre and those tend to get too boring at times.</div>
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Happy Reading!</div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-14366799154559533092013-03-18T02:36:00.002-07:002014-08-31T13:16:14.163-07:00Why you must read "The Hitchhiker's Guide to the Galaxy" by Douglas AdamsI have always enjoyed a book that can make me laugh, and Douglas Adams managed to come up with four of those. For some reason, British authors are exceptional at hypnotizing the reader through their books. Whether it be Adams with his satirical comedy or Wodehouse with his depiction of situation comedy in the most lucid manner or Rowling with instances of humour tied in with fantasy in an interesting mixture, they all managed to keep the reader happy and hooked.<br />
<br />
Coming back to The Hitchhiker's Guide to the Galaxy by Douglas Adams, it is a 5-part book, based on a radio comedy show run in 1978 on BBC radio.<br />
The books in this series, in chronological order are:<br />
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<ol><span style="background-color: #f9f9f9; font-family: inherit; line-height: 18.234375px;">
<li><span style="font-family: inherit;">The Hitchhiker's Guide to the Galaxy</span></li>
<li><span style="font-family: inherit;">The Restaurant at the End of the Universe</span></li>
<li><span style="font-family: inherit;">Life, the Universe and Everything</span></li>
<li><span style="font-family: inherit;">So Long, and Thanks for All the Fish</span></li>
<li><span style="font-family: inherit;">Mostly Harmless</span></li>
<li><span style="font-family: inherit;">And Another Thing...(by Eoin Coffer)</span></li>
</span></ol>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjnkL7Kckmp0cwU1zVmuvjZgxlUllAGl7SjXUWuM9Wz5AEF35mrmjSxXZGgiL9pqIZSAglgFrBNEWFf3bJ2X-vZLgw8o-pIaEL5fzjYrbiOiyw9gGipCGPZMQKBVUE2eKrmCSRAL6FYj-X/s1600/hitchhikers.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjnkL7Kckmp0cwU1zVmuvjZgxlUllAGl7SjXUWuM9Wz5AEF35mrmjSxXZGgiL9pqIZSAglgFrBNEWFf3bJ2X-vZLgw8o-pIaEL5fzjYrbiOiyw9gGipCGPZMQKBVUE2eKrmCSRAL6FYj-X/s1600/hitchhikers.gif" height="184" width="640" /></a></div>
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<span style="line-height: 18.234375px;"><u><i>Why you should read these books:</i></u></span></div>
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</span></div>
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<span style="line-height: 18.234375px;">Douglas Adams had a very unique style of writing, in my opinion. I haven't encountered this in any other book yet. The humor in his books aptly falls in the category of Gallows Humor, which is basically witticism in the face of a hopeless situation, laughter in the face of death. It is generally written with respect to the victim, which makes it all the more interesting to read. Someone at the gallows is being mocked or is mocking himself, surely that can crack one up. Top that with Adams' writing skills and you have a winner here.</span><br />
<span style="line-height: 18.234375px;"><br />
</span><span style="line-height: 18.234375px;">Unlike most other books, you cannot predict any event in Adams' trilogy with certainty. Adams managed to introduce a concept of Improbability in the book, by means of which, by far the most improbable events that can occur in the universe, occur at the most improbable moments, and this happens quite often too. This gives a whole new dimension to the book, making it highly unpredictable and hilarious too(some of those improbable events are bound to crack you up while some will make you wonder about the cause of occurrence of the event only to find that none exists).</span><br />
<span style="line-height: 18.234375px;"><br />
</span><span style="line-height: 18.234375px;">These books would fall in the fantasy comedy genre in my opinion, so if you like either fantasy or comedy, you definitely shouldn't miss out on them.</span><br />
<span style="line-height: 18.234375px;"><br />
</span><span style="line-height: 18.234375px;">There are a bunch of really crazy ideas/concepts pitched in these books, regarding towels, restaurants, cricket, flying, Earth, ultimate answer to life and so on. The list is truly endless. Oh and yes, you definitely do not want to miss out on meeting the robot, Marvin.</span></div>
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</span></div>
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<span style="line-height: 18.234375px;">If you do go ahead and take my advice on reading these books, forgive me if you do not like the third book. For some reason, it simply did no click with the world or with me. It did not have the same kinda charm that the other books did. At the time of writing this blog, I was halfway through the fourth book and recovering from the sudden downturn that the third book had taken.</span></div>
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<span style="line-height: 18.234375px;">There was a sixth book that was released by Eoin Coffer, named </span><span style="font-family: inherit;">And Another Thing...</span><span style="line-height: 18.234375px;">, based on what Adams was planning for the sixth book but couldn't write due to his untimely demise aged 49 due to a heart attack. He wanted to end the series on a high note of some kind, which was what Eoin Coffer tried to do. This book didn't really do so well and is not part of the Douglas Adams collection, hence left it out here. Although, it seems to have brought a fitting ending to the "trilogy". Considering that each of these books does not have more than 300 pages, you might as well give it a try, at least for the sake of completing the collection and experiencing the ending that Adams wanted for the series.</span></div>
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<span style="line-height: 18.234375px;"><b><span style="color: red;">Spoilers ahead! This is the end of the post for those who haven't read the books yet</span></b></span></div>
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<span style="line-height: 18.234375px;"><b><span style="color: #cc0000;"><br />
</span></b></span></div>
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<span style="line-height: 18.234375px;">For those of you who might have already read these books, this section would probably shed some more light on this inaccurately named "trilogy", although I doubt you wouldn't have done the research already :)</span></div>
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<span style="line-height: 18.234375px;">In the first book, Adams mentions that 42 is the ultimate answer to life. When asked about 42, Adams said that the number just struck him when he was staring out into his garden and he thought 42 sounded good. Typical of him I suppose :). In fact, Douglas Adams gave a whole new meaning to the number 42, almost redefined it. The following two articles should suffice, there is far too much material out there to read on this!</span></div>
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<span style="line-height: 18.234375px;"><a href="http://www.independent.co.uk/life-style/history/42-the-answer-to-life-the-universe-and-everything-2205734.html">Independent - 42, The Answer to Life, the Universe and Everything</a></span></div>
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<span style="line-height: 18.234375px;"><a href="http://www.guardian.co.uk/books/2011/feb/03/douglas-adams-42-hitchhiker">Guardian - 42, Douglas Adams</a></span></div>
Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-19251076649679408132013-03-11T06:46:00.002-07:002014-04-13T14:00:28.861-07:00Could corruption be good for the economy?<br />
I ain't really the type to worry about corruption and how it's plaguing the country. In my opinion, this is something the country is stuck with once it has caught it. It's all about mentality I guess, and in my opinion, ours promotes corruption. Besides, I stand with Gordon Gekko on this issue - Greed is Good.<br />
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As of now, I have identified two types of corruption(will update this post again if I find any more):<br />
<br />
<ol>
<li>The corruption committed by politicians</li>
<li>Corruption committed by some businessmen or the other citizens of the country.</li>
</ol>
<br />
Now, I know that you must be thinking that they are both the same, corruption is corruption, no matter who does it. But bear in mind that this is from the economic welfare point of view, forget about the moral point of view, there isn't one in this world(never was, except in fairy tales, mythology and religious scriptures).<br />
<br />
Corruption committed by -<br />
<br />
Politicians - The records so far show that the money looted by politicians is parked in Escrow accounts in banks, or used to purchase swank properties in other countries(there is even enough to purchase islands in fact) and other various unknown means by which money can be kept from the country of residence. In such a case, the money is no use to the country. It does not boost the economy, provides no boost to employment, education, people welfare etc. The rightful cause of that money is the development of the nation, be it the infrastructure, schools or colleges for education(God knows that this is required right now!), promoting entrepreneurship, investment in the economy(cause there never really is enough money) and the list is endless. Effectively, the nation's money is taken and used for development of some other country(the one where the money is parked).<br />
<br />
Most businessmen - Most businessmen are involved in corruption primarily due to their interests in the growth of their companies. Of course, their dealings sometimes do include the politicians but the end result is often positive(often, not always) for the economy. Let me explain. Contrary to what happened with politicians, the businessmen tend to bend law to further their company and its dominance in the market/economy. For example, obtaining money illegally to fund certain projects of the company(leads to economic welfare), evading tax and routing the money through a series of dummy companies overseas to invest it back in the same company for projects(again economic development) thereby converting black money to white money(not what politicians do) and keeping it in the economy, and so on. Of course there are others who declare inflated employee lists to obtain more payment on outsourced projects and then stash that money in personal accounts and they do fall in the previous category. But, in general, businessmen promote our economy through corruption.<br />
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Middle class people - This was probably the easiest one to deduce and which got me thinking about corruption. My friend recently tagged me in a post regarding corruption and there were a dozen comments on the post regarding corruption and why we take part in it and how wrong we are to do it and so on, the usual bickering. Based on what you have read so far, you probably already decided that the middle man couldn't possibly generate more jobs or even affect the economy by his little acts of corruption. Read ahead!<br />
Let me take a few scenarios and clarify, will be easier that way.<br />
Evade tax - Some companies allow for medical reimbursement for a certain amount of medical bills during the course of the year. Not everyone falls sick often or becomes terribly sick to generate bills worth that reimbursement amount. Enter counterfeiters. A bunch of receipts totalling the reimbursement amount for a measly payment of 2% of that amount, whereas tax is 10%. Equation - more money in your pocket, less money in swindling politician pockets. What happens if you pay the 10% tax is the government gets your money and spends it on nothing, that's right, nothing. It just goes towards pointless schemes set up to draw the tax revenues into their accounts or gets lost in the flow from one department to another. Instead, what if the money is with you then? You would either spend it or put it in the bank accounts. So how does that benefit the economy? If you spend it, the money goes to someone else(his income increases) and this keeps happening. As incomes increase, expenditure increases, economy grows. If you save it, stash it in your bank account, it is given off as loan to some customer of the bank or invested by the bank in the schemes it finances(which is great really). What I am trying to say is, you cheating the government reaps greater rewards than the government cheating you(if the government does cheat you).<br />
Bribe the traffic cop - This is simpler than the above one(I have to type lesser). Your fine amount again goes to an agency of the government. Instead, bribe the cop, make his day better and your ride easier. Solve the matter quicker too. The cherry on the cake is that you did the economy a favour too!<br />
<br />
But, as we all know, sometimes things are too good to be true. And the prospect of something corrupt being good falls in this category too. Sigh. There is a major downside to whatever reasoning has been provided above.<br />
When corruption prevails in the economy, the government tax revenues reduce and this increases the fiscal deficit. No economy would want a growing fiscal deficit and in order to contain this, the government proposes an increase in taxes. See where I am going with this? It becomes a cycle, we cheat, they charge more(unless of course they make stringent laws to prevent that cheating business to start with, but that won't benefit the politicians, now, would it).<br />
Besides, if everyone in the country starts evading taxes and fines, then there would be absolutely no money in the country for development of infrastructure.<br />
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It's so much fun to debate from both sides of a topic! Really enjoyed writing this post, looking at both sides of the coin. Gotta find another topic on which I can take up both sides of the issue(preferably in a more convincing manner than this one, corruption is good lost steam after corruption is bad spoke up).<br />
<br />
Disclaimer: The author does not promote, partake in or support corruption, corruption against government, evading taxes or any activities deemed illegal by any Government in the universe(or multiverse) that may be reading this or has read it. This is solely meant for intellectual purposes and the contents of this document cannot be used against the author in any judicial court of the universe(or multiverse).Anonymoushttp://www.blogger.com/profile/06341928134486914652noreply@blogger.com0tag:blogger.com,1999:blog-1068664584343317968.post-91198460953414649632013-03-03T11:36:00.000-08:002013-03-18T03:34:17.737-07:00Healthy = Wealthy = Wise<span style="font-family: inherit;">This post deals with getting yourself back in shape or maintaining your shape, whichever applies to you. So if you think you are in the wrong place, you are wrong and you might want to consider reading ahead before you judge the contents of this post.</span><br />
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<span style="font-family: inherit;"><br />
</span></div>
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<span style="font-family: inherit;">Becoming fit requires two things:</span></div>
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<span style="font-family: inherit;">1. Routine Exercise</span></div>
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<span style="font-family: inherit;">2. Appropriate food</span></div>
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<span style="font-family: inherit;">Now, I am a very skinny person, and I have been so for a very long time! I am like a constant of nature, regardless of how much(little) I eat, I don't gain(lose) weight at all. So, this exercise routine I followed was an attempt at changing that and trying to look a little bigger and better than I currently do. And it seems to be working so far, albeit slowly.</span></div>
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<span style="font-family: inherit;"><br />
</span></div>
<div>
<span style="font-family: inherit;">Now, there are two types of workouts:</span></div>
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<span style="font-family: inherit;">1. To reduce weight</span></div>
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<span style="font-family: inherit;">2. To gain weight</span></div>
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<span style="font-family: inherit;"><br />
</span></div>
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<span style="font-family: inherit;"><b>To reduce weight</b>, you MUST do cardio exercises. Follow a strict plan here and it will pay off. Sure, it will take time but the results will be astonishing and long lasting. Once you meet your target, you have to do the bare minimum to maintain that, no more and no less.</span></div>
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<span style="font-family: inherit;"><br />
</span></div>
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<span style="font-family: inherit;">The routine:</span></div>
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<span style="font-family: inherit;">If you are just starting out, I would suggest going for a 10 minute treadmill on no incline, at jogging speeds. The speed would vary from person to person. The idea here is to condition your body for the long haul. Follow this up with 10 minutes on a cross-trainer followed by 10 minutes on a bicycle. Do keep a track of your performance on a weekly basis, if not on a daily basis. Note the time that you have exercised for and at what speeds on each machine. After 2 weeks of this, increase the time to 12 minutes on each machine and change the activity on each machine such that you exercise at breakneck speed for 90 seconds and then jog for 30 seconds and do this for the time allotted for that machine. This will seem hard on the first go but this has got a tremendous effect. A month after this, increase the time by another 2 minutes on each machine. Further improvements to this would be increasing the time or increasing the ratio of time spent on the machine at breakneck speed to time spent on machine at jogging speed. I understand that it is not possible to increase the time indefinitely since time taken for these exercises would be too much. Once you hit this roadblock, change the regimen to include two out of the three machines on each day such that each machine is used the same number of times during the week. Once you have reached this stage, do take a day off during the week :)</span></div>
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<span style="font-family: inherit;">Once you meet your targets, 75% of your exercise routine as in the last stage that you followed.</span></div>
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Note that it would be a good idea to keep a track of your heart rate(most machines have it on the handles) at the end of the routine. Make sure it doesn't exceed the 180-190 range. That would be a cause for alarm and you should consult a doctor about this.</div>
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This also requires a strict diet control, hard as this may be for most of the readers here, it's a necessity. To tell you the truth though, it's quite simple. You just have to restrain yourself for a month, then you become habituated to the change. That first month is the toughest nut to crack and requires tremendous self control, but you wouldn't be reading this if you weren't ready for that already.</div>
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Alright, for the diet, cut down on the quantity. Bring it down to 75% of your current intake. I have to keep this as generic as I can since every person has a different consumption and different metabolism. All those health plans that tell you to eat such and such quantities in specific terms, well, I am stumped as to why they do not consider that everyone has a different metabolism. After a month of this, if you still need further reduction in weight, reduce it further by 75% and continue following this cycle till you achieve your targets. If after reducing it for the second time you find that you aren't feeling well, feeling dizzy too often, maybe you reduced your diet too soon and should wait a month more to make the transition. If this happens in your first change itself, then your water intake and sugar/salt intake are insufficient. When I say sugar, please increase on glucose intake and not the processed sugar from food items. For salt intake, use an ORS packet a day till you get better.</div>
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Water intake should double once you start exercising. You should sweat a lot during the exercise and this should be compensated for by the increased salt and water intake.</div>
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As far as reducing weight is concerned, cardio is the only method to achieve this. Even if you want to reduce the fat around specific parts of the body, cardio is the way to go. Anything else would just help build muscles, not reduce fat with the same efficiency that cardio does.</div>
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<b>To increase weight</b>, you will have to do weights and join a gym for this, unless you can afford all the equipment to set up one at your place(which would be really cool by the way). This is what I have followed and it seems to be having an effect, gradual and minimal, but it's there(glad about some change). Try to keep this as regular as possible and it will pay off. This is a time taking process too(at least for someone like me, for others whose body responds quickly to changes this might be highly effective). Once you achieve your target, then just do the bare minimum to maintain it(though I believe by this time you would be addicted to the workout and would want to continue with the usual routine).</div>
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The routine:</div>
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Stage 1</div>
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Exercise 4 days a week, 2 days for upper body(Monday and Thursday for me) and 2 days for lower body(Tuesday and Friday), rest on the other days. For the upper body, I did 1 exercise each for chest, shoulders, upper back, triceps, biceps and forearms. Each exercise of 3 sets and 8 reps. The weights are to be decided such that you can complete that exercise with 8 reps in not more than 3 sets. If you can do a 4th set, then you need to increase the weights. For the lower body, I did 1 exercise each for the calves(standing calf raise), front thighs and back thighs, followed by 8 minutes of running at 12kmph. 3 sets and 8 reps again and weight decision as above.</div>
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I try and do abs on a daily basis, since they are the hardest to exercise.</div>
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I am not mentioning exercises in particular because there is an abundance of websites out there explaining what exercises to do. You just have to pick up something you are comfortable with. Avoid anything that may injure your back or neck while doing weights. Consult a gym trainer if you are doubtful. I was having difficulty doing barbell curls initially so I moved to dumbbells for biceps. It's as per your convenience really, at this stage.</div>
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Stage 2</div>
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After about 3 months of this, your body is conditioned enough to move to muscle specific routine. Now, go for a 3 or 4 day workout. For 3 days, do chest, biceps and forearms on Monday, shoulders, back and triceps on Wednesday and legs on Friday. For 4 days, do the legs on Tuesday and Friday and move the Wednesday workout to Thursday.</div>
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For each of the muscle groups here, perform 4 sets of 8 reps each, and two exercises for each muscle, i.e. 2 for biceps(I do 3 here), 2 for chest etc. Again, minor tweaks must be done by you to make it more suitable to your needs. Multiple exercises per muscle is to exercise all the muscles of that group, all round growth of the muscle.</div>
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Note that there are two types of weight programs: power and stamina. Power program involves more weight and less reps and vice versa for stamina program. To counter the advantages and disadvantages of each, I went for the middle ground with 8 reps. Power goes for 4 to 6 reps while stamina goes for 10-12 reps. Power program is meant for a bulky frame with short burst of energy or strength. Stamina program is for lean muscle with extended disbursal of energy possible.</div>
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Stage 3 is something I haven't ventured into and hence will not be covering it here. It would be a routine for advanced users, not something I would ever cover. It would result in radical changes in the size and shape of the body too.</div>
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Now for the diet. Needless to say, protein intake would have to be increased, which would involve increasing water and fibre intake to counter the harmful effects of protein. If you can do this naturally, great! Nothing better than that. But if not possible, get some protein supplement for Whey protein from the market and consume 1 large scoop during stage 1 and 2 large scoops during stage 2. I mix this with glucose to keep energy level high. I have been using EAS whey protein for a while now and I can notice some differences. Keep fatty foods to a minimum, carbohydrates should be as usual. Maintain required levels of sugar and salt to prevent feeling dizzy or faint. Consume protein post workout and the next day, they will be repairing and rebuilding your muscles.</div>
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I think that about sums it up. I don't suppose I have missed anything here. Wish you all the best in getting fit and enjoy your workouts!</div>
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