Sunday, November 15, 2009


It is now a fact that unless Public distribution system is revamped and strong measures are taken to augment agriculture sector, as per the strong signals now received, a famine like situation may develop and devastate the country. Assam would not be an exception to this scene. Till now though two neighboring states of Assam, were experiencing famine in the past, there was no record for Assam experiencing such a bleak situation. The time has changed. Assam has now negative growth rate in agriculture sector. It might trigger famine like situation unless government steps in. The world Food Programme, facing a fund shortage and UN has for the first time appeal to individual persons for cash donation for the first time of its existence. The Head of UN Food Body felt if one billion persons of developed world donate just RS. 69/- a week or one euro($1.50) it would be enough to end world’s hunger and famine. So WFP has issued internet appeal to all individual to contribute. If any one want to contribute contact WFP’S Delhi office.

Addressing WORLD ECONOMIC FORUM’ in New Delhi recently, Mr. Pranab Mukherjee admitted:
"There is a need of generating strong domestic demand until the robust recovery all over the world, particularly in the developed world takes place.”
Mukherjee repeated his pledge for massive investments in agriculture sector and infrastructure, and acknowledged that it would not be easy for Asia's third largest economy to compensate for the loss in exports through domestic demand. "It is not easy for us to diversify the market overnight and make up the loss so we shall have to wait for some time," he said.
The Food and Agriculture Organization (FAO) of United Nations has recently issued a report which reveals that currently there are 75 million (7.5 crore) people in the world are victim of famine and if the current crisis of price rise persists this count may reach the total of 920.25 million (92.25 crore )
India at present is facing the very harsh situations where poorest of the poor of our country have to go to bed hungry. But at this crucial time when the country expects some stringent steps from the government’s side, it is defending itself by saying that food crisis is a global problem. It is not interested in finding and disclosing the root cause of this havoc .
In such a situation it is a heartening to note the definite actions taken by Government of Assam to regulate farm products in the state.. In the time of scarcity it is not only production but supply system needs to be strengthened. THE SATE GOVERNMENT AT LEAST MADE SOME EFFORT to boost consumption, eliminating middle men from the market.
Indian government is of course desperate to stave off spiraling food price inflation atleast during this winter season.
Mr. Mukherjee during the meeting of world economic forum assured that none should be worried about the availability of food grains for the government would continue to import food items to meet any supply shortfall and scarcity food.
ASSAM GOVERNAMEN MUST ENSURE THAT PRICE of THREE THINGS must NOT HIT THE ROOF. It must endeavor to contain the price of rice, vegetable and fish. The fish lobby, in Assam, is very strong. THE GOVERNMENT MUST BREAK THE NEXUS BETWEEN SUPPLIERS – MIDDLEMEN AND RETAILERS. UNLESS MIDDLEMEN ARE CONTAINED NO USEFUL PURPOSE WOULD BE SERVED only BY FIXING UP THE RETAIL PRICE .Assam’s population survived famine like situation in the past mainly due to frugal food habits and due to non dependence on outside supplies. With the increase in population food habits have changed and dependence on outside supplies have increased. The government must strengthen public distribution system, crack nexus of middlemen in fish supplies and develop storage space for sufficient food grains and help small growers to produce green vegetables, rice and fish. THE ARRANGEMENT CAN Be MADE TO BRING IN FISH FROM Andhra government’s fishery department and distribute to retailers at pre determined price and also distribute through area wise Kiosk of Assam’s fishery department.
In spite of rising inflation and panic regarding food availability our government still believes that to sustain in world economy we need investment and support of corporate companies. The Economic Advisory Council to the Prime Minister advocates the role of corporate sector in agriculture and says that activities other than food grain production like commercial crops, horticulture etc. have contributed most to agricultural GDP. The council recommends removal of subsidies related to grain procurement and REVAMPING of Public Distribution System.
“The Unprecedented food scarcity is beginning to dictate the rules of a new political order where individual countries are scrambling to secure their own food supplies with little concern for the rest of the world, “says the founder of the Earth Policy Institute, LESTER Brown.

"We are in the midst of the most severe food crisis in the world’s history," Brown said. "This is not your mother’s food shortage... but a chronically tight food situation, a serious and long-term problem.’’
From Africa to Asia, countries are scrambling to buy or lease land overseas to grow crops and feed their people. China, which has to feed the world’s largest population, has taken the lead by contracting land in Tanzania, Laos, Kazakhstan, Brazil and others.

India has set its eyes on Uruguay and Paraguay, while South Korea is looking for farming deals in Sudan and Siberia. Libya and Egypt for their part have been negotiating deals to lease land in Ukraine.

The worry here, according to Brown, is that "the more influential countries would be able to secure food supplies, leaving a number of low-income, less influential countries with no food to import".

Friday, November 13, 2009



Perhaps every citizens by now know that in the recent budget a provision has been incorporated that any persons having invested money in fixed deposit would require to quote the pan number. This provision will be applicable to all persons irrespective of the fact that he or she is not even income tax payers. The banks ar being advised to deduct money if no pan numbers are quoted even by non income tax payers from April next. In case wrong mentionning of Pan card number by depositors there would be 20% deduction of tax, as a penalty.

Till recently Pan card was a necessity for the income tax payers who submit income tax returns annually. now a days pan card is necessary for buying a car, or owning a cell phone number. Now pan card would be necssary for Fix Deposit in Bank even if he not a tax payer.

A few years ago pan card was also necessary whosoever makes foreign travel. Even for those people it was necessary to submit IT returns even if he was non income tax payers.( It was necessary for such person to submit nil return). While submitting nil return he had to quote his pan number. This provision has been abolished a few years back. Now Pan card is required for any kind of financial transaction..

The matter of obtaining a pan card for individual has gained importance now because from now onward for even if a person's total income is less than taxable income and he keeps money in bank's fixed deposit he would be required to have Pan card. This is going to be the law from next April. I would there fore like to recommend all persons having fixed deposit in bank or in Government or non Government organisation to apply for PAN number for his own benefit. What is a PAN CARD ?
I will try to answer like a lay man. The PAN is the abbreviation of Permanent Account Number . Actually this is a unique number allotted to individual or a corporate entity by department of income tax, Government of India. It is more an identification number . The PAN card is a plastic coated/laminated card containing an alphanumeric number, mentioning name, father's name, date of birth, the signature, person's photo and, of course, the PAN number and logo of government. of India and dept. of IT. By default , a PAN number has five letters first, then four digits and then one letter again. The uses of Pan card was for mainly following reasons.

1 Till now, it is mandatory to have one and only one fore every Indian who's income exceeds tax free limit. ( this provision is being changed from next April)
2. It serves as an photo-identity card as an Indian citizen .

With the new change in law pan number become necessary for everyone who has FD account in Bank including a widow who may earn an income of below Rs one lakh ninety thousand.. The threshold limit for payment of income tax for all categories of persons have recently been upwardly revised and most of the retired senior citizen and some of the ladies have become out of income tax net. From next April a widow earning below the threshold limit ,even if she has submitted the form 15 , income tax would be deducted by bank for her fixed saving in bak, in case Pan number is not submitted. In certain case if pan numbers are wrongly quoted, may be due to inadvertence, then tax will be deducted at the double the rate. This is where shoe would pinch for a widow or a lone lady or for a senior citizen. The persons having bank FD etc must be very vigilant if they want to avoid unnecessary deduction of tax and penalty from now onward.

Even this provision would be applicable to ordinary common salary earners also unless he submits pan card number. Many senior citizen never is to apply for pan card thinking that they were beyond the ambit of income tax hence no pan card was required. This was a valid argument till now. But from next April onward if pan card number is not submitted to the Bank or any other other authorities income tax would be deducted on payment of interest.

My humble suggestion is not to panic . There are ample time to apply fopr a pan card. In any case the provision would be applicable from next April only. We have one years time to get organised for a pan number. Having a pan card is very useful and easy. It can be used as a photo identity card also beside using for all financial transaction. This number is actually isued by income tax department to track any financial transaction and also to ensure non evasion of tax by eligible citizen. The pan card is very useful for all the citizens, for our country donot have a Social security number like devlop countries of the world.. The importance of PAN card would continue till unique Identification number is issued by the central Government to each citizen. The project has already been taken up recently. A few persons recently wrote to me asking as to how and where PAN card could be applied?

The Income tax Department has authorised UTI investors services Limited to manage and issue pan card for smooth issuance of the card.. It can be applied on line also through internet ascility for the application form. There is a specific application form and that should be filled up to enable UTI Invetors Services Limted to issue PAN number with phoogtraph. A small fee is also charged for the fascility. The pan card can be issued to NRI also.

There are enough time now and all perons having income out of bank fixed deposit, company fixed deposit and having fixed deposit from any other governmental and non govrnmental organsation should apply for PAN number though they might not be income tax payers. In case they donot take PAN Card and donot submit on time the authorities would deduct income tax at the rate of 10% to 20% at the time of payment of interest in due course. Hence it is recommended that steps should be taken up by all concerned not only to apply and obtain the Pan number but to submit the same to the authrities concerned at the earliest.



The lots of mail were received , during the month, from our readers asking for the best time to teach their wards the value of money. Some of the young parents mentioned that in their family the discussions on family silvers, wealth and money earned by parent were never discussed. In fact it was considered as bad manners if children tries to take part in money matters of the family. Children were expected to study and play and parent always need to fend for them. But the perception has changed in twenty first century. It is now required that children should know the value of money early in Life. Now the question arises how early children should start hands on training on money management?

It is now felt that children should have hands on experience of handling money from early age. But why? It is because the req an> an>uirment of money has multiplied. The life style of people have undergone tremeddous change. The life on earth have beccome competitive. This competitivnes have increased the necessity of money. Thee earning have not multiplied. But expenses have gone up tremedously. In sam mariage of a daughteer was not veery expensive affairs. Today it has changed . In fifties of tweentyeth century birth of the clebration ws completed with offering to God and feeding "para manna" to all his neighbour friends of the birthday boy. Today birth day is big affairs and cost enormously. the expectation of children have gone up. If children are allowed to have hand son experience of handling money they would at least get an opportunity to learn of the value of money. So at what time the concept of money should be introduced to the life of children?

This is not a easy question. Different societies have different approach to money. Children are allowed to handle money from the early childhoodd in Rajasthan, MP andd Up but in south India and in Northeast India children handles money after going to college only. However many citizens have been forced to talk openly now to their children as the money has become dearer due to price rise, non availability of cash flow duee to recession, pay cuts and job loss. According to a reecent survey by T. Rowe Price Group, nearly hlaf of the parents of school going children have used the recession as the catalyst to talk about money to their children.

The question when children should be allowed to handle money. The answer is as soon as the children start exploring outside world. According to an expert on child psychology children should be introduced to money matters as soon as he develops his want for any product or object like toy, chocolate, book, etc. What could be age ? The children start his demand when he becomes four years of age. This is would be the right age to introduce him to money. Till this age children feels that whatever he desires would come from anywhere. He develops a desire and that would be fulfilled. How it gets fulfilled is not his
outlook. This is the time a healthy outlook needs to be developed in child, as per expert on the child psychology.

Indian parents are much hesitant to talk about money to their children .Parents feel like sex education money education should start at school .This is inherent hesitation of indian parents.According Laura Levline, an expert on Finaical literacy said "parent feel they are not qualified.But kinds learn most of their money lessons from their parents best. you just need to talk about it ."
Really it is not hard, expert agree, if you take step by step. The best way to introduce the concept of money managmeent is to give children some money to manage,said Janet Bodnar, author of world famous book "Raising Money Smart Kids". What is the advise of Bodnar?

Bodnar suggests setting a weekly allownace that equates to half the age of children at the rate of Rs 2/- for a four year old and Rs 5/- when a child hits 10 th year. According to me, for Indian parents there need not be any particular formula to be followed on the amount. Parent can simply shift some money that they were spending on him monthly for his toys and snacks and story books etc.- and allow them to decide how to spend it. The most important thing is for the children to see that manging money is all about making choices. If you buy one thing costly you would not have money to buy another. It is like teaching children about healthy eating.You donot force children to taste from food pyramid- arather you cook for them to experience it. Likewise parents need to make money experiences a part of their childrens living. Perhaps this would help children to realise the value of saving . Of course guardian has to be strict in allotment of amount to be paid .

N.R. Srinivasan, an astute acountant started giving his teen aged son Rs10/- a day and asked him to divide this allowance into three parts at the rate of Rs 3/- each for his T shirts,,CDs, Tiffins and balance one rupeee for daily saving for buying whatever he wants like an extra pair of shoes or shocks or a cap etc. The formula developed in him a sense of saving and developed respect for money value . In later years his son became an investmeent expert when he grew up after completing his MBA.

His friend Bibek Talukdar gave his young son Paban whatever he wanted. He even purchased a shoe costing Rs four thousand on demand, whereas he himself was wearing a shoe costing Rs 800 only. He never taught the valuee of money to his son. When his son , Paban was in the last year of the college he demanded from his father a Motor Cycle which was refused. He told his father if he was unable to meet his demand why did he gave birth to him. He threatned to commit suicide for loss of prestige in front of his classmates. .Ultimately father had to agree. Later years, his son became a vagabond. According to expert, it is the parents who can incuclaate the best money value in children's mind by his deed or by example.

In case parents do want their children to become money savvy then start their life with a simple piggy bank . This would develop the concept of "Spend, save and share" early in life.This concept should be started with the kids because most of them otherwise keep on harping and whining " give me , give me and give me" while visiting stores and exhibiton etc.

As the children reach adulescent they should be introduced to banking procedure and asoon as theeir pass out of the high school they need to be introduce to credit card system.The most of our boys after passing go to college other than at their own home town. This habit of credit card/Debit card would help them to mangement their fiance while in hostel. Parents can deposit money in his acccount in home town and he can take out money in the town where his college is situated in south India. or else where.

According to me,parents need to explain their teenaged children that money is a tool that provides both enjoyment and security when used wisely. Srinivasan oncce told mee that his grandfather grew up poor and was never able enjoy his money. He grew up affluent and lacked awareness of the cost and value of money in young age.He wants his son Hari to have respect for money but not love it too much nor fear it too much. A healthy attitude towards money would make his son a balanced human being-that is what is needed in life, he added.

All parents must remember the words of Einstein that the mystery of compounding of money is far more complex to him than the complexity of the laws of universe. Ask your four year old child to save Rs five per day in bank and ask him to count the sum when he is sixty years old. It would be difficult for him to count the number of zeros then.The recession is the best time for you to introduce the money management concept to your child for only then you can feel the real pinch and power of money.




Tremendous research is going on in western countries for development solar energy as a corollary to electrical power generation in universities. The cities where further power generation is not possible solar power would substitute for conventional power usage ! The demand for power have multiplied in some of the states. But in case immediate generation is not possible dependence on alternative energy sources have become imperative. The educational and Research Institutes and Industrial Houses have collaborated to find out the solution. Can similar exercise be taken up in Assam.?

Habib-Ur Rahman Baruah, have been in America for last four decade working as a Professional Engineer. For the first time he mentioned to me, in a recent discussion, that America is at present in need of vast energy resources and research is going on how to generate electricity out of non conventional energy utilisation. One most important identified areas has been the Solar energy beside, Sea energy and Wind energy. The demand for electrical engineers in USA have become so high, despite recession, that almost all the retired Electrical engineers have been summoned back to join jobs in this sphere. Baruah, himself a retired electrical engineer, of seventy two years has joined back job in power generation. He said that shortage of electricity has initiated lot of research in the field of energy. The experienced electrical engineers may seek opportunity in America who have experience of power generation.The next decade will be the age of energy as was IT few years before, according to him. Another energy project based on sea waves have been initiated by a well known Assamese scientist based in Canada. Recently, Biswadeep Baruah , has joined as CEO of an iit cell for development of new project. Can he take some initiative on this kind of project now ?

I myself saw an experimental project in Los Angeles area where air conditioning plants are operating from the solar energy. This is an experimental project only and further development in the area is expected to make it cost effective. The project engineer with whom I talked expected that when successful the project would bringing down air conditioning cost by 60% from the conventional electricity mode. This is eased the power requirements for lighting and irrigation etc.
"When we tell people we heat water up only to cool it down, they don't get it at first," said David Berokoff, a technology development manager at So Cal Gas. "But all this technology has been around for a while. We're just trying to bring it together so we can get it out to our customers as soon as possible."

The initiative is the latest in a move by SoCal Gas and its parent, Sempra Energy, to wean businesses off gas and push them to use more solar power. For businesses, the technologies could mean substantial savings.

Beyond the potential environmental benefits -- the sun is a nonpolluting, renewable source of energy -- the solar systems undergoing tests could help businesses slash air conditioning costs as much as 60%,we were told.

It was understood that the research project is only 4 months old and solar-powered cooling probably won't reach the gas company's customers for another year or two, but the gas company is already wooing businesses to the rooftop of its Downey research facility.

The Coca-Cola Bottling Co. of Southern California, is observing the tests to see whether such technologies would make sense for several of its bottling plants. "It's a very long-term view, but it's the right view to have." This is where the matter attracted my attention. In the research project both education and business have gone hand in hand. Can this hand holding initiative be started in Guwahati between IIT, Guwahati and AIDC or IOC or Oil India?

The industries in Assam also needs lot of air-conditioning. These can be developed as unit wise smaller projects where air-conditioning are required. Even the entire Capital complex of government of Assam including the residences of ministers, secretaries and officials can be air conditioned if IIT, guawhati can develop a projnect like this .Initial research cost of the project need to be shared between the IIT ,government and OIL.IIT can support with brain and human resources and rest would expected to fund the research.

The gas based research company, in USA , has been checking out competing solar-thermal cooling technologies from two companies to see which would work best on the roofs of warehouses, manufacturing plants and other commercial buildings. Presently no residential building have been included in the plan. But it would extend to Housing estate later.

I also read in an article in LA Times later where it was stated that the rooftop prototype systems, which include the mirrors, pipes and computer-automated solar trackers, cost about $200,000 each -- about the same cost as the entire traditional air conditioning system installed in the 45,000-square-foot Downey building, The researcher hope to slash that price by at least half before it reaches commercial customers.

The research project is comparing systems developed by Sopogy Inc., based in Honolulu, and HelioDynamics of Britain. Both use mirrors to aim the sun's rays at water pipes, and when sun isn't available to heat the water -- at night, for example -- both rely on gas as a backup.The differences lie in the shape and size of the mirrors used and in the placement of the water pipes.

Sopogy uses several 12-foot mirrors that curve upward, reflecting sunshine onto a pipe running just above the center of each mirror. HelioDynamics uses slabs of small, flat mirrors that reflect the sun's rays onto a single pipe above them.

Both systems use computer-automated trackers to tilt the mirrors throughout the day as the sun moves across the sky.

The hot water in both systems is heated to temperatures just under 200 degrees and collected in a storage tank. Then it goes through an absorption chiller that cools the cold water used in the building's fan units.

The solar systems can work alongside existing gas and electric system .Non-solar systems use gas or electricity to heat the hot water before it goes through the chiller.

Nathan Olivarezgiles of LAtimes praised the effort of researchers and stated that
people want renewable sources of energy, but people don't expect a switch that just happens overnight. By using gas or electricity as a backup, customers not having to replace their infrastructure, and customers know they won't have to get into something experimental."

"The promoter gas company is giving researchers a stage to demonstrate what they can do for their customers". Can Similar arrangements be made between Oil India and IIT , guwahati. In case such collaboration succeed it will change the face of Assam. Power is really short in Assam. If solar energy can take care of air conditioning of industry and large industrial estate at much reduced cost then there would be substantial availability of power for common people of Assam.. It helps Government and society tremendously. IIT, guwahati's research has already resulted in low cost cycle rickshaw beside other projects. This energy research project can be given a head start through the good office's of Minister of Industry by organizing a meeting of chairmen of OIL, AIDC and Director of IIT to give concrete shape to such a public -private research project which can give benefit to industry, Government and to society as a whole.



The Deputy Chairman of the planning commission DR. ALHUWALIA once declared that Indian Economic growth would be 6.8% and more during this fiscal.. We refused to agree to the above figure in this column. NOW CHAIRMAN OF THE Prime MINISTER’S ECONOMIC ADVISORY COUNCIL announced ,for the first time on last Monday, that country may expect growth of 6.5% ONLY. This was exactly the figure we predicted as early as JUNE. According to IMF and world bank growth rate should be 5%. The Finance minister Pranab Mukherjee felt that the economic growth would be around 8% and maybe little higher. In our column we disputed such a notion and reiterated that the economic growth of the country would come through social development and agriculture reform. However, he has realised the fact now that only agriculture could be the saviour. only a few days back Mr. Mukherjee advised '"the banks should now enhance credit to employment generating sectors especially to agriculture and micro enterprise" He now realised that to boost economic growth larger farm credit would be essential.. Man Mohan Singh’s government has given definite stress on the agriculture sector but in state like Assam credit is not taken by agriculturist, as they are afraid of stringent repayment terms. In north east micro credit have become successful for the positive role played by Nedfi. This sector coupled with industrial sector may bring about the required growth initially to 6.5% . The agriculture can play a major role in the overall growth of the economy. We still subscribe to this view. IT IS TO BE NOTED THAT IMF AND WORLD BANK FELT India 's growtt during the year would around five percent during this fiscal. but according to us it would be excess of 65 if not 6.5 %.

Why Government of India ’s main policy makers had revised the growth rate now? This is because the contribution of agriculture sector has gone down due to scanty influence of Monsoon. The contribution from agriculture would be negative. it would be less tan -2%. THE INFLATION IS ON RISE DESPITE MORE THAN EXPECTED CONTRIBUTION OF MANUFACTURING SECTOR.The WPI inched to 1.21 percent for the week ended Oct 10, highest since May 30. . The strong build-up has been observed in the category of primary articles. Food articles have shown 14.13 percent inflation during the period.

With the kharif crop coming to the market, food prices will start cooling off. But ‘the impact may not be much significant to offset the increasing prices, the rising commodity prices are a matter of concern for the economy now. We are much more concerned of the supply side. Unless supply side improves, the inflation would not be contained.

The RBI admitted that managing the trade off between the growth and inflation posed a complex policy challenge to it. The extensive financil inclusion in rural areas are much more important compared to urban areas. The development of primary sector noe would automatically improve purchasing power of large community which in turn would develop urban base as was done in punjab.The prices of aluminum have increased almost 23 percent, while sugar prices have gone up nearly 90 percent in the last three months. Crude prices surged nearly 10 percent and the prices of copper have also skyrocketed about 111 percent, the industry lobby said. Though inflation is expected to rise, according to us, the Reserve Bank of India should not 'unwind its easy money policy in a hurry'. rise in interest rates and crowding out of private investments,' we feel.

UNDER THE CICUMSTANCES AGRICULTURE MAY BE THE ONLY SAVIOUR in the long run. The environment must be created so that consumption need to improve. The consumption would improve provided purchasing power of mass could created. So we need to be innovative. availability of finance wouldn't be the only solution. Bank must see that agriculturist and land lords don't hesitate to accept farm credit. The mental block of people of Assam needs to be addressed. In such a bleak situation why not give a chance to private sector to get involve in agriculture sector as a joint partner to land lords on profit sharing basis. Assam must uplift the ban on farming by corporate sector in production of rice and sunflower oil.. It would create employment for Agriculture graduates & other graduates. India’s economic recovery would come through the villages.

.Now, government should encourage joint sector farming, providing power and irrigational facilities to the farmers. The easy financial access alone would not help unless backed by infrastructure. The involvement of would generate employment for educated class.

The developed nations are using laser technology instead of tractors to till the lands. This helps in optimizing the use of various inputs such as water, seeds, fertilizers, etc. The problem is that Indian farmers cannot afford this technology and unless government and corporate sectors comes in support for agricultural infrastructure. The development of agriculture would remain a dream only ,if involvement of corporate sector is denied as a joint sector partners of landless laborer and that of land lords.



I am writing on investment after a long gap. This is because the share market has been very volatile and up for some time. Any new investor investing in such a market could have burnt their fingers. Many of our readers have been writing to us enquiring whether they should invest now or not. The share market sensex has come down from almost 17,800 to 15,450 on November 3rd. THERE IS A STRONG POSSIBILITY OF MARKET FURTHER GOING DOWN . However it my slide back upward also temporarily. The present trend is apparently bearish. But none can forecast market trend with certainty.

Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for atleast four years. The investors who would be in need of money within one or two years they are advised to stay away from share market investment. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from IMF. However, gold should not form more than 20% of the total portfolio of any person. THE GOLD ETF can be bought by senior citizen if the have holding capacity. The Gold investment might give a decent return within three to four years time.

Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for future. So pattern of investment would be different for different persons. If a person has built up his own home already and doe snot have mortgage to pay bank he or she can take risk more than a person who has yet to clear his hose loan. THE AGE OF PERSON ALSO WOULD DETERMIND THE INVESTMENT PATTERN. I don’t advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this the time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under ‘ systematic Investment Plan’ (SIP) . This is a good time to invest for market has come down substantially from high of 17,000 of September. Many investments GURU believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviors. MY RECOMMENDATION WOULD BE TO INVEST Now under SIP atleast for two three years and hold the investment atleast for three to four years.

A few senior citizens have asked whether they should desist from entering share market at all. MY VIEWS ARE CLEAR THAT SENIOR CITZEN CAN ENTER THE MARKET PROVIDED THE HAVE EXPERIECE OF MARKET FLUCTUATION AND HAVE HIGH RISK TAKIG CAPACITY. SENIOR CITIZEN SHOULD ENTER INTO GOVERNMENT OF INDIA’S SENIOR CITIZEN SAVIBG SCHEME (SCSS) WHERE even now returns are 9%. The maximum limit of investment is 15lakh. The interest of BANK FIXED DEPOSIT, FOR THREE TO FIVE YEARS PERIOD, IS AROUND 7.25% TO 7.50% ONLY. At present not only equity is doing badly but debt and income funds are also not doing well. SO it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning. The Senior citizen can subscribe balance funds also.

Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue number of times. Yet I would explain my views once again as lot of persons are asking the question. Please do not enter share market just because your neighbour have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? The most people do not have patience to study and to follow up the turn and twist of market. IF you do not have expertises avoid share market and go through the route of mutual funds first. When you get experienced in mutual fund you can get into share market after studying market behaviors from reputed news papers, financial journals etc or through your financial advisors. One thing is sure if you have patience and capacity withstands risk this is the time TO enter market through SIP. A TIME WILL PERHAPS COME, AFTER FOUR YEARS OR SO, WHEN YOU WOULD BE ABLE TO CONGRATLATE YOURSELF FOR TAKIG THE RIGHT DECISION NOW.