Thursday, September 27, 2012


There are times when one comes across a financial services agent, an insurance agent or one needs to calculate figures out of curiosity.

You might have faced a situation when you are promised a (X %) rate of interest on your investments and double the funds in (Y) number of years?

Is it true or a bluff? To verify, isn't rocket Science, it's harder. You will have to battle excel sheets to know the real answer. Or, look for a financial calculator and first figure out how on Earth it works, and which mode you should choose - begin or end. Of course, you could log-on to the net on your mobile and try to punch in the details on an online calculator website
Instead, you could do all of the above mentioned things or simply use the magic number 72.

Years: If you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money. For instance, if the rate of interest is 9%, simply divide the number 72 by 9 and the answer is eight. This (Eight) is the number of years it will take to double your money if you invest it at 9% rate of interest.

Interest: This rule works in reverse order as well. Let’s say, you know the number of years you want to double your money in and want to know the minimum rate of interest which you need to achieve that goal. So let's say, you have Rs 2.5 lakh today and need to fund your son’s college education with Rs 5 lakh in five years. Just divide the number 72 by 5 and the answer is 14.41%. This shows that you will need to invest your money in an instrument where you earn at least 14.4% as rate of interest, if you want to double the funds in five years.

Inflation: This rule also helps you understand a thing or two about inflation. It helps you calculate the amount of time it will take for inflation to make the real value of money half. So, let’s say that the average inflation is 7%.When you divide 72 by 7, the answer is 10.28. If you have Rs 1 lakh in your kitty today, it would take around 10.28 year for the value of the money to be halved.

Keep in mind, that this is a rule of thumb and can be used to get a rough results on money related calculations.

Please use your discretion while investing rather than following this blindly.


This was sent to me by my banker cousin.

Tuesday, September 11, 2012


India is having problems internally and to make it worse, political forces—internally and externally-- are taking advantage of our disturbed internal situation. Politically, we are going through a bad patch. Worst was what happened in Assam which is on boiling point. The way we are (mis)handling Assam, it just might be next J&K .Between 1971 and 1991, Muslim population has increased by 77.42% bringing it to 29.30% while Hindu population has declined to 14.95%.

.India has 15,106 KM of border with 7 countries. The longest one is 4099 KM with Bangladesh.

India has a poor historical record of border management. The so called “Seculars” might nullify this argument quoting entry of terrorists 26/11 via sea route. We have the longest border with Bangladesh which is porous; our border with Nepal is porous, Rohingyas from Myanmar have been crossing over to Hyderabad. Entire border management needs a serious relook and a definite policy backed by diplomatic push. India cannot continue policy of minority appeasement at the cost of national interest. IMDT judgment of SC is a slap on the face of policy makers and politicians.Recently, Former Assam CM P.Mahanta said: "India never took up (infiltration) issue with Bangladesh... Assam is not a dustbin"

It is natural for interested parties to take political advantage of a weak centre. Mr Owaisi, a lone MIM MP from Hyderabad, on first day of this monsoon session of parliament said about Bangladeshis ....I warn the Central Govt; I warn the Hon members over here (interruptions) if proper rehabilitation does not take place, you be ready for a third wave of radicalisation amongst Muslim youth(interruptions)

Neither Congress nor BJP has reacted is astonishing, since it does concern national security . Owaisi and congress, both, seem to be securing their respective vote banks.

At what cost? At what risk?

Interestingly, around that time, said, Radio Australia, In India, non-Muslims were receiving text messages from Muslims saying they "would be attacked, after, Ramadan”. What happened in Mumbai in Azaad Maiden, after Assam, by the Raza Academy was not a coincidence. Hoisting of Pakistani flag was not a coincidence. External forces have been up to their dirty tricks.

Corrective measures must be taken before it gets too late .Let Assam not become another Kashmir.

Porous borders might help “seculars” import “votes”, but, country’s security is being compromised.

While Owaisi spoke, while Azaad maiden happened, while Assam was burning, while they hoisted Pakistan genuine question one would ask....Why were Indian intelligence agencies like IB and RAW caught napping?

When will these politicians raise their voice against illegal Bangladeshis infiltrators.

Will they?