WELCOME TO MY BLOG- IT'S YOUR SPACE

PLEASES FEEL FREE TO READ AND LET ME KNOW HOW YOU FEEL ABOUT A PARTICULAR THING OR IDEA. BOUQUETS AND BRICKBATS ARE WELCOME

Monday, February 6, 2017

WARNING!!! Earthquake- Build The Right Home

Whenever we start earning, our first instinct is to buy a land or house for ourselves. Of course some like to simply splurge on- but that is not what we are discussing here. For the last few years I am seeing the rush to buy apartments in the Doon Valley. The only criterion that is followed is to have a good view of Mussourie, all other parameters are simply ignored or dwarfed. No one is interested in finding out how the sewage will be taken care of or from where will the water come in next 3 years.
The builders are simply finding  small areas anywhere in the nooks and corners, behind and below each and every small hillock. They have even encroached the River bed and built seven floors on stilts.
As you may be well aware that Dehradun lies along the most seismically sensitive area- and as I have learnt from few Geologists, that thee Rispana lies along a fault line, especially near the northern part of the Doon valley .
The kind of earthquake that we witnessed last night on 6th Feb2017 night is exactly what is waiting to happen. There are no calculations for the past earthquakes proffered yet, so obviously all these so called multi-storied apartments are also built without taking any calculations into account.
I am not discouraging the reader from buying a home for himself , it is a must and you must buy it if it is a must.However do not ignore even one aspect of safety- since more than your money- your and your family's life depends on it.
In 1993 , I had myself bought a home (not an apartment) and I could not actually check the architectural strength of it because the owner had disguised it very nicely. Soon after purchase one of the walls started sinking and developed cracks. In those days I employed all the engineering skills I had learnt on board and inserted 7 RCC pillars without breaking the terrace slab.
In the process I learnt much about the topography of Dehradun.
More than my engineering skills , the reader must take my financial advice and build a structurally resilient home for himself- the old fashioned way. Buy the land- then build. None of the apartments are cheaper than a house that you would build for yourself.
Think in terms of using alternative materials, including imported wood, prefab elements.Line up the roof with Solar PV cells, Follow the engineer from Chennai  - whom I had featured on my FB page- and build a completely self sustaining home for yourself.
http://asc-india.org/seismi/seis-uttaranchal.htm

Sunday, February 5, 2017

ALERT!!! CRITICAL TIMES AHEAD

ALERT!!! CRITICAL TIMES AHEAD.

Normally such warnings of doomsday are a plenty on the net.

But my warning is clearly related to the Finance field.
As the Sensex and Nifty are galloping away into the sun- there is a sense of unabashed optimism everywhere.
MFs have overtaken Insurance as investors in the market and people are headed towards MFs in throngs.
Whenever there is such optimism, there is a reason to pause and look around.I do not mean in the pessimistic way- but just caution.Most of the calamities and disasters have taken place when people were not watching enough.
So now as the market seem to be only headed in one direction I have some advice for different set of people, especially the seafarers- because it is them that I understand better.
1. Those who are young: They must NOT make any bulk purchases and must continue their regular purchases via the SIP or better still STP route. In a volatile market higher frequency of STP gives better results. So you can even switch from weekly mode to Daily mode if it is offered by your MF. i.e. if you have a 5000/- per week STP, you may change it to Rs.1000/- per day.If on monthly mode then you may go in for weekly mode. Since SIPs are offered on monthly basis- it may put you in some inconvenience to start 5 SIPs for every fund.

2. Those who are in the middle age group and about 10 years away from retirement- should review the funds in their portfolio and make a switch if required. Do not be misguided by which fund gave best returns last year or last 2 years. Go by a performance of at least 5 years. Further they should maintain the Equity to debt ratio of 75:25 or 80:20. If due to market going up the portfolio becomes heavy on Equity- then switch to the debt schemes and bring the ratio back.

3. Those who are near retirement should maintain a more conservative ratio of Eq:Debt of 60:40 but should not go below that otherwise their portfolio value may start eroding.
4. So remember to AVOID BULK PURCHASE or BULK investment even if you have a windfall or a have come across lately into large money. At such high levels even a drop of 2% in the indexes may not exactly give you value buying. So just stick to disciplined investing- it has shown to work best.