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Made in Madurai                

Friday, July 25, 2008

Financial Aims ad Milestones

Here are the fund aims, anybody needs to have

Loan Pay Off Debt Fund
Emergency Fund
Corporate Building Fund
Dream House Fund
Children College Education Fund
Children Marriage Fund
Couple(Husband and Wife) Retirement Fund


Case Study: Financial Portfolio

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As you know, in the recent past, I posted about an ideal portfolio for a 25 to 38 age group person.

Ideal Portfolio:

50% Assets
30% Aggressive Investments
10% Consevative Savings
5% Commodities
5% Savings for Emergency

Insurance is not part of the ideal portfolio. However, insurance is mandatory for a person who has dependants.

Case Study:

I was evaluating my friend 's portfolio and here is what he has, as of today - Name: Suraj(changed for privacy).

Suraj's Asset Allocation:

55% real estate
36% insurance
8% liquid
6% Automobiles
2% commodities

Improvement points for Suraj's portfolio:

His problem is - He does not have emergency funds and he always falls back on credit cards, which is not healthy in terms of personal finance.

An ideal portfolio says a person with dependant should have 10 times his annual gross income. Suraj has way too much insurance coverage for his salary.

Equity in the portfolio is completely missing. One of the best ways to fight inflation in long-term is to have equity items added to the portfolio.

One more improvement Suraj has to do is to increase emergency fund. Emergency fund is supposed to be 3 to 6 months - monthly expenses for the family.


Quick Personal Finance Tip

A Quick Personal Finance Tip

It is better to be debt-free, rather to be with loans at your hand to pay off.
Never take a loan for a depreciating asset, except for your house or first car, when you can really afford.


Madurai Money: Money Buckets for Personal Finance Management

There are various money buckets we need to keep the money, when it comes to money management. Here are the buckets, I could think of.

Income Bucket - is where all the income comes in. This would be the starting place of the money in our account. From here, all the buckets would get the money.

Debt Bucket - is where debt payments would go. Like Home Loan, Auto Loan, Personal loan would come under.

Expenses Bucket - is where the day-to-day expenses and planned expenses would go in.

Asset Bucket - is where the assets would come under.

Short-Term Bucket - is where the emergency funds would come. For example, normal savings account or cash at home or checking account money, which is easily accessible would be under the short-term bucket. Immediately accessible!

Medium-Term Bucket - is where next level of emergency fund is available. For example - if you have a not-so-easily accessible high-yield savings account - this would be the right bucket.

Long-Term Bucket - is where the retirement accounts - for both employer sponsored and individual retirement accounts and any other long-term accounts would come under.

Worst Case Bucket - is where all the insurance accounts would come under. ULIP products, term insurance and endowment insurance plans etc.,


Go towards the goal of making Debt Bucket empty;
Increase the Income bucket;
Expenses has to be reduced;
Asset bucket has to be increased gradually;
Long-term bucket has to be filled gradually;
Short-Term and Medium Buckets has to be filled aggressively;
Worst Case Insurance is always mandatory if are the breadwinner and you have dependants.

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Thursday, July 17, 2008

Madurai Loan Fair

The Tamilnadu Industrial Investment Corporation Limited

Plot No.3, Vaigai Colony, Anna Nagar, Madurai - 625 020

Phone : 0452 - 2533018, 2533331, 2528572

Dear Sir / Madam,

The TIIC Limited, Madurai



ON 18-07-2008 Friday

from 10 a.m. to 5 p.m.



Dr. Ambedkar Salai, Madurai - 20

for the benefits of entrepreneurs of Southern Districts

Higher Officials of TIIC & Machinery Suppliers for

various Industries are participating for guidance on


  • Loan Assistance

  • Selection of Machinery

  • Various Subsidies like Government of

Tamilnadu Subsidy, CLCS, Food

Processing Subsidy etc.


We cordially invite you to attend LOAN FAIR with your

tentative project proposals and avail of the services.


The TIIC Ltd., Madurai


Wednesday, July 16, 2008

Difference between tier-I, tier-II and tier-III

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Metros are basically regarded as Tier I cities, relatively smaller cities are regarded as Tier II cities whereas smaller cities are considered as Tier III ones. Here is the explanation why they are considered so:-

As Indian economy experiences the boom in all sectors triggered by its economic and investment policies, the metros or the Tier I cities are the ones that are inundated with burgeoning investments in the industrial and the services sector. Along with large-scale investments has boomed the realty sector creating congestion, arising out of an increasing demand for residential and commercial properties. This congestion in realty structures has forced the respective governments and many investment companies to seek out for alternative smaller cities leading to a demand for Tier II and III cities.

One of the basic reasons for investments flocking in to the smaller cities is available properties and affordable prices. Moreover, the special initiatives taken by the respective governments in providing the smaller cities with infrastructural facilities and creation of SEZs, has played a vital role in promoting these small towns into cities of the future. Keeping in view all the congenial factors necessary for setting up corporate infrastructure, the investing companies ranging from pharmaceuticals to financial institutions, automobiles to the IT & ITES sectors; to the retail and real estate sector are opting for the smaller cities transforming them into India's fastest growing cities in a matter of few years.

The large scale investments by the corporate sector in the smaller cities apart from initializing economic prosperity and job opportunities has also created demand for realty spaces. While developers from all the nearby areas flock in to cater to the real estate demands, the property markets in these smaller cities are witnessing along with a changing skyline, an unprecedented hike in real estate prices. While the realty trend in Tier I cities have reached a saturation point, with the yield gap witnessing significant margin of 9.5 to 10 per cent, the Tier II cities record a yield of 10.5 to 11.5 per cent. However, the emerging winners in the present real estate scenario of India are the Tier III cities, which offer greater yields of up to 12 percent. This rising prices and promising future of these cities are driving investors to buy properties predicting long-term gain in years to come.

Recent trend also shows that due to lack of availability of business equipped infrastructure and exorbitant property prices in the existing metros, the IT, ITES and the BPO companies are vying for the smaller cities where they are promised better infrastructure, state-of-the-art office spaces and also skilled manpower. A careful study of these Tier III cities reveals the close proximity of these cities, to the most happening cities of India like Delhi, Mumbai, Bangalore to name a few. Thereby, it will be no mistake if they are called the extension cities of the booming metros. Of late, the tier II cities like Pune, Kolkata and Hyderabad have made business opportunities and infrastructural development like never before. Now it is the turn of the Tier III cities or the smaller cities like Jaipur, Ghaziabad, Kochi, etc. to make it big into the realty business as the government and the corporate sector target them as 'India's Next Destination Cities'.

sourcing from p a v a n @ w i k i a n s w e r s

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Karur Hospital upgrades

Six Government hospitals in Karur district are set to get new and additional buildings at an estimated cost of Rs 7 crores. Civil works have commenced for the projects. It has also been planned to upgrade facilities in 270 Government hospitals across the State at a cost of Rs 55 crores.

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Tuesday, July 15, 2008

Experience with Theatres in Madurai

Theatres in Madurai.

Yesterday, I and my wife were discussing and remembering our childhood/school days in Madurai with the theatres nearby.
I remember the theatres nearby my home as - HariVignesh(previously called as Jagathaa) in Palanganatham; Murugan theatre in a Jaihindpuram corner in Madurai; Natraj theatre on the bypass road.

There were shows in the morning 11 AM; 2:30PM;6:00PM and 10:00PM. Morning shows and matinee shows are usually present by jobless youths and housewives and all waste fellows. When I go for weekend trips from my college to Madurai home, I used to go to these morning shows and was being one among those jobless fellows! I had nothing else to do in the morning time, since everyone would be busy and no cable TV at home too.

Murugan theatre is the small theatre I have ever seen in my life. It is not so clean. rest rooms are open area with tiny walls. One side is for gents and another side for ladies. There are some benches in the beginning rows - the fare is 2 or 2.50 Rs. This constitutes the whole theatre. Last 5 rows, except one row has chairs. They cost RS.4.50. One last row costs Rs.5.00. That has some cushion and the same time with bed bugs too. I truely enjoyed going to movies here in those days.

In the interval, you could get coffee or ice cream or murukku or tea or other snacks. One interesting part is snacks are even delivered at your seat too.

I will definitely miss those days and miss these theatres, considering the impact of the Cable TVs and Home Theatres at home, pirated DVDs etc.,! It is definitely an experience watching movies in these theatres.


Unofficial but Latest News about Madurai IT Park

News from an unofficial but reliable source about Madurai IT Park.

As you all know, there was/is a little delay in IT Park works in Madurai.
Electronics Corporation of Tamil Nadu C Umashankar had confirmed recently that the IT park work would resume and the IT park construction would be completed by next year. Madurai IT Park Inauguration will definitely happen next year, said ELCOT C.Umashankar.

Investors, hang in there - there is lot of return of investment to make!

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Vadapalanji Site layout in Madurai by ELCOT

Here is the site layout of Vadapalanji in Madurai framed by ELCOT.

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Ideal Portfolio: Asset Allocation : Madurai Money - Madurai Finance

I have been analyzing on the ideal portfolio and here is what I found:

# You need to plan for the days when you may have a family. Hopefully, you have already made your investment in a property. Keep no more than 50% of your money in property.

# You don’t need to have more than 5% of your money in savings accounts.

# Keep a decent amount of money (30%) in equity - you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.

# Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.

# And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

This portfolio success would differ from person to person.

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Challenges in Tier-II cities like Madurai Salem Coimbatore and Trichy

Here are few challenges in Tier-II cities like Madurai, Coimbatore, Trichy and Salem:

Lack of

quality commercial space,
infrastructure development,
quality hotels,
public transport in peripheral areas,
availability of recreational and
educational facilities and
rise in labour and real estate costs.

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