Tuesday 30 June 2015

Saudi Arabia Open For Foreign Investors

The largest country in the middle east, Saudi Arabia has decided to open it's Tawadul (Stock Exchange) for foreign investors. The Saudi Arabian stock market capitalisation is around $528 billion which about two-thirds of Saudi GDP. The move comes after steep decline in oil prices in 2014. Saudi Arabia no longer want it to be an oil dependent economy. It aims to attract foreign investemnt through it's Tawadul and smart cities like King Abdullah Economic City. The steep decline in oil price has affected Saudi Arabia economy by about -2.7%.

The reforms comes at the right timing. Saudi Arabia's economy has doubled since 2006. The total value of FDI resulted to around $208 billion by the end of 2014. Financial services are improving as much as 65% of women having a bank account (this is a big deal). Insurance premiums have grown by around 20%. According to the Telegraph, the best stocks to invest in are Saudi Basic Industries Corporation, Saudi Telecom and National Commercial Bank.

Foreign Investors also have plenty reasons to stay out of Tawadul.
They are :  1) Growing influence of ISIS.
                 2) War with Yemen
                 3) Greece Bailout
                 4) Saudi Arabia's fiscal deficit
                 5) India and China look more promising.

By - Chaitanya Kulkarni ( twitter.com/chai2kul )

Sunday 28 June 2015

Are Mobiles Worth Your Money?

Humans are on the constant quest of communication. We are monophobic and smartphones have become our tool. Mobile is one simple solution to hunger, shopping, dating, emergency and pretty much of everything. A 3 year old might not know ABCD or 1 to 10 but the kid knows how to download a game from Play Store. One might say that mobiles are making our lives easier. But I think it's making us vulnerable. A perfect example of it is mobile networks getting jamed during a terrorist strike or a festival. We are addicted to quick in-hand data. This stupid 5 inch pocket device has ruined our lives. Debates have been taken over by stupid Whatsapp forwards. Dumbos have become a part of Al Qaeda by sending fake messages on bomb blasts and accidents. And the fucking cost of this pocket device is equivalent to a motorbike or even more.

Sadly, these too big to handle devices have become a part of our style statement. Narcissists pleasure themselves while looking at the front camera. People with boring lives are busy filling up things on their facebook wall. Showing off your fancy device has become a sign to avoid contact. 

The myth of digital superiority is the result of expensive marketing strategy. Mobiles these days come with storage capacity upto 128GB. We have Octa Core processors with 3 GB RAM and other geeky stuff like quick charging, GPS, Gaming chipsets blah blah blah. But even after constant attention to R&D, mobile phones suck when compared to Windows XP running computers. The updates are made so scarce that even if you buy an expensive mobile, it will only run for maximum 3 years. This is hardcore Consumerism directly from the factories of Communist China. I hate those tech bloggers who portray Mobile as the greatest tech invention. Mobile Technology is so dependent on its add-ons. A mobile phone needs SIM Card, Internet, Micro SD card, Electricity to operate. It's easy to built an all in one Smartphone but R&D and Marketing department has a reason not to do so. Jet planes, Smart Cities, Power Grids, MRTS Systems, Space Stations have been shadowed by this stupid pocket device which hardly has any contribution towards mankind. Mobile phone has become a Fast Moving Consumer Good.

Consumer pays a hell lot of money for this handy device. The packaging of the phones is not at all Value for Money when compared to other consumer electric items. A mobile phone is packed in 'ecological' paper box cramped with the add-ons. The manufacturers make sure that the device is packed in the smallest and the lightest box to save logistic costs. Device makers just don't give a fuck to the unboxing feeling. Plus there is no cost of installation service. Then what makes mobile phones so costly? It just requires plastic, glass, chipset, screws, software and camera. Motorbikes, Split AC, 4K TV, Desktop Computers, Washing Machines etc are way more cooler and useful devices than mobile phones.

Spending a pile of money for social status is bull shit. Instead, one should rent Mercedes S Class or BMW 7 series and go on a ride on Mumbai Goa Highway. Or a solo trip to Indonesia would be an awesome life changing experience. Stop filling your virtual walls with the artificial you. Spend carefully and enjoy your life. YOLO :)

- Chaitanya Kulkarni ( twitter.com/chai2kul )

This blog post is inspired by the blogging marathon hosted on IndiBlogger for the launch of the #Fantastico Zica from Tata Motors. You can apply for a

Monday 22 June 2015

Insurance Review : Edelweiss Tokio Life - MyLife+

EdelweissTokio Life - MyLife+ is a non-participating, non linked term assurance plan that covers your life and provides security to your family. This plan is exclusively offered online which means one can buy this policy without annoying middlemen or hectic paperwork.

  • Entry Age: The minimum entry age for the policy is 18 years.
  • 2 Death benefit options viz. Lump-sum benefit option and Income benefit option: the buyer is free to choose either or both depending on his/her family’s needs, his/her age, and his/her level of financial literacy.
  • Lump-sum benefit option: A lump-sum benefit equal to the sum assured will be paid on death of the life insured and the policy will terminate.
  • Income benefit option: 1% of sum assured will be paid every month for the next 130 months starting from next month from the date of death.

Let’s have an apple to apple comparison of Edelweiss Tokio Life MyLife+ plan with Aviva i-Life plan.

Edelweiss Tokio Life MyLife+
Aviva i-Life plan
Min Entry Age
18 years
18 years
Max Entry Age
60 years last birthday
55 years last birthday
Max Maturity Age
80 years last birthday
70 years last birthday
Policy Term
 Minimum 10 years
 Maximum 80 years minus entry  age
Minimum 10 years
Maximum 35 years
Premium Payment Term
Regular Pay
Equal to Policy Term
Payment Frequency
Yearly or Half Yearly
Riders Available 
 You can make your term cover    more comprehensive by adding  rider  from the below mentioned  riders:
      Edelweiss Tokio Life - Accidental  Total and Permanent Disability  Rider

       Edelweiss Tokio Life - Accidental  Death Benefit Rider

      Edelweiss Tokio Life - Waiver of  Premium Rider


Thus, our pick of the month is Edelweiss Tokio Life - MyLife+. With so many options to choose online, we at The Indian Capitalist think Edelweiss Tokio Life MyLife+ has a lot to offer to the netizens.

Two key needs that the product satisfies – a need for longer term period and the choice of payout options that best suits the buyer’s family.

* This is a sponsored review. I need money too.

By - Chaitanya Kulkarni

e-IPO for Start-ups

Start-ups is the new craze in graduated Indians. With the success of Flipkart, Housing, Zomato etc, everyone wants to be big in less time. With Private Equity firms like SoftBank, Sequoia Capital pouring money into Indian Start-ups, things are looking easy. India ranks 3rd in the world in the number of Start-ups launched in the year. Yet the billion dollar companies and MSMEs were finding it difficult to raise money from the financial markets and High Net Income individuals. Not a single tech start-up is listed on Bombay Stock Exchange and National Stock Exchange.

In a new wave of reforms, markets regulator SEBI is set to herald an e-IPO system to allow investors to bid online in the public offers, while the new-age startups will get a separate platform to raise funds and list their shares with an easier set of regulations. 

Under the new norms for startups, SEBI will provide ‘Alternate Capital Raising Platform’, which will allow such firms to raise funding from institutions and high net worth individuals from the capital markets. However, due to the risks involved, retail investors would not be allowed to invest in such companies. Besides, the entire pre-issue capital would be locked-in for a period of six months for all shareholders

Besides, SEBI would make easier disclosure norms for startup listing. While filing the draft offer document with the capital market watchdog, such firms would only need to disclose broad objectives in line with the major international jurisdictions. The new regulations are expected to help startup companies raise funds within India and stop their flight to overseas markets.

The Securities and Exchange Board of India (SEBI) may come out with a detailed guidelines on electronic Initial Public Offers (e-IPOs) by June end, where investors can bid for shares on internet. Initially, investors would be able to place bids through internet and by using broker terminals across the country as against the current practice of filing long documents.

SEBI may drastically cut the timeline for listing of shares within two-three days of the IPO as against 12 days. The introduction of e-IPO would help eliminate the printing of application forms, help in reducing the overall cost of public issuance and support companies in reaching more retail investors in small towns.

A framework for the use of mobile applications for making bids in public issues may be presented at the board meeting. Under the norms, investors may also get SMS/e-mail alert for allotment under the IPO, similar to alerts being sent to investors for secondary market transactions.

Hope we see Apple, Google or Alibaba coming from India. It would help both – the initiators and the investors.

- Chaitanya Kulkarni
Connect with the author - twitter.com/chai2kul