Moneylife Events
What the B-schools do not teach you

Exclusive workshop on how to be safe and smart with your money


The youth specially the ones with a new job and their own cash at their disposal have little idea of how to invest safely and smartly. Many end up falling into financial traps or invest in the wrong products. Being safe with money is very important at such a young age in life. A special orientation programme on this score was held in Moneylife Foundation Knowledge Centre for the management students of Centre for management, Bandra (Mumbai).


Eminent journalist Sucheta Dalal, Trustee Moneylife Foundation took the first session where she explained how to be safe with one’s money and the several ways one can lose large chunks of one’s savings. Ms Dalal in her session began with an overview of investing and said that one should keep it simple and should invest in just a few products—products that are safe and well regulated. “There is no guarantee that you will not lose money, but it is safer to invest in products that have regulatory oversight”, Ms Dalal informed the audience. One should be extra cautious, while dealing with your banker as well. Ms Dalal narrated to the packed audience incidents where “relationship managers” have taken genuine and educated customers for a ride.


She talked in detail about the various dubious schemes like QNET, Pearls, Citi Limozine, Japan Life which could be clubbed to category called then pyramid scheme or chain money schemes. These schemes claim to provide extremely high returns luring the unsuspecting savers. She talked at length about new phenomena like Phishing and Vishing on the internet that traps the gullible public and robs them of their hard earned money. She also explained how usurious are the rates charged on credit card outstandings.


The second speaker today was Debashis Basu, editor & publisher of Moneylife magazine. He described the rules for smart investment and stressed the importance of planning for the long-term and the power of compounding. He explained the powerful concept of compounding that one benefits from by saving regularly and investing in safe products. He explained how inflation erodes our wealth which can overcome by investing in blue chip companies and equity mutual funds over the long term. He also informed the participants on how to look at each asset class and identify the risks involved. According to him the most seasoned of the investors focus a much or more on risk rather than returns. Mr Basu showed the audience various routes one can use to invest safely and smartly. To a younger audience consisting of post graduate students his main emphasis was to save at least 20%-25% of their salary and invest at 85% of it in equity mutual funds regularly.


While answering a question he also talked about the macro economic scenario where rupee is on a downward spiral and the implications of the Federal Reserve affecting the trade and capital market of our country.





3 years ago

Fatwa against the nature of business in which QNET indulges…

Some IR asked this question emphasizing again and again on the word “HALAL PRODUCTS” but the council answering this question sees through the EVIL DESIGN and pronounces this business of “NETWORK MARKETING USING WATCHES AND JEWELLERY AS HARAM”.

Question: 20938
Saudi Arabia
I want to know about one business. Which is as following. Sir the business name is network marketing. The process is that I buy one product which is truely HALAL.e.g wathces, Jewellery etc. Aftre buying the product the company from where I bought the products asked me whether you want to become our business parter If I said Yes. Then I become the business partern of that company. And the money I paid to buy the product is my investment. Now if some more persons come to buy the product from this company through my refrece. Then company will give me commission let say 3% to 6% of each product. and the products are truely HALAL. And there is no cheating also. If I make the marketing of this company and asked the people to buy more product from this company then my i will get profit. If i stop then i will not getting anything. Please let me know whether this business is HALAL or not ... i shall be very thankfull to you if you email me this answer.
Answer: 20938
Mar 28,2010
(Fatwa: 548/L=186/tl=1431)

Network marketing involves cheating and invalid condition. Also, it involves earning profit by unlawful means; hence this business is unlawful according to Islam. It is not lawful to become a member of the company and receive profit.

Allah (Subhana Wa Ta'ala) knows Best
Darul Ifta,
Darul Uloom Deoband

The FATWA can be seen here

Nifty, Sensex to come under pressure: Weekly Market Report

If the Nifty is able to cross 5,950, a rally to 6,080 is possible. However, most likely, Nifty will take a dip even if it does rally

A stronger rupee and positive developments in regard to the Syrian crisis pushed the Indian market up on the back of rising foreign funds. The market now awaits the stance of Federal Reserve on trimming its monetary stimulus. The BSE 30-share Sensex rose 462.70 points (or 2.40%) to close the week at 19,732.76 while the National Stock Exchange (NSE) Nifty settled at 5,850.60, up 170 points (or 3%). The Reserve Bank of India (RBI) on Friday took an additional measure to bring in more foreign inflow by allowing non-residents to buy stocks of listed domestic companies through the foreign direct investment (FDI) route instead of earlier process to raise their stakes such as open market offers.


The Sensex rose for the fourth consecutive session on Tuesday recording the highest percentage gain since 27 May 2009. On Wednesday the market edged marginally higher with the news making round that US President Barack Obama has asked Congress to delay a vote on whether to authorize military strikes. On Thursday ahead of the data on consumer price index for urban and rural India for August 2013 and industrial production for July 2013 the market broke the trend of five days of upmove. On Friday the Sensex fell again. The Prime Minister's Economic Advisory Council (PMEAC) sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 from earlier estimate of 6.4% and said that tight monetary policy by the RBI may be continued until stability in the rupee value is achieved.


Sensex and Nifty have moved sharply up from their recent lows about two weeks ago. The indices will either correct now by about 2%-3% or go on to target 6080 from where a deeper correction would take place


With the number of Americans seeking unemployment benefits plummeting last week, there is speculation that the Federal Reserve would begin trimming its monetary stimulus at the next week's meeting.


Among the other indices on the NSE, the top two gainers this week were Realty (9%) and Infrastructure (7%) while the only loser was IT Sector (1%).


Among the Nifty-50 stocks, the top five gainers were PNB (15%); D L F (14%); Axis Bank (11%); Larsen & Toubro (11%) and Tata Power (11%) while the top five losers were Cairn (4%); IndusInd Bank (3%); ONGC (2%); TCS (2%) and I C I C I Bank (2%).


Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:


Top ML sector


Worst ML sector




Software & IT Services




Oil & Gas


Telecom Services


Industrial Intermediates












About 75% funding of six major political parties is from unknown sources!

An analysis by Association of Democratic Reforms -ADR of Income Tax returns and statements filed by Congress, BJP, CPI-M, CPI, NCP and BSP with the Election Commission shows that between 2004 to 12, these political parties received funding worth Rs3,675 crore through unknown sources

Where do the political parties get their funds from? An analysis of Income Tax (I-T) returns and statements filed by six major political parties, All India Congress Committee (INC or Congress), Bharatiya Janata Party (BJP), Communist Party of India-Marxist (CPI-M), Communist Party of India (CPI), Nationalist Congress Party (NCP) and Bahujan Samaj Party (BSP) with the Election Commission (EC) shows that their funding sources remain largely unknown. The analysis done by Association of Democratic Reforms (ADR) shows that sources for over 75% of the funding received by political parties cannot be traced. This becomes very relevant in the light of recent events when the political parties were brought under the ambit of Right to Information (RTI) Act by a ruling of Central Information Commission (CIC). Unfortunately, full transparency is not possible under the current laws, and it is only the RTI that can keep citizens informed.


Political parties are required to submit a statement of election expenditure to the EC containing details like total amount received by them as funds in the form of cash, cheques and demand drafts (DDs) among other things. Political parties submit these statements providing information of funds collected from the date of announcement of elections till the date of completion of elections, which could be between three weeks and three months based on the notification issued by the EC.


Here are the highlights of funding received by six political parties between FY2005 to FY2012


  • Total income of political parties between FY 2004-05 and 2011-12: Rs4,895.96 crore
  • Total income of political parties as donations from Electoral trusts: Rs105.86 crore, which is 2.16% of the total income of the parties
  • Total income of political parties from known donors (details of donors as available from contribution report submitted by parties to Election Commission): Rs435.85 crore, which is 8.90% of the total income of the parties
  • Total income of political parties from other known sources (e.g., sale of assets, membership fees, bank interest, sale of publications, party levy etc.): Rs785.60 crore, or 16.05% of total income
  • Total income of political parties from unknown sources (income specified in the IT Returns whose sources are unknown): Rs3,674.50 crore, which is 75.05% of the total income of the parties

    #Assuming each donor gives Rs20,000, it shows the minimum number of donors required to give the total amount of unknown donations


Description of Funds received by political parties at Party headquarters during elections by these six parties

90.38% of the total funds received by INC at the party headquarters between 2008 and 2012 was by cash (Rs251.96 crore) while only 9.62% of the funds was by cheque (Rs26.81 crore)

83.78% of NCP's total funds were by cash (Rs14.93 crore) and a meagre 16.22% by cheque/DD (Rs2.89 crore)

From the analysis, it is quite evident that a very large percent of the income of political parties (75.1% for national parties) cannot be traced to the original donor.

ADR said, “Full details of all donors should be made available for public scrutiny under the RTI Act. Some countries where this is done include Bhutan, Nepal, Germany, France, Italy, Brazil, Bulgaria, the US and Japan. In none of these countries is it possible for 75% of the source of funds to be unknown, but at present it is so in India.”

In order to strengthen political parties, elections and democracy in India, it is imperative that all political parties should provide information under the RTI.

(Vinita Deshmukh is the consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”)





3 years ago

In SBI, recently appointed clerk, unknowingly her service conditions, accepted small deposits from her friends online and delivered them to senders' kith and kin. As such sum exceeded her known salary & allowances figure, she was chargesheeted.

But, who will chargesheet the Political parties for accepting the funds from unknown sources?

MG Warrier

3 years ago

Interesting analysis. Perhaps sources are not 'unknown' but 'undisclosed'. Growing public interest in matters like sources and uses of funds by political organisations and other entities is encouraging. Today in Kerala, Guruvayur Temple authorities are debating whether or not to furnish information to RBI, in response to a querry, about the gold stock with the temple. Gold and jewellery stock with another deity in Kerala is being accounted under Supreme Court instructions. Let us hope, all these will lead to transparency in handling public funds and the misconception that funds with government treasury alone are 'public funds' will slowly be corrected.

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