Power Of Compounding

Compounding investment earnings can turn your small investments into a whopping sum after a period of time. The best way to take advantage of compounding is to start saving and investing wisely as early as possible.

Sachin Tendulkar started playing cricket at the age of 16. At 29, he has already amassed over 12,000 runs in one-day matches. On the other hand, Robin Singh joined the Indian team at the age of 25 and has retired now. He could manage only 2,336 runs in one-day matches. Before you begin to wonder if we have lost our marbles, let us tell you what we are trying to arrive at here. The idea is simple: the earlier you start investing, the more likely it is that you would end up making more money. While runs scored in cricket don't multiply automatically, investment does. Surprised? Well, the fundamental principle of compounding helps you realise this.

Let's see how the concept of compounding works. Suppose Sachin started investing Rs 2,000 per year at the age of 19 and when he reaches 27, he stops investing and locks all his investments till retirement. Robin, however, doesn't make any investment till he is 27. At 27, he starts investing Rs 2,000 a year till the age of 58. The adjacent table tells you how their investments would turn out when they both are 58, assuming that the growth rate is 8 per cent per annum. The results are eye-popping (see Compounding: A Tale of Two Investors).

What is compounding? Benjamin Franklin once wrote somewhere: '''tis the stone that will turn all your lead into gold Remember that money is of a prolific, generating nature. Money can beget money, and its offspring can beget more.'' Compounding is a simple, but a very powerful concept. Why powerful? Because compounding is similar to a multiplier effect since the interest that is earned by the initial capital also earns an interest, the value of the investment grows at a geometric (always increasing) rate rather than an arithmetic (straight-line) rate (see How Compounding Works). The higher the rate of return, the steeper the curve.

For example, at an annual interest rate of 8 per cent, a Rs 1,000-investment every year will grow to Rs 50,000 in 20 years. While at a 10 per cent rate of interest, the same investment will fetch you Rs 63,000 in 20 years. So, it is quite clear that a 2 per cent difference in the interest rate can make you richer or poorer by Rs 13,000. And, by staying invested for a longer period, your capital will earn more money for you.

Basically, compounding is a long-term investment strategy. For example, when you own a mutual fund, compounding allows you to earn interest on your principal. Compounding also occurs when you re-invest your earnings. In the case of mutual funds, this means re-investing your interest or dividend, and receiving additional units. By doing such a thing, you are earning a return on your returns and the principal. When the principal is combined with the re-invested income, your investment will grow at an increased rate.

The best way to take advantage of compounding is to start saving and investing wisely as early as possible. The earlier you start investing, the greater will be the power of compounding.

India to purchase 22 Predator 'Guardian' drones: All you need to know about these UAVs

As Prime Minister Narendra Modi's first meeting with US president Donald Trump inches closer, the US is expected to approve India's purchase of 22 unarmed drones. While the deal still requires approval by the US Congress, the approval from the executive branch is seen as a big boost to defence ties between the two countries. India-US relations had flourished under former president Barack Obama but have drifted under Trump, who has courted Asian rival China as he seeks Beijing's help to contain North Korea's nuclear programme.

The Indian Navy wants the unarmed surveillance drones to keep watch over the Indian Ocean. The deal would be the first such purchase by a country that is not a member of the NATO alliance.

The Guardian drone

The Guardian Unmanned Aircraft System (UAS) which India is buying is manufactured by General Atomics Aeronautical Systems. It is the naval variant of the Predator B drone or to call it by its proper name, the MQ-9 Reaper. The Reaper was the United States Air Force's first hunter-killer UAV. Compared to the old MQ-1 Predator, it is larger and more powerful as it has a 900-horsepower turbo-prop engine, compared to the 119-horsepower Predator engine. It flies at almost three times the Predator's cruise speed.

The Reaper has been acquired by the US Air Force, US Department of Homeland Security, NASA, the Royal Air Force, the Italian Air Force, the French Air Force and the Spanish Air Force among others.

The Reaper is based on the original Predator drone which interestingly was designed by a Iraqi-born Jew, Abraham Karem who is considered the founding father of UAV (drone) technology.

To be clear India is not getting the Reaper, which is an armed aircraft. Instead India is buying the unarmed Guardian Unmanned Aircraft System (UAS) which was developed by the US Office of Air and Marine (OAM) in partnership with the US Coast Guard. The Guardian has been modified from a standard Reaper with structural, avionic and communication enhancements and an added Raytheon SeaVue Marine Search Radar. Its Electro-optical/Infrared Sensor is optimized for maritime operations.

As far as the numbers go, it has a wingspan of 20 metres and is powered by the Honeywell TPE331-10 powerplant. With a fuel capacity of 1769 kilogrammes, it can attain a maximum altitude of 50,000 feet (15,240 metres) and can cruise for a maximum of 27 hours.

The remotely piloted Guardian allows for missions to be conducted safely in areas that are difficult to access or otherwise considered too high-risk for manned aircraft. This risk-reducing capability makes it critical to personnel safety and mission success. It can also fly in a completely autonomous mode.

Drones or 'remotely piloted aircraft'?

Incidentally, the operators of the drones prefer to use "remotely piloted aircraft" when discussing these types of aircrafts because it better reflects the presence of a human operator, who sits at a computer control panel thousands of miles away. This change in nomenclature is significant because as a new generation of pilots are being recruited who might spend less time inside a jet plane. As such, the authorities want the world to know that humans have positive control over these vehicles.

The United States has embraced unmanned aerial vehicles (UAV) in a big way as it is now training more pilots for advanced UAVs than for any other single weapons system. As India builds up it's drone capacity, it is certainly taking a step to the future which will have lesser human casualties and more strategic gains in disputed areas.

With inputs from Reuters

How do I prepare for the CAT 17 within two months?

CAT is not a rocket science you don't need to mealt metal's for cracking CAT . A dedicated 400 hours is sufficient for brushing up your basic concept and solving some questions and 12 mocks are enough for cat so another 36 hours for mock and 36 hours for mock analysis and all together 480 - 500 hours are sufficient for acheaving a good %tile .

With now 60 days remaining we have 60*8 = 480 hours in our hand . Now you need a proper guidance and time table to boost up your preparation .

I would break it too 4:3:3 (play on your strengths)

Quants : 4 hours

Verbal : 3 hours

LRDI : 3 hours

Starting with quant

For beginners : Clear your concepts in 30 days

Arithmetic : 7 days

Number system : 5 days

Geometry : 6 days

Algebra : 6 days

Cord. Geometry : 2 days (non engineering students may ignore )

Modern maths : 4 days

With remaining 30 days

1. Give mock every 2nd day
2. Solve previous years questions
3. Attend workshops

Verbal part

Now most of aspirants are stuck in this section . RCs are like nightmare to them . So mark my words reading is the key in this section just read and read each day for atleast 60 mins ( The Hindu) . At this point mugging up grammar won't work .

The plan is

1. 60 mins in reading articles
2. 60 mins for RCs ( 3/day )
3. 30 mins for jumbled paragraph ( 5/day )
4. 30 mins for other verbal ability questions

You can follow word power made easy if time permits

LR & DI section

This section is like make or break section .

If you are Sherlock fan you already have a head start in this section .

So you need to work really hard for this section it judge you on many parameters I.e calculation , speed , judgement , flexibility , decision making skill and many more .

So practice is the key

So brush up basics in first 10 - 15 days

I would recommend to solve 3 sets of Lr & 3 sets of Di eeach day

Solve Sudoku and puzzels it will help you in this section .

Follow the above honestly and you can achieve you desire % tile

Make it to 12 hours a day if you are aiming top iims

Apart from 10–12 hours of studies you also need to maintain your body . As at this time you won't wish to spoil your health and it is quite possible that it may happen due to high pressure and hectic schedule .

Few things you need to follow for your brain and body

• Drink plenty of fluid
• Eat fresh ( avoide junk food ) consume what grow on plants .
• 30 mins of music , meditation , walk , gym , exercise ( anyone ) would be best for refreshment .
• Talk to your family & friends for a lighter mood .

The more you sweat in practice the less you bleed in battle.

And always remember Hard work always pays in % tile if you are a cat aspirant .

Ping me if you need further help

Stop watching TV series for atleast 60 days

Instead watch Games of Quants , Breaking LRDI & Verbal dairies.

How can I start Investing today?

Here are the steps to begin investing in the stock market:

1. Research about the market
   Before investing your money on random stocks that you aren’t even sure if they’ll appreciate or depreciate their value, you should first research on the current market trends. There are a lot of websites that regularly update investors on market reports. You can use these to see which stocks are likely to increase their value. Once you have a solid choice of stock, then you can start investing in it.
2. Choose an online broker site
   Now that you have a stock in mind, the next step is to find an online broker site that offers trading on the stocks you want. Choosing a trading site requires a lot of research. Make sure to read trading reviews of the site you want before you create an account with them. The trading site should always be trustworthy and have high integrity based on their past transactions to make sure your money will be well taken care of.
3. Practice on a demo account
   Once you have picked a reliable online broker site, you can now create an account with them. Most of the time, these broker sites offer the creation of a demo account which you can use to practice your trading skills and formulate trading strategies. The good thing about a demo account is you can experience how trading really works with virtual money so gaining or losing money is not a problem as it is simply a simulation of a real trading process.
4. Create your trading account
   Now that you have practiced your skills and developed your trading strategies, you can proceed to creating a live trading account where you can invest real money. Trading sites usually offer several different types of accounts. Make sure to choose one that fits your trading plan or lifestyle. For example, if you are a beginner, you can start with the minimum account to try out your trading strategies first.
5. Choose and buy reliable stocks
   Buying your first stocks is also a crucial part in trading as this would test your analytical skills. You should buy stocks from dominating companies that you positively think will increase value. Make sure to read about the company’s previous stock records to make sure you only invest in a profitable company. In case the stocks you have brought depreciate, do not be afraid because the market usually fluctuates a lot and there is still a possibility that your stocks will regain its value.
6. Monitor the market daily
   Now that you have your own stocks, you should always monitor the market and make sure they are always in a profitable favor. You should also be updated on the stocks that enter the trend so you can invest in these and gain more profits. Also, set a stop loss to make sure you have full control of your assets. This is important so that you can make sure not to lose more than what you can afford to.
7. Consider reinvesting your profits
   Trading doesn’t end in buying and selling of stocks once. Of course you can always withdraw the money you have accumulated in your account. But also consider reinvesting them into other stocks so you can have a higher chance of greater profit. This is a way to make a stable living through online trading. Just make sure that even though you are handling several different stocks at the same time, you can monitor each stock to ensure they are still creating bigger profits.

Best of luck!

Movie Reviews

Secret Superstar Movie Review

AVG READERS' RATING:CRITIC'S RATING: 4.0/5

 4.3/5

REVIEW THIS MOVIEWATCH TRAILER

CAST:Aamir Khan, Zaira Wasim, Meher Vij, Raj Arun, Tirth Sharma

DIRECTION:Advait Chandan

GENRE:Drama

DURATION:2 hours 30 minutes

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• CRITIC'S REVIEW
• BOX OFFICE

IT'S ALL ABOUT MOTHERS AND DAUGHTERS
SECRET SUPERSTAR STORY: Insia Malik (Zaira) is a talented 15-year-old school girl from Baroda whose spirit is ripped because her mother is in a troubled and violent marriage. Of course she still dares to pursue her dream of becoming a singer and she also valiantly attempts to free her mother from her conservative, cold father.

SECRET SUPERSTAR REVIEW: When Aamir Khan backs a film, you expect quality. The actor who plays an obnoxious music director, Shakti Kumaarr, in this outing, doesn't let you down on that count. Debutant director Advait Chandan, who schooled under Aamir gives you a simple heartfelt film (slightly `fairytalish' at times) but one in which you run the entire gamut of emotions — joy, tears, excitement and ebullience.

• 
  Secret Superstar: Trailer
• 
  Secret Superstar: 'Meri Pyaari Ammi' song
• 
  Secret Superstar: 'Main Kaun Hoon' song
• 
  Secret Superstar: 'Sexy Baliye' song
• 
  Secret Superstar: 'Sapne Re' song
• 
  Secret Superstar: 'Nachdi Phira' song

Nothing is new here. Whether it is batting for the girl child or freeing a battered housewife from the shackles of a loveless marriage, the material at hand has been touched on earlier. But what makes 'Secret Superstar' stand out is the adventurous narrative that keeps you rooted and guessing. You can feel the frustration of the Malik household in which not just people, even emotions are trapped. When the protagonist breaks free, you find yourself simultaneously wiping your tears and doing a victory lap.

Aamir is the scene-stealer. His character — a cross between the brash American Idol judge Simon Cowell and your crass Bollywood music directors from the 80-90s — appears like a caricature at the start. But you invest in him eventually because of the nuances he brings. It is also commendable that he never really attempts to steal the limelight from young Zaira, who is an absolute delight to watch. Najma (Meher) as the submissive wife says so much without spelling it out. And others like — Chintan (Tirth Sharma) and child-actor Guddu (Kabir) are adorable.

Amit Trivedi's music is pleasing but the score doesn't have the winning quality needed for a film like this. The lyrics by Kausar Munir just about pass muster.

If you world revolves around your mother, you're going to root for this film. Go for it girls. 

In-depth Analysis

Our overall critic’s rating is not an average of the sub scores below.

Direction

3.5/5

Dialogues

3.5/5

Screenplay

4/5

Music

3/5

Visual appeal

3.5/5

Taylor Swift - …Ready For It?

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What are some last minute CAT preparation tips?

Tip #1
Rather than focusing on all the topics, students need to try and select those topics with which they are more comfortable. Even on the exam day, with the question sheet in hand, students shouldn't try to solve each and every question and waste their energy; they should rather spend 5 minutes in scanning a section and selecting questions from their area of expertise and skill.

Tip #2
In order to ace CAT, students should look at questions from previous years' CATs and understand its syllabus. They should assess whether they are proficient, average or need improvement in each of the areas. The areas that fall in the third category should be focused on first followed by second and first.

Tip #3
CAT aspirants should always start early in preparing for the exams as an early start would benefit them in gaining knowledge about the kind of questions to be asked. Another advantage to it can be spending time in developing extra reading habits and increasing vocabulary.

Tip #4
The best way to go on with the CAT preparations is to evaluate oneself in every 10-15 days, which is done by mock tests. But one thing that students should be careful about is to not to repeat the mistakes made by them in either the mock CATs or while practicing at home or the whole purpose of taking mock tests would be lost.

Tip #5
One thing that is must while preparing for CAT is to practice on calculations rigorously on an everyday basis. There are never long equations in CAT, the only thing which works is the smart way of calculations which can be mastered by practicing the tricks available in books and internet.

Tip #6
While preparing for the CAT question paper, one must keep in mind that management schools seek to test understanding of basic concepts that the student possesses. So, students should stop looking for the toughest material to practice and realize that their understanding of concepts is not as good as they think it is.


Tip #7
Some things which CAT aspirants must do on an everyday basis are- Minimum 10 hours study everyday, especially before the 6 months of CAT exams. Preparation of minimum 10,000 words to enhance Vocabulary, study of newspapers and editorials for 2 hour's everyday and reading at least two magazines and one novel each week.

Tip #8
Time management is an essential ingredient to crack the CAT exam and make it to your favorite college. Managing one's time includes balancing speed with accuracy, handling the pressure and uncertainty and the apt decision making.

Tip #9
Negative marking is a part of CAT. CAT aspirants are advised to not take wild guesses in the Exam paper. Only if the student is able to eliminate 2-3 choices, then he should take a guess. Otherwise there is no point in wild guessing, as it may drop ones chances of making it right.

Tip #10Last but not the least, students are advised to keep their calm, relax, and believe in them on the day of the paper. They should be ready with all their stuff like admit card, pencils, pen etc well in advance to avoid last minute hassle and give their best shot.