Payment Wallets - my take on it

Paytm, PayUmoney, Mobikwik, Freecharge, Oxigen - there are so many payment wallets around these days and they claim to offer so much to the buyer. Discounts, cashbacks, reward points in addition to faster payment times and added security. Here's what I as a regular online shopper think about it all.

1. Paying utility bills / recharges- Wherever cashbacks and discounts are offered on utility bill payments, I think this is a pretty good idea. Sites like Paytm have offers that sometimes give a good Rs.100 cashback - which is quite something. And you get all the convenience of online transaction with the necessary security. Some like Payumoney have a very neat website design that makes the transaction seem simpler.

2. Paying for Taxi / Cab services like Uber or Ola or others - Another wonderful idea, I think. Making the transaction cashless saves you the trouble of always having to keep change in your pocket or the risk of the cab driver not returning the necessary change. And its convenient and safe too - you are not left hunting around your bags for the money or change.

3. Online shopping - Ah! This is where these players would plan for most of their business. When you have money lying in a wallet online, the temptation to spend it on shopping online is too great! And then they offer you cashbacks - ridiculous cashbacks that leave me drooling :P! 

               But then it also determines where I shop from. For eg: if A site offers 10% discount on the MRP of a product, and B site offers 5% discount, but with additional cashback of 10% on a particular wallet, I definitely choose B. Because I know that I can use the cashback on other transactions easily, and it gives me an overall 15% discount benefit. Overall, although paying through a payment wallet during online shopping offers various benefits, shopaholics like me need to watch out for overspending.

These wallets are still new in India and hence the offers are presently too good to be true. Over time, these cashbacks and perks may reduce - whether consumers will still opt for them then, is a question. Also, online marketplace laws and regulations have recently been put in place - lawmakers are critical of the discounts offered. And then my online shopping habits will be brought under control. Until then, I am making hay while the sun shines. :D

Air pollution - closer home than you think

A new study published claims that the air indoors, in our own homes, may sometimes be more polluted than the outdoors. (Read article here) The study does not cover India, but considering the rising levels of air pollution in our country, we ought to take a good look at how clean the air inside our homes is.

For example, in a crowded place like Mumbai, our homes are almost bang in the middle of the same town areas which complain of high traffic and pollution levels. Green areas - playgrounds, parks are few and far between, even in the residential areas. Inside our homes, potted plants are slowly becoming a rarity as societies discourage keeping of plants to maintain the external looks of the building. In our kitchens, a good majority of homes do not have a chimney or an exhaust fan to eliminate the fumes. Air purifiers? A vast majority does not either know of the product or see the need for it in their homes.

And that is just for a city. In rural areas, they still use gas stoves and stoves fuelled with coal, that lead to generous amounts of fumes. There are no exhaust fans or chimney hoods. Within the home, one can imagine the level of air pollution, although the outdoors are still cleaner than crowded cities.

So what do we do about it - pay attention to the air in our homes and surroundings. Grow some plants, use exhaust fans in kitchens, and try to avoid disposing anything by burning.  (Well you can give up on smoking too, but that is a different matter altogether). Try to find out about the causes of indoor pollution, even the uncommon ones (dry-cleaned clothes maybe) and do everything that you can possibly do to keep your families healthy. Time to open the windows of your home and mind.

Black & Yellow taxis versus Private players- who will you choose?

Recently in Mumbai we have had a couple of strikes by Autorickshaw and Taxi Unions protesting against the competition brought on by private players like Uber, Ola and others. Seriously? Can you really protest against competition in today's world?

Yes you can protest against monopoly and price cartels - if these big private taxi services joined hands to charge prices below costs, simply to eliminate other competition. But there is no cartel here. Everybody has their own pricing. Some are offering discounts on first rides or on occasions, but for these new players in the market - this is a completely logical thing to do.

But consider this - at present, even if they do not offer significant discounts or offers, these services are slowly getting very popular with the consumers. Me for one. Why? Service. The customer first philosophy, which ought to be the norm in this age, is not really common in the older players. How? Let me explain.

I try to catch an auto or a taxi near my home to a place which is not too far, but I need to get there urgently. Do I get one? 6 out of 10 drivers will say they are not interested, 1 may claim he is going home and not taking any fares now. 3 may drive you to your destination. And in all this, you lose precious time haggling. Of those who drive you to your destination 1 in 3 will not have any change, so either you pay the exact fare, or he keeps the balance with himself - an added bonus for him.

All in all, in most cases, there is no respect shown for either the customer, his time or his money. Then why protest when someone else does what you don't want to do anyway. Another issue is the state of the vehicle - either autorickshaws or taxis, I doubt most of them meet any Bharat standards of emission, many are pretty old and rickety - and the overall comfort level in travelling in such vehicles is almost nil.

For all those protesting, my simple answer is this:
1. Do not refuse customers that come to you - whatever the distance
2. Be polite and honest
3. Do not cheat or overcharge or refuse to provide change
4. Maintain your vehicles - nobody likes a shaky ride
5. Drive safely

And if you do all of the above, your customers will keep coming to you. Whatever the pricing of the private players, they do charge some premium for their AC services and convenience, that not everybody wants to pay for. Be available for your customers and they will be loyal to you, and there will never be any need to worry about competition.

Diabetes - The creepy ghost lurking under the bed

A recent WHO report says that the incidence of diabetes in India has risen by 100% in the past 13 years (Read article here) and the number of diabetics is projected to rise up to 101.2 mln by 2015. Although diabetes does not sound as alarming to the general public as cancer or TB, the truth is that this disease is a silent killer.

Diabetes increases complications in the treatment of other diseases or injuries. It affects all organs of the body and can also cause damage to them if left uncontrolled. Treating it does not simply mean cutting down on sugar - it requires careful diet control which keeps track on all carbohydrate consumption, in addition to medication. And yes, medication can be expensive too.

Considering the fact that a reasonably healthy lifestyle can keep this disease at bay (at least for Type II diabetes), it is truly alarming that the number of diabetics is rising so steeply. A balanced diet, some regular exercise, good sleep and an eye on stress levels - and you are safe from most lifestyle diseases. Then why are the numbers rising?

Trends indicate that we have gotten used to a more sedentary, more unbalanced lifestyle. We sit for longer, eat more than required, sleep less and worry more. Indeed on the Global happiness index, India ranks 118 out of 157 countries. I think we seriously need a complete makeover.

Related Articles:

Change in lifestyle can reduce risk of diabetes, say experts

World Health Day: Diabetes affects one in 11 peopleglobally, says WHO

India getting fat due to soft drinks, junk

News Titbits - Budget 2016: For the farmers, the poor and the economy

Another year, another budget, and the message to the middle class remains the same - fend for yourselves, we have nothing more to offer to you, except for a new Krishi Kalyan Cess. Here are the budget highlights - if you feel like going through it. Well, hope that the good that has been planned for the farmers, the BPL families and infrastructure - yields results fast.

How safe is your Roti, Kapda and Powder??

A jury in US has directed an MNC to pay $72 millions in damages to the family of a woman who died from ovarian cancer, claimed to have been caused by prolonged use of the company's talcum powder. (Newslink) The company has said in its defence that there is not enough scientific evidence to directly link the use of talc and the risk of ovarian cancer.

But the point to ponder here is that - that we generally take for granted the safety and quality of many of the cosmetic or personal care products that we use on a daily basis. Remember the messages about the dangers of use of lipsticks, antiperspirants, deodorants even baby powders? There was something about the lead content in long-stay lipsticks (and Maggi too!!). Antiperspirants have acquired a bad name around the world because of their suggested link with the risk of breast cancer. Some also suggest that Triclosan present in many handwashes, soaps, detergents, anti-bacterial products, might be responsible for some allergies. Wrinkle-free shirts are also not popular because of possible skin trouble.

The primary concern here in India is that most of these products - especially small items of cosmetics, sachets of shampoos or other use and throw packs of these products - do not contain essential labelling of the ingredients. A simple warning - whether the product is safe for use on children, pregnant women, lactating mothers, convalescing patients - is missing in most cases. We however, being a bunch of optimistic people, assume that since there is no warning then it means that all is well. Nor do we pay much attention to the ingredient list.

Food is a different matter altogether. Our fruits and veggies are supposed to have pesticides. Grains may be genetically modified. Every few months, there is a report on adulterated milk, adulterated food - even in the free midday meal programme. Maggi got a lot of media coverage because of its popularity and probably because it is an MNC. Anti-biotic fed chicken also received their share of the limelight some time ago. But somehow, these issues are forgotten after some time. Remember Cadbury?

Although there is a lot on the administration/government front that can be done; as actual consumers we also need to be aware of what we eat, what we use and what we share with others. The world is changing; our environment - the pollution levels, diseases, climate, the hygiene levels - everything is changing. It is not necessary that someone prove to you that something is bad for your health - common sense can come to our rescue in most of these areas. Remember that too much of anything is bad - healthy living is being aware of our own needs and maintaining that right balance in everything else.

Some useful links:
1. Safe skincare products in pregnancy
2. When Wrinkle-Free Clothing Also Means Formaldehyde Fumes

Oh! The Stock Market Bulls and Bears

The kind of things people say sometimes! Listen to this one mentioned in the news a couple of days ago - 'If the market falls 20% more, sell your house and buy equity,' Nilesh Shah, MD Kotak MF.

I understand that the gentleman must have meant that with a further fall of 20%, the Indian stock market would be a lucrative buy, as against real estate or any other investments. But in the stock market world, it is always better to be clear. For many fortunes have been made and lost here in an attempt to reach into the heart of this seductive temptress.

Personally, I am in no position to give advice on the stock market. I have not really followed or kept track of it. Once when tempted into it, have managed to lose a few thousands here and there - thousands which would not have been lost, had I not developed cold feet a few months into the investment. A fair few times, I have also made money, when I have invested wisely - through mutual funds. But again, I could have made more money if I had waited for the right time.

All I can share is my personal experience for those who really want to invest. My experience says that, unless you are following the stock market very carefully and religiously, it is better not to buy shares blindly based on market gossip or tips from your brokers or friends / families - however reliable it seems. If you must; invest in A group shares with reputed company names (read here about classification of shares). But better still, do not put your own head into deciding what to buy. Let better heads decide - i.e. invest through mutual funds.

There are rating agencies, brokerage houses online - all give you good information on which funds are doing well over a 5 year or other reasonable period and which are not. Additionally, equity mutual funds enjoy good tax benefits in our country - equivalent to the purchase of equity shares - no taxes if you hold for a minimum of 1 year. Also, you can invest small amounts regularly - through Systematic Investment Plans or SIPs. Small amounts like Rs. 500/ Rs.1000 per month can be invested. Unlike in case of shares, where you have to buy according to the market value. A big plus these days is that mutual fund investment can be easily done online now and direct investors do not attract brokerage charges or annual fees.

Second thing is, to know that for really good returns, you have to consider holding onto your investments for at least 5 good years (provided that you have invested wisely - through good mutual funds or directly in good A group shares that you have researched on). Once you have invested wisely, sit back and don't look at your investments frequently - forget it for a couple of years at least. Okay, you may keep a track of your investments if  you can't forget about it. But remember that market fluctuations are cyclical - so don't jump to buy as soon as the stock market falls and don't rush to sell as soon as the market picks up. The vice versa is also true. Stock market investments are not for the faint-hearted. One who wants to win, has to have the patience to wait for the right time.

Third thing is - how do you know when the time is right? For starting with your investment in baby steps through mutual funds - almost any time is right. For directly buying shares, you will need to do some research. But if you wish to buy good quality shares that you know have great potential, again any time is right. The perfect timing is a matter of concern for regular / daily traders and brokers, who invest in all and any kind of shares - depending upon market news, day to day changes. For us common folk, being a long term steady investor makes more sense. It gives you more peace of mind too. And good time to sell? Well, after you have been invested for at least 3-5 years and have accumulated a good base, sell whenever you need the money. Don't go by greed, just by your need.

I know what I have mentioned above is not much. I have only stated what everybody intuitively knows about the stock market. But there are fears and stigmas attached to investing in stock markets - I would suggest that today investors be brave enough to invest in the markets, but through mutual funds. The amount of knowledge and information available through the internet today for investors is pretty good. One can use it to good advantage and also play a role in helping our economy.

Mosquito Menace

Trying to decide whether I should switch off the fan on a cold winter morning - the choices being getting bitten by mosquitoes or feeling the chill in my bones, I am struck by the thought that so many of my household decisions recently have depended upon the presence or absence of mosquitoes.

There is a plot under excavation in the neighbourhood and the water logging there has led to an increase in the number of mosquitoes. But then, winters have always meant more mosquitoes. The trouble is that lately there is not much relief even in other seasons. And the fear of malaria, dengue and other mosquito borne diseases (Zika being the new addition), always keeps us on our toes.

So we have mosquito repellent machines, fast action cards for difficult days, mosquito repellent cream, had even bought mosquito nets for bed, but found it a cumbersome task to use. One window has a net against mosquito, planning for the others now. We keep the fan switched on even when we do not need it, only to keep mosquitoes away. We think before we keep indoor plants, keep windows shut in the evenings and have made ourselves miserable in every possible way.

Why is it that mosquitoes have become such a menace? Haven't we paying enough attention to the health risks that result in letting mosquitoes breed? Researchers in China are working on a project to infect mosquitoes with bacteria to bring down their population - read link here. Brazilian armed forces have now taken up the task of fighting the Zika menace (read here). Why aren't we in India taking things as seriously? We are focusing more on the protection equipment and cures for disease - all very good for the businesses working in the area, but not for the rest of us.

Whatever results such projects give, it will be very difficult to fully eradicate the species - not that one would want to do it either (remember the link between possible extinction of bees and the food chain?). But bringing their population under control is the need of the day. We are spending more and more on preventing mosquito bites. We really do need our scientists to work on the China model. What say?

Following are links that suggest some natural remedies against mosquitoes. Check and let me know if any of these work for you.

A safe and Natural Mosquito Repellent which can be made at home

5 Home remedies to keep mosquitoes away this monsoon

10 Ways To Get Rid Of Mosquitoes

A good time to invest

No, I am not going to tell you about where you should invest or if some stocks are hot / cold. This post is more about the year end 80C investment planning that most of us ought to take somewhat seriously.

Presently we can invest up to 1.5 lacs in specified saving instruments or other specified areas to reduce our net tax liability. Every year around Feb-March, I see so many of my friends and associates scrambling around to make that last minute investment. While some, especially C.A.s (most of those I know), just put all of the money in P.P.F. and sit back and relax.

So what are the best plans to invest? The best and the most critical idea is that you should first have a PLAN. And no, I am not talking about those investment ads that say you should have plans for every stage of life, increasing insurance cover after every major event and all - that is all secondary. First things first, before the beginning of the year, you should have a plan about where you will invest. It makes a whole lot of difference.

And it is not such a difficult thing to do - check out your priorities and decide what kind of risks you are willing to take and what returns you want. If you want to be extremely safe and be able to see where your money is sitting - then go for PPF or NSCs. For lesser tenures, 5yr Bank FDs are available. If you want to start planning for retirement, NPS is also a good idea - and now it has a separate deduction, and has also gone online.

If you think your family will need some compensation if suddenly something were to happen to you or your income earning ability, then buy insurance. If you are young, and willing to take some risks, wish for a taste of the stock markets - go for tax saving mutual funds or Equity Linked Savings Schemes as they are called. And if you want a balance of everything - go for it!

For those who have PF deducted from their salaries, a part of the 80C limit gets already covered by it, count that too if you are short of funds. And if your home loan principal repayment covers most part of your 80C limit, then in case of limited savings, that can come to your rescue.

The point is that - you know what you want and what you have. Start at the beginning of the year. Save and invest regularly. You do not really need an investment consultant to tell you that. And most of these investments can be done online now. It cannot get simpler than that. 

Going the LED way

Recently there have been numerous efforts and news articles, all suggesting, quite reasonably - to choose LED lights over CFL / Incandescent bulbs. About how LED bulbs are not only environment friendly but also energy efficient.

The Evolution of Lights - source wikimedia

Several calculations are available on the net supporting this information - the quantum of energy that India can save, the cost - all huge figures. But they did not tell me how much I could save specifically, for I have already invested in CFLs. So, I have decided to calculate my savings based on a simple example - our usage at home. I already have about 7 CFLs installed at home, and I was wondering if it did make sense to replace them right now, while they were still functional.

For calculating costs, I checked my Reliance energy bill - which showed that although the Unit Rate / kwH is between only between Rs. 2.11-3.58/ unit (slab wise based on units), there are additional charges like Wheeling charge, RA Charge and FAC which is also calculated unit wise. If I add up all these, the cost comes to somewhere around Rs. 79-116 per unit, again depending upon the slab wise consumption. So for calculation purposes, I have taken a rate of Rs.100/kwH.

My workings are in the table below - please note that these are rough unprofessional workings, based on what I could understand - kindly do not quote the figures anywhere. And I have made 3 major assumptions for my 10 year chart: 1) LED life of 10 years, in which CFLs would have to be changed thrice, 2) Unit rate of power at Rs. 100/kwH and 3) Wattage of LED bulb required would be roughly half of CFL

The table above is only indicative - it does not consider inflation in the power cost above nor a possible decrease in the cost of CFLs in the future. And if checked by an engineer or a technical person, there may be various other shortcomings in the calculation - as I said, this is as rough as it gets. But even with these rough workings, I get the general idea about what it means when they say LEDs save power. 

Even if the initial purchase cost is high, even for a home user like me, this can help in saving about Rs.200/- in electricity costs every month!!. Discounting for errors, even if I consider a saving of just 500-1000 per year, it still does make sense to invest in some - RIGHT NOW. I think I will scrap those CFLs now. And once I have replaced all CFLs with LEDs, I promise to post my actual savings in power bill on this blog.

Good links:
1. Comparison Chart
2. www.bijlibachao.com is a good website for all power-saving related questions

What's up with our secular India?

Just when we thought the intolerance debate had died down with the Bihar elections, one statement by a public figure has evoked the kind of reactions that seriously make us wonder if there really is freedom of speech in this country.

I am not taking sides here - it's just the fact that every person, whether he is a star or a common man - is entitled to his own opinion. Of course, it would suit the stars better if they were more diplomatic in their communication, but then they are also humans.

So why such reactions? If India was really tolerant, we could have listened to it and given it a thought. But the reactions come from the intolerants. And look at the scale of the reactions! Social websites, chat platforms - all flooded with messages. Why though? Why is it that one person making a comment provokes anger against the entire community?

I had read once that fear of death brings people closer. Had assumed terrorist attacks would do the same. But it seems it is only increasing the divide between communities prejudiced against each other. And the rift is getting deeper.

When our freedom fighters hard earned independence for our country, they ensured that the constitution expressed our country as SECULAR, with freedom of religion and speech. Why? Because that is what made our country truly rich and beautiful - its varied cultural heritage. India has never been a Hindu nation, nor made any attempts towards it.

Which is just as well. When late Dr. APJ Kalam gave the country Wings of Fire, we never complained that he is a Muslim, a Tamilian. When soldiers of all religions lay down their lives at the border, we do not complain that they are not Hindus. And why think so deep? Even when Lagaan reached the Oscars, we were so very proud of the celebrity who has been lambasted by everyone in the last 24 hours.

There seems to be something wrong somewhere. When did we become so obsessed with religion? And why are people looking towards the Government for action? This is not something that requires policy action - it needs serious introspection.

Related Links:

Is India tolerant? It doesn't matter because the reactions to Aamir Khan's remark justify his fears

Surrogacy - the ethical and legal issues surrounding it

For a couple who is childless and medically unfit to have a biological baby, the science that has brought forward surrogacy as an option - seems more of a boon than they could have expected. For it gives them a chance, at having a child, which can have a genetical link to at least one of the parents.

But other than that, what about the legal and ethical issues? Supreme Court in 2008 declared commercial surrogacy (which involves additional payment to the surrogate mother) permissible in India, as against many other countries which have banned the same. The Government at present says its in favour of only altruistic surrogacy - without a money reward attached to the same. But in absence of a proper legal framework, there are many questions getting raised.

What about a surrogate child that is born unhealthy - handicapped physically or mentally? A Thai surrogate was left with a critically ill baby when only its healthy twin was taken away by the surrogate parents. This resulted in authorities cracking down on surrogacy units. 

Who bears the cost if there is a miscarriage during pregnancy? And why would strangers be willing to be surrogate mothers if they are not compensated for it - for the majority of surrogate mothers are poor and money is the only reason they are driven towards it.

Who can be allowed to opt for surrogacy? Couples who are medically unfit? Same-sex couples? Financially capable single men or women who want a child - whether medically fit or not? Couples who do not want a natural child for cosmetic reasons?

Read the different articles related to surrogacy and the questions surrounding it (links below). They tell us why a proper legal framework is so essential in a country like India, with good medical facilities where surrogacy is cheaper than the rest of the world. Before it becomes a sort of medical tourism, adequate action is critical.

Related Links:

1. The issues around surrogacy - The Indian Express

2. Australian couple reject surrogate baby in India on gender, take home its twin sibling - The Indian Express

3. Regulate, don’t ban - The Indian Express

4. Australian couple leaves Down syndrome baby with Thai surrogate - The Sydney Herald

5. Quadriplegic Israeli Woman Challenges Surrogacy Rules And Loses A Child 

Cracker free Diwali - why it is an even better idea than it sounds

Toddlers have moved SC through their parents to ensure a cracker-free Diwali, which the SC has turned down, instead asking the Government to promote awareness. Animal rights and Environmental activists are promoting the same everywhere. Schools in Nashik have decided to come together and promote a cracker-free Diwali. Should we join the bandwagon?

I think we should. Look at the air pollution statistics of any city in the country. Consider the exorbitant amount of money that is spent on crackers during any festive season (rough estimates are around Rs.3000 crores). Remember the accident in a firework factory last year that killed children as well? It is a known fact that child labour is employed in this industry, those anonymous children who scald their hands so that those financially better-off may have crackers to play. 

Ok, enough of the empathetic note. Lets also ignore the air pollution and the money. Just check through mythology and tradition - were there any crackers when Ram & Sita arrived home after Vanvaas? Probably not, it is Deepavali - diyas were lit all across the city in their honour. Even if there were any crackers in that age, it would have been simple ones, not the rockets and bombs of the present century. The traditional focus has been on lighting up the home, cleaning up, celebrating with new clothes and gifts, meeting people, eating great food and making merry with the family and community.

So where did firecrackers come from? It seems to me like an ugly shortcut that working parents have begun to take when they cannot find enough time for the kids. Working late, little time to spend, all that they can spend on the kids is money. It has become something of a status issue - "I bought crackers worth Rs.10,000/- for my kids, a bit expensive. But children should enjoy na!"

Children would enjoy better, if parents spent time with them, made them participate in the house-cleaning or sweet-making projects. Taught them good uses of the time they have during these Diwali vacations. But people do what everybody else does, buy crackers and burn away the little time they have with their families.

This Diwali, lets burn away the monstrous idea that are crackers. Celebrate it in your own innovative way. Cook up a new sweet, decorate your home, make a fancy new kandil, colour your diyas, bring a smile on the faces of the needy. Happy festivities to all. 

Related Links:

City schools meet, pledge to promote pollution-free Diwali

Toddlers move SC through parents for a cracker-free Diwali,Dussehra

‘Cracker ban on Deepavali against Hindu tradition’

India: The Child Labour Dampener on Diwali Fireworks

Why online shopping sites have a long way to go

We are currently in the midst of online (and app only) shopping wars with Amazon India, Flipkart, Myntra and Shopclues going all out to promote their Big Shopping festival starting tomorrow. Snapdeal had its preview sales on Mondays and PayTm too is gearing up for the fight.

Although that sounds like a big treat for shoppers like me, while frequenting these sites or apps for that matter, one is often left wanting. And no, I am not talking about website crashes due to traffic. The basic site features itself are inadequate.

Now that most of these retailers have opened the doors to the entire selling community - they have much less time to track what actually goes into an ad posted on the retail portal. Although there are standard product description tags for each site, many of the retailers do not actually update information here, including photographs. And I do not really know that once an order is placed, if the shopping portal people actually cross verify the product being shipped against the ad posted.

Second thing is the website or app design - I have a Windows phone and I know that many of these online shopping site apps actually throw users out of the app at about a 10 minute interval. I guess, the creator did not want us to spend too much time shopping. Some have apps only for Android or Apple marketplace. Even in the website, the filters and sorting sometimes do not work. Some sites have a truly pathetic search feature.

But most important of all, verified user experiences are not adequately encouraged. Of course you get a mail asking for a feedback or review - but one should also focus on getting meaningful reviews. Give users a simplified review format - shipping, quality, fit, vendor interaction - and ensure that the reviews people read make sense to them.

Overall, I believe shopping portals have a long way to go before they make the jump into - "app-only". Personally, I enjoy online shopping on the big screen of my desktop/ laptop.

Related links:
Amazon cracks down on fake reviewers

Soaps, germs and Advertising gimmicks that may not be good for you

As per our soap advertisements, most soaps in India kill 99.9% of germs (Ha! the lucky 0.1%) and that their claims are validated by the top research agencies, from India and abroad. These ads also tell us to use faster handwashes and anti-bacterial soaps, lotions, detergents to keep us safe.

But recently, a study at a Korean University, indicated that regular soaps also do the same thing (Read article here), and with much less fanfare. The study was actually focused on Triclosan, one of the ingredients that are used for providing anti-bacterial protection - and which is currently under the scanner because some studies have linked it to anti-biotic resistance and hormonal problems.

And that is another issue creating headlines in India. Rising incidences of hormonal problems (read previous blog on the same) and Anti-biotic Resistance. India has the second highest count of MDR -TB (Multi Drug Resistant Tuberculosis) patients and is one of the three countries with cases of THE newly identified TDR-TB (Totally Drug Resistant TB).

We now have adulterated milk, groceries with pesticides and chickens injected with anti-biotics that are harming our immune system and making us more resistant to drugs. In such a world, do we really need anti-bacterial products with controversial ingredients to keep us safer? 

While at school, I remember noticing that the healthiest children were always those who ate street food, played in the mud'n'muck and skipped the family doctor visit for minor ailments. Their bodies were also exposed to the same germs as ours, but their bodies developed immunity on their own - the hard way. Don't you wonder sometimes that being too careful may be too bad?

Related articles:

1. ‘Pesticides, antibiotic use and ultra-processingthreaten food safety in India’

2. Latest study by CSE’s Pollution Monitoring Lab findsantibiotic residues in chicken

3. That Glass of Milk, more deadly than Healthy! this one on Milk is pretty controversial.

ELSS & Mutual Funds, why one should consider them too

The first mutual fund scheme in India was launched by UTI in 1964; the mutual fund environment has changed much since then. As of Aug'15, Mutual Fund institutions in India had total assets under management (AUM) of  Rs.13.33 trillion. Out of which 45.5% was held by Individual investors (Source: AMFI).

Impressive. But consider the number of retail mutual fund accounts - 40.89 mlns. in a country with a population of more than 1.252 billion (2013). Okay, that is not a fair comparison to make. Considering NSDL + CDSL records indicate only about 21.5 mln demat accounts (couldn't get the data for retail investors). And a Bloomberg article (read here) indicates that less than 1.5% of India's population invests in the markets. But another article (read here) also claims that Indian households have about 20,000 tonnes of gold stacked away!! (Which explains why the government is so keen on monetization of this asset) If the retail investors have a capacity to buy gold, they might invest in MF as well.

Incidentally, the Government has also been keen on getting retail investors to invest in the stock market - the Rajiv Gandhi Equity Savings Scheme (2012-13) was announced for first time investors. But as of 31 Aug'15, only 50,200 accounts have been opened with CDSL / NSDL and not all of them have been invested in. Tax benefits on ELSS or Equity Linked Savings Schemes that offer tax benefits under 80C are comparable with PPF or NSC. Infact, ELSS only have a 3 year lock in period. Dividend income on Mutual fund is tax-free in India and there is no long term (held for more than 1 year) capital gains tax on equity MFs.

So why are investors wary of mutual funds? Risk perception of stock markets? The CRISIL-AMFI ELSS Fund performance index shows a return of 23.11% since inception, 13.54% for 5 years. (For overall statistics till Jun'15 - check this). Much better than the returns on Bank FDs or PPF. 

The only catch, if you can call it that, is that retail investors need to hold on for at least 5 years to get a good return. PPF has a 15 year term, NSC - 8 years? So 5 years is not a bad deal for better returns in this age when Bank FD rates are declining. Invest in a good mutual fund (after due research) and sit back and relax.

You no longer need a demat account to own mutual funds, you can directly buy from the fund house or a broker or an online portal. It makes sense right now to invest in one. And then, it also gives you the pride of investing in your country's businesses and contributing to their growth.

'Road Safety' an irony in India

Remember the 'Satyamev Jayate' episode on road accidents last season? Or maybe the news article last year about our most popular small cars failing crash tests (see link)? Or maybe you have been observant enough to notice that with rising number of vehicles on Indian roads, accidents have become more common these days. Road and Safety seem to be terms that cannot be used together.

If we look at what the numbers say, India has the deadliest roads in the world. A DNA article last year reported that 12 lac people have died in road accidents in India in the past decade. While the Ministry of Roads & Transport figures for 2011 are - 4.97 lakh road accidents annually, about 1 every minute and 1.42 lakh deaths in road accidents annually, about 1 every 3.7 minutes  (some more stats). And yet, one of the most basic safety features - airbags - is almost non existent in our car market. Why? Because they are costly. And life is cheap?

But things are about to change. In response to the results of the failed crash tests, the Government had initiated efforts on a Bharat New Vehicle Safety Assessment Program, under which vehicles would be given star ratings for safety. This would become mandatory from October 2017, still some time away. A comprehensive plan for vehicle and road safety is set to be rolled out in the next 3-4 years (newslink). More recently, Govt is planning on a policy to decide 'end of life' or expiry date of vehicles (newslink).

The recent developments have led to companies that make airbags planning operations in India. They see a huge market in India - a US$2bn opportunity in our sub-standard roads filled with reckless drivers (Read article 1 & 2). Well, there is an opportunity in every problem, somebody has to take it.

Why do we always need laws to enforce things that are logically required? We are a strange people indeed.

Related article:
India's emission norms way behind times

Climate change, global warming - should we really worry for the future?

The image of a small boy, lying dead on a desolate beach, elicited many reactions world-over this week (Newslink). A clear casualty of war and yet again we are made to think about the refugee crisis around the world. In the July Climate Summit (read article), there was the suggestion that the war in Syria may have been triggered somewhere by the droughts that came from the extreme climate changes the land has observed. (A comprehensive article from 'The Guardian' here)

Global warming, climate change - we read enough about it these days. But should we begin to worry?

Looks like it. July 2015 was the hottest month of any month ever recorded by any climate monitoring agency (link). A record for the longest underwater dive by a skinny Polar bear in Norway (read), that I thought was a cheerful news story, is actually raising concerns about how the animal has begun to evolve in response to climate changes.

A study suggests that 90% of the extra heat generated is going directly to the oceans affecting marine life and is likely to cost us billions in the near future. Another report says that global warming is likely to affect the Atlantic ocean's circulation system to cause temperature changes (link). While yet another report somewhere else speaks of how food prices would rise due to the shortages created by climate change (read). Closer home, in India we have begun to notice how the seasons seem to be changing. The erratic monsoons causing hundreds of farmer suicides is the current cause of concern.

So why are we all still sitting on our hands? A lack of acceptance. People have quoted studies from here and there to claim that there is no solid evidence regarding the affect of human life on climate change - which is not really true (read article). Another argument is that we cannot accurately suggest the impact of climate change, which is true to a certain extent, but it is utter non-sense to suggest that just because you don't know what a parasite can do, you let it grow within you.

It's time to think about climate change and global warming and take steps to tackle the issue head-on. Not only do we have to prepare for the future, we have to take steps to remedy what has already been done. And these changes start at an individual level, don't need to wait for the laws to change.

Related Links:

1. French Scientists to Study 30,000-Year-Old Virus to Test Global Warming - An article that speaks up of ancient viruses that may be unearthed with global warming melting glaciers 
2. Four unexpected 'upsides' of climate change - An interesting article that shows that some species and some areas have benefited from the climate change effects, suggesting that some deserts may get greener while some forests die out
3. Air Pollution Kills Over 3 Million PeopleWorldwide Every Year

India's newborns - waiting to be saved

An NGO called Spina Bifida Foundation recently launched a campaign called 'Go Folic' to promote the necessity of using folic acid supplements by pregnant women to avoid birth defects in children. According to the NGO's founder trustee, Dr Santosh Karmarkar, “Birth defects are responsible for a greater proportion of infant and childhood mortality in India. Also, the number of infants born with genetic disorders and birth defects in India is highest in the world". Truly, the effort couldn't have come sooner. 

PM Narendra Modi, in his latest 'Mann ki Baat' stated that around 50,000 mothers and 1.3 million newborns die every year in the country during or immediately after child-birth. According to the national health ministry, India's newborn mortality rate stands at 40 per 1,000 live births (2013). Although the numbers have come down between 1990 and 2013, India still accounts for the highest number of newborn and child deaths in the world, followed by Nigeria, Pakistan, China and Congo. (Read full article - Why are so many children dying in India?)

The estimated birth defects prevalence in India varies from 61 to 69.9/1000 live births (data as of Jun'13). A figure which is much more than an unacceptable statistic, because it speaks not only about our country's children but their ability to live their life completely. Key reasons for this are poverty, malnutrition, poor sanitation facilities, illiteracy and inadequate medical facilities.

The Government has launched many programmes to tackle the issue, some have reached the right people, some have not. India has won in its war against polio. We can conquer this malaise too. What is required is awareness of the issue and participation from every citizen towards making India's children healthy. 

Related Links:

India has highest number of under-5 deaths in world: Report

55 per cent babies denied optimal breastfeeding in the firstyear of birth

Why Tamil Nadu is the best state in India for new mothers - Interesting article on Tamil Nadu's initiatives towards maternal care

India and the MDGs

Call to Action Summit 2015

CONGENITAL ANOMALIES: A MAJOR PUBLIC HEALTH ISSUE IN INDIA - A research paper, 2013

Birth defects in India: Hidden truth, need for urgent attention - Article from Indian Journal of Human Genetics, 2013

A look at the NPAs in the Indian Banking Sector

Ok, I agree. When it comes to business news, I find Banking the most attractive segment. But then Banking is the backbone of any financial system. So today when I came across an article on Bank NPAs (Economic Times - informative, must read), decided to take a good look at it.

Source: RBI website (Link: Statistical Tables Relating to Banks in India). Note: Net NPA is Gross NPA less Provisions

The chart above (available only upto 31.03.14) indicates that NPAs have risen by over 36% from 2013 to 2014. Current estimates indicate a figure of 3.1 lac crores, which is an increase of about 17%. Statistically, the NPA growth rate seems to have halved. But these do not include re-structured assets. There is also the early warning indicator category of Special Mention loans (see box), that are not reported by Banks. As per an ICRA report this year, Indian Banks' NPA rate will remain high at about 4% of all advances, 9-10% if we include restructured loans.

That is a good cause for worry, even the Finance Minister agrees with the RBI on this. RBI is investigating a few NPA cases with help from independent audit firms, to check if there has been any laxity on the part of banks in handing out loans. The Debt Recovery Tribunal which was formed for speedy recovery in such cases, is stuck with insufficient manpower and infrastructure. As of 2014, it has 59,645 pending cases worth Rs.3.75 lac crores (Source: Dept. of Financial Services). The Finance Ministry and RBI have stated that bringing down NPAs is one of their major concerns, but seems like the road is long and hard, with many promises to keep, and miles to go before we meet the Basel III norms. {Robert Frost, please forgive me :-P}

Related News links:
Banks see a rise in delayed payments
Jaitley is right, bank NPAs are unacceptably high
Deloitte, KPMG, EY helping RBI in investigation of NPA cases
Raghuram Rajan warns of action against banks hiding true NPA numbers
Pending cases pile up at debt recovery tribunals