Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts

Thursday, March 07, 2013

a tough act


Ever since we took up a major research exercise last year, we have been screaming hoarse about the need to simplify the jargon associated with finance in general and broking in particular. A large number of people want to invest and a large number open their trading account, but you see a large amount of dormancy within the system. The reason is simple – the whole environment is far too intimidating. Way too much rubbish is used for a lot of the names. The money you give a broker to carry out transactions is called ‘margin’, then there is the ‘ledger’ and ‘payout’ is done on a ‘T+2 basis’ after which the shares hit your ‘demat’ account and of course  there is the ‘bid and ask’ as well as ‘spread’, ‘impact cost’, ‘PE multiples’ available. All this is scary especially when you are looking to invest money in bid to exercise control over your destiny. Basically the poor soul feels constrained and helpless when trying to invest in shares.
But no one seems to be listening. You will find even more incomprehensible offers with thousands of lines of fine print for everything and the dice firmly loaded against you. In the back drop of all this is the Union Budget. You have the jamboree every Feb end where the finance minister gets up and presents what is essentially a nonevent. But the TV channels have managed to hype it and create enough buzz so as to charge astronomical premiums for advertisers and attract eyeballs. No one understands jack of what is presented and no one understands jack of the impact of these proposals. Key terms are misunderstood and people are watching in a bid to see where the markets react to the whole charade.
So in light of all that we decided to set up a micro site called budget simplified. Among other stuff we decided to shoot videos explaining the budget to the common person. What is it and what does one look for in the budget. Short two minute videos that give a fair idea into the whole process. Having less money we decided that I would be the model for the videos. Nine videos should be easy enough. One day shoot and we wrap it up. Boy I was wrong. One shoot it was but the videos were bloody difficult to shoot. One is at first pretty stiff in front of the cameras. It takes time to get a bit lose and to free up. At first the lights and the focus is a bit intimidating but over the day it worked out pretty fine. The other problem is the energy level. One has to maintain an energy level through the day. You have to perform at higher degrees of energy every time you are in front of the camera. Afternoon was tough for me. It showed on the screen. One can actually feel it when the cinematographer tells you that “sir, energy nahi aa raha hai performance mein.” Yes of course. I had to actually pull off reserve energy form the system to give a ‘performance’. Wow. It’s a tough job. I now have new found respect for models and actors and have a small insight into how they must be going about their everyday life. I did not have the additional burden of trying to look good. Those guys need to manage that as well through the day. And the stakes are ridiculously high for them and everyone. Here I was the boss on the set, so everyone was forced to be patient with me and I could modify the lines as I saw fit as I was the quasi script writer as well. Imagine if you are getting paid for this and your opinion on script counts for jack. Wow. Running around trees can also be stressful. Nevertheless, at end of it, the videos did come out pretty cool and I did manage to remain standing. Here are the videos.
They are pretty simple explanations for a lot of the stuff. If finance or economics hold no interest for you, you have bets leave these videos unwatched, but if you have even a passing interest in these topics then you may find the same quite interesting and educative. We have tried to keep things at a very simplistic level and repeated a lot of the concepts. Have fun and let me know.

Friday, February 26, 2010

budget blues

Today is the day for the annual finance jamboree. The day the finance minister of India announces his budget. Me and budget go back a long way. All self respecting gujjus would follow the budget. My first memories of the budget was following it on DD news where the highlights would be telecast. I remember the then finance minister VP Singh under the Rajiv Gandhi government talking about lowering taxes. That created quite a flutter and I remember asking my dad what the hullabaloo was all about. What on earth was a budget? I remember dad explaining me its significance. Since it was VP Singh I remember, a quick Google search dates that to around 1984 to 87. Indoctrination at age around 12 is good gujju legacy. Of course post that the budget and of course the finance minister got rock star status, thanks to Manmohan Singh. The live telecasts and people huddling around to watch what on earth was going to be presented. If I am not mistaken it used to be presented in the evenings (an old Raj legacy) and the stock market would have special sessions timed to coincide with the budget. Over the years it has become lesser and lesser of an event with few surprises and a whole host of policy decisions being taken outside of it.
Also one another thing I remember was that in the good old days, prices would always rise after the budget. I think it was obligatory for the FM to raise taxes on soaps and shampoos and other such stuff. There used to be a huge round of pre budget buying by people in an effort to beat the budget blues. We never did really indulge in it. Till I remember one day mom and dad coming in with a whole host of goodies from Shakari Bhandhar. They had gone shopping and dad used the budget ruse to buy stuff just before the budget was announced. That year Manmohan Singh did a complete U turn and started dropping taxes introducing a more benign taxation scheme, thwarting all efforts of my Dad at beating the blue. Hehehe.