Letter for Investors (Hindi)

Letter for Investors

Ten Financial Sins, and how to beat them

Everyone has some financial bad habits or we call them as sins which stops us to be wealthy and financial independent, let us find them out and also the way to comes out of it.

1. GREED

We all want to earn high returns, but understanding the risks is not everyone’s cup of tea. For example: Investing in stocks is risky but can be very rewarding if done carefully and in a disciplined manner. But dabbling in futures and options is usually ruinous for the small investor.

How to beat it

It is better that we should buy equities through mutual funds, if we don’t have much know. Futures and options are not for common investors.

2. FEAR

At one side greed makes investors overlook the risks involved and on the other side fear makes people blind to the opportunities. Fear of losing money makes investors shun the potential of equities and pushes them to buy instruments which offer assured but poor returns.

How to beat it

We should do proper asset allocation based on our financial goals and then stick to it. Historical data has confirmed that periodic rebalancing of the portfolio can yield better returns rather than just sticking to some fix return instruments.

3. ENVY

This is a very common human nature, we get enamoured when we come to know about our family & friends investments and the high returns they earned. And by this we start copying their investments so as to get same benefits.

How to beat it

We should always remember that every person is different so as their needs and investments, Following in somebody else’s footsteps may not always deliver the desired results. Past performance of an investment option is not an assurance of future returns .Investments should be customised to the needs and risk appetite of an individual. What worked for someone in a certain situation may not work for everyone.

4, WASTEFULNESS

In today’s consumerism wasteful spending is a common problem, especially for youngsters. Online shopping has further fuelled this malaise. Young people want to buy the latest gadgets and new apparel, without thinking about it’s the impact on their finances.

How to beat it

If we are earning then we would be spending also but it should be within limits. We can set a budget to ensure that we don’t overspend and stick to it. We can us budgeting apps which can send alerts if we spend beyond a limit on any head.

5. PRIDE

Some time we get emotional to certain investments with a feeling that selling an investment at a loss would make them appear stupid. And then we try to justify that it was a right decision and are willing to hold it till it recoups its losses.

How to beat it

We should never fall in love with our investments It is silly to let our ego define your financial choices. If a stock has no future, dump it and cut the losses. If we continue holding it, the losses will only grow bigger.

6. BLIND FAITH

Sometimes we get into the trap of a smart salesperson who miss-sells financial products for his own benefits/targets as we believe too much on some people and don’t try to find out the nitty-gritties of the products. .

How to beat it

We need to ask questions and do our own research and don’t take a decision in a hurry or because there is a deadline approaching. We should spend some time to compare its features, read up the terms and assess its utility in your portfolio.

7. LUST

The temptation to make easy money can make even smart people part with money or bank/credit card details. Now day’s online frauds are very common; fraudsters cheat people by promising them a huge share in their inheritance, stock tips or bargain offers on their credit cards/insurance policies etc.

How to beat it

Always remember that there are no free lunches in this world and if someone is offering most probably he is a cheat. We should never believe fraudsters who promise money for doing nothing.

8. IMPATIENCE

In today’s world we all want the results at the click of the button. However in the investments time is the key, impatience prevents us from earning high returns. Early withdrawals from the investment kitty cuts down the power of compounding. Selling off a stock or equity fund too soon will help book profits but give us a serious wealth. 

How to beat it

We should invest with a proper plan and time horizon. Don't sell as it has given some profits, Assess the real reasons for selling and Sell only if we need the money or have some better options to reinvest the proceedings.

9. LAZINESS

Procrastination is a common problem and many times we feel that things will get right on its own. However delaying investments can cost a lot. If our money idles in a savings bank account, it loses value. In five years, even a modest 5% inflation will reduce the value of ₹1 lakh to less than ₹78350.

How to beat it

We should start SIPs in mutual funds and sift the extra money from saving accounts to liquid/ultra-short term funds. Now days it’s very easy to invest through online platforms and we can do in automated way. This will ensure that the amount gets invested every month.

10. FORGETFULNESS

It is a very common problem that we forget paying our bills on time which leads to some delay penalty of ₹100-200 to serious penalties running into thousands of rupees. If we miss an EMI or a credit card bill, we will be slapped with interest, late payment charges and also the taxes. But if we miss the tax filing deadline or an insurance premium, it can be in serious issue.

How to beat it

If we can’t remember or disciplined to make payments on time, then we should opt for auto debit facilities offered by most of the billing/credit card companies. We can also put alerts for important dates like insurance premiums and GST/IT returns etc. Just as automating SIPs and recurring deposits ensures that we don’t miss investment targets, putting bills on auto payment mode means you don’t miss payment deadlines.

This Diwali Let’s do something different

Diwali is the festival of lights. We remember Diwali for the gifts, sweets, crackers, new clothes etc.

The five-day Diwali celebrations involves illuminating the household with decorative diyas (oil lamps) or candles, hanging up handmade kandils (lanterns), streamers of fairy lights, grand display of fireworks and crackers to signify the elimination of darkness and movement towards light; hope over despair; good over evil; and knowledge over ignorance.

Many of us look forward to a Diwali bonus normally given by companies besides a salary. This bonus helps in dealing with additional expenses like buying gifts and cooking feasts for loved ones, festive purchases, and meeting your regular. Although as compared earlier times now people keep on buying things regularly however still Diwali has its own importance for purchasing new things. However we should not get into impulsive buying just because there is a offer.

So what should we do to our bonus/extra money this time?

This time let’s invest this money to illuminate our future financial well-being.

However, while investing, we should keep in mind certain essentials:

1. Think and Plan properly before investing

2. Know your own Risk Appetite based on age, goals, income dependents etc.

3. Have Clear Objective and time horizon for investments

4. Understand the Tax Implications

5. Have proper Asset Allocation

6. Invest regularly to get the power of compounding

7. Have Discipline in investments

8. Take an Expert’s Assistance, It actually makes a different.

We should also follow certain don’t while making investments which are

1. Don’t Speculate, It’s dangerous

2. Invest own money, don’t leverage for investing except real estate

3. Don’t use Emergency funds for other purpose they are for emergency only

4. Don’t be emotional with your investment if it is not working then get out of it

5. Review and adjust your portfolio on regular basis

By taking these basic steps and investing surplus money in a prudent way can help us to get our future goals more easily and comfortable.

So this Diwali let's not just spend but also save to celebrate many more Diwalis in future.

Wishing everyonee Happy and Wealthy Diwali

After Body and Mind, Check your Financial Fitness Also

This week Our Prime Minister announced fit India Campaign “Body fit hai toh mind hit hai (If the body is fit, the mind is fit),” said Prime Minister Narendra Modi while launching ‘Fit India Campaign’ on National Sports Day celebrated every year on the birth anniversary of hockey wizard Dhyan Chand. 

In this day and age, tracking our health stats is very important and we all put efforts to make sure that our body is healthy. But what about our financial fitness?

Let us look at major parameters to know how healthy we are financially:

1. Spending Less then Income:

To be financial healthy it is very important that on cash flow basis we are in positive numbers. Means our monthly expenses should be less than our monthly income.

2. Paying all the Bills on time:

There are many utility/household bills like electricity, gas, phone, Credit card bills. Paying all the bills on time and in full is the good indicators of financial fitness.

3. Have Emergency Fund:

There are emergencies which comes without any prior announcements like medical emergency, job loss etc. In general, the more inconsistent our income is and the more dependents we have, the larger an emergency-fund cushion required. As a thumb rule we should have 3-6 months expenses as emergency fund in liquid mutual funds/savings accounts.

4. Have Sustainable EMIs:

Debt-to-income ratio (DTI) is a figure lenders use to gauge how well we manage our debt. To calculate DTI, add up monthly debt payments and then divide the sum by gross monthly income, the lower the DTI, the better it is. It should not be more than 40% in normal case.

5. Have a Good Credit Score:

Similar to a DTI, credit score is another way lenders measure how likely we will be able to repay our loan — and a lower score usually means higher interest rates on everything from mortgage to credit cards. Normally the credit score should be above 750+ in the scale of 900 to get loans easily at decent rates.

6. Have adequate Insurance:

Covering the risk is another important aspect to be healthy. Health Insurance, Life Insurance and Accidental coverage are important insurances. Having appropriate insurance allows individuals to be resilient in the face of unexpected expenses, such as the death of a loved one or a medical emergency. Every person should have appropriate insurance based on his age, income, number of dependents and risk exposure etc.

7. Have Sufficient Retirement Savings:

In today’s world when even government employees don’t have fixed benefits plan it is all more important to have Retirement savings looking at the socio economic structure and inflation. We all need to have sufficient retirement kitty as our longevity of age is also going up.

To keep our mind fit we need to be stress free. Financial wellness is the most important factor to remain stress free hence we all need to ensure that along with our body and mind we are financially fit also.

Even A Credit Score of 800 won’t get you Loan, Do you know Why ?

One of my friends’ younger cousin Sumit who is 26 years old has started working a couple of years back.  He is software engineer and got the job at Hyderabad based IT company. Since he is originally from Mumbai so has to setup his house there and hence brought new furniture for his rented apartment and also brought a Car both on loans to start his new life in this new city. He got the loans easily based on his salary and credit score.

Then, there was a medical emergency in his family as his father was hospitalised and he was forced to apply for another personal loan to help his family with the medical expenses as his parents didn’t have the health insurance. He was sure his loan application would be approved as his credit score was 800+ and he was making timely payment of his education loan and credit card dues and also the recently taken car loan which had helped build a strong credit history. But for his surprise his loan application was rejected.

So what went wrong?

Well a good credit score is a must, but it doesn’t necessarily ensure that your loan application will always be approved.

Lt’s understand what went wrong

Sumit’s total EMI of Rs. 20,000/ - on his net monthly income of Rs. 50,000/- is already 40% of income. Let’s assume his living expenses of Rs 25,000/- after paying the EMI he is left with only Rs. 5000/- . So if he applies for say Rs. 3 lakhs personal loan for 3 years , he will have to pay the  EMI of approx Rs. 10,000/- and hence will be in net negative surplus money at the end of the month. As debt-to income ratio of over 50% made him unworthy of securing further credit, despite him maintaining a good credit score hence lender’s won’t be willing to extend extra loan to him. Further two of his three loans – education and personal loan – being unsecured didn’t help matters either.

So what should a Person do:

In today’s world after Credit Score is available for all the borrowers alongwith that lenders also see certain other things and hence we need to take care of them.

Firstly As a borrower we need to be careful about our cashflows and ensure that total loan to EMI should not be more than 40% of net take home income.

Secondly we should apply for loan only for a genuine purpose which is within our payable capacity.

Thirdly we should not approach multiple lenders at the same time as this could be counterproductive. This phenomenon is called as ‘loan stacking’ where a consumer makes multiple applications with different lenders at the same time in an attempt to get more than one loan before a lender realises that another lender has already given a loan to the applicant.

Fourthly it is better to apply from the same lender specially if you are regular in payments,as he knows you better and can extend extra money based on your past credit behaviour.

Finally use the internet and online options to research about various loan options so as to get a best deal based on your current profile.

Want to live happily and in Abundance: Differentiate between NEED and WANTS

We all want to be wealthy and live happily, but the urge to splurge is something that is the biggest hurdle for long term wealth creation. For our better and secure future we all need to save regularly and enough so that we can live comfortably when we are not earning. The trick to investing, saving money, and reaching your financial goals is to make sure we are wisely balancing our long-term needs and short-term wants to allow us to live well, but frugally, and find joy and satisfaction in life.

So how to differentiate between need and wants?

Double chocolate chip ice cream? It's a food, so can mark it as a need. That designer T-shirt that fits you perfectly? Well, you need more shirts, so why shouldn’t it count as a need, too. Well It's easy to mix up wants and needs, break your budget, and lose sight. So what should we do ?

The basic definition of need is “Something which we have to have”; Like home, food & water(to maintain health), clothes (to remain comfortable and appropriately dressed), Basic health and hygiene items,

Want is “Something which we would like to have”  Everything that goes beyond the things mentioned above like - a big house, name-brand clothes, fancy foods and drinks, and a new car—is a want.

BASIS	NEEDS	WANTS
Meaning	Needs refers to an individual's basic requirement that must be fulfilled, in order to survive.	Wants are described as the goods and services, which an individual like to have, as a part of his caprices.
Nature	Limited	Unlimited
What is it?	Something you must have.	Something you wish to have.
Represents	Necessity	Desire
Survival	Essential	Inessential
Change	May remain constant over time.	May change over time.
Non-fulfillment	May result in onset of disease or even death.	May result in disappointment.

Simply put, needs are the things which are essential for one's survival while wants are those things which make one happy but are not essential for survival.

So to live a rich life first we need to distinguish between needs and wants and second rule is to apply that knowledge in our daily life.

There is one good way to identify need and wants; if we want to buy something take 2-3 weeks’ time before actually buying that item. Over this intervening period, if you are able to carry on with your life comfortably, then the thing you were eyeing was not a 'need' but a 'want'.

Have a budget, and come up with a plan, and act on it. Even if it takes long time, just working toward a goal is empowering. It makes us feel capable, instead of deprived; it makes it easier to tune out all those things we don't need, and it puts ourselves in charge of where we will go next.

Take time to reflect on all the ways that we have been blessed. Then, decide what's really important to, and go after it. Once we become better at differentiating between wants and needs, we will probably see that we have been able to fulfill more of our wants over the years than we realized. And that can be a major turning point.

Lessons to be learnt from the Indian Election 2019

Congratulations to everyone.....

World's largest festival of democracy is over & strongest statesman of the world is at center again- So let’s find out what we can learn from this biggest democratic festival of the word’s

1. When it's about nation: Support the Nation.

2. When it's about army: Support Soldiers, they fight unconditionally.

3. When so many social schemes are on ground: don't say "Kya Kiya".

4. When institutions are working, to hide your inefficiencies: don't blame them.

5. Every success has a very hard work in the back ground. Don’t fall prey in short cuts.

6. A proper machinery, man power, planning and other resources are required. You can’t get a success without all these basics.

7. When democracy is prevailing: don't spoil image of nation on foreign soil.

8. When secularism is prevailing: don't coin word intolerance to appease communities.

9. When nation is rated as emerging global powers: don't say it's fudged analysis by rating agencies.

10. When leader is working with integrity: don't say he is corrupt without any concrete evidence.

11. When positivity prevails: don't spoil your image by talking or supporting negatives.

12. When victory is inevitable: respect the verdict unconditionally.

13. When in debate a friend gets annoyed: wait patiently, better sense will prevail, than leaving him.

14. When some sensitive topic about the history is being discussed, don’t talk casually “Jo Hua So Hua.”

15. Understand what your customers expect from you and Deliver those without demand.

16. This is 21^st Century, Technology plays important role. Do not underestimate the power of Social Media.

Jai Hind. Jai Bharat.

Check your Risk Profile

My Friend Raj is an engineer who is good in saving, He is saving money for past many years, however all his money is going in fixed Deposits. One day while discussing generally, he told me this and I asked him why is he keeping everything in FDs, he replied he is interested to invest in higher yielding comparatively risky investment avenues but he don’t know how much risk he can take and what is suitable option based on his own risk profile that’s why he ended up in FDs.

Well this is a very common thing I heard from many other investors. So the question is how to gauge your risk and then how to match the investment options with the risk profile. So let us simplify the Risk profiling.

1.      Segregate Goals             

Firstly we need to segregate each and every goal based on time and amount required. There could be different goals like next vacation tour in holidays, buying a car or, retirement planning etc.

2.      Setting Time frame        

After segregating the goals we need to setup a time frame for these goals, which will help them decide how much investment risk they can take for better returns. For example vacation holidays could be of short term like next summer season, buying a car may be a target of three years and retirement planning is required for the age of 60. Each goal has certain time line to achieve them.

3.      Choosing the Right Investment option  

Once goals are defined and time frame is fixed. The investment can be made based on the time horizon and fund requirements. Setting a time frame for goals will help to decide how much investment risk can be taken for better returns.

Here we need to understand that some of the investments may give high returns but the returns may be volatile over the short term. Such investments require a sufficiently long investment time frame in which the volatility will smoothen out. On the other hand very safe investment options for long term may not be able to match the return potential from the other investment options.

Sometimes we may be tempted to assign high return investments for their short- term goals if they have fallen behind in terms of the goal amount. But the risk in doing that is we may find that the value of the investments has dropped when the money is actually needed.

While selecting investments based on the time horizon of their goals, we should also remember that a longer investment horizon alone does not make a fundamentally bad investment less risky. We need to select only sound investment options/instruments after evaluating their strengths and features.

By aligning their investments to the goal horizon & time frame we can ensure that the level of risk is appropriate without being too high. This way we can put our savings at risk to earn good returns without putting our financial goals at risk from inadequate funds.

We also need to understand that every person has their own financial goals and risk appetite. While doing risk profiling we need to understand the same before selecting the investment options.

REITs: A New animal In the Investing World

  

What is REIT

Real Estate Investment Trusts (REITs) are similar to a mutual fund wherein investors pool funds which are invested by the sponsor of the scheme into the real estate asset class which acts as the underlying securities. However, the working of a REIT differs a lot. During the launch offer, an investor may buy REIT units which can then be traded on the stock exchanges and thus ensure liquidity. As per the rules, the minimum allotment will be in multiple of one lot each consisting of 100 units and after listing trading will be in multiple of one lot. The REIT shall issue units only in dematerialized form to all the investors.

The minimum subscription amount in REIT has now been reduced from the earlier limit of Rs 2 lakh to Rs 50,000.

India’s first REIT

The first REIT IPO by Embassy Office Parks, a Bangalore-based real estate developer backed by Blackstone Group LP, a global private equity firm, was open for investment between March 18 and 20, 2019. The Embassy Office Parks REIT raised ₹4,570 crore through the IPO. The per unit price of the REIT has been kept in the range of ₹299-300, with the minimum application bid of 800 units. This means that an investor will have to invest at least ₹2.4 lakh in this product. Thereafter, one can increase the lot size in multiples of 400 units. As on 26th April'19 closing price of it was Rs. 327 per unit.

Where it invests

As per SEBI guidelines,  REIT shall hold at least two projects, directly or through SPV, with not more than sixty per cent of the value of the assets, proportionately on a consolidated basis, in one project. Further not less than 75 per cent of the revenues of the REIT and the SPV, other than gains arising from sale of properties, shall be, at all times, from rental, leasing and letting real estate assets or any other income incidental to the leasing of such assets.

The investment can be made in under-construction properties, ‘completed and not rent generating’ properties subject to caps and conditions. REIT is also allowed to invest in listed or unlisted debt of companies or body corporate in real estate sector, mortgage backed securities, equity shares of listed companies, money market instruments and government securities amongst others.

Expected Returns from REITs

As per guidelines minimum 90% of net distributable cash flows of the SPV shall be distributed to the REIT. Further, not less than 90% of net distributable cash flows of the REIT shall be distributed to the unit holders; and any such distributions shall be declared and made at least once every six months in every financial year.

As a REIT investor, the earnings may be in the form of regular income and capital appreciation, if any. In Indian scenario, most industry experts expect return of about 8-12% percent from the REITs.

How REITs are taxed

How the income gets taxed in your hands depends on whether your REIT is passing it off as a dividend income or rental income.

Scenario 1:  If it’s the rental income that it is passing on- which would mostly be the case since REITs are meant to pass on at least 90% of its rental income, then it will be added to your overall income and get taxed at your income-tax rates. In this case REIT will deduct a tax at 10% (TDS) for resident investors and at rates in force (40%, at present) for non-resident investors

Scenario 2: If the income distribution is in the nature of a dividend, then there won’t be any dividend distribution tax or any tax in the hands of unitholders.

Capital Gain Tax:

If you sell your REIT units on the stock exchange after three years, you will need to pay a capital gains tax at 10% (plus applicable surcharge and cess). If you sell your REIT units within three years, a short-term capital gains tax of 15% (plus applicable surcharge and cess) will be imposed.

Things to look beyond

·     Returns can’t be very high as dividend yield might be between 6.5 and 8 percent. Even the capital appreciation can also be limited to single-digit.

·     Another concern is over the liquidity of these instruments. As REIT is a new product and it takes time to catch up. Hence there may be low liquidity in the secondary markets.

·       REITs are best considered as a means to diversify your portfolio across asset classes than for earning higher returns.

And Finally:

Real estate has always been considered an illiquid and a big-ticket investment. REITs provide an opportunity to diversify across real estate as an asset class. REITs are primarily a hybrid investment seeking capital appreciation and even income (rent) from the underlying securities of the sponsor. With twin benefits of REIT and the rules in place, one should expect the REIT to provide a new investment option to the Indian investors.

Elections and The Market

Every time when the elections are nearby, most of the people get worried about who will come to power, what will happen to the market and economies and my investment? This is a very common worry, as everyone wants certainty and clarity whereas elections are most of the time un-predictable.

Market do have impact by the Election results which can been seen by the previous occasions. In 2004 when the BJP-led NDA coalition lost the elections in a shock result, the BSE-30 Index collapsed from 5,358 on May 12, 2004 to 4,961 on May 21, 2004, a loss of -7.4 % in 7 days. When the UPA-2 was re-elected by a wider-than-expected majority in the May, 2009 elections the stock markets surged by +17.2% in one day on May 18, 2009. Trading was halted three times that day as the market hit 3 upper-limit circuit breakers during that truncated trading day. There was less than 90 seconds of actual trading on that day!

But do the Elections results have deeper, long term impact?  History shows that discussion on election results is a great conversation starter but it does not have long lasting impact on our investments! As the heat and dust on election campaign settles down and a new government comes into a picture and slowly starts working for long term policies, the market also settles down.

If we analyse economic growth since 1980, i.e. last 39 years the average real GDP growth was above 6%. In single party rules (all of Congress), for 1980-84 it was 5.9%, 1984-89 it was 5.4% and for 1991-96 it was 5.2%. On the other hand in co-coalition government of 1996-98 (Devegowda & I K Gujaral) & 1998-99 (Bajpayee Govt) actually it was higher at 6.1% & 6.7% respectively. Further in UPA-I the growth was 8.5% while in UPA-II it went down to 6.6%. For current NDA govt. the growth is 7.4% (based on new data series.

What it shows is that the coalition government has actually given better growth compared to single party government. Although it is not necessary, but what it means is that GDP growth depends on various factors and even a coalition govt can also deliver better results.

To summarise:

·        Elections don’t really matter over a longer period, India’s economy will grow.

·        Having a coalition government  can be even better sometimes than having a single-party government!

·       The rate of growth depends on various factors.

·     India growth story may remain intact as India is the domestic consumption based economy with 1.3 billion people who are going to add to the economy.  

So what should we do in this scenario?

Scenario 1 – If we believe that a BJP-led coalition will come to power;

Then we should increase allocation to equities to 60-70% and remaining amount can be split in gold and liquid funds.

Scenario 2 – If we believe that a Congress-led coalition will come to power;

Then we may continue with equities to 50-60% and remaining amount can be split in gold 20-25% and liquid funds 10-20%.

Scenario 3 – If we believe that some third party-led coalition will come to power;

Keep the equity exposure below 50% and remaining amount can be split in gold 25% and liquid funds 10-20%.

Please note that above mentioned portfolio allocation is a general advice and should not be considered as investment advice/recommendation, reader should consult their own financial advisor before taking any decisions.

HOLI: Various Colours of Life

Holi is the festival of colours. Colours are very important in life; they make the things beautiful and vibrant. Without colours life is like black & white TV of 80s. Every colour has its own aroma and importance. Let’s understand what they indicate and how it impacts our lives.

Black

Black is the colour of power, elegance, formality, death, evil, and mystery. It is associated with fear and the unknown (black holes). It also has a negative connotation (blacklist, black humour, 'black death'). However Black is also the signature colour of sophistication & royalty (the black party-wear), it dominates high-end makeup packaging and can even make inexpensive blushes and lipsticks seem more upscale.

White

White is associated with light, goodness, innocence, purity, safety, purity, cleanliness and virginity. It is considered to be the colour of perfection. As opposed to black, white usually has a positive connotation. In branding, white suggests simplicity and purity. (Seventy-five percent of top skin-care brands are packaged in white.) It also stands for modernity and honesty, which may be why Apple swears by it.

Red

Red is the colour of fire and blood, energy, war, danger, strength, power. This colour also shows the determination as well as passion, love and desire. Red is a very emotionally intense colour. It enhances human metabolism, increases respiration rate, and raises blood pressure. Although plenty of shops embrace this colour (and still find financial success), market experts warn that, just like a stop sign, a red placard can make consumers hit the brakes. It serves as an alarm, triggering a more careful consideration of our outlays.

Orange

This colour is associated with joy, sunshine, and the tropics. Orange represents enthusiasm, fascination, happiness, creativity, determination, attraction, success, encouragement and stimulation. To the human eye, orange is a very hot colour, so it gives the sensation of heat. Nevertheless, orange is not as aggressive as red. This colour is associated with equality and affordability, which is why we’ll find it at stores offering good value, like Big bazaar etc.

Pink

Pink, a delicate colour that means sweet, cute, romantic, nice, playful, charming, feminine, and tenderness, We see this colour with, flowers, babies, little girls, cotton candy, and sweetness. Pink is the colour of universal love of oneself and of others. This is the favourite colour of ladies especially the young girls.  It has calming effects, seeing pink slows people’s endocrine systems and tranquilizes tense muscles. How that might influence your wallet: Feeling relaxed may make it less painful to part with cash.

Green

Green is the colour of life. It represents renewal, nature, energy and is associated with meanings of growth, harmony, freshness, safety, fertility, and environment. Green is also traditionally associated with money, finances, banking, ambition, greed & jealousy. This is the colour of people who have eco-friendly and environment preservation in mind. Shoppers keep this colour to impress eco-minded clients.

Blue

Almost everyone (especially men) likes blue. Blue is the colour of the sky and sea. It is often associated with depth and stability. It symbolizes trust, loyalty, wisdom, confidence, intelligence, faith, truth, and heaven. Blue is considered beneficial to the mind and body. It slows human metabolism and produces a calming effect. No wonder it signifies trust and dependability and is a favourite logo colour for financial institutions to assure its customers for safety. Blue also improves customer loyalty: As per one Research Patrons are more likely to return to stores with blue colour schemes than to those with orange colour schemes.

Purple

Purple combines the calm stability of blue and the fierce energy of red. This colour is often associated with royalty, nobility, luxury, power, and ambition. Purple also represents meanings of wealth, extravagance, creativity, wisdom, dignity, grandeur, devotion, peace, pride, mystery, independence, and magic. Purple reigns in the beauty industry, especially in the category of anti-aging products. When people see it, they think of royalty. Consequently, a purple box may help persuade us that the product has special properties and is worth a princely sum.

Burgundy

Burgundy is a deep shade of red. It is named after Burgundy wine. This wine is named after the Burgundy region of France. This colour reminds us of all things rich and refined (just like red wine), so don’t be surprised if a dress in this colour costs more than a white one in a similar style. Its prismatic cousin, brown, has similar connotations of luxury.

Yellow

This is the colour of joy, happiness, intellect, and energy. Yellow produces a warming effect, arouses cheerfulness, stimulates mental activity, and generates muscle energy. Yellow is often associated with food. Bright, pure yellow is an attention getter, which is the reason taxicabs are painted this colour. A mainstay at fast-food restaurants, yellow evokes energy and increases appetite, perhaps explaining why your stomach may start to growl when you pass those golden arches.

As we can see that different colours have their own importance and impacts on our life, so next time when we are choosing something we can keep this in mind to have right impact for the same.