Saluting Sachin

1973 was the year when God was born to play cricket. 1989, he made his international debut.  In the year 2011, he won the ultimate prize (World Cup) and 2013 is when he decided to retire. Sachin's journey can be described in such simple sentences. For many of us, referring to him as God seems to be a exaggeration but careful observation of what he has achieved leaves no doubt about the title given to him. Between 1989 and 2013,the game of Cricket witnessed a man whose desire to play,hunger to succeed,ability to carry the hope and expectation of fans were second to none and might remain unmatched for a long time to come. 

1989 was truly a remarkable year. Our arch rivals saw the emergence of  Waqar Younis who went on to become one of the great fast bowlers to have played the game. Germany witnessed the collapse of the Berlin wall. Graham Gooch  took over the England captaincy. It was the month of November when Sachin made his  test debut in Karachi. Remarkably, he made his ODI debut the next month without scoring a run against Pakistan. Little did we know that the 16 year old would go on to become a legend. 

No cricketer has been venerated in his own country like Sachin. No one has broken as many records: most test appearances, most runs,most centuries - records that are hard to imagine being surpassed. His longevity is as admiring as the technical purity of his batsmanship. He played with style and panache and dominated bowlers at will. As Saurav Ganguly rightly mentions, it is important to realize what Sachin has done with the talent at his disposal. Playing at the highest level for so many years requires a lot of discipline and dedication.

From the century at Perth to the mesmerizing innings he played at Sharjah,he never failed to thrill us.Great players from past & present have saluted him. The entire nation has celebrated his success and stood by him during failures. 

Tomorrow might just be the last day we see Sachin Tendulkar on the cricket ground playing test cricket for India. I felt numb reading his retirement announcement. We all knew that it was coming and yet everything stopped for a moment. It's hard to imagine an Indian team without him. A walk down the memory lane brings back so many memories and those innumerable occasions when I tried to emulate his stance when batting.Anyone who has played the game at some level or the other will realize how lucky they have been to watch him play.He has been an omnipresence and cricket without him is hard to imagine. It will take some time to get used to the fact that Sachin won't come out to bat again. 

We will miss you Sachin!  

A day outside the city

The opportunity to spend a day at a village is something unique for any city dweller. The calm and soothing environment coupled with the absence of usual hustle and bustle of a normal urban day is something which we crave for. A recent trip to such a place gave me the chance to observe a lot of things which I never managed to identify before. 

About 20 Km from the outer limit of Pune towards Lavale, few small villages are situated. The fact that they are located right at the foothills of the beautiful western ghats makes them scenic. Taking a diversion off the highway, a well constructed road led us to this village. On the way, there were green fields on both sides with the hills at the background. A bit more careful observation and we managed to see a lot of varieties of flowers. The area is known for its horticulture. A drive of another 30 minutes through the beautiful fields and we reached the village. A pair of cows on one side and 2 more buffaloes around 500 meters away greeted us. Welcome to the heart of India! 

At the centre of this place stood an almost dilapidated building which was the main business center. A bank, local panchayat office, a small doctor's clinic was situated in it. Just outside the building, a small shop under the shade of a tree was selling paan,cigarette(No standard brands). A look around and  I observed few old men wearing the traditional marathi attire seating at one corner, some school children riding their bicycles, a farmer in the middle of the field situated behind the building. The calm surroundings, the leisurely pace with which life was moving around me was captivating. After completing our work, we were taken to a place for our lunch. This place was situated at an higher altitude and the short journey left me in awe of nature. It was a 4 Km journey with a series of mild crest n troughs through the hills. The weather was cloudy and it accompanied slight drizzle at times and the presence of  vast expanse of fields which were close to their scenic best after embracing the onset of the monsoons made the journey memorable. 

As we had our lunch with a clear view of the beautiful valley in front of us, I paused for a moment and tried to admire the powers of the creators of this beautiful world. 

Spain's footballing eloquence is a thing of beauty

We are hours away from the final of Euro 2012 between Spain & Italy and there seems to be a growing concern against the style of football exhibited by the Spanish team. They say beauty is in the eye of the beholder. It would be naive on my part to dismiss those who think Spain are boring. It is prudent though to explain why terming Spain boring is not so correct. 

To begin with, the game is played with a football. Without it you can't really do anything. Imagine being all dressed up and ready to go out to play only to find yourself against a team who simply won’t give you the ball. You can't stop the game, you can't complain to the referee that you are not getting the ball. What do you do? You tell yourself that no matter what happens we need to get the ball and play some football (You came all dressed up in those cool jerseys and fabulous studs for that isn’t it?). If you have ever played football, it’s hard to say that holding the ball as well as Spain is boring. 

Fabregas has been used as false nine during the course of this tournament. It is indeed frustrating at times to see Spain play without a striker up front but please keep in mind that their all time leading goal scorer David Villa is missing and their next best striker Fernando Torres is nowhere close to the 'El Nino' we all knew during his Liverpool days. What do Del Bosque do in such a situation? In Fabregas,Iniesta,Xavi,Silva,Xabi he has midfielders who can all score. Ramos is a genuine threat from set pieces too. Hence, he opts to play Fabregas in that role and change the system when the situation demands by bringing in the ever improving Pedro and Navas. It is also important to realize that Fabregas is no Messi. He himself has gone on record to state the same. What makes Barcelona such a lethal force is the presence of the Argentinian and his own individual skills. Another important factor is to understand that Puyol is missing too. His absence has led to Ramos switching from his usual RB position to a central defender. That has dramatically reduced the adventurism on the right side whenever Spain attack.Alvaro Arbeloa is easily their weakest link. Those who have seen Barcelona can easily understand the sheer difference Dani Alves makes with those darting runs from the right. This is all w.r.t Spain's tactical changes.

Opta Sports came up with this interesting stat - '58 - Number of passes per shot made by Spain at Euro 2012 compared to 44 at the 2010 World Cup and 33 at Euro 2008.' Some interpret it as a further proof of them being 'boring'. There are primarily 3 reasons which can be attributed to this stat most important being the way opponents play against Spain. They have become aware that getting the ball back and holding it is a difficult task and hence it is futile to match Spain in their own game. The way out is to defend, defend and defend. In a recent friendly, England did that to Spain(Please watch that game if you want to see something boring) and managed to win which surely was a catalyst to all those people who believe in such a sterile strategy. The other reason is the fact that holding the ball, passing opponents to death was always their strategy. Each time you take a shot, you are giving your opponents a chance to get the ball back. To reduce that probability, they are holding the ball for even longer before taking a shot. The third reason which is an obvious one is the impact of missing David Villa and an off form Torres. Strikers are meant to score goals and at this moment Spain are missing a quality striker. It is a matter of debate as to which is the most important reason amongst these three.  Spain being boring will be like a silent buzz which will continue to exist till they dominate.  To me, victory for Spain will be ideal as it will be perfect for the beautiful game. It will also make us believe that this game is not about being physically imperious. The likes of Xavi,Iniesta,Silva are players who will continue to inspire a lot of talents around the world who just wants to play the game without bothering about 6ft plus physiques they are not bestowed with.

Tonight's final will be a contest between the midfield of two teams. We are fans of Xavi n Co and Xavi is an admirer of Pirlo. That gives us an idea of what Andrea Pirlo is all about. His pairing with De Rossi is a dangerous one and could easily hurt Spain. I see an exciting final ahead and looking forward to a Spanish victory. 

Vamos Espana!

Basics of Mutual Funds- Part Two

AMFI

Association of Mutual Funds in India is the industry association for Mutual Funds. It was established in 1995. They promote the interest of Mutual Funds, educate investors, represent the industry in interactions with regulators like SEBI/RBI.

What is a SIP?

This is a term we have often hear during our interactions with financial agents. Systematic Investment Plan(SIP) is a mode of investment. It is not a scheme. It is not a specific investment product. In SIP, investors are encouraged to invest small amount in a regular interval for a particular time duration. In other words, usually we think of buying a Mutual Fund by investing a lump sum amount(Say 10,000 INR). If we instead opt for SIP, we can invest small amount(1000 INR) regularly(Every Month) for a year. This reduces investors burden of parting with a big amount at one shot. More importantly, in a volatile market SIP helps in averaging your investment thereby reducing your exposure to loss.

What is a STP?

If an investor opts for SIP, his money usually moves out of his savings account on a particular day of the month. For example, if I decide to start a SIP of 5000/month and declare my SIP date to be 25th of each month, the amount is deducted on 25th from my account. This leads to a situation that the 5k earns the savings account interest from 1-24th day. Usually that interest is around 3.5%. The investor can instead put this amount in a Liquid Mutual fund and for the same period earn higher interests. Liquid funds do not have any entry/exit loads. They have minimal risk. This efficient switch from a Liquid fund to a SIP plan thereby making your money work more effectively is known as Systematic Transfer Plan(STP).

Please note that the recent changes allowing banks to have flexible savings account interest might reduce the ROI gap between Liquid funds and Savings bank account.

What is SWP?

A Systematic Withdrawal Plan works a bit differently. Here the investors invests a lump sum amount in the beginning and withdraws some money regularly over a period of time. For example, an investor puts in 20,00,000 INR. He is aged 60 yrs. He wants to withdraw 1 lac per annum which is around 8.3K per month. In SWP, he gets the provision to do that. In addition to that, it is expected that his initial principal amount will grow over time and hence he also gets the option to either get that extra amount on a monthly basis or withdraw the same amount(8.3K) for a longer duration.

Different Options of Investing in a Mutual Fund

An investor can choose primarily three different options to invest in a Mutual fund. It can be decided by the objective of the investment, the age of the investor etc.

a) Growth Option: In this option, the interest gained on the principal amount is not withdrawn. Instead it is reinvested. For example, if an investor has invested 10k and the scheme delivers a return of 10%. The 1K in interest is not taken out by the investor. It is reinvested.

b) Dividend Payout Option: In this case, 1k is paid to the investor as dividend. Assuming NAV at the time of purchasing was 10. A 10% return meant a NAV increase to 11. However, as the dividend is paid out, the NAV falls back to 10.

c) Dividend Reinvestment Option: In this case, the Dividend is invested back and the investor gets additional units (1000/10=100 units).

Is is important to note that all three options will end up giving the same amount of returns.

Taxation

Equity Mutual Funds have various advantages when it comes to Taxation. If a Mutual Fund is held for a period of more than 1 year, no tax is charged on the income amount. There is no tax on dividend distributed by equity mutual funds. ELSS funds allows an investor to get tax exemption under Sec 80C at the time of investment. However, any redemption of equity funds before one year is taxable. For Debt Funds, the tax structure is different.

The world of Mutual Fund is interesting and vast. There are lots of concepts and there is a lot of room for innovation. Its a thriving industry. It is also true that Equity Funds in particular are risky as they are very closely linked with the stock markets.

To summarize, Mutual Funds are a must for every investor. A young working professional should be having a majority of his/her portfolio in MF while a middle aged person can have a balanced outlook. SWPs are a good option for people who retire from their jobs. ELSS is a good way to claim tax exemption. A lot of good sites are available where one can learn as well as compare funds.

Happy Investing!

Basics of Mutual Funds- Part One

The Mutual Fund industry is growing at a spectacular rate ever since its inception. All of us have heard about this investment instrument and have exposure to it at different levels. I have tried to present a brief overview of my understanding of Mutual funds here.

To begin with, Mutual Fund(s) are just another mode of investment. An investor chooses to put his hard earned money in them with the expectation of getting a good return on investment(ROI). As a concept it is nothing different form other investment avenues and works on the same principles.

Mutual Fund structure in India

MF primarily follows a 3 tier structure. The Sponsor(1st Tier) is the one who decides to launch a fund. In order to do that he needs to set up a Trust(2nd Tier). A group of members called the Trustees are authorized to act on behalf of the Trust.Once the Trust is registered with SEBI(Securities and Exchange Board of India), it is known as the Mutual Fund. The AMC(Asset Management Company-3rd Tier) manages investors money and looks after the mutual fund.

What is the primary source of information about a Mutual Fund?

At the time of creation of a new Mutual Fund, the AMC present a Draft Offer document to SEBI. Upon approval, this document becomes the Offer Document(OD). It is the most comprehensive source of information. An investor has the right to get this document. He can always ask for it. The Key Information Memorandum(KIM) is another document which is provided to investors by default.

What is a NFO?

We have often come across this term. A New Fund Offering is nothing but the launch of a new mutual fund. During a NFO, the AMC invites investors to put their money into the scheme by subscribing to units. There can be close ended funds or open ended funds. In case of a close ended fund, an investor can only put his money during the NFO. For an open ended fund, an investor can enter the scheme at any given point of time.

What are Equity Funds?

Every company listed on the stock exchange issues shares which investors can buy. These shares are known as Equity shares. Equity Funds are a class of Mutual Funds which primarily invests in equity shares of companies. 40% of the MF industry is composed of certain funds. They are often termed as High Risk,High Return funds. It must be kept in mind that a high return is not guaranteed. Since they have maximum exposure to the stock market, there is no guarantee of positive returns. There are various sub groups of Equity funds:

a) Index Funds : They invest in stocks comprising indices like BSE 30,Nifty 50. Their target is to mirror their respective index movement. They never try to beat the index returns.Amongst equity funds, they are considered to be the safest.

b)Diversified Large Cap Funds: Funds which invests only in large cap stocks. A stock with a high market capitalization is usually termed as a Large cap stock. These funds invest in such stocks across sectors(industries)and hence called Diversified.

On similar lines, there are Mid Cap funds and Sectoral Funds.

What is P/E ratio?

It is one of the fundamental formula to analyze a stock. Price to earning ratio is nothing but Current Market Price(CMP) of the stock to its earning per share(EPS). If a company A issues 100 shares and its profit is 1000 crores, then the EPS is 1000/100=10. Let's say A's CMP is 150. It's P/E ratio will come out to be 150/10=15X(15 times). Hence we can say that the price of the company is 15 times its earning per share. It is usually said that a lower P/E ratio indicates that the stock has good upside potential.

What are ELSS funds?

Equity Linked Saving Schemes are another class of Mutual Funds. It is particularly beneficial for salaried professionals like us who can invest in these schemes and get tax exemption under Sec 80C. They come with a lock in period of 3 years which means an investor can't exit from the fund before 3 years.

What is Entry Load and Exit Load?

They are expenses linked with a mutual fund. An entry load is usually charged to an investor at the time of entering a fund. An exit load is charged during redemption of units. As per new regulations, entry loads are not relevant anymore. If an investor redeems after holding mutual fund units for over a year, no exit load is charged.

What is an Expense Ratio?

It is a very important ratio to determine the expenses of the mutual fund. It is defined as the ratio of expenses incurred to average weekly net assets. A low expense ratio indicates a better managed mutual fund.

To Be Contd....

The White House on the Sky

Times Of India today reported that Vijay Mallya's future home is under construction and it is known as the White House. He is not only a successful businessman but flamboyant too and with this latest venture he will join a very select group of people who take pride in building a residence which becomes a showpiece.

As common people, there is nothing much we can say about it apart from wondering how captivating the house would be when completed. Perhaps few of us would question the timing of it. Is this the house in making of a businessman whose empire is marching ahead or is this the house of a stuttering empire? Will his liquor business make up for the losses in other areas or has he lost the plot? Is investing in the English premier league another avenue which he would like to explore? Also, is it time our super rich honchos give a deeper thought on giving back something to the society by establishing foundations/charities? Nevertheless, one thing which can be taken for granted that Vijay Mallya's new abode would surely compete with the recently concluded Antilla.

Sit back and get ready to witness another famous address on Bangalore's streets!

Liverpool FC - Walking down the memory lane!

A brief rewind to how it all started ahead of the weekend clash

It all started back in 1998. France 98 was underway. I was excited about watching England against Argentina. During the Euro 96, i heard from Dad that lot of english fans jumped into the English channel following their defeat to Germany. I was supporting Argentina(I have always been their fan). That night England went out in a painful way, something which has become synonymous with them in every major tournament since then. I was ecstatic with Argentina's progress but that was short lived as they lost to Holland subsequently. That night another very important event took place. The emergence of 18 year old prodigy Micheal Owen. I was in awe of his goal against Argentina. Following the World Cup, the football fever died down. Those days, the premier league was nowhere as famous like today. But, France 98 ignited my passion for the game. Luckily for me, that was the time when a lot of my school mates switched from playing cricket to football. I started playing and off the field started following the game. Micheal Owen led me to Liverpool Football club. Thanks to my decent knowledge about countries, i knew where the city was situated. I saw 'Carlsberg' written on their shirt and on the first few occasions, i used to search for Micheal Own whenever their matches was shown. I find it a bit naive to concentrate on individuals rather than a team but growing up in an era when Sachin Tendulkar was another name for Indian cricket team, it was difficult to develop a different mindset. But with each passing game, i started following the club more. I started learning about the other players. The french manager(Gerrard Houllier) with his scarf around his neck attracted my attention. I started understanding that this guy can decide whether to play my idol Micheal Owen or not. He calls the shot.He is the manager.Slowly but surely, Liverpool football club became larger than Owen. When he finally left for Real Madrid, the pain was evident but the understanding that LFC is an institution and it can survive and make many such Micheal Owens acted as a pain killer.

Fast forward to 2011. A lot has happened since those early days. I can possibly write a book expressing all my thoughts about this journey of being a Liverpool fan! Tomorrow Liverpool meet their biggest rivals again. I would not like to mention United too much but keeping aside all our rivalries, it has to be said that they are setting the benchmark of English football at present.

As expected, the build up to this game is always huge. I start searching for articles in UK sport websites a week prior to this fixture. This time it has been no different. Blogs,forums experience a lot of activity leading up to the game. Once can easily feel the excitement around. A lot has changed from those early years. Presence of supporter's group in all leading cities, screening of matches in major pubs, getting to know fellow fans etc all add up to the spice. I like reading a lot of articles by well known sport journalists.The press conferences, the player interviews, expert comments and loads of discussions just magnifies the importance of this game. The day before the game, i keep thinking about it. In the middle of my work, a sudden realization of the match looming large makes me feel excited. Its like one of those moments which you would be desperately looking forward to. On the morning of the matchday, the moment i wake up the thought of watching the match crosses my mind. I tell myself that its a special day. I frequently engage in short and crisp discussion with God, almost negotiating with him for a LFC victory. Finally when the match starts, its all high voltage action from then on. 90 minutes of pure emotion,passion and excitement follows.

The match tomorrow is as important as ever.If we win tomorrow, we will be only 3 points apart from the league leaders and with United meeting Manchester City next week, we can hope to close that gap further. A loss on the other hand would be deflating but as they say, winning is a mentality and when that sets in, there is no room for defeat. Hoping for a 3-1 win tomorrow !! YNWA!

A drive through the Western Ghats

Geography used to be one of my favorite subjects back in school. The countries and their capitals, the mountain ranges, the grasslands etc used to fascinate me. Reading about them was always incomplete without actually me dreaming about ex-

-periencing the wonders in reality. One such amazing creation of nature are the Western Ghats.

India as we all know is bestowed with natural beauty in abundance and the Western Ghats epitomizes that. During the recently concluded monsoon season here in Pune, I went on two long trips to places on the other side of the ghats. As expected, the majority of the route was through the highlands cutting across one hill after another. Before we started our journey, we were hoping to see some of the most amazing greenery and innumerable falls along the way. We were not dissapointed.

It all started with a wake up call early in the morning. The sun was yet to rise, the birds were yet to come out, I found myself in a hurry to get ready and start by the break of dawn. A 450KM long journey via the smooth and silky Pune-Bangalore expressway and then the breathtaking hills awaited. After all the preparations we were on our way hitting the highway in about 30 minutes. Just on the outskirts of Pune, Katraj ghat awaited us. The approach to the hill was just a prelude to what we would be experiencing at numerous other places later. Fresh air,greenery all around, lush green plains looking as if mother nature has painted them green. Combined with the morning breeze, the experience was simply breathtaking. After crossing the ghat, we were on the highway. I stepped on the accelerator and in no time we were galloping our way towards our destination. The Western Ghats beckoned.

Any journey is incomplete without a midway halt for food and it becomes even more exciting if the food is home made. Since we had no problem with the availability of what we were going to eat, my idea was to stop at such a place where eating would be a new experience and we did find such a place. It was a picturesque site. The place was on the foothills of the first ghat we were suppose to cross. The road was surrounded with identical trees on both sides. On the left side, there was a small stream which was flowing. The sound of the water gushing down was exhilarating. This was the perfect place to stop. The beauty of the place was magnificent and it got better when a light drizzle started. The fog around added to the charm. We finished just in time to resume our journey.

As moved closer to the hills, the temperature began to drop, the breeze became cooler, a villager wrapped in a shawl walking on one side of the road with his cattle and the picturesque backdrop was soothing to our eyes tired of urban chaos. The zig zag of the mountains started and the sharp bends and slopes demanded careful attention while driving. Stretches covered with dense blanket of trees to sudden appearance of majestic waterfalls made the journey awe inspiring. I have been to hills stations before and enjoyed the hilly roads but this was something different. Driving through the roads, experiencing the beauty and at the same time watching out for the terrain in monsoon a midst frequent rain and foggy weather was a unreal. The climb up to some of the mountains were steep and owing to the monsoons, the road condition was tricky. Due to the fog, all vehicles travelling hadtheir headlights on. All these made the journey even more thrilling. There were numerous spots where the travelling tourists halted to get a glimpse of either a waterfall or the majestic view of unknown valleys. Monkeys,tea stalls and a chilling

weather were making things even better. One such amazing spot was a hill top from where group of hills could be seen. This was one of the defining moments of the entire journey. I had never seen trees swirling around in such a fashion. Their movement was identical to a group dance being performed by nature's creation. It was unique.

Some journeys are worth remembering. Some make you cherish the moments forever. To me, the trip through the mightly western ghats would surely fall into one such category. As we made our way back to Pune, the breeze, the serenity, the charm of the hills which we left back seemed to call us back. Another excursion to the mystic and divine ghats awaits!

MES QUE UN CLUB

More than a club. Yes, thats what the title of the note means. It is all too familiar for us who follow FC Barcelona and over the course of watching them we realized that indeed some of the great institutions of the beautiful game are indeed more than just a club. I felt like writing this note to pay tribute in my own small way to FC Barcelona for the values they stand for and the way they showcased those to the world on the greatest stage of club football yesterday.

I have been following Liverpool FC for 12 long years now,watching their matches, following the players, revelled in their success and lived through the dissapointments. A great institution. FC Barcelona is and i must admit is an experience at a totally different level. These principles and values are not just limited to a game of football but they teach us a lot in general and i am a firm believer that sport is a great teacher in itself.

When Eric Abidal was asked by his teammates to lift the trophy, one of those values came out. For those who dont know what happened to Eric, he went through a serious operation to remove a tumour from his liver. Ever since that,the support he got from the enitre club(players+fans) is just unbelievable. I remember, when the frenchman came on as a substitute after the long lay off, the enitre Camp Nou (1 lac people) gave him a standing ovation, cheered for him, wore his t shirts and what not. Barcelona are perhaps the only mainstream club who donate 1.5 million Euros a year to UNICEF. The only club who till this season didnt have a major shirt sponsor. In an age where other clubs were busy completing lucrative deals, the catalans were more interested in giving for a cause. Truely inspiring to say the least.

Coming to the team, when we look at the players and bond between them it is not difficult to understand why they are great. Great teams or for that matter any great thing in life is built on the pillars of hardwork and humility. There is no place for ego and that is exactly what we see everytime Lionel Messi celebrates with his team mates, the way Xavi enjoys the success of each and every goal scored, the way a new member(Villa) gels into the team and his made to feel at home. From the academy of La Masia to the theatre called Nou Camp, success is given a broad definition which encompasses all the right values. What is more inspiring is the fact that in Messi,Xavi,Iniesta,Pedro we see common people without superhuman physiques,down to earth nature and amazing will to perform. Muhammad Ali once said "Champions aren't made in gyms. Champions are made from something they have deep inside them-a desire, a dream, a vision...".People from all walks of life have something to learn from this great group of individuals. Dani Alves is another inspiring story. I remember, Liverpool balked at the idea of spending $8m for him and season after that he went to Barca for Euro32.5 m. His background and his struggle to the top is worth reading. I am sure behind all the names wearing the blaugrana shirt, lie an inspiring story.

I dont think its necessary for us to talk about the way they play football because surely, the world has come to an unanimous conclusion that FC Barcelona are the best team of our generation and perhaps the best ever Barca team. The dream team under Cryuff could not repeat their only European success (Barca winning Champions League back in 92 at Wembley). For the records, it is also widely accepted that although Inter Milan won the trophy last year, Barcelona were the best team out there.

On a concluding note, it is fair to say that the it will be hard to see players like Xavi,Iniesta,Messi playing together in the same team quite often. The divine traingles they make while playing is mesmerizing to watch. They have not only won trophies, they have won hearts world over with their brand of football. Viva Barca !!!

Bolsa Familia

I came across a very interesting programme run by the Brazilian government named 'Bolsa Familia'. It addresses the issue of cash lending directly to the poor.

It started in 2001 with a programme aimed at education. It expanded to cover range of services like food and fuel and now is estimated to cover 2.6 million families. The concept of this programme revolves around the govt transferring cash straight to the poor families in lieu of certain conditions like school attendance of the kid,nutritional monitoring,pre natal and post natal tests. The programme is a success based on certain figures. Brazil's poverty levels came down. Economic growth increased. Studies have estimated that the income of the poor increased 7 times more than that of the rich.

It is important for the Indian government to look into such programmes and initiate processes wherein the poor can get cash directly from the government. The convoluted subsidy system is a farce.