Niranjan Chatterjee’s Weblog

August 9, 2012

Web Hosting Online

Filed under: Corporate Management — niranjanchatterjee @ 10:52 am
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A website is not merely a medium of interacting with prospective clients. It is in fact the first interaction a prospective customer has with a company and, hence, if the website is well designed and, more specifically, well maintained, it is equivalent to more than a million dollar spent on attractive advertisements.

But a website should be easily approachable for it to make an impact on customers and this is where the importance of choosing a proper web hosting service comes into picture. Choice of a web hosting service online is nothing but choosing between several competing combinations of network connectivity, hardware systems and, of course, facilities provided by competing web hosting services. The last thing a web master would want is low speed or poor connectivity or even worse, a complete breakdown of services. This might happen if there are a number of active websites that consume large chunks of computing power and bandwidth on the servers of the web hosting company. As a result, all other websites would literally crawl at snail’s pace causing frustration among prospective visitors who might drop the idea of visiting the website due to inordinate delay in accessing it.

Such frustration among prospective visitors would give a very bad name for a website and company and any hope of success in e-business would fold up prematurely. The irony of the whole issue is that a company might lose business not because of poor products or services but simply because of a poor choice of web hosting service.

The only way out of such impasse is to confirm whether the web hosting service has on offer cluster technology. It is the latest technique adopted by web hosting services where they host websites simultaneously on an array of servers. In this way, no matter how big or active other websites might be, each and every website hosted by the company will have ample bandwidth at their disposal to function normally.

The other issue that needs to be settled before one chooses a web hosting service is the level and extent of support that particular web hosting company will provide. A client needs to talk to human beings when in need of support and not automated answering machines or computerized answering mechanism that blurts out preprogrammed answers when some keys are pressed. Even if the company promises human support at the other end, one needs to confirm the depth of knowledge those assistants possess. Else, there might be a situation where one might find talking to a “parrot” at the other end that can only mouth certain jargons irrespective of whether it makes sense or not, or, utter some meaningless statements that are aimed at buying time without any attempt to solve the issue at hand.

While shopping for web hosting services online one might go over to those sites that review and rank web hosts. But before blindly believing what these so-called reviewers have got to say about web hosting online companies one should be aware that many of these review sites are actually run and maintained by web hosting companies themselves. So, any hope of obtaining genuinely unbiased reviews is, to be honest, extremely remote. However, one has to make the best use of what is available and first garner information these review sites provide and then use individual discretion and judiciousness to separate wheat from chaff and arrive at a rational conclusion.


Worksheet for Home Budget

Filed under: Accounting theories — niranjanchatterjee @ 10:50 am
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Without a home budget it becomes almost impossible to keep a tab on domestic expenditure and even before you realize, total expenses might shoot up due to some expenditure that was not a priority while an unavoidable expense remains unattended to causing great embarrassment and, at times, considerable problems.

I had experienced a very piquant situation when I simply overlooked paying my child’s kindergarten fees while spending lavishing on a candlelit dinner that was entirely avoidable. Finally when I realized this oversight as kindergarten authorities sent a reminder, I was hard pressed to arrange for necessary funds. From that day onwards I resolved to maintain a home budget and, as I feel most comfortable using Excel, I prefer a worksheet for home budgets that works best on Excel.

If one feels a home budget will only deal with day-to-day expenditure, it might perhaps not be a proper evaluation of the entire concept. A home budget does not only keep a tab on daily domestic expenses and ensure they are neatly categorized into easily identifiable slots, but also it acts as a Family Budget Planner.

A home budget take note of all types of expenses, right from daily expenses for domestic provisions to monthly installments to be paid for mortgages. It also incorporates expenses that are typical for a specific month in which birthdays and anniversaries occur. This allows a householder or a homemaker to have a clear idea about the total outflow of cash that will take place during a particular month. Armed with those crucial details, a householder might curtail or, at least, strictly monitor, expenses on other heads especially during those months where cash outflows are bound to be on the higher side. Such continuous monitoring allows somewhat smoothening of cash outflows from a household thus providing some breathing space for an average householder.

So it is quite obvious if household expenses are properly managed through a home budget, it is very much possible to generate a steady stream of savings month after month without actually resorting to any sort of austerity measures. You can still have your favorite dinner at your favorite restaurant every fortnight and also manage to save a decent amount every month. The trick lies in identifying all genuinely unnecessary expenses (every household has such latent expenses as it were) that can actually be done away with without causing any hardship or sacrifice.

Once such stealthy, if we may say so, expenses are determined by strictly following the home budget, you will find how much surplus you have at hand at the end of a month even after taking care of all your requirements and even after catering to a couple of your fancies.

A home budget also allows you to save in an organized manner if you have plans to buy that exclusive piece of furniture or that fancy home theater that your best friend has just bought by forcing you to keep aside some amount for a few months till the required amount is accumulated. Though it is a slightly long drawn out procedure as you will have to wait for a few more months than you would ideally like, it actually allows you to avoid another loan and the burden of another accompanying monthly installment.

Small Business Grants

Filed under: Accounting theories,Corporate Management — niranjanchatterjee @ 10:48 am
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Small businesses have one thing in common among them irrespective of which sector they would like to conduct business in. They have people brimming with innovative ideas and ample gumption but rarely, if ever, requisite funds to fructify ideas that keep swirling in their brains. One is actually forced to recall the dot com boom when youngsters barely out of college and with path breaking ideas getting ample financial backing from venture capitalists. But with the eventual bursting of dot com bubble, many venture capitalists have learnt the hard lesson of not getting carried away by the enthusiasm of young blood and instead opting for a detailed and unbiased cost-benefit analysis before hitching on to bandwagon of young entrepreneurs. Small business funds have thus become less easy to manage and small entrepreneurs are racking their brains to find some source of ever elusive funds to put the ideas they have into concrete action.

Governments of all countries are aware of this fund crunch and wish to help these small entrepreneurs as such initiatives are a sure shot remedy to raise levels of employment and national income. However, all those advertisements put up by government agencies loudly proclaiming that a mere application would see government funds pouring in at entrepreneurs’ doorsteps are not so easy to get. The idea that to get small business grant is almost as easy and hassle free as taking an evening stroll in neighborhood park is just a pipedream, one cooked by glib advertisement professionals.

Often these grants are very specific in their queries and criterions and many a decision to allow a grant hinges on issues like sex, race and business location and business revenue earned till date and number of years the business has been in existence. The obvious issue that vexes and often frustrates small business owners is that had they been so efficient that they could run their business profitably over the years they would not have approached for funds and, what is most important, they would not have still remained small! So, some of the requirements of funding authorities, it seems, are designed to put off small entrepreneurs rather than encouraging them.

Hence, before embarking on the arduous process of getting a small business grant from government agencies an entrepreneur must think hard and arrive at certain concrete answers about the future of the business. The first rational step would be to look up the Catalog of Federal Domestic Assistance to find which particular grant best suits the business. There are literally numerous small business grants doled out by the government and some of those are directly specifically towards businesses that are run from backward or underdeveloped areas or run by members of minority community and even for small businesses run by women. So, it helps an entrepreneur a lot to be able to locate the right slot where their business neatly fits in. That helps an entrepreneur to focus their energies in a proper and concentrated manner right from the very instant they begin their hunt for small business grants.

The first thing which an aspiring or a small entrepreneur must ensure is that they have filled in the grant application form accurately by providing correct data about all that is required of them to furnish. There should not be any form of ambiguity and error in filling in the form as it will then surely be disqualified for any further consideration. It might also be beneficial to personally interact with the relevant grant official (if local laws permit that) to know in further detail the requirements that need to be satisfied before any such small business grant is approved. It perhaps needs no elaboration that keeping in touch with the grant official and attending to all his queries, however irrelevant or inconsequential they may seem at first glance would make release of the small business grant that much easier and hassle free. However, as has already been mentioned, though briefly, any form of undue gratification of the granting official should be strictly avoided since chances are that any such maneuver might not only mar the prospect of getting a small business grant but also might end up in the small entrepreneur being behind bars for unlawful activity.

The small entrepreneur must also be ready with a medium term business forecast complete with projected cash flows and asset addition over the years and a clear forecast about future market trends and movements. Such forecast plan documents should ideally be prepared by experts in this field rather than the entrepreneur trying their hand at it. Any hint of amateurishness on the part of the small entrepreneur is sure to derail any chances of getting a small business grant.

Glock Handguns

Filed under: Self Defence — niranjanchatterjee @ 10:46 am
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Glock handguns though initially viewed with skepticism as being ‘plastic’ guns have become the most desirable pistols in the world with police forces and armies (not to mention private owners) of not only Austria, its place of birth, but almost all other armed forces in the world and private enthusiasts residing in all corners of the world overwhelmingly opting for it. These guns are known for their ruggedness and for the three tier safety mechanism that prevents any accidental discharge and are accepted as benchmarks in the category of handguns. Starting from the first model Glock 17, this handgun has spawned four generations and still remains hot favorite among handgun users of the world. Some of the super successful and immensely popular Glock handguns are described below but one must admit it will be sea of difference between reading this review and actually handling a Glock gun – it gives a unique feeling of reassured and controlled power that no other device can ever hope to come anywhere near.

Glock 36 – This is a slim, sleek model that is so very easy to carry around and equally easy to aim and shoot. The comfort of carrying around this uniquely crafted instrument is perhaps not quite possible to express in words and needs to be experienced firsthand.

Glock 19 – It is a miniature wonder of sorts that can be concealed very easily and is the preferred weapon for USAF pilots to be used in case of emergency. Though tiny in size, it retains the unique capability of being bang on target and work flawlessly under extreme conditions. Personnel detailed with VIP security almost universally prefer this weapon as it does not create an ugly and obvious bulge that is associated with other handguns.

Glock 17 – This is another marvel of sorts. The safety system in this pistol is not found in any other pistol available in the market. You can opt from the three different trigger pulls that are available and the trigger is the only operative level in this weapon thus making it a consistent and a very safe weapon. Not only the user has the same feeling after firing every shot but also the trigger, when pulled, first disengages from the safety mechanism, fires the bullet and then returns to its engaged position. The textured grip provides a level of comfort one can hardly expect from weapons.

Glock 17 C – It is an update over the original Glock 17 version and has all the features of other Glock 17 series weapons. What it has and no other handguns have are two outward facing barrel ports and have two vents to exhaust the hot air through two outlets cut on the top of the slide. This allows the user to aim again for the follow up almost instantaneously without losing aim or balance.  The grip is ergonomically designed and provides a unique level of comfort while using the instrument. Being light as all Glock handguns are, this model also provides the additional benefit of rapidly firing the extremely crucial second shot that actually determines the ultimate outcome of any encounter.

Glock 20 – This is a giant among handguns with enormous firepower and ability to shoot down even big games with ease. The obvious concern of every user would be the almost unmanageable recoil that would obviously result from such massive ejection power and the resultant inability to aim once again immediately after firing the first shot. Manufacturers have been aware of this issue and have made a gun that has amazingly less recoil, especially considering the awesome firepower this gun manages to hold within itself. This would be a very rational choice if you are interested in carrying a volcano with you that can be directed and aimed flawlessly pumping one supercharged hot lead after the other in quick succession at the hapless target.

Glock 21 – This is a big gun and has almost become a part of American folklore. Its 0.45 mm bore and awesome firepower has not only made it an absolute favorite with law enforcing agencies and armies but also has acquired an air of machismo and charisma that every male would aspire for. So, if you want to really declare you are a man and wish to have a handgun to go with your persona; this is the best choice for you.

Glock 22 – This is the much awaited crossover between the heavy duty Glock G21 and its 0.45 bore and other wildly popular smaller pistols of 9X19 size made by Glock. The manufacturers realized the necessity of plugging in the gap in its product portfolio and came out with this 0.40 mm bore pistol. This 15 round pistol retains the lethal accuracy and nearly the same firepower of its bigger brother but everything is packed in a much leaner frame that is simply loved by police forces across the world.

Glock 23 – This gun also has 0.40 mm bore but has certain path breaking design innovations that make it stand out among handguns. It has a size that can be carried openly or if one desires, be concealed from public view. It is extremely light and has a newly designed grip that allows every user to instantly feel comfortable to hold the gun irrespective of the size of the hand and holding style. This feature makes it an immensely desirable personal weapon of choice.

Best colors for summer

Filed under: Personal Thoughts,social awareness — niranjanchatterjee @ 10:43 am
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Summer has arrived in its full glory and you should be fully ready to welcome it. This is the season for fun, frolic and glorious sun soaked outdoors, golden beaches and bright walks through long winded mountain roads. But not all of us prefer to be with nature; we would rather enjoy the bounty of nature with our friends. Well, that depends on individual choice, but all of us feel the spring in our steps and that extra beat in our heart that eggs us on to dump our anxieties, stresses of daily life and let our hair down in gay abandon.

With damp dank days and smoggy depressing evenings of winter firmly behind us, we have to give in to the season’s glory and that must be reflected in our clothes too. Now is the time to discard those heavy woolen baggies and get attired in swanky stylish clothes that caress our bodies and allow us to show off with reasonable pride our well toned bodies.

The color of summer clothes should also match the overall mood and be in tandem with what nature beacons us to do. So, all those dark and somber shades are to be put back in wardrobes and bright sporty colors should be allowed to have a field day. Bring out those bright pinks and yellows that reflect the sunny and warm side of you and throw a sporty vibe to all around you. Actually, if you were bright clothes it also spreads a warm and inviting ambience wherever you go. And, with summer here, you would not find a better opportunity to let others know of this brighter and sportier avatar that you always had but which did not get the right opportunity to blossom under the heavy burden of winter garb.

While some sure prefer bright pinks and yellows and other solid vibrant shades there others who prefer to don a softer more soothing scheme of colors. They say that with such a bright sun around where is the need for adding more brightness around? Well, they certainly have merit in their contention and we should let them have their say. Colors are, all said and done, matters of personal preferences and tastes and one should definitely follow one’s heart in such matters without getting too much influenced by what others or so called fashion gurus dictate.

For those who prefer softer shades pastels and whites are the best options. Just as a bright yellow throws warm vibes, a yellow pastel also is warm in its own, very special and very intimate way. A pastel pink top with a white short lend that unique unparalleled charm to people of all ages. Even a sparkling all white summer skirt imparts that bubbly feeling one so very much wishes to adorn in glorious summer days. Imagine yourself in muted pastel yellow beachwear on a golden beach and you would immediately feel the water and salty air almost caressing you even when you might be standing right in the middle of a swanky shopping mall. Such is the power of colors!

With summer also comes the chance of donning bright natural shades like green and brown especially on clothes having a slight rougher texture.  Nature rarely has smooth texture and these natural colors look best when put on slightly rougher surfaces as cotton and jute rather than silk and rayon.

Pastel shades of natural colors are also a big draw in summer but summer colors should always be in perfect harmony with natural ambience of this season. That is why we should always go for bright hues and drown ourselves in the joy that permeates this season.

Google Analytics

Filed under: Google Analytics — niranjanchatterjee @ 10:41 am
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Google analytics is the new wonder tool of marketers. They are now religiously utilizing this tool to evaluate their efficiency in attracting real customers to their virtual points of sale. While the points of interaction with virtual customers is set up in the virtual world of internet, the sale is very much real and it generates turnover much like any sale that takes place at a brick and mortar point of sale. As these websites or virtual points of sale as they may be also called are gaining in importance it is being equally important to keep a track on the volume of traffic towards the website and other details such as number of repeat visitors and volumes of purchases made by such visitors and a summary of their tastes and preferences. But before we get into further detail of how Google Analytics works it would be better to briefly discuss the power World Wide Web wields in today’s marketing as that would put the exact impact of this new tool from Google in proper perspective.

This is a networked world where people tend to interact more in the virtual world than in real world. Indeed, the advent of World Wide Web has opened a whole new vista of interaction between individuals where without moving even an inch from one’s seat an individual is able to virtually  move across the world, cross oceans and climb mountains and get in touch with whomsoever they want situated continents away. True, men could contact across continents even before the advent of the web but such interaction was essentially a one-on-one type where the sender and the receiver of information knew each other and desired to interact with each other. But internet opened up a whole new possibility where many-to-many interaction became a reality with everyone carrying on their conversation at the same time while retaining their individual communication lines insulated from other communications being carried on simultaneously. This many-to-many yet one-on-one characteristic of internet interaction has made World Wide Web has made it such a potent tool in the hand of advertisers and marketers.

Now marketers can set up a website which acts as a virtual lounge where potential customers can virtually stroll in, browse through the wares on display and decide on what to buy and what to just gaze and let go of. A website now has the immense potential of being visited by potential customers not from a restricted geographical area but from all over the virtual world. Time, place and distance are no longer hurdles that need to be crossed. Any potential buyer can click on the website at any hour of the day or night and can virtually visit the website which might be interactive, might be not but there is absolutely no necessity of any human presence to manage such visits as would be necessary had it been a brick and mortar showroom or shopping arcade. Moreover, many potential customers can simultaneously visit a website and none would be intruding into others privacy or disturbing in any way

So, marketers all over the world has latched onto this extremely powerful medium of interaction and Google Analytics has become the much preferred tool of monitoring virtual footfalls in virtual points of sale.

It must at this juncture be clarified that mere recording the number of visitors in a particular website would surely indicate the level of its popularity or reach among prospective customers but it would not help a marketer in stocking his website in a more rational or intelligent way. That is, if a marketer does not have any idea about the purchasing pattern and tastes and preferences of visitors it would be next to impossible for them to stock their websites with those items that are most searched for by prospective customers. Google Analytics gives marketers an opportunity to get such detailed data about visits to websites and marketers have understood the power of this new tool and are eagerly lapping up every bit of benefit that this new tool has on offer.

An analysis of traffic to a website and more specifically what is actually attracting traffic and what is not or what has the negative potential of actually diverting traffic away from the website must be accurately known to marketers that have put up the website so that they can plan to advertise their wares accordingly. Google Analytics helps a marketer to track all visitors that have visited the website and the marketer if they feel the need to do so can also directly send mails to all visitors to the website to carry on their interaction at the next higher level.

Google Analytics not only allows marketers to analyze buyer preference but also can evaluate the efficiency of advertisements they put up on the net to attract customers to their websites. By tracking the number of clicks and also the number of conversions from first click on the advertisement right up to the actual sale of the product allows the advertiser to accurately quantify, sometimes in money terms the efficiency or otherwise of an advertisement. This helps marketers to spend their budget in a more focused manner so as to get maximum return out of every dollar spent on advertisement.

With such a specific and accurate measure of return on funds spent on advertisement, marketers have now got a tool to accurately forecast the benefit of advertising and have also got a handle to determine the nature and content of a successful advertising campaign. This will help advertisers much more than one can apparently imagine.

The first benefit would be to immediately identify what works as an advertisement and what does not. The second and equally important benefit marketers are going to gain from this tool is it would help them to demystify the often vague and verbose language used by advertisement professionals about long term gain and creating a brand value and all similar high sounding words that can hardly ever be converted in money terms.

Google Analytics provides marketers with a very potent tool to confront advertising professionals who now have to actually justify each advertisement they have put up and charged money for as each one of such advertisements can now be measured in terms of actual conversions they have been able to achieve.

Even if we assume that advertisement professionals and marketers are not adversaries but comrades in arms fighting to grab a larger market share, Google Analytics has provided both with a very efficient metrics to monitor how efficiently every single dollar is spent on advertising.

The Dairy Family

Filed under: Personal Thoughts,social awareness — niranjanchatterjee @ 10:32 am
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Vegetarianism, once looked down upon by the western world that is used to and fed on a high protein diet of meat, fish and poultry products, has always been looked up to as an alternative and healthy diet for leading a balanced and disease free life by a minority of health conscious citizens of the western world. Without digressing into the harmful effects of consuming copious animal protein and the ethical issue of killing animals to fill one’s stomach, one can safely say with reasonable authority that milk can provide a very competent alternative to meat. It is basically a matter of long held opinions and belief, rather, convictions, that prevent a lot many among us to give vegetarianism a serious thought. It would not be a paradigm shift as it were if a conscious attempt is made to get converted into a dairy family.

In this context one should be crystal clear about what exactly is meant by the word dairy. Dairy has many connotations including a business that deals in milk and milk products but for our purposes we would assume dairy to represent a wide variety of milk and milk products that are provided by those who are involved in dairy business. The dairy products that are ubiquitous and can compete with animal protein in every respect are described one after the other for the reader to take their pick and take the first step towards vegetarianism and become a genuine dairy family.

Milk – It is considered as mother’s nectar for all mammals including human beings. The health bolstering properties of milk hardly need further elaboration as Mother Nature herself has decided that it is best for newborns. A vegetarian family cannot dream of surviving without milk.

Cow’s milk – It is considered to be the nearest substitute to human milk and is consumed in voluminous amounts by all those who belong to a genuine dairy family.

Goat’s milk – It is easier to digest than cow’s milk and often fed to babies when they go through a bout of digestive disorder. Many adults also prefer goat’s milk if they have digestive problems. Two towering historical figures, Mahatma Gandhi and George Bernard Shaw were great and avowed fans of goat’s milk.

Cream – This is the fat that is skimmed from the surface of milk and is used in a variety of mouth watering recipes and is equally loved by non-vegetarians and dairy families. If cream is fermented through certain bacteria, which might develop naturally or are introduced artificially, it becomes sour cream and, as its name suggests, it is slightly sour in taste. A very specific type of cream that contains approximately 28% butterfat and is less sour than sour cream is known as Creme Fraiche. As this cream does not curdle as ordinary does it is used in a variety of French recipes. In warmer countries where milk often gets spoilt due to lack of proper refrigeration, buttermilk is very popular among families that prefer dairy products. It is thicker than milk and is obtained through fermentation of cow’s or buffalo’s milk and is mostly drunk straight though some dairy families also use it in cooking. Another fermented milk product is yogurt which is unique in its solid but pliable texture and a unique sharpness in taste.

Cheese – It is the most popular dairy product after butter and is available in literally innumerable forms and textures. Each variety has a dedicated band of aficionados who would go out of their ways to praise the specific variety they consume. The most consumed varieties include Feta, Cheddar, Parmesan, Goat’s Cheese, Halloumi, Quark, Ricotta, Fromage Frais and Cottage Cheese.

How to select the best yoga mat for beginners

Filed under: Personal Thoughts — niranjanchatterjee @ 10:28 am
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Yoga has been a revelation to the west and has found instant acceptance among people of all age group because of not only its therapeutic properties that cleanse the body and frees it from toxins but also due to its immense power in healing the mind and restoring the tranquility that is so much required for leading a balanced and healthy life.

Though Yogis of ancient times did not need any accessories for performing yoga, people of twentieth century indeed need some props to bolster them as they go through the intricate postures and try to master associated breathing techniques. Yoga mat is an essential accessory; indeed one performs yoga on these mats and hence choosing the best yoga mat for beginners is possibly the most crucial link in the entire process. A beginner is already awestruck at the prospect of enjoying an experience they have possibly never before had the opportunity to take part in and thus it might be too much of a burden on the newcomer to be able to properly choose the best yoga mat for beginners.

The most obvious quality that a yoga mat must have is eco-friendliness, that is, it should not be made of any form of non-biodegradable items, especially PVC which has certain well proven harmful effects on human body. So, the best yoga mat for beginners must surely be made of either naturally available fibers or naturally harvested rubber. Such mats would ensure that beginners are not exposed to risks of skin allergy or irritation while practicing yoga. One must not overlook the fact that substantial portions of body surface remain in close contact with the yoga mat during yoga postures.

Moreover, you need to also consider your daily routine and how you are going to fit in your yoga sessions in your normal schedule before choosing a yoga mat. If you live near a yoga center and drive down to it every day you might opt for a thicker yoga mat. But, if you have to travel regularly as your job requires you to do so, you must opt for those slimmer, lighter and foldable yoga mats that you can take along with you wherever you go without much of a hassle. But there can be no denying that thicker yoga mats give you better support and feel more snug and comfortable but you need to do a trade-off to choose a mat that is, if not ideal, is surely the most optimum one given the various conflicting needs.

If you feel choice of proper material is the only issue that needs to be resolved while choosing the best yoga mat for beginners then you are, I am afraid, not quite alive to the entire issue. Yoga can be of various types and the most popular varieties are either that requires vigorous body movement generally in a warm environment or the gentler soothing type that focuses more on restoration rather than developing body mass or shape. It is quite obvious that texture of the yoga mat will be different for different types of yoga. So, before buying a yoga mat from the convenience store at the corner it would be better if you consult your trainer as to what would the best yoga mat for beginners.

Investing in Indian stocks makes good business proposition

Indian stock market has come of age and with its status as one of the emerging economic powerhouses of the world investors across the globe are making a beeline for Indian stocks. As Indian government opened up the economy to the rising tide of globalization and liberalization, foreign investments started pouring in.
These investments ideally should have been Foreign Direct Investments (FDI) but given the labyrinthine Indian bureaucracy and myriad permission required for setting up a production hub, foreign investors chose the easier and less cumbersome way of portfolio investment to partake in the resurgence of Indian economy.
Indian stocks and rising tide of Portfolio Investment
Though Indian economy did not directly gain that much from international portfolio investment, Indians, especially the burgeoning middle class started gaining unexpectedly from the steadily rising stock market indices and domestic investment also started getting diverted from other sectors and got funneled in stock markets. It must, however, be stated that large Indian corporations grabbed this opportunity and collected large volumes of foreign investment through Global Depository Receipts (GDR) and American Depository Receipts (ADR) route.
As a result, Indian stocks got the much needed boost to become at par with stocks of multinational corporations that are traded across all major stock exchanges of the world. Names of Indian companies began to be discussed and their performances began to be closely monitored by all major investment banks of the world.
Basking in the glory of international attention stock markets in India enjoyed every moment of it and small investors discovered Mutual Funds as the new key to almost overnight riches and gains that were unthinkable in staid Indian stock exchange of yesteryears. Mutual Funds on their part sat pretty with humongous volumes of cash at their disposal as Fund Managers who were a reviled lot during the meltdown in 2008 found a new and totally serendipitous lease of life.
Things reached to such a level a year and a half ago that even the ever thriving housing construction industry also started complaining of cash crunch as large chunks of funds were feverishly diverted to stock markets in the mad rush of raking in gains. Privately funded construction and infrastructure projects were left midway and builders were perhaps the unhappiest group of people in Indian economy.
Indian stocks and global economy
Though flow of foreign investment sure made Indian stocks lucrative financial assets, they also brought in their wake greater volatility and instability in stock markets. Previously Indian markets and economy were insulated to a large extent from upheavals in international fund markets but now they started getting affected more directly and more violently from every ripple in global markets.
Stock market indices became talking point in every Indian household; something unthinkable two decades ago. Indian stocks had by now firmly got middle class aspiration in their grip and became the golden key for climbing the social ladder.
However, volatility continued to remain one of the biggest worries of small investors but they were mature enough to accept this unavoidable malady as a necessary nuisance in their quest for financial prosperity.
As of now Indian stocks have reached a position where they are sought after in all corners of the world and small investors would do well to concentrate on midcap stocks as they happen to best withstand stock market volatility. But they rarely offer scope of spectacular windfall gains and individual investors would have to do their personal cost-benefit analysis before deciding on which stock to buy which one to sell and which one to retain.

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