Sovereign Bank Personal Financial Statement: Fill & Download for Free

Mutual Funds are like entry level sedan cars that make you enjoy some horsepower without compromising on mileage.Fixed income instruments such as NCDs, Fixed Deposits, Sovereign bonds etc are like small hatchback cars that give you good mileage but NO horsepower.In the above two statements, ‘Mileage’ means ‘peace of mind’ while ‘Horsepower’ means ‘returns’.Now, when you buy fixed income instruments, you know beforehand about the returns that you are going to get (which can’t even beat inflation). You buy mutual funds only for the long term hoping to beat fixed deposit returns by a margin (which most of the time do beat FD returns)An ultra rich investor will not buy a small hatchback car or an entry level sedan car. He will only buy a super car that has ‘extraordinary horsepower’ without giving any importance to the ‘mileage’ because he can very easily afford the mileage.He will put his money in private equity, venture capital, sometimes hedge fund etc. These ‘super cars’ give extraordinary horsepower but no mileage.Let us have a look at some factsA Maruti Alto or a Honda City is shown every minute in a television ad. So do mutual funds as ‘mutual fund sahi hai’. Fixed deposit rates of all banks are published in economic times and financial express every Saturday.A Rolls Royce or a BMW or a Mercedes Benz is not shown in any TV advertisement because people who are going to buy these super cars are not watching TV. Similarly, private equity investments are not advertised on TV.If I, as a middle class person buy a ‘super car’, I will only be able to place my hand on an ‘entry level BMW or Merc’, that too on EMI if my salary is very high or I have a second income source. I may enjoy superior horsepower, but the lack of mileage will take a toll on me.I, as a middle class person, can’t even think of buying a Rolls Royce or a high end BMW because they are not available in EMIs. Even if I borrow money to buy a high end super car, I will have to sell it soon because I will not be able to manage the maintainance cost.But as a super rich investor, I have 10 sources of income (what salary!! I don’t do jobs) and a net worth of more than Rupees 100 crores, I will have to shell out just 1% of my net worth to buy a high end BMW car that costs Rs 1 crore only.Thus, a super rich investor is an informed and experienced investor to generate extraordinary returns through private equity funds and not even look at mutual funds as a choice.He/she will easily manage the ‘maintainence costs’ associated with these investments.SEBI & RBI also know these facts. Thus, they will not allow me to invest in private equity if my net worth is less than two million dollars or Rs 14 crores (excluding the valuation of the house I live in) or an annual income of more than Rs 1.5 crores.A Small Edit:Wow!! 100 upvotes in 1 hour. I am stunned by such a quick response. Originally, this idea is not mine. I would like to thank my mentor and best friend Karan Samal (करन सामल) for motivating me to write this answer and teaching me about financial products by comparing them with cars.

Elon Musk. No other person in the automotive industry today seems as contentious.With legions of fans and detractors, is this entrepreneur a true automotive visionary or merely an electric-vehicle-peddling charlatan? Is he a genius or is he crazy? In just the last couple months, they finally appear to have sorted out the major woes plaguing Tesla Model 3 production, but Musk just had to give up being chairman following a run-in with the SEC over a tweet about taking the company private.What’s Normal?Typically in a situation like this in which a public company was publicizing that they were considering a major corporate action, management would contact the listing exchange and ask for a trading halt so that they could make the appropriate announcement and let the markets digest the information in an orderly fashion before trading resumes. At roughly the same time, the company typically files form 8-K with the SEC, which is intended to notify investors of a significant event.Musk’s tweet came during market hours with no halt requested until the NASDAQ exchange requested it from the company.The 8-K is posted publicly, allowing the investing public to consider all of the important details of the event and they may include financial statements, press releases, data tables and any other information required to allow the markets to understand the event and decide whether the event should affect the price of the shares.Tesla – like all companies – routinely files form 8-K, even for relatively mundane occurrences like a change in a management position, a change in the terms of company debt or the details of a press release, but so far, no form 8-K seems to have been filed yet regarding the proposed private buyout.Did Musk Violate Securities Laws?In a word, no. At least it doesn’t seem that way, though he is dancing pretty close to that fire.The SEC decided all the way back in 2013 that social media was a legitimate way for public companies to disseminate information, provided the company formally notifies investors where information will be available. Tesla has complied with these guidelines.There has been much speculation about the phrase “funding secured” all the way down to parsing the semantics of the word “secured” instead of “confirmed” or “committed”, but at the time being, there’s no indication that Musk said anything that is materially false - which would be a violation of securities laws.The laws are generally meant to prohibit “pump and dump” schemes, usually in small stocks, in which an investor with an existing position intentionally disseminates false information and then uses the resulting market reaction to liquidate that position at favorable prices.CNBC commentator and ex-hedge fund manager Jim Cramer – incidentally, no stranger himself to claims of market manipulation – pointed out on Wednesday that in this case “there was no dump.” That is, Musk did not use the rally to sell any of his shares in the company.Merry PranksterThe notoriously confident Musk even continued to taunt those with short positions in Tesla with a prank aimed at famous short seller David Einhorn in which he mailed the hedge-fund manager a box of actual short pants.Einhorn and his firm, Greenlight Capital are probably best known for their outstanding returns during the financial crisis when they correctly surmised that several major investment banks were in trouble and made outsized profits with short positions in those banks.Einhorn, himself a clever individual and semi-pro poker player who often donates his winnings to charity, got in a dig of his own when he replied via Twitter that the shorts “did come with some manufacturing defects,” an obvious reference to reports that Tesla’s Model 3s were being assembled hastily in the push to ramp up production and were consequently of lower quality than the company’s previous Model S and Model X.In a poker analogy, the fact that Musk is light-heartedly joking about the deal and its potential negative effects on short-sellers of the stock would seem to imply that he’s holding a great hand that he’s not showing yet.Or of course it could also be a bluff.Is the Financing “Secured”?That’s the million dollar question. (Actually, it’s the 72 billion dollar question.)Funding for the proposed deal does not have to involve a single buyer or lender committing the full $72 billion dollars. ($72 billion is an estimate, as the actual number of shares involved depends on the exercise of outstanding company stock options and the conversion of convertible debt, but it’s a reasonably close figure.) Given Tesla’s relatively poor credit ratings, a traditional leveraged buyout is unlikely, but there are other ways to make the deal happen.Musk has explained that existing shareholders would be given the choice to tender their shares for $420 in cash, or retain ownership of the same equity stake in a private structure.Tesla would need a majority shareholder vote to approve any deal. If 100% of existing shareholders chose to retain their stakes in a private entity, the deal could theoretically be done for zero dollars in cash. Musk himself owns approximately 20% of shares and he has stated his intention to retain that position even if the company is taken private. As of the most recent 13-F filings, institutions own another 63% of shares, with the top five holders combining for ownership of approximately 33%. That doesn’t include the Saudi Sovereign Wealth Fund, which it was announced this week has acquired almost 5% of Tesla on the open market.In short, Musk would only need the agreement of a handful of existing shareholders, along with their commitment to purchase any tendered shares to gain a majority and truthfully say the financing was “secured.”This is speculation of course, as Tesla and Musk have been tight-lipped so far about the details of their plan. To continue the poker analogy, Musk just shoved a big pile of chips into the middle and dared everyone at the table to make the call. Betting against him certainly hasn’t worked in the past but we’ll have to wait and see for a bit longer to find out how this hand turns out.The only thing we know for sure is that it will be interesting.

No.If the king held all the wealth, it is not unlikely his family will murder him for the privilege. The sovereign wealth of Saudi Arabia is distributed to the members of the House of Al-Saud. The distribution is what kept the uneasy peace within the clan for a long time before MBS hauled them to the Riyadh Ritz-Carlton prison.Don't get too hung up on the valuation of Aramco. You rightly pointed out that it belongs to the sovereign. No one really knows what's left of it, or how much it's worth. The effort to publicly list the company fell through because investors have no confidence in its value. While IPO prices are arbitrary, they aim to approach market value, which is based on fundamentals. Most people rightly believe Aramco's corporate financial statement will look like the Al-Saud's personal bank book.