Financial Planning

India Growth Story after COVID 19

2024-01-16T20:20:00.003+05:30

The COVID-19 pandemic brought unprecedented challenges to nations around the globe, including India. However, the resilience and adaptability displayed by the country position it for a robust growth story in the aftermath of the pandemic. Several factors contribute to India's positive trajectory, ranging from economic reforms to advancements in technology and a renewed focus on healthcare.

One of the immediate impacts of the pandemic on India was a contraction in economic activity. Lockdowns and disruptions in supply chains led to a temporary slowdown. However, the Indian government responded with a series of measures to mitigate the economic fallout. The Atmanirbhar Bharat (Self-Reliant India) package, announced to support various sectors, aimed at boosting domestic production and consumption.

The pandemic accelerated the pace of digital transformation in India. With restrictions on physical movement, there was a surge in digital adoption across sectors such as education, healthcare, and e-commerce. The government's Digital India initiative gained momentum, fostering a more connected and technologically empowered society. This shift is likely to contribute to increased efficiency, innovation, and competitiveness in the post-COVID-19 era.

India's pharmaceutical and healthcare sectors gained global recognition during the pandemic. The country emerged as a key player in vaccine production, not only meeting domestic demand but also supplying vaccines to various nations. The focus on healthcare infrastructure and research and development is expected to continue, ensuring India's readiness to respond to future health crises and positioning it as a hub for pharmaceutical innovation.

The adoption of remote work and digital solutions during the pandemic has the potential to reshape India's labor landscape. The gig economy and flexible work arrangements are gaining prominence, providing opportunities for individuals and businesses to adapt to evolving work trends. This flexibility can contribute to increased productivity and work-life balance, fostering a more dynamic and resilient workforce.

The government's push for infrastructure development remains a cornerstone of India's growth story post-COVID-19. Projects such as Bharatmala, Sagarmala, and the National Infrastructure Pipeline aim to enhance connectivity, improve logistics, and boost economic activities. These initiatives are crucial for attracting investments, creating jobs, and promoting sustainable development.

India's commitment to renewable energy is another significant aspect of its growth trajectory. The country has set ambitious targets for increasing its renewable energy capacity, recognizing the importance of sustainability and mitigating climate change. Investments in solar and wind energy projects are expected to contribute not only to a cleaner environment but also to job creation and energy security.

The revival of manufacturing, as emphasized in the Make in India initiative, gains prominence in the post-pandemic scenario. The government's focus on self-reliance and reducing dependence on imports aligns with the goal of building a resilient and robust industrial base. This, coupled with incentives for foreign direct investment (FDI), is likely to stimulate growth in the manufacturing sector.

Global collaborations and trade partnerships will play a crucial role in India's growth story after COVID-19. As the world seeks to recover from the economic downturn, India's strategic geopolitical positioning and participation in forums like BRICS and G20 provide avenues for international cooperation. Bilateral trade agreements and diplomatic initiatives will contribute to expanding India's economic reach on the global stage.

In conclusion, India's growth story after COVID-19 is characterized by a combination of economic reforms, digital transformation, healthcare resilience, infrastructure development, renewable energy initiatives, and a renewed focus on manufacturing. The lessons learned during the pandemic have prompted adaptive strategies that position India for sustained and inclusive growth. While challenges persist, the nation's resilience, entrepreneurial spirit, and commitment to progress are catalysts for a positive and dynamic post-pandemic era.

Investing in India: Unlocking Tremendous Growth Opportunities for the Next Decade

2024-01-08T11:05:00.002+05:30

"Investing in India: Unlocking Tremendous Growth Opportunities for the Next Decade"

In the ever-evolving landscape of global investments, India emerges as a beacon of opportunity, promising tremendous growth for astute investors in the coming decade. As the nation harnesses its demographic dividend, implements strategic reforms, and positions itself at the forefront of technological advancements, the investment landscape in India becomes increasingly attractive. In this narrative, we explore the compelling reasons why investing in India could yield substantial returns and play a pivotal role in a diversified global portfolio.

1. Demographic Dividend:

One of India's most significant strengths lies in its demographic dividend – a youthful population that is not only expanding the labour force but also creating a robust consumer market. With a median age significantly lower than that of many developed economies, India is poised to capitalize on this demographic advantage over the next decade.

Investors can benefit from the rising consumption patterns, as the young and aspirational population drives demand across various sectors, including consumer goods, technology, and healthcare. As income levels rise, the propensity to spend on discretionary items and services is expected to soar, offering a lucrative market for investors seeking exposure to consumer-driven industries.

2. Economic Resilience and Reforms:

India's economic resilience, demonstrated through periods of global uncertainty, positions it as a stable investment destination. The government's commitment to economic reforms further strengthens this narrative. Initiatives such as 'Make in India,' 'Digital India,' and the Goods and Services Tax (GST) have streamlined processes, enhanced ease of doing business, and attracted both domestic and foreign investments.

The recently implemented National Infrastructure Pipeline (NIP) underscores the government's focus on creating a robust foundation for sustained economic growth. Investors can tap into opportunities arising from infrastructure development, ranging from construction and logistics to renewable energy projects.

3. Technological Advancements and Digital Transformation:

India's strides in technology and digital innovation are reshaping the investment landscape. With a burgeoning tech ecosystem and a large pool of skilled IT professionals, India is positioned to play a pivotal role in the Fourth Industrial Revolution. The 'Digital India' initiative, coupled with advancements in 5G technology, is set to revolutionize industries and create new avenues for growth.

Investors keen on technology can explore opportunities in software development, e-commerce, fintech, and artificial intelligence. The digital transformation sweeping across sectors not only enhances operational efficiency but also opens up avenues for disruptive business models and innovative solutions.

4. Global Manufacturing Hub:

India's ambition to become a global manufacturing hub is attracting significant investments, especially in sectors such as electronics, automobiles, and pharmaceuticals. The 'Make in India' initiative aims to boost domestic manufacturing, reduce import dependence, and create employment opportunities.

Investors looking to capitalize on India's manufacturing potential can consider stocks in companies engaged in production, supply chain management, and export-oriented industries. As global supply chains undergo realignment, India's strategic location and cost-effective labour force make it an attractive destination for manufacturing investments.

5. Renewable Energy Potential:

India's commitment to sustainable development is reflected in its ambitious renewable energy targets. The nation aims to significantly increase its renewable energy capacity, presenting a vast potential for investors in the clean energy sector. With abundant sunlight and wind resources, India is well-positioned to emerge as a global leader in renewable energy.

Investors interested in clean energy opportunities can explore stocks in solar and wind power companies, as well as businesses involved in manufacturing renewable energy equipment. The global push towards environmentally friendly practices creates a conducive environment for investments in renewable energy.

6. Healthcare and Biotechnology Boom:

The COVID-19 pandemic has underscored the importance of a robust healthcare system, and India is actively addressing this need. The healthcare and biotechnology sectors are witnessing a significant boom, driven by increased healthcare spending, advancements in medical research, and a growing focus on public health.

Investors can explore opportunities in pharmaceutical companies, healthcare services, and biotech firms. The burgeoning middle class's demand for quality healthcare, combined with a global focus on health and wellness, positions the healthcare sector as a compelling investment avenue.

7. Real Estate and Urbanization:

India's rapid urbanization and the government's focus on creating smart cities contribute to the potential growth in the real estate sector. As the urban population expands, there is a demand for residential, commercial, and industrial spaces.

Investors interested in real estate can explore opportunities in real estate development companies, construction firms, and real estate investment trusts (REITs). The urbanization trend, coupled with increased disposable incomes, makes real estate a vital component of India's growth story.

8. Policy Stability and Investor-Friendly Environment:

India's commitment to policy stability and creating an investor-friendly environment enhances its appeal as an investment destination. The government's proactive approach to addressing challenges, coupled with ongoing reforms, creates a conducive atmosphere for both domestic and foreign investors.

Investors appreciate policy certainty, and India's efforts to provide a transparent and predictable regulatory framework contribute to building confidence. Initiatives such as the 'Single Window System' for clearances further streamline processes, making it easier for businesses to operate and thrive.

9. Financial Market Reforms:

India's financial markets are undergoing significant reforms, enhancing transparency, and expanding investor access. The introduction of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) provides investors with new avenues for diversification and participation in India's growth story.

The gradual opening up of the bond markets to foreign investors and the development of derivative instruments contribute to the depth and efficiency of the financial markets. These reforms enhance liquidity and provide investors with a broader spectrum of investment options.

Conclusion:

Investing in India for the next decade presents a compelling narrative of growth, fuelled by demographic advantages, economic resilience, technological innovation, and strategic reforms. As the nation navigates its path towards becoming a global economic powerhouse, investors stand to benefit from the diverse opportunities across sectors.

While the potential for substantial returns exists, it's essential for investors to conduct thorough research, understand market dynamics, and stay attuned to regulatory changes. India's growth story is dynamic, and successful investment strategies require a nuanced approach that aligns with the nation's evolving economic landscape. As investors seek to diversify their portfolios and tap into emerging markets, India stands out as a destination offering tremendous growth opportunities for the next decade and beyond.

An Update on Winding Up of 6 schemes of Franklin Templeton

2020-05-20T13:29:00.005+05:30

This email is to provide you with an update on progress made in the winding up process.

Franklin Templeton Trustee Services Pvt. Ltd., as advised by SEBI pending unitholder vote, and as desired by the Trustees for the duration of the winding up period, today announced the appointment of an independent advisor to work together with Franklin Templeton Asset Management (India) Pvt. Ltd (the AMC), to assist the Trustees in monetizing portfolios of the six schemes that are being wound up.

The Trustees have appointed Kotak Mahindra Bank, who, through its Debt Capital Markets team, will work closely with the Franklin Templeton Trustees, to assist with all portfolio actions in these six schemes that are being wound up. These actions will be limited to the below-mentioned schemes.

Franklin India Low Duration Fund
Franklin India Dynamic Accrual Fund
Franklin India Credit Risk Fund
Franklin India Short Term Income Plan
Franklin India Ultra Short Bond Fund
Franklin India Income Opportunities Fund

The Trustees of Franklin Templeton Mutual Fund are pleased that Kotak Mahindra Bank, a highly reputed firm with strong corporate governance practices and deep financial market experience will, wherever required, act as their agent and provide its independent advice and assistance to the Trustees through the entire process. Their appointment will provide the Trustees with the added experience and ability to monetize assets at the earliest possible time.

We are committed to ensuring an orderly and equitable exit for all investors at the earliest possible time, and we will partner with the Board of Trustees and Kotak Mahindra Bank to ensure an efficient wind-up of these schemes, while preserving maximum value for our investors.

Please note that a similar communication has also been sent to all impacted investors.

આત્મ નિર્ભર ભારત :-

2020-05-19T11:41:00.000+05:30

આત્મ નિર્ભર ભારત :-

નાણાં મંત્રી નિર્મલા સીતારામને બુધવારે 20 લાખ કરોડના રાહત પેકેજ ની માહિતી આપી હતી.

આવક વેરો ભરવા ની તારીખ 3 મહિના માટે આગળ વધારવા માં આવી

નાના અને માધ્યમ વર્ગ ના ઉદ્યોગો ને (MSME) 3 લાખ કરોડની લોન

- લોન ચાર વર્ષ માટે અપાશે

- એવા ઉદ્યોગોને મળશે, જેની બાકી ચૂકવવાની નીકળતી લોન 25 કરોડથી ઓછી હોય અને ટર્નઓવર 100 કરોડથી વધારે ન હોય.

- 10 મહિના સુધી લોન ચૂકવવામાં છૂટ મળતી રહેશે

- લોન એપ્લાય કરવા ની છેલ્લી તારીખ 31/10/2020 છે

- કુલ 45 લાખ MSME ને ફાયદા કારક નિર્ણય, ઝેરો ખર્ચ પર

- સારા MSME માટે 50 હજાર કરોડનું ફન્ડ ઓફ ફંડ બનાવા માટે નો પ્રસ્તાવ.

- તમામ નાના ઉદ્યોગોને સામેલ કરવામાં આવશે.

- માઈક્રો ઈન્ડસ્ટ્રી માટે 25 લાખથી વધારીને રોકાણ 1 કરોડ કરવામાં આવ્યું.

- સ્મોલ ઈન્ડસ્ટ્રી માટે 10 લાખ કરોડ સુધીનું રોકાણ અને 50 કરોડ સુધીનો કારોબાર, મધ્યમ માટે 20 કરોડ રોકાણ અને 100 કરોડનાકારોબારને મંજૂરી.

- લોકલ ઉદ્યોગોને વૈશ્વિક બનાવવા માટે 200 કરોડ રૂપિયાથી ઓછાનો વૈશ્વિક ટેન્ડરના નિયમને ખત્મ કરવામાં આવ્યા છે.

- આશિક ઋણ ગેરન્ટી યોજનામાં 45 લાખ કરોડ રૂપિયાનો પ્રાવધાન કરવા આવશે. તેમાં સરકારને 20 ટકા નુકસાન થશે. તેનાથી સુક્ષ્મ, લધુ અને મધ્યમ ઉદ્યોગો અને લોકોને લોન લેવામાં સરળતા રહેશે.

એનબીએફસી - માટે 30 હજાર કરોડ રૂપિયા

નોન બેન્કિંગ કંપનીઓની લિક્વિડિટીની સમસ્યા દૂર કરવા માટે 30 હજાર કરોડ રૂપિયાની સ્પેશિયલ લિક્વિડિટી સ્કીમ શરૂ થશે.

એનબીએફસી સાથે હાઉસિંગ ફાઈનાન્સ અને માઈક્રો ફાઈનાન્સને પણ આ 30 હજાર કરોડમાં જોડવામાં આવ્યા છે. તેની સંપૂર્ણ ગેરન્ટીભારત સરકાર આપશે.

45000 કરોડ રૂપિયાની આંશિક ક્રેડિટ ગેરન્ટી એનબીએફસી ને આપવામાં આવશે. તેમાં એએ પેપર્સ અને તેની નીચેની રેટિંગ વાળાપેપર્સને પણ લોન મળશે. અનરેટેડ પેપર્સ માટે પણ તેમાં જોગવાઈ કરવામાં આવી છે. તેનાથી નવા લેન્ડિંગને પ્રોત્સાહ મળશે. એનપીએમાટે સરકાર બેંકો ને આંશિક મદદ કરશે

પાવર જનરેટિંગ કંપનીઓને 90 હજાર કરોડ રૂપિયા

મુશ્કેલીમાં ઘેરાયેલા રાજ્યોની પાવર જનરેટિંગ કંપનીઓને પ્રોત્સાહન આપવા માટે 90,000 કરોડ રૂપિયા આપવામાં આવશે.

સરકારી કોન્ટ્રાક્ટર્સને રાહત

તમામ સરકારી એજન્સીઓ રેલવે, રોડવેજ કોન્ટ્રાક્ટમાં 6 મહીનાનું એક્સટેન્શન આપશે. આ 6 મહિના દરમિયાન કોન્ટ્રાક્ટરને કોઈ પણપ્રકારન શરત વગર રાહત આપવામાં આવશે.

કોન્ટ્રાક્ટરો જે આંશિક સિક્યોરિટીઝ આપતા હતા, તેને પરત આપવામાં આવશે.

ધારો કે કોઈએ 70 ટકા કામ કર્યું છે તો તેની બાકીની 30 ટકા ગેરન્ટી તેમને પરત આપવામાં આવી શકે છે. જેટલું કામ થશે તેના આધારપર આ ગેરન્ટી રિલીઝ કરવામાં આવશે.

પીપીએફ - ઈપીએફ : કંપનીઓ પીએફ માંનો હિસ્સો 12% ટકાની જગ્યાએ 10 ટકા કરી શકશે

તમામ કંપનીઓ જ્યાં 100થી ઓછા કર્મચારીઓ કામ કરે છે અને તેમની સેલેરી 15 હજારથી ઓછી છે, તો તેમના પીપીએફ ના પૈસાસરકાર આપશે. આવા કર્મચારીઓની સેલેરીનો 24 ટકા હિસ્સો સરકાર તેમના પીપીએફ માં જમા કરશે.

હવે કંપનીઓ કર્મચારીઓના પીએફ માં તેનો હિસ્સો 12 ટકાની જગ્યાએ 10 ટકા કરી શકશે.

સરકારે ઈપીએફ ફાળો ત્રણ મહિના માટે આગળ વધાર્યું છે, હવે ઓગસ્ટ સુધી ઈપીએફ માં સરકાર મદદ કરશે.

ટીડીએસ - રેટમાં 25 ટકા ઘટાડો-

13 મી મે થી - માર્ચ 2021 સુધી - ટીડીએસ માં ઘટાડો - બ્રોકરેજ / કમીશન / કે કોઈ પણ વળતર

જેના પણ બાકી નીકળતા રિફંડ છે, તેનું જલ્દી માં જલ્દી વળતર આપવામાં આવશે

શેરબજાર પર અસર :-

- આ પેકેજ ની શેર બજાર પર પોઝિટિવ અસર જોવા મળશે

- આ પેકેજ માં નાણાં ની પ્રવાહિતતા વધવા અને લોન ને આધાર આપવાના નિર્ણય થી - નોન બેન્કિંગ અને ફિન્નાસ કંપની / બેંક અનેહાઉસિંગ ફાઇનાન્સ કંપનીઓ ને લાભ

- જે બંકો એ નાના અને મધ્યમ વર્ગ ના ઉદ્યોગો ને ધિરાણ કર્યું છે એ બેંકો ને ફાયદો

અર્થશાસ્ત્ર પર અસર:-

- પેકેજ અસ્તિત્વ માટે નહિ પણ વૃદ્ધિ માટે નું

- કોઈનાથી પણ ઉદ્યોગો ને પ્રબળ અને સરળતા થી કરી શકાય પૂરતું ધ્યાન રાખવા માં આવ્યું છે.

- સંકટ સમયે, જીડીપી નું 10% પેકેજ આપવું એ મોટી વાત મનાય છે

- અર્થશાસ્ત્ર, જે નબળું પડી ગયું હોવાનું એંધાણ હતું તેને હવે પ્રબળતા મળશે

- બંકો ને ધિરાણ માટે જોખમ ઉઠાવા માટે પ્રેરણા મળશે

- લોક down ખુલ્યા પછી અર્થશાસ્ત્ર માં જલ્દી રિકવરી ના સંકેત

IN THE END IT’S ALL ABOUT INDIA

2020-03-27T13:34:00.000+05:30

IN THE END IT’S ALL ABOUT INDIA

we are approx. a country of 130 crore people, we are #India
it’s a little slow down, it’s not the end of the world
our Growth is slow right ? but we are still the fastest growing economy in the world with such a big population
remember one thing, people talk about that super power AMERICA ? all the top executives of that country are I_N_D_I_A_N, and I feel proud
once the consumption is going to rise- it will be unbelievable compounding
RBI already has factored in all the possibilities and trust me things will be fine soon, RBI has given a dose of injection to a patient and they will take care in future too.
remember we (economy) were onetime in the ICU, now we are on track at home (just for 21 days)
everyone is talking about #INDIA, in a positive way that we are fighting with CORONA in an effective manner and proud of Mr. Modi & team on the same- we needed the leader in past 60 years and we have it now- we must support him in all possible ways, we as an entrepreneur or as a head of family are unable to manage 5 people, isn’t it? and people expect him to manage 130 crore people that too like you and me. let us salute him, or go out and make your own party, fight it and win it- no one is stopping you from doing it.
about the economy ? you, yourself ask the question to self- will the consumption end? will you stop buying stuff ? will you stop going to Malls/Theatres ? will you stop going to hotels ? holidays on cards ? just postponed right ? once the things will be in place, it will be ROCKET !!!!
consumption driven economy ? oh ! Yes - see the international companies like Apple- approx 25% of sales coming from india, they should be more worried about slow down than us, right ?
are we going to stop buying houses ? stop taking housing loans? not going to buy a car ? a two wheeler ? this is not going to happen right ? we will buy it - right ? so consumption will happen ? loans will be served by banks - profit will be made on the same and will be distributed to share holders right ? then why worry ?
will your kids not go to school ? college ? USA dream of child education ? what is going to happen ? what if dollar will touch 80 ? will you not send kids to other countries for studying ?
trust me- people who are moving out of india - are going to regret in some years from now- they have to relook सोने की चिड़िया - correct me if i am wrong
will you stop buying life insurance ? stop investing in PPF ? ELSS ? MF ? POST? GOLD ? Bonds ? this will be a security for your retirement, you will do it right ? everything will be on track like before.
the best is you got 21 days X 24 hours for you / family / your health - whatever you wanted to do it- its the TIME- it may a writing a blog to reading / writing your own book, making your habits right, taking some time out for self / family - feeling relaxed on a chair you always wanted to sit - watching your old photos with family, 21 days to rephrase the history, 21 beautiful days to relax so you can go back to work with positive vibes / to double the productivity than before. we always wanted to have time with self / family - now is the time - the best thing is no one is going to come to your home - no one is there to ring the bell of your residence, i feel on top of the world……….. tell me how it feels ?

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5 DO's WHEN MARKETS FALL

2019-11-06T21:29:00.000+05:30

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We have had a terrible time in the markets. It is true that the current environment remains challenging due to macro-economic headwinds. Over the past many years, financial markets have gone through multiple phases of ‘risk-on’ and ‘risk-off’ environment.

(1) Be your own judge:

Develop a philosophy. Take your time, understand the product and, then, proceed. And, once you make the decision, be prepared to change course. “Be fearful when others are greedy, and be greedy when others are fearful”. Following the principle, falling markets gives an opportunity to invest in lower NAVs of promising funds.

(2) Trust the expert:

Seek the advice of a Financial Planner for a better choice of funds. It helps you in creating a road map for reaching your goals. This will help you in identifying, quantifying the current financial needs and how you can achieve these goals in a disciplined manner.

(3) A Patient & Disciplined investment approach:

Investors might see gains in the short term, but lose in the long term due to lack of disciplined investment. Hence it’s always prudent to have a disciplined investment approach with a long term investment in mind.

(4) Diversify your investment:

Diversify all your investments in various assets. Scatter your money or spread your investment portfolio over a wide range of different assets like Equity, Debt, Gold, Real Estate, NCD, PPF, Life Insurance...etc. and reduce the risk of returns. It acts as a shock absorber on a car - it smoothens out the ride on a bumpy financial road.

(5) Don't panic:

Don’t panic or don’t be disappointed in the current market fall. Volatility is in the nature of the market. Don’t worry it is the nature of stock markets to move up and down, Understand volatility for better returns; this trade-off is a good one for long term investors. Stay away from the crowd.

Can I buy your one hour

2018-12-01T14:59:00.001+05:30

Can I buy your one hour

One day, father was doing some work and his son came and asked, “Daddy, may I ask you a question?” Father said, “Yeah sure, what it is?” So his son asked, “Dad, how much do you make an hour?” Father got a bit upset and said, “That’s none of your business. Why do you ask such a thing?” Son said, “I just want to know. Please tell me, how much do you make an hour?” So, father told him that “I make Rs. 500 per hour.”

“Oh”, the little boy replied, with his head down. Looking up, he said, “Dad, may I please borrow Rs. 300?” The father furiously said, “if the only reason you asked about my pay is so that you can borrow some money to buy a silly toy or other nonsense, then march yourself to your room and go to bed. Think about why you are being so selfish. I work hard every day and do not like this childish behaviour.”

The little boy quietly went to his room and shut the door. The man sat down and started to get even angrier about the little boy’s questions. How dare he ask such questions only to get some money? After about an hour or so, the man had calmed down and started to think, “Maybe there was something he really needed to buy with that Rs. 300 and he really didn’t ask for money very often!” The man went to the door of a little boy’s room and opened the door.“ Are you sleeping, son?” He asked. “No daddy, I’m awake,” replied the boy. “I’ve been thinking, maybe I was too hard on you earlier”, said the man. “It’s been a long day and I took out my aggravation on you, Here’s the Rs.300 you asked for”.

The little boy sat straight up, smiling “oh thank you, dad!” He yelled. Then, reaching under his pillow he pulled some crippled up notes. The man, seeing that the boy already had money, started to get angry again. The little boy slowly counted out his money, then looked up at his father.
“Why do you want money if you already had some?” the father grumbled. “Because I didn’t have enough, but now I do,” the little boy replied. “Daddy I have Rs. 500 now. Can I buy an hour of your time? Please come home early tomorrow. I would like to have dinner with you”. Father was dumbstruck.

Moral: It’s just a short reminder to all of you working so hard in life! We should not let time slip through our fingers without having spent some time with those who really matter to us, those close to our hearts. If we die tomorrow, the company that we are working for could easily replace us in a matter of days. But the family & friends we leave behind will feel the loss for the rest of their lives. And come to think of it, we pour ourselves more into work than to our family.
Hence, instead of doing all the work ourselves, outsource as much as possible. The advantages of doing so are multi-fold

1) First and foremost you get quality time with people whom your love and who really love you
2) By outsourcing to experts, you get the best results - Mutual Fund for stock investing and Financial Advisory for money management
3) You help the economy by creating employment for others and set up a virtuous cycle of wealth creation for the society and nation.

WHY I AM NOT BUYING SUKANYA SAMRIDDHI YOJANA FOR MY DAUGHTER

2017-03-17T22:09:00.000+05:30

WHY I AM NOT BUYING SUKANYA SAMRIDDHI FOR MY DAUGHTER

Interest Rate is not fixed, change in interest rate will be notified from time to time whenever applicable, very much like PPF.

It Can not beat inflation ( if you get 8% return and inflation is high as 6%, real figure of inflation comes more than 8% per year, you will not get enough money to fund the education / marriage) Play school Education fees cost is around 1-3 lac per year.

Lock In Period is too high compare to almost no lock in - in Mutual Funds

Premature Withdrawals not allowed

DETAILS YOU CAN READ ON :- http://www.sukanyasamriddhiaccountyojana.in/

Pradhan Mantri Jan Suraksha Bima Yojana Policy

2017-01-19T12:25:00.000+05:30

Pradhan Mantri Jan Suraksha Bima Yojana Policy (PMSBY)

Insurance is not a newer concept to India; however, its reach is still much limited. In spite of so many insurance companies operating in India with their products and services, there are a majority of people in rural areas, who are not at all covered under any kind of insurance. Pradhan Mantri Suraksha Bima Yojana is for them.

These people are those who are mostly below the poverty line and insurance is an unaffordable service for them. PMSBY aims to reach such people with its benefited insurance schemes after the successful performance of Jan Dhan Yojana.

Suraksha Bima Yojana Benefits

The death benefits are up to 2 lakhs
In case of irrecoverable and total loss of both hands, both eyes or sight or one leg or foot, the insurance cover would be up to 2 lakh
In case of lost of one leg, hand, foot, eye or sight, the sum assured would be Rs 1 lakh

Suraksha Bima Yojana Premium

The premium for PMSBY is such that even the poorest of poor Indian would be able to afford it. The premium is just Rs 12 per annum for each member. This amount would be deducted from the policy holder’s saving bank account with an auto-debit facility, in the month of June every year.

If somehow, the amount could not be auto-debited from the policyholder’s account on 01st of June, the policy would commence only when the auto-debit has been done on the account and premium paid. As foreseen, the premiums would remain equally low at least for next few years.

Suraksha Bima Yojana Eligibility

Following are the eligibility conditions for getting a policy

Age limit: 18 to 70 years. The aspirant should have completed 18 years of age or should not be more than 70 years of age.
Should have a saving bank account
Should give a consent letter for auto-debit facility

Suraksha Bima Yojana Features

Here are some of the features of the prestigious PMSBY:

The scheme would be renewed every year with a single year cover at a time
These companies should be willing to offer a scheme similar to the one mentioned under PMSBY and should have adequate approvals and tie-ups for this purpose
Banks would have a free hand in engaging any insurance company that intends to offer the scheme

Suraksha Bima Yojana The scope of coverage

If the individual has a multiple saving account, he/she would be eligible to get just one insurance scheme attached to just one saving account
The primary Know Your Customer document required for getting registered under the scheme would be Aadhar Card
The premium for the scheme would be auto-debited from the saving account of the policy holder
For the starting year, i.e. year 2015, those interested in enrolling for the scheme can do so till 30th of November 2015
If a policy holder exits the scheme during any year, he/she if wishes to rejoin it may do so in succeeding years with the same terms and conditions

Suraksha Bima Yojana Termination

In the event of following situations, the accident cover of the policy holder would be immediately terminated and no benefits would be paid thereafter:

If the policyholder attains the age or 70 years
If the policy holder closes his/her saving account and/or is not able to continue with the premium paying process or minimum balance in the saving account
If the policy holder has opted for more than one policy under the scheme, the other policy except the oldest would be cancelled and terminated
If the premium was not paid due to insufficient balance in the saving account, the policy would be terminated till a period when the policy holder pays the premium
This is a noble scheme that aims to bring the uninsured into the mainstream insurance services. The scheme is much in line with the prestigious PM Jan Dhan Yojana and is actually a continuation of the latter. If the scheme succeeds, at least those living below poverty line in far flung areas would have a sigh of relief in case of event of accidents in their life.

Claim settlement process in surksha bima yojana (PMSBY)

Yes it is a fact that people are really enthusiastic about the launch of PM Suraksha Bima Yojana. Thanks to the innovative thought of PM Narendra Modi a large number of people are availing the benefit of people centric schemes. A lot of people might be skeptical about the benefits of this scheme, but it cannot be denied at all that people are being benefitted and the schemes are ultimately reaching the beneficiaries. Let us delve deep to check out the steps for availing the claim for the Suraksha Bima Yojana.

In the first step, you need to fill up the claim form and submit it along with Death certificate, the original document of FIR or Post Mortem report, Discharge certificate and Insurance certificate at the bank where you are supposed to get the Suraksha Bima Yojana in the savings account.

Then the bank branch shall send all documents to the nearest insurance office and there the scrutiny of the documents shall be done. The insurance company shall transfer claim amount in the bank account of that particular nominee and then notify the nearest branch of that bank.

This is the process and incase any discrepancy is there, the insurance company shall deal with the designated branch and the individual shall be notified immediately.

SOURCE :- http://pmjandhanyojana.co.in/

Impact of PPF Rate reduced from 8.7% to 8.1 %

2016-03-18T18:48:00.000+05:30

Impact of PPF Rate reduced from 8.7% to 8.1 %

As expected, government do not want to take burden on it's own balance sheet, so they are going to pass it on to consumer by linking it to Gsec Rates in India.

Example :- if someone is investing with a view that one will get return of 8.7% compounding returns over a period of 15 years of tenure of PPF, now that charm is gone as PPF rates are volatile.

Someone having 20,00,000 Balance in PPF which were earning around 1,74,000 per year (tax free) will result in earning 1,62,000 (tax free) i.e loss of Rs. 12,000 loss every year from this time.

above all, no one understand the Inflation scenario when investing in PPF.

Some Mutual Funds are Factory of NFO's

2016-02-18T21:51:00.001+05:30

In recent past we have seen many NFO's because some infra themes were not there so one needs to add one. but in past 1 year so many big and some small fund houses/ mutual funds have started business of asset gathering, everyone are in league of becoming the 1st prize winner, they are in race. some of them feel NFOs are growth engines to build their assets and profits.

What happens when you have more and more schemes?

what happen in recent time - all people associated with mutual funds get more incentives as new offer comes in, fund houses can spare more money as fund sizes are small initially.

some of the fund houses / mutual funds have similar schemes in their portfolio but they are still not merging it because everyone earns more on small funds. in this race of earning or making company big, who suffers is investor.

So what should investor do?

one should search a good advisor, good advisor means - he or she should be working in your interest only not in companies favour. search for unbiased financial advisor, ask him to show his/her investment portfolio or how much sip he or she is doing ?

we come across people who never did a single sip or never invested in mutual funds and advising clients for investing in mutual funds.

let us understand that amcs are manufacturers, they will produce what is demanded in market, i do not see any harm in it as long as their core funds do not suffer.

so, one should hire a financial advisor who works in your favour and gives unbiased advise to you. what is wrong if someone charges fees to you for advising the right way ? its advisable to pay fees rather than suffering whole life with bad fund selection.

think over it..........

Blood Bath In Indian Equity Market, A Perspective

2016-02-11T20:13:00.001+05:30

The first common reaction in seeing market 800 points down in red is, oh my god! it is the end of the world - It feels like it’s going to go down further, I should have waited some more time to make an investment. ask yourself (how much money is in equities of your total net worth ?)

So let us understand what share market (sensex) is:-

When you buy Equities- you buy a SHARE/ Partnership / Holding / Business by investing in particular stock / company / equity mutual funds (equity mutual funds consist of around 20-40 stocks in one particular fund)

Let us understand that equities are for appreciation, it takes time to build businesses, it may not give you 8%-9% yearly returns like your FD’s / PPF or Post office money, but it gives you inflation adjusted returns in long term as the businesses grows / makes profits – it reflects in balance sheet of the company & stock prices goes up or down.

Let me also ask you one thing- what if gold prices fall down by Rs. 2000 per 10grams? 90% of people rush to buy gold – because our parents told us – it will appreciate and will never go down, is it so? What if you bought gold @ rs. 30,000 per 10grams and its trading today at 28000? Don’t you think you lost money? You buy more? Right? Because of emotional bonding with gold? Daughter’s marriage? (That too after 20years) because you are not selling it, you are ready to hold it for next 20years. Isn’t it? You will be shocked to know, Gold has given 1% extra then inflation rate till inception, but you never see that because you never sell gold in your lifetime.

One more example – Real Estate

We buy real estate – home / office / land / resort when it crashes right? People never count expenses while buying it – Loan interest / Processing Fees / Registration cost / Maintenance Cost / Municipal Tax Bill / Electricity bill / Brokerage paid to buy or sell / just add everything to your property and try to sell it, you will have answer to it J

so what is going to happen to sensex now ? people around you will talk about sensex will go down to 21000 / 18000 / 16000 ? or some will talk about 6000 now, everyone is bearish once it goes down as if all businesses will get to zero / or will shut down next day morning ? it never happens like that, businesses goes through ups and down in life like your real estate or gold or any other asset class which is trading in market, some businesses makes profits and share price goes up – some make losses and price goes down.

So what is to be done ?

In my view – we should park our money as per our need – use equity related schemes only if you have 5years of view or more than that – keep your emergency fund ready, usually 9 month’s salary (in case if you loose job or any other unexpected expenses you feel can arise) – invest in short term debt / bank fd / debt funds for 1-3 year money (see your tax slab before investing) – invest by SIP – STP mode and top up your sip’s or invest lump sum whenever you have money to invest (not because market is up or down) small amount can make huge difference if invested regularly for a longer period. Do not listen to people or get scared about market going down because it is the nature of market to be volatile. Equity have always outperform Gold – Bonds – Real Estate in 10-15 year time horizon – the only asset class which is far superior in giving inflation adjusted returns.

If you buy gold when it corrects / if you buy real estate when it goes down / this time sensex is down from 30,000 to 22000 levels – I feel it’s a good time to top up your SIP’s or invest in lump sum- you have a choice to regret later.

Tomorrow's headline in news papers will be "Blood Bath In Share Market - Investor wealth wiped off 3.1 Lac Crore" - sensex down to its 2014 levels and blah, blah, blah, never ending discussion will be on TV's) it's their business - isn't it ?

your business is to see - its 2years low - start investing - or start complaining in next bull run.

#aapkaadvisor

BEGAANI SHAADI ME ABDULLA DIWANA by Mr. Nilesh Shah (Kotak Mutual Fund)

2015-08-26T13:49:00.001+05:30

BEGAANI SHAADI ME ABDULLA DIWANA

Many years ago I was working in a Foreign Company. At that time U.S. was dropping bombs in Afghanistan. There were reports that many a time bombs were being dropped waywardly and were hitting unintended targets. One day I get a call from an overseas colleague of mine checking if we were all safe in Mumbai as the US bombing was hitting unintended targets. To my well-meaning friend distance of more than 2500 KM was not good enough to stop a wayward bomb being dropped in Kabul from hitting us in Mumbai. May be he was influenced by the map proximity.

This kind of incidence shows the reaction to events in faraway places.

When 9/11 happened, Indian interest rates jumped up significantly as a risk of sell off. It took strong intervention by RBI to bring sanity in rates market. Irrationality can prevail in short term.

The world is worried that China is slowing down. China is devaluing their currency to get an edge for their exports. They can do a replay of 1997 Asian crisis on a much larger scale.

The reality is that most of the other EM currency has dropped more than Renminbi. Today's China cannot do a devaluation of the scale with which it got away in Mid 90s.

From an India point of view depreciation of Rupee is critical to maintain export edge as our interest rates are high and our productivity is low compared to our peers. Rupee depreciation is a tactical necessity rather than a sign of weakness like in Russia or Brazil.

China slowdown is a big positive for India as it pushes more investor's to look at an alternate model of balanced growth rather than credit led growth. China's credit to GDP Ratio is more than two times that of India.

US dollar is appreciating against most EM currencies and is putting pressure on US growth and exports. US Fed will be compelled to keep dollar strength in mind while looking to raise Fed rates. If not the start at least the quantum of Fed rate hike will be lower than that expected by the market. US 10 year yield is indicating the same at below 2% after a long gap. Slower rise in US Fed rates will help India to cut interest rates and attract capital flows.

There is a worry that with oil prices dropping below USD 40 world is moving in to recession or slower growth. Actually India is a large importer of commodity. We import 1.4 billion barrel of oil on a gross basis. Every USD 1 drop in oil price helps us save about USD 800 plus million in import bill. Today with oil dropping below USD 40 our incremental saving will be close to USD 16 billion plus since June 2015 high of oil prices. India is a beneficiary of dropping oil and commodity prices.

The government, unlike in the past has used oil price dividend of more than USD 60 billion to clear fiscal mess.

Currently, India is having good macro fundamentals. Even with increased government spending, the fiscal deficit is under check at below 4%. CAD is under control. Inflation is under control with WPI at negative level for last nine months and CPI at 3.8% is below RBIs target level. Indian interest rates are at a level where they can be cut to support growth. IIP growth is recovering. Benefit of improved government spending is yet to fully percolate to economy. With recent depreciation of Rupee vis-à-vis USD, Euro and Yen our exports will get support. It is not that we are a perfect nation, but we are better than most of our peers. Most nation would like to have our problems rather than battle with their current issues.

FIIs have been a seller in Indian equity markets in recent times. Some of this outflows is from ETF redemptions and EM fund redemptions. Globally equity funds have seen massive outflows. Some of this has to reflect in India selling despite our fundamentals. Some of this selling is led by sovereign funds of oil nations, which need to put money in domestic economy. It is likely that for next few weeks this selling may continue. Good part is that domestic participation is on rise with Provident Funds making a beginning and mutual funds receiving good flows. Many of the day traders have lost lot of money. They are spreading views as if the world is coming to an end. Pictures above are showing their mind set. It is their frustration which is reflected into fear mongering and gossip spreading. The reality is not as bad as is being portrayed. There may not be a v shape turn around but certainly there is a U shape recovery ahead.

We may not make a bottom in markets till globally things settle down. We will be volatile in line with global peers. However the governments and central banks around the world are not going to sit around looking their market collapsing. They will take corrective actions by way of coordinated actions. More money will be thrown at their economy – QEs and TARPs will come back in some other acronym. The coordinated actions will calm the market and reduce volatility creating a foundation of recovery for Indian markets.

If our domestic participation is stronger than we will have lesser pain and quicker recovery. If our naysayers will have upper hand our pain will be higher and recovery will be longer. There is no doubt in my mind that FY17 will see strong growth in corporate earning to support markets.

Indian market capital is down by about USD 200 billion from TOP. At 10% direct retail ownership, it is a loss of USD 20 billion. It is a fraction of losses suffered by them on their gold holding. If domestic investor remains opportunistic, then they will benefit from the volatility.

Correction in most global markets is driven by local factors. For e.g. Chinese markets are down as they have run up significantly in last 18 months. Russia and Brazil are down due to commodity based nature of their markets. NASDAQ is down as valuation of some of their Tech Cos are showing excesses like 2000 technology boom and bust.

In summary we believe

Global volatility is here to stay for some time.
Drop in commodity price is negative for few EMs like Russia and Brazil but hugely beneficial to a country like India.
FII selling is led by oil nation's sovereign funds, GEM funds and ETFs. It is likely to continue for a while.
Domestic participation will determine the extent of drop and speed of recovery in Indian markets.
We are more likely to see a U-shape recovery than a V-shape recovery as FY17 corporate earnings recovery will support markets.
Provident Fund participation can also provide additional support.
In the short term it will be futile to predict bottom of the market.
Central Banks around the world will swing into action to support markets sooner than later.
Their coordinated action will soothe global volatility.

It is better to divide your investment in two parts. One part invest through SIPs in large-cap funds and blend of large and mid-cap funds. The other part invest gradually on current corrections in market till March 2016.

We have all seen the pain of 2008 and subsequent gains. Today's global volatility is giving similar opportunity. Don't let notional gain or loss deter you from the real goal. No one can enter at bottom or get out at Top. No one can predict how markets will behave tomorrow. All we can say is that every correction like today is making Indian markets more attractive to invest. A disciplined and contrarian investment will pay back after the volatility subsides.

Happy Investing and Regards,

Nilesh Shah

Managing Director

Kotak Mutual Fund

Mutual Fund Investment are subject to Market Risk. Please read offer documents before taking any investment decision.

original article from :- http://assetmanagement.kotak.com/web/guest/begaani-shaadi-me-abdulla-diwana

Sensex crossed 29000, What Next ?

2015-01-28T16:10:00.000+05:30

Sensex crossed 29000, What Next ?

Every time sensex crosses new numeric level, the same question arises in everyone's mind, right?

At 9000 sensed level suddenly we all feel, it will go to almost zero and heard someone saying market will get close one day, but it didn't happened ? Right ?

Same way now at 29000 level, people feel it will cross 30,000 and then cross 1,00,000 soon ? Really ? Can you predict the same ? Businesses do not stop like that.

So how this numbers really comes from ?

Lets understand, sensex is almost a mirror image of Indian corporate earnings and how they really perform in their business (how their profit grows).

Is it so Complex to understand ? Not at all if you see price and sensex numbers.

Let's learn it with a simple example.

You invest 1 lac in a company / stock, if company do well and generate a profit of say 15%, it will sooner or later reflects in the balance sheet of the same company. if the same company grows at 15% cagr for next 10/15/20 years, imagine a kind of wealth you can create vis-a-vis you invest in Bonds or Fds.

Now you may argue, sometime companies make profit for 5-10 Years but it is not reflecting in a particular stock price, and suddenly you see stock price roars 100%, yes it happens and it will happen in all market across the world, because someone wants to buy and the other feel its cosly, so he sells, that is how market works.

To sum up, equities will reflects the same valuation as the profit or loss of the particular business will behave.

What now ?

1) One should look at investment horizon of 10year plus in equity markets or mutual funds,

2) Do not expect a miracle, 15% cagr is a very good return over 10 year period.

3) Map your financial goal like retirement/kids education etc., to the investment you are doing...and keep doing it.

4) Put that amount of money which you will not require for next 10years,

5) Have faith in all of the above 4.

Why equity will give inflation adjusted returns ?

2015-01-24T21:52:00.001+05:30

As we always say, simple things are always tough to implement.

When we talk about shares of a particular company ! The first thing which comes to everyone's mind is business that company is doing? Right ?

Now let us understand, when a company is making a product say for example in rs. 100 and out of that 20 rs is profit they make on one product. If the price rise / if inflation goes up and

now the same thing is costing them rs. 100, then they will not reduce the profit to zero and sell the product right ?

the business owner will pass that inflation or price rise to the end consumer and they will not reduce the profit. so when you invest in shares, the inflation always gets adjusted in equity as explained above.

I Can Make Huge Money In Stocks If I Invest Directly: - Somebody told me last week

2015-01-09T15:45:00.000+05:30

I Can Make Huge Money In Stocks If I Invest Directly: - Somebody told me last week

If everyone makes money in equity, then why there are only 3% of investors in the stock market? and rests are into FD's, Gold, Real Estate, and all?

You may be right, Say for example, if you have started investing in equities in 2007-2008, what you may have bought?

Reliance Infra, DLF, Suzlon, Orchid, Rcom, and so on..... (They all were the talk of the town).this is better known to the investors who already burnt their fingers.

I must throw some light here – they all are below their investment price- some are even less than half the price.

It’s always said, Retail investors never make money as big as Seasoned Investor makes(the one who does research or invest for long term through mf), retail investors come into market when other runs out, they would love to buy stocks when its already in bubble phase and sell it when actually, its time to buy stock, or in investment language- over priced High PE stocks, feeling companies are going to make huge profits by selling their goods and earning on the same...agreed...but when markets are low, these companies are available at decent discount/prices, still they value the business when the prices are too high, one of the examples is Page Industries (PE of 71 against Industry PE of 41), also one has to understand the underlying risk into particular stock – industry, & industry-related regulations when you invest directly in stocks.

One can invest in direct equities only if:-

You read balance sheets on a regular basis (only if you can analyse it)
You understand P&L, ROE, PE and so on.
You understand Business of the companies you invest in.
You understand the risk in the business such as (market share of business going up or down) etc., etc.,

I came across such a question that mutual fund has only grown my money 4-5 times & stocks went up by 40 times. Hahahahaha,

Some more things to look here:-

1^st thing, You have not invested in that stock which has gone up by 40 times.
If yes, you are the best fund manager and you should not invest through mf.
One should look at a holding period if they feel went up by 40times.
Most retail investors sell the stock/mf when it gets doubled; they never hold it till eternity.

Happy Investing,

2014-15 income tax exemption limit in the new slab

2014-07-10T15:04:00.000+05:30

2014-15 income tax exemption limit in the new slab

Income	Tax rate
Upto 2,50,000	NIL
2,50000 – 5,00,000	10%
5,00,000-10,00,000	20%
Income above Rs 10 Lac	30%
1 crore and above	30% Tax 10% surcharge

Senior citizens above 60 years and below 80 years

Income	Tax rate
Upto 3,00,000	NIL
3,00,000 -5,00,000	10%
5,00,000 – 10,00,000	20%
10,00,000 & above	30%

Taxpayers over the age of 80 to the tax slab

Income	Tax rate
Upto 5,00,000	NIL
5,00,000 – 10,00,000	20%
10,00,000 & above	30%

Bank Shares Vs Bank FDs

2014-06-23T20:46:00.000+05:30

Banks are giving your money at higher interest to others as loan. To elaborate, when you put Fd in any of the bank, they lend some of your money to certain retail or corporate. For example you are doing an fd at 8%, bank pays you fix rate of 8% and against that they lend the same money in housing loan / personal loan/ car loan / mortgages etc.,

The interest rates are approx 9% to 22%, depending upon the nature of loan.

So if you calculate, banks are paying 8% on fd and lending the money at 12-15%. The spread after expenses or after taxes will add to the balance sheet profit for the bank and the same reflects in the bank share prices sooner or later. I know it is not at all fixed, but the example is here with us, HDFC Bank has grown 30% quarter on quarter since many years, now also its growth is approx 25% qoq,

This simply says that banks are making money on your money?

Don't you think ? Its advisable to invest in Bank Stocks rather than putting an FD in the same Bank ?

So you think Your Portfolio is Doubled ?

2014-06-22T10:52:00.000+05:30

Your money got doubled ?

If someone feels their money got doubled ? Again have a look at your portfolio....i mean entire portfolio, with real estate, bank fd, ppf,epf,gold, company fd, stocks, etc.,

Indian investor is having less than 3% in equity, i do not say that, actaully this is an actual figure in india.

People in india are risk averse, are you kidding ?

Risk averse? Lots of corporates where indian retail investors are putting their money in FD's are not repaying their capital also. But as the interest rate looks attractive at 11%,12%, etc., they feel they will get more returns, but they are not ready to understand or not aware that it is a credit risk they are taking to get an extra mile of just 2%.

Now coming to the point, as our debt like PPF, FDs and other company deposits are giving 5%,6% or 7%,8% returns after tax, i am just reminding you about inflation which is around 9-10% today.

Some people feel they have 20 lacs in PPF that will take care of their retirement, is it ?

What if government reduces PPF rates to 7% in coming future ? I am not saying it will happen soon. But gradually it may happen and it will impact the full balance on your ppf account.

Say for example if you have 20 lacs in your PPF and it adds 1.6 lacs in your ppf considering 8% annual return, now if interest rates comes down to 7%, it will add 20k less, ie. 1.4 lacs and that too every year as you can not withdraw the full amount till it gets matured, so your money gets locked up at lower percentage which you have never thought of in your life. I do not say people should avoid PPF, but they should understand interest rate risk.

The only asset class which beats the inflation is equity across the world in last 25 years.

So if you think your one lac rupees in equity is now two lac and you have 20 lacs in ppf. In this scenario i do not feel any significant impact of wealth increase happened in your portfolio.

Now imagine the reverse, twenty lac in equity portfolio and if get doubled ? The choice is entirely yours.......think it......and start understanding equity.....time in the equity market is only important.

Long Term Equity Mutual Fund SIP Returns

2013-12-13T21:39:00.000+05:30

HDFC Equity Fund
SIP Investments	Since Inception	15 year SIP	10 year SIP
Total Amount Invested (Rs.)	11,35,000	9,00,000	6,00,000
Market Value as on November 29, 2013 (Rs.)	1,56,69,501.07	60,55,473.21	13,40,883.44
*Returns (Annualised)(%)**	23.72%	22.68%	15.37%
Market Value of SIP in Benchmark# (Rs).	43,43,412.04	27,30,778.04	9,80,754.62
Benchmark Returns (Annualised)(%)#	12.71%	13.60%	9.50%
Market Value of SIP in Additional Benchmark# # (Rs).	41,00,695.35	26,56,395.51	10,44,771.41
Additional Benchmark Returns (Annualised)(%)# #	12.20%	13.28%	10.69%

HDFC Growth Fund
SIP Investments	Since Inception	10 year SIP
Total Amount Invested (Rs.)	7,95,000	6,00,000
Market Value as on November 29, 2013 (Rs.)	32,67,446.23	12,12,155.48
*Returns (Annualised)(%)**	19.55%	13.48%
Market Value of SIP in Benchmark# (Rs).	22,35,501.06	10,69,662.63
Benchmark Returns (Annualised)(%)#	14.51%	11.14%
Market Value of SIP in Additional Benchmark# # (Rs).	21,23,972.00	10,44,771.41
Additional Benchmark Returns (Annualised)(%)# #	13.82%	10.69%

HDFC Prudence Fund
SIP Investments	Since Inception	15 year SIP	10 year SIP
Total Amount Invested (Rs.)	11,90,000	9,00,000	6,00,000
Market Value as on November 29, 2013 (Rs.)	1,29,41,336.51	49,95,725.91	13,10,364.46
*Returns (Annualised)(%)**	20.60%	20.50%	14.94%
Market Value of SIP in Benchmark# (Rs).	N.A.	N.A.	9,78,145.42
Benchmark Returns (Annualised)(%)#	N.A.	N.A.	9.45%
Market Value of SIP in Additional Benchmark# # (Rs).	43,74,126.99	26,56,395.51	10,44,771.41
Additional Benchmark Returns (Annualised)(%)# #	11.75%	13.28%	10.69%

HDFC TaxSaver
SIP Investments	Since Inception	15 year SIP	10 year SIP
Total Amount Invested (Rs.)	10,60,000	9,00,000	6,00,000
Market Value as on November 29, 2013 (Rs.)	1,55,15,296.64	60,47,933.36	12,67,020.05
*Returns (Annualised)(%)**	26.13%	22.66%	14.31%
Market Value of SIP in Benchmark# (Rs).	38,62,481.02	27,30,778.04	9,80,754.62
Benchmark Returns (Annualised)(%)#	13.20%	13.60%	9.50%
Market Value of SIP in Additional Benchmark# # (Rs).	36,28,816.24	26,56,395.51	10,44,771.41
Additional Benchmark Returns (Annualised)(%)# #	12.60%	13.28%	10.69%

HDFC Top 200 Fund
SIP Investments	Since Inception	15 year SIP	10 year SIP
Total Amount Invested (Rs.)	10,30,000	9,00,000	6,00,000
Market Value as on November 29, 2013 (Rs.)	86,76,875.53	56,15,977.68	13,49,788.37
*Returns (Annualised)(%)**	21.71%	21.83%	15.49%
Market Value of SIP in Benchmark# (Rs).	37,53,145.59	28,20,541.22	10,11,031.22
Benchmark Returns (Annualised)(%)#	13.61%	13.98%	10.07%
Market Value of SIP in Additional Benchmark# # (Rs).	35,40,444.96	27,64,615.12	10,69,662.63
Additional Benchmark Returns (Annualised)(%)# #	13.03%	13.74%	11.14%

HDFC Balanced Fund
SIP Investments	Since Inception	10 year SIP
Total Amount Invested (Rs.)	7,95,000	6,00,000
Market Value as on November 29, 2013 (Rs.)	25,03,177.76	12,33,500.33
*Returns (Annualised)(%)**	16.02%	13.81%
Market Value of SIP in Benchmark# (Rs).	N.A.	9,78,145.42
Benchmark Returns (Annualised)(%)#	N.A.	9.45%
Market Value of SIP in Additional Benchmark# # (Rs).	21,23,972.00	10,44,771.41
Additional Benchmark Returns (Annualised)(%)# #	13.82%	10.69%

Investing in this funds in past, created huge wealth for its investors

Cycling & Equity – Four Lessons

2013-12-10T16:38:00.001+05:30

When I was a kid...I love to do cycling and going out with friends, we use to have lots of races on cycle.

But at the early stage, I was afraid to paddle the bicycle....the 1st paddle was tough for me...

it required a lot of courage.....and confidence. ....I started learning bicycle but I failed so many times, slipped off it, cycle punctured, small accidents, but in the end, I learn that by doing constant efforts of keeping my eye on it & balanced it quiet well.

Sometimes I fell down looking here and there, what my friends are doing it, how far or near they are. But after making a small mistake I learned that focus and balance is the only thing from which I will be able to manage it well.

But do you remember the 1^st day of cycling? The 1^st paddle you put your leg on? it was scary, isn't it? True? But what now? After years of practice, you can run the cycle in zig-zag ways too? Seen the same people riding a cycle on the levels of mountains nowadays, Does it happen overnight?

It requires practice....consistency efforts....trust in you that you will not fall off it.

As I was a kid, people use to give me lots of advising on cycling when I go out to ride, obstacles will come, look here and there, look at the bus or big vehicle and then ride it on side of the road not in between, but I ride on and on and on and never complained about anything at all.

Earlier when mom used to send me for buying groceries, though it was very near to my home, yet I was keen on cycling all the time, but as time passed, I got fed up & my interest went down to use the cycle for the same.

Lessons For Equity:-

Obstacles will come, Economic Cycle, Political Instability, Government Failure, Currency & Bond movements, Sub-prime issues (USA -2008), FII’s coming and leaving India, Inflation Worries, GDP, Fiscal Deficit, CAD, Budget, Scams, War, etc., etc., do not eye off your Financial Goal, Do Attach your investments in line with your financial goals. Do not think about obstacles and stay Invested in the long term.

To be the expert in any field, one needs to stay on, keep trust in oneself, practice, and holding on to dream, Vision....same is with equities - we need to invest in equity for a long term, accumulating the amount for our nest egg for next 10-15-20 years of different financial goal, whenever you have money-monthly, quarterly, yearly or when you get bonuses, salary hikes, profit. One should start investing on a regular basis for long term to get rewarded on equity and its compounding effect.

There will be days of Up’s and Down’s where holding to equity for long term also looks boring, as we have seen sometimes people get fed up by non-performance of equity & get out of equity, as soon as they get out Equity starts performing at its best-ever J sometimes people start comparing with FD’s & Bonds vis a vis Equity non-performance. Equities take time to grow as there are economic cycle ups and downs.

Like in Cycling, we never look here and there while riding on to it J we should not regularly look at sensex or nifty or any index as we are investing in equity for longer term to fulfill our financial goals (goals can be classified as Retirement, Child Education, Vacation abroad, Child Marriage Planning, Emergency money planning, buying a house or car, etc., etc., the only thing which matter is keeping your eye on the goal and keep investing for it.

So, Keep Balancing With Your Financial Goals & Stay Invested In Equity

Equity ? What is it ?

2013-12-09T21:08:00.000+05:30

Equity ? What is it ?

Equity = Ownership = Partnership = Investment in Business

To make it simple, Equity Means doing Business or Investing in a Particular Business and earning profit from it.

When you start a new business, think of an idea & start implementing the same, risk is always there on the performance of business, the probability that business will prosper or not ? You invest some amount & expect some returns over a period of 5-10-15 years. Now you are a share holder / owner of business / partner in business.

People talking about building empires & diversifying across the countries, requires capital. And when you put money into business, doesn’t necessary mean it will prosper, or do well. And when you do not have too much of capital, you offer partnership to someone who is going to be partnering you in business with money. It means you Share.

The underline says that when you put your money into business, start investing in the same, earn profit or incurred loss on the same, actually creates the value in business and it reflects in overall wealth or in shares. The profit reflects in balance sheet / business and as a % of share holding, it is then transferred into the hands of Partner / owner / Share Holder. So whenever companies make profits, it reflects in Share Price of that particular business.

But when you make profits, it does not mean it will reflect in share price on the same day. Like, we have seen companies making huge profits since 3-5 years and stock prices almost are the same, it means there are certain other factors which also affect the share prices; like business expenses / debt taken by companies, impact of economic reforms, market valuations etc., etc., In a situation where prices of stock remains the same & profit of companies are growing at certain % year on year basis, it means market will adjust the stock prices according to the profit earn by particular stock / share / company / business. The same way if company is making losses, it will reflect on the negative side and adjust the share price accordingly.

So remember, when you buy a company / stock, it takes time to grow, not necessary that it will start generating profit & cash flow from next day, as it is a lengthy procedure, like investing money, buying land, building, machinery, recruiting staff, production, packing, transit, marketing and selling or branding of the product. It’s like growing a babie, baby do not start walking in a day or two rights? It takes time to earn profit out of business.

Income Tax - Basic Questions

2013-12-05T21:17:00.000+05:30

What is Income Tax?

It is a tax imposed by the Government of India on any body who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India.

What do you mean by income earned in India ?

Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.

Who administers the Income-Tax Act?

The job of monitoring the Income-tax collection by the government is entrusted to a Department called Income-Tax . This department functions under the Department of Revenue, Ministry of Finance, Government of India .

What is the period for which a person s income is taken into account for purpose of Income tax?

Income earned in the twelve months contained in the period from 1st April to 31st March (commonly called Financial Year [FY]) is taken into account for purposes of calculating Income Tax. Under the income tax Act this period is called a Previous year .

What is an Assessment Year ?

It is the twelve-month period 1st April to 31st March immediately following the previous year.In the Assessment year a person files his return for the income earned in the previous year. For example for FY:2006-07 the AY is 2007-08.

Who is supposed to pay Income Tax?

Any Individual or group of Individual or artificial bodies who/which have earned income during the previous years are required to pay Income tax on it. The IT Act recognizes the earners of income under seven [7] categories. Each category is called a Status . These are Individuals, Hindu Undivided Family [HUF], Association of Persons [AOP], Body of individuals [BOI], Firms, Companies, Local authority, Artificial juridical person.

When Companies pay taxes under the Income tax Act it is called Corporate tax .

Is Income tax Act applicable only to residents?

No, The Income tax Act applies to all persons who earn income in India. Whether they are resident or non-resident.

Who is a resident?

If an individual stays in India for 182 days or more in a year, he is treated as resident in that year regardless of his citizenship. If the stay is less than 182 days he is a non-resident.

How can I know whether a company is resident or non-resident?

A company is considered as resident if it is incorporated under the Indian Companies Act. A foreign company can also become a resident if the control and management of its affairs is done entirely in India during the previous year.

How is resident/ non-resident status relevant for levy of income tax?

In case of resident individuals and companies, their global income is taxable in India. However non-residents have to pay tax only on the income earned in India or from a source/activity in India.

INDIA Is Not Growing At All ? Really ?

2013-12-05T20:37:00.001+05:30

Dear Readers,

This is going to be a really effective read, trust me.

Let me share some data here.

If you compare your income today (2013) and your income in (2002), You are earning well right ?
Consumption ; Disposable Income - Rising
Infrastructure is far - far better than 2002 ?
Indian Forex Reserves are 20x in two decades.
India's Ranking in GDP (in PPP Terms) in 1993 was 9th rank is now in 3rd Rank.
FII's Investing Agressively in India. - If india is down graded, if GDP is not growing in india, if political & corporate failures happening in india....beware....still FII's are investing heavily in india......You as an investor are selling & they are becoming wise for owning your shares too.

the only question remains now :- Are You Investing In India ? Have You made money in Equities in last 25 years ? Retail Investors are always complaining about burning their finger in Equity, the one question i want to ask to all investors.....

if you have invested in Mutual Fund for more than 10 Years, Chances of Loosing money in Equities are Zero & Chances of Making money are 100%.

Think a lot on that right? Now is the time to implement.....Now or Never...Choice is Yours.

“Understand Equities – The Sachin Tendulkar Way”

2013-12-04T21:35:00.001+05:30

“Understand Equities – The Sachin Tendulkar Way”

Consistency:- As we all see in the case of Sachin (24years of consistency), practice makes perfect – so true with Equity too, (17% plus CAGR in last 30 years) Equity gives you constant returns over a period of time. Like Sachin takes 1s and 2s and hits fours and sixes whenever the right delivery bowls over, in Equity it’s also proven that one should at least stay invested over a longer period for making good inflation-adjusted returns.

Aggressive Stance:- We have seen Sachin being aggressive at times. We have a lesson to learn here. One should invest in equity aggressively, whenever the market goes down and sentiments are very low when no one talks about equities, that is the time one should get aggressive and allocate more money to equity, you can get better returns, on the other hand when people around you get bullish on equity, everyone talks about equities, then that time is to allocate fewer amount inequities.

Commitment:- Like Sachin’s commitment to Cricket in last 24 years, one should with the same dedication, work towards their financial goals & allocate their money in equity on the basis of their goals, time to achieve the goal, the risk you can take to achieve, and of course the emotional tolerance of risk-taking (losing money if something goes wrong).

Powerful:- Sachin is too powerful when it comes to his signature cover drive, the same way when you invest in equity on regular basis, with consistency, commitment & aggressiveness – Equity gives you the power of compounding effect, it takes years to be Sachin Tendulkar, practicing every day like Sachin did it every time before his match in last 24 years. The same way one should start investing in equities at the early stages of life and keep investing on a regular basis.

Performance: - Have you seen Sachin not performing in many matches right? Getting out in matches on zero and 1 and 2. So as equities, it’s the nature of equities to be volatile, of course, they do not perform every day, it’s not easy to make 100’s in every match you play– impossible right? But when it comes to performance – we should see it over a period of time, yes time! You need to give time to equities, in the end, they perform. Patience pays.

Super Great Results:- Sachin Tendulkar after a 24-year cricketing span, will now be awarded by Bharat Ratna – the same way equity will pay you heavily, compounding super-rich returns if you stay invested for next 24 years.

As we say, Rome was not built in a day, one can’t be Sachin without practising for years, the same is the case with equities. It takes time to get a multiplier effect, fasten your seat belt and stay invested for years.

Like Sachin will always remain as an example of the best in Cricket – Equity will remain superior in class as the only category among investor since 1979, which has given super returns than any other asset class in India.

So, if you want to be Sachin in terms of wealth, follow equities – understand equities. Start with small amount – Decide your goals – Stay Invested in Bad Times – You will be rewarded by a Bharat Ratna of Equities by Market.