[{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/categories/","section":"Categories","summary":"","title":"Categories","type":"categories"},{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/tags/goal-planning/","section":"Tags","summary":"","title":"Goal Planning","type":"tags"},{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/categories/goals/","section":"Categories","summary":"","title":"Goals","type":"categories"},{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/tags/inflation/","section":"Tags","summary":"","title":"Inflation","type":"tags"},{"content":"\rThe Shock and the Start\r#\rIn January 2025, a woman suddenly lost her husband. Grief aside, she was soon faced with the daunting challenge of claiming her late husband\u0026rsquo;s mutual fund investments—worth approximately ₹50 lakhs. What followed was a journey filled with administrative hurdles, emotional fatigue, and systemic inefficiencies.\nThe Complexity Unfolds\r#\rThe deceased had 23 mutual fund schemes spread across 9 different Asset Management Companies (AMCs), sourced through 4 different distributors —including a few direct schemes. Additionally, two of the schemes were in demat mode. Despite having nominated his wife in all schemes, the process wasn’t as smooth as expected. The AMFI guideline (available here) spells out the transmission procedure. For each AMC, the following 7 documents had to be submitted:\nTransmission Request Form (T3) Death Certificate (notarized and attested by claimant) Self-attested copy of nominee\u0026rsquo;s PAN Nominee\u0026rsquo;s KYC acknowledgement (status must be registered/validated) For claims up to ₹5 lakh: Nominee’s signature attested by bank manager (Annexure-Ia) For claims above ₹5 lakh: Signature attested by notary public or Judicial Magistrate First Class Additional ID proof (PAN/Aadhar) of the deceased, notarized and attested Running from AMC to AMC\rFor just 9 AMCs, I had to prepare 63 separate documents. The process was so paper-intensive and fragmented that 3 applications were rejected over minor technicalities—forcing painful rework and resubmission. Among these were 9 documents attested by a bank manager, 2 TRF forms and 9 death certificates attested by a notary, and multiple self-attestations by the claimant.\rDue to minor name mismatches, even the same RTA—serving two different AMCs—insisted on two separate affidavits to confirm that the deceased's name, though consistent across PAN, Aadhaar, and death certificate, didn’t match their records. One AMC went a step further and demanded an indemnity bond.\rIn total, I made nearly 70 phone calls—repeating the same explanation over and over—hoping for a quicker resolution. Same documents had to be re-sent to the same office which would again process from the beginning. What should have been a simple, compassionate process stretched over three exhausting months, from March to May 2025.\nThe Hurdles Faced\r#\r1. Spouse – Not KYC\r#\rI first had to ensure that spouse PAN card is KYC Validated and all the documents were submitted. Without this no AMC will even entertain your document.\n2. No Acknowledgment\r#\rNo acknowledgment was provided when the documents were sent via Speed Post or any courier as confirmed by the investor. It required several follow-ups or in case of a success or rejection, the customer came to know that her documents are getting processed.\n3. Signature Mismatch\r#\rEven though the nominee signed all forms carefully, some AMCs claimed signature mismatches. In 3 instances, the transmission was rejected until escalations and follow-ups led to resolution.\n4. Name Mismatch\r#\rThe name in the AMC folio differed from the name on the PAN, Aadhar, and Death Certificate. Despite Aadhar card linked to PAN, Death Certificate issued only via Aadhar card, and NSDL document showing the entire list of folios under the same PAN and email id, some AMCs demanded an affidavit to prove both names refer to the same individual. Some requested for an indemnity bond as well.\n5.\tDemat vs non-Demat\r#\rMutual fund units held in demat form require a completely different transmission route—handled through the Depository Participant (DP). The AMC rejected those units outright, adding confusion for the nominee.\n6.\tNo Nominee? Good Luck!\r#\rIn another folio, where there was no nominee, the process became significantly more cumbersome. Legal heirship proofs and indemnity bonds are needed, and timelines get extended.\n7.\tCost of obtaining your money\r#\rDeath Certificates were about 9 and you need it notarized. Unfortunately, notary charges were about Rs 500 per notary. Moreover, if it goes above Rs 5 lakhs, Transmission request also has to be notarized. There were 2 such documents and therefore add this to notary charges. Then apparent name issues, so Rs 1000 per affidavit. There were 2 such affidavits. We had to send 10 couriers as 1 AMC rejected the documents. Courier charges are Rs 100 and above. This is the transmission cost. Add time to this and you would know where this stands!\n8.\tEmotional \u0026amp; Practical Strain\r#\rThis wasn’t just paperwork. The widow was tending to two children—one in school and the other in college—while also managing a home and a loss. While a person having no source of income, in such a situation, chasing documents and resubmitting forms was a cruel addition to her pain.\nPositive Exceptions\r#\rNot all AMCs made the process difficult. A few—such as Mahindra Manulife, Tata Mutual Fund, HDFC, ICICI, Edelweiss, and Quant —handled the documentation efficiently, without unnecessary delays or objections. Their promptness was a welcome relief during a difficult time. I’ve also had the opportunity to build a strong professional rapport with some of them over the years, which made communication smoother and more reassuring.\nRegular or Direct\r#\rI often wonder about the experience of investors who choose the direct mode—especially in situations where the spouse must initiate the transmission process without any personal point of contact. Imagine handling this across 29 or 39 mutual fund schemes, navigating virtual customer care channels that may treat it as just another transaction, facing signature rejections, and having to prepare affidavits. Regardless of whether one invests through the Regular or Direct route, I sincerely hope all investors receive the same level of support during such critical times.\nKey Takeaways for Every Investor\r#\rKey Learnings – Transmission Process\nAlways register a nominee for each investment Consolidate your mutual fund investments across fewer AMCs Keep your family informed — share details with spouse or heirs Keep names consistent across PAN, Aadhaar, folios Store documents safely and keep digital copies Create and register a Will A Larger Concern\r#\rThis experience raises a critical question: if this is the struggle in an urban area with access to advisors, what happens in rural and B-30 cities? The complexity discourages rightful heirs from claiming their money. Are we heading toward another pile of unclaimed funds like in LIC or EPFO?\nIt’s time the mutual fund industry walks the talk on investor-centricity.\nLet’s make mutual fund transmission simpler, faster, and more compassionate.\nA grieving family shouldn’t have to beg for what is rightfully theirs.\nIn case you would like to understand more about my services , please go through this document or you could email me.\n","date":"26 May 2025","externalUrl":null,"permalink":"/posts/mfd/transmission/","section":"Posts","summary":"The Shock and the Start\r#\rIn January 2025, a woman suddenly lost her husband. Grief aside, she was soon faced with the daunting challenge of claiming her late husband’s mutual fund investments—worth approximately ₹50 lakhs. What followed was a journey filled with administrative hurdles, emotional fatigue, and systemic inefficiencies.\n","title":"Mutual Fund Transmission","type":"posts"},{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/tags/mutual-funds/","section":"Tags","summary":"","title":"Mutual Funds","type":"tags"},{"content":"\rTake Control of Your Financial Future\r#\rClarity-driven financial planning to help you invest better, avoid mistakes, and achieve your goals.\nGet a Free Portfolio Review ","date":"26 May 2025","externalUrl":null,"permalink":"/","section":"Plan Your Money","summary":"Take Control of Your Financial Future\r#\rClarity-driven financial planning to help you invest better, avoid mistakes, and achieve your goals.\n","title":"Plan Your Money","type":"page"},{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/posts/","section":"Posts","summary":"","title":"Posts","type":"posts"},{"content":"","date":"26 May 2025","externalUrl":null,"permalink":"/tags/","section":"Tags","summary":"","title":"Tags","type":"tags"},{"content":"","date":"27 December 2024","externalUrl":null,"permalink":"/tags/largecap/","section":"Tags","summary":"","title":"Largecap","type":"tags"},{"content":"","date":"27 December 2024","externalUrl":null,"permalink":"/tags/midcap/","section":"Tags","summary":"","title":"Midcap","type":"tags"},{"content":"","date":"27 December 2024","externalUrl":null,"permalink":"/tags/multicap/","section":"Tags","summary":"","title":"Multicap","type":"tags"},{"content":"\rLet me tell you a story of how things have changed in the world of mutual funds—and why this is the perfect time for you to start your investment journey. The Rise of SIPs: A Transformative Decade\nBack in FY 2016-17, the total amount invested in Systematic Investment Plans (SIPs) over a whole year was Rs 44,000 crores. But here’s the twist—fast forward to FY 2024-25, and that same amount is now being invested every two months. Yes, every two months!\nWhat’s driving this incredible growth? Post-COVID, people have seen firsthand the kind of returns equity markets can generate. It’s like a wake-up call—money isn’t just sitting idle; it’s working harder for them. In November alone, investors poured in a record ₹25,000 crores into SIPs.\nNudge: Isn’t it time your money joined the wave?\nEquity Mutual Funds: A Steady Giant\r#\rEquity mutual funds have never been stronger. As of November, they held about ₹1.74 lakh crore in cash—around 5.8% of their total equity assets. While this cash level dipped slightly due to recent market corrections, it’s stayed remarkably stable, reflecting the resilience of these funds.\nAnd here’s the big picture: equity funds now command ₹30.4 lakh crore in assets, up from 55% of the total mutual fund market last November to 59.7% today. It’s clear—more and more people are trusting equities to grow their wealth.\nSIP Contribution over the years\rNudge: Why wait when equity funds are setting the pace for wealth creation?\nThe Source of Wealth: Where Is the Money Coming From?\r#\rMost of this growth is driven by just a few states — Maharashtra, Delhi, and Gujarat — which together contribute 56% of the industry’s total Assets Under Management (AUM). The top 8 states make up over 80%.\nAAUM - Maharashtra\rAAUM - Delhi\rAAUM - Gujarat\rAAUM - Karnataka\rWhat does this mean? Mutual fund adoption often mirrors the economic strength of a region, and while some states lead the charge, there’s untapped potential across the country.\nNudge: You can be part of this financial revolution, no matter where you are.\nDiversification Opportunities: Gold ETFs and Hybrid Funds\r#\rIt’s not just equities making waves. Gold ETFs have seen 49 consecutive months of inflows, even during volatile times. In November alone, ₹7,061 crores flowed into gold and other ETFs, with index funds leading the way. This shows that even during geopolitical tensions and market swings, investors are diversifying into safe-haven assets like gold.\nMeanwhile, hybrid funds, which blend equity and debt, saw positive inflows of ₹4,124 crore in November, bringing their total AUM to ₹8.77 lakh crore. These funds are perfect for navigating uncertain markets.\nNudge: Why put all your eggs in one basket when diversification can secure your future?\nThe Debt Fund Boom\r#\rDebt mutual funds are also hitting record highs. In November, their AUM rose 1.3% to ₹16.86 lakh crore, with ₹12,916 crore in fresh inflows. These funds are ideal for those seeking stability and steady growth.\nA Growing Investor Base\r#\rDid you know that over 29.57 lakh new equity accounts were added in November alone? Mutual funds are becoming the go-to choice for people across the country, with total folio accounts crossing 22 crore.\nNudge: If millions are already on this journey, what’s holding you back?\nYour Turn to Act\r#\rThe story is clear—mutual funds, whether equity, hybrid, or debt, are growing stronger and more accessible than ever. The question isn’t if you should start investing, but when. And the answer to that? Now.\nLet’s make your money work for you. Are you ready to take the first step?\nReferences\r#\rAMFI AMFI Mutual Fund Disclaimer: Please reach out to your financial advisor before making any investments\rHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"27 December 2024","externalUrl":null,"permalink":"/posts/monthly-roundup/2024/november/","section":"Posts","summary":"\rLet me tell you a story of how things have changed in the world of mutual funds—and why this is the perfect time for you to start your investment journey. The Rise of SIPs: A Transformative Decade\n","title":"November 2024 : Why Now is the Time to Invest","type":"posts"},{"content":"","date":"27 December 2024","externalUrl":null,"permalink":"/tags/smallcap/","section":"Tags","summary":"","title":"Smallcap","type":"tags"},{"content":"","date":"27 December 2024","externalUrl":null,"permalink":"/categories/yearly-roundup/","section":"Categories","summary":"","title":"Yearly RoundUp","type":"categories"},{"content":"","date":"13 December 2024","externalUrl":null,"permalink":"/tags/cars/","section":"Tags","summary":"","title":"Cars","type":"tags"},{"content":"","date":"13 December 2024","externalUrl":null,"permalink":"/tags/tax/","section":"Tags","summary":"","title":"Tax","type":"tags"},{"content":"\rOwning a car in India is often seen as a milestone of financial independence and convenience. But have you ever paused to consider how much of the money you spend on your car actually goes to the government in the form of taxes? Let’s break it down in simple terms and see how taxes significantly inflate the cost of owning a car.\nCase Study 1: Maruti Suzuki Dzire LXI\r#\rTake the Maruti Suzuki Dzire LXI variant, for instance. The ex-showroom price is Rs 6,79,000. On the surface, this seems reasonable for a small petrol car (engine size \u0026lt;1200cc and length \u0026lt;4m). However, here’s how taxes add up:\nGST: The GST rate on all cars is 28%. For this car, an additional 1% cess applies, bringing the total indirect tax to 29%. This means Rs 1.53 lakhs of the ex-showroom price goes directly to the government.\nActual Car Cost: Without GST and cess, the actual cost of the car would be Rs 5.26 lakhs. That’s the price the manufacturer receives for the car.\nRoad Tax: For cars priced between Rs 5 to 10 lakhs, the road tax in many states is around 14%. For the Dzire, this adds another Rs 95,000 to the bill.\nNow let’s compute the total:\nTotal Cost: Rs 7.74 lakhs.\rTax Paid: Rs 2.47 lakhs (32% of the total price).\rCase Study 2: Hyundai Creta SX(O) 1.5 Turbo DCT Dual Tone\r#\rNow consider a more premium SUV, the Hyundai Creta SX(O) 1.5 Turbo DCT Dual Tone. With an ex-showroom price of Rs 20.14 lakhs, it falls into the SUV category due to its length (\u0026gt;4m) and ground clearance (\u0026gt;170 mm). The tax breakdown is even steeper:\nGST and Cess: This car attracts 28% GST and an additional 22% cess, resulting in an overall tax rate of 50%. Out of the ex-showroom price, Rs 3.76 lakhs goes towards GST and Rs 2.95 lakhs towards the cess.\nActual Car Cost: Without taxes, the car would cost Rs 13.43 lakhs.\nRoad Tax: SUVs often have higher road tax rates. For this car, an 18% road tax adds Rs 3.62 lakhs.\nNow let’s compute the total:\nTotal Cost: Rs 23.77 lakhs.\rTax Paid: Rs 10.34 lakhs (44% of the total price).\rBreakup of cost of owning a Maruti Dzire LXI 2024\rBreakup of cost of owning a Hyundai Creta\rRoad Tax - Karnataka\rHidden Costs: Beyond Ex-Showroom Prices\r#\rIf the upfront taxes weren’t enough, car ownership comes with recurring tax expenses:\nInsurance Premiums: Car insurance premiums are subject to 18% GST.\nMaintenance: Almost every service and spare part replacement involves 18% GST.\nFuel: Here’s a rough breakdown of how petrol prices are taxed:\na. Base price: Rs 55.66/litre.\nb. Dealer commission: Rs 3.77/litre.\nc. Excise duty: Rs 19.90/litre.\nd. State sales tax (e.g., Karnataka): 29.84% of the base price, approximately Rs 23.67/litre.\ne. Final price: Around Rs 103/litre.\nSo, for every litre of petrol, nearly 50% of the price is tax.\nIncome Tax Adds to the Burden\r#\rFor a salaried individual, buying a car means earning significantly more than its price to cover taxes. For instance, to afford the Hyundai Creta (Rs 23.77 lakhs total), one might need to earn at least Rs 30 lakhs annually. Out of this, Rs 5.9 lakhs would go to income tax. This means a substantial part of your hard-earned money goes to the government before you even purchase the car.\nWhy Do We Pay So Much Tax on Cars?\r#\rGovernments justify high taxes on cars as a measure to:\n1. Discourage private vehicle use and reduce pollution.\r2. Generate revenue for infrastructure projects like road development.\rHowever, the demand for cars tells a different story. Despite the steep taxes, passenger vehicle sales have grown from 2.5 million to 4.22 million annually over the last 13 years. This indicates that for many Indians, owning a car remains a priority despite the financial strain.\nPassenger Vehicle Sales - 2011-2024\rThe Final Word\r#\rWhen you buy a car in India, you’re not just paying for the vehicle but also contributing significantly to government coffers. From GST to road tax, fuel levies, and income tax, the financial burden can be overwhelming. Yet, car sales continue to climb, reflecting the enduring aspirations of Indian consumers.\nWhile high taxes might seem like a deterrent, they’ve done little to curb the nation’s love for cars. So, the next time you’re eyeing a new set of wheels, remember that the government will also have a significant share in your purchase – a “tax” on your dreams of mobility and freedom.\nThis entire article was mainly made thanks to a beautiful video which I witnessed in Youtube and I request you to watch this.\nReferences\r#\rKarnataka Road Tax GST Rates on Cars Sales of automobiles Why are cars so expensive ","date":"13 December 2024","externalUrl":null,"permalink":"/posts/financial-planning/car-ownership/","section":"Posts","summary":"\rOwning a car in India is often seen as a milestone of financial independence and convenience. But have you ever paused to consider how much of the money you spend on your car actually goes to the government in the form of taxes? Let’s break it down in simple terms and see how taxes significantly inflate the cost of owning a car.\n","title":"True Cost of Owning a Car","type":"posts"},{"content":"\rDespite a market correction and continued foreign outflows, Indian retail investors showed remarkable resilience in October 2024 by committing substantial funds to equity schemes. The total equity inflow reached a historic level of Rs 74,727 crores, marking a period of steadfast retail engagement even as market volatility persisted. With the BSE Sensex index experiencing a dip from its peak of 85,879 to around 78,000, investors have doubled down, seizing the opportunity to buy into the market at lower levels, confident in the market\u0026rsquo;s long-term potential.\nNet Inflow Reaches All-Time High\r#\rA standout metric for October was the Rs 41,886 crores in net inflow, the highest net investment recorded, resulting from the difference between new inflows and redemptions. This figure was bolstered by a reduction in redemptions, which amounted to Rs 32,840 crores—the lowest in the past five months. The minimal outflow reflects investor confidence and a \u0026ldquo;hold\u0026rdquo; mentality, especially significant given the backdrop of market corrections. Rather than panicking or exiting, retail investors demonstrated a growing confidence in India’s equity markets as a long-term investment vehicle.\nInvestments / Redemption in Equity Mutual Funds\rRecord-Breaking Investments Across Categories\r#\rOctober witnessed unprecedented investment levels across various equity categories. The large-cap category saw inflows of Rs 6,855.49 crores, the highest on record, as investors looked to allocate funds to stable blue-chip companies, viewing them as safer options in turbulent times. Similarly, large and mid-cap funds attracted Rs 7,177.08 crores, while mid-cap funds set a record with Rs 8,946.17 crores. This preference for mid-sized companies reflects investors\u0026rsquo; willingness to embrace slightly higher risk, betting on companies with significant growth potential.\nInterest in the small-cap segment remained strong, with inflows reaching an all-time high of Rs 8,108.02 crores. This robust participation in the small-cap category signals retail investors’ optimism and appetite for higher returns, despite higher volatility associated with smaller companies. Additionally, flexicap funds, which allow fund managers the flexibility to invest across different market capitalizations, saw their highest-ever inflows at Rs 8,979.60 crores. This flexibility appeals to investors seeking professional judgment in volatile markets, reinforcing trust in fund managers’ ability to navigate the fluctuating landscape.\nDII Support and FII Outflows\r#\rDomestic institutional investors (DIIs), especially Asset Management Companies (AMCs), have shown strong support for the market, although they appear to be holding back slightly, waiting for what they consider more attractive price points to ramp up buying. This cautious optimism by DIIs has helped stabilize the market to some extent, despite persistent selling from Foreign Institutional Investors (FIIs). FIIs have been net sellers over recent months, withdrawing capital as they realign their portfolios in response to global economic uncertainties. However, the resilience of retail investors and DIIs has cushioned the market from a sharper decline, showcasing the growing strength of India’s domestic investment base.\nConfidence Amidst Market Correction\r#\rThis unprecedented inflow of funds amidst a market decline speaks volumes about the mindset shift among Indian retail investors. Rather than viewing the fall as a reason for concern, many see it as a buying opportunity. This shift towards a disciplined, long-term investment strategy aligns well with the broader theme of India’s economic resilience and the increasing maturity of its equity market participants.\nAs DIIs hold steady and FIIs continue to recalibrate, the role of retail investors has become even more prominent in bolstering the market. October 2024’s figures demonstrate the strong foundation of India’s equity markets, with retail investors emerging as a stabilizing force and committed stakeholders in the nation’s economic future.\nReferences\r#\rAMFI Disclaimer: Please reach out to your financial advisor before making any investments\rHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"12 November 2024","externalUrl":null,"permalink":"/posts/monthly-roundup/2024/october/","section":"Posts","summary":"\rDespite a market correction and continued foreign outflows, Indian retail investors showed remarkable resilience in October 2024 by committing substantial funds to equity schemes. The total equity inflow reached a historic level of Rs 74,727 crores, marking a period of steadfast retail engagement even as market volatility persisted. With the BSE Sensex index experiencing a dip from its peak of 85,879 to around 78,000, investors have doubled down, seizing the opportunity to buy into the market at lower levels, confident in the market’s long-term potential.\n","title":"October 2024 - Market Trends in Mutual Funds","type":"posts"},{"content":"\rAMFI has released the data related to inflow/outflow of funds in various schemes. This article intends to share some insights on this data and you will find it useful to take decisions based on these inputs.\nAugust 2024\r#\rThe current market data offers a powerful signal for investors to capitalize on the momentum, especially in large-cap and balanced fund strategies. Let’s look at the details:\nAMC Market Outlooks: Midcap and Smallcap Trading at a Premium\r#\rMany Asset Management Companies (AMCs) are advising caution on midcap and smallcap exposure, as these segments are currently trading at a premium compared to large-cap stocks. This creates an opportunity to capitalize on large-cap investments, which remain more attractively valued.\nRecord Net Inflows into Midcap and Smallcap Funds\r#\rDespite warnings about premiums, investor sentiment in August 2024 has been extremely positive for midcap and smallcap funds. Midcap funds recorded a net inflow of Rs 3,054 crore, the highest ever, while smallcap funds saw a net inflow of Rs 3,209 crore, the highest in the last eight months. Although this reflects strong retail enthusiasm, the elevated valuations in these segments mean investors should approach cautiously.\nNet Inflow of Funds in Mid-Cap(crores)\rNet Inflow of Funds in Small Cap(crores)\rDecline in Multicap Fund Net Inflows\r#\rMulticap funds, which offer diversified exposure, saw a drop in net inflows from Rs 7,084 crore to Rs 2,475 crore.. Inflow in multicap funds has dramatically reduced to less than Rs 5000 crores. The rising redemptions in this category suggest that investors are moving toward more focused strategies, underscoring the need for careful fund selection.\nInflow and Redemption in Multicap schemes(crores) - AMFI\rInflow and Redemption of All Equity Schemes - AMFI\rStrong Net Inflows into Large-Cap Funds\r#\rLarge-cap funds saw a fantastic net inflow of Rs 2,636 crore, the highest in the last year. Many fund managers recommend continuing to invest in large-caps since these stocks aren’t as overvalued as midcaps and smallcaps, offering a more attractive entry point for long-term growth.\nSource : AMFI Highest Ever Net Inflows in Large \u0026amp; Midcap Funds\r#\rLarge \u0026amp; midcap funds experienced a record-breaking net inflow of Rs 3,293 crore. This shows that investors are favoring strategies that provide balanced exposure to both stable large-caps and high-growth midcaps. For those seeking a diversified approach, this is an ideal time to invest.\nFalling Redemptions in Midcap and Smallcap Funds\r#\rWhile midcaps and smallcaps are trading at a premium, the rate of redemptions in these funds is declining. This indicates that investors are holding onto their positions, betting on further gains. However, with elevated valuations, it’s crucial to remain cautious.\nContinued Interest in Sectoral and Thematic Funds\r#\rSectoral and thematic funds, with an average net AUM of Rs 4.25 lakh crore, saw healthy net inflows of Rs 18,117 crore. This reflects strong confidence in specific sectors of the market, providing opportunities for targeted growth.\nRobust Net Inflows into Equity Markets Overall\r#\rIn August 2024, the total net inflow into equity markets stood at Rs 38,239 crore, while the overall inflow reached Rs 72,541 crore. Redemptions have dropped significantly from Rs 44,044 crore in the previous month to Rs 34,303 crore, signaling that investors are staying in the market and betting on continued growth.\nPositive Retail Investor Sentiment\r#\rRetail investors are driving this wave of enthusiasm, with strong participation in mutual funds and the IPO market. This retail-driven momentum is often an indicator of future market strength.\nWhy Invest Now?\r#\rWith large-cap stocks still attractively valued and seeing strong net inflows, this is a golden opportunity to invest in stable growth assets. While midcap and smallcap sectors have shown impressive performance, their high premiums pose a potential risk. A balanced approach through large-cap or large \u0026amp; midcap funds offers both safety and growth potential in the current market climate.\nDon’t miss out on the momentum—now is the time to invest and position yourself for future gains!\nConclusion\r#\rThe pursuit of changing asset allocations solely based on past high returns is a perilous endeavor. Investors should prioritize understanding their risk profiles and aligning their investments with their long-term goals. By adhering to a steadfast and unassuming investment strategy, one can navigate through market fluctuations with resilience and secure their financial future effectively. Remember, investments should be guided by your goals, not by fleeting market trends. References\r#\rAMFI Disclaimer: Please reach out to your financial advisor before making any investments\rHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"11 September 2024","externalUrl":null,"permalink":"/posts/monthly-roundup/2024/august/","section":"Posts","summary":"\rAMFI has released the data related to inflow/outflow of funds in various schemes. This article intends to share some insights on this data and you will find it useful to take decisions based on these inputs.\n","title":"August 2024 - Market Trends in Mutual Funds","type":"posts"},{"content":"","date":"22 May 2024","externalUrl":null,"permalink":"/tags/hdfc/","section":"Tags","summary":"","title":"HDFC","type":"tags"},{"content":"\rA manufacturing theme mutual fund invests primarily in companies within the manufacturing sector, such as those involved in industrial production, machinery, and raw materials processing. These funds aim to capitalize on the growth and profitability of the manufacturing industry, offering investors exposure to the sector\u0026rsquo;s potential for long-term returns. If you go by the presentation of HDFC or Mahindra, you would note that they are betting on many sectors including Power, Ports, Railways, Defence, Roads etc\u0026hellip; The Government vision in terms of Amrit Kaal 2047, Production Linked Incentive, and Make in India getting a fillip are just some of the factors that suggests that manufacturing theme based fund may perhaps do really well.\nAditya Birla Sunlife Manufacturing Fund\r#\rLaunch Date - 31-Jan-2015\nAUM - 950 cr\n1yr Return - 34.94%\nICICI Manufacturing Fund\r#\rLaunch Date - 11-Oct-2018\nAUM - 3883 cr\n1yr Return - 52.19%\nQuant Manufacturing Fund\r#\rLaunch Date - 14-Aug-2023\nAUM - 652 cr\n1yr Return - 58.15%\nAxis Manufacturing Fund\r#\rLaunch Date - 21-Dec-2023\nAUM - 4683cr\n1yr Return - 30.30%\nCanara Robeco Manufacturing Fund\r#\rLaunch Date - 11-Mar-2024\nAUM - 1242cr\nHDFC Manufacturing Fund\r#\rLaunch Date - 15-May-2024\nThere have been 3 manufacturing fund themes in 2024 namely Canara Robeco Manufacturing Fund, HDFC Manufacturing Fund and now Mahindra Manulife Manufacturing Fund.\nManufacturing fund seems to hold promise on the following factors :\nManufacturing would be a key factor in growth of our country Make in India was an initiative to improve manufacturing in India Manufacturing as percentage of GDP is only around 13% Amrit Kaal Goals - 2047 - expect manufacturing growth to increase significantly Government introducing policies like : Make In India Atmanirbhar Bharat Production Linked Incentives India is positioned as China+1 model to move away from overdependence in China India is working overtime on improving infrastructure - power capacity, metro, cargo railways, new ports etc.. Capital expenditure planned mainly in the following area: Power - 14.5 lakh crores by FY27 Defense - 1.72 lakh crores by FY25 Cement - 1.25 lakh crores by FY27 Semiconductors - 1.2 lakh crores by FY25 Water - 61K crores by FY24 Steel - 60K crores by FY25 Mining - 50K crores by FY25 Oil \u0026amp; Gas - 50K crores by FY24 One of the key manufacturing areas is DEFENSE, RAILWAYS As the per capita income improves , it will eventually lead to rising consumption demand How will this benefit you ?\r#\rManufacturing is a theme that will play out for the next few decades. If you look at phone exports, we were at 1.6 billion dollars in 2019 and today we are nearly 31.43 billion dollars.\nWhat is the risk ?\r#\rThis mutual fund has higher risk as compared to your flexi-cap, large-cap funds and will mainly focus on manufacturing theme.\nHow much should I invest ?\r#\rInvest to a maximum of 10% of your entire portfolio. Please understand that this is a thematic fund and therefore you should consider this as part of your satellite portfolio and not necessarily core. Thematic funds are generally more riskier than your diversified funds.\nReferences\r#\rHDFC Manufacturing Fund\nMahindra Manulife Manufacturing Fund\nAxis India Manufacturing Fund\nQuant Manufacturing Fund\nICICI Manufacturing Fund\nCanara Robeco Manufacturing Fund\nAditya Birla Sunlife Manufacturing Fund\nFor more questions, please feel free to reach out to me\nShould I buy Manufacturing fund!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"22 May 2024","externalUrl":null,"permalink":"/posts/spotlight/manufacturing/","section":"Posts","summary":"\rA manufacturing theme mutual fund invests primarily in companies within the manufacturing sector, such as those involved in industrial production, machinery, and raw materials processing. These funds aim to capitalize on the growth and profitability of the manufacturing industry, offering investors exposure to the sector’s potential for long-term returns. If you go by the presentation of HDFC or Mahindra, you would note that they are betting on many sectors including Power, Ports, Railways, Defence, Roads etc… The Government vision in terms of Amrit Kaal 2047, Production Linked Incentive, and Make in India getting a fillip are just some of the factors that suggests that manufacturing theme based fund may perhaps do really well.\n","title":"Manufacturing - Theme - Mutual Fund","type":"posts"},{"content":"","date":"22 May 2024","externalUrl":null,"permalink":"/categories/mutual-funds/","section":"Categories","summary":"","title":"Mutual Funds","type":"categories"},{"content":"","date":"17 April 2024","externalUrl":null,"permalink":"/tags/case-study/","section":"Tags","summary":"","title":"Case Study","type":"tags"},{"content":"\rOne of my clients initiated their PPF account with a public sector bank approximately 14 years ago. Recently, when they approached the bank for guidance on the next steps, they were informed that the only option was to withdraw the amount and initiate a new PPF account with the same bank.\nUpon consulting with me, I advised the client that they could actually extend their existing PPF account, allowing them to continue earning 7.1% interest on the total amount.\nSubsequently, when my client revisited the bank, he encountered resistance once again, being told that withdrawal was the sole course of action. Faced with this dilemma, my client turned to me for assistance.\nReferencing the Public Provident Fund Scheme 2019 Gazette, I highlighted point 12, which clearly states that account holders can extend their accounts for a further five-year period after the initial fifteen-year term.\nEmpowered with this knowledge and armed with official documentation, my client approached the bank once more, expressing their intention to move their account elsewhere if the rules were not adhered to. Eventually, the bank relented. It became evident that the staff member assisting my client was unfamiliar with this procedure, having not encountered it in several years.\nUltimately, my client successfully extended their PPF account.\nThis experience underscores the challenges of navigating financial matters amidst our hectic schedules, where relying solely on the expertise of banking professionals may not always suffice.\nUnfortunately, instances of misguidance by financial institutions are not uncommon, as evidenced by stories of customers being steered towards products like ULIPs and endowment plans without adequate guidance.\nSummary\r#\rAwareness of financial regulations and options empowers individuals to make informed decisions regarding their investments.\nEven reputable institutions may lack comprehensive knowledge, highlighting the importance of verifying information and advocating for one\u0026rsquo;s rights.\nConsultation with financial advisors can provide valuable insights and guidance, particularly in complex matters such as extending investment accounts.\nPersistence and assertiveness may be necessary when dealing with institutions, ensuring adherence to regulations and securing desired outcomes.\nThis experience underscores the significance of remaining vigilant and proactive in managing personal finances, mitigating the risk of being misled or uninformed.\nReference\r#\rPublic Provident Fund Scheme 2019 Public Provident Fund Act I need guidance as well !\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"17 April 2024","externalUrl":null,"permalink":"/posts/casestudies/ppf/","section":"Posts","summary":"\rOne of my clients initiated their PPF account with a public sector bank approximately 14 years ago. Recently, when they approached the bank for guidance on the next steps, they were informed that the only option was to withdraw the amount and initiate a new PPF account with the same bank.\n","title":"Navigating PPF Extension","type":"posts"},{"content":"","date":"17 April 2024","externalUrl":null,"permalink":"/tags/ppf/","section":"Tags","summary":"","title":"PPF","type":"tags"},{"content":"","date":"17 April 2024","externalUrl":null,"permalink":"/tags/retirement-planning/","section":"Tags","summary":"","title":"Retirement Planning","type":"tags"},{"content":"\rMutual fund industry has crossed 50 lakh crore mark in January 2024. While it\u0026rsquo;s common for investors to primarily focus on short-term returns when selecting mutual funds, it\u0026rsquo;s essential to consider various other factors that play crucial roles in investment decisions.\nThese include the following :\nSafety Liquidity Returns Convenience Ticket Size Taxability Tax Deduction Safety\r#\rSafety refers to the protection of the capital invested. Investors seek assurance that their investment is secure and not exposed to undue risks.\nLiquidity\r#\rLiquidity denotes the ease and speed with which an investment can be converted into cash. A liquid investment allows investors to access their funds promptly when needed.\nReturns\r#\rReturns are a vital aspect of mutual fund selection. Investors analyze the historical performance of funds, typically measured by Compound Annual Growth Rate (CAGR) or Internal Rate of Return (XIRR), to gauge potential returns and compare them with other investment options.\nConvenience\r#\rConvenience entails the ease of investing and monitoring investments independently, without the need for extensive administrative procedures or third-party assistance.\nTicket Size\r#\rInvestors consider the minimum investment amount required to participate in a mutual fund scheme. Understanding the ticket size helps investors align their investment capabilities with fund requirements.\nTaxability\r#\rTax implications are crucial considerations for investors, particularly regarding the taxation of gains upon redemption. Understanding the tax implications associated with mutual fund investments helps investors make informed decisions.\nTax Deduction\r#\rFor Equity Linked Savings Schemes (ELSS), which have a lock-in period of three years, investors may benefit from tax deductions under the old tax regime. Evaluating the potential tax benefits of such schemes is essential for investors seeking tax-efficient investment avenues.\nI want to explore more !\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"29 March 2024","externalUrl":null,"permalink":"/posts/didyouknow/back-to-basics/","section":"Posts","summary":"\rMutual fund industry has crossed 50 lakh crore mark in January 2024. While it’s common for investors to primarily focus on short-term returns when selecting mutual funds, it’s essential to consider various other factors that play crucial roles in investment decisions.\n","title":"Back to Basics - Mutual Funds","type":"posts"},{"content":"","date":"29 March 2024","externalUrl":null,"permalink":"/categories/did-you-know-/","section":"Categories","summary":"","title":"Did You Know ?","type":"categories"},{"content":"\rIncreasing your investment periodically can expedite goal achievement. Various methods exist to accelerate investment progress, such as opting for riskier ventures. However, this approach may not be suitable for everyone due to discomfort with higher risks. This article proposes an alternative method: incrementally increasing your Systematic Investment Plan (SIP), reducing the time needed to reach your goal by two years or more.\nScenario\r#\rLet us assume you have a target to reach 1 crore and you plan to contribute Rs 50,000 per month. Your goal is approximately 7 years from now. You have invested in mutual funds and you believe that this will give you a CAGR return of 11% p.a.\nSolution 1\r#\rIf you invest Rs 50,000 per month, over a period of 7 years, you will approximately make Rs 80 lakhs which is 20 lakhs short of your investment goal. Therefore clearly, this does not work out.\nSolution 2\r#\rAs you are not meeting, the goal, you decide that, you will increase the investment by Rs 10,000 every 3 years or so. You have almost reached your goal. but any variances in return, you would not be comfortable with just reaching the goal.\nSolution 3\r#\rThe simplest approach to achieving your goal involves boosting your investment by 10% annually. Notably, the incremental increase amounts to just Rs 5000 in the initial year, followed by Rs 5500 in the subsequent year, and so forth. This incremental strategy alleviates pressure on the individual to significantly raise their investment while steadily progressing towards their objectives. Furthermore, compounding plays a vital role, providing an additional safety net by the end of the period.\nConclusion\r#\rWe have our goals and priorities and we need to achieve this goals within a targeted period. To achieve our goals we need to be disciplined with our SIP\u0026rsquo;s. We have seen the mid-cap and small-cap run and these helps us achieve our goals and they provide us the kick in the portfolio return. Will the run continue every year ? Unlikely ! However, just as we discussed that asset allocation is important in my previous article, it is also important that we review our portfolio and our goals on a periodical basis. Periodic increase in our SIP , based on the availability of funds, helps us achieve our goals quicker.\nThe new year begins soon, review your current investments, check whether this will be sufficient for your goal that you have planned it for, and adjust your SIP amount suitably.\nHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"22 March 2024","externalUrl":null,"permalink":"/posts/didyouknow/accelerator/","section":"Posts","summary":"\rIncreasing your investment periodically can expedite goal achievement. Various methods exist to accelerate investment progress, such as opting for riskier ventures. However, this approach may not be suitable for everyone due to discomfort with higher risks. This article proposes an alternative method: incrementally increasing your Systematic Investment Plan (SIP), reducing the time needed to reach your goal by two years or more.\n","title":"Can we reach our goal quicker ?","type":"posts"},{"content":"\rIn the dynamic landscape of equity investments, the allure of high returns can often tempt investors towards greed-driven decisions, potentially jeopardizing their financial stability in the long run.\nAs evidenced by the surge in equity inflows, with a staggering 26,000 crores recorded in February 2024 alone, and the remarkable flow into Midcap and Smallcap segments totaling Rs 61,900 crores, it\u0026rsquo;s evident that the chase for quick gains is pervasive.\nInvestments In Equity\r#\rInvestments in equity have mainly picked up from August 2023 onwards, however, they have been mainly flowing into mid cap and small cap funds.\nSource : AMFI However, a closer examination reveals a cautionary tale. Despite the influx of capital into small-cap funds, the scarcity of quality investment opportunities becomes apparent upon scrutinizing their portfolios. Many such funds have resorted to holding significant proportions of their assets in cash rather than deploying them into promising stocks. This conservative approach underscores the dearth of attractive investment avenues within the small-cap segment.\nHDFC Small Cap - 9.93% - Debt - Highest allocation Quant Small Cap - 9.87% - Reliance (LargeCap) - 4.03% - Debt - 2nd highest allocation Kotak Small Cap - 5.35% - Debt - Highest Allocation Mahindra Small Cap - 6.43% - Debt - Highest Allocation Nippon India Small Cap - 4.11% - Debt - Highest Allocation Moreover, the emergence of a trend where several prominent small-cap funds, including Nippon India, ICICI, SBI, and Tata Mutual Fund, have ceased accepting lump-sum investments, further underscores the challenges plaguing this space. Such actions hint at underlying concerns regarding market valuations and the prudence of deploying capital amidst prevailing uncertainties.\nNippon India Small Cap does not accept lumpsum ICICI Small Cap does not accept lumpsum SBI Small Cap does not accept lumpsum Tata Mutual Fund Small Cap has stopped lumpsum since July 2023 Meanwhile, AMFI has written to mutual fund houses to take measures to protect the interest of investors of small and midcap schemes.\nInvestors have predominantly overlooked large-cap mutual funds, ELSS, and even flexicap to some degree. Instead, they have been captivated by the appeal of significant returns within the small-cap and mid-cap sectors.\nSource : AMFI Performance\r#\rIf you look at the performance of equity funds over the last year, had you put your money in any equity based mutual fund, you would have made money. Even the worst return in the category is 25.53% and the best gave nearly 79.53% return.\nThe subsequent crucial inquiry for investors is whether consistent returns can be expected annually. Yet, I argue that we currently reside in a favorable era, warranting continued investment in mutual funds aligned with our risk tolerance and asset allocation. Remarkably, the compounded annual growth rate for these funds over the past decade ranges between 14-18%, a truly remarkable feat.\nSource : Valueresearchonline.com Conclusion\r#\rThe pursuit of changing asset allocations solely based on past high returns is a perilous endeavor. Investors should prioritize understanding their risk profiles and aligning their investments with their long-term goals. By adhering to a steadfast and unassuming investment strategy, one can navigate through market fluctuations with resilience and secure their financial future effectively. Remember, investments should be guided by your goals, not by fleeting market trends. Disclaimer: Please reach out to your financial advisor before making any investments\rHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"15 March 2024","externalUrl":null,"permalink":"/posts/monthly-roundup/2024/february/","section":"Posts","summary":"\rIn the dynamic landscape of equity investments, the allure of high returns can often tempt investors towards greed-driven decisions, potentially jeopardizing their financial stability in the long run.\n","title":"2023-24 - Performance and Flow of Money","type":"posts"},{"content":"","date":"15 March 2024","externalUrl":null,"permalink":"/tags/hdfc-small-cap/","section":"Tags","summary":"","title":"HDFC Small Cap","type":"tags"},{"content":"","date":"15 March 2024","externalUrl":null,"permalink":"/tags/mahindra-manulife-small-cap/","section":"Tags","summary":"","title":"Mahindra Manulife Small Cap","type":"tags"},{"content":"","date":"15 March 2024","externalUrl":null,"permalink":"/tags/quant-small-cap/","section":"Tags","summary":"","title":"Quant Small Cap","type":"tags"},{"content":"\rMoney has different meaning for different people. Investopedia says money is a medium of exchange. While money is universally recognized as a medium of exchange, its significance and interpretation vary greatly among individuals. For some, money represents security and stability, providing a means to meet basic needs such as food, shelter, and healthcare. Others view money as a symbol of success and status, equating financial wealth with personal achievement and societal recognition. Additionally, money holds emotional value for many, influencing feelings of self-worth, confidence, and fulfillment.\nHowever, for us, it could mean any of them and more :\nMoney gives me FINANCIAL INDEPENDENCE Money helps me financially SUPPORT my parents Money helps me INDULGE Money allows me to create lasting MEMORIES and strengthen RELATIONSHIPS I had STRUGGLES with money when I grew up, my children should not face the same Money allows me to TRAVEL, DINE and be ENTERTAINED Money PROVIDES opportunities for me to STUDY and ADVANCE in my career Money being present GIVES me a sense of RELIEF Money helps me GIVE BACK to the community Money allows me to PURSUE my passion All of these can be encapsulated as your pursuit to achieve your financial goals.\nOnce we come to a conclusion that money helps achieve our goals, we need to put spotlight on our behaviour and our habits which have changed over the years.\nReflecting on the journey of my culinary evolution, it\u0026rsquo;s fascinating to see how my dietary habits have transformed over the decades. In the cherished memories of my 1980s and 1990s childhood, the simplicity of purchasing milk stands out, a humble ingredient that formed the basis of homemade delights like curd, butter, and ghee, each carrying the nostalgic flavors of yesteryears. Brands like Amul, though established long before, entered my world gradually, making occasional appearances in my school lunchbox alongside the comforting companionship of bread and jam.\nBefore the 2000s unfolded, cream was collected over a period and then when slowly cooked would give us homemade ghee, a process steeped in tradition and flavor. This stopped. We purchased unsalted butter , cooked it and made it into ghee. (We still had a hand in making ghee, we didn\u0026rsquo;t buy directly.) The introduction of pizza sparked a culinary adventure, accompanied by the delightful discovery of cheese varieties like mozzarella and cheddar, enriching my gastronomic experiences. Nestle Curd, conveniently packaged in 200gm portions, found its way into my kitchen, adding a touch of convenience to my culinary endeavors.\nThe 2010s brought about a seismic shift in my shopping habits, as I embraced a one-stop approach, procuring all essentials including milk, butter, ghee, cheese, and curd. The rise of dining-out culture, fueled by frequent restaurant visits, became an integral part of my modern lifestyle, offering a tantalizing array of culinary delights.\nFast forward to the 2020s, and the landscape of food consumption underwent yet another transformation with the emergence of food delivery platforms like Zomato and Swiggy. While I still cherish home-cooked meals, the convenience of ordering in from a diverse selection of eateries via these platforms has become an integral aspect of my dining experience. Contemplating the future, I wonder if the next decade will witness a departure from traditional staples like milk, curd, butter, ghee, and cheese, in favor of ready-made breakfast, lunch, and dinner options delivered straight to my doorstep. As I navigate the ever-changing culinary landscape, only time will unveil the answer.\nConclusion\r#\rUndoubtedly, my lifestyle has undergone a profound transformation, reflecting a sea change in my behaviors and habits. While I\u0026rsquo;ve primarily discussed the evolution of dairy consumption, it\u0026rsquo;s evident that similar shifts have occurred across various aspects of daily life. Therefore my expenses has also gone up, which eventually will affect my retirement planning.\nFrom sourcing vegetables to managing household chores, from troubleshooting electrical appliances to addressing plumbing issues, every facet of domestic life has witnessed subtle yet significant alterations. Even in areas like medication management and caregiving for children and elders, the way we approach and execute tasks has evolved over time.\nThese changes, though gradual, signify a monumental metamorphosis within the dynamics of an individual\u0026rsquo;s role within the family unit. Have you experienced similar transformations? I invite you to share your own journey and insights into these evolving paradigms.\nReferences\r#\rInvestopedia ","date":"11 March 2024","externalUrl":null,"permalink":"/posts/knowledge-articles/behavioural-economics/money-and-lifestyle/","section":"Posts","summary":"\rMoney has different meaning for different people. Investopedia says money is a medium of exchange. While money is universally recognized as a medium of exchange, its significance and interpretation vary greatly among individuals. For some, money represents security and stability, providing a means to meet basic needs such as food, shelter, and healthcare. Others view money as a symbol of success and status, equating financial wealth with personal achievement and societal recognition. Additionally, money holds emotional value for many, influencing feelings of self-worth, confidence, and fulfillment.\n","title":"Money \u0026 Lifestyle Changes","type":"posts"},{"content":"\rWill the market continue to go up ?\r#\rIn March 2023, I wrote the article when will the market go up. I presume now the question is, will the market continue to go up ?\nCapital Expenditure\r#\rCapital expenditure from both industry and the government is going up. Whenever capital expenditure goes up, it is generally good news, as this indicates that volumes are going to go up and therefore there is growth in the economy.\nImagine a world where the economy dances to a positive tune. Picture this: big players like the US Federal Reserve and our own Reserve Bank of India are planning to cut interest rates. That means more money flowing into the market, boosting the game for stocks. Plus, companies investing more in the country\u0026rsquo;s growth are shouting out loud in the GDP numbers. That\u0026rsquo;s a good sign!\nTax Collections\r#\rNow, let\u0026rsquo;s zoom in a bit. Despite high interest rates, our country\u0026rsquo;s tax collections are climbing steadily, and industries are pumping out goods at a rapid pace. This reflects a growing economy. India\u0026rsquo;s recent GDP growth is also impressive, showing a healthy increase in the money made by the country. It\u0026rsquo;s like a badge of honor!\nTax Collection\rDebt to GDP\rSure, there are some concerns, like trade deficits and rising prices due to global problems. We\u0026rsquo;ve also got elections coming up, which could shake things up a bit. But in the midst of it all, one thing\u0026rsquo;s clear: India is proving its strength in the economic race.\nCorporate Earnings\r#\rRecognized as the fastest-growing major economy in 2023, India is standing tall. If you look at the corporate earnings, we have been doing remarkably well.\nHigh Frequency Updates\r#\rThe stock market is like a puzzle with lots of pieces. Right now, those pieces—rate cuts, growing GDP, strong tax collections, and a powerful industry—are falling into place, suggesting a bright future for investors. It\u0026rsquo;s an exciting tune playing out in the market, inviting you to jump on board and be part of India\u0026rsquo;s thriving economic journey.\nConclusion\r#\rTherefore the question, should you continue to invest ? My answer would be a resounding Yes.\nThis is for multiple reasons :\nWe are NOT in a bubble where the market will fall down for any reason Market going up is backed by strong corporate earnings and very good macroeconomic indicators including market sentiment Interest rates will fall down and therefore corporates would have easy access to money which in turn would drive the market further up As I write this article, market has moved from 70K to 72K in 2 days. Sensex hitting 1 lakh is not too far. India wishes to be a 5 trillion dollar economy and developed country by 2047 and therefore such ambitions require focussed plans and therefore I positively feel that we have not hit a high yet. If you are in for the long term, you are rewarded !\nFinally there is election around the corner and with a decisive victory for the central government and a stable policy, things would certainly accelerate.\nReference\r#\rPrivate Capital Expenditure India High Frequency Update GDP Growth Market Outlook Disclaimer: Please reach out to your financial advisor before making any investments\rHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"15 December 2023","externalUrl":null,"permalink":"/posts/monthly-roundup/2023/","section":"Posts","summary":"\rWill the market continue to go up ?\r#\rIn March 2023, I wrote the article when will the market go up. I presume now the question is, will the market continue to go up ?\n","title":"2023 - Rewind","type":"posts"},{"content":"\rInvesting in a quality education is a dream for every parent, but the rising cost of higher education can be daunting. Whether it\u0026rsquo;s a graduation course in India or pursuing post-graduation abroad, parents often find it challenging to plan for their child\u0026rsquo;s educational expenses.\n📚 Higher Education Corpus Calculator\rCurrent Fees per Year (₹)\rEnter a value between ₹10,000 and ₹5 Cr\rCourse Starting Year\rMust be 2026 or later\rDuration of Course (Years)\rBetween 1 and 10 years\rEducation Inflation Rate (%)\rBetween 1% and 20%\rExpected Return on Investment (%)\rBetween 1% and 30%\rCalculate ›\rInvest Today\r—\rCorpus at Course Start\r—\r📈 Year-wise Breakdown\r🗓️ Education Expenses Over the Years\rYear\rOpening Corpus\rAnnual Expense\rBalance\rInterest Earned\rClosing Balance\r","date":"3 August 2023","externalUrl":null,"permalink":"/posts/tools/education/","section":"Posts","summary":"\rInvesting in a quality education is a dream for every parent, but the rising cost of higher education can be daunting. Whether it’s a graduation course in India or pursuing post-graduation abroad, parents often find it challenging to plan for their child’s educational expenses.\n","title":"Education Calculator","type":"posts"},{"content":"","date":"3 August 2023","externalUrl":null,"permalink":"/tags/financial-literacy/","section":"Tags","summary":"","title":"Financial Literacy","type":"tags"},{"content":"\rInvesting in a quality education is a dream for every parent, but the rising cost of higher education can be daunting. Whether it\u0026rsquo;s a graduation course in India or pursuing post-graduation abroad, parents often find it challenging to plan for their child\u0026rsquo;s educational expenses. To address this concern, a new calculator tool has been designed to provide parents with a clear understanding of the funds required and how to plan for their child\u0026rsquo;s education.\nUnderstanding the Calculator\r#\rThe newly developed calculator is a comprehensive tool that takes into account various factors to calculate the current and future amount needed for a child\u0026rsquo;s graduation or post-graduation. Parents are required to input the duration of the course, the annual cost of the course, inflation rate, and the expected rate of return on investments.\nFor instance, let\u0026rsquo;s consider the cost of an M-Tech course in the USA, which ranges from 70 lakhs to 1.3 crores. By using the calculator, parents can get a precise estimation of the current amount needed and the future value required to fund their child\u0026rsquo;s education.\nBenefits for Parents\r#\rFinancial Planning Made Easy The calculator takes the guesswork out of financial planning, providing parents with a clear roadmap to meet their child\u0026rsquo;s educational expenses. By knowing the exact amount they need to save and invest, parents can plan better and start early. Understanding Inflation Impact Education costs tend to increase over time due to inflation. The calculator factors in inflation rates, giving parents an accurate picture of future expenses and allowing them to make informed decisions. Tailored to Individual Needs The tool is versatile and can be customized for various courses and countries, accommodating different scenarios and providing specific insights into each case. Education Calculator is available here\nBelow is a calculation of the usage of the tool for a course which starts in 2030 and the fees per year is Rs 5,00,000/-. The course fees has an inflation of 5% and if the corpus is invested in an instrument which will give a return of 6%, then the corpus that you need today is Rs 18.45 lakhs and the corpus that you need at the start of the goal is Rs 27.74 lakhs.\nConclusion\r#\rInvesting in education is one of the most significant gifts parents can give to their children. However, it requires careful financial planning to ensure their dreams don\u0026rsquo;t turn into financial burdens. The newly developed calculator empowers parents with the knowledge and tools to create a robust education fund for their children\u0026rsquo;s graduation or post-graduation, be it in India or abroad. By taking into account course costs, inflation, and investment returns, parents can now confidently plan for the future and secure their child\u0026rsquo;s educational aspirations. So, if you\u0026rsquo;re a parent with dreams for your child\u0026rsquo;s education, embrace this calculating tool and pave the way for a bright and successful future.\n","date":"3 August 2023","externalUrl":null,"permalink":"/posts/knowledge-articles/education/","section":"Posts","summary":"\rInvesting in a quality education is a dream for every parent, but the rising cost of higher education can be daunting. Whether it’s a graduation course in India or pursuing post-graduation abroad, parents often find it challenging to plan for their child’s educational expenses. To address this concern, a new calculator tool has been designed to provide parents with a clear understanding of the funds required and how to plan for their child’s education.\n","title":"Higher Education Calculator","type":"posts"},{"content":"\rPlanning to take out a loan? Understanding how much you\u0026rsquo;ll need to repay each month is crucial for sound financial management. An EMI Calculator is a powerful tool that simplifies this process and empowers borrowers to make informed decisions about their loans. In this blog, we\u0026rsquo;ll explore the significance of an EMI Calculator and how it can help you manage your finances effectively.\nWhy a Loan Calculator Matters?\r#\rAn EMI Calculator takes the hassle out of loan repayment planning. Whether it\u0026rsquo;s a home loan, car loan, or personal loan, this nifty tool uses essential inputs like the loan amount, interest rate, and tenure to compute your monthly installments accurately. Knowing your EMIs in advance enables you to budget wisely and avoid any unwelcome surprises down the road.\nThe EMI Calculation Explained\r#\rThe calculation behind the EMI is based on a well-established formula that combines both the principal loan amount and the interest component. As you pay your EMIs over time, your outstanding loan balance reduces, bringing you closer to financial freedom.\nTable Representation: Visualizing Your Loan Repayment\r#\rAt the heart of the EMI Calculator lies a user-friendly table that provides a month-by-month breakdown of your EMIs. This table details the installment number, EMI amount, interest component, principal repayment, and the outstanding balance after each payment. The clear and concise layout allows you to track your progress and understand how each payment impacts your loan balance.\nBelow is a sample table representation of an EMI Calculator\u0026rsquo;s output:\nMonth Opening Amount Principal Repayment Interest Component Prepayment Outstanding Balance 1 Rs XXX.XX Rs XX.XX Rs XXX.XX Rs XXX.XX Rs XXXXX.XX 2 Rs XXX.XX Rs XX.XX Rs XXX.XX Rs XXX.XX Rs XXXXX.XX 3 Rs XXX.XX Rs XX.XX Rs XXX.XX Rs XXX.XX Rs XXXXX.XX \u0026hellip; \u0026hellip; \u0026hellip; \u0026hellip; \u0026hellip; n Rs XXX.XX Rs XX.XX Rs XXX.XX Rs XXX.XX Rs XXXXX.XX Visualizing Your Journey with Interactive Charts\r#\rTo complement the table representation, the EMI Calculator features an interactive line chart. The chart visually represents your monthly EMI variations over the loan tenure, allowing you to analyze trends and plan for future financial commitments. This intuitive chart ensures that you stay in control of your finances at all times.\nSample Chart:\nSample Chart using EMI Calculator\rYour Feedback Matters!\nWe believe in continuous improvement, and your feedback is crucial in refining our Loan Calculator to meet your needs effectively. If you encounter any issues or have suggestions for enhancing the calculator\u0026rsquo;s performance, please don\u0026rsquo;t hesitate to reach out to us. Your insights are invaluable in making this tool even more user-friendly and reliable. You can reach out to me on my mail or you could leave a comment below.\nConclusion\r#\rAn EMI Calculator is your trusted companion when it comes to managing loan repayments. With its user-friendly table and interactive chart, you gain a comprehensive understanding of your loan journey and can plan your finances with confidence. Empower yourself with this powerful financial tool and take charge of your loan repayment journey today!\nDisclaimer: This blog serves as a general guide on EMI Calculators and loan repayments. For precise calculations and advice, it\u0026rsquo;s always best to consult with a financial advisor.\n🏦 EMI Loan Calculator\rPrincipal Amount (₹)\rEnter between ₹10,000 and ₹10 Cr\rInterest Rate (% per annum)\rBetween 1% and 30%\rLoan Tenure (Years)\rBetween 1 and 30 years\rYearly Prepayment Amount (₹)\rBetween ₹0 and ₹1 Cr\rCalculate EMI ›\rMonthly EMI\r—\rTotal Interest\r—\rTotal Payment\r—\r📈 Loan Repayment Breakdown\r🗓️ Month-wise Repayment Schedule\rMonth\rOpening Balance\rPrincipal\rInterest\rEMI\rPrepayment\rClosing Balance\r","date":"6 July 2023","externalUrl":null,"permalink":"/posts/tools/home/","section":"Posts","summary":"\rPlanning to take out a loan? Understanding how much you’ll need to repay each month is crucial for sound financial management. An EMI Calculator is a powerful tool that simplifies this process and empowers borrowers to make informed decisions about their loans. In this blog, we’ll explore the significance of an EMI Calculator and how it can help you manage your finances effectively.\n","title":"Loan Calculator","type":"posts"},{"content":"","date":"27 June 2023","externalUrl":null,"permalink":"/tags/retirement-planning-/","section":"Tags","summary":"","title":"Retirement Planning ","type":"tags"},{"content":"\rIn the vast realm of investment opportunities, there is one that stands out but often goes noticed but sometimes overlooked by investors: mutual funds. It is high time to explore the compelling reasons why you, as an investor, should seriously consider embracing mutual funds. By thoroughly examining data related to passports, mutual fund holders, car sales, GDP, and more, we can present a vivid picture of the immense potential waiting to be seized. Recently, I had the privilege of attending a meeting hosted by HDFC Mutual Fund where they shared impressive data emphasizing the untapped opportunity for investors to engage with mutual funds. With this message, I aim to reach potential investors like you and encourage you to seriously consider investing in mutual funds.\nDear Potential Investor,\r#\rI want to bring your attention to an investment opportunity that often goes overlooked but holds immense potential: mutual funds. In this letter, I will highlight compelling reasons why you should consider embracing mutual funds and the benefits they offer.\nWhy are retail investors failing to harness the power of mutual funds ?\r#\r1. Passport, F\u0026amp;O , Crypto Accounts and Mutual Fund Holders\r#\rIndia has 10.5 crore passport holders. However, there are only 3.8 crore individuals who are mutual fund investors. A vacation outside India costs no less than Rs 2 lakhs. Perhaps , the passport is used for identity proof, though a very costly identity proof.\nThere are many who are speculating their money in stock market.\nIn a recent report by SEBI, it is noted that 90% of the losses are suffered by individual investors and yet we continue to receive tips on how do we go about entering the derivative market.\nCryptocurrency is another place now where individuals are putting their money in to gain quick money. I am also informed that there are 11 crore crypto accounts. 2. Rising Demat Accounts\r#\rThe steady surge in demat accounts, with numbers increasing from 1.8 crore in 2019 to 3.08 crore in 2023, reveals a rising interest in financial investments. However, it was also during the time, when Work-From-Home was the norm, IPO was the season and everyone wanted to make quick money. We should transition from seeking immediate satisfaction in making quick money to focusing on long-term investments that allow for the creation of genuine wealth. Mutual funds provide a gateway to diversification and professional management, empowering you to make informed decisions while maximizing your returns.\nI urge you to stay away from get rich quick schemes and choose mutual funds for building long term wealth.\nOn average, when a retail investor such as yourself chooses to invest independently, they tend to remain invested for no longer than two years. Despite numerous articles suggesting that investors can handle their investments alone, not every investor possesses the same level of expertise as the individuals providing such advice, nor do they have sufficient time to fully comprehend the market. Additionally, the fear of missing out (FOMO) often leads investors to continually chase returns, resulting in frequent changes to their mutual funds, shifting from the previous year\u0026rsquo;s high-performers to the current year\u0026rsquo;s potential multi-baggers.\nMany retail investors hold the belief that a 100% riskier return is superior to a 12% average return due to the influence of their friends, relatives, schoolmates, or social circle who have achieved such returns and thereby assume they can replicate the same success.\nBy investing in mutual funds, you can tap into the vast potential that lies within your reach.\n3. 73% of mutual fund redeemed within 2 years\r#\rDuring FY 2022-23, 73% of mutual fund was redeemed within 2 years. It is known that long time investment creates wealth. The reasons could be many for redeeming within 2 years, but for wealth creation, one needs to hold their investment for a long period of time. It is perhaps that they have been misdirected by the distributor or it was DIY investor, but with the right assistance one can create long term wealth. An individual in the path of creating wealth requires guidance and reassurance of his investment.\nWhy do I believe that the equity market will rise ?\r#\rAs a potential investor, I will give you a few proxy indicators which gives you a good indication that for the next decade our country should do well.\n1. Car Sales as an Indicator of Economic Activity\r#\rThe roaring success of the automotive industry, with approximately 37 lakh cars sold in 2022 and Maruti commanding a 41% market share, signals a thriving economy. Embracing mutual funds enables you to ride this wave of economic growth and translate it into substantial returns.\n2. GDP Growth\r#\rIndia\u0026rsquo;s remarkable GDP growth rate of 8.68% in 2022, propelling the per capita income from $1900 to $2200, showcases a country on the rise. By investing in mutual funds, you align yourself with this upward trajectory, amplifying your wealth creation potential.\nGoa boasts the highest per capita among states, while Bengaluru holds the distinction of having the highest per capita among cities.\n3. Seizing the Wave of Corporate Earnings\r#\rCorporate earnings are skyrocketing, with all profits after tax reaching an astounding 10 lakh crore in March 2023, compared to 4.5 lakh crore in March 2020. Industry giants like Reliance, ONGC, and Tata Steel are driving this growth, providing you with an ideal entry point to ride the wave and maximize your investment gains.\nMarket is a slave to corporate earnings and therefore the market is at its peak as of today !\nHow can mutualfunds help ?\r#\rAs an investor, you may have limited time and knowledge, which can hinder your ability to fully leverage market opportunities. However, mutual funds provide a solution by granting you access to expert fund managers who diligently strive to enhance your investments. By entrusting your funds to these professionals, you can navigate the market with confidence, secure in the knowledge that your financial future is being handled by capable hands.\nUnleashing the Power of Household Financial Savings\r#\rIt\u0026rsquo;s time to revolutionize your approach to savings and investments. By reallocating a portion of your bank fixed deposits, life insurance policies, and small savings into mutual funds, you unlock the potential for higher returns. Embrace this opportunity to harness the power of compounding and make your money work harder for you.\nAs per the data of Household financial savings 2022, the highest amount of money is still stored in Bank FD which is about 6.54 lakh crore and at the same time only about 1.6 lakh crore is deployed to Mutual Funds. In fact, more money is deployed in Life Insurance, PF / Pension, Small Savings and even in Currency as compared to Mutual Funds.\nConclusion\r#\rThe time to act is now. As India\u0026rsquo;s economy surges forward, demat accounts multiply, and corporate earnings soar, mutual funds emerge as the optimal investment avenue. By embracing mutual funds, you position yourself to capitalize on the country\u0026rsquo;s economic growth, expert guidance, and the power of compounding. Unleash your true investment potential, seize the opportunities that lie before you, and secure a prosperous financial future. Take the leap into mutual funds today and unlock a world of limitless possibilities. To build long-term wealth, it is crucial to recognize the impact of holding investments for extended periods. The alarming trend of early redemptions underscores the significance of seeking guidance from a trusted distributor. With their expertise, you can overcome the challenges of the investment journey, capitalize on the power of compounding, and stay committed to your financial goals.\nStay Invested, Stay Wealthy !\nYour benevolent friend,\nSubramanian V\nReferences\r#\rEconomic Times - FO Losses\nAMFI\nIndia Car Sales - 1\nIndia Car Sales - 2\nDemat Accounts - 1\nDemat Accounts - 2\nMotilal Oswal - Demat Accounts\nRedemption of Mutual Funds\nHousehold Financial Savings\nGDP per State\nI want to invest todayt!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"27 June 2023","externalUrl":null,"permalink":"/posts/financial-planning/why-invest-now/","section":"Posts","summary":"\rIn the vast realm of investment opportunities, there is one that stands out but often goes noticed but sometimes overlooked by investors: mutual funds. It is high time to explore the compelling reasons why you, as an investor, should seriously consider embracing mutual funds. By thoroughly examining data related to passports, mutual fund holders, car sales, GDP, and more, we can present a vivid picture of the immense potential waiting to be seized. Recently, I had the privilege of attending a meeting hosted by HDFC Mutual Fund where they shared impressive data emphasizing the untapped opportunity for investors to engage with mutual funds. With this message, I aim to reach potential investors like you and encourage you to seriously consider investing in mutual funds.\n","title":"Unveiling the Untapped Potential: Why Investors Must Embrace Mutual Funds Now","type":"posts"},{"content":"\rHDFC Mutual Fund, a prominent player in the Indian asset management industry, has undergone a remarkable transformation in recent months. In this article, we explore the key factors behind HDFC Mutual Fund\u0026rsquo;s resurgence, as well as the insights shared by Navneet Munot, the Chief Investment Officer, regarding the company\u0026rsquo;s future direction. We also delve into the impressive performance of select HDFC funds and analyze the strategies employed to achieve such outstanding results.\nExpanding the Investor Base\r#\rHe emphasizes the importance of increasing the number of unique investors in the mutual fund industry. In his interview, he articulates his vision to grow the investor base tenfold in the next decade. HDFC Mutual Fund are putting across strategies which can attract a wider range of investors, thereby ensuring sustainable growth and reducing dependence on a few large investors.\nManaging Leadership Transition\r#\rWith Prashant Jain stepping down, a renowned fund manager, from HDFC Mutual Fund raised concerns among investors. Munot\u0026rsquo;s ability to effectively manage the leadership transition and maintain continuity in investment strategies is critical for preserving investor confidence and fund performance. I believe that the fund performance is already showing the results and the efforts that have been put in the last 1 year.\nDriving Domestic Equity Flows\r#\rThe new CIO of HDFC AMC, an advocate of India\u0026rsquo;s economic self-reliance, emphasizes the significance of boosting domestic equity flows. He believes that necessary regulatory reforms and investor education initiatives are required to achieve this objective. By strengthening the domestic equity market, HDFC Mutual Fund can play a pivotal role in supporting India\u0026rsquo;s economic growth.\nRemarkable Performance of HDFC Funds\r#\rSeveral HDFC funds have demonstrated exceptional performance. We highlight some of these funds, including HDFC Top 100, HDFC Focused 30, HDFC Tax Saver, HDFC Smallcap, HDFC Midcap, and HDFC Balanced Advantage Fund.\nHDFC MidCap has been a top performer with a 1-year return of 18.22% and with an AUM of 35173 cr. HDFC Smallcap has been a top performer with a 1-year return of 21.21% and with an AUM of 14963 cr. HDFC Balanced Advantage again doing really well with a 1-year return of 17.02% and with an AUM of 52079 cr. HDFC Top 100 which has been a huge hit in the early 2000-2010 is once again doing well in the large-cap space with a return of 13.19% and an AUM of 22,294 cr HDFC Focused 30 with an AUM of close to 4000 crores has given a return of 20% HDFC Tax Saver which has seen changes in their fund manager has also performed really well and has given a return of 14.54% with an overall AUM of 9815 cr. Reinforcing Trust: Customer Recommendations\r#\rAbout 6 to 8 months back, when I had recommended HDFC Funds to customers they were initially skeptical. However, the recent performance of HDFC Mutual Fund\u0026rsquo;s has changed customer perceptions and the significance of building trust in the industry. To achieve impressive performance, HDFC Mutual Fund has adopted an aggressive approach, taking calculated risks and demonstrating conviction in the economy and various industries. Some of their good picks in stocks include ITC, Indian Hotels, ICICI Bank, Axis Bank, Infosys etc\u0026hellip;\nConclusion\r#\rThe recent turnaround of HDFC Mutual Fund, coupled with the insights shared by Navneet Munot, present a promising path forward for the organization. By expanding the investor base, managing leadership transitions effectively, and driving domestic equity flows, HDFC Mutual Fund can further strengthen its position in the market. Additionally, the exceptional performance of select HDFC funds highlights the fund\u0026rsquo;s potential to deliver consistent returns. With an unwavering commitment to strategic growth and innovative investment approaches, HDFC Mutual Fund is poised for continued success in the Indian asset management landscape\nShould I buy HDFC Mutual Fund now!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"21 June 2023","externalUrl":null,"permalink":"/posts/spotlight/hdfc-amc/","section":"Posts","summary":"\rHDFC Mutual Fund, a prominent player in the Indian asset management industry, has undergone a remarkable transformation in recent months. In this article, we explore the key factors behind HDFC Mutual Fund’s resurgence, as well as the insights shared by Navneet Munot, the Chief Investment Officer, regarding the company’s future direction. We also delve into the impressive performance of select HDFC funds and analyze the strategies employed to achieve such outstanding results.\n","title":"Top performing funds in HDFC AMC","type":"posts"},{"content":"\rEngineering education has always been highly regarded for its promising prospects and abundant career opportunities. However, one significant aspect that has changed over the years is the escalating cost associated with pursuing an engineering degree. As we explore the soaring fees of engineering seats, it becomes increasingly evident that early financial planning is crucial to ensure a smooth educational journey for your son or daughter. Planning ahead enables families to explore various financial avenues, scholarships, and investment options, empowering them to provide their child with the best possible education without compromising their long-term financial stability.\nThe Changing Landscape\r#\rLet us reflect on the cost of engineering education in the past. I did my electronics engineering from University of Mumbai and the paid engineering seat could be secured for a modest fee of Rs 32,000. Fast forward to the present day, and the scenario is dramatically different. The fees for a single year of engineering education now range from Rs 2 lakh to a staggering 20 lakhs, depending on the institution and the course.\nThe Escalating Costs\r#\rTo illustrate the exponential rise in fees, let\u0026rsquo;s examine the expenses associated with computer science seats in renowned engineering colleges. For instance, the prestigious RV College of Engineering (RVCE) charges a staggering Rs 19 lakhs per year, while the esteemed BMS College of Engineering demands Rs 10 lakhs per year for the same course. Even in the highly reputed Indian Institutes of Technology (IITs), where education is heavily subsidized, the fees for a computer science seat can amount to Rs 2.5 lakhs per year. Inflation of an engineering seat is nearly 8-10% and in some cases much higher.\nThe Importance of Early Financial Planning\r#\rConsidering the daunting challenge posed by the rising costs of engineering education, it is crucial for parents to start planning their son or daughter\u0026rsquo;s finances early. By initiating financial planning well in advance, you can mitigate the burden of education expenses and ensure a smoother path for your child\u0026rsquo;s educational journey.With a well-thought-out financial plan in place, you can alleviate the financial strain on your family and provide your child with the best educational opportunities without compromising their future prospects.\nStarting early allows you to explore various avenues to accumulate funds, such as setting up a dedicated education fund, exploring scholarship opportunities, and considering long-term investment options.\nExploring Solutions\r#\rIn addition to early financial planning, it is vital for policymakers and educational institutions to address the issue of escalating fees. Scholarships and financial aid programs should be expanded to provide access to quality education for deserving students.\nMoreover, educational institutions can work towards diversifying their revenue streams. Establishing partnerships with industries, encouraging alumni donations, and seeking government grants can help reduce the burden of high fees on students while maintaining educational standards.\nConclusion\r#\rThe soaring costs of engineering education present a significant hurdle for aspiring engineers, underscoring the need for early financial planning. The days of affordable engineering fees are long gone, and parents must proactively start planning their child\u0026rsquo;s finances to navigate this financial challenge. By doing so, you can provide your son or daughter with the necessary resources to pursue their engineering dreams without burdening them with excessive debt. As policymakers and educational institutions collaborate to address this issue, it is crucial for families to take the initiative and lay the groundwork for a secure and successful educational journey. By starting early and planning wisely, you can set your child on the path to a bright future and empower them to contribute to the growth and development of our nation.\nI need help with planning for my ward\u0026#39;s graduation!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"19 June 2023","externalUrl":null,"permalink":"/posts/financial-planning/engineering/","section":"Posts","summary":"\rEngineering education has always been highly regarded for its promising prospects and abundant career opportunities. However, one significant aspect that has changed over the years is the escalating cost associated with pursuing an engineering degree. As we explore the soaring fees of engineering seats, it becomes increasingly evident that early financial planning is crucial to ensure a smooth educational journey for your son or daughter. Planning ahead enables families to explore various financial avenues, scholarships, and investment options, empowering them to provide their child with the best possible education without compromising their long-term financial stability.\n","title":"Navigating the rising costs of engineering education","type":"posts"},{"content":"\rPlanning investments as newly married individuals in India requires a thoughtful approach that considers the unique characteristics of the Indian financial landscape. Our traditions play a significant role in shaping our investment journey. Additionally, the influence of social media and the weight of traditional investment practices can guide our path towards making informed investment decisions. It is important to blend our cultural values with modern investment strategies to create a balanced portfolio that aligns with our financial goals. By embracing the strengths of our cultural heritage and leveraging the opportunities presented by evolving investment trends, newly married couples in India can navigate their investment journey with confidence and achieve long-term financial success.\nHere are some key points to help you plan your investments effectively:\nDefine financial goals\r#\rAs newlyweds, it is important to start by setting clear financial goals together. Focus on short-term objectives such as building an emergency fund, saving for a down payment on a home, or planning a special vacation. Alongside these immediate goals, consider laying the groundwork for future financial stability by setting aside funds for retirement, ensuring your children\u0026rsquo;s education, or even creating wealth over time. By setting specific and achievable goals, you can guide your investment decisions and work towards realizing these milestones together.\nRemember, finding a balance between short-term gratification and long-term financial security is key as you embark on this exciting journey as a newly married couple.\nBudgeting and savings\r#\rCreate a budget that outlines your income, expenses, and savings. Ensure that you allocate a portion of your income towards savings and investments. Aim to save at least 20% of your income, and avoid unnecessary expenses to generate surplus funds for investments.\n\u0026ldquo;A budget is telling your money where to go instead of wondering where it went.\u0026rdquo; - Dave Ramsey\nEmergency fund\r#\rBuild an emergency fund to cover unexpected expenses. Aim to save three to six months\u0026rsquo; worth of living expenses in a liquid and easily accessible account. This fund acts as a safety net during financial emergencies, preventing you from dipping into your investments.\nUnderstand tax benefits\r#\rFamiliarize yourself with tax-saving investment options available in India, such as Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF), National Pension Scheme (NPS), and tax-saving fixed deposits. These investments not only provide tax benefits but also facilitate long-term wealth accumulation.\nDiversify your portfolio\r#\rDiversification is key to managing risk. Allocate your investments across different asset classes like equity, debt, real estate, and gold. Mutual funds can be an effective way to diversify your portfolio as they offer access to professional management and a range of investment options. Understand risk factor of each instrument from safest Government bond to the riskiest cryptocurrency or any other instrument.\nStay informed\r#\rKeep yourself updated about various investment avenues in India, including their risks, returns, and tax implications. Stay informed about market trends, economic developments, and changes in regulations that may impact your investments. Regularly educate yourself to make informed investment decisions.\nSeek professional advice\r#\rConsider consulting with a qualified financial advisor who can understand your goals, risk appetite, and investment horizon. They can provide personalized advice, help you select suitable investment options, and assist in periodically reviewing your portfolio.\nRegular review and adjustments\r#\rPeriodically review your investment portfolio to assess its performance and alignment with your goals. Make necessary adjustments based on changing market conditions or shifts in your financial situation. Regularly rebalance your portfolio to maintain the desired asset allocation.\nNomination\r#\rUpdate your nomination in all your saving instruments including FD, stocks, demat account, mutual funds etc\u0026hellip;Nomination expedites the settlement process for financial instruments. In the event of the account holder\u0026rsquo;s death, the nominee becomes the rightful recipient and can claim the proceeds or benefits without delay. This avoids prolonged legal procedures and reduces the time and effort required to transfer ownership or access funds.\nConclusion\r#\rBy adopting a systematic and informed approach, newly married couples in India can pave the way for a financially secure future. It is important to clearly define your financial goals and align your investment decisions accordingly. Diversify your investments across different asset classes to spread risk and maximize returns. Seek professional guidance from qualified advisors to make informed choices. Stay committed to your investment strategy, maintain discipline, and exercise patience as you work towards achieving your financial aspirations as a newly married couple in India.\n\u0026ldquo;Set shared financial goals and work together to achieve them. A united front is key to financial success.\u0026rdquo;\nI need help with shared goals!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"16 June 2023","externalUrl":null,"permalink":"/posts/financial-planning/newly-married/","section":"Posts","summary":"\rPlanning investments as newly married individuals in India requires a thoughtful approach that considers the unique characteristics of the Indian financial landscape. Our traditions play a significant role in shaping our investment journey. Additionally, the influence of social media and the weight of traditional investment practices can guide our path towards making informed investment decisions. It is important to blend our cultural values with modern investment strategies to create a balanced portfolio that aligns with our financial goals. By embracing the strengths of our cultural heritage and leveraging the opportunities presented by evolving investment trends, newly married couples in India can navigate their investment journey with confidence and achieve long-term financial success.\n","title":"Financial Planning for newly married","type":"posts"},{"content":"","date":"13 June 2023","externalUrl":null,"permalink":"/tags/health-insurance/","section":"Tags","summary":"","title":"Health Insurance","type":"tags"},{"content":"","date":"13 June 2023","externalUrl":null,"permalink":"/tags/insurance/","section":"Tags","summary":"","title":"Insurance","type":"tags"},{"content":"\rHealth insurance is crucial for financial protection against rising healthcare costs. It ensures access to quality healthcare, safeguarding individuals and their families during medical emergencies. With health insurance, one can avail cashless hospitalization and receive timely medical treatment without the burden of upfront payments. Additionally, it provides coverage for critical illnesses and offers tax benefits, promoting preventive care and overall well-being. There are many more benefits of health insurance which you will find it below here.\n1. Medical Inflation\r#\rMedical inflation is up by 14% and therefore the rising medical costs. A major surgery could wipe out your entire savings and therefore when you buy the cover ensure that you have considered the medical inflation and the amount of money you may require if you would have to do a surgery in senior years. The other way to think about this is cost of fitness is much lesser than the surgery, so be fit but at the same time insure yourself.\n2. No longer in the organization - No cover\r#\rHealth insurance provided by the company ceases the moment you are no longer employed. As soon as your employment contract ends with your organization, your insurance ceases. It is important that you are protected throughout and your employment choice or your employment doesn\u0026rsquo;t determine your cover.\n3. Insurance checks are stringent\r#\rInsurance checks have become stringent. I remember for life insurance, there were no medical checks about 5 years back. However, many of these checks have become mandatory. Please remember the insured gives the proposal to the insurer and the insurer has to accept. For the insurer to accept with these new checks like medical tests etc\u0026hellip; , the premium may go up or in some cases, they may not even give an insurance.\n4. Moratorium Period\r#\rIf a policyholder maintains the coverage for 8 years without a break, the health insurance provider cannot deny a claim. These 8 years are called the moratorium period.\nConclusion\r#\rHealth insurance is an absolute necessity in today\u0026rsquo;s world. It provides financial security and shields individuals from the skyrocketing costs of healthcare. With access to quality medical services and cashless hospitalization, it ensures timely and comprehensive treatment. Moreover, health insurance covers critical illnesses, reducing the burden of expensive medical procedures. By prioritizing health insurance, individuals can protect themselves and their loved ones, giving them peace of mind in times of medical uncertainty.\nReferences\r#\rMoratorium Period\nMedical Inflation\nHealth Insurance\nIn case you have challenges in buying the right health insurance, you can reach out to me via email or send a message in LinkedIn\nI need some help with Health Insurance!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"13 June 2023","externalUrl":null,"permalink":"/posts/didyouknow/4-reasons-health-insurance/","section":"Posts","summary":"\rHealth insurance is crucial for financial protection against rising healthcare costs. It ensures access to quality healthcare, safeguarding individuals and their families during medical emergencies. With health insurance, one can avail cashless hospitalization and receive timely medical treatment without the burden of upfront payments. Additionally, it provides coverage for critical illnesses and offers tax benefits, promoting preventive care and overall well-being. There are many more benefits of health insurance which you will find it below here.\n","title":"Why should you buy Health Insurance","type":"posts"},{"content":"\rJust like how a client chooses or wishes to choose an ideal financial advisor, we also have a list of characteristics we seek in an ideal client especially for financial planning ! As a financial advisor, we need to provide you with a tailored expertise and value for your investments . Trust and collaboration are essential for achieving both personal and professional success. As an investment advisor, we need to provide relevant suggestions to you in a timely manner. Together, we shall form a partnership aimed at achieving success\nSome of the characteristics that we look forward in a client are :\nHas a clear financial goal or objective Is committed to improving the existing financial situation Has a stable income source Is willing to save and invest for the future Understands the importance of budgeting and managing expenses Has a long-term mindset and is willing to make necessary adjustments to achieve financial objectives Is open to seeking professional advice and guidance Values financial education and is willing to learn about personal finance concepts Is willing to provide necessary financial information for analysis and recommendations Is willing to regularly review and update your investments as circumstances change Has a positive and collaborative attitude towards working with an advisor Values transparency and trust in the client-advisor relationship Values delayed gratification and shows patience towards financial investments Our clients wish to work with us because :\r#\rExpertise and Knowledge\r#\rWe possess specialized knowledge and expertise in various areas of personal finance. They seek guidance to benefit from our understanding of complex financial concepts, investment strategies, and more. By leveraging our expertise, clients can make informed decisions and navigate their financial journey more effectively.\nObjectivity and Unbiased Advice\r#\rA significant advantage of working with us is our ability to provide objective and unbiased advice. As professionals, we prioritize your best interests, offering guidance that aligns with your specific needs and goals. We can provide an outside perspective, detached from emotional biases, enabling you to make rational financial choices and avoid common pitfalls.\nTime and Effort Savings\r#\rManaging personal finances can be time-consuming and overwhelming, particularly for individuals with complex financial situations or busy lifestyles. By working with us, clients can delegate the responsibility of managing their investments. This allows them to focus on other aspects of their lives, knowing that their financial affairs are in capable hands. We handle tasks such as investment management and tracking your investment progress , saving their valuable time and effort.\nPeace of Mind and Confidence\r#\rFinancial matters often induce stress and uncertainty. Engaging us brings peace of mind and boosts their confidence in their financial future. With a solid investment plan in place, you gain a sense of control and reassurance, knowing that their financial goals are being addressed proactively. Regular reviews, adjustments, and ongoing support from us provides you with the confidence that you are on the right track and making informed decisions for their financial well-being.\nI am your ideal client!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"9 June 2023","externalUrl":null,"permalink":"/posts/financial-planning/ideal-client/","section":"Posts","summary":"\rJust like how a client chooses or wishes to choose an ideal financial advisor, we also have a list of characteristics we seek in an ideal client especially for financial planning ! As a financial advisor, we need to provide you with a tailored expertise and value for your investments . Trust and collaboration are essential for achieving both personal and professional success. As an investment advisor, we need to provide relevant suggestions to you in a timely manner. Together, we shall form a partnership aimed at achieving success\n","title":"Ideal Client","type":"posts"},{"content":"\rLife Insurance\r#\rLife insurance is a very important tool for financial planning. It is a part of risk planning. In this case, we transfer the risk to the insurer. With this, we ensure that the goals of our loved ones are met during our absence. Some of the common questions that any individual has on insurance are answered below including how much cover to take, till what age, what kind of policy, should I go in for riders, which insurance company etc\u0026hellip;\n1. Whether you need life insurance\r#\rIn case there are no dependents, you don\u0026rsquo;t require a life insurance. However, we are generally in the scenario where :\nSomeone depends on us financially for their goals including sustenance, retirement, education, higher education etc\u0026hellip; Your current assets may not be sufficient to achieve all of your dependent\u0026rsquo;s goals and if the risk may occur, this insurance could help You may wish to cover your funeral expenses and also there could be some liabilities that you may have (for e.g. home loan) and this life insurance could cover these liabilities as well 2. Coverage Amount\r#\rThe amount of coverage that you require for life insurance depends on your goals, your current assets and liabilities. For example, assume that you are a family of 3. For any such family, there would be few goals including child/ren education, higher education, marriage, retirement etc\u0026hellip; The family would have taken a home loan for their new house and therefore they have an outstanding liability. They have close to Rs 10 lakhs in their bank and do not possess any other assets. In such a case, the coverage amount would be the present value of their goals + outstanding liabilites - assets. In case they wish to leave an inheritance for their children, you can add the amount to the life insurance. There are other simpler methods available including rule of thumb etc\u0026hellip;, but in case of financial goals the amount is more accurate.\n3. Decide on your financial goals for your life insurance\r#\rAs mentioned in point 2, it is important to know your financial goals and therefore what would be the amount that you would require to meet your financial goals as of today. It is important to prioritize your financial goals , put an approximate amount towards such goals and add up. Buying a car , perhaps, may not fall under your financial goal for life insurance. In other words, you may not want to use the money coming from life insurance, to purchase a car but rather spend it in ways which you deem essential.\n4. Type of policy\r#\rI always recommend to have Term Insurance as your life insurance policy. It is plain and simple. The premium is your expense. Premium of Term Insurance policies, when purchased early in your life, is very less as compared to other type of policies.\n5. Policy term\r#\rPolicy term basically means the term during which your policy is in effect.\nThe policy term should be the time period by when you wish to achieve your last financial goal. For example, when you purchased the policy at 34, you had 5 financial goals and by 60 if you have achieved them all and you have your retirement assets which will cover you till your life expectancy, you don\u0026rsquo;t need a life insurance. This goes back to point 1, do you need life insurance when there are no dependents ! Most likely, you may not require. This requires foresight and therefore adding an extra 2-5 years may not make a big dent in your wallet !\n6. Premiums\r#\rPremiums are lowest in term insurance policy. All other type of policies focusses on inefficient ways of investing your money and therefore the premiums are high.\n7. Riders\r#\rThere are many types of riders which are available with the policy at an extra cost. Some of the common riders include accidental death benefit, critical illness, waiver of premium etc\u0026hellip; One needs to check if they really could benefit from this, and decide accordingly. Some of these riders are available at very low premiums and an individual could benefit from it.\n8. Insurance Company\r#\rInsurance company\u0026rsquo;s ability to stay afloat (financial stability), customer service and their brand play an important role in choosing the insurance company. Claim settlement ratio is one of the most important factors that determine which insurance company to go for.\n9. Health and Lifestyle\r#\rYour own health and lifestyle also determines the amount of coverage that you should go for and the type of policy you should procure. Our behaviours and our values determine our health condition and our lifestyle. Therefore put this into perspective before you purchase a term insurance.\n10. Tell your beneficiaries\r#\rIt is extremely important that you inform your beneficiaries about your insurance as they need to produce these documents to the insurance company, if at all, the event takes place. This makes it easier for them.\nConclusion\r#\rLife insurance forms an important part of financial planning and it covers the risk of non-availability of financial resources in your absence. With proper financial planning, you would be able to arrive at a much better number of the coverage amount that you would need and therefore your premium that you would need will be sufficient and the policy term would be just right for you.\nIn case you have challenges in buying the right life insurance, you can reach out to me via email or send a message in LinkedIn\nI need some help with Life Insurance!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"21 April 2023","externalUrl":null,"permalink":"/posts/didyouknow/lifeinsurance/","section":"Posts","summary":"\rLife Insurance\r#\rLife insurance is a very important tool for financial planning. It is a part of risk planning. In this case, we transfer the risk to the insurer. With this, we ensure that the goals of our loved ones are met during our absence. Some of the common questions that any individual has on insurance are answered below including how much cover to take, till what age, what kind of policy, should I go in for riders, which insurance company etc…\n","title":"Life Insurance","type":"posts"},{"content":"","date":"21 April 2023","externalUrl":null,"permalink":"/tags/life-insurance/","section":"Tags","summary":"","title":"Life Insurance","type":"tags"},{"content":"\rHealth insurance forms an important part of your goal planning and it covers a major risk where financial resources could get depleted. With health insurance, you cover / transfer the risk. Health insurance is not an easy product to buy off the shelf and one requires a good understanding of its features and benefits before purchasing the right product including the amount of cover. Each individual is different and therefore one needs to understand the finer features of the product. Lower the premium and therefore the product doesn\u0026rsquo;t make sense.\n1. Company provided health insurance\r#\rHealth insurance provided by the company ceases the moment you are no longer employed\n2. Age limit - Reluctance - Insurance\r#\rHealth insurance companies will be reluctant to provide insurance once you cross 50 or so. With BP / diabetes, the reluctance shows up in the proposal and the limits set by insurance. Even if they do, premium will continue to remain high and benefits will be low\nShow picture of limits\n3. Annual health checks\r#\rAnnual health checks are provided by health insurance which you can take benefit of.\n4. Ambulance\r#\rAmbulance amounts are reimbursed. Road and in some cases even air ambulance subject to a limit.\n5. Room Rent\r#\rRoom rent is a deciding factor in calculating the amount that will be reimbursed on your total bill\n6. Medical Expenses vs Non-Medical Expenses\r#\rWe know that medical expenses are covered in health insurance but there are many non-medical items that are utilized which are not reimbursed. Certain insurance policies cover non-medical expenses for a higher premium.\n7. Second Medical Opinion\r#\rInsurance companies provide a second medical opinion. This is important in case of major surgeries.\n8. Standard Exclusions\r#\rPre-existing diseases, waiting period , obesity, cosmetic procedures are generally put in standard exclusions.\n9. Waiting Period\r#\rBased on type of disease, there will be waiting period and this could range from 30 days to 3 years.\n10. Maternity expenses\r#\rHealth insurance generally cover maternity expenses with an extra amount towards premium.\n11. Moratorium period\r#\rMoratorium period is generally after completion of 8 continuous years of you paying the premium. After the expiry of moratorium period, no health insurance claim shall be contestable except for proven fraud and permanent exclusions provided in the Policy contract\n12. Portability\r#\rThe Insured Person will have the option to port the Policy to other insurers by applying to such insurer to port the entire Policy along with all the members of the family, if any, at least 45 days before, but not earlier than 60 days from the policy renewal date as per IRDAI guidelines related to portability.\n13. Claim Ratio\r#\rClaim settlement ratio is calculated by dividing the number of insurance claims settled by the number of insurance claims received by the insurance company. Higher the claim settlement ratio, better are your chances of getting your claim settled.\n14. Co-payment\r#\rCo-payment means a cost-sharing requirement under a health insurance policy that provides that the Policyholder/insured will bear a specified percentage of the admissible claim amount.\n15. Discounts for active workout\r#\rFor active workouts, discounts upto 30% are provided on the premium. Insurance companies have trackers which track your footsteps and workout and based on certain criteria are willing to give a discount of upto 30%.\nConclusion\r#\rThere are some very good products in Health Insurance at the moment and some of them could actually fit your needs.\nGiven the unpredictability of events taking place, I strongly recommend a health insurance. Apart from health insurance, keep some amount separate in case of unforeseen circumstance.\nIn case you have challenges in buying the right health insurance, you can reach out to me via email or send a message in LinkedIn\nI need some help with Health Insurance!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"13 April 2023","externalUrl":null,"permalink":"/posts/didyouknow/15-reasons-health-insurance/","section":"Posts","summary":"\rHealth insurance forms an important part of your goal planning and it covers a major risk where financial resources could get depleted. With health insurance, you cover / transfer the risk. Health insurance is not an easy product to buy off the shelf and one requires a good understanding of its features and benefits before purchasing the right product including the amount of cover. Each individual is different and therefore one needs to understand the finer features of the product. Lower the premium and therefore the product doesn’t make sense.\n","title":"Health Insurance","type":"posts"},{"content":"\rWhen will market go up ?\r#\rI believe the only question many of you have is when will the market go up ? More importantly when will your returns go up ? This is a persistent question and the IPO euphoria has slowly petered out, the interest in market is waning and we are all waiting and hoping for the turnaround. Do we see light at the end of the tunnel ?\r#\rOn 30th March 2022, Sensex was at 58,683.99. As of today, Sensex is at 57960.99. Sensex has given negative returns. Nifty Bank on the other hand is currently at 39,910.15 and on 30th March 2022, it was at 36,373.60. BSE Midcap and Smallcap index has barely managed to give any returns. We are in a situation where there are too many macroeconomic factors are at play :\nPersistent high inflation \u0026ldquo;Un-ending\u0026rdquo; Russia-Ukraine war and spillover effects on inflation Interest rate hikes As long as there are interest rate hikes, stock markets will be affected, as the central banks all over the world are curtailing the supply of money. Interest rate hikes will be stopped only when the inflation reduces to the comfort level of the Government / Central Bank.\nInterest rate hikes have a broad effect on all stocks and not one stock in particular. Many of the 52 week highs before the rate hike have now become 52 week lows.\nHowever, there are companies which have good balance sheet and operating model can withstand these changes in interest rate hikes.\n2023 overall will be a difficult year and only by the end of this year, there could be some positives or at least a pause in rate hike.\nThere are still 9 months left in this year and there will bepositive sentiments in the market by year end, without factoring black swan events.\nShould I continue to invest ?\r#\rYes, you should take advantage of the low prices of stocks available now, as euphoria will erupt as soon as interest rate would decrease and this may take place by next year. For interest rate to decrease many parameters have to be right for the central bank and Government to take that decision. This includes GDP growth, jobs, consumer spending, inflation etc\u0026hellip;\nIndia Interest Rate\nUS Interest Rate\nHow much should I invest ?\r#\rInvest only that money which you do not want to liquidate in the next 5 years. Do not invest the money that has been earmarked for your planned expenses. In equity markets, unlike in FD\u0026rsquo;s, you can\u0026rsquo;t expect a guaranteed return by the end of a period (month, year, etc..). Equity market depends on too many factors including sentiments. However, over a 5 year period, it has generally given positive returns beating inflation and therefore the lure.\nDisclaimer: Please reach out to your financial advisor before making any investments\rHelp me invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"31 March 2023","externalUrl":null,"permalink":"/posts/monthly-roundup/2023-annual-rewind/","section":"Posts","summary":"\rWhen will market go up ?\r#\rI believe the only question many of you have is when will the market go up ? More importantly when will your returns go up ? This is a persistent question and the IPO euphoria has slowly petered out, the interest in market is waning and we are all waiting and hoping for the turnaround. Do we see light at the end of the tunnel ?\r#\rOn 30th March 2022, Sensex was at 58,683.99. As of today, Sensex is at 57960.99. Sensex has given negative returns. Nifty Bank on the other hand is currently at 39,910.15 and on 30th March 2022, it was at 36,373.60. BSE Midcap and Smallcap index has barely managed to give any returns. We are in a situation where there are too many macroeconomic factors are at play :\n","title":"2022-23 - Rewind","type":"posts"},{"content":"","date":"13 November 2022","externalUrl":null,"permalink":"/tags/dsp/","section":"Tags","summary":"","title":"DSP","type":"tags"},{"content":"","date":"13 November 2022","externalUrl":null,"permalink":"/tags/edelweiss/","section":"Tags","summary":"","title":"Edelweiss","type":"tags"},{"content":"","date":"13 November 2022","externalUrl":null,"permalink":"/tags/franklin-templeton/","section":"Tags","summary":"","title":"Franklin Templeton","type":"tags"},{"content":"","date":"13 November 2022","externalUrl":null,"permalink":"/tags/international-funds/","section":"Tags","summary":"","title":"International Funds","type":"tags"},{"content":"\rInternational funds have been performing exceptionally well 2 years back and I have seen amazing performances from the mutual funds which are invested in international stocks. However, all this changed in February 2022, after SEBI brought the guideline on international investing. This has vexed a lot of intermediaries and investors. Should we continue with international funds or should we look somewhere else ?\nHow have international funds performed ?\r#\rInternational funds till date , since February 2022 have performed poorly. Given that there is a pause in the interest rates, there are reasons to cheer, but is too early to say anything. A mild recession is expected in the new year in Europe and a mild-er recession is expected in USA. There have been huge job cuts across all the IT organizations in USA. This will have a ripple affect across many IT organizations even in India.\nWhat happened ?\r#\rIn January 2022, SEBI gave an advisory for mutual funds to stop further investments into foreign stocks. Some of the good performing mutual funds were restricted by this advisory. Russia - Ukraine war started around 20th February 2022 and many more events took place whereby international funds took a huge beating. Essentially when you have a good stock, which is dipping in price but have a sound business model, you would buy this stock in regular intervals and average your price. This was now restricted, thanks to the above ruling.\nMoreover, now interest rate hikes and layoffs are happening which is going to further exacerbate the situation.\nHow did this affect investors ?\r#\rTill April 2022, we heard assurances that the limit will be increased but this was not happening. Limit will be increased after the budget. Limit will be increased by the FM. Limit will be increased by 1st April 2022. However, we noticed that this was not happening and the performance was dipping across and more pertinent in mutual funds exposed to international stocks. The challenge for the fund manager has been that as mentioned earlier that he cannot even purchase Amazon stock even though it is available at a lesser price. This will affect the performance of such funds. If you notice, the performance of all international funds went down. Performance could go down, but now as a fund manager , I am restricted to buy a good stock at lower valuation.\nWhat was the alternative ?\r#\rGST collection in India for the year 2022 has been absolutely remarkable. This is a proxy indicator that the businesses have been doing well. Moreover, since the interest rate has been hiked, majority of the banks immediately increased the loan rates and deposit rates were increased only when total deposits were falling. Market forces forced them to increase deposit rates. Banks therefore uniformly have done really well.\nIf you look at it another way, Nifty Bank Index has risen from a low of 33K in June 2022 to a high of 42K by November 2022. All the fund managers that I spoke to clearly indicated that banking stocks will perform well in a quarter.\nMoreover in PSU stocks have performed significantly well. Coal India has been a standout in my opinion. There have been a sudden move from gas to thermal energy which has also resulted in price increase and volumes have increased significantly.\nTherefore in May 2022, I had advised all my clients to move from mutual funds which are exposed to international funds to domestic funds which can perform better and deliver better results. And it did.\nWhat do we learn from this ?\r#\rWe need to monitor our mutual funds on a regular basis and take actions or change our path to reach our desired goal.\nI am a big fan of these international funds , but at the same time, it was important for me as an intermediary to help my clients achieve their goal.\nI suggested to all my clients to move from international to a domestic fund and they have reaped the benefits significantly.\nSome of the domestic funds which has exposure to Banking and PSU have performed significantly. I would have stuck to mutual funds which has international exposure provided they could continue to invest in stocks where the fund manager had conviction and could procure at lower prices.\nAs part of financial planning, it becomes all the more important , if you have a retirement goal and international fund was part of it. If this guideline which was introduced in February 2022 have very less changes, in my opinion, one should avoid it. Moreover, the fund manager\u0026rsquo;s way of working is restricted and he has to provide better returns with constrained factors.\nEven a 1% difference over a period of 20 years makes a huge difference when your investment is in lakhs and therefore the retirement planning which spans for 20 years and more, gets affected even significantly. Hence it becomes important to monitor such funds and choose the right funds for clients\nReferences\r#\rEquity International Funds Disclaimer : Past returns are not indicative of future returns and this article is NOT\rsuggesting in anyway to buy any of the mutual funds listed in the article.\rI have international funds as part of my portfolio. What should I do ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"13 November 2022","externalUrl":null,"permalink":"/posts/knowledge-articles/mutual-funds/change-of-plan/","section":"Posts","summary":"\rInternational funds have been performing exceptionally well 2 years back and I have seen amazing performances from the mutual funds which are invested in international stocks. However, all this changed in February 2022, after SEBI brought the guideline on international investing. This has vexed a lot of intermediaries and investors. Should we continue with international funds or should we look somewhere else ?\n","title":"Monitoring Mutual Funds","type":"posts"},{"content":"","date":"13 November 2022","externalUrl":null,"permalink":"/tags/motilal-oswal/","section":"Tags","summary":"","title":"Motilal Oswal","type":"tags"},{"content":"\rIt has been 2 years of personal finance, since I first began in October 2020. I completed my MBA finance which I talked about in my last year post. Studying for more than a year was quite exhausting and I quite happy and pleased about my result.\nHow did I do on my roadmap ?\r#\rAMFI publishes a lot of data on a regular basis which gives insights in trends of mutual fund industry. I plan to showcase some of these trends. Comments - I have this on my radar and surely by the new year will be publishing this I also plan to provide a portal for investors to see a\nconsolidated view of their investments provide alerts to investors Comments - This is a work in progress. There are many changes that is required to be made in portal and would approximately take another 1 year before it takes off The next year would bring a lot of changes to the economic situation, unless COVID decides to elongate its stay. Government would be quite active in bringing lot of policy level changes. This could make certain other asset classes interesting. Comments - As predicted - RBI kicked off interest rate hikes - 40bps in May, 50bps in June, August and September. There is one more meeting scheduled and need to wait and see how much more RBI will increase the interest rates. Government announced excise tax cut of Rs 8 per litre on petrol and Rs 6 per litre on diesel Government reduced import duty on key raw materials and inputs for steel and plastic industry Duty free import of crude soyabean and sunflower oil Ujjwala Yojana granted Rs 200 per cylinder subsidy Ban on wheat exports Articles on Insurance and Wills are long pending and this should guide some of the investors / readers to ask the right questions In fact, I can quote some instance including my own work with wills which helped me complete a transaction. Insurance is a must in this day and age including both life and health. I defintely plan to put pen to paper on these topics. Workshops on financial planning Presentations are ready and workshops should happen before December 2022 How has market played out ?\r#\rCourtesy: Primeinvestor.in\nFrom the above two charts, you can clearly see that the investors who have stayed invested without looking at the daily news have become richer over the period of time. Interest rates have risen, inflation has gone up, but so have the stocks. Goal Planning has worked and will work in the future as well. Money needs to be pulled out gradually only when you reach near your goal.\nAll said and done, not all mutual funds are right for you and the right mutual fund needs to be chosen based on the risks that you are willing to take and based on your risk profile. Similar to any process, this needs to be reviewed on a yearly basis. In fact, the international funds and technology funds have done remarkably poor. I am quite positive that technology funds would do a come back but international funds have geopolitical risks and though they could potentially come back but would take more time than technology funds.\nIn case you would like to understand more about my services , please go through this document or you could email me.\nI need help with Mutual Funds !\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"4 November 2022","externalUrl":null,"permalink":"/posts/mfd/2nd-year/","section":"Posts","summary":"\rIt has been 2 years of personal finance, since I first began in October 2020. I completed my MBA finance which I talked about in my last year post. Studying for more than a year was quite exhausting and I quite happy and pleased about my result.\n","title":"2nd year of Personal Finance","type":"posts"},{"content":"\rPlanyourmoney.in is an invaluable resource that aims to empower individuals with the knowledge and understanding necessary to achieve financial freedom. As a dedicated platform for informative articles on financial planning and investment, it serves as a guiding light for the community, navigating the complexities of personal finance with clarity and expertise. The website\u0026rsquo;s primary mission is to educate users about various investment opportunities, mutual funds, Public Provident Fund (PPF) , Sukanya Samriddhi Yojana (SSY), loans, retirement planning, investment planning and goal planning. By providing reliable and unbiased information, Planyourmoney.in equips readers with the tools they need to make informed decisions and take control of their financial future.\nOne of the key aspects that sets Planyourmoney apart is its commitment to disseminating knowledge in a user-friendly manner. The articles featured on the website are written in a jargon-free language, ensuring accessibility to individuals of all financial backgrounds. Whether you are a seasoned investor looking to diversify your portfolio or a novice seeking to understand the basics of financial planning, the content on Planyourmoney caters to all levels of expertise. The site\u0026rsquo;s intuitive organization allows visitors to navigate effortlessly through various topics, making the learning experience seamless and enriching.\nThe heart of Planyourmoney lies in its passion for empowering the community with financial literacy. The platform firmly believes that informed decisions can significantly impact one\u0026rsquo;s financial well-being. Through in-depth articles on investment strategies, the nuances of mutual funds, tax-saving options like PPF and SSY, insights into various loan products, and comprehensive goal planning guides, our website ensures that individuals are equipped to make intelligent and prudent financial choices. By raising awareness and fostering financial literacy, the website becomes a catalyst for driving positive change in the lives of its readers.\nPlanyourmoney stands as a beacon of financial enlightenment, guiding its users toward a brighter and more secure future. The website\u0026rsquo;s dedication to providing informative articles on financial planning and investment exemplifies its commitment to fostering financial independence and well-being within the community. As readers delve into the vast array of topics covered, they become equipped with the knowledge to navigate the intricate world of finance confidently. Planyourmoney empowers individuals to embark on their financial journeys with a clear vision and a solid understanding of the opportunities and challenges that lie ahead, ultimately leading them to attain their dreams and aspirations.\nI need help with investments\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"6 July 2022","externalUrl":null,"permalink":"/posts/about-us/","section":"Posts","summary":"\rPlanyourmoney.in is an invaluable resource that aims to empower individuals with the knowledge and understanding necessary to achieve financial freedom. As a dedicated platform for informative articles on financial planning and investment, it serves as a guiding light for the community, navigating the complexities of personal finance with clarity and expertise. The website’s primary mission is to educate users about various investment opportunities, mutual funds, Public Provident Fund (PPF) , Sukanya Samriddhi Yojana (SSY), loans, retirement planning, investment planning and goal planning. By providing reliable and unbiased information, Planyourmoney.in equips readers with the tools they need to make informed decisions and take control of their financial future.\n","title":"About Us","type":"posts"},{"content":"\rLet’s Talk About Your Financial Goals\r#\rIf you\u0026rsquo;re unsure about your investments or financial planning, I can help bring clarity.\nWhat You Can Expect\r#\rA quick review of your current situation Clear and practical guidance No unnecessary complexity Send Me a Message\r#\rYour Name\rYour Email\rYour Message\rSend Message\rNot Ready Yet?\r#\r👉 Start Here\n👉 Read Blogs\n","date":"6 July 2022","externalUrl":null,"permalink":"/contact/","section":"Plan Your Money","summary":"Let’s Talk About Your Financial Goals\r#\rIf you’re unsure about your investments or financial planning, I can help bring clarity.\n","title":"Contact","type":"page"},{"content":"\rClarity-Driven Financial Guidance\r#\rAre you unable to decide where to invest?\nEvery individual is unique — your goals, risk profile, and financial journey require a personalized approach.\nFinancial planning is about more than just returns.\nIt’s about GUIDANCE YOU CAN TRUST.\nWhat I Help You With ?\r#\r🧭 Mutual Fund Advisory\rExpert guidance on mutual funds\rAsset allocation strategy\rPortfolio balancing\rMarket insights\r📊 Portfolio Analysis \u0026 Insights\rAnalyse your existing portfolio\rIdentify risks and gaps\rImprove performance\r🔄 Periodic Portfolio Review\rRegular portfolio tracking\rRebalancing based on market\rStay aligned with goals\rWhat Makes Us Unique?\r#\rRisk profiling \u0026amp; goal-based investing Portfolio assessment \u0026amp; rebalancing Personalized recommendations Focus on your financial goals Hassle-free transactions Periodic performance tracking Good Reads\r#\r👉 Visit Blog Section\nCalculators\r#\r👉 Loan Calculator\n👉 Education Calculator\nTestimonials\r#\rSubramanian has been managing my goal based portfolio for the past 2 years. He provides unbiased advice and ensures disciplined investing aligned to goals.\rRamachandran G\nServices Leader in Global MNC Bangalore\nSubramanian provides practical, goal-driven recommendations that help achieve financial goals effectively.\rManoj Kumar\nSoftware Engineer, Bangalore\nGet Started\r#\rIf you\u0026rsquo;re unsure about your investments or portfolio:\nGet a Free Portfolio Review\r","date":"6 July 2022","externalUrl":null,"permalink":"/services/","section":"Plan Your Money","summary":"Clarity-Driven Financial Guidance\r#\rAre you unable to decide where to invest?\n","title":"Services","type":"page"},{"content":"\rIt has been a roller-coaster ride for sure. I had kept several goals for myself and have been able to achieve handful of them. I am glad that many of you have found my blogs useful and educational . The aim was to help individuals understand the complex maze of financial planning and therefore pick the right kind of mutual funds . I have been able to help investors choose the right mutual funds and they have a broad grin when they look at the returns.\nBusiness\r#\rI started my MFD (Mutual Fund Distribution) business in October 2020 . Thanks to the overwhelming support , many of you believed that I would be able to pick the right mutual funds for your requirements. Thanks to the \u0026ldquo;forever\u0026rdquo; bullish stock market, returns received by investors have been in double digits (not providing a number, otherwise it provides a reason for Anchor Bias) Thanks to an education initiative , some of you have also invested in debt mutual funds and happy to see that your returns are higher than FDs All the investors are happy with the returns , but the true test of any distributor / advisor is during \u0026ldquo;bear\u0026rdquo; run of the stock market and to keep investors invested Especially for KYC compliant investors, the entire operation of onboarding has been paperless Digital transactions have reduced the overall cost considerably 80% of my portfolio is in mutual funds and 5% in stocks. All my mutual funds are in positive and also have made good profit but there are embarassing losses in stocks . Therefore I have full conviction that the right mutual funds will provide you enough reason for joy and cheer in the long run. Blog\r#\rI have been publishing articles to spread awareness on which mutual funds would be best suited for which scenarios. My first blog was on Inflation My personal journey towards financial independence was well received by many of you. Goal Planning articles was an attempt on my side to improve the awareness of financial planning Although I am an MFD, I still support schemes like Public Provident Fund and Sukanya Samruddhi Yojana Till date, I have written 35 articles and although, my pace has dropped, I am fairly happy on the content that I have been able to put. Many of you have said that the financial jargon with my content has been made simple and you are able to relate and understand it Others\r#\rInvestors\r#\rI believe that many investors require a consolidated view of their financial assets and liabilities Parting money to anyone requires a trusting partner. However, parting information about money also requires a partner whom you can trust completely . Many investors require alerts on their financial instruments. It could be maturity of FD\u0026rsquo;s, paying premium for insurance, or paying your SIP\u0026rsquo;s on time. Investors require a networth report(mainly mutualfunds) for investors and a periodical review help them gauge their progress. Personal\r#\rI am pursuing my MBA in Finance and this has opened multiple ways of looking at an organization Education has improved my knowledge significantly and able to think in a holistic manner Built tools to improve my analysis of picking the right mutual funds Roadmap\r#\rAMFI publishes a lot of data on a regular basis which gives insights in trends of mutual fund industry. I plan to showcase some of these trends. I also plan to provide a portal for investors to see a consolidated view of their investments provide alerts to investors The next year would bring a lot of changes to the economic situation, unless COVID decides to elongate its stay. Government would be quite active in bringing lot of policy level changes. This could make certain other asset classes interesting. Articles on Insurance and Wills are long pending and this should guide some of the investors / readers to ask the right questions Workshops on financial planning In case you would like to understand more about my services , please go through this document or you could email me.\nI need help with Mutual Funds !\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"1 October 2021","externalUrl":null,"permalink":"/posts/mfd/my-start/","section":"Posts","summary":"\rIt has been a roller-coaster ride for sure. I had kept several goals for myself and have been able to achieve handful of them. I am glad that many of you have found my blogs useful and educational . The aim was to help individuals understand the complex maze of financial planning and therefore pick the right kind of mutual funds . I have been able to help investors choose the right mutual funds and they have a broad grin when they look at the returns.\n","title":"1 year of Personal Finance","type":"posts"},{"content":"","date":"26 September 2021","externalUrl":null,"permalink":"/tags/credit-risk-fund/","section":"Tags","summary":"","title":"Credit Risk Fund","type":"tags"},{"content":"\rCredit Risk funds - the name itself - conjures a mental image that one should not \u0026ldquo;risk\u0026rdquo; their money in such funds. When the name itself has \u0026ldquo;risk\u0026rdquo; , then the fund itself must be \u0026ldquo;very risky\u0026rdquo; . Such kind of imagination and biases will drive us away from the fund, despite the fact that they may give very good returns. However, one needs to check whether , such funds are a \u0026ldquo;true fit\u0026rdquo; for an individual .\nWhat are Credit Risk Funds ?\r#\rCredit risk funds are debt funds which invest in securities which have low credit score. It is important to understand what we mean by low credit score.\nFor example,\nTN Power Finance gives a return of 8.00% over a period of 5 years. This is a Government institution. Given the returns in FD, this would be really a good place to invest your money. Juxtapose this with any Credit Risk Mutual Fund and with all the bias, more often than not, you would choose to invest in TN Power Finance . However, the rating of TN Power Finance is given as A-. You would be surprised that credit risk funds may not even invest in \u0026ldquo;risky funds\u0026rdquo; like TN Power Finance. Generally the average credit rating of funds would be AA.\nWhat are the risks in debt funds ?\r#\rThere are three types of risks mainly in debt funds:\nInterest Rate Risk\r#\rThe price of bonds vary based on the interest rate. In the last 1 year , we have seen a huge interest rate drop due to COVID. Due to interest rate drop, generally, we tend to see bond prices go up. NAV of debt mutual fund is also dependent upon coupon rate and maturity of the security.\nLiquidity Risk\r#\rLiquidity of bonds is comparatively poorer than equity. However the size of bond market is massive. Equity markets haven\u0026rsquo;t reached the size of bond markets yet. However, trading of bond papers is more common among institutions and their liquidity sometimes could be poor. Liquidity risk is basically the risk of being unable to convert your asset into cash.\nRe-investment Risk\r#\rYou have invested money in FD and received interest, but the interest rates have gone down. The interest that you have now received will yield a lesser interest. This is known as re-investment risk.\nWhere do credit risk funds invest ?\r#\rBelow is an example of HDFC Credit risk fund and the classification of the credit rating of companies. Overall less than 5% of the AUM goes into companies which are A and unrated. You can see more details of the companies here\nWhat credit risk funds are available ?\r#\rI have listed few credit risk funds and as you can see the returns vary from 7 to 17%. Return is based on the risk each fund manager is willing to take.\nPositives\r#\rThere are positives in Credit Risk Fund as follows :\nAverage rating of credit risk funds are generally AA or higher Returns from credit riks funds could be in double digits or higher when interest rates are higher Fund manager is able to choose good quality companies offering attractive returns Naysayers\r#\rMany do not consider credit risk funds as part of their portfolio. Their arguments are as follows :\nIf you plan to take so much risk, why not invest in equity funds ! Chances of default of paying bond interest are higher Reward received is not commensurate to risk taken Risk is definitely high as compared to other debt funds.\nConclusion\r#\rCredit risk funds are riskier than other debt funds but at the same time provides a better return as well. If your risk tolerance allows you, you should constitute a small portion of your money towards such funds. This improves your return in your debt portfolio. If you invest in debt mutual funds , I would suggest not more than 5% of your overall portfolio to be distributed in such funds. However, this also depends on your risk profile.\nReference\r#\rValueresearchonline Is Credit Risk fund the right fit for me ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"26 September 2021","externalUrl":null,"permalink":"/posts/knowledge-articles/mutual-funds/credit-risk-fund/","section":"Posts","summary":"\rCredit Risk funds - the name itself - conjures a mental image that one should not “risk” their money in such funds. When the name itself has “risk” , then the fund itself must be “very risky” . Such kind of imagination and biases will drive us away from the fund, despite the fact that they may give very good returns. However, one needs to check whether , such funds are a “true fit” for an individual .\n","title":"Credit Risk Funds","type":"posts"},{"content":"\rYour future is created by what you do today\r#\rIn 2014, I was keen to plan for my retirement. I was not sure how to go about. As you are aware, our current jobs do not provide any pension and thanks to the medical advances , people ending up living much longer than our predecessors. Therefore a significant portion of our life, we would be living and not earning. I am sure you have heard the story of The Ant and the Grasshopper. Similarly, for many of us, we need to save to reach that retirement. The earlier we start, the quicker we reach our goal! Questions\r#\rIn order to understand how to plan for my retirement, I had few questions :\nWhat is the priority for retirement planning ? When do I plan to retire ? What assumptions will I be making ? How much do I need when I retire ? Where should I be investing ? What happens if the money ends up insufficient ? Priority\r#\rAs with any goals, you need to have to a priority for retirement planning. In many cases, this would be considered critical . I considered this a CRITICAL priority.\nRetirement D-Day\r#\rI plan to retire at 60 and I am sure many of you plan to do the same. Till then I plan to continue to work and make as much I need to meet my expenses. Therefore 1st April 2040 is the retirement day, so to speak.\nAssumptions\r#\rI made a few assumptions:\nInflation - 5 % and I am assuming this will remain constant before and after retirement Yield interest that I may earn after retirement - 7% Current expenses would not increase drastically Force majeure conditions apply - unseen circumstances are difficult to measure Life expectancy around 85 years Debt would approximately give 8% of return (post-tax) and Equity will give 10.5% return (post-tax) No lifestyle upgrades What is that magical number that I need ?\r#\rBefore I understand the amount I require at 60, I need to understand what my current expense will be at 60.\nCurrent Expense\r#\rIn order to understand what would be the corpus required, I first tried to understand my expenses. Once I understood my expenses, I tried to delve a little deeper and understood my recurring expenses and one-time expenses. I looked at my expenses and considered only those expenses which would continue after retirement as well. Many would generally reduce their expenses after retirement, but considering me, I put a 5% increment to my expenses. My overall expenses as of today stands with the buffer stands around 8 lakhs. Corpus\r#\rThanks to inflation, when I hit 60, I would be spending Rs 20 lakhs for the same life style. Idli\u0026rsquo;s which costed Rs 5 way back, now easily costs Rs 40 per plate. You are getting the same idli (perhaps not richer in taste) at higher the cost. Now considering my expense at 60, and with the given yield , inflation and life expectancy, I would approximately require Rs 4 crores on 1st April,2040. Where should I invest ?\r#\rFor me to understand where whould I invest, I need a better understanding of two important points :\nMy horizon is approximately 20 years away I have a conservative risk appetite I considered both these points closely and invested in a ratio of 40:60 (Debt: Equity). In debt, I keep investing in PPF regularly. Surprisingly this at the point is giving the highest return among all debt instruments, notwithstanding, EPF (8.4%). I also considered my EPF investment towards debt. I have also invested in Equity instruments mainly in LargeCap, MidCap and Smallcap to achieve my goal. With this investment, I am currently on track to achieve my goal.\nWhat happens if this is insufficient ?\r#\rWell , in corporate world, there is a contingency plan. I did a few things as well, which perhaps, may help you or you would have already observed by now.\nPost-retirement expenses have been increased by 5% ( Buffer 1), therefore if I keep the same lifestyle as earlier, I can still enjoy my post-retirement.\nInvestment towards my corpus have been increased so that corpus that I would achieve is potentially 20% above my required corpus ( Buffer 2 )\nEquity investments have been conservatively aimed at 10.5% . Generally equity in the long run gives 12% I have included mid-cap and small-cap mutual funds to provide a \u0026ldquo;kicker\u0026rdquo; to my portfolio as they give more returns than large-cap over a longer period\nYield has been conservatively kept at 7% . This does not mean you will withdraw all your equity investments when you reach 60. You will continue your investments for a few more years and this may give a return more than 7%.\nTherefore while retirement planning many buffers have kept because we know that despite our best efforts with planning, there can be few circumstances which requires some extra cushion .\nDespite all these factors, your corpus could be insufficient, however, fret not ! There are still so many ways and so many opportunities you get to ensure that you are able to meet your expenses. I shall talk about the same in another blog sometime.\nConclusion\r#\rAll said and done, one needs to keep a focus on his goal on a periodical basis , adjust the assumptions accordingly, control his monthly investments. Starting early is key for retirement planning. If you are in your 20\u0026rsquo;s , saving just 30-40% of your income could help you lead a comfortable retirement life. If you are in your 30\u0026rsquo;s, this could increase to 40-50%. It is also important to ensure that you keep a stable lifestyle and as this gets upgraded, so does your retirement corpus.\nHow do I do retirement planning!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"27 August 2021","externalUrl":null,"permalink":"/posts/financial-planning/investment-planning/retirement/","section":"Posts","summary":"\rYour future is created by what you do today\r#\rIn 2014, I was keen to plan for my retirement. I was not sure how to go about. As you are aware, our current jobs do not provide any pension and thanks to the medical advances , people ending up living much longer than our predecessors. Therefore a significant portion of our life, we would be living and not earning. I am sure you have heard the story of The Ant and the Grasshopper. Similarly, for many of us, we need to save to reach that retirement. The earlier we start, the quicker we reach our goal! ","title":"How did I plan for retirement ?","type":"posts"},{"content":"","date":"6 August 2021","externalUrl":null,"permalink":"/categories/asset-allocation/","section":"Categories","summary":"","title":"Asset Allocation","type":"categories"},{"content":"","date":"6 August 2021","externalUrl":null,"permalink":"/categories/investment/","section":"Categories","summary":"","title":"Investment","type":"categories"},{"content":"\rOne of the common questions that investors ask me - where should I invest my money ? Fixed Deposit is giving a paltry return of 5 % . Is there any other investment avenue where I could get better return than this ? If you are facing a similar dilemma in this time and age, you are not alone. The answer is simple and it requires a process to be followed.\nGuidelines\r#\rAs with any goal, things become easier when we have a guideline in place which helps us direct our path towards our objective. Similarly in investment, we have a three-step process which helps any investor decide his course.\nWhat is your investment objective ?\r#\rYou need to understand that money by itself has no value unless we associate it with an object / objective . You need to ask yourself this question , what do I need this money for ?\nDo you need this money for retirement ? Do I need this money to buy a car ? Do I need money to buy a house ? What is your horizon of investment ?\r#\rThe thumb rule is, if your horizon is less than 5 years, you should invest in debt. If your horizon is more than 5 years, you should invest in equity as equity takes more than 5 years to give a decent return on your investment. Therefore your horizon of investment is an important factor in deciding where the money goes.\nWhat is your risk appetite ?\r#\rIn case, you worry, on any fall in stock market, maybe equity is not for you. If you understand and are okay with the ups and downs of stock market, perhaps you can invest in the stock market. Your risk tolerance plays an important role in deciding where the money should be put ?\nHow to diversify your risk ?\r#\rInstead of investing in a single stock, you can invest in a diversified portfolio like mutual fund.\nLarge caps are the top 100 stocks by market capitalization and they are less riskier. Mid-caps are more volatile than large caps and therefore more riskier. Small caps are very volatile and even more riskier than mid-cap. Investing in a single stock is riskier than all of the above as your entire risk depends on that stock performing well Economy updates\r#\rDespite all the efforts taken by the Central Government, State Government, health machinery - COVID is yet to go away There are newer variants of COVID coming up every season RBI is forced to keep the interest rates low as it is required to revive business and it is important for consumption to start In the next 12 - 24 months, there is an expectation of small increase in interest rate CPI inflation is at 6.26% in June (vs 4.29% in April 21), but RBI will not be stepping in any time soon to contain this Even global banks will continue to maintain loose monetary policy Petrol Price in Bangalore is 105.25 (as of 2nd August 2021) and don\u0026rsquo;t see that coming down either RBI in its latest policy has revised inflation from 5.1% to 5.7% If there is a third wave, GDP growth could reduce from 9.5% to 7.0 % Irreversible changes (damages) have happened in terms of business, in our way of life, in our life With all of these, interest rates will continue to linger between 5 to 5.5% for the foreseeable future, unless the threat from COVID reduces and we are able to lead a new normal life that doesn\u0026rsquo;t restrict movement. Therefore we see a good number of new entrants to the stock market in terms of end clients who are ready to venture and see gold at the end of the rainbow. People have been borrowing funds and investing in stocks as cost of borrowing has reduced significantly. Direction of stock market is driven mainly by FII and DII (mutual funds \u0026amp; others). As soon as there is direction change in US Fed rates, you would see a pull-out and therefore huge fall in the stock market prices. At the moment, they have signalled not much change till 2023 (revised from 2024).\nWhat should you do ?\r#\rFollow the three-step process , Assess your investment objective Identify your investment horizon Evaluate your risk appettite If you follow Goal Planning, things become a lot simpler Periodically track progress of your investments towards your goals Identify whether your investments are performing at the top quartile amongst its peers. If it is consistently performing poorly, you need to revaluate your investments References\r#\rFood Inflation US Fed Rates Inflation Quantitative Easing RBI Monetary Policy ","date":"6 August 2021","externalUrl":null,"permalink":"/posts/financial-planning/investment-planning/where-should-i-invest/","section":"Posts","summary":"\rOne of the common questions that investors ask me - where should I invest my money ? Fixed Deposit is giving a paltry return of 5 % . Is there any other investment avenue where I could get better return than this ? If you are facing a similar dilemma in this time and age, you are not alone. The answer is simple and it requires a process to be followed.\n","title":"Where should I invest ?","type":"posts"},{"content":"\rIPO\r#\rAn initial public offering (IPO) refers to the process of issuing shares of a private corporation to the public in a new stock issuance. This allows the organizations to raise capital from public investors. The purpose of IPO could be various, but the primary being to raise capital for business.\nIPO\u0026rsquo;s in 2021\r#\rThe year started with IRFC IPO. As I write this article, Zomato was listed. 5 more months to go. 26 IPO\u0026rsquo;s have been listed till date this year. 4 have been scheduled between July and September 2021. Till date, the amount raised is Rs 39,811 crore. In the last 14 years, this has been the second-highest amount raised and with 5 more months to go, we are yet to see if we are able to cross 75,000 crore raised in 2017.\nHow have IPO\u0026rsquo;s done ?\r#\rFrom the below figure, it is quite visible that IPO\u0026rsquo;s have done spectacularly well , even as of today. 5 of these funds have given more than 100% return. It basically means that your amount would have been doubled. The latest IPO Tatva Chintan listed with 95% premium.\nWhat are retail investors doing ?\r#\rRetail investors are pumping money left, right and center into IPO\u0026rsquo;s. Retail investor can invest a maximum amount of Rs 2,00,000/- and they have been investing to the full extent. If memory serves right, Easemytrip had a retail subscription of 70X. I am sure there are many retail investors who would wish they could get more shares from the IPO and see their wealth grow immediately. Moreover, one of the dilemmas that retail investors face is whether to hold the allotment or sell it on listing day. Challenges from a retail investor perspective:\nRetail investors\u0026rsquo; investment is limited to Rs 2,00,000 Huge excitement over IPO\u0026rsquo;s - obtaining a slice of IPO is now a luck factor Difficult to get complete lot of shares What is the alternative ?\r#\rEdelweiss has a fund called Edelweiss Recently Listed IPO which actively invests in IPO\u0026rsquo;s . This fund was launched in 2018 as Edelweiss Maiden Opportunities Fund - Series 1. Fund has completed 3 years and matured on 28th June 2021. This fund is an open-ended fund. This fund has invested in selective IPO\u0026rsquo;s which has provided eye-pleasing returns for investors.\nDixon Technologies(India) L\u0026amp;T Infotech Lal Path Labs Dmart Affle CDSL Happiest Minds All of these funds have given spectacular returns . In fact, the dilemma faced by retail investors is taken care in this fund, as there is a research team which gives valuable insights to hold / sell the stocks. In fact, it would be a rarity to invest in a stock for listing day gain , as many of these funds after their quarterly result show the conviction of the fund manager that they were right in investing in such funds.\nShould I invest ?\r#\rIf you are unsure about IPOs and would like someone to pick and choose for you, in that case, this may be the fund. Please note that this fund has a VERY HIGH risk factor similar to any other equity mutual fund and would be looking at a horizon of 7 to 10 years. If you have some cash to risk and you have a horizon of 10 years and more, this would be a fund you would want to look at. It gives a kicker to your already elevated returns (especially in the last two years).\nReference\r#\rIPO IRFC Edelweiss Recently Listed IPO List of IPOs Disclaimer : Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund.\rI would like to know more about this fund!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"23 July 2021","externalUrl":null,"permalink":"/posts/knowledge-articles/ipo/","section":"Posts","summary":"\rIPO\r#\rAn initial public offering (IPO) refers to the process of issuing shares of a private corporation to the public in a new stock issuance. This allows the organizations to raise capital from public investors. The purpose of IPO could be various, but the primary being to raise capital for business.\n","title":"IPO","type":"posts"},{"content":"","date":"23 July 2021","externalUrl":null,"permalink":"/tags/ipo/","section":"Tags","summary":"","title":"IPO","type":"tags"},{"content":"\rI have been recently reading this book called Power of Habit which gives great insights on human psyche. Habits have a profound say in our day-to-day lives :\nThe decisions we take, How and why small wins matter ? The cue, the routine, the reward Can we change our habits ? Michael Phelps, Tony Dungy, Claude Hopkins all have something in common. They all created habits which made them successful.\nSimilarly, I believe, that if we create financial planning a habit, we all will succeed immensely.\nIn the below section, I talk about my journey and hope you find something useful. If there was something that I would take away from my journey would be, I should have started financial planning much earlier than I actually did.\n2002 - Career started\r#\rI got my first job in Nov 2002 at one of the reputed technology (service) companies in Pune. It was my first job. In the initial days, I used to make a meticulous note of my expenditure. This lasted for not more than three months. I shifted my house for a better social interaction and significant changes happened :\nEating outside was a regular activity Eating in fancier restaurants now became a weekly activity Movies which was non-existent was happening twice a week Frequent purchase of clothes Milestones\r#\rI invested in a mutual fund for Rs 25,000/- despite having no idea. After 2 years of service, I had approximately Rs 10,000/- in my account, lesser than my monthly salary. 2005 - Job Switch\r#\rI moved to Bangalore in 2005, got a better salary. I said to my father, \u0026ldquo;I would be a rich man\u0026rdquo;.\nI was missold ULIP\u0026rsquo;s multiple times and unsolicited advice poured left, right and center.\nI had no idea about the rentals, or the cost of living or the state of public transport in Bangalore.\nThey were :\nPublic transport in Bangalore was poor in comparison with Mumbai - you required a bike or a car. Travelling was expensive, autos were charging much higher than other places.\nRentals were really high. I paid 4 times the rent that I paid in Pune to get the same type of house.\nRentals increased by 10% in 2005 as then the demand was high, unlike now.\nPositives\r#\rI redeemed my mutual fund in 2008 at Rs 75,000/- (this is just before the 2008 crash happened)\nI also started recording my expenses using a tool called GnuCash\nI prepared a budget every year and found out how far am I going above this. It gave me a sense of my cashflow - income \u0026amp; expenses. It also provided a glimpse into my savings and networth.\n2007 - Bought a house\r#\rFrequent changes in house, and rental increases, accelerated my dream of buying a house, although reluctantly . Looking back , seems like one of the best decision, I did take.\nI purchased my first house in 2007 with a loan 4 times my gross salary. I was paying 11% for the loan I borrowed. I was advised that it would be a good idea to prepay the principal at regular intervals to reduce the interest burden. This was also the time when I was jittery about my stability in jobs. \u0026ldquo;What if\u0026rsquo;s\u0026rdquo; - running through your head. I took 1 month at a time and every quarter , whatever excess money I had, I paid back the principal. Positives\r#\rI felt quite happy whenever I saw the principal amount getting reduced and interest expense even more significantly. The dream of owning the house without any debt would soon become a reality. 2010 - House is mine\r#\rBy 2010, I was able to pay back my loan. I paid a foreclosure charge to the bank as well .\nI owned the house .\nAfter the loan got paid, the job suddenly seemed \u0026ldquo;stable\u0026rdquo; . There was a sense of confidence.\nI asked myself - my purpose of earning. As I had already paid my loan, except for day-to-day living, I didn\u0026rsquo;t see any purpose.\nI got married and my daughter was born two years later. There was my purpose.\nPositives\r#\rI owned the house I was having surplus money 2013 - Mutual Fund Journey\r#\rI was introduced to Financial Planning and thanks to this - I found out that we have several goals in life and if we allocate our resources accordingly, it becomes easier for us to track our progress. When we have a goal, we have an unwavering focus which helps in achieving our goal.\nSome of the common goals that any family would generally have are :\nRetirement Purchase of house Graduation / Post-graduation for children World Tour Purchase a car Emergency Goal However, there are certain things that could wreck our best laid plans. Risks that could become issues. Prevention is better than cure, but despite our caution, we could go sick. I had health insurance from my organization but that would not continue if I left my organization or if I retire. If I had to secure my goals, I was required to buy a life insurance. I also started investing in mutual funds on a regular basis and continued for 7 long years. I increased my investment as my salary grew. Till 2019, I have seen my mutual fund grow at a rate of 8.5% (CAGR) which includes a mix of both debt and equity and I was quite happy with that.\nPositives\r#\rI kept an emergency goal and kept 6 months of my expenses in that. I invested in mutual fund for my goals I achieved our world tour goal - we visited 4 countries 2021 - Journey from here\r#\rI am on track to achieve 7 out of my 12 goals. I am quite confident that if I work on my plan assiduously, there is a good probability that I will be able to achieve all my goals. 2020 happened and thankfully I didn\u0026rsquo;t withdraw my money. However, given the uncertainty in the world, we are better off with a financial plan , rather than having no plan at all.\nAs it has been periodically said, we need to withdraw our money, only when we near our goal . Keeping track of daily events would only be detrimental to your best laid plans and would make you jittery and vulnerable.\nInstead of chasing returns, I am chasing my goals. Summary\r#\rFinancial planning keeps you and your family at the centre . It gives you a goal to focus and brings a self-discipline. It allows you to determine your goals It allows you to prioritize your goals It helps you determine how much you would need to achieve your goal You are chasing your goal and no longer chasing HIGHEST return It has a feedback loop - every period that you fix, you find the mistakes and rectify them. You don\u0026rsquo;t have to work till 60 - it is possible to retire early and do the job that you like There are two resources : time and money. With money, you end up buying time . Your life\u0026rsquo;s finances should be planned and with it you achieve confidence Reference\r#\rPersonal Finance Guide Gnucash I need a financial plan too!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"25 February 2021","externalUrl":null,"permalink":"/posts/casestudies/financial-independence/","section":"Posts","summary":"\rI have been recently reading this book called Power of Habit which gives great insights on human psyche. Habits have a profound say in our day-to-day lives :\n","title":"Journey towards financial independence","type":"posts"},{"content":"\rSSY Benefits\r#\r1. Account opening\r#\rThe account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years .\nYou can open only one account in the name of the girl child .\nNatural or legal guardian of a girl child shall be allowed to open the account for two girl children only (exception for twins)\n2. Deposits\r#\rThe account may be opened with an initial deposit of Rs 250 Total amount deposited in an account cannot exceed Rs 1,50,000/- Deposit in an account may be made till completion of 14 years from date of opening the account 3. Interest\r#\rInterest at the rate, to be notified by the Government, compounded yearly shall be credited to the account till the account completes fourteen years 4. Operation\r#\rThe account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, attains the age of ten years On attaining age of ten years, the account holder that is the girl child may herself operate the account, however, deposit in the account may be made by the guardian or any other person or authority.\n5. Withdrawal\r#\rTo meet the financial requirements of the account holder for the purpose of higher education and marriage, withdrawal up to fifty per cent of the balance at the credit , at the end of preceding financial year shall be allowed .\nThe withdrawal shall ONLY be allowed when the account holder girl attains the age of eighteen years 6. Maturity\r#\rThe account shall mature on completion of 21 years from the date of opening the account Reference\r#\rSukanya Samriddhi Account SSA Amendment 2018 I want to open an SSY Account!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"12 February 2021","externalUrl":null,"permalink":"/posts/didyouknow/ssy/","section":"Posts","summary":"SSY Benefits\r#\r1. Account opening\r#\rThe account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years .\n","title":"6 factors you didn't know about SSY","type":"posts"},{"content":"","date":"12 February 2021","externalUrl":null,"permalink":"/tags/assets/","section":"Tags","summary":"","title":"Assets","type":"tags"},{"content":"","date":"12 February 2021","externalUrl":null,"permalink":"/tags/ssy/","section":"Tags","summary":"","title":"SSY","type":"tags"},{"content":"","date":"28 January 2021","externalUrl":null,"permalink":"/series/goal-planning/","section":"Series","summary":"","title":"Goal Planning","type":"series"},{"content":"\rMonitoring helps you determine exactly when a goal is on track. It provides you a feedback which incorporated allows you to make rectifications and therefore achieve your goals which you have laid out earlier. Feedback is important as it could tell you whether the path that you have chosen to achieve your goals is correct. It is a vindication of some sort. A reality check. It gives you an opportunity to correct your deviations and take you towards your goal.\nTill now we have seen :\nGoal Planning - Overview Goal Planning - Risk Profile Goal Planning - Assets Goal Planning - Liabilities Goal Planning - Income and Expenses Goal Planning - Goals In my previous article, we talked about creating goals, allocating resources towards goals. These two form the Plan and Do of the P-D-C-A cycle.\nHow to monitor your goals ?\r#\rGoal\r#\rEach goal has various assumptions, which needs to be checked on a periodical basis.\nYou plan to buy a car in in 2025. You have found out the cost of the car is Rs 15,00,000/- and the price of the car would increase by 5% on a yearly basis. You have set the goal in 2020. Let us look at the assumptions that you have made :\nCost of the car - Car cost has so many components and it fluctuates on a monthly and yearly basis. Taxes - The Government would change taxes periodically as it has a target to meet. Road taxes could be changed, registration charges could be changed, they could introduce green tax Inflation - Year on year, prices of raw material would go up and this would eventually be passed on to the customer. Car Preference - Do you still fancy the same car (roving eye) ? You would not find the same car attractive. As I write now, I see the purchase of Kia cars have caught fancy. People in their 40\u0026rsquo;s and 50\u0026rsquo;s would have their first car purchase as Maruti, but the same would not be true for people in their 20\u0026rsquo;s and 30\u0026rsquo;s. Resources associated with goal\r#\rYou have allocated various resources to your goals. You have assumed that it will give a return of say 10%, however, is it really giving the same on a year-on-year basis ?\nLet us take the above goal itself. The purchase of car is within 4 years and therefore you would have associated majority of your resources with debt type assets. You would have assumed that debt type assets would give a return of , let\u0026rsquo;s say, 8%, but it is actually given 6.5% - you would need to check whether your fund is the best fund in that category. Performance of debt funds are based on various categories including\nfund manager, type of funds they have invested, prevailing interest rates, fund category - fund duration Yield-To-Maturity etc\u0026hellip; Moreover, in debt funds, it is not a wise idea to take more risk as the safety of the funds is of paramount importance.\nIn case of a long term goal, you would have heavily invested in equity funds, in such case, you would want to check whether you are nearing your goal(say 2 - 3 years away). If yes, would this be the right time to switch to debt funds ?\nIn summary , you need to check whether your mutual fund (equity or debt) will give you the return that will help you achieve the goal.\nIn case the return of your fund is nearly the same as that of your best performing funds, you would need to allocate more funds so that you can meet your goal .\nConclusion\r#\rThis concludes my 7 part series on Goal Planning. Hope you found it useful and wish you all the best in case you have set your goal and on the right track to achieve your goal. If you would need some help don\u0026rsquo;t hesistate to drop a line to me References\r#\rCars 24 Livemint Goal Monitoring - Can you help me ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"28 January 2021","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/08-monitor-goals/","section":"Posts","summary":"\rMonitoring helps you determine exactly when a goal is on track. It provides you a feedback which incorporated allows you to make rectifications and therefore achieve your goals which you have laid out earlier. Feedback is important as it could tell you whether the path that you have chosen to achieve your goals is correct. It is a vindication of some sort. A reality check. It gives you an opportunity to correct your deviations and take you towards your goal.\n","title":"Goal Planning - Goal - Part 7","type":"posts"},{"content":"","date":"28 January 2021","externalUrl":null,"permalink":"/series/","section":"Series","summary":"","title":"Series","type":"series"},{"content":"","date":"11 January 2021","externalUrl":null,"permalink":"/categories/monthly-roundup/","section":"Categories","summary":"","title":"Monthly RoundUp","type":"categories"},{"content":"\rLet us look at what have transpired in December 2020 In December 2020, markets have risen by 6.66% overall.\nGST collection in December at all time high\nFII\u0026rsquo;s have invested Rs 103,156 crores in calendar year 2020. They continue to pump money in 2021 (11000+crores already added).\nDII\u0026rsquo;s have been net sellers in calendar year 2020. They sold 35,663 crores . In fact, DII continue to be net sellers as of today. One of the reasons, DII are net sellers is that retail investors are booking profits given that the stock market is reaching new pinnacles on a daily basis.\nHowever, there has been a net outflow of 10,000+ crores in equity funds. Surprisingly, sectoral funds have seen close to 3,400 crores of inflow.\nIn December 2020, there has been a net inflow of 13,000+ crores in debt funds . Overnight and Corporate Bond Funds have seen the maximum inflows in debt funds.\nPE Ratio for many large cap stocks have gone very high :\nFor example, Infosys - PE was around 15-20, however since July, it has increased and now at 32. Hero Motocorp, PE was around 15, however since July, it has now increased to 27 Wipro, PE around 15 , however since August, it has increased to 27 Eicher Motors, PE hovering at 26, since August, jumped to a high of 64 , currently at 60 JSW Steel, PE hovering between 10 to 15, has been rising since June and is now at 66 PE Ratio is the ratio of price per share to earnings per share .\rThe same cannot be said for Government owned entities in largecap.\nWinners\r#\rInfrastructure Fund and Consumption Opportunities Fund are the two sectors which have been doing really well.\nDecember 2020 Open End Return High S\u0026amp;P BSE India Infra 166.43 186.26 11.91% 186.26 Some of these funds have :\nSBI Consumption Opportunities Fund - 13.80% HDFC Infrastructure Fund 13.80% Quant Consumption Fund - 11.3% Losers\r#\rOnce again this month, we have NO losers , all mutual funds have gained this month. This gives you the kind of broad based rally that has taken place in the stock market.\nDisclaimer: Sectoral funds are quite risky and therefore based on your risk appetite make a wise decision. Reference\r#\rFPI Monitor Bloomberg Quint Where should I invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"11 January 2021","externalUrl":null,"permalink":"/posts/monthly-roundup/2020/december/","section":"Posts","summary":"\rLet us look at what have transpired in December 2020 In December 2020, markets have risen by 6.66% overall.\n","title":"Monthly RoundUp - December 2020","type":"posts"},{"content":"\rA cognitive bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects their decisions and judgements.\nThe concept of cognitive bias has been introduced by Daniel Kahnemann and Amos Taversky in 1972. I strongly recommend to read the book Thinking Fast and Slow which details the working of our brain.\nThere are several biases that we should be aware of whenever we are making decisions :\nAnchor effect This is a tendency to anchor yourself or stick to an information and are unwilling to accept any new information that deviates from it. Example you are researching on a stock say Infosys , and you have seen that the 52 week low is Rs 509 and assume the current price is Rs 1200 , you would think that you are paying too much for this stock. You have anchored on to the 52 week low and unable to make the purchase.\rConfirmation Bias In this bias, you would discount all the evidences that goes against your belief and would only gather statements that works in your favour. Example You have found out that a stock is doing well and your friends have made money in it. You are reading articles where everything seems to be positive about the stock. You bought the stock. Few days before, you dismissed the article on tax notice on the company. The stock is now going down.\rProspect Theory Prospect Theory says that people react differently to potential gains or potential losses from a reference point rather than in absolute terms. Example : If you were given a choice that you could win Rs 500 for sure or you have a 50% chance that you could win Rs 1000/-, you would choose the former. However, if you were given a choice of losing Rs 500 for sure or a 50% chance of losing Rs 1000/-, people would chose the latter.\rHindsight Bias I-told-you-so effect. You predict that a stock will fall and the stock fell which reinforces the thought that you can predict anything . Hindsight vision is 20-20. Money illusion In this case, we are unable to think money in its real value but think of money in its nominal value . Example Price of petrol was Rs 10 per liter in 1990 and now it is Rs 85.\rPrice of tur dal was Rs 55 per kg in 2011 and now it is Rs 120.\rTherefore the same money is unable to buy enough food for the same family.\rReal value of money (purchasing power) is important than nominal value.\rPessimism bias It is a cognitive bias that causes one to overestimate the effect of negative things . Example You have been investing in SIP's till March 2020, however, after 20th March 2020, you have seen the steep fall. You have seen market fall from 40K to 28K and believe this will fall further. To stem your losses, you withdrew. If you did, this would have been a disaster. References\r#\rVeryWellMind RBI ","date":"1 January 2021","externalUrl":null,"permalink":"/posts/knowledge-articles/behavioural-economics/biases/","section":"Posts","summary":"\rA cognitive bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects their decisions and judgements.\n","title":"Biases","type":"posts"},{"content":"\rThis is one of those rare months where all sectors have done well . If you had remained invested through the month, your mutual fund value would have risen . How about that ! Foreign Institutional Investors (FII) have invested 60358 crores. This is almost the same amount they withdrew in March 2020. Overall investment in India is close to 100 thousand crores.\nIn September 2020, we saw healthcare and technology funds doing well. In October 2020, we saw banking and technology funds doing well. There have been multiple stories about India being the fastest growing economy in 2021. There have been factors related to MSCI Index changes and therefore the flow of money towards Indian stocks has increased significantly.\nMany have been wondering, there have been not much changes in ground, but markets have gone way ahead. Many analysts were / are anticipating a fall . However, markets are forward looking . It factors the growth that would happen and any change to the story , it corrects itself. Winners\r#\rNifty Bank was about 10% lower than YTD, thanks to the stupdendous rally in banking and financial services , it is close to January levels.\nOctober 2020 Open End Return High Nifty Bank 24367.60 29609.05 21.50% 30197.85 Nifty Private Bank 13515.70 16473.10 21.88% 16793.85 Nifty PSU Bank 1277.35 1558.40 22.00% 1575.15 Some of these banking funds have :\nAditya Birla Sun Life Banking and Financial Services Fund - 25.67% UTI Banking and Financial Services Fund 23.12% Sundaram Financial Services Opportunities Fund - 22.41% Infrastructure funds have done reasonably as the growth story is now broad-based :\nTata Infrastructure Fund (17.14%) Aditya Birla Sun Life Infrastructure Fund (15.28%) UTI-Transportation and Logistics Fund (14.78%) Losers\r#\rSurprisingly there have been NO losers , all mutual funds have gained this month. This gives you the kind of broad based rally that has taken place in the stock market.\nDisclaimer: Sectoral funds are quite risky and therefore based on your risk appetite make a wise decision. Reference\r#\rFPI Monitor Bloomberg Quint Where should I invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"23 December 2020","externalUrl":null,"permalink":"/posts/monthly-roundup/2020/november/","section":"Posts","summary":"\rThis is one of those rare months where all sectors have done well . If you had remained invested through the month, your mutual fund value would have risen . How about that ! Foreign Institutional Investors (FII) have invested 60358 crores. This is almost the same amount they withdrew in March 2020. Overall investment in India is close to 100 thousand crores.\n","title":"Monthly RoundUp - November 2020","type":"posts"},{"content":"\rWhat are goals ?\r#\rAs an individual / family, you have a vision or a personal objective/s that you would like to meet in your lifetime .\nSome / all of these objectives may need to be financed . Therefore having a goal makes sense.\nGoals have to be SMART . Create a plan to achieve your goal Execute the plan. Examine results of your execution. Incorporate feedback to your plan Repeat steps 3 to 5 In other words, this is your famous Plan-Do-Check-Act (PDCA) cycle that will help you achieve your goal.\nREMEMBER : You are the biggest stakeholder in your financial goal and therefore only YOU can achieve your goal.\rWhat do we require in goals ?\r#\rGOAL EXAMPLE : I would like to own an SUV costing Rs 20,00,000/- when I am 35 .\rIf you take the above goal, you have clearly laid out your goal that you intend to own a car costing 20 lakhs today when you become 35 and it should be a SUV. You can name the SUV later, but this is a good start !\nGOAL EXAMPLE : On lifestyle expenses, currently I spend Rs 7,00,000/- per year and I need to take care of retirement, assuming,\rthat I retire at 60 and I would like to leave an estate of 1 crore for my children .\rLifestyle expenses are the recurring expenses that happens in an individual / family\u0026rsquo;s house. These do not fluctuate significantly and after retirement, there could be one or two expenses that could be added. Moreover, here, the goal clearly states that he plans to retire at 60 and given a life expectancy he would want to take care of that until the event takes place\nParameters for a financial goal\r#\rGoal : Goal identification is the first step in goal planning. Identify all your goals and make sure you make them SMART . Priority : Prioritize your goals. Some of them are CRITICAL , some of them are NICE TO HAVE Goal Type : Some goals occur only once in a lifetime (marriage of son), some recur every year (retirement). Goal Dates : Identify the Start and End Date of your goal Current Amount : How much amount is required to accomplish that goal today ? Tenure : If it is a recurring event, how many years does it recur ? for e.g. MBA fees recurs for two years Goal Inflation : Inflation erodes purchasing power. School fees increase by 9% on an average. It Goal Term : Goal Term could fall in one of these categories Short Term / Medium Term / Long Term. If you plan to retire in 30 years, you could consider it long term What next ?\r#\rWhat are the resources available ? Can you allocate these resources towards your goals ? Are you allocating the right resources towards your goals ? for e.g. long term goals require resources which are long term in nature Do you have sufficient time to generate resources and allocate towards the goal ? What kind of assets are you allocating towards your goal ? Are the assets that you are allocating towards your goal also considering your risk profile ? Other Links\r#\rYou can refer to other 5 parts of my Goal Planning series below\nGoal Planning - Overview Goal Planning - Risk Profile Goal Planning - Assets Goal Planning - Liabilities Goal Planning - Income and Expenses Goal Creation - Can you help me ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"7 December 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/07-goal/","section":"Posts","summary":"\rWhat are goals ?\r#\rAs an individual / family, you have a vision or a personal objective/s that you would like to meet in your lifetime .\n","title":"Goal Planning - Goal - Part 6","type":"posts"},{"content":"","date":"4 December 2020","externalUrl":null,"permalink":"/tags/annuity/","section":"Tags","summary":"","title":"Annuity","type":"tags"},{"content":"\rGrowing Annuity @ Retirement\r#\rMahesh is 45 years old and his current expenses are Rs 75,000/- per month . He plans to retire by 60 and would like to have an annuity which would pay him enough for his current expenses. He would like this annuity to increase by 5% every year considering inflation in mind. How much should he start investing now so that it takes of my retirement till 85? Assumptions\r#\rInflation is assumed at 5% Annuity is required from 60 to 85 Assume that he gets a return of 8% from 60 to 85 Equity would provide a conservative return of 10% over the long term (CAGR) Debt would give a return of 7% CAGR What will be my expense at 60 ?\r#\rWe need to keep in mind the current expenses and inflation to find out his probable expense at 60.\nMahesh has informed that his current expenses are Rs 75,000 per month He is considering an inflation of 5% which is reasonable. Therefore by 60, his expenses would be approximately Rs 1,55,920 per month which will rise by 5% year on year .\nWhat is the corpus he would require for retirement ?\r#\rMahesh would require a corpus of Rs 3.41 crores considering that he would receive a yield of 8% after retirement and an inflation of 5%. His expense at 60 as we found out earlier will be Rs 18,71,040 annually .\nWhat does he have now ?\r#\rHe has about 20 lakhs ready to invest and He can put approximately 10 lakhs surplus on a yearly basis till 60 . What is the required rate of return ?\r#\rWith the commitment that he has shown that he has ready to invest Rs 20 lakhs and a yearly investment of Rs 10 lakhs, he would require a return of 7.52% post-tax to achieve his corpus.\nSo what next ?\r#\rBased on his risk profile, it was suggested that\nHe invest in 30:70 ratio in equity and debt respectively. This will augur well for him as he would receive an average return of 7.9% pre-tax There would be enough room for any tax payments that is required to be made. Over a period of 15 years , he would approximately make Rs 3.61 crores As he reaches 60, he would stop making investments and initiates a Systematic Withdrawal Plan with the mutual funds Systematic Withdrawal Plan(SWP) allows an investor to withdraw a fixed or variable amount from his mutual fund scheme on a preset date every month, quarterly, semi annually or annually as per his needs.\nHis yearly expense would be credited to his bank account which could be used for his monthly expenses As he turns 60, some of his equity investments would slowly be moved to liquid / debt funds Takeaways\r#\rWith the advances in medical science, our lifespan has increased as well. Be prepared for extended life. Ensure you lead a healthy lifestyle. Periodically assess where you stand with your finances and see if it is sufficient Keep aside a buffer on the corpus that you require , this will help your extended life While considering return on debt and equity , be conservative and use conservative numbers Medical expenses increases, you may require additional help. You need to consider these expenses as well Remember, you can\u0026rsquo;t earn money easily, when you are old. Organizations pay you for your time and youth. (of course, the wisdom your bring along) If you start early, you could have reduced the huge yearly investment and also reduced the amount that you put away as an initial amount. Can you help me with an annuity plan ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"4 December 2020","externalUrl":null,"permalink":"/posts/casestudies/annuity/","section":"Posts","summary":"\rGrowing Annuity @ Retirement\r#\rMahesh is 45 years old and his current expenses are Rs 75,000/- per month . He plans to retire by 60 and would like to have an annuity which would pay him enough for his current expenses. He would like this annuity to increase by 5% every year considering inflation in mind. How much should he start investing now so that it takes of my retirement till 85? ","title":"Case Study - Growing Annuity with mutual funds","type":"posts"},{"content":"\rBest Performing Mutual Funds 2020\r#\rThe year 2020 will be long remembered for pandemic , job loss , economic loss , lockdown, disasters etc. It will also be remembered for tenacity, willpower, strength, patience of the common man, companies, institutions, government etc\u0026hellip; This year has been a year of extreme volatility . We have seen extreme fear and moderate greed in the same year. Swinging from doomsday to irrational exuberance are all happening at the same time. In this article, the performance of mutual funds are compared from YTD.\nSectors\r#\rIf you look at the BSE indices which have done since 1st January 2020 are :\nS\u0026amp;P BSE Healthcare Index (48.48%) S\u0026amp;P BSE IT Index (40.05%) S\u0026amp;P BSE Teck. Index (29.41%) S\u0026amp;P BSE Smallcap (19.91%) S\u0026amp;P BSE Midcap (10.00%) This gives a view that if you had just stayed invested despite the debacle in March 2020, you would have still received a gain of 8 to 10%. Large caps and ELSS have a given a return of 6 to 7%. We have known from history that after every fall, there will be a rise. The difference is that the rise has been within a shorter period of time.\nTop 5 mutual funds in 2020 (YTD)\r#\rDSP Healthcare Fund - 66.41% Mirae Asset Healthcare Fund - 60.88% PGIM India Global Equity Opportunities Fund - 59.67% Quant Small Cap Fund - 59.49% ICICI Prudential Pharma Healthcare and Diagnostics Fund - 56.74% Healthcare Funds\r#\rIf you had invested in any healthcare fund, you would have received an average of 51% in return.\nDSP Healthcare Fund - 66.41% Mirae Asset Healthcare Fund - 60.88% ICICI Prudential Pharma Healthcare and Diagnostics Fund - 56.74% SBI HEALTHCARE OPPORTUNITIES FUND - 54.13% UTI Healthcare Fund - Regular Plan - Growth Option - 53.07% Large Cap Funds\r#\rCanara Robeco Bluechip Equity Fund - 14.23% JM Large Cap Fund - 12.69% Axis Bluechip Fund - 10.59% UTI - Master Share - 9.64% Edelweiss Large Cap Fund - 9.23% Mid Cap Funds\r#\rPGIM India Midcap Opportunities Fund - 37.29% Mirae Asset Midcap Fund - 35.03% Union Midcap Fund - 34.51% Principal Midcap Fund - 28.12% Quant Mid Cap Fund - 26.26% Large \u0026amp; Mid Cap Funds\r#\rUnion Large and Midcap Fund - 27.99% Mahindra Manulife Top 250 Nivesh Yojana - 24.82% Motilal Oswal Large and Midcap Fund - 24.53% Axis Growth Opportunities Fund - 18.27% Canara Robeco Emerging Equities - 16.47% Index Funds\r#\rMotilal Oswal Nifty Bank Index - 38.37% Motilal Oswal Nifty Smallcap 250 Index Fund - 37.45% Motilal Oswal Nifty Midcap 150 Index Fund - 32.5% L and T Nifty 50 Index Fund - 27.48% Motilal Oswal Nifty 500 Fund - 27.48% ELSS Funds\r#\rQuant Tax Plan - 32% Parag Parikh Tax Saver Fund - 29.87% ITI Long Term Equity Fund - 24.95% BOI AXA Tax Advantage Fund - 21.58% Canara Robeco Equity Taxsaver Fund - 16.76% Focussed Funds\r#\rTata Focused Equity Fund - 26.88% Kotak Focused equity Fund - 26.01% Union Focused Fund - 25.05 % IIFL Focused Equity Fund - 15.32% ICICI Prudential Focused Equity Fund - 14.37% Multicap Fund\r#\rMirae Asset Focused Fund - 35.73% Quant Active Fund - 28.35% Sundaram Equity Fund - 26.67% PGIM India Diversified Equity Fund - 26.3% Parag Parikh Long Term Equity Fund - 26.06% Value Fund\r#\rICICI Prudential Value Discovery Fund - 13.07% UTI Value Opportunities Fund - 10.36% Indiabulls Value Fund - 9.11% Union Value Discovery Fund - 8.52% Nippon India Value Fund - 6.91% International Funds\r#\rFor international funds, I already have mentioned it here There are no major changes and many of them are still doing well.\nI need maximum return! Can I get if I invest in any of these ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"27 November 2020","externalUrl":null,"permalink":"/posts/didyouknow/performing-mf-2020/","section":"Posts","summary":"\rBest Performing Mutual Funds 2020\r#\rThe year 2020 will be long remembered for pandemic , job loss , economic loss , lockdown, disasters etc. It will also be remembered for tenacity, willpower, strength, patience of the common man, companies, institutions, government etc… This year has been a year of extreme volatility . We have seen extreme fear and moderate greed in the same year. Swinging from doomsday to irrational exuberance are all happening at the same time. In this article, the performance of mutual funds are compared from YTD.\n","title":"Best performing mutual funds in 2020","type":"posts"},{"content":"\rHDFC Tax Saver Fund is an Equity Linked Savings Scheme . It has kept its benchmark as the Nifty 500. It\u0026rsquo;s performance has not been upto the mark in the recent years. Expense ratio is on the higher side. It has been ranked a 1 star fund in Valueresearch and Moneycontrol It seems that HDFC AMC has had a closer look at this and has made major changes to this fund and is keen to turn this ship around.\nIntroduction\r#\rType of Fund\rEquity ELSS Benchmark\rNifty 500 Expense Ratio\r2.03% Riskometer\rModerately High HDFC Tax Saver fund was started in 1996 and has hung around for more than 20 years .\nThis fund belongs to Equity Linked Saving Scheme (ELSS) and therefore you get the 80C tax benefit . It has about 60 stocks in its portfolio where close to 70% in large cap stocks . AUM has fallen from 7326 crores to 6648 crores in the last 10 months. Bank, software , pharma exposure has increased in October 2020. AUM\rOct 2020 - 6648.70cr Jan 2020 - 7326.69cr Entry Load\rNA Exit Load\r0% 0% Portfolio Turnover\r29% Portfolio Changes\r#\rThe new fund manager has made major changes to HDFC Tax Saver. There has been a portfolio turnover of 29% . 15 new funds have been added , 6 funds have been completely removed namely on PSU side 6 funds have been consolidated mainly on software and bank and 6 funds have been reduced mainly on PSU, petroleum and infrastructure AUM Changes\r#\rAUM has been fluctuating significantly since January and is yet to reach the peak of January 2020. However, with the recent structural changes in the fund, performance improvement is likely to happen. With increase in performance, AUM is bound to increase.\nFund Manager\r#\rMr. Amit B Ganatra has joined HDFC AMC Ltd. in May 2020. He has over 17 years of experience in equity research and close to 10 years in fund management. Earlier he has been with Invesco Asset Management and was managing\nInvesco India Growth Opportunities Fund Invesco India Contra Fund Invesco India Largecap fund Invesco India Tax Plan Invesco India Financial Services Fund Amit has good track record and his performance in the above funds speaks volumes.\nIndicators\r#\rThere has been intent from HDFC to turnaround their ship of non-performing mutual funds New manager has been appointed - Mr Amit B. Ganatra who has an impressive track record In the monthly call , Mr Amit has clearly indicated the path going forward and has made major changes to HDFC Tax Saver portfolio accordingly Investment in sectors like Banks, Software and Pharma is up and therefore an uptick in performance is expected in the coming months There are a few concerns Too many stocks in their portfolio SBI and ITC are poised to do well, but we have seen reductions Wary about increase in auto-exposure, though they have recently done well in the last quarter Performance\r#\rChanges to structure of the fund is completed, performance of the fund is to be seen over the next few months. However , positive steps have been taken to give a better performance to the investors of this fund.\nSummary\r#\rKeep a track of this fund for the next two months and performance of the fund and the fund manager will be quite revealing. The challenge with investors is that we end up sitting on the fence longer. However, in the same breath, be completely convinced that this is the right fund for you.\nReferences\r#\rHDFC Tax Saver - Fact Sheet Valueresearchonline Moneycontrol Disclaimer : Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund.\rShould I add this to my portfolio ? ","date":"20 November 2020","externalUrl":null,"permalink":"/posts/spotlight/hdfc-tax-saver/","section":"Posts","summary":"\rHDFC Tax Saver Fund is an Equity Linked Savings Scheme . It has kept its benchmark as the Nifty 500. It’s performance has not been upto the mark in the recent years. Expense ratio is on the higher side. It has been ranked a 1 star fund in Valueresearch and Moneycontrol It seems that HDFC AMC has had a closer look at this and has made major changes to this fund and is keen to turn this ship around.\n","title":"HDFC Tax Saver","type":"posts"},{"content":"\rEmergency fund as the name suggests is the money that you would touch when you have an emergency.\nEmergencies could be :\nMedical Emergency Job loss etc\u0026hellip; What is an emergency fund ?\r#\rEmergency funds help you take care of the financial aspect of the emergency. During COVID-19, there were many people who have lost jobs. Job loss could be reasons out of your control and therefore it is imperative that you are prepared for it. Medical emergencies do not come announced and therefore always be prepared for it. For medical emergencies, your first choice should be health insurance and even after health insurance covering the amount, there will be some bills which your emergency fund can cover.\nHow do you build the emergency fund ?\r#\rEmergency fund typically is 6 to 9 months of your monthly expenses .\nMonthly expenses includes ALL expenses.\nA typical family would have the following expenses , but not limited to :\nRent / EMI Groceries Utility - Electricity / Water / Gas etc\u0026hellip; Dining out Clothing Entertainment - Movies / Travel / Hobbies Insurance - Auto / Health / Life Medical Expenses Phone - Landline / Mobile Apartment Maintenance Automobile - Maintenance / Petrol etc\u0026hellip; Education Fees Once you have ascertained your expenses, multiply this by 6 or 9 , to obtain the amount for emergency fund .\nWhy do you suggest 6 or 9 months ?\r#\rLet us assume that you are between 24 to 35 and you are among the lower layer of the pyramid structure in the organization and for whatever reasons, you have lost your job. You should be able to find a job within the next 6 months. As you move higher up the ladder, the number of jobs which are open are lesser and therefore it could take sometimes close to 9 months to find a job.\nAssuming there is a medical emergency and the average cost to be around Rs 3 lakhs and your current net salary is Rs 50,000/- (assuming you have no health insurance), once again this amount should suffice.\nAs you can see, 6 to 9 months of your daily expenses, takes care of your job loss , medical expense. Contingency plan, if you will !\nWhere should I park my emergency fund ?\r#\rEmergency fund should be liquid in nature. It means that you should be able to use that money as quickly as possible. You should be able to convert your emergency fund into liquid cash in a day. You could keep these funds either in savings account, fixed deposit, overnight / liquid mutual funds. Should I keep more than 6 to 9 months in emergency fund ?\r#\rIn the previous section you have noticed that you would park your funds in savings account, fixed deposit, overnight / liquid funds - you would earn very less return and therefore in this regard, if you keep more money in such funds, you would get a lesser return. Therefore choose wisely and 6 to 9 months should generally be sufficient. I have already used my emergency fund. What now ?\r#\rReplenish your emergency fund as soon as you exhaust it. Emergencies, generally, do not come every year but it comes unannounced.\nHow often should I relook at my emergency fund ?\r#\rI would strongly recommend that you look at your emergency fund every year. As our income increases, we tend to increase our lifestyle expenses and it is difficult for us to adjust on the lower side.\nFollowing examples, should help you understand :\nIn case you have already paid your loan, remove the EMI from your monthly expenses. In case your lifestyle expense has increased , adjust the amount accordingly at the beginning of the new year. Your son / daughter has moved from 10th to 11th , fees have changed, you may have to revisit your emergency fund. Conclusion\r#\rEmergency fund is a contingency plan for all your emergencies. It gives a cushion when you are down ! Don\u0026rsquo;t keep too much money in the contingency plan, it impacts your other goals.\nIf you don\u0026rsquo;t have one, start now !\r#\rI need to have an emergency fund! Help !\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"13 November 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/01-emergency-fund/","section":"Posts","summary":"\rEmergency fund as the name suggests is the money that you would touch when you have an emergency.\n","title":"Goal Planning - Emergency Fund","type":"posts"},{"content":"\rAs you are aware, since last month, I compile a list of funds and sectors which have done well.\nBanks have been on the losing streak for a long time and there has been some respite last month, but not enough. Digital growth story has been intact and has an average growth of about 16% for two months in a row. Winners\r#\rIn October 2020, banking funds have done really well.\nOctober 2020 Open End Return High Nifty Bankex 21685.25 23900.90 10.2% 24769.50 Nifty Private Bank 11955.50 13258.00 10.9% 13777.85 Nifty PSU Bank 1280.95 1260.50 -1.6% 1333.40 Under Nifty Bank index , we have seen growth in\nHDFC Bank (9.73%) , ICICI Bank (10.67%) , Kotak Mahindra Bank (22.02%) Some of these banking funds have :\nICICI Prudential Private Banks ETF - 7.75% Tata Banking and Financial Services 7.59% SBI ETF Nifty Bank - 7.43% For the last two months the story seems to be intact for Digital India funds namely :\nTata Digital India Fund (17.82%) ICICI Prudential Technology Fund (14.56%) SBI Technology Opportunities Fund (13.36%) Losers\r#\rSurprisingly, the ones which we did well last month, has dipped this month:\nMirae Asset Healthcare Fund (-2.91%) DSP Healthcare (-1.59%) ICICI Prudential Pharma (-2.8%) The story for the last two months on the losers seems to be bank mainly (despite the gain this month) :\nKotak PSU Bank ETF (-17.24%) Nippon India ETF Bank BeES (-17.21%) ICICI Prudential FMCG Fund (-13.57%) Disclaimer: Sectoral funds are quite risky and therefore based on your risk appetite make a wise decision. Where should I invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"6 November 2020","externalUrl":null,"permalink":"/posts/monthly-roundup/2020/october/","section":"Posts","summary":"\rAs you are aware, since last month, I compile a list of funds and sectors which have done well.\n","title":"Monthly RoundUp - October 2020","type":"posts"},{"content":"","date":"30 October 2020","externalUrl":null,"permalink":"/tags/house/","section":"Tags","summary":"","title":"House","type":"tags"},{"content":"\rBefore I bought my house in 2010, I was grappling with this thought whether to buy or rent ? . I was living in a rented house and was paying Rs 8000/- as rent. My parents insisted on buying a house and the EMI was Rs 14,000/- per month. I argued that the rent amount was much lesser and insisted that we live in a rented house as the EMI is much higher than the rent. As with any middle class family, my parents had their way and we eventually bought the house.\nThe Checklist\r#\rThere are multiple factors that you should check while buying a house. Buying a house is an emotional and a big financial activity. Your parents would feel that you have \u0026ldquo;settled\u0026rdquo; and now you are \u0026ldquo;independent\u0026rdquo; . You have a feeling that you own a piece of land in this \u0026ldquo;big city\u0026rdquo;. As you go through the process, there are so many processes and documents you go through - some from the builder / seller, some from the bank. I have provided a list of questions that you could start with but this list is by no means exhaustive. Emotional\r#\rIt is noted that majority of the buyers make their decision because of emotion . Buying a house is not easy, but at the same time we need to keep a check on our feelings and ask for help when required .\nGiven the circumstances, rent seems to be an economical choice , but it would be nice to own a house too. What should I do ? Am I paying a huge price for this house ? My life\u0026rsquo;s earnings are invested in this, hope I am doing the right thing. What kind of community will we have ? Is this a reputed builder ? My friend bought a house with this builder and he / she had problems. Will I have problems too ? Could I have got a better deal for the house ? ( from the bank ? ) Am I getting a better view / positive vibe from this house ? Suggestions\r#\rIf you are young bachelor , it is easy to move houses. However, once you are more than 1, it becomes quite difficult and an own house gives you that peace of mind. You can\u0026rsquo;t put a number to peace of mind. Ask questions, reach out for help, hear everyone, but decision will be yours . Buying a house is generally once in a lifetime decision , feel comfortable and then make your decision Enquire / research about the builder or the person from whom you are Understand the guidance value / market value of the area In some cases, there is generally a WhatsApp group for buyers in a new residential area, join that ! You will have up-to-date information Budget \u0026amp; Finance\r#\rYou cannot spend all your savings in your first house. You need to have an emergency fund (which includes your EMI). You will still have monthly expenses after your EMI.\nHow much downpayment do I need to make ? Is this beyond my budget ? Will I have sufficient money left after paying my EMI ? I need money for expenses as well. Which banks gives the best interest rate for this house ? How much do I intend to spend on the interiors ? How much do I have to pay for stamp duty ? What is the cost of registration ? Should I buy property insurance ? Should I buy life insurance as the bank insists to sanction the home loan ? What kind of tax benefits do I get on principal and interest ? Has the property tax been paid for this house till date? Suggestions\r#\rIn case you are buying a house, ensure that your EMI is about 35 - 40 % of your net income and not more than that. We are living in uncertain times. Don\u0026rsquo;t put all your money away for downpayment , you need money for emergencies and expenses. Keep the money aside for that as well. Adjust the money for your emergency goal . Emergency goal is generally 6 times your current monthly expense. Ensure you include the EMI as part of your monthly expense. Negotiate for reduction of home loan interest rate whenever possible. Banks generally provide best rates for new customers and do not reduce it for existing customers. Crying baby gets milk. Identify your credit score from CIBIL / Experian . In case there are any anomalies , get it fixed and correct it. Better your credit score, your eligibility for loan improves. Do NOT use your emergency fund as part of downpayment of loan. If you do so, you put yourself at risk. Processing charges for loan - Try to get this reduced as far as possible. It is a bit easier in private banks than in government banks. Check for pre-closure charges . RBI has issued couple of circulars on this. See this You don\u0026rsquo;t have to keep your loan open for the entire tenure . It has been observed that home buyers are able to close the loan within 8-10 years. For your first house, whenever you have a surplus, try to pre-pay as much as possible . This will reduce your interest and thus your expense. Remember, interest that you pay , is also an EXPENSE Property insurance is taken to cover against fire, burglary, natural calamities etc\u0026hellip; It is noted that people living in apartments do not go for individual property insurance, however, it would be a wise idea to check There is no need to buy life insurance from the bank which provides you home loan. Understand benefits you get on tax reduction on interest payment and principal payment If you prepay your principal , what is the effect on your tax amount ? House\r#\rAre the documents proper ? I have provide a list of references What kind of amenities are available ? Swimming pool, Gym, play area, club house etc\u0026hellip; Does this property have the services that I woud look for ? Hospital, School, Supermarket, Metro etc\u0026hellip; Do we have good public transport , or should I buy a car ? Will there be a good resale value for my house ? Is this property pre-approved by any bank ? How far is my office ? How far is my spouse\u0026rsquo;s office ? How is the water supply ? Are there any litigations against the property ? Suggestions\r#\rWhen you are buying a house , ensure that you have enquired thoroughly and purchasing a good house where you intend to spend , perhaps, your lifetime . Talk to multiple banks and enquire interest rates Many articles available on website to evaluate houses Read reviews of apartments on the internet In case you are uncomfortable , unsure about things , and have very less time , reach out to a reputed lawyer / real estate consultant who has experience in such matters and can help you with your purchase If this is your first house , where you intend to live for a long period of time, I would not be too concerned about resale value Conclusion\r#\rI have stayed in my house for 13 years, thankfully been able to repay my loan within the tenure and given that I have lived in rental houses earlier, journey so far has been quite peaceful. I wish you the same peace and comfortable journey while buying your house. References\r#\rRBI - NBFC - Foreclosure RBI - Bank - Foreclosure Documents - PropTiger Documents - Common Floor Documents - Citizen Matters Disclaimer : This post is to enable you getting started to buy a house and the advice posted is generic\rin nature. For specific cases, reach out to a real estate consultant\rI am planning to buy a house. Can you help ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"30 October 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/housing/","section":"Posts","summary":"\rBefore I bought my house in 2010, I was grappling with this thought whether to buy or rent ? . I was living in a rented house and was paying Rs 8000/- as rent. My parents insisted on buying a house and the EMI was Rs 14,000/- per month. I argued that the rent amount was much lesser and insisted that we live in a rented house as the EMI is much higher than the rent. As with any middle class family, my parents had their way and we eventually bought the house.\n","title":"Things to check while buying your first house","type":"posts"},{"content":"\rNovember 2002 - I boarded the train from Mumbai to Pune to take up my first job. Net income was Rs 15,000/- We were working in one of the top IT service companies and quite excited. I used to meticulously write my expenses on daily basis. Very soon, I had made some good friends. I was eating out regularly. There was one late night movie every week, parties during the week. I stopped writing my expenses. Every Friday there was a Sumo ready to take us back to Mumbai and every dreadful Monday, there was one to take us back to office. By the time I left my first job and moved to the second one, I had Rs 4000/- in my bank account (2 years of saving).\nIncome\r#\rInvestopedia defines income as\nMoney that an individual receives, usually in exchange for providing a good or service or through investing\rcapital.\rIf you are an employee, you receive income for the value you create for the organization . As the value you provide increases, so does your income. However, if you note, the sources of your income will generally be limited to 1 or 2.\nSources of Income\r#\rYour salary Your spouse\u0026rsquo;s salary Interest Income Rental Income Business Income Capital Gains Multiple incomes give you a cushion when one of the sources of income dries up. However, if I may digress, you should also invest in yourself . Knowledge is something that can\u0026rsquo;t be taken away .\nWith knowledge, you get confidence and confidence shows when you talk. You can see the chain.\nNever depend on single income. Make investment to create a second source. - Warren Buffett\rExpense\r#\rI am sure you are familiar with your expenses. However, more often than not, people fail to create a budget for expenses. When you create a budget,\nYou know the categories where you spend You know how much you spend in each of those categories You know how much less / more you spend than you thought you would spend However, it is an exercise to track such expenses. Moreover, some expenses are termed as recurring (lifestyle) expenses and some are discretionary expenses . As your income increases, there is a tendency that both these expenses goes up which in turn changes your lifestyle . Your lifestyle expense determines your retirement corpus , as man is a creature of habit .\nConclusion\r#\rI would strongly suggest that , if you haven\u0026rsquo;t already done, try to\nIdentify your sources of income Identify your expense categories Create a budget Identify your recurring and discretionary Track your income and expenses on a periodical basis (preferrably monthly) Make plans for additional source of income This should help you\nUnderstand your lifestyle Identify monthly surplus / deficit Make corrections wherever necessary and Understand money you would require for your retirement etc\u0026hellip; How do I make additional sources of income and how do I track expenses ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"23 October 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/06-income-expenses/","section":"Posts","summary":"\rNovember 2002 - I boarded the train from Mumbai to Pune to take up my first job. Net income was Rs 15,000/- We were working in one of the top IT service companies and quite excited. I used to meticulously write my expenses on daily basis. Very soon, I had made some good friends. I was eating out regularly. There was one late night movie every week, parties during the week. I stopped writing my expenses. Every Friday there was a Sumo ready to take us back to Mumbai and every dreadful Monday, there was one to take us back to office. By the time I left my first job and moved to the second one, I had Rs 4000/- in my bank account (2 years of saving).\n","title":"Goal Planning - Income \u0026 Expenses - Part 5","type":"posts"},{"content":"\rOne of the risks that recently have been talk of the town are geographical risks . Despite the world which is so interconnected now and any event has repercussions across the world, there are still inherent geographical risks which are local .\nUS Economy\r#\rUS economy is the largest and most important in the world. US economy represents about 20% of total global output . US economy features a highly developed and technologically advanced services sector . If you look a the top 10 companies in the world , you will find all the technology companies occupying this space. Earlier they were the oil companies, but still American companies. Surprisingly they find a way to occupy the top spaces in almost all segments. You have definitely heard of Apple , Google , Amazon , Facebook , IBM , Accenture , Intel , Adobe . Manufacturing and servicing industry are thriving in USA. In the last 20 years, there has been immense growth in robotics and areas where there is limited requirement of human beings doing mundane things.\nIn fact there are many who enamour the tremendous potential in such organizations and would like to be a part of their growth story. You definitely can be by investing in mutual funds which invest in such organizations and have given fantastic returns. Just to give a glimpse, look at the figure below (for YTD returns) :\nSome of the mutual funds that invest in such companies are :\nFranklin India Feeder Franklin US Opportunities Fund DSP US Flexible Equity Fund (FOF) Motilal Oswal Nasdaq 100 (FOF) ICICI Prudential US Bluechip Equity Fund China Economy\r#\rIn 1978, when China started their economic reforms , it had a GDP of 214 billion USD . It now has a GDP of 9.2 trillion USD .\nChina has become the world\u0026rsquo;s manufacturing hub Second largest company is China Petroleum \u0026amp; Chemical Corp . Fourth largest company is PetroChina . Tencent , Alibaba and Baidu are the other large companies that have come up in recent times featuring in top 25 by revenue .\nTop funds investing in China \u0026amp; Asia economy are :\nEdelweiss Greater China Equity Offshore Fund Franklin Asia Equity Fund HSBC Global Emerging Market Fund Kotak Global Emerging Market Fund Conclusion\r#\rEquity international funds are good way to mitigate the geographical risk in a portfolio. Moreover, if any of you who have invested in some of the above funds can definitely vouch for the huge gain that you have received in the last 1 year despite the coronavirus.\nReference\r#\rUS Economy Top 10 companies Disclaimer : Past returns are not indicative of future returns and this article is NOT\rsuggesting in anyway to buy any of the mutual funds listed in the article.\rInternational Funds look interesting. Is this a good time to start ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"19 October 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/mutual-funds/international-funds/","section":"Posts","summary":"\rOne of the risks that recently have been talk of the town are geographical risks . Despite the world which is so interconnected now and any event has repercussions across the world, there are still inherent geographical risks which are local .\n","title":"Equity - International Funds","type":"posts"},{"content":"","date":"15 October 2020","externalUrl":null,"permalink":"/tags/etf/","section":"Tags","summary":"","title":"ETF","type":"tags"},{"content":"\rMutual funds can be categorized into two types of funds :\nActive Funds In active funds , we have an experienced fund manager and a management team to make decisions on the amount collected from investors. For example, Mirae Asset Large Cap Fund - Fund Manager - Gaurav Misra \u0026amp; Harshad Borawake Parag Parikh Long Term Equity Fund - Fund Manager - Rajeev Thakkar \u0026amp; Raj Mehta Passive Funds In passive funds, they follow a market index and do not have a fund manager who actively manages the portfolio. For example, SBI ETF Nifty 50 - Largest ETF in India with an overall AUM of 75,000 crores and this fund tracks the Nifty 50 . Expense ratio is 0.07%\nHDFC Nifty 50 ETF with an AUM of 466.46 crores has given the same performance as SBI ETF Nifty 50 as it tracks the Nifty 50 . Expense ratio is 0.05%\nExchange Traded Funds (ETFs) - Equity\r#\rEquity ETF\u0026rsquo;s (from hereon , I shall refer to ETF\u0026rsquo;s) can be thought of as a hybrid of mutual funds and stocks.\nETF shares are traded in stock exchanges They have continuous pricing and liquidity throughout the day. Transactions in ETF mainly take place in secondary markets . Nifty Bees was the first ETF in India in December 2001 . ETFs are regulated under SEBI\u0026rsquo;s mutual fund regulations 1996. There are several advantages of ETFs which I shall list below :\nExpense ratio of ETF\u0026rsquo;s are considerably lesser than actively mutual funds (0.1 to 0.3 vs 1.5 to 2.3) You know the entire structure of the stock well in advance (as it follows the index) unlike active funds where you come to know only when they release the monthly factsheet This can be sold intra-day There is no exit load Nifty 50 ETF\u0026rsquo;s have outperformed 71% of previous 1 year period(as on 31 Dec 2019) There are few disadvantages as well:\nThere is no cash component in ETF and in case of steep fall, this will directly reflect in your NAV Liquidity - if ETF is thinly traded, there could be a challenge in getting out of ETF Returns\r#\rAs you can see from the below table, there are so many different indices and the expense ratio in many of them is quite less. Returns of many of such indices\nConclusion\r#\rETF\u0026rsquo;s are a good way to keep the expenses of actively managed funds at a low level. However, one needs to have a balance of ETF and active funds in their portfolio and the balance is determined by the goals and risk profile of individual.\nReference\r#\rMirae Asset SPIVA Can I invest in ETF ?\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"15 October 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/mutual-funds/etf/","section":"Posts","summary":"\rMutual funds can be categorized into two types of funds :\nActive Funds In active funds , we have an experienced fund manager and a management team to make decisions on the amount collected from investors. For example, Mirae Asset Large Cap Fund - Fund Manager - Gaurav Misra \u0026 Harshad Borawake Parag Parikh Long Term Equity Fund - Fund Manager - Rajeev Thakkar \u0026 Raj Mehta Passive Funds In passive funds, they follow a market index and do not have a fund manager who actively manages the portfolio. For example, SBI ETF Nifty 50 - Largest ETF in India with an overall AUM of 75,000 crores and this fund tracks the Nifty 50 . Expense ratio is 0.07%\n","title":"Exchange Traded Funds (ETFs)","type":"posts"},{"content":"\rWhen we buy a house loan from bank,\nBank provides us money We need to return the money after fixed number of years Bank charges a fixed interest rate for the money that it has lent However, we also lend money to banks. In case of a fixed deposit, we lend money to the bank.\nIn FD\u0026rsquo;s, you would see a similar resemblance as that of a house loan:\nYou have lent money to the bank Banks will return the money after fixed period Bank will provide you a fixed interest after a specified period Therefore, FD is a debt instrument where you receive a periodical amount of interest for a specified period.\nWhat are debt mutual funds ?\r#\rDebt mutual funds participate in secondary bond market where they trade government bonds, corporate bonds, public sector bonds anticipating risks like interest risk, credit risk etc\u0026hellip;\nWhat should I look for in debt mutual funds ?\r#\rThere are mainly two things that you need to look for in debt mutual funds:\nWhat kind of papers does the debt fund have ? Is it heavy on sovereign, AAA, AA funds? I would strongly recommend not to go for riskier debt funds as you already have equity funds for that. Your investment horizon should match the maturity period of your debt fund. I find that funds as stated below serves the purpose of retail investors :\nOvernight Funds (maturity in 1 day) Liquid Funds (maturity in 1 to 3 months) Ultra-Short-Term Duration Funds (maturity in 3 to 6 months) Low Duration Funds (maturity in 6 to 12 months) Short Term Duration Funds (maturity in 1 to 3 years) The returns do not fluctuate much based on interest rate.\nBenefit of Debt Mutual Funds\r#\rThere are multiple benefits of debt mutual funds Tax is not deducted at source If you keep the debt fund for a period of 3 years, you only need to pay a tax of 20% with indexation benefit More likely than you know, debt funds gives better return than FD Debt Mutual Funds - Recent Times\r#\rSee the performance of debt mutual funds in the last 1 year.\nIn fact, in the recent times, there are few debt funds which have given much better return than equity funds.\nReference\r#\rMoneycontrol Livemint I would like to invest in Debt Mutual Fund!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"13 October 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/debt-fund/","section":"Posts","summary":"\rWhen we buy a house loan from bank,\nBank provides us money We need to return the money after fixed number of years Bank charges a fixed interest rate for the money that it has lent However, we also lend money to banks. In case of a fixed deposit, we lend money to the bank.\n","title":"Debt Mutual Fund","type":"posts"},{"content":"","date":"13 October 2020","externalUrl":null,"permalink":"/tags/debt-mutual-funds/","section":"Tags","summary":"","title":"Debt Mutual Funds","type":"tags"},{"content":"\rEvery month I plan to do a roundup of funds which did well and things which didn\u0026rsquo;t well which gives a fair idea what kind of stocks are moving. This article talks about the mutual funds which have done well and a glimpse into their underlying scrips.\nWinners\r#\rIn September 2020, digital(technology) funds have been doing remarkably well.\nSome of these digital funds have :\nTata Digital Fund has given an outstanding return of 14.52% ICICI Prudential Technology has given a return of 12.44% SBI Technology has given a return of 10.5%\nThe underlying scrips in these digital funds include some of the well known IT firms.\nTCS (up by 10%) Infosys (up by 8.34%) Wipro (up by 15.36%) Persistent Systems (up by 39.60%) One other fund, which has given very good returns is the healthcare fund .\nMirae Asset HealthCare Fund (8.28%) DSP Healthcare Fund (7.47%) ICICI Prudential Pharma Healthcare Fund (7.3%) The underlying scrips in these healthcare funds include :\nSun Pharma (-3.78%) Dr. Reddys Labs (21.51%) Divis Labs (-2.27%) Cipla (8.68%) Ipca Laboratories (15.17%) Losers\r#\rInfrastructure, PSU, Banking and Financial Services have not done well in the last month\nAditya Birla Sun Life PSU Equity Fund (-8.79%) ICICI Prudential Infrastructure Fund (-8.4%) SBI PSU Fund (-6.78%) Some of the underlying scrips include :\nBHEL (-23.87%) State Bank of India (-12.64%) Power Grid (-9.14%) NTPC (-11.67%) Bharat Electronics (-5.42%) Disclaimer: Sectoral funds are quite risky and therefore based on your risk appetite make a wise decision. Where should I invest!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"8 October 2020","externalUrl":null,"permalink":"/posts/monthly-roundup/2020/september/","section":"Posts","summary":"\rEvery month I plan to do a roundup of funds which did well and things which didn’t well which gives a fair idea what kind of stocks are moving. This article talks about the mutual funds which have done well and a glimpse into their underlying scrips.\n","title":"Monthly RoundUp - September 2020","type":"posts"},{"content":"\rPPF Benefits\r#\r1. Loan against PPF\r#\rIf you take a loan against your PPF, this is 1% above the interest that you get in your PPF account. This has been reduced from 2% to 1%.\nInterest is levied from 1st day of the month in which loan is taken to the last day of the month in which last installment is paid\n2. Premature closure of PPF account\r#\rIf you would want to close your PPF account prematurely, you need to fill Form 5 for this. Premature closure is allowed for serious ailments or life threatening diseases affecting Account holder Spouse Dependent children or parents Premature closure is also allowed for higher education Account holder Dependent children Premature closure is also available for change in residency status of account holder 3. Gain maximum from PPF\r#\rYou can gain maximum benefit from PPF if you invest between 1st and 5th April 2020. If you do this , you will get the benefits of the entire 12 months - you will earn interest for the entire 12 months. In case you invested the money on 6th April 2020, you get the benefit of only 11 months.\n4. Funds in your PPF account cannot be attached\r#\rThanks to PPF scheme, funds in your PPF account cannot be attached by a court order. I hope that you never have to use this clause, but I am sure you feel good knowing this.\n5. Government Saving Promotion Act - 1873\r#\rOn 12th December 2019, Government made changes to PPF Act 1968. It now falls under Government Saving Promotion Act, 1873 - replacing Public Providence Fund Scheme 1968. Public Provident Fund Scheme 2019, the new rules have replaced all previous PPF rules with immediate effect. In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby rescinds with immediate effect the Public Provident Fund Scheme, 1968, published vide number G.S.R. 1136(E), dated the 15th June, 1968, except as respects things done and omitted to be done before such rescission, says a Gazette notification issued by the government.\nReference\r#\rLivemint Financial Express I need some help with PPF account!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"6 October 2020","externalUrl":null,"permalink":"/posts/didyouknow/ppf/","section":"Posts","summary":"PPF Benefits\r#\r1. Loan against PPF\r#\rIf you take a loan against your PPF, this is 1% above the interest that you get in your PPF account. This has been reduced from 2% to 1%.\n","title":"5 factors you didn't know about PPF","type":"posts"},{"content":"\rI was living in a rented house since 2005 when I moved from my parent\u0026rsquo;s house. Buying a house was quite expensive and I was unsure that I would work so long. Tenure for loans were 15-25 years. EMI\u0026rsquo;s were more expensive than the rent. I was not sure of many things while buying a house :\nWill this place have water ? Will it be as crowded / traffic congested as any other place ? (this was in 2007) Will we have proper documents ? ( I didn\u0026rsquo;t know what meant by \u0026lsquo;proper\u0026rsquo; documents) Does it have more amenities than the other apartment that we saw ? (no idea why we needed amenities - then !) Can I afford it ? My father often used to quote :\nNeither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry. - Shakespeare in Hamlet\nHowever, my father thought that buying a house would be the right thing to do. I relented and did buy the house and looking back seems like I did the right thing.\nHowever, as the prices have gone up, we are now taking loans for education, car and even personal loans to fulfill our obligations, needs and/or wants. In the same breath, I would like to quote Gandhi :\nThe world has enough for everyone\u0026rsquo;s need, but not enough for everyone\u0026rsquo;s greed. - Mahatma Gandhi\nWhat is a Liability ?\r#\rInvestopedia defines liability as something a person owes to someone.\nAll your loans including home loan, personal loan, overdraft, gold loan, education loan and even your credit card is considered as a liability .\n1. What are the different types of loans ?\r#\rThere are many types of loans and I have listed the common ones below :\nPersonal Loan Personal Loan is generally taken for emergency cases where you need money urgently and you are falling short in your bank to make that payment Vehicle Loan Vehicle loan is when you want to buy a car and the car is 30-40% more than what you can afford with your bank account. Education Loan Education loan is taken to assist a student for higher education Overdraft This is the facility provided by bank when your account balance reaches zero. Gold Loan You pledge your gold and the bank / NBFC provides you a loan. Home Loan Home loan is taken to aid the purchase of a house 2. Identify your loans\r#\rIf you are in your 30\u0026rsquo;s or mid 30\u0026rsquo;s, you would generally have two to three loans running:\nHome Loan Car Loan Education Loan (you may have closed it) Once you have identified your loans, you need to identify the following items :\nInterest Rate Outstanding principal Number of years EMI This will help you determine the cash outflow from your salary.\n3. What should I do with my loans ?\r#\rThis is a generic piece of advice for your loans. I would suggest that you should close your loans which has the highest interest rate first and try to close all your loans as quickly as possible. Closing your loans would be your first step towards financial freedom.\nBelow are the interest rates which I found at SBI website (these rates change on a periodical basis) :\nHome Loan (lowest interest rate - 6.95 % ) Car Loan - 7.75% Education Loan - 9.3 % Gold Loan - 9.90 % Personal Loan - 10.5% Things to review\r#\rWhenever you go for a loan, ask yourself,\nDo I really have this need to purchase ? If yes, do I really have to take a loan ? Can I repay the loan early ? Will I be able to afford the EMI ? Please note that loan is a \u0026ldquo;current\u0026rdquo; liability . You owe money to someone else as of now. However, if you are married and have kids, you will also have \u0026ldquo;future\u0026rdquo; liabilities which include :\nSchool education, Marriage of children and Retirement I have some more questions related to loans!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"1 October 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/05-liabilities/","section":"Posts","summary":"\rI was living in a rented house since 2005 when I moved from my parent’s house. Buying a house was quite expensive and I was unsure that I would work so long. Tenure for loans were 15-25 years. EMI’s were more expensive than the rent. I was not sure of many things while buying a house :\n","title":"Goal Planning - Liabilities - Part 4","type":"posts"},{"content":"","date":"1 October 2020","externalUrl":null,"permalink":"/tags/loans/","section":"Tags","summary":"","title":"Loans","type":"tags"},{"content":"\rI was so excited! My first job. This actually would mean independence. This would also mean that I would have a bank account and there would be a number bigger than 0 in my account. However, with the uncontrolled expenses, my bank account quickly got depleted as soon as my salary came in. Thankfully maturity came and as years passed by, I started gaining different types of assets including a house, a car, few more savings account, a fixed deposit, mutual fund , stocks etc\u0026hellip;\nWhat is an Asset ?\r#\rInvestopedia defines asset as an resource with economic value that an individual owns or controls with the expectation that it will provide future benefit.\nYour assets could come in various asset classes .\n1. What is an asset class ?\r#\rThere are 5 types of asset class :\nCash Power to buy anything immediately Equity Ownership of anything Fixed Income Lending money to someone and receiving an interest therefore Real Estate Owning land , apartment etc\u0026hellip; Commodities Ownership of natural resources which has use 2. Identify your assets\r#\rYou would be able to identify your savings accounts, mutual funds, deposits, stocks etc\u0026hellip; easily. However, you may own many more assets than you may think. In fact, this would also be useful to put it down in your will.\nLet me provide a brief idea of things that could come in assets:\nSavings Deposits / Recurring Deposits Mutual Funds - Debt , Equity, Hybrid, Solution Oriented, ETF, Gold ETF etc\u0026hellip; Gold House Valid Insurance Policy Others EPF (Employee Provident Fund), PPF (Public Provident Fund), NPS (National Pension Scheme), SSY (Sukanya Samriddhi Yojana) KVP (Kisan Vikas Patra) NSC (National Savings Certificate) SCSS (Senior Citizen Savings Scheme) etc\u0026hellip; Start making a list of assets as provided below\n3. How could this be useful ?\r#\rYou know what you own You can track your assets which have matured This would help you to create a will easily In goal planning, you associate your assets with your goals I have some more questions related to assets!\r\u0026times;\rLet's Talk Investments\rYour Name\rYour Email\rInvestment Goal / Message\rSend \u0026amp; Connect\r","date":"19 September 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/04-assets/","section":"Posts","summary":"\rI was so excited! My first job. This actually would mean independence. This would also mean that I would have a bank account and there would be a number bigger than 0 in my account. However, with the uncontrolled expenses, my bank account quickly got depleted as soon as my salary came in. Thankfully maturity came and as years passed by, I started gaining different types of assets including a house, a car, few more savings account, a fixed deposit, mutual fund , stocks etc…\n","title":"Goal Planning - Assets - Part 3","type":"posts"},{"content":"\rFrom childhood, we have been raised in a certain way, which shapes our opinion and attitude towards money. Some are conservative with money , some are willing to take risks . It is important to know where you stand and therefore invest your money in instruments which reflect your risk profile.\nWhat is Risk Profile ?\r#\rRisk profile determines our attitude towards money and it is best you allow a financial planner , whom you trust, help you determine your risk profile towards money as it is important to have a unbiased perspective (as far as possible).\nOne of the first activities in goal setting, is to determine your risk profile .\n1. Identify your risk profile\r#\rRisk Profile is basically your outlook towards money. Are you conservative when it comes to money ? Are you an aggressive investor ?\nRisk Required How much risk do you have to take to achieve your goal ? You need 6 lakhs to buy a car in 2 years You already have 5 lakhs with you It does not make sense to put 5 lakhs in equity as it means that you are taking a higher risk when the same can be easily achieved if you put it in debt instrument which is of much lesser risk and still achieve your goal. It is therefore important to know the risk required to achieve your goal .\nRisk Capability Do you have sufficient money to take such risks ? For e.g. You earn a salary of Rs 50,000/- You are already putting aside Rs 8,000/- monthly for your emergency goal Your expenses are Rs 40,000/- monthly With such a limited saving, your risk capability is quite low, which means that you cannot afford losses. Risk Tolerance You may have the capability to take risk, but you may not feel comfortable with volatility. You may not For example, you may have a networth of Rs 2 crore but you are not comfortable / feel worried when you see an unrealized loss of Rs 10 in your investment. Risk Tolerance differs from person to person . This will basically help to tell what kind of instruments are you comfortable in putting your money in. For e.g. If you are terrified of the stock market ups and down, EQUITY is not for you, despite knowing the fact that you may withdraw that amount after 20 years.\nIf your risk tolerance is high, it is possible that you may achieve your target earlier, but also higher the risk, higher the gain and vice-versa.\nFor each goal, there would be a risk required that one needs to take to achieve the goal\n2. Risk Questionnaire\r#\rTo understand your risk tolerance, there is a Risk Questionnaire that you need to answer. Risk Questionnaire basically helps one understand attitude towards money. It is best to answer a risk questionnaire as quickly and as truly as possible.\nSome of the questions could be :\nWhat kind of investments have you currently made ? (Tick all the ones that you have made)\nDeposits Mutual Funds Stocks Derivatives Commodity trading If you had two investments to put your money in , which one would you choose ?\n100% chance of getting 6% return 60% chance of getting 11% return How do you feel about a 10% unrealized loss on the investment that you have made ?\nIt is only notional loss, and my goal is still years away I should have never made this risky investment in the first place I will call my financial advisor and check with him Each questionnaire has points and in the end your points are summed up and your profile is determined. This profile is NOT free from bias and therefore will be revised every year based on your behaviour. Based on your behaviour , your risk profile will be tuned and therefore your investments will be tuned accordingly.\nI need help to determine my risk profile ","date":"15 September 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/03-risk-profile/","section":"Posts","summary":"\rFrom childhood, we have been raised in a certain way, which shapes our opinion and attitude towards money. Some are conservative with money , some are willing to take risks . It is important to know where you stand and therefore invest your money in instruments which reflect your risk profile.\n","title":"Goal Planning - Risk Profile - Part 2","type":"posts"},{"content":"\rGoal setting, some of you are already familiar with this term, is an important exercise during the beginning of the appraisal year.\nGoal planning , from a financial planning perspective, is as important. Unlike your appraisal this spans across multiple years .\nSuccessful athletes, businessmen and achievers - all of them set goals in life. This gives life a purpose, a meaning. It provides you long term vision. You now know where your efforts need to be focussed. Your time is put to best use.\nIn this article, we are talking about financial goals .\nWhat is a financial goal ? If you have a goal set in life and if it requires money, we would term this as financial goal. In such a goal, you would save money\rin the beginning , so that you are able to spend that money to achieve your goal.\rFor example , you have a goal to retire by 50. You are currently 35. You have 15 years to accumulate your savings , direct them to an appropriate savings instrument which will provide a return appropriate to the goal that you had in mind. When you are 50, you can spend this money for the rest of your life without worrying about money.\nLet us assume you have a goal to reduce weight by 10kgs in 2 months. You plan to do this by exercising 1 hour every day in the nearby park and reduce your calorie intake by 50. In such a goal, as there is no cost involved, we would NOT term this as financial goal. However, if the same goal would be achieved by going to gym, where you would be paying a recurring fee , it could become a financial goal. Your financial goal would then be to finance your health goal.\nWhat are the typical financial goals in life ? If you are around 30, the following goals typically come up in life :\nBuying a house Child/ren education Child/ren graduation / post-graduation Child/ren marriage Retirement You need to ensure that all of these goals, that span a life time, are SMART goals.\nWhat are SMART goals ?\r#\rSpecific Measurable Achievable Relevant Timebound SMART goals are :\nSpecific Goals which are well-defined, absolutely clear without any ambiguity. What do I want to accomplish ? When do I want to achieve this goal ? Why do I want to achieve this goal ? Measurable You should be able to track the progress of your goals. You can break your goals into multiple tasks / activities What is my progress indicator ? How do I know if I reached my goal ? Achievable Your goal should be challenging but NOT impossible Do I have the capability to achieve this goal ? Has this been done before ? Relevant Is this goal relevant to the current context of things ? Is this goal reachable within the time and resources available ? Is this the right time to do this ? Timebound It provides you a deadline to focus on By when do I plan to achieve this goal ? A possible example of smart goal could be as follows :\nI would like to buy a 2BHK in Whitefield, Bangalore (specific) by April 2025 (timebound) where I have an overall budget including interiors / registration for 75 lakhs (measurable / achievable / relevant).\rI need some help in setting my financial goals ! ","date":"11 September 2020","externalUrl":null,"permalink":"/posts/financial-planning/goal-planning/02-overview/","section":"Posts","summary":"\rGoal setting, some of you are already familiar with this term, is an important exercise during the beginning of the appraisal year.\n","title":"Goal Planning - Overview - Part 1","type":"posts"},{"content":"\rThere are two important factors in determining corpus for any goal. These are time horizon of investment and asset allocation .\nTime Horizon\r#\rTime Horizon is the amount of time from today to your goal start date. Greater the time, lesser would be the investment required, all other things remaining constant. Therefore it is always recommended to start early for your goals when time is by your side.\nAsset Allocation\r#\rBased on your risk profile and the time horizon, your asset allocation is determined. For e.g. if you plan for your retirement at 30, equity is a great way to achieve your goal. In the long run, equity provides more than 10% return. Asset allocation is basically determining the type of asset for you to invest your amount. Should you put more amount in savings, fixed deposit, corporate bonds, debt mutual funds, equity mutual funds, stocks, real estate ?\nIn case you get these factors wrong, you may underachieve which could be detrimental in achieving your goal.\nJust to illustrate this example, look at Table 1: Effects of time horizon shows what happens when you start 10 years late. In this case, as Shyam has started late by 10 years , he loses 21.44 lakhs and therefore would have to invest more just to achieve that amount.\nRam Shyam Age 30 30 Plan to retire at 60 60 Started investing 30 40 Rate of return 10% 10% No. of years 30 20 Amount invested ₹1,00,000 ₹ 1,00,000 Annual investment ₹ 10,000 ₹ 10,000 Value @ retirement ₹33,89,880 ₹ 12,45,500 Table 1 : Effects of time horizon Is my asset allocation correct? ","date":"1 September 2020","externalUrl":null,"permalink":"/posts/financial-planning/asset-allocation/","section":"Posts","summary":"\rThere are two important factors in determining corpus for any goal. These are time horizon of investment and asset allocation .\n","title":"Asset Allocation","type":"posts"},{"content":"","date":"30 August 2020","externalUrl":null,"permalink":"/tags/parag-parikh/","section":"Tags","summary":"","title":"Parag Parikh","type":"tags"},{"content":"Parag Parikh Long Term Equity Fund is unique in many ways and is quite interesting as well. PPFAS was established in 2012. PPFAS has only three funds , unlike , many AMC\u0026rsquo;s. Shri Parag Parikh who pioneered Value Investing is the founder of PPFAS. There are multiple reasons why I find PPFAS quite intriguing and you get a feeling of comfort when investing in their funds.\nLet us start with the concepts:\nValue Investing Value investing is a strategy which involves picking stocks lesser than the intrinsic value\nHammurabi code I am quite enthused about Hammurabi code which basically says they have their own skin in the game .\nIntroduction\r#\rType of Fund\rEquity Multicap Benchmark\rNifty 500 Expense Ratio\r2.01% Riskometer\rModerately High Parag Parikh Long Term Equity Fund is a very interesting mutualfund. It tracks the Nifty 500 ( Equity Multicap fund ) and also has exposure to international funds .\nIt has about 8% exposure to Amazon and given the recent run of Amazon giving more than 50% in the last 6 months has really boosted this mutual fund return as well.\nExpense ratio is on the higher side but given the returns this fund has been giving, I wouldn\u0026rsquo;t worry too much about it.\nIndicators\r#\rAUM\rJul 2020 - 4014.26cr Jan 2020 - 2783.54cr Entry Load\rNA Exit Load\r2% \u0026lt; 365 days 1% \u0026lt; 730 days Portfolio Turnover\r4.17% Many investors are seeing quite positive intent with this mutual fund. Let us go through some of the indicators which will help you decide with this fund\nAssets Under Management (AUM) of this mutual fund has increased by 44% in 6 months . Scheme makes it very clear that invest this in fund if you would like to stay invested for 5 years or more It has invested in quality stocks which are yielding positive performance and giving a very good return for e.g. Amazon - (~9% - AUM) - 74% rise in 6 months Alphabet - (7% - AUM) - 18% rise in 6 months Persistent - (6% - AUM) - 46% rise in 6 months Performance\r#\rFrom 01-Jan-2020 to now , PPLTE fund has given a return of 18.30% From 01-Apr-2020 to now , PPLTE fund has given a return of 50.46% Since inception , PPLTE fund has given a return of 17.06% Conclusion\r#\rIt is quite clear that this fund is a must have for your long term financial goals . The fund manager has been doing exceptionally well and selecting the right stocks and ensuring value for its investors.\nShould I add this to my portfolio ? ","date":"30 August 2020","externalUrl":null,"permalink":"/posts/spotlight/parag-parikh-long-term-equity-fund/","section":"Posts","summary":"Parag Parikh Long Term Equity Fund is unique in many ways and is quite interesting as well. PPFAS was established in 2012. PPFAS has only three funds , unlike , many AMC’s. Shri Parag Parikh who pioneered Value Investing is the founder of PPFAS. There are multiple reasons why I find PPFAS quite intriguing and you get a feeling of comfort when investing in their funds.\n","title":"Parag Parikh Long Term Equity Fund","type":"posts"},{"content":"\rTaxation of mutual funds is important for filing of income taxes . There are few things one needs to understand before filing taxes for mutual funds:\nIdentify type of mutual fund How long have you been holding the mutual fund ? What is the prevailing tax structure for the given mutual fund ? 1. Identify type of mutual fund\r#\rFirst step is to identify whether the mutual fund is equity oriented. This can be found out from the Key Information Memorandum (KIM) from the Asset Managing Company (AMC) website or through various websites including valueresearchonline.com and sundry.\n2. Holding Period\r#\rHolding period is determined by calculating the difference between the date of purchase and the date of selling the unit. If the holding period is 12 months or more , it is called as long term holding period. Otherwise, it is termed as Short-Term holding period.\n2.1 Short Term Capital Gains Tax\r#\rIn case your mutual fund comes under Short Term Holding period, short term capital gain tax is applicable to you and currently gain is taxed at 15% .\nExample : If you have bought a Mirae Asset Large Cap - Equity Fund on 01-Oct-2019 and you have sold it on 01-Jan-2020, you have held the mutual fund for only 3 months.\nHolding period is 3 months and therefore on the capital gain, you will be taxed 15% .\n2.2 Long Term Capital Gains Tax\r#\rIn case your mutual fund comes under Long Term Holding Period, long term capital gain tax is applicable to you. Long term capital gain tax has been introduced in 2018 Budget. Long Term Capital Gains (LTCG) arising on sale of Equity Shares or Units of an Equity Oriented Mutual Fund on which Securities Transaction Tax (STT) is paid. Long term capital gain tax is applicable only if your gains exceed 1 lakh . Currently there is no benefit of indexation.\nExample : If you have bought an equity oriented mutual fund on 01-Jan-2019 and you have sold it on 25-Jan-2020, holding period is for more than 1 year.\nWho should go for such types of funds ?\r#\rIf you are not comfortable with the risk of small cap, mid cap and large cap funds but still need equity exposure so that your returns are higher than debt funds, this is the fund for you.\nWhat is my tax on mutual fund ? References\r#\rTimes of India Valueresearchonline Economic Times ","date":"29 August 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/mutual-fund-taxation/","section":"Posts","summary":"\rTaxation of mutual funds is important for filing of income taxes . There are few things one needs to understand before filing taxes for mutual funds:\n","title":"Mutual Fund - Equity - Taxation","type":"posts"},{"content":"\rMutual Funds began in 1963 in India. Private mutual funds came into being in 1993. AMFI was established in 1995. Since then, there have been so many varieties of mutual funds. Based on your individual goals and risk profile, you would purchase a mutual fund. The question therefore begs to be asked is - is equity savings fund right for you ? What are equity savings fund ?\r#\rMutual funds are defined by their structure and tax applicable on them. For an equity investment, a fund must invest at least 65% of their investment in equity . The purpose of equity savings fund is to give investors a flavor of balanced equity fund . In other words, lesser risk. The returns on equity savings fund hovers around 6 to 10% . As it takes contra positions , technically return will not be so high, but some funds have been able to give return of 12% . How does the fund manager achieve this ?\r#\rThere are gaps between stock price and future price. This is identified by the fund manager. He takes opposite positions in equity and derivative market and hedges his risks. So ideally fund manager can invest 33% in equity and 33% in arbitrage and still be over 65% which is required to designate as equity fund. As it is determined as equity fund, you have all the benefits of equity funds as in :\nCapital Gain over 1 lakh is taxable Holding Period is 1 year for Long Term Capital Gain What funds are available in this category ?\r#\rSome of the funds available in Valueresearchonline are shown below :\nWho should go for such types of funds ?\r#\rIf you are not comfortable with the risk of small cap, mid cap and large cap funds but still need equity exposure so that your returns are higher than debt funds, this is the fund for you.\nShould I include this in my portfolio ? References\r#\rTimes of India Valueresearchonline Economic Times ","date":"28 August 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/equity-savings/","section":"Posts","summary":"\rMutual Funds began in 1963 in India. Private mutual funds came into being in 1993. AMFI was established in 1995. Since then, there have been so many varieties of mutual funds. Based on your individual goals and risk profile, you would purchase a mutual fund. The question therefore begs to be asked is - is equity savings fund right for you ? ","title":"Equity Savings","type":"posts"},{"content":"\rI have spent 18 years in IT industry and there have been days where I want to do my own thing. The challenge in an organization is that you feel boxed in so many ways. Many have different reasons. I could list a few below :\nI am not sure about the stability of my current job I want to do something on my own I want to pursue my dream My health (both physical and mental ) are worsening by the day I need to travel What should I do to retire early ?\r#\rTo enjoy early retirement, you may have to do the following things :\nSave from the first day that you receive your salary / income. Time Value of Money. Live frugally and as your income increases, do not expand your lifestyle Invest in yourself and your career (this gives the maximum return) Invest your money in such a way that you beat inflation Goal Planning\r#\rPlan your goals in life - 4 goals that generally come for any individual\nYour retirement goal Your child / children - school / graduation goal Your child / children - marriage Your house Go to a trusted financial planner to help you achieve your goals\nMitigate risks by transferring them - there are two risks - Life \u0026amp; Health - don\u0026rsquo;t underestimate them - buy insurance\nI would like to know more ! ","date":"25 May 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/retirement/","section":"Posts","summary":"\rI have spent 18 years in IT industry and there have been days where I want to do my own thing. The challenge in an organization is that you feel boxed in so many ways. Many have different reasons. I could list a few below :\n","title":"Early Retirement","type":"posts"},{"content":"\rInflation is a measure of rise in the general price level of all goods and services in the country. Inflation is often viewed as the reduction in purchasing power of money.\nIf you could buy a cup of coffee for Rs 10/- today and after 1 year, you are able to buy a cup of coffee for Rs 12/-, you have experienced inflation. In this case, inflation is 20%.\nConsumer Price Index\r#\rWhen the government talks about inflation, they take a basket of goods and services. For example, Consumer Price Index (CPI) consists of Food and Beverages, PAN - Tobacco - Intoxicants, Clothing and Footwear, Housing etc\u0026hellip; There are various types of Consumer Price Index(CPI) namely\nCPI Rural CPI Urban CPI Combined CPI is released by Ministry of Statistics and Programme Implementation(MOSPI) on a monthly basis. Each of these basket of goods have a weightage which change over a period of time.\nWhy should I know about inflation ?\r#\rI presume every year you draw a budget and estimate your expenses based on the categories. These categories are your basket of goods and services. As the prices for goods and services you avail increases, you would have to spend more money to maintain your lifestyle. For e.g. - if you spend Rs 3000 for groceries per month and food inflation has gone up by 10%, you would spend Rs 3300/- per month for the same amount of groceries.\nInflation mainly erodes wealth and hence it is important that we make more money than inflation.\nAs an example, let us assume your budget for groceries is Rs 40,000/- per year and you have assumed that inflation would be 5% y-o-y. So next year you would require Rs 42,000/- per year for the same groceries. You invested that Rs 40,000/- yielding an interest of 4% p.a. and therefore you received Rs 41,600/- at the end of the year. Therefore despite earning interest, your amount is insufficient to cater to inflation and this is what we mean by erosion of wealth.\nI would like to know more ! ","date":"25 May 2020","externalUrl":null,"permalink":"/posts/knowledge-articles/inflation/","section":"Posts","summary":"Inflation is a measure of rise in the general price level of all goods and services in the country. Inflation is often viewed as the reduction in purchasing power of money. How does it affect you ?","title":"Inflation","type":"posts"},{"content":"","externalUrl":null,"permalink":"/authors/","section":"Authors","summary":"","title":"Authors","type":"authors"},{"content":"Use these calculators to plan your finances better.\n👉 Education Loan Calculator 👉 Home Loan Calculator ","externalUrl":null,"permalink":"/tools/","section":"Tools","summary":"Use these calculators to plan your finances better.\n👉 Education Loan Calculator 👉 Home Loan Calculator ","title":"Tools","type":"tools"}]